HomeMy WebLinkAboutMUNICIPAL RESOURCE CONSULTANTSt� cf,;, -_. )11 r
AGREEMENT TO PROVIDE
REVENUE ENHANCEMENT &
INFORMATION SERVICES
TO
THE CITY OF SANTA ANA
by
MUNICIPAL RESOURCE CONSULTANTS
November 16, 1992
TABLE OF CONTENTS
TRANSMITTAL LETTER
CONSULTANT SERVICES AGREEMENT
EXHIBIT A - CONSULTANT SERVICES
1.0 REVENUE ENHANCEMENT AUDITS................................................................. 4
1.1 Background.......................................................................................................
4
1.2 Objective............................................................................................................
4
1.3 Scope..................................................................................................................
4
1.4 Procedures.........................................................................................................
5
1.5 Quarterly Progress Reports.............................................................................
6
2.0 GRIP SERVICE..........................................................................................................
7
2.1 Terminology......................................................................................................
7
2.2 Physical Presence, Fiscal Impact & Revenue Productivity ...........................
8
2.3 Objectives........................................................................................................10
2.4 Scope................................................................................................................11
2.5 Procedures.......................................................................................................13
2.6 City Support....................................................................................................16
2.7 Timing, Deliverables & Meetings.................................................................17
2.71 Strategies Worksessions & Other Meetings..............................................17
2.72 GRIP Report.................................................................................................18
2.73 GRIP Query System.....................................................................................19
3.0 SALES TAX INFORMATION & CONSULTING .................................................
20
3.1 Sales Tax Inquiry System...............................................................................
20
3.2 STARS (Sales Tax Analysis & Reporting System) Reports .........................
20
3.3 Support Services.............................................................................................
20
3.4 Timing.............................................................................................................
21
4.0 QUALIFICATIONS & STAFFING.........................................................................
22
4.1 MRC Qualifications........................................................................................
22
4.2 Project Team....................................................................................................
23
5.0 COMPENSATION..................................................................................................
29
5.1 Revenue Enhancement Audit Service..........................................................
29
5.11 Sales/Use Tax..............................................................................................
29
5.12 Other Revenue Sources...............................................................................
29
5.30 GRIP Service.................................................................................................
30
5.31 Composition.................................................................................................30
5.33 Additional Services and Charges...............................................................
32
6.0 CERTIFICATION OF CONFIDENTIALITY.........................................................
33
CONSULTANT SERVICES AGREEMENT
THIS AGREEMENT is made at Santa Ana California, as of 199,
by and between the City of Santa Ana, a municipal corporation (hereafter referred to as
"City"), and Municipal Resource Consultants (hereafter referred to as "Consultant" or
"MRO), who agree as follows:
1. Services. Subject to the terms and conditions set forth in this Agreement,
Consultant shall provide to City the services described in Exhibit "A". Consultant shall
provide said services at the time, place, and in the manner specified in Exhibit "A".
Consultant shall not be compensated for services outside the scope of Exhibit "A".
2. Payment. City shall pay Consultant for services rendered pursuant to this
Agreement at the times and in the manner set forth in Exhibit "A". The payments
specified in Exhibit "A" shall be the only payments to be made to Consultant for
services rendered pursuant to this Agreement, unless the City approves additional
compensation for additional service. Consultant shall submit all billings for services
rendered pursuant to this Agreement to City in the manner specified in Exhibit "A".
3. Facilities and Equipment. Consultant shall, at its sole cost and expense,
furnish all facilities and equipment which may be required for furnishing services
pursuant to this Agreement.
4. General Provisions. The general provisions set forth in Exhibit "B" are part of
this Agreement. In the event of any inconsistency between said general provisions and
any other terms or conditions of this Agreement, the other term or condition shall
control insofar as it is inconsistent with the general provisions.
5. Exhibits. All Exhibits referred to herein are attached hereto and are by this
reference incorporated herein.
EXECUTED as of the day and year first above stated.
A M i al Corporation
By:
Title: Daniel 1-1. _Xaunc�,�Ia o
Date:
MUNICIPAL RESOURCE CONSULTANTS
PARTNVER:\IOHN T. AUSTIN, IN
a
John T. Austin
November 16,1992
ATTEST:
A,nprovl'Al a
CITYCLERK'
ATTEST TO FORM:
CITY ATTORNEY
EXHIBIT A
CONSULTANT SERVICES
Municipal Resource Consultants (MRC) shall provide revenue enhancement and
information services to the City of Santa Ana (City). The objectives, scope,
procedures, deliverables, timing, compensation and staffing are set forth as
follows:
1.0 REVENUE ENHANCEMENT AUDITS
1.1 BACKGROUND
Many California cities are not realizing all of the revenue to which they are
entitled due to administrative errors and omissions by revenue -generating
businesses and third party intermediaries (such as the State, counties and
utility companies) who are responsible for collecting the tax revenue and
remitting it to the cities.
Because there are time limitations on the City's ability to recover revenue it
has been deprived of, it behooves Santa Ana to have revenue enhancement
audits conducted as thoroughly and rapidly as possible.
1.2 OBJECTIVE
The objective of MRC's revenue enhancement audits is to assist the City in
recovering all of the revenue to which it is entitled from the City's major
sources of general fund revenue (see Scope below).
MRC's revenue enhancement audits result in the detection, documentation
and correction of errors and omissions causing deficiencies and thereby
produce new revenue that would not otherwise have been realized by the
City.
1.3 SCOPE
MRC's revenue enhancement audit service includes the following tax
revenue sources:
N Business License Tax
■ Documentary Transfer Tax
■ Franchise Fees
X Property Tax (including RDA Tax Increment)
■ Sales/Use Tax
0 Transient Occupancy Taxl
■ Utility Users Tax
x MRC will not proceed with the auditing of Transient Occupancy Tax until specifically directed to do so
by the City
4
1.4 PROCEDURES
MRC's revenue enhancement audit procedures are summarized as follows:
■ Meet with City's designated staff to review service objectives and
scope, MRC workplan schedule, public relations and logistical
matters; MRC will also establish an appropriate liaison with the
City's coordinator and define logical checkpoints for reviewing
progress
■ Review applicable provisions of the City's municipal code and
ordinances adopted by the City
■ Physically canvass and evaluate the revenue generating elements of
the City's economic base, such as the land parcels, major buildings,
commercial, industrial, institutional and governmental users
■ Represent the City for the purpose of examining records pertaining
to business license tax, documentary transfer tax, franchise fees,
property tax (to include tax increment for the RDA) sales/use tax,
transient occupancy tax and utility users tax in order to identify and
confirm errors/omissions that are resulting in deficient payment to
the City
■ For each error/omission identified and confirmed, prepare
documentation to substantiate and facilitate recovery of revenue due
from prior periods (plus applicable interest and penalties) and
prevent recurring deficiencies in current and future years
■ Prepare and forward to the appropriate parties "date of knowledge"
requests for corrective action and revenue recovery
■ Meet with designated City official(s) as necessary to review and
discuss our findings and recommendations
■ Provide additional assistance as necessary to support the City in
recovering and preventing tax deficiencies
5
1.5 QUARTERLY PROGRESS REPORTS
On a quarterly basis, MRC shall provide the City with audit progress
reports to include, but not be limited to, the following:
■ Status of audit work in progress, including copies of reports
provided to taxpayers/intermediaries addressing each reporting
error/omission individually, including where applicable the
business name, address, telephone number, account identification
number, individuals contacted, date(s) of contact, nature of business,
reason for error,/omission and recommended corrective procedure
■ Actual revenue produced for the City by MRC's audit service on a
quarterly and cumulative basis
■ Projected revenue forthcoming to the City as a result of MRC's audit
service, delineated according to source, timing and one-time versus
ongoing
■ Alphabetical listing of all errors/omissions detected for the City by
MRC including, for each, the account number, correction status,
payment amount received by the City, period to which payment is
related and payment type (e.g., reallocation, deficiency assessment,
etc.)
6
2.0 GRIP SERVICE
2.1 TERMINOLOGY
GRIP is a leading edge analytical and management tool. Accordingly, MRC
defines and uses concepts and terminology that may be unfamiliar or used
somewhat unconventionally. A partial glossary is provided below.
■ CORE REVENUE GENERATORS
City's most significant entities in terms of actual or potential revenue
generation
■ DISCRETIONARY TAX REVENUE SOURCES
Revenue sources which the City has the discretionary authority to
directly control (such as business license tax, transient occupancy tax
and utility users tax)
■ ECONOMIC BASE
Land, buildings and users thereof located in the City
■ FISCALLY SELF-RELIANT CITY
City which relies on the revenue generated from its own economic
base to fund the municipal services it provides
■ GRIP
Acronym for MRC's Geobased Revenue Information Program
■ NON-RESIDENTIAL REVENUE GENERATOR
Revenue Generators other than single family residential (such as
condominiums and homes); includes all commercial, industrial,
institutional, and governmental entities
■ REVENUE GENERATOR
Any entity that has a physical presence within the City; a single
Revenue Generator may do business under several different legal
names and/or addresses
■ SWOTs
Acronym for Strengths, Weaknesses, Opportunities and Threats, in
terms of revenue generation
o TAX STRUCTURE
City's discretionary and non -discretionary tax revenue sources
7
2.2 PHYSICAL PRESENCE, FISCAL IMPACT & REVENUE PRODUCTIVITY
The typical business community expects the city in which it is located to
provide public safety, infrastructure and other vital services to support and
protect their business operations, customers, suppliers and employees. In
return, the city can expect its business community to fund the services
provided.
When a business* located in a self-reliant city generates insufficient revenue to fund
its relative share of these services - due to non-compliance, an inequitable ordinance,
State preemption, or some other reason - either the city's residents or other
businesses must fund the difference.
Inequitable and unfair sharing of the local tax burden becomes less
tolerable and more apparent as each city becomes increasingly dependent
on its own economic base to meet its service funding needs.
In pursuing fiscal self-reliance strategies that provide for fairness and
equity, it is important to ascertain "Who benefits from the City's services?",
"Who generates revenue to the City?" and "How much?"
To determine for each business in a city whether the revenue it generates is
sufficient to cover its proportionate share of municipal services, an ideal
fiscal impact analysis would:
■ Include all factors that have significant cost or revenue consequences
for the city
IN Be more comprehensive than the projected infrastructure or capital
improvement costs precipitated by a development to finance or
recover those costs by charging development impact fees
■ Be more comprehensive than a user service analysis that seeks to
recover the allocated costs for city services from the actual users of
those services
■ Encompass social, legal, environmental, ecological, opportunity, and
other costs as well as the above -mentioned capital improvement and
service costs
■ Be comparable for different types and sizes of land uses,
developments and defined geographic areas
■ Be reliably measurable
* Commercial, industrial, residential, institutional, governmental
3
Any analysis that attempts to directly measure social, legal environmental,
ecological, opportunity and other costs would be highly subjective instead
of reliably measurable. It would not be capable of being used to make
meaningful comparisons or to being applied in an equitable manner. What
is needed is a meaningful fiscal impact analysis tool that is measurable.
MRC defines "fiscal impact' as the financial and/or economic
consequences to the city that result from an entity's physical presence
within the city. Physical presence may take the form of a land use,
development, or user (commercial, industrial, residential, institutional,
governmental). MRC's definition is based on the premise that there is a
strong correlation between physical presence and fiscal impact. If there is
no physical presence, there is no fiscal impact.
A meaningful measure of fiscal impact is one that relates physical presence
to revenue generation. It is obtained by dividing an entity's total revenue
contribution to the city by the same entity's measurable manifestations of
physical presence within the city. This provides a valid, size -adjusted
equivalent unit of measurement for analyzing relative fiscal impact and
revenue productivity based on physical presence.
In other words, the cost of police, fire and other city services - plus the
social, legal, environmental, ecological opportunity, and other costs
imposed upon a community by a commercial, industrial, institutional or
government entity - are directly related to the physical presence that can be
measured in terms of land area/building space occupied, number of
employees, etc. or a composite factor.
To evaluate a city's tax structure and economic base - in terms of fairness,
equity and fiscal self-reliance - it is necessary to make comparisons without
distortions caused by the different sizes of different entities.
Also, different business classifications attract different numbers of
customers and suppliers per square foot of space occupied and persons
employed. The City's cost of providing public safety and infrastructure
therefore differs by the type of business.
By capturing and relating elements of physical presence to revenue contribution, in
size -adjusted equivalent units of measurement, GRIP enables MRC to analyze a
city's tax structure and economic base in terms of relative fiscal impact and revenue
productivity. Tice need for this information becomes increasingly critical as each
city moves towards fiscal self-reliance and dependence on its own tax structure and
economic base to fund the city's service costs.
9
2.3 OBJECTIVES
MRC's GRIP service will enable the City to actively improve fairness, equity
and fiscal self-reliance by developing and implementing revenue
enhancement strategies that capitalize on strengths and opportunities and
minimize or eliminate weaknesses and threats through applications such as:
■ Economic Development
o Business Retention
o Business Expansion
o Business Cooperation
o Business Attraction
■ Land Use Planning
■ Tax Structuring
By relating Santa Ana's economic base to its tax sources, in terms of revenue
generation, GRIP provides the City with an informed basis for strategic
decision -making based on:
■ Economic Base Analysis
■ Fiscal Impact Analysis
■ SWOT* Analysis
■ Tax Code Effectiveness Analysis
Through Revenue Strategies Worksessions, MRC's GRIP service facilitates:
■ City Goal Setting
■ Understanding Interrelatedness of Taxes & Economic Base
■ Identification & Analyses of City's SWOTs*
■ Exploration, Development and Prioritization of Strategies
■ Consensus Building
■ Action Plan Implementation
Consistent with the objectives listed above, MRC's GRIP service will be
particularly valuable in assisting the City with its planned bond issuance
and development/implementation of a strategic plan for economic
development.
* Strengths, Weaknesses, Opportunities, Threats
10
2.4 SCOPE
The GRIP database shall encompass:
r The land parcels, major buildings, and users (commercial, industrial,
institutional, governmental, residential) located within City of Santa
Ana's borders; and.
■ The City's major sources of general fund revenue including, but not
limited to, the following:
Business License Tax
- Franchise Fees
- Property Tax (to include secured real and personal property
plus unsecured personal property)
- Sales/Use Tax
- Transient Occupancy Tax
- Utility Users Tax
The GRIP database has at least one record for each actual/potential revenue
generator. MRC defines a revenue generator as any entity that has a
physical presence within the City. Such an entity may either partially or
completely occupy or own a parcel within the City, or be conducting some
business that generates revenue to the City.
On average, California cities experience changes in their business mix at the
rate of 20% per year due to business openings, closings, expansions,
consolidations, relocations, mergers, acquisitions, and other events. For this
reason, MRCS analysis includes a current, comprehensive, and valid
inventory of all the City's businesses, including address, parcel number(s)
and type of business activity. By computerizing this data, MRC creates a
cross-indexed, address -based and parcel -based geographic database for all
the businesses located in the City.
The GRIP database is relational, so it will be able to extract any type of
desired input data by merely structuring queries. Because the GRIP
database is geo-coded, it is possible to extract information by specifying
either address ranges or the map coordinates of any encircling polygon as
defined by the City's GIS (Geographic Information System). MRC can link
to the City's GIS system through parcel numbers. If this is not possible,
MRC can digitize the City's parcels and include the geo-data in our
proposed GRIP database for an additional fee.
Table 2-1 below shows the data elements to be collected and accessible to those
personnel authorized by the City
TABLE 2-1
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Database Elements
pq
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Owner Name & Address
X
X
Business Name and Address
X
Revenue Conh tctions by Source
Business License Tax
X
X
Franchise Fees
X
Property Taxes (Secured, Unsecured, & Personal)
X
X
X
Sales/Use Tax
X
Transient Occupancy Tax
X
Utility Users' Tax
X
X
X
State Subventions
X
X
Other Individually -Assignable Taxes Paid
X
X
X
Manifestations of PhyskW Presence (For Core Revenue Generators)
Number of Employees ( Full & Part Time)
X
X
Square Feet of Building Occupied
X
X
X
Acres of Land Owned & Used, if any
X
X
X
Number of Rental Units
X
X
Business Activity Data (For Core Revenue Generators)
Gross Revenues (if available)
X
X
SIC Code (Standard Industrial Classification)
X
X
Yellow Pages Listing Group
X
X
Tax Rate Area Location & Rates
X
X
X
i t invited Expense Allocation Fields
X
X
X
12
2.5 PROCEDURES
MRC's GRIP service process is illustrated below in Figure 2-2. The
procedures are summarized as follows:
■ Meet with City's designated staff to review service objectives and
scope, MRC workplan schedule, public relations and logistical
matters; MRC will also establish an appropriate liaison with the
City's coordinator and define logical checkpoints for reviewing
progress
■ Study City -provided data such as current year's budget, financial
statements, general plan, maps, special reports and studies
(economic, market, feasibility, etc.) that provide relevant background
or insight
■ Evaluate regulatory provisions for each of the City's discretionary
tax revenue sources based on criteria and considerations such as
enforceability, coverage, fairness, equity, competitiveness and
motivation
■ Develop an inventory of the land parcels, major buildings,
commercial, industrial, institutional, governmental and residential
(other than single family) revenue generators located within the
City's borders
■ Aggregate and snatch revenue payments from each of the City's Core
Revenue Generators to determine the total contribution from each
■ Capture available. elements of physical presence for each of the City's
Core Revenue Generators (e.g. land, buildings, employees)
■ Convert all data into a common electronic medium
■ For each Non -Residential Core Revenue Generator, ascertain name,
address, primary activity, assessor parcel number, parcel size, land
use (building space occupied and number of employees to be
included where available), revenue source and City's portion of
revenue generated
13
■ Determine and compare the size -adjusted contribution of revenue
from each Core Revenue Generator on both an individual and
aggregate basis according to revenue source and primary activity
■ Analyze the City's SWOTS` in terms of revenue generation
■ Prepare GRIP management report, comprehensive data listing, and
declassified summary
■ Prepare and install GRIP Query System for on -site access by City
■ Meet with designated City official(s) to present and discuss report
findings, principally focusing on the SWOT analysis
■ Participate in revenue strategies worksessions to facilitate:
o City goal setting
o Understanding interrelatedness of taxes & economic base
o Identification & analysis of City's SWOTS*
o Exploration, development & prioritization of strategies
o Consensus building
o Action plan implementation
* Strengths, Weaknesses, Opportunities, Threats
14
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2.6 CITY SUPPORT
The City agrees to support MRC by providing the following:
■ Letters of Introduction (as required)
■ Codes/ordinances covering each tax imposed by City
■ Engineering and zoning maps of City (100' or 200' per inch scale)
■ Current year's budget and revenue history since 1978-79, preferably
in current year's budget format
■ Special reports and studies such as general plan (and proposed
amendments), economic, market, feasibility, etc. that would provide
additional background or insight
■ List of agencies - including address, telephone and contact name -
with actual/potential impact on City (Caltrans, Transit District,
AQMD, LAFCO, etc.)
■ Background on relevant factors the City is aware of that should be
addressed in the study
■ Cooperation in MRC's verification/collection of physical presence
data by mailing applicable forms on City Lettterhead (at the City's
request, MRC will assume responsibility for such mailings and only
charge for actual out-of-pocket reimbursement)
■ Staff reports and submittal documentation for significant
developments that have been proposed, approved, under
construction or completed within the last two years
16
2.7 TIMING, DELIVERABLES & MEETINGS
MRC is prepared to commence the GRIP service within 10 days following
authorization with the objective of completing it within 180 working days
thereafter. The preliminary workplan schedule at the back of this Section
presents MRC's time frames for accomplishment of the prescribed tasks.
Meetings and deliverables are further described as follows:
2.71 STRATEGIES WORKSESSIONS & OTHER MEETINGS
Upon commencement of the service, MRC shall facilitate a city goal -setting
worksession to review and discuss the revenue enhancement audit and
GRIP service objectives, scope, procedures and delivery schedule.
Within 60 working days following the city goal -setting worksession, MRC
will facilitate the first of five planned monthly revenue strategies
worksessions custom-tailored to address Santa Ana's unique circumstances,
needs and requirements. In addition to presenting and discussing interim
GRIP report findings, the revenue strategies worksessions are designed to
facilitate:
■ Exploration, development, and prioritization of strategies that
capitalize on strengths and opportunities and minimize or eliminate
weaknesses and threats (in terms of revenue generation)
■ Consensus building for a strategic action plan
■ Implementation of adopted strategies to proactively enhance,
maintain and manage the City's revenues
Two or more MRC consultants participate in each worksession. Additional
revenue strategies worksession will be provided should the City so desire.
In addition to facilitating revenue strategy worksessions, MRC is available
to assist the City on an as -needed basis to participate in presentations,
public hearings or other types of meetings with members of City staff or
Council, the Chamber of Commerce, media, citizen advisory groups,
committees, etc.
17
2.72 GRIP REPORT
Within 150 to 180 working days following authorization, MRC shall
provide the City with three complete copies of the initial GRIP Report, to
include:
■ Management Report
o Assessment of City's revenue picture (past, present, future)
o Identification of City's fiscal objectives
o Description of service scope and procedures employed in
preparing the GRIP Report
o Nature and profile of City in general terms of land use and
economic base
o Evaluation of City's tax structure and economic base
o Assessment of City's SWOTS, in terms of revenue generation
■ Comprehensive Data Listing
Comprehensive listings and presentation (in graphs, charts and
tables) of data that capture and relate available elements of physical
presence to revenue contributions for the Core Revenue Generators;
Core Revenue Generators ranked according to aggregate and size -
adjusted revenue contributions.
■ Declassified Summary
A summary of report's key findings, excluding confidential
information
■ Interim Reports
Development of the GRIP Report is accomplished through an
iterative process of data collection, analysis, presentation and
discussion. At each of the Revenue Strategies Worksessions, the City
will receive an interim report that presents the most recent
information, its meaning, implications and significance to the City.
The fifth works ession will include a review of all previous
worksessions as well as the presentation and discussion of the GRIP
Report.
18
2.73 GRIP QUERY SYSTEM
The GRIP database will be installed at the City on an MRC-provided
workstation to allow on -site, password -protected access by designated City
staff.
The GRIP Query System includes data for each of the City's major sources
of general fund revenue. All revenue information is integrated according
to revenue generator name and geographic location. Revenue contributions
for individual and aggregate sources of revenue are displayed for each
revenue generator. The system also presents combined revenue
information for multiple revenue generators in a user -defined geographic
area.
Depending on availability of existing records, relevant data elements for
the Core Revenue Generators include land and building square footage,
number of employees, business classifications, owner names, start dates,
close dates, occupancy factors, business activity, etc.
The information on locations and specific occupants of those locations can
also be further aggregated into other geo-areas such as redevelopment
project areas, downtown, business districts, etc.
19
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3.0 SALES TAX INFORMATION & CONSULTING
MRC shall continue providing to the City a Sales Tax Inquiry System,
STARS reports and support services, further described as follows:
3.1 SALES TAX INQUIRY SYSTEM
MRC shall continue to install and update quarterly the City's sales tax
registration and allocation data and train as necessary authorized City staff
in the use of the Inquiry System and an easy -to -follow user manual, also
furnished by MRC. Because the Sales Tax Inquiry System contains
confidential information, access is limited to authorized personnel by
making the System password - protected.
3.2 STARS (SALES TAX ANALYSIS & REPORTING SYSTEM) REPORTS
MRC shall continue providing the City with a quarterly updated set of
bound STARS reports.
3.3 SUPPORT SERVICES
In conjunction with the Sales Tax Inquiry System and STARS reports
described above, MRC shall provide support services to include:
■ Providing City staff with sales tax orientation:
o Conducting technical seminar on California's local sales tax
distribution process; and
o Training staff in the fundamentals of sales/use tax allocation
auditing should the City desire to assume responsibility for
future maintenance of retail accounts internally.
■ Preparing and analyzing a list of the City's major sales/use tax
generators to assist the City in developing a public relations program
to prevent the loss of these important businesses.
■ Profiling for Economic Development/Community Redevelopment
personnel the most economically desirable/undesirable types of
developments/business uses and the reasons why.
■ Assisting in defining specific geographic areas for which the City
would have an interest in knowing the sales/use tax produced (e.g.,
within Redevelopment Agency project areas).
20
■ Serving as a resource to assist the City on an "as -needed" basis by
providing legal and technical support on sales/use tax issues and
questions regarding proposed legislation, estimated revenue on
proposed projects, revenue -sharing negotiations, retail sales leakage,
budget projections, etc.
3.4 TIMING
MRC shall continue delivering the quarterly updated Sales Tax Inquiry
System and STARS reports to the City within 30 working days following
receipt of the Quarterly Distribution Reports from the SBE. MRC shall
continue providing support services to the City on an as -needed basis at
times to be mutually agreed upon between City and MRC.
21
4.0 QUALIFICATIONS & STAFFING
4.1 MRC QUALIFICATIONS
Based on a unique blend of multi -discipline expertise from the fields of
State & Local Tax, Geographic Information Systems and Economic Development,
Municipal Resource Consultants (MRC) specializes in providing innovative
revenue enhancement services to California municipalities, principally in
the areas of business license tax, documentary transfer tax, property tax,
sales tax, use tax, transient occupancy tax, utility users tax and franchise
fees.
MRC's multi -revenue enhancement services are complemented by geobased
management information programs and consulting in areas such as revenue
structuring, strategic planning, economic development and redevelopment.
MRC pioneered the concept of revenue enhancement consulting with sales
tax services for California cities in 1978. Since then, MRC has established a
track record of consistently impressive results by providing ongoing
revenue enhancement, information and consulting services to more than
120 California cities.
MRC has a staff of 55 consultants serving California cities from five in -state
locations. MRC's quarterly -updated database contains geobased revenue
information on more than 65 % of the businesses in California.
On behalf of the cities served, MRC's findings and recommendations have
been validated and accepted by third party intermediaries (including the
State Board. of Equalization, county assessors and major utility companies)
throughout California, in addition to thousands of corporate tax
departments throughout the United States.
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4.2 PROJECT TEAM
MRC's project team for the revenue enhancement audits, GRIP service and
sales tax information services consists of 28 personnel listed in the
organizational chart Figure 4-1 on the following page. Biographical profiles
for the project team leaders are listed below according to their specialized
areas of responsibility.
JOHN AUSTIN & ALLEN CHARKOW - PROJECT CO -DIRECTORS
As project co -directors, John and Allen are responsible for the overall
quality control and timeliness of the project. They are also responsible for
making MRC's resources available to the project and assisting in the
technical direction, management and liaison activities. Both will be
personally involved with the audits and economic development strategy
services.
John is responsible for the overall design and provision of MRC's business
license services, GRIP service, revenue enhancement audits, contract
negotiations and client relations. Allen has overall responsibility for the
development and implementation of MRC's data processing and
geographic information systems for auditing, monitoring and analyzing
tax revenue sources.
DOUG KITCHEN - TECHNICAL COORDINATOR
As technical coordinator, Doug is responsible for the overall technical
direction and coordination of the project, including the methodology and
procedures utilized and development of the logic and rationale to support
MRC's analyses and recommendations. In this capacity, his duties include
coordinating, monitoring and supporting the activities of other project team
members. Doug developed much of the GRIP theory and analytical model
and is actively involved in the design and provision of MRC's revenue
enhancement audits in the areas of business license tax, documentary
transfer tax, transient occupancy tax, utility users tax and franchise fees.
Prior to joining MRC, Doug was Chief Operating Officer and general
contractor with a NYSE listed developer -builder. Doug completed his
undergraduate work at California Luthern University where he majored in
Math and physics.
23
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JOHN O'SULLIVAN - LIAISON & STRATEGIES FACILITATION
As administrative liaison, John has primary responsibility for interfacing
between the City and MRC project team personnel, public relations,
logistical matters, coordinating and participating in meetings, and keeping
the City apprised of MRCs progress through written and oral
communications. He is also responsible for MRC's Strategic Planning
Practice in Southern California. In this capacity, he assists cities restructure
their existing resources and implement change through economic and
organizational development. John has extensive experience and expertise
in facilitating interactive worksessions focused on the development and
implementation of fiscal strategies. He has over 20 years' experience in
California city and county government as a city manager, finance director
and community development manager. John has a BA Degree from
California State University Long Beach and has served on numerous
committees for the League of California Cities and national organizations
for Municipal Finance Officers and the International City Managers
Association.
TED GAEBLER - STRATEGIES FACILITATION
Ted is Managing Director of MRC's Strategic Planning Group which
specializes in assisting state and local government agencies restructure
existing resources and implement change through economic and
organizational development. Ted has extensive experience and expertise in
facilitating worksessions focused on the development of practical strategies
for cities' fiscal needs. He is a nationally recognized authority in the field of
public entrepreneurial management. Ted received a BA Degree in Public
Administration from Miami University and Master of Governmental
Administration from Wharton Graduate School of Business Administration,
University of Pennsylvania. Ted's public service includes 10 years as a City
Manager and 10 years as an Assistant City Manager. He is a member of the
International City Management Association, American Society of Public
Administration and Western Governmental Research Association. Ted is a
co-author of the best selling book Reinventing Government. He is also a
frequent speaker to state and local government groups nationwide.
24
JACK TOMASIK - STRATEGIES FACILITATION
Jack is the founder of Economics Strategies Group (ESG). ESG provides
specialized services to state and local governments in the following six
areas:
■ Economic & Community Development Strategies
■ Economic Development Implementation
■ Growth Management & Financial Strategies
■ Economic & Fiscal Impact Assessment
■ Market Studies, Economic Research & Modeling
■ Public Sector Asset Management
Jack will assist in strategic planning and building consensus through
stakeholder facilitation. Jack is an economist with fifteen years' experience
in state and local government problem -solving. His specialty is
regional/urban economics and strategic planning. An experienced
economic planner, he has developed more than 20 economic development
strategies for areas in the West, including 15 California communities. Jack
has a Master's in City and Regional Planning from Ohio State University
and, since 1979, has been a consulting economist in the West with Mountain
West Research and Coopers & Lybrand.
FERRY SHARP - GRIP SERVICE
Jerry is responsible for creation and implementation of the detailed
workplan for the GRIP service, including the scheduling, coordinating and
monitoring of the other analysts' activities. Prior to joining MRC, he had 10
years' experience with a Fortune 200 company where he was responsible for
the design and integration of multi-user computer systems for GIS
applications. Jerry received his BS Degree from Athens College, Alabama.
25
JOHN TENFELDER - GRIP SERVICE
John is responsible for development of the economic, tax and financial
analyses for MRC's business license and GRIP Services. Prior to joining
MRC, John was a Senior Consultant and Vice President with an
international consulting firm where he specialized in economic, tax and
financial issues in connection with corporate mergers and acquisitions.
John has served as an expert witness in major tax cases, is a registered
professional engineer, and Chartered Financial Analyst. He received two
engineering degrees from the University of Missouri and an MBA from
UCLA.
HUNTER AUSTIN - SALESIUSE TAX
Hunter manages MRC's operations for the ongoing detection,
documentation and correction of sales/use tax misallocations for 120
California cities. Hunter has a working knowledge of sales/use tax law,
State Board of Equalization administrative procedures and taxpreparer
reporting procedures. Prior to joining MRC, Hunter had 13 years'
experience as a commercial -industrial leasing broker and public relations
agent.
GARY JONES - PROPERTY TAX
Gary has overall responsibility for MRC's property tax consulting practice.
Gary has been analyzing property tax assessments and tax allocations for
public agencies throughout California for more than 20 years. Prior to his
association with MRC, he was a Principal with the firm of Katz Hollis, in
charge of fiscal and administrative management consulting services to
redevelopment and other public agencies throughout California and other
western states. Gary received his BA Degree from California State
University Fresno and completed graduate courses at University of
California Los Angeles.
C
PARTHO MANDAL - PROPERTY TAX
Partho is a Senior Consultant in MRC's property tax consulting practice. In
this capacity, Partho analyzed property tax assessments and tax allocations
for public agencies throughout California. Prior to his association with
MRC, Partho was a Senior Analyst and Associate with the firm of Katz
Hollis for four years. Before joining Katz Hollis, Partho was an Associate
with Gunn Russell Copenhaver & Co., where he provided advisory services
to resolve financial requirements of redevelopment agencies. He received
his BA Degree with Honors from the University of Delhi, India where he
majored in Economics. He also earned an MBA in Economics from the
Delhi School of Economics, New Delhi, India and an MBA in Finance from
State University of New York, Albany.
NICK OWARE - BUSINESS LICENSE TAX
Nick has overall responsibility for MRC's business license tax compliance
practice. Prior to joining MRC, Nick had eight years' experience in business
development and public relations with a major financial institution and
four years' experience as a commercial real estate broker. Nick received his
BA Degree from the University of Colorado where he majored in Business
Administration.
JIM THOMPSON - FRANCHISE FEES, UUT & TOT
Jim is responsible for MRC's franchise fees/utility users tax and transient
occupancy tax compliance practices. Since joining MRC, Jim has personally
overseen and participated in compliance auditis of 300+ businesses for
utility users' tax and 160+ hotels for transient occupancy tax. Prior to
joining MRC, Jim had 30 years' experience in the telecommunications
industry, including 10 years as a primary expert witness for GTE in
providing testimony before the California Public Utilities Commission and
the California Legislature that led to his being a guest speaker at many
seminars including the League of Cities annual meetings. He is a graduate
of California State University Northridge.
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DON MAYNOR & JOE VINATIERI - LEGAL ANALYSIS
Don Maynor provides his specialized legal expertise to assist MRC in
evaluating franchise fee agreements and utility users tax ordinances and
gaining access to necessary information (which the utility companies resist
providing) as well as the discovery and recovery of payment deficiencies.
Don is a recognized authority in the franchise fee and utility users tax field,
representing cities in numerous legal areas. He is frequently called upon to
testify as an expert witness before the California Public Utility Commission
regarding utility issues and other related matters. He received a B.A. from
the University of Arizona and a law degree from Case Western Reserve
University School of Law. Don is a member of the California Bar
Association.
Joe Vinatieri is a partner in the Whittier law firm of Bewley, Lassleben &
Miller where he specializes in matters of California state and local taxation.
Joe provides legal counsel to MRC and MRC's clients when questions or
issues arise related to sales/use and property tax law. He is former deputy
to Honorable Ernest J. Dronenburg, Jr., member of the California State
Board of Equalization, where Joe was responsible for preparation of
franchise/income tax, property tax and sales and use tax cases to be heard
by Judge Dronenburg, He was also responsible for legislative,
administrative and political liaisons. Joe received his BA degree, cum
laude, from Westminster College and his JD degree from the University of
San Diego. He is Chairman of the State and Local Subcommittee of the Tax
Section of the Los Angeles County Bar Association and a member of the Tax
Section of the California State Bar. He is also a member of the Institute of
Property Tax for which he has spoken nationally.
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5.0 COMPENSATION
5.1 REVENUE ENHANCEMENT AUDIT SERVICE
5.11 SALES/USE TAX
MRC's compensation for continuing to conduct the sales/use tax
enhancement audits is 20% of the new sales/use tax revenue realized by the
City as a result of MRC detecting, documenting and correcting the related
point -of -sale/ use distribution error. Said 20 % applies to each correction for
fund transfers (i.e., retroactive adjustments for eligible amounts improperly
distributed in prior quarters) and the first four consecutive reporting
quarters following completion of the audit by MRC and confirmation of
corrections by the State Board of Equalization.
Sales/use tax audit invoices are submitted quarterly after the City has
received the revenue from the correction and quarterly distribution report
verifying it. Each invoice is to include the business name, permit number,
local allocation amount received by the City and amount due MRC.
Invoices are due and payable upon receipt.
5.12 OTHER REVENUE SOURCES
MRC's compensation for conducting enhancement audits for revenue
sources other than sales/use tax (business license tax, documentary transfer
tax, franchise fees, property tax - including RDA tax increment - transient
occupancy tax, utility users tax, etc.) shall be entirely predicated and
contingent upon the results achieved.
Under this arrangement, the City/Redevelopment Agency (Agency)
agree(s) to pay MRC an amount equal to 25% of the deficiency recoveries
from eligible prior periods (plus associated charges for penalties and
interest). When MRC's audits result in the detection and correction of
errors/omissions that the City/Agency and MRC mutually agree will
produce ongoing (rather than one-time) benefits to the City/Agency,
MRC's compensation shall be 25% of the incremental revenue realized by
the City/Agency during the first 12 consecutive quarters following
correction.
Under this arrangement, the City/Agency agrees to:
■ Invoice the responsible party for tax deficiencies (plus associated
charges for penalties and interest) identified and confirmed by MRC
within 30 days following receipt of MRC's report; and
■ Notify MRC within 10 days following receipt by the City/Agency of
payments resulting from MRC's audit service. Upon being notified
of receipt of payment(s), MRC will then invoice the City/Agency.
Earned compensation is due and payable upon receipt of invoices.
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5.20 SALES TAX INFORMATION SERVICES
MRC shall continue providing the Sales Tax Inquiry System and STARS
reports for $3,000 per quarter.
5.30 GRIP SERVICE
5.31 COMPOSITION
MRC's compensation for providing the GRIP Service is $240,000, which
includes the following.
GRIP Database Development: Capturing and relating elements
of physical presence to revenue contribution and providing Query
System modules for on -site access by City $130,000
GRIP Report: Preparing management report, including SWOT
analysis, comprehensive data listing, declassified summary and
Interim GRIP reports 301000
Revenue Strategies Worksessions: Two or more MRC
consultants preparing for, participating in, and following up on
meetings with City to facilitate City goal -setting worksession and
five revenue strategies worksessions to:
• Explore, develop, and prioritize strategies that capitalize on
strengths and opportunities and minimize or eliminate
weaknesses and threats
• Build consensus for a strategic action plan
+► Implement adopted strategies to proactively enhance,
maintain and manage the City's revenues 30,000
Expenses: Includes expenses such as computer processing,
clerical, communications (e.g. telephone, mail, express, etc.), _
photocopying, overhead, and out -of -pockets for travel (airfare,
auto, meals, lodging, etc.), data lists, consumable supplies and
research materials such as maps, directories, etc. 50,000
Total:
$ 240,000
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5.32 SELF -FUNDING PROVISIONS
MRC's compensation for providing the GRIP Service is $240,000 payable in
accordance with the schedule presented below only if the City/Agency has
received sufficient funds from the City's/Agency's share of new revenue
produced from MRC's enhancement audits for sales tax and/or other
revenue services. Stated another way, payment is deferred until there is
adequate audit revenue to cover it. Audit revenue to be included in the
self -funding computation must be received by the City/Agency after the
date this expanded service is authorized.
Based on MRC's enhancement of Santa Ana's revenue, as set forth above,
MRC's compensation for providing the GRIP Service is payable as follows:
Five monthly progress payments of 10% ($24,000) each; $24,000
to commence 60 working days after MRC's facilitation X 5
of the initial City goal -setting worksession $120,000
Remaining balance due thirty (30) days after delivery
of complete GRIP Report and GRIP Query System 1201000
Total: 240 000
The following computation illustrates a hypothetical self -funding example:
New revenue produced for City/Agency from
MRC's sales tax enhancement audit service
$400,000
Less MRC compensation for sales tax enhancement
audit service @ 20%
80 000
$320,000
New revenue produced for City/Agency from
MRC's audit service for revenue sources other than
sales/use tax
$300,000
Less MRC compensation for enhancement audit
service for revenue sources other than sales/use tax
@25%
(75,000) 225,000
City's/Agency's share of new revenue:
$545,000
Less compensation for GRIP Service
(240,000)
Net new revenue to City/Agency after
compensating MRC for enhancement audit service
and GRIP Service
05 000
Should MRC's audit service fail to generate sufficient new tax revenue for
the City to cover the above GRIP Service charge, then MRC shall defer the
shortfall amount.
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5.33 ADDITIONAL SERVICES AND CHARGES
As indicated, MRC's compensation for the GRIP service includes one City
goal -setting worksession, and five revenue strategies worksessions. If the
City desires additional meetings, telephone conferences, or assistance in
developing and implementing strategies, these will be billed at the
prevailing rate per consultant, plus reimbursement for expenses.
Similarly, if the City requires additional copies of the entire report or any
section thereof, MRC shall invoice the City for reproduction charges at the
rate of ten cents per page.
Should the City decide to have MRC assume responsibility for the
verification/collection of physical presence data by preparing and mailing
survey questionnaires on City letterhead, and inputting the response data
on magnetic media, MRC will only charge the City for actual out-of-pocket
expense reimbursement.
The data elements required for the GRIP service are typically provided in a
computer accessible format. Should we encounter a situation where this is
not the case and the City decides to have MRC assume responsibility for
conversion of data into a computer accessible format, MRC will only charge
the City for actual out-of-pocket expense reimbursement.
In the event the City requires these or other additional services that require
an additional charge, MRC shall provide the City with a not -to -exceed
budget figure in advance.
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6.0 CERTIFICATION OF CONFIDENTIALITY
The Sales Tax Inquiry System, STARS reports, GRIP report and GRIP
Query System all contain information that is deemed confidential by
taxpayers and regulatory agencies. Accordingly, access is limited to
authorized City personnel and MRC as the City's authorized representative.
MRC hereby certifies that the confidential information gathered to prepare
the Sales Tax Information, STARS reports, GRIP report and GRIP Query
System shall only be used by MRC for those purposes authorized by the
City of Santa Ana.
Section 7056 of the State of California Revenue and Taxation Code
specifically limits the disclosure of confidential taxpayer information
contained in the records of the State Board of Equalization. This section
specifies the conditions under which a City may authorize persons other
than City officers and employees to examine State Sales and Use Tax
records.
■ MRC is authorized by this Agreement to examine sales and use tax
records of the State Board of Equalization provided to City pursuant
to contract under the Bradley -Burns Uniform Sales and Use Tax
Law.
■ MRC is required to disclose information contained in, or derived
from, those sales and use tax records only to an officer or employee
of the City who is authorized by resolution to examine the
information.
■ MRC is prohibited from performing consulting services for a retailer
during the term of this Agreement.
■ MRC is prohibited from retaining the information contained in, or
derived from, those sales and use tax records, after this Agreement
has expired.
Information obtained by examination of State Board of Equalization records
shall be used only for purposes related to collection of local sales and use
tax or for other governmental functions of the City as set forth by resolution
adopted pursuant to Section 7056(b) of the Revenue and Taxation Code.
MRC hereby certifies that any and all information utilized in the conduct of
work performed is to be utilized only for those purposes authorized by the
City and by the Bradley -Burns Uniform Local Sales and Use Tax Law.
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EXHIBIT B
GENERAL PROVISIONS
1. Independent Contractor. At all times during the term of this Contract,
Municipal Resource Consultants (Consultant) shall be an Independent Contractor
and shall not be an employee of the City of Santa Ana (City). City shall have the
right to control Consultant only insofar as the results of Consultant's services
rendered pursuant to this Agreement; however, City shall not have the right to
control the means by which Consultant accomplishes services rendered pursuant
to this Agreement.
2. Liabili . City shall not be called upon to assume any liability for direct
payment of any salaries, wages, or other compensation to any Consultant
personnel or subcontractor performing services hereunder for City, or any liability
other than provided for in this Agreement.
City shall not be liable for compensation or indemnity to any Consultant employee
or subcontractor for injury or sickness arising out of his/her employment, or for
any negligent actions of the Consultant or its employees.
All persons employed in the performance of such services and functions shall be
employees of Consultant, and as such shall not, for any purposes, be considered
employees of City and therefore shall have no right to any City service, civil
service, or other City status.
3. Subcontracts. Any subcontracts entered into by Consultant for services to
be rendered towards the completion of Consultant's portion of this Agreement
shall be for Consultant's benefit alone, and as such shall be its responsibility with
no liability resting on the City. Consultant agrees to provide a list of all
subcontractors to be used in connection with services to be rendered toward the
completion of its portion of this Agreement to the City within ten (10) working
days of execution of this Agreement.
4. Licenses, Permits, Etc. Consultant represents and warrants to City that
he/she has all licenses, permits, qualifications and approvals of whatsoever nature
which are legally required for Consultant to practice his profession. Consultant
represents and warrants to City that Consultant shall, at his/her sole cost and
expense, keep in effect or obtain at all times during the term of this Agreement
any licenses, permits, and approvals which are legally required for Consultant to
practice his/her profession.
34
GENERAL PROVISIONS
PAGE 2
5. Time. Consultant shall devote such time to the performance of services
pursuant to this Agreement as may be reasonably necessary for satisfactory
performance of Consultant's obligations pursuant to this Agreement. Neither
party shall be considered in default of this Agreement to the extent performance is
prevented or delayed by any cause, present or future, which is beyond the
reasonable control of the party.
6. Insurance.
(a) Public Liability. During the term of this Agreement,
Consultant shall maintain in full force and effect a policy of
public liability insurance with minimum coverages as follows:
$1,000,000 for injury to one person in any one occurrence;
$1,000,000 aggregate; and, $50,000 for property damage.
Consultant shall cause the City, its officials and employees to
be named on all liability policies described above as insured
as respects: (1) activities performed for the City by or on
behalf of the named insured, (2) products and completed
operations of the Named Insured, and (3) premises owned,
leased or used by the Named Insured.
(b) 'Worker's Compensation. During the term of this Agreement,
Consultant shall fully comply with the terms of the law of
California concerning worker's compensation. Said
compliance shall include, but not be limited to, maintaining in
full force and effect one or more policies of insurance insuring
against any liability Consultant may have for worker's
compensation.
7. Consultant Not Agent. Except as City may specify in writing,
Consultant shall have no authority, express or implied to act on behalf of City of
any capacity whatsoever as an agent. Consultant shall have no authority, express
or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
8. Assignment Prohibited. No party to this Agreement may assign any
right or obligation pursuant to this agreement. Any attempt of purported
assignment of any right or obligation pursuant to this Agreement shall be void
and of no effect.
GENERAL PROVISIONS
PAGE 3
9. Personnel. Consultant shall assign only competent personnel to perform
services pursuant to this Agreement. In the event that City, in its sole discretion,
at any time during the term of this Agreement, desires the removal of any person
or persons assigned by Consultant to perform services pursuant to this
Agreement, Consultant shall remove any such person immediately upon receiving
notice from City of the desire of City for the removal of such person or persons.
10. Standard of Performance. Consultant shall perform all services
required pursuant to this Agreement in the manner and according to the
standards observed by a competent practitioner of the profession in which
Consultant is engaged in the geographical area in which Consultant practices his
profession. All products of whatsoever nature which Consultant delivers to City
pursuant to this Agreement shall be prepared in a substantial, first class and
workmanlike manner and conform to the standards of quality normally observed
by a person practicing in Consultant's profession.
11. CityRepresentative. The City Manager or his designee is the
representative of the City and will administer this Agreement for the City.
12. Termination. This Agreement may terminate on ten (10) days written
notice by either party, or within such time as both parties may find necessary to
conclude the work currently under way and to summarize Consultant's findings
for City.
13. Indemnity and Hold Harmless. Consultant shall assume the defense of,
and indemnify and save harmless, the City, its officers, employees, and agents,
and each and every one of them, from and against all actions, damages, claims,
losses or expenses of every type and description to which they may be subjected
or put, by reason of, or resulting from, the performance of the work, provided that
such action, damage, claims, loss, or expense is attributable to bodily injury,
sickness, disease or death, or to injury to, or destruction of property, whether
upon or off the work, including the loss of use thereof, and is caused in whole or
in part by any negligent act or omission of the Consultant, and subcontractor,
anyone directly or indirectly employed by any of them or anyone for whose acts
any of them may be liable, whether or not it is caused in part by a party
indemnified hereunder.
GENERAL PROVISIONS
PAGE 4
14. Equal Employment Opportunity: During the performance of this
Agreement, Consultant, for itself, its assignees and successors in interest, agrees as
follows:
a. Compliance With Regulations: Consultant shall comply with the
Executive Order 11246 entitled "Equal Employment Opportunity,: as labor
regulations (41 C.F.R. Part 64), hereinafter referred to as the "Regulations."
b. Nondiscrimination: Consultant, with regard to the work performed by
it after award and prior to completion of the work pursuant to this Agreement,
shall not discriminate on the ground of race, color, religion, sex or national origin
in the selection and retention of subcontractors, including procurements of
materials and leases of equipment.
c. Solicitation for Subcontractor Including Procurements of Materials and
Equipment: In all solicitations either by competitive bidding or negotiations made
by Consultant for work to be performed under any subcontract, including
procurements of materials or equipment, such potential subcontractor or supplier
shall be notified by Consultant of Consultant's obligation under this Agreement
and the Regulations relative to nondiscrimination on the ground of race, color,
religion, sex or national origins.
d. Information and Reports: Consultant shall provide all information and
reports required by the Regulations, or orders and instructions issued pursuant
thereto, and will permit access to its books, records, accounts, other sources of
information and its facilities as may be determined by the City to be pertinent to
ascertain compliance with such Regulations, orders and instructions. Where any
information required of Consultant is in the exclusive possession of another who
fails or refuses to furnish this information, Consultant shall so certify to the City
and shall set forth what efforts it has made to obtain the information.
e. Sanctions for Noncompliance: In the event of noncompliance by
Consultant with the nondiscrimination provisions of this Agreement, the City
shall impose such contract sanctions as it may determine to be appropriate,
including, but not limited to:
(1) Withholding of payments to Consultant under the contract until
Consultant complies;
(2) Cancellation, termination, or suspension of the Agreement, in whole
or in part.
GENERAL PROVISIONS
PAGE 5
f. Incorporation of Provisions: Consultant shall include the provisions of
paragraphs a through e in every subcontract, including Regulations, order, or
instructions issued pursuant thereto. Consultant shall take such action with
respect to any Regulations, order or instructions issued pursuant thereto.
Consultant shall take such action with respect to any subcontract or procurement
as the City may direct as a means of enforcing such provisions, including
sanctions for noncompliance; provided, however, that in the event Consultant
becomes involved in, or is threatened with, litigation with a subcontractor or
supplier as a result of such direction, Consultant may request City to enter such
litigation to protect the interests of the City.
15. Notices. Any notice to be given from one party to the other pursuant to
this Agreement shall be deposited with the United States Postal Service
postage prepaid and addressed as follows:
To City: City Administrator
City of Santa Ana
20 Civic Center Plaza
Santa Ana, CA 92701
To Consultant: John Austin
MUNICIPAL RESOURCE CONSULTANTS
32107 W. Lindero Canyon Road
Suite 233
Westlake Village, CA 91361
Nothing in this paragraph shall be construed to prevent the giving of notice by
personal service
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