Hinderliter, deLlamas & Assoc/Tax Analysis 94CONTRACT SERVICES
AGREEMENT
THIS AGREEMENT FOR CONTRACT SERVICES (the "Agreement"), is made and entered
into by and between the CITY OF LA QUINTA, (the "City"),;a California municipal
corporation, and HINDERLITER, DE LLAMAS, & ASSOCIATES (the "Contractor"). The
parties hereto agree as follows:
1.0 SERVICES OF CONTRACTOR
1.1 Scope of Services. In compliance with all terms and conditions
of this Agreement, the Contractor shall provide those services related to Sales
Tax and Economic Analysis, as specified in the "Scope of Services" attached
hereto as Exhibit "A" and incorporated herein by this reference (the "services"
or "work"). Contractor warrants that all services will be performed in a
competent, professional and satisfactory manner in accordance with the standards
prevalent in the industry for such services.
1.2 Contractor's Proposal. The Scope of Services shall include the
Contractor's proposal or bid, if any, which shall be incorporated herein by this
reference as though fully set forth herein. In the event of any inconsistency
between the terms of such proposal and this Agreement, the terms of this
Agreement shall govern.
1.3 Compliance with Law. All services rendered hereunder shall be
provided in accordance with all ordinances, resolutions, statutes, rules,
regulations and laws of the City of La Quinta and any Federal, State or local
governmental agency of competent jurisdiction.
1.4 Licenses, Permits, Fees and Assessments. Contractor shall
obtain at its sole cost and expense such licenses, permits and approvals as may
be required by law for the performance of the services required by this
Agreement. Contractor shall have the sole obligation to pay for any fees,
assessments and taxes, plus applicable penalties and interest, which may be
imposed by law and arise from or are necessary for the performance of the
services required by this Agreement.
1.5 Familiarity with Work. By executing this Agreement, Contractor
warrants that (a) it has thoroughly investigated and considered the work to be
performed, (b) it has investigated the site of the work and fully acquainted
itself with the conditions there existing, (c) it has carefully considered how
the work should be performed, and (d) it fully understands the facilities,
difficulties and restrictions attending performance of the work under this
Agreement. Should the Contractor discover any latent or unknown conditions
materially differing from those inherent in the work or as represented by the
City, it shall immediately inform City of such fact and shall not proceed except
at Contractor's risk until written instructions are received from the Contract
Officer (as defined in Section 4.2 hereof).
1.6 Care of Work. The Contractor shall adopt reasonable methods
during the life of the Agreement to furnish continuous protection to the work,
and the equipment, materials, papers and other components thereof to prevent
losses or damages, and shall be responsible for all such damages, to persons or
property, until acceptance of the work by City, except such losses or damages as
may be caused by city's own negligence. The performance of services by
Contractor shall not relieve Contractor from any obligation to correct any
incomplete, inaccurate or detective work at no further cost to the City, when
such inaccuracies are due to the negligence of Contractor.
1.7 Additional Services. In accordance with the terms and
conditions of this Agreement, the Contractor shall perform services in addition
to those specified in the Scope of Services (Exhibit "A") when directed in
writing to do so by the Contract Officer, provided that Contractor shall not be
required to perform any additional services without compensation. Any addition
in compensation not exceeding five percent (5%) of the Contract Sum may be
approved by the Contract Officer. Any greater increase must be approved by the
City Council.
1.8 Special Requirements. Additional terms and conditions of this
Agreement, if any, which are made a part hereof are set forth in the "Special
Requirements" attached hereto as Exhibit "B" and incorporated herein by this
reference. In the event of a conflict between the provisions of Exhibit "B" and
any other provisions of this Agreement, the provisions of Exhibit "B" shall
govern.
2.0 COMPENSATION
2.1 Contract Sum. For the services rendered pursuant to this
Agreement, the Contractor shall be compensated in accordance with the "Schedule
of Compensation" attached hereto as Exhibit "C" and incorporated herein by this
reference, but not exceeding the maximum contract amount of Three Thousand, Nine
Hundred Dollars ($3,900) per year (the "Contract Sum"), except as provided in
Section 1.7. The method of compensation set forth in the Schedule of
Compensation may include a lump sum payment upon completion, payment in
accordance with the percentage of completion of the services, payment for time
and materials based upon the Contractor's rates as specified in Exhibit "C", but
not exceeding the Contract Sum, or such other methods as may be specified in the
Schedule of Compensation (Exhibit "C"). Compensation may include reimbursement
for actual and necessary expenditures for reproduction costs, transportation
expense, telephone expense, premiums for bonds and insurance, and similar costs
and expenses when and if specified in the Schedule of Compensation (Exhibit "C") .
2.2 Method of Payment. Any month in which Contractor wishes to
receive payment, Contractor shall submit to the City no later than the tenth
(Loth) working day of such month, in the form approved by the City's Finance
Director, an invoice for services rendered prior to the date of the invoice.
Such invoice shall (1) describe in detail the services provided, including time
and materials, (2) specify each staff member who has provided services and the
number of hours assigned to each such staff member, and (3) indicate the total
expenditures to date. Such invoice shall contain a certification by a principal
member of Contractor specifying that the payment requested is for work performed
in accordance with the terms of this Agreement. City will pay Contractor for all
expenses stated thereon which are approved by City pursuant to this Agreement no
later than the last working day of the month.
3.0 PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of
this Agreement.
3.2 Schedule of Performance. All services rendered pursuant to
this Agreement shall be performed diligently and within the time period
established in the "Schedule of Performance" attached hereto as Exhibit "D" and
incorporated herein by this reference. Extensions to the time period specified
in the Schedule of Performance may be approved in writing by the Contract
officer.
3.3 Force Majeure. The time period specified in the Schedule of
Performance (Exhibit "D") for performance of the services rendered pursuant to
this Agreement shall be extended because of any delays due to unforeseeable
causes beyond the control and without the fault or negligence of the Contractor,
including, but not restricted to, acts of God or of the public enemy, fires,
earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight
imbargoes, acts of any governmental agency other than City, and unusually severe
weather, if the Contractor shall within ten (10) days of the commencement of such
delay notify the Contracting Officer in writing of the causes of the delay. The
Contracting Officer shall ascertain the facts and the extent of delay, and extend
the time for performing the services for the period of the forced delay when and
if in his judgment such delay is justified, and the Contracting Officer's
determination shall be final and conclusive upon the parties to this Agreement.
3.4 Term. Unless earlier terminated in accordance with Section 7.8
of this Agreement, this Agreement shall continue in full force and effect until
completion of the services, except as otherwise provided in the Schedule of
Performance (Exhibit "D").
4.0 COORDINATION OF WORK
4.1 Representative of Contractor. The following principals of
Contractor are hereby designated as being the principals and representatives of
Contractor authorized to act in its behalf with respect to the work specified
herein and make all decisions in connection therewith:
a. Lloyd de Llamas
b. Robert Hinderliter
C. Robert Poff
It is expressly understood that the experience, knowledge, capability and
reputation of the foregoing principals were a substantial inducement for City to
enter into his Agreement. Therefore, the foregoing principals shall be
responsible during the term of this Agreement for directing all activities of
Contractor and devoting sufficient time to personally supervise the services
hereunder. The foregoing principals may not be changed by Contractor and no
other personnel may be assigned to perform the service required hereunder without
the express written approval of City.
4.2 Contract Officer. The Contract Officer shall be the
or such other person as may be designated by the City Manager of
City. It shall be the Contractor's responsibility to assure that the Contract
Officer is kept informed of the progress of the performance of the services and
the Contractor shall refer any decisions which must be made by City to the
Contract Officer. Unless otherwise specified herein, any approval of City
required hereunder shall mean the approval of the Contract Officer.
4.3 Prohibition Against Subcontracting or Assignment. The
experience, knowledge, capability and reputation of Contractor, its principals
and employees were a substantial inducement for the City to enter into this
Agreement. Therefore, Contractor shall not contract with any other entity to
perform in whole or in part the services required hereunder without the express
written approval of the City. In addition, neither this Agreement nor any
interest herein may be assigned or transferred, voluntarily or by operation of
law, without the prior written approval of City.
All insurance required by this Section shall be kept in effect during the
term of this Agreement and shall not be cancelable without thirty (30) days'
written notice of proposed cancellation to City. The procuring of such insurance
or the delivery of policies or certificates evidencing the same shall not be
construed as a limitation of Contractor's obligation to indemnify the City, its
officers, employees, contractors, subcontractors or agents.
5.2 Indemnification. The Contractor shall defend, indemnify and
hold harmless the City, its officers, officials, employees, representatives and
agents, from and against any and all actions, suits, proceedings, claims,
demands, losses, costs, and expenses, including legal costs and attorneys' fees,
for injury to or death of person(s), for damage to property (including property
owned by the City) and for errors and omissions committed by Contractor, its
officers, anyone directly or indirectly employed by Contractor, any
subcontractor, and agents or anyone for whose acts any of them may be liable, ,
arising directly or indirectly out of or related to Contractor's performance
under this Agreement, except to the extent of such loss as may be caused by
City's own active negligence, sole negligence or willful misconduct, or that of
its officers or employees.
5.3 Remedieg. In addition to any other remedies the City may have
if Contractor fails to provide or maintain any insurance policies or policy
endorsements to the extent and within the time herein required, the City may, at
its sole option:
a. Obtain such insurance and deduct and retain the amount
of the premiums for such insurance from any sums due under this
Agreement.
b. Order the Contractor to stop work under this Agreement
and/or withhold any payment(B) which become due to Contractor
hereunder until Contractor demonstrates compliance with the
requirements hereof.
C. Terminate this Agreement.
Exercise of any of the above remedies, however, is an alternative to
any other remedies the City may have and are not the exclusive remedies for
Contractor's failure to maintain or secure appropriate policies or endorsements.
Nothing herein contained shall be construed as limiting in any way the extent to
which Contractor may be held responsible for payments of damages to persons or
property resulting from Contractor's or its subcontractors' performance of work
under this Agreement.
6.0 RECORDS AND REPORTS.
6.1 Reports. Contractor shall periodically prepare and submit to
the Contract Officer such reports concerning the performance of the services
required by this Agreement as the Contract Officer shall require.
6.2 Records. Contractor shall keep such books and records as shall
be necessary to perform the services required by this Agreement and enable the
Contract Officer to evaluate the cost and the performance of such services.
Books and records pertaining to costs shall be kept and prepared in accordance
with generally accepted accounting principles. The Contract Officer shall have
full and free access to such books and records at all reasonable times, including
the right to inspect, copy, audit and make records and transcripts from such
records.
6.3 Ownership of Documents. Originals of all drawings,
specifications, reports, records, documents and other materials, whether in hard
copy or electronic form, which are prepared by Contractor, its employees,
subcontractors and agents in the performance of this Agreement, shall be the
property of City and shall be delivered to City upon the termination of this
Agreement or upon the earlier request of the Contract Officer, and Contractor
shall have no claim for further employment or additional compensation as a result
of the exercise by City of its full rights of ownership of the documents and
materials hereunder. Contractor may retain copies of such documents for its own
use. Contractor shall have an unrestricted right to use the concepts embodied
herein. Contractor shall cause all subcontractors to assign to City any
documents or materials prepared by them, and in the event Contractor fails to
secure such assignment, Contractor shall indemnify City for all damages suffered
thereby.
6.4 Release of Documents. The drawings, specifications, reports,
records, documents and other materials prepared by Contractor in the performance
of services under this Agreement shall not be released publicly without the prior
written approval of the Contract Officer or as required by law. Contractor shall
not disclose to any other private entity or person any information regarding the
activities of the City, except as required by law or as authorized by the City.
7.0 ENFORCEMENT OF AGREEMENT.
7.1 California Law. This Agreement shall be construed and
interpreted both as to validity and to performance of the parties in accordance
with the laws of the State of California. Legal actions concerning any dispute,
claim or matter arising out of or in relation to this Agreement shall be
instituted in the Superior Court of the County of Riverside, State of California,
or any other appropriate court in such county, and Contractor covenants and
agrees to submit to the personal jurisdiction of such court in the event of such
action.
7.2 Disputes. In the event of any dispute arising under this
Agreement, the injured party shall notify the injuring party in writing of its
contentions by submitting a claim therefor. The injured party shall continue
performing its obligations hereunder so long as the injuring party commences to
cure such default within ten (10) days of service of such notice and completes
the cure of such default within forty-five (45) days after service of the notice,
or such longer period as may be permitted by the Contract Officer; provided that
if the default is an immediate danger to the health, safety and general welfare,
the City may take such immediate action as the City deems warranted. Compliance
with the provisions of this Section shall be a condition precedent to termination
of this Agreement for cause and to any legal action, and such compliance shall
not be a waiver of any party's right to take legal action in the event that the
dispute is not cured, provided that nothing herein shall limit City's right to
terminate this Agreement without cause pursuant to Section 7.8.
7.3 Retention of Funds. City may withhold from any monies payable
to Contractor sufficient funds to compensate City for any losses, costs,
liabilities or damages it reasonably believes were suffered by City due to the
default of Contractor in the performance of the services required by this
Agreement.
7.4 Waiver. No delay or omission in the exercise of any right or
remedy of a non -defaulting party on any default shall impair such right or remedy
or be construed as a waiver. City's consent or approval of any act by Contractor
requiring City's consent or approval shall not be deemed to waive or render
unnecessary City's consent to or approval of any subsequent act of Contractor.
Any waiver by either party of any default must be in writing and shall not be a
waiver of any other default concerning the same or any other provision of this
Agreement.
7.5 Rights and Remedies are Cumulative. Except with respect to
rights and remedies expressly declared to be exclusive in this Agreement, the
rights and remedies of the parties are cumulative and the exercise by either
party of one or more of such rights or remedies shall not preclude the exercise
by it, at the same or different times, of any other rights or remedies for the
same default or any other default by the other party.
7.6 Legal Action. In addition to any other rights or remedies,
either party may take legal action, at law or at equity, to cure, correct or
remedy any default, to recover damages for any default, to compel specific
performance of this Agreement, to obtain injunctive relief, or to obtain any
other remedy consistent with the purposes of this Agreement.
7.7 Termination Prior To Expiration Of Term. This Section shall
govern any termination of this Agreement, except as specifically provided in the
following Section 7.9 for termination for cause. The City reserves the right to
terminate this Agreement at any time, with or without cause, upon thirty (30)
days' written notice to Contractor. Upon receipt of any notice of termination,
Contractor shall immediately cease all services hereunder except such as may be
specifically approved by the Contract Officer. Contractor shall be entitled to
compensation for all services rendered prior to receipt of the notice of
termination and for any services authorized by the Contract Officer thereafter
in accordance with the Schedule of Compensation (Exhibit "C") or such as may be
approved by the Contract Officer, except as provided in Section 7.3.
7.8 Termination For Default Of Contractor. If termination is due
to the failure of the Contractor to fulfill its obligations under this Agreement,
City may, after compliance with the provisions of Section 7.2, take over the work
and prosecute the same to completion by contract or otherwise, and the Contractor
shall be liable to the extent that the total cost for completion of the services
required hereunder exceeds the compensation herein stipulated (provided that
the City shall use reasonable efforts to mitigate such damages), and City may
withhold any payments to the Contractor for the purpose of setoff or partial
payment of the amounts owed the City as previously stated in Section 7.3.
7.9 Attorneys' Fees. If either party commences an action against
the other party arising out of or in connection with this Agreement, the
prevailing party shall be entitled to recover reasonable attorneys' fees and
Costs of suit from the losing party.
8.0 CITY OFFICERS AND EMPLOYEES; NON-DISCRIMINATION.
8.1 Non -liability of City Officers and Employees. No officer or
employee of the City shall be personally liable to the Contractor, or any
successor in interest, in the event of any default or breach by the City or for
any amount which may become due to the Contractor or to its successor, or for
breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest. No officer or employee of the City shall
have any personal interest, direct or indirect, in this Agreement nor shall any
such officer or employee participate in any decision relating to the Agreement
which effects his personal interest or the interest of any corporation,
partnership or association in which he is, directly or indirectly, interested,
in violation of any State statute or regulation. The Contractor warrants that
it has not paid or given and will not pay or give any third party any money or
other consideration for obtaining this Agreement.
8.3 Covenant against Discrimination. Contractor covenants that,
by and for itself, its heirs, executors, assigns, and all persons claiming under
or through them, that there shall be no discrimination against or segregation of,
any person or group of persons on account of race, color, creed, religion, sex,
marital status, national origin, disability or ancestry in the performance of
this Agreement. Contractor shall take affirmative action to insure that
applicants are employed and that employees are treated during employment without
regard to their race, color, creed, religion, sex, marital status, national
origin, physical disability, mental disability, medical condition, age or
ancestry.
9.0 MISCELLANEOUS PROVISIONS
9.1 Notice. Any notice, demand, request, consent, approval,
communication either party desires or is required to give to the other party or
any other person shall be in writing and either served personally or sent by
prepaid, first-class mail to the address set forth below. Either party may
change its address by notifying the other party of the change of address in
writing. Notice shall be deemed communicated forty-eight (48) hours from the
time of mailing if mailed as provided in this Section 9.1.
To City:
CITY OF LA QUINTA
78-495 Calle Estado
La Quinta, California 92253
Attention: Richard Parzonko
To Contractor:
HINDERLITER, DE LLAMAS, & ASSOCIATES
1340 Valley Vista Drive, Suite 200
Diamond Bar, CA 91765
9.2 Integrated Agreement. This Agreement contains all of the
agreements of the parties and all previous understandings, negotiations and
agreements are integrated into and superseded by this Agreement.
9.3 Amendment. This Agreement may be amended at any time by the
mutual consent of the parties by an instrument in writing signed by both parties.
9.4 Severability. In the event that any one or more of the
phrases, sentences, clauses, paragraphs, or sections contained in this Agreement
shall be declared invalid or unenforceable by a valid judgment or decree of a
court of competent jurisdiction, such invalidity or unenforceability shall not
effect any of the remaining phrases, sentences, clauses, paragraphs, or sections
of this Agreement which are hereby declared as severable and shall be interpreted
to carry out the intent of the parties hereunder.
9.5 Authority. The persons executing this Agreement on behalf of
the parties hereto warrant that they are duly authorized to execute this
Agreement on behalf of said parties and that by so executing this Agreement the
parties hereto are formally bound to the provisions of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the dates stated below.
CITY OF LA INTA, a Cali rnia municipal
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APPROVED AS TO FORM:
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City Attorney
Dated:
Dated:
"CITY"
Title: President
By:
Name:
Title:
"CONTRACTOR"
EXHIBIT "A"
SCOPE OF SERVICES
The Contractor shall perform the following services:
A. Sales tax and economic analysis
1. Contractor shall establish a special data base that identifies the
name, address and quarterly allocations of the major sales tax producers
within the City for the most current and previous four quarters from the
date of this agreement. Major sales tax producers are defined as those
businesses meeting a quarterly revenue threshold determined by the City.
Since 100% of the business outlets registered with the Board of
Equalization are tracked monthly, this major producers data base is
designed to highlight the activities of major businesses. A second data
base covering the same period will be established showing total sales tax
receipts for each business category identified by the Board of
Equalization. These data bases will be utilized to generate special
reports to the City on: major sales tax producers by rank and category,
analysis of sales tax activity by category and business districts or
redevelopment areas specified by City, analysis or reporting aberrations,
and per capita and outlet comparisons with state wide sales.
2. Contractor shall provide up -dated reports each quarter identifying
changes in sales by major outlets and by category; area growth and decline
comparisons; and current graphics, tables, and top 100 listings. Quarterly
aberrations due to State audits, fund transfers, and receivables along with
late or double payments will be identified.
3. Contractor will additionally provide an analysis for the City or its
Redevelopment Agency to share with Chambers of Commerce and other economic
development interest groups that analyze City's sales tax trends by major
groups, and geographic areas without disclosing confidential information.
4. Contractor will provide annual reports for the Administrator and
City Council identifying historical growth comparisons with state, county,
selected city averages and C.P.I. indices; top producer listings and make
up and volatility of the economic base. Annual reconciliation worksheets
to assist Finance Officers with budget forecasting will also be provided.
5. Contractor shall make available to City Staff the HdL DATA computer
program and data base containing sellers permit information for all in -city
business outlets registered with the Board of Equalization. In addition,
contractor shall process for City the monthly registration and allocation
files provided by the board in magnetic media. Printouts of registration
changes and dollars allocated by business name and number will be provided
from these files on a monthly basis.
B. Allocation Audit Recovery
1. Contractor shall conduct an initial and on -going sales tax audit in
order to identify and correct "point -of -sale" distribution errors and
thereby generate previously unrealized sales tax income for the City.
Common errors that will be monitored and corrected include: transposition
errors resulting in misallocations; erroneous consolidation of multiple
outlets; misreporting of "point of sale" from the wrong location; delays
in reporting new outlets; misidentifying transactions as a "use tax" rather
than a "sales tax," and erroneous fund transfers and adjustments.
2. Contractor will initiate contracts with the appropriate sales
management and accounting officials in companies that have businesses where
a probability of error exists to verify whether current tax receipts
accurately reflect the local sales activity. Such contacts will be
conducted in a manner to encourage local business retention and expansion.
3. contractor shall prepare and submit to the Board of Equalization all
information necessary to correct any allocation errors that are identified
and shall follow-up with the individual businesses and the State Board of
Equalization to ensure that all back quarter payments due the City are
recovered.
4. If during the course of its audit, Contractor finds businesses
located in the City that are properly reporting sales tax but have the
potential for modifying their operation to provide an even greater share
to the City, contractor will work with those businesses and the City to
encourage such changes.
C. On Going Consultation
Contractor shall work with City and Redevelopment Agency Staffs on
questions related to tenant mix alternatives for maximum sales tax returns;
advise City business license staff on utilization of reports to enhance
business license collection efforts; provide sales tax projections on
specific projects for redevelopment negotiation and city budget purposes;
and provide sample reports, letters and programs to enhance the sales tax
base through improved economic development efforts.
EXHIBIT "B"
SPECIAL REQUIREMENTS
CONFIDENTIALITY
Section 7056 of the State of California Revenue and Taxation code specifically
limits the disclosure of confidential taxpayer information contained in the
records of the State Board of Equalization. This section specifies the
conditions under which a City may authorize persons other than City officers and
employees to examine State Sales and Use Tax records.
The following conditions specified in Section 7056 (b), (1) of the State of
California Revenue and Taxation Code are hereby made part of this contractual
agreement.
A. Contractor is authorized by this Agreement to examine sales or transactions
and use tax records of the Board of Equalization provided to City pursuant
to contract under the Bradley -Burns Uniform Sales and Use Tax Law
B. Contractor is required to disclose information contained in, or derived
from, those sales or transactions and use tax records only to an officer
or employee of the City who is authorized by resolution to examine the
information.
C. Contractor is prohibited from performing consulting services for a
retailer, as defined in California Revenue & Tax Code Section 6015, during
the term of this agreement.
D. Contractor is prohibited from retaining the information contained in, or
derived from those sales or transactions and use tax records, after this
Agreement has expired. Information obtained by examination of board
records shall be used only for purposes related to collection of local
sales and use tax or for other governmental functions of the City as set
forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and
Taxation Code. The resolution shall designate the Contractor as a person,
authorized to examine sales and use tax records and certify that this
Agreement meets the requirements set forth above and in Section 7056(b),
(1) of the Revenue and Taxation Code.
CITY MATERIALS AND SUPPORT
City shall adopt a resolution in a form acceptable to the State Board of
Equalization and in compliance with Section 7056 of the Revenue and Taxation
Code, authorizing Contractor to examine the confidential sales tax records of
City. City further agrees to provide any information or assistance that may
readily be available such as business license records within the City and to
provide Contractor with proper identification for contacting businesses. City
further agrees to provide copies of the monthly allocation reports received for
the most recent five quarters from the execution of this agreement and to
continue to provide copies of future allocation reports on computer readable
magnetic media until such time as all audit adjustments have been completed by
the State Board of Equalization and percentage reimbursements due the Contractor
have been paid.
EXHIBIT "C"
SCHEDULE OF COMPENSATION
A. Contractor shall establish the sales tax and audit data bases and shall
provide the monthly and quarterly updates referenced above for a fee of
$325.00 per month, invoiced quarterly (hereafter referred to as "monthly
fee").
B. Contractor shall be further paid 15% of all new Sales and/or Use tax
revenue received by the City as a result of audit and recovery work
performed by Contractor (hereafter referred to as "audit fees"). New sales
and/or use tax revenue shall not include any amounts determined by City or
Contractor to be increment attributable to causes other than Contractor's
work pursuant to this agreement. In the event that Contractor is
responsible for an increase in the tax reported by businesses already
properly making tax payments to the City, it shall be Contractor's
responsibility to separate and support the incremental amount attributable
to its efforts prior to the application of the audit fee. Said audit fees
will apply to state fund transfers received for back quarter reallocations
and monies received in the first eight consecutive reporting quarters
following completion of the audit by Contractor and confirmation of
corrections by the State Board of Equalization. Contractor shall provide
City with an itemized quarterly invoice showing all formula calculations
and amounts due for audit fees.
Contractor shall obtain City approval prior to beginning the work of
correcting tax reporting methodology or "point of sale" for specific
businesses where said payment of the percentage fee will be expected. Said
approval shall be accomplished by the City Administrator or his designated
representative on the Sales Tax Audit Authorization form, a copy of which
is attached as "Exhibit A." City shall pay audit fees upon Contractor's
submittal of evidence of State Fund Transfers and payments to City from
businesses identified in the audit and approved by the City.
C. Above sum shall constitute full reimbursement to Contractor for all direct
and indirect expenses incurred by Contractor in performing audits including
the salaries of contractor's employees, and travel expenses connected with
contacting local and out-of-state businesses and Board of Equalization
representatives.
EXHIBIT "D"
SCHEDULE OF PERFORMANCE
Schedule of Completion - This is an ongoing service subject to
cancellation by the City of La quinta on a thirty (30) day notice.