HomeMy WebLinkAbout1999-12-06 City CouncilCity of Palo Alto
City Manager’s Report
3
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT:ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
DECEMBER 6, 1999 CMR: 377:99
APPROVAL OF: 1) CONTRACT WITH MUNICIPAL RESOURCE
CONSULTANTS FOR CONSULTING SERVICES RELATED TO
SALES AND PROPERTY TAX REVENUE REPORTING ($30,000)
AND REVENUE RECOVERY EFFORTS FOR SALES TAX
REVENUES, AND 2) RESOLUTION OF THE COUNCIL OF THE
CITY OF PALO ALTO AUTHORIZING THE EXAMINATION OF
SALES AND USE TAX RECORDS
RECOMMENDATION
Staff recommends that Council approve the attached contract with Municipal Resource
Consultants (MRC) to provide:
a)
b)
Quarterly sales and property tax revenue reporting;
Revenue recovery efforts for sales tax revenues.
The sales and tax property-reporting portion of the contract totals $30,000. In addition,
the contract includes payments to MRC of 25 percent of recovered revenues, with the
actual payment amounts dependent upon how much additional revenue MRC is able to
recover on the City’s behalf. Based on an estimated MRC recovery of $200,000, staff
included $50,000 in the 1999-00 Adopted Budget. The initial term of the contract is for
one year with two additional one-year terms.
In addition, staff recommends approval of a resolution giving MRC authorization to
access City sales and use tax records.
CMR: 377:99 Page 1 of 3
DISCUSSION
Project Description
The City of Palo Alto has used MRC’s services for the past nine years to provide
quarterly sales tax reporting and forecasting services. Those services have been
invaluable in helping the City understand and project its lafgest revenue source.
Staff has negotiated a contract with MRC to provide for continuation of these services, as
well as additional services that Palo Alto has not utilized in the past. Those services
include sales tax recovery efforts and property tax forecasting and reporting. The
agreement negotiated will complement the City Auditor’s Office in seeking out sales tax
discrepancies and following up with the State Board of Equalization (SBOE).
If MRC recovers revenue that the City would not have otherwise received, it will receive
25 percent of the incremental revenue, while the City will receive the remaining 75
percent. Most other cities that use MRC or other tax consultant services take advantage
of both the reporting and the recovery services. It is not uncommon for errors to occur in
the allocation of cities’ sales tax, and MRC is expert in uncovering those errors and
working with the SBOE to return them to their proper jurisdiction. Because virtually all
of Palo Alto’s neighbors also take advantage of tax recovery services from MRC or other
such firms, it is in Palo Alto’s interest to seek out errors as well. This is particularly true
for businesses that have offices in multiple jurisdictions and are on the borders of two
jurisdictions. Before pursuing potential errors, MRC has agreed to a process by which it
will coordinate with the City Auditor’s Office to ensure that MRC’s efforts do not overlap
with any concurrent audits the City Auditor may be pursuing. In that capacity, MRC will
only provide auditing services on an as-needed basis.
The City will not contract with MRC for property tax recovery services. Unlike sales tax,
property tax errors are usually more straightforward to track down and the City Auditor
believes he can plan an effective role in this arena. If the City Auditor later determines
that it is more cost effective from a time perspective for MRC to pursue property tax
revenue recovery efforts similar to sales tax recovery, the City has the flexibility of
adding that scope of work to the contract.
Selection Process
A working team consisting of staff from the Administrative Services Department, the
City Manager’s Office, and the City Auditor’s Office sent out a RFP in November 1998.
Two firms responded to the RFP: MRC and Hinderliter, de Lamas & Associates (HdL).
The working team interviewed both consulting firms and selected MRC. MRC was felt
to have a deeper understanding of Palo Alto’s sales tax sources; had outstanding
references; and has provided invaluable sales tax data and analysis to the City in the past.
In addition, MRC was willing to assign one professional staff person to Palo Alto’s
account. Staff believed this extra customer service and attention would provide the City
CMR: 377:99 Page 2 of 3
with the most knowledgeable trend analysis. MRC also appears to be more pro-active in
supporting legislation that assures revenue generated locally stays with the local
jurisdiction. Finally, because Palo Alto’s two biggest neighbors both use HdL, staff
believes MRC will be more likely to strongly represent Palo Alto’s interests.
RESOURCE IMPACT
Funding for this contract has been budgeted in the General Fund for 1999-00. The City
will pay MRC $30,000 for quarterly reporting for sales and property tax and 25 percent
of any sales taxes it recovers that the City would not have otherwise recovered on its
own. Invoices from MRC for sales tax recovery services will be reviewed by the City
Auditor’s Office to ensure their accuracy prior to payment. Staff has included a total of
$50,000 in the 1999-00 Adopted Budget for sales tax recovery services.
ENVIRONMENTAL REVIEW
Revenue reporting consultant services is not a project under the California Environmental
Quality Act (CEQA).
PREPARED BY:Joseph Saccio, Manager, Investments and Debt
DEPARTMENT HEAD:
CITY MANAGER APPROVAL:
CARL ~~ATS "-- ......
Director, Administrative Services
//
¢jl~y Manager l~///
ATTACHMENT S:Contract with Municipal Resource Consultants, an MBIA
MuniServices Company
Resolution of The Council of the City of Palo Alto Authorizing the
Examination of Sales and Use Tax Records
CMR: 377:99 Page 3 of 3
AGREEMENT
BY THIS AGREEMENT made and entered into this day of ,
1999, by and between the City of Palo Alto (CITY) and MBIA
MuniServices Company/Municipal Resource Consultants (MMC/MRC), an
MBIA MuniServices Company, in consideration of their mutual
covenants, the parties hereto agree as follows:
SERVICES. MMC/MRC shall provide the to the CITY sales and use
tax, and property tax revenue information services, as
specified in Exhibit A, which is attached hereto and
incorporated herein by this reference.
0 TERM. The initial term of this agreement shall be from
January i, 1999 through December 31, 1999; said term shall be
extended January i, 2000 for two additional one year terms,
unless either party provides 30 days advance notice of
intention to terminate the agreement. In addition, as
provided in the General Provisions (EXHIBIT B), either party
may terminate this agreement at any time, without cause, by
giving the other party thirty days written notice of
termination. STARS reporting services will be provided as of
January i, 1999. Audit and other reporting services will
commence as of November i, but will cover the revenue
reporting periods beginning January i, 1999. In the event
that either party terminates prior to a full year’s service
being completed, the CITY will be refunded for any unused
quarters of MMC/MRC’s STARS, PTARS and GRIP information
systems that are described in more detail below.
o COMPENSATION. Compensation for providing the services shall
be as follows:
Sales/Use Tax Audit Services:
MMC/MRC’s compensation for the sales/use tax allocation audit
service is 25% of the incremental revenue actually produced
for the CITY as a result of MMC/MRC detecting and documenting
point-of-sale/use taxpayer reporting errors/omissions that are
in the City’s favor. Compensation shall not include revenue
recovery resulting from the City Auditor’s detection of sales
tax errors/omissions. Said 25% applies to the first six
consecutive reporting quarters following completion of the
audit by MMC/MRC and processing/confirmation of corrections by
the State Board of Equalization. MMC/MRC will also pursue
retroactive recoveries for the CITY for eligible prior
periods. If MMC/MRC is successfu! in securing retroactive
991102 sdl 0032271
recovery for prior periods, the 25% compensation would apply
to the fund transfers (i.e., retroactive adjustments for
eligible amounts improperly distributed in prior quarters)
actually received by the City.
For Quarterly Distribution Report (QDR) misallocations, upon
correction of the account, MMC/MRC is only compensated for
quarters in which the mis-allocations occur with no forward
quarters to be paid. For misallocations stemming from
erroneous SBE policies or interpretations, MMC/MRC’s
participation is typically prospective only as these
corrections must be implemented through regulatory
clarification/change, legislation or legal action.
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 name of the business for which additional
revenue has been received as a result of MMC/MRC efforts, the
business address, permit number, local allocation amount
received by the CITY and amount due MMC/MRC. Sales tax
invoices shall be submitted to the City Auditor’s Office are
due and payable upon receipt. Fees for reporting services
shall be submitted to the Administrative Services Office, and
are due and payable upon receipt.
During the term of this Agreement, if any tax revenues
allocated to the CITY based upon MMC/MRC’s detecting and
documenting a point of sales/use tax report error, are
deteremined by the State Board of Equalization to be allocable
to another party or governmental entity, and the reallocation
relates to period(s) for which MMC/MRC was compensated on the
account, MMC/MRC shall refund to the CITY any fee the CITY has
paid to MMC/MRC for revenue recovery services associated with
that particular taxpayer and period(s). Under this situation,
any future fees that would have been owed to MMC/MRC for this
particular taxpayer are null and void. The obligation of
MMC/MRC to refund such fees shall survive the termination of
expiration of this Agreement.
Use Tax: Proactive use tax outreach services will be done
collaboratively with, and under the guidance of City staff.
MMC/MRC further recognizes that the City Auditor’s Office is
currently developing a.use tax audit program. At the time
this audit program is in place, the City may amend this
contract to utilize a backstop service approach similar to the
services described for sales tax in this contract.
Sales Tax Analysis and Reporting Service (STARS)
MMC/MRC shall provide the Sales Tax Analysis and Reporting
Service (STARS) for $1,500 per quarter ($6,000 for the full
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991102 sd| 0032271
year), payable only after the CITY has received the STARS
Query System and the STARS Digest(s) Reports. STARS is
displayed in a brochure, attached and hereby included in this
contract by reference.
Property Tax Analysis and Reporting Service (PTARS)
MMC/MRC shall provide the Property Tax Analysis and Reporting
Service with geo-based ~apping capability for $15,000 per year
payable only after the CITY has received the PTARS Query
System and the Property Tax information report. PTARS is
described in a brochure, attached and hereby included in this
contract. As part of its Property Tax Analysis and Reporting
System MMC/MRC shall provide the City with quarterly analysis
reports. MMC/MRC may be requested to provide information and
advice to the City in developing an interim Property Tax Audit
program. The Property Tax Analysis and Reporting Service
shall not be commenced until such time as CITY makes a
specific request that it is be provided by MMC/MRC and MMC/MRC
mutually agrees to provide it.
Geobased Revenue Information System Program Service (GRIP)
For $7,000 per year, MMC/MRC shall provide its basic GRIP, a
comprehensive relational database that integrates sales and
property tax sources and for an additional $5,000 per year
MMC/MRC shall provide its mapping component for GRIP. The
linkage is both through parcel, address(es), business name,
and a secondary name source. GRIP is the seamless integration
of all these revenue sources. GRIP contains geo-based mapping
capability. The mapping capability allows the user to select
a parcel, address, entity name or other address based
characteristic(s) and display all or selected revenue elements
contained within selection from the map or table. The GRIP
service shal! include revenue information for sales tax and
property tax only. CITY understands that there may be
additional charges to load data into GRIP that is not
otherwise a part of this contract.
Costs quoted for all 3 systems, STARS, PTARS, and GRIP,
include ongoing maintenance and version upgrades and shall be
fixed for the.three-year term of this contract. A help desk
for technical support shall be available over the phone during
normal business hours, California time (8:30 AM to 5:00 PM).
The expected turn around response time shall be two hours or
less.
Backstop Audit Programs
As the City of Palo Alto conducts sales/use tax audit programs
internally, MMC/MRC shall provide the sales/use tax audit
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services on a basis that complements the CITY’s program.
MMC/MRC will therefore provide revenue audit and recovery
services as a backstop to the CITY’S Auditor Office functions.
MMC/MRC shall provide to the CITY on a quarterly basis a
comprehensive listing of sales activity for the prior quarter,
in the form of MMC/MRC’s STARS report, to be delivered in a PC
readable version. After the City Auditor’s Office has had the
opportunity to review the listing, the City Auditor’s Office
shall provide a written listing within 30 days of accounts
currently under investigation by the City. MMC/MRC shall be
entitled to pursue revenue recovery efforts withthe SBE for
any account not included on the list of accounts that the City
wishes to pursue. MMC/MRC shall also then be eligible to
receive subsequent compensation from the CITY according to the
amounts listed under "Compensation" above for detecting and
documenting any such error/omission, which has resulted in
deficient payment to the CITY. MMC/MRC shall not be entitled
to a fee for sales tax recovery services for any error
omissions that CITY has identified and is actively pursuing.
At the City’s written request, MMC/MRC may pursue accounts
that the City has been working on but for some reason has been
unable to get the taxpayer or the SBE to correct. In these
cases, MMC/MRC will pursue any subsequent error correction. In
such cases, MMC/MRC’s fee shall be lower than described in the
compensation portion of this agreement, and will be a mutually
agreed upon rate prior to MMC/MRC’s pursuing the corrections.
o CLIENT RELATIONS. The CITY requires that MMC/MRC work in
such a way with Palo Alto businesses and the State Board of
Equalization that honors and maintains the professional
approach the CITY has fostered. See Exhibit A, "Approach to
Sales/Use Tax Audit" for additional clarification.
°
II
II
II
II
II
GENERAL PROVISIONS. General provisions for this agreement
are included in EXHIBIT B, which is attached hereto and
incorporated herein by this reference.
991102 sdl 0032271
4
IN WITNESS WHEREOF, the
authorized representatives
first above written.
ATTEST:
parties hereto have by their
executed this Contract on the
CITY OF PALO ALTO
duly
date
City Clerk Mayor
APPROVED AS TO FORM:
senior Asst. City Attorney
APPROVED :
Assistant City Manager
Director of Administrative
Services
Risk Manager
MBIAMUNISERVICES
COMPANY/MUNICIPAL RESOURCE
CONSULTANTS
Managing Director: Grant
Brimhall
Name: ~.~’~ ~, ~~[~
By:~
Name:
Attachments :
EXHIBIT "A" :
EXHIBIT "B":
EXHIBIT "C" :
EXHIBIT "D":
Taxpayer Identification No.
(Compliance with Corp. Code 9 313 is
required if the entity o~ whose behalf
this contract is signed is a corporation.
In the alternative, a certified corporate
resolution attesting to the signatory
authority of the individuals signing in
their respective capacities is
acceptable)
SCOPE OF SERVICES/CERTIFICATE OF
CONFIDENTIALITY
GENERAL PROVISIONS
INSURANCE
NONDISCRIMINATION COMPLIANCE FORM
991102 sdI 0032271
CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF
COUNTY OF
On ~I~, /~ , 197-~, before me, the undersigned, a
Notary Public in and for said County and State, personally appeared
~.~,~.~29/’7-- ~° ~/~ ~}~-~ , personally known to
m--e ~ ~ove~ to me on the basis of satisfactory evidence to be the
person(s) whose name(s) is/~ subscribed to the within instrument
and acknowledged to me that he/~ey executed the same in
his/h~r authorized capacity(ies), and that by his/her/their
signature S) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notar’q/Public
991102 sdl 0032271
CERTIFICATE OF ACK~O~D~NT
(Civil Code ~ 1189)
On /~0~/, ~ , 19~ before me, the undersigned, a
Notary Public in and for said County and State, personally
appeared .~Do A/~ ~ /- . H ~ ~ ~l’ g {9.~, /,
personally known t~ ~e°’Or~ proved ~o me ~n- ~he basis of
satisfactory evidence to be the person(s) whose name(s) is/~-~
subscribed to the within instrument and acknowledged to me that
he!s~y executed the same in his/h~r authorized
capacity(ies), and that by his/hint/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notar~Public.[~ .........
991102 sdl 0032271
EXHIBIT A
MBIA MuniServices Company~unicipal Resource Consultants
provide services for the City of Palo Alto (City) as described herein.
(MMCiMRC) shall
A. SCOPE OF SERVICES
[ 1. SALES~SE TAX AUDIT SERVICES t
The scope of services includes, but is not limited to, MMC/MRC performing the following
tasks:
Procure a computer tape of sales/use tax permit records from the State Board of
Equalization (SBE).
Analyze sales tax distribution reports provided by the SBE for five or more of the
most recent consecutive quarters.
Clean-up, standardize and computerize data from City’s quarterly sales tax
distribution reports provided by SBE for previous quarters, current quarter and
each future quarter service is provided.
Develop and maintain a comprehensive, computerized inventory of businesses
with taxable sales that are located within Palo Alto by:
Preparing an aggregated list of business entities on electronic media; this list is
derived from multiple private and public sources (hard copy and electronic),
including specialized business listings and directories, and the City’s revenue
payment files;
Cleaning, standardizing-and integrating, in address-order, each entity’s
business name, address and payment file information, to eliminate
redundancies, using MMC/MRC’s proprietary software; and
Physically canvassing every commercial/industrial area within the City’s
borders.
¯Dun’s Database
Develop a target list of potential point-of-sale/use reporting errors/omissions
based on:
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991102 sd10032272
An electronic comparison of MMC/MRC’s comprehensive inventory
against the SBE’s quarterly distributions for the City; and
An analysis of each potentially misallo~zated account based on proprietary
guidelines established by MMC/MRC, formulated through expert
knowledge of taxable nexus criteria, corporate mergers and acquisitions,
sales tax versus use tax, business marketing organization and methods,
commercial/industrial sales tax reporting practices, and other conditions
contributing to reporting errors.
Meet with designated City official(s) to review service objectives and scope,
MMC/MRC workplan schedule, public relations and logistical matters within 30
days of contract signing. MMCiMRC will also establish an appropriate liaison
with the City’s coordinator and define logical checkpoints for reviewing the
project’s progress.
Contact personnel in sales, operations and/or tax accounting at each target
business to determine whether a point-of-sale/use reporting error exists. This shall
be accomplished with the highest regard to discretion and professional conduct.
MMC/MRC’s allocation audits shall be predicated on a non-controversial,
constructive public relations approach which emphasizes the importance of each
business to the City and the mutual benefits of correcting reporting errors. Prior
to commencing work under this contract MMC~RC shall submit to the City and
receive City’s approval for all procedures for telephonic and in-person contacts
with taxpayers, and all standard form letters used in the conduct of MMC/MRC’s
services. MMC/MRC shall provide, at the City’s request, a sales/use tax-training
seminar to enhance the City Auditor’s efforts.
When contacting the CITY regarding the above referenced items, contact should
be directed by MMC/MRC to:
The City Auditor’s Office at (650) 329-2629 for those items related to
potential revenue errors;
Either the City Manager’s Office (Economic Resources Manager) at (650)
329-2604 or Administrative Services at (650) 329-2288 for items related to
customer correspondence.
Provide to the City and SBE reports addressing each taxpayer reporting error
individually, including the business name, address, telephone number, California
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9.91102 sd10032272
sales tax permit number, individuals contacted, date(s) of contact, nature of
business,, reason(s) for error, recommended corrective procedure, sic code,
number of employees, annual sales and, if available, estimated sales/use tax
revenue which should be forthcoming to the City of Palo Alto.
MMC/MRC will also provide suggested language for letters to be sent to the
taxpayers and!or SBE from the City (or MMC/MRC on behalf of the City) urging
cooperation in promptly correcting the distribution error.
Respond to negative fmdings by SBE with timely reconfirmation documentation
in order to preserve the City’s original dates of knowledge.
Receive and process registration control record information monthly.
Receive and process sales tax distribution reports quarterly.
Coordinate with the taxpayer and SBE to make the necessary corrections and
collect eligible back quarters amounts.
Monitor and analyze the quarterly distribution reports with audit focus on the
following:
¯ Those accounts with previously reported point-of-sale/use distribution errors to
ensure that the corrections are made for current quarters and all eligible back
quarters.
¯Those major accounts comprising 90% or more of the City’s total sales tax
revenue to identify any irregularities or unusual deviations from the normal
pattern (e.g. negative fund transfers, significant decreases, unusual increases,
etc.) and ensure that the City is not receiving less revenue than it is entitled.
¯ Those accounts receiving deficiency assessments to ensure that the City
receives its local allocation.
Identify opportunities for the City to recover the local allocation on purchase
transactions subject to use tax. MMC/MRC will also prepare the necessary
documentation to facilitate recovery, including assistance in preparing and filing
the returns.
MMC/MRC shall provide to the CITY AUDITOR’S OFFICE quarterly updated status
reports to include, but not be limited to, status of work in progress, including the
following:
991102 sd10032272
Copies of reports provided to the SBE addressing each point-of sales/use
reporting error individually, including the business name, address, telephone
no., California sales tax permit number, individuals contacted, date(s) of
contact, nature of business, reason for error and recommended corrective
procedure; and
Copies of misallocation reconfirmation documentation, in response to
negative findings by the SBE, in order to preserve original date of
knowledge.
Projected sales/use tax revenue forthcoming to the City as a result of
MMC/MRC’s allocation audits, delineated according to source, timing and
one-time versus ongoing.
Actual sales/use tax produced for the City by MMC/MRC’s allocation audit
service.
Listing and status of problems encountered during the month as well as the
status of sales tax revenue generated in the City.
Outstanding issues impeding correction of misallocated accounts. For each
problem/issue identified, MMC/MRC is also to specify the implemented /
recommended action for resolution.
Alphabetical listing of all misallocated accounts detected for the City by
MMC/MRC including, for each, the permit number, correction status,
payment amount received by the City, quarter to which payment is related
and payment source (e.g., fund transfer, deficiency assessment, etc.).
MMC/MRC shall also provide this information on electronic format for use
by the City on MMC/MRC’s proprietary account tracking software.
On site review of quarterly reports.
MMC/MRC recognizes that CITY AUDITOR’S OFFICE (CAO) performs sales tax
audits and that CAO has notified the SBE of point of sale reporting errors identified
as a result of its audits. CONSULTANT is further aware that the CAO will continue
performing sales tax audits. In the absence of an agreement between the CAO and
MMC/MRC to the contrary, MMCiMRC shall not be compensated for misallocations
and other sales tax recoveries identified by the CAO. The CAO shall provide
MMC/MRC with written reports listing each business entity currently under audit,
including the business name, address, telephone number, California tax permit
number (where known) and any other pertinent information relating to the specific
taxpayer account. This information shall be provided to MMCiMRC within 30 days
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of receipt of the STARS sales tax reports and information from MMCiMRC as
described in item 2 of this scope of services. MMC/MRC shall be entitled to
compensation, as set forth in this agreement, for misallocations and other sales tax
recoveries identified from accounts, which are not identified as subject to audit by
the CAO.
I I
2. SALES TAX ANALYSIS AND REPORTING SERVICES [
MMC/MRC’s Sales Tax Analysis and Reporting Service (STARS) consists of the
STARS Query System, STARS Report, and related consulting.
Stars Query System
MMC/MRC shall install and update quarterly, the City’s sales tax.registration and
allocation data on IBM compatible PCs designated by the City. MMC/MRC shall
also train authorized City staff in the use of the STARS Query System.
The STARS Query System enables City staff to analyze the contribution of sales tax
revenue from each taxpayer in the City, on an individual, grouped, or sorted basis by
business name, business type, permit number, size ranking, street address,
development, shopping center, or other geographic area (also by. social security
number or federal employer identification number, when available).
STARS System Reports
MMC/MRC on a quarterly basis shall provide the City with an updated bound
STARS report. The scope of MMC/MRC’s STARS report includes, but is not
limited to:
Cleaning up, standardizing, and automating data from the City’s sales/use
tax distribution reports provided by SBE. for eight (8) previous quarters,
current quarter, and each future quarter of service. This is done to provide
two benchmark years in the initial report to the City. Amounts for the most
recent quarter are included in each STARS reports, but are not used for
benchmark purposes as many accounts are incomplete due to late-paying
businesses
MMC/MRC clients use STARS reports to gain a better understanding of
where their sales tax comes from, determine what trends, good or bad, are
occurring to their sales tax base, and identify those businesses on which the
jurisdiction is most dependent for its sales tax revenue
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Receiving and processing sales tax distribution reports quarterly
Reorganizing and refining the computerized sales tax data for the City
using MMC/MRC’s STARS
Analyzing the City’s major sales tax producers
All major sales tax producers and business categories are monitored and
analyzed quarterly based on the following reports:
o Management Summary, Sales Tax Digest, Charts MMC/MRC’s
STARS reports include a confidential Management Summary, a non-
confidential Sales Tax Digest, and color charts that portray graphically
the City’s sales tax performance and composition.
O Analysis Section - The Analysis Section of MMC/MRC’s STARS
reports compares the sales tax performance for the latest complete
quarter/report benchmark year to previous quarters and years. This
section, which is an exclusive MMC/MRC report, replaces
cumbersome manual comparisons between quarters and years.
The Analysis Section includes the following: (1) historical
performance of the top 100 accounts for up to 4 years, (2) a
computerized analysis of the changes that occurred by economic
category and by business sector with the specific businesses that
made the major contribution to the change delineated, and (3) an
analysis by magnitude of change indicating which key businesses
grew or declined, measured in absolute dollars and percentages.
Quarterly aberrations due to SBE audits, fund transfers, and other
causes are also identified and analyzed for budget planning and
revenue forecasting purposes.
Major (and Top 100) Sales Tax Producers - Sales tax performance of
the top 100 sales tax accounts is shown in order of sales tax
produced with the results for the most recent five quarters
prominently displayed. The proportion of City sales tax produced is
also shown by each account.
Sales Tax Accounts by Business Code - This report shows the
various business codes assigned by the SBE and the accounts
assigned those codes in order of sales tax produced. Five quarters of
sales tax data are shown for each account. The City may select the
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o
o
O
O
cut-off level of t~s report (that is, all accounts or just accounts that
produce over a certain amount per year). Misclassified sales tax
accounts are corrected to make the report a true reflection of the
sources of the City’s sales tax income.
Sales Tax Trend Report - Data is summarized by economic category
and by business sector making up each category. Sales tax trends
are shown by qu .after and by successive benchmark years. Percent
of sales tax is also shown to indicate trends in sales tax composition
as well as performance. Growth and decline comparisons are
indicated by various categories for forecasting and analysis.
Sales Tax by Account/Sub-Number - The SBE does not provide
specific sales tax amounts generated by individual location of a firm
with multiple locations in the same City and County. Such a
breakdown is needed if the City is to track sales tax by specific geo-
areas, such as shopping centers, business districts, and industrial
parks. STARS allocates sales tax by location and even customizes
difficult allocations such as auto dealers with showrooms, leasing,
used cars, and body repair shops. This report shows the amounts
allocated to each individual location for a firm with multiple
locations in the City and County.
Geo-Coding - Tracks sales tax performance within designated areas
of the City (for example, key shopping centers, and downtown
business districts). Charts and printed reports are included for each
geo-area.
Cross Reference Reports - These reports allow the user to look up
any account shown in the STARS reports by name, address or
account number.
Special Business Tax Report - MMC/MRC’s STARS reports include
a report that is specifically designed to facilitate the City’s business
license tax administration by replacing the manual yellow
registration control cards and/or the registration diskette(s).
The cards come in no particular order and are cumbersome to use.
The diskettes are hard to use due to non-standard address fields and
business names and require staff time to produce the list of sales tax
permit registration changes. MMC/MRC produces a printed report
quarterly that lists all changes to the City’s sales tax records by the
12
991102 sdl 0032272
o
type of change (i.e., new firms, closed firms, new addresses, new
owners, other). Under each type of change are the accounts in clean
address order.
By correcting, cleaning up, and standardizing addresses, business
names and business classifications on all of the City’s sales tax
generators, MMCiMRC is able to provide the City’s business license
staff with another valuable audit tool. MMC/MRC will also provide
the City with a copy of the cleaned up sales tax files on floppy disk
or 9-track tape if the City wishes to add the data to its database.
Corollary_ Information Services - In addition to the STARS report,
MMC/MRC provides as a part of the information service, a quarterly
updated sales tax forecast for the current and subsequent fiscal year,
regional per capita analysis reports, and the MMC/MRC Insights,
which contains valuable economic analysis on a regional and
countywide basis plus current issues of interest.
Corollary Consulting
In conjunction with the STARS Query System and STARS reports described above,
MMCiMRC shall provide corollary consulting as requested by the City as follows:
Prepare and analyze a list of the City’s major sales tax generators to assist
the City in developing a public relations program to prevent the loss of
these important businesses
Profile for Economic Development personnel, the most economically
desirable and undesirable types of developments or business uses and the
reasons why
Assist in defming specific geographic areas for which the City would have
an interest in knowing the sales tax produced
Serve 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, and any other
areas
13
991102 sd10032272
Deliverables and Timing
MMC/MRC shall commence preparing the STARS Query System and STARS
Digest within 10 working days following receipt of:
Contract approval and resolution designating MMC/MRC as the authorized
City Consultant to examine sales and use tax records; and,
State Board of Equalization quarterly distribution reports for most recent
nine (9) consecutive quarters
The initial STARS Query System shall be delivered and installed on IBM compatible
PCs designated by the City, together with the STARS Digest, within 45 working
days following receipt of the above. The quarterly updated Query System and
STARS Digests will be delivered to the City within 30 working days following
receipt of the Quarterly Distribution Reports.
MMC/MRC will provide corollary consulting to the City in conjunction with
delivery of the STARS Query System and STARS Digests following completion of
the enhancement audits.
3.BUSINESS COOPERATION PROGRAM
MMC/MRC may be asked to support the City of Palo Alto with a Business
Cooperation Program (BCP), which will be designed by the City in conjunction with
MMC/MRC. Business cooperation involves working closely with City staff to
develop and implement public relations programs to explore with businesses located
in Palo Alto opportunities to enhance revenue without creating additional tax
liability, through the modification of operations or administrative procedures.
MMC/MRC’s Business Cooperation Program results in the City realizing additional
sales/use tax revenue and developing improved relationships with the business
community. MMCiMRC’s BCP staff possesses thorough knowledge and
understanding of private sector tax issues, with the expertise necessary to analyze
existing methodologies and develop compatible methodologies necessary to
implement changes beneficial to the City and its business community. In all cases,
the CITY Manager’s Office (Economic Resources Manager) shall initiate any
business cooperation efforts and shall approve any outreach strategies suggested by
MMC/MRC. Benchmarks will be established, and any milestones will be measured
14
991102 sdl 0032272
on a yearly basis.
agreement.
MMC/MRC’s participation in the City’s BCP will be upon mutual
4. PROPERTY TAX INFORMATION
Query System
Following the first availability of the Equalized Roll for a fiscal year, from the
County of Santa Clara, each year by November 30, if county data is available in a
timely manner, MMC/MRC will deliver to the City an assessed valuation database of
secured, unsecured and SBE parcels that constitute the City. The database is in the
form of a query system that will facilitate the extraction, sorting, and output of
information by the user. The database is called Property Tax Analysis and Reporting
Service (PTARS). The Query system and database will:
[] Allow the user to access data pertaining to the City.
Allow access to data in terms of user defined threshold assessed values. (e.g.,
properties with assessed values above $1 million, or properties with assessed
values below $200,000, etc.).
Provide listing of the top secured and unsecured property taxpayers (by levy
only) both for discrete assessments and as combined assessments of owners
showing multiple ownership throughout the City. Actual tax
payment/delinquency information is not available until the July of the following
fiscal year.
[] Provide listed information on secured property transfers in the jurisdiction in the
preceding lien year.
[] Allow the user to access data by property owner, sims address or parcel number.
Where possible, indicate the prior year assessed value, sale history and County
use code. Availability of this feature is dependent on the quality of data
provided by the County.
Provide information on properties that have not been reassessed at their market
value since the enactment of Proposition 13, with each record showing
information such as sims address, assessed value and county use code. This data
will also include parcels that have not changed ownership since the enactment of
Proposition 13.
15
991102 sd10032272
Provide comparisons of parcels and their aggregations by county-use code
designation and, where possible, such comparisons will be graphically
demonstrated.
Incorporate electronic data received from the building permit department and
identify parcels with new construction activity. MMC/MRC will provide data as
required by the City for the completion of Proposition 4 and Proposition 111
State Appropriation Limit calculations.
Provide listing of multiple owned parcels.
[] Provide listing of absentee owner parcels.
The query system and database will be updated quarterly to reflect: changes in
ownership; new mailing addresses; document numbers filed for sales transactions;
and where available, a verified sales price of transfers. Annually the system and
database will be updated for valuation data from the Assessor’s certified roll.
Reports
Included in the PTARS Service, MMC/MRC will provide reports containing the
following information at the designated frequency of:
Annually (by February 1 of each year)
The standard annually updated property tax reports include but are not limited to
the following for the City:
[]Assessed value summaries by assessment category
[]Assessed value gains and declines by assessment category
[]Summary of significant assessment changes (prior year)
[]Summary of assessed valuation by land use
[]Historical growth of assessed valuations
[]Top 25 assessments/tax revenue generators
[]Top 25 assessments/tax revenue generators by TRA
[]Top 25 assessments by assessment category
[]Significant assessment exemptions
[]Significant property tax valuation changes (current/prior year)
[]Property tax revenues by TRA
[]Top 25 property tax revenue changes (current/prior year)
16
991102 sdi0032272
Proposition 13 ownership analysis property ownership transfers since the last
lien date.
Listing of non-owner occupied parcels.
Quarterly
Property tax assessment appeals filed with the Santa Clara County Assessment
Appeals Board. The report will be based on information received from the
County, and will include: the appellant’s name, years elapsed since prior sale:
comparison of the assessed value and the requested value; county use code;
the person/division of the Assessor’s office reviewing the appeal, the
scheduled date of the Appeals Board Hearing and other information pertinent
to assessment appeals that will assist City staff to estimate future impacts on
property tax.
Appeals Board Decision Data
A listing of property transfers that have occurred within the jurisdiction of the
City, providing in the report the owner, situs address, prior and current
assessed value, as available from the County assessor and other reliable real
estate information sources.
list of all City owned properties in the City and the street boundaries, based
on boundary information provided by the City
At the City’s Request
Analyses based on geographic area designated by the City to include estimates on
development valuation for use of community development planning.
B. CERTIFICATION OF 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
or county may authorize persons other than officers and employees to examine State
Sales and Use Tax records.
MMCiMRC i~ 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.
17
991102 sd10032272
MMC/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.
MMC/MRC is prohibited from performing consulting services for a retailer
during the term of this Agreement.
MMC/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.
The resolution shall designate MMC/MRC 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.
18
991102 sd10032272
EXHIBIT B
GENERAL PROVISIONS
SECTION 1 - QUALIFICATIONS, STATUS, AND DUTIES OF
CONTRACTOR
I.i In reliance on the representation and warrantyset
forth in Section 1.4, CITY hires CONTRACTOR to perform,and
CONTRACTOR covenants and agrees that it wil! furnish or cause tobe
furnished, the Services.
1.2 Time. Consultant shall devote such time tothe
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.
1.3 Licenses, Permits, Etc. Consultant represents and
warrants to City that it has all licenses, permits, qualifications
and approvals of whatsoever nature which are legally required for
Consultant to practice its profession. Consultant represents and
warrants to City that Consultant shall, at its 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 profession.
1.4 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/her profession. Al!
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.
1.5 CONTRACTOR will assign John Austin as the project
director to have supervisory responsibility for the performance,
progress, and execution of the Services. If circumstances or
conditions subsequent to the execution of this Contract cause the
substitution of the project director for any reason, the
appointment of a substitute project director will be subject to the
prior written approval of the project manager.
991102 sd10032211 18
1.6 CONTRACTOR represents and warrants that it will:
1.6.1 Procure all permits and licenses, pay all charges
and fees, and give all notices which may be necessary and incident
to the due and lawful prosecution of the Services;
1.6.2 Keep itself fully informed of all existing and
future Federal, State of California, and local laws, ordinances,
regulations, orders, and decrees which may affect those engaged or
employed under this Contract, any materials used in CONTRACTOR’s
performance under this Contract, or the performance of the
Services;
1.6.3 At all times observe and comply with, and cause
its employees and contractors (and consultants), if any, who are
assigned to the performance of this Contract to observe and comply
with, the laws, ordinances, regulations, orders and decrees
mentioned above; and
1.6.4 Will report immediately to the project manager,
in writing, any discrepancy or inconsistency it discovers in the
laws, ordinances, regulations, orders, and decrees mentioned above
in relation to any plans, drawings, specifications or provisions of
this Contract.
1.7 Any reports, information, data or other material
given to, or prepared or assembled by, CONTRACTOR or its
contractors, if any, under this Contract will become the property
of CITY and will not be made available to any individual or
organization by CONTRACTOR or its contractors, if any, without the
prior written approval of the city manager.
1.8 CONTRACTOR will provide CITY with two (2) copies of
each report, if any, which may be required under this Contract,
upon completion and acceptance of such reports by CITY.
1.9 If CITY requests additional copies of reports,
drawings, specifications or any other material which CONTRACTOR is
required to furnish in limited quantities in the performance of
the Services, CONTRACTOR will provide such additional copies and
CITY will compensate CONTRACTOR for its duplication costs.
i. I0 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.
991102 sd10032211 19
SECTION 2 -DUTIES 0F..........CI.T~
2.1 CITY will furnish or cause to be furnished the
specified services set forth in Exhibit ~A" and such other
information regarding its requirements as may be reasonably
requested by CONTRACTOR.
2.2 The city manager will represent CITY for all
purposes under this Contract. Joe Saccio is designated as the
project manager for the city manager. The project manager wil!
supervise the performance, progress, and execution of the Services.
2.3 If CITY observes or otherwise becomes aware of any
default in the performance of CONTRACTOR, CITY will use reasonable
efforts to give written notice thereof to CONTRACTOR in a timely
manner.
SECTION 3 -INSURANCE
3.1 CONTRACTOR, at its sole cost and expense, will
obtain and maintain, in full force and effect during the term of
this Contract, the insurance coverage described in Exhibit "C",
insuring not only CONTRACTOR and its contractors, if any, but also,
with the exception of workers’ compensation, employer’s liability,
and professional liability insurance, naming CITY as an additional
insured concerning CONTRACTOR’s performance under this Contract.
3.2 All insurance coverage required hereunder will be
provided through carriers with Best’s Key Raking Guide ratings of
A:VII or higher which are admitted to transact insurance business
in the State of California. Any and all contractors of CONTRACTOR
retained to perform Services under this Contract will obtain and
maintain, in full force and effect during the term of this
Contract, identical insurance coverage, naming CITY as an
additional insured under such policies as required above.
3.3 Certificates of such insurance, preferably on the
forms provided by CITY, will be filed with CITY concurrently with
the execution of this Contract. The certificates will be subject
to the approval of CITY’s risk manager and will contain an
endorsement stating that the insurance is primary coverage and will
not be canceled or altered by the insurer except after filing with
CITY’s city clerk thirty (30) days’ prior written notice of such
cancellation or alteration, and that the City of Palo Alto is named
as an additiona! insured except in policies of workers’
compensation, employer’s liability, and professional liability
insurance. Current certificates of such insurance wil! be kept on
file at all times during the term of this Contract with the city
clerk.
991102 sdl 0032211 20
3.4 The procuring of such required policy or policies of
insurance will not be construed to limit CONTRACTOR’s liability
hereunder nor to.fulfil! the indemnification provisions of this
Contract. Notwithstanding the policy or policies of insurance,
CONTRACTOR will be obligated .for the full and total amount of any
damage, injury, or loss caused by or directly arising as a result
of the Services performed under this Contract, including such
damage, injury, ~or loss arising after the Contract is terminated or
the term has expired. _
SECTION 4 WORKERS’ COMPENSATION
4.1 CONTRACTOR, by executing this Contract, certifies
that it is aware of the provisions of the Labor Code of the State
of California which require every employer to be insured against
liability for workers’ compensation or to undertake self-insurance
in accordance with the provisions of that Code, and certifies that
it wil! comply with such provisions, as applicable, before
commencing the performance of the Services.
SECTION 5 -ASSIGNMENT
5.1 This Contract is for the personal services of
CONTRACTOR, therefore, CONTRACTOR will not assign, transfer,
convey, or otherwise dispose of this Contract or any right, title
or interest in or to the same or any part thereof without the prior
written consent of CITY. A consent to one assignment will not be
deemed to be a consent to any subsequent assignment. Any
assignment made without the approval of the city manager will be
void and, at the option of the city manager, this Contract may be
terminated. This Contract will not be assignable by operation of
law.
SECTION 6 -
SERVICES
TERMINATION OR SUSPENSION OF CONTRACT OR
6.1 This Agreement may terminate on thirty (30) 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. Termination shall not
affect the payment of any compens@tion due MRC for additional
revenues reasonably substantiated by MRC at the effective date of
termination. Services performed by MRC prior to termination may
result in CITY’S receipt of revenue after termination. This
receipt of revenue entitles MRC to payment from CITY even after
expiration of contract or termination. CITY agrees to provide to
MRC after expiration or termination of this Agreement such
information as is necessary ’to enable MRC to calculate the
compensation due to MRC as a result of said receipt of revenue and
MRC shall maintain the confidentiality of this information. In
light of Revenue and Taxation Code Section 7056, MRC shall be
991102 sd10032211 21
deemed "under contract" after expiration of contract or receipt of
notice of termination from the CITY for the sole and limited
purpose of enabling MRC to have access to said information to
calculate compensation.
SECTION 7 -INDEMNITY
7.1 CONTRACTOR agrees to protect, indemnify, defend and
hold harmless CITY, its Council members, officers, employees and
agents from any and all demands, claims, or liability of any
nature, including death or injury to any person, property damage or
any other loss, caused by or arising out of CONTRACTOR’s, its
officers’, agents’, subcontractors’ or employees’ negligent acts,
errors, or omissions, or willfu! misconduct, or conduct for which
applicable law may impose strict liability on CONTRACTOR in the
performance of or failure to perform its obligations under this
Contract.
SECTION 8 -WAIVERS
8.1 The waiver by either party of any breach or
violation of any covenant, term, condition or provision of this
Contract, or of the provisions of any ordinance or law, will not be
deemed to be a waiver of any other term, covenant, condition,
provisions, ordinance or law, or of any subsequent breach or
violation of the same or of any other term, covenant, condition,
provision, ordinance or law. The subsequent acceptance by either
party of any fee or other money which may become due hereunder will
not be deemed to be a waiver of any preceding breach or violation
by the other party of any term, covenant, condition or provision of
this Contract or of any applicable law or ordinance.
8.2 No payment, partial payment, acceptance, or partial
acceptance by CITY will operate as a waiver on the part of CITY of
any of its rights under this Contract.
SECTION 9 -NONDISCRIMINATION
9.1 As set forth in the Palo Alto Municipal Code, no
discrimination will be made in the employment of any person under
this Contract because of the age, race, color, national origin,
ancestry, religion, disability, sexual preference or gender of that
person. If the value of this Contract is, or may be, five thousand
dollars ($5,000) or more, CONTRACTOR agrees to meet all
requirements of the Palo Alto Municipal Code pertaining to
nondiscrimination in employment, including completing the requisite
form furnished by CITY and set forth in Exhibit "D".
9.2 CONTRACTOR agrees that each contract for services
with an independent provider will contain a provision substantially
as follows:
991102 sd10032211 22
"[Name of Provider] will provide CONTRACTOR with a
certificate stating that [Name of Provider] is currently
in compliance with all Federal and State of California
laws covering nondiscrimination in employment; and that
[Name of Provider] will not discriminate in the
employment of any person under this contract because of
the age, race, color, national origin, ancestry,
religion, disability, sexual preference or gender of such
person."
9.3 If CONTRACTOR is found in violation of the
nondiscrimination provisions of the State of California Fair
Employment Practices Act or similar provisions of Federal law or
executive order in the performance of this Contract, it will be in
default of this Contract. Thereupon, CITY wil! have the power to
cancel or suspend this Contract, in whole or in part, or to deduct
the sum of twenty-five dollars ($25) for each person for each
calendar day during which such person was subjected to acts of
discrimination, as damages for breach of contract, or both. Only
a finding of the State of California Fair Employment Practices
Commission or the equivalent federal agency or officer will
constitute evidence of a breach of this Contract.
9.4 If CONTRACTOR is in default of the nondiscrimination
provisions of this Contract, CONTRACTOR will be found in material
breach of this Contract. Thereupon, CITY will have the power to
cancel or suspend this Contract, in whole or in part, or to deduct
from the amount payable to CONTRACTOR the sum of two hundred fifty
dollars ($250) for each calendar day during which CONTRACTOR is not
in compliance with this provision as damages for breach of
contract, or both.
SECTION I0 - NOTICE
I0.i 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 by certified mail and
addressed as follows:
To City:Director of Administrative Services
CITY OF PALO ALTO
250 Hamilton Avenue
Palo Alto, CA 94301
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.
991102 sd10032211 23
SECTION II -CONFLICT,,,,,,,OF,,,,IN~EREST
II.i In accepting this Contract, CONTRACTOR covenants
that it presently has no interest, and will not acquire any
interest, direct or indirect, financial or otherwise, which would
conflict in any manner or degree with the performance of the
Services.
11.2 CONTRACTOR further covenants that, in the
performance of this Contract, it will not employ any contractor or
person having such an interest. CONTRACTOR certifies that no
person who has or will have any financial interest under this
Contract is an officer or employee of CITY; this provision will be
interpreted in accordance with the applicable provisions of the
Palo Alto Municipal Code and the Government Code of the State of
California.
SECTION 12 -MISCELLANEOUS PROVIS,IONS
12.1 Lggal Interpretations. For purposes of this
Agreement the City Attorney’s opinion concerning the interpretation
of local ordinances and the lega! rights, duties and obligations of
the City regarding collection of taxes under State and local law
shall be controlling.
12.2 City’s Determination Final. Whenever the City
Council or a City Officer is empowered under State or local
ordinance to make a determination as to whether or not a tax
assessed against a taxpayer is due for purposes of this agreement
that determination shall be final and binding on the parties
hereto.
12.3 Confidentiality. Consultant agrees that it shall
keep all information it receives concerning City taxpayers
confidential and that it shall not use this information for any
purpose other than as expressly provided in this Agreement or
otherwise expressly consented to by City.
12.4 Dispute Resolution. Any dispute arising under this
Agreement must first be submitted to non-binding arbitration before
either party may pursue any other legal remedy. Any awarded
damages shall not exceed the higher of: I) the administrative fee
for the remaining contract term; or, ii) 25% of the demonstrated
additional recovered revenues for twelve quarters that resulted
from the compliance activities described herein,less any
administrative fees paid to MRC under the Agreement.
12.5 In the event that an action is brought, the parties
agree that trial of such action will be vested exclusively in the
state courts of California or in the United States District Court
for the Northern District of California in the County of Santa
Clara, State of California.
991102 sdl 0032211 24
12.6 Attorney’s Fees and Costs. The prevailing party in
any action brought to enforce the provisions of this Contract may
recover its reasonable costs and attorneys’ fees expended in
connection with that action.
12.7 Whole and Entire Agreement. This instrument
contains the whole and entire agreement of the parties hereto and
correctly sets forth the rights, duties and obligations of each to
the others as of its date. Any prior agreements, promises,
negotiations or representations not expressly set forth in this
Agreement are of no force and effect.
12.8 All provisions of this Contract, whether covenants
or conditions, will be deemed to be both covenants and conditions.
12.9 The covenants, terms, conditions and provisions of
this Contract will apply to, and will bind, the heirs, successors,
executors, administrators, assignees, and contractors, as the case
may be, of the parties.
12.10 If a court of competent jurisdiction finds or
rules that any provision of this Contract or any amendment thereto
is void or unenforceable, the unaffected provisions of this
Contract and any amendments thereto will remain in full force and
effect.
12.11 All exhibits referred to in this Contract and
any addenda, appendices, attachments, and schedules which, from
time to time, may be referred to in any duly executed amendment
hereto are by such reference incorporated in this Contract and will
be deemed to be a part of this Contract.
12.12 This Contract may be executed in any number of
counterparts, each of which will be an original, but al! of which
together will constitute one and the same instrument.
12.13 This Contract is subject to the fiscal provisions
of the Charter of the City of Palo Alto and the Palo Alto Municipal
Code. This Contract will terminate without any penalty (a) at the
end of any fiscal year in the event that funds are not appropriated
for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of
the fiscal year and funds for this Contract are no longer
available. This Section 12.13 shall take precedence in the event
of a conflict with any other covenant, term, condition, or
provision of this Contract.
991102 sd10032211 25
J&H MARSH & MCLENNAN OF CONNECTICUT. INC.
FOUR STAMFORO PLAZA
107 ELM STREET. 6TH FLOOR
STAMFORD. CT 06902
"JESSICA SIRICO (203) 964-2686
INSURED
MUNICIPAL RESOURCE CONSULTANTS
32107 W. LINDERO CANYON RO.
SUITE 233
WESTLAKE VILLAGE. CAATTN: PAM KEVAN 91361
DATE
12/23
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMAl
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATHOLDER. THIS CERTIFICATE DOES NOT AMEND,EXTEND ORALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW,
COMPANIES AFFORDING COVERAGE
COMPANY
!A GREAT NORTHERN INS CO
t COMPANY "
I B PACIFIC INDEMNITY CO
i COMPANYIc
I COMPANY
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE :OR THE POLICY ;-;OD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WIIICF HISCERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL TIlE T£EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEhl REDUCED BY PAID CLAIMS.
LTR TYPE OF INSURANCE
A } GENERAL LIABILITY
X~’I COMMERCIAL GENERAL LIABILITY
~_~OMOBILE LIABILITYI ANY AUTO~_~ ALL OWNED AUTOSSCHEDULED AUTOS
L_~ HIRED AUTOS
I
i:.___~ N 0 N-OW NED AUTOS
GARAGE LIABILITY
~ANY AUTO
POLICY NUMBER LIMITS
35291862
73186088
71608583
POLICY EFFECTIVE POLICY EXPIRATION
DATE (MM/OD/YY)DATE MM/DDfYY
12/30/98 12/30/99
12/30/98 12/30/99
12/30/9912130/98B
GENERAL AGGREGATE
PRODUCTS-COMP/OPAGG I’! 000.00C
PERSONAL & ADV INJURY tS ]. 0C3. OOC
~Ac~ occu~Nc~1’J. Ogg. OCC
FIRE DAMAGE IAny one fire)I
MED Ex~ ~A~y on, ~=,=o~
I
COMBINED SINGLE LIMIT
BODILY INJURY
(Pe~ person)
BODILY INJURY
{Pe~ accident)
PROPERTYDAMAGE
AUTO ONLY - EA ACCIDENT
OTHER THAN AUTO ONLY:
~ ~=~;.~.::~-{ f, :
"
EACH ACCIDENT
AGGREGATE
EACH OCCURRENCE
AGGREGATE
EL EACH ACCIDENT
IEL DISEASE- POLICY LIMIT
EL DISEASE- EA EMPLOYEE
73186088 12/30/98 12130199 COLLISION: $1000
CCAF: $1000
~_~_~:SS LIABILITYMBRELLA FORM
[’-~ OTHER THAN UMBRELLA FORM
WORKER’S COMPENSATION AND
EMPLOYERS" LIABILITY
’THE PROPRIETOR/~INCL
PARTNERS/EXECUTIVE
OFFICERS ARE:i I EXCL
OTHER
AUTO DEDUCTIBLES:
DESCRIPTION OF OPERATIONS/LOCATIONS/’VEHICLEB/SPECIAL ITEMS ILIMITS MAY BESUBJECT TO DEDUCTIBLES OR RETENTIONSI.
THE CITY OF PALO ALTO. ITS AGENTS. OFFICERS. SERVANTS AND EMPLOYEES ARE NAilED AS ADDITIONAL INSUREDS WITH RESPECT TO THE 6~E-L:T!O,%
AND WORK PERFORMED BY THE NAMED INSURED AS REQUIRED BY CONTRACT.
CERTIFICATE HOLDER
CITY OF PALO ALTO
A~N. JOSEPH SATCHIO
SENIOR FL~NCIAL ANALYST
P.O. BOX 1O250
PALO ALTO CA 94303
(~ 10 DAYS FOR NON-PAYMENT) HOLDER COPY
EXHIBIT
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL ENDEAVOR TO MAIL
30 * DAYS WRITTEN NOTICE TO THE CERT|FtCATE HOLDER NAMED TO THE LEFT.
BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABiLiTY
OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTS.TIMES
AUTHORIZED REPRESENTATIVE
.~
..... -:.-.e ACORD’COR~ORAilON ~995
CERTIFICATE NO.006004-00!~ ~-C
III
STARS
Sales Tax Analysis and Reporting Service
Post-Audit Information Service with
Advanced Query Functions, Graphing,
and Geocoding Capability
Comprehensive, Up-to-Date Sales Tax Database
Preserve and Enhance Revenue Base and Services
Develop and Implement Economic Development Strategies
Target Business Retention, Expansi6n, and Attraction
Identify Key Industries and Land Uses
Develop Revenue Productivity Profiles
Municipal Resource Consultants ~ 32107 West Lindero Canyon Road, Suite 233 - Westlake Village, California, 91361
(800) 247 - 4406 ~ mrcinfo@mrc-usa.com
Westlake Village, California ¯ Atlanta, Georgia ¯ Armonk, New York
The STARS database an~l software provides a comprehensive picture of a
jurisdiction’s sales tax generation. Users can also see the City’s major generators of
sales tax for a current period, along with location and historical data.
STARS allows users to review detailed
sales tax revenue data by
specific business name r~ buildTng address
D address range
STARS assigns every business to an
economic category or industry
classification. This allows users to
develop queries by economic type.
STARS allows users to easily establish
customized geo-areas for analysis of
special districts, project areas, industrial
parks, or neighborhoods.
STARS analytical reports allow users to compare businesses with their economic
segments and jurisdiction-wide statistics.
At a glance, users can see relative strengths and weaknesses of specific
businesses and economic segments.
STARS Digest
The printed STARS Digest accompanying each quarterly database update includes:
MANAGEMENT SUMMARY WITH CHARTS
Includes statewide trends that may affect the jurisdiction’s sales tax, plus a
specific analysis of the jurisdiction’s sales tax composition, changes and
performance.
ANALYSIS SECTION
Historical performance of the top accounts comparing current benchmark year
ranking and sales tax produced with that of prior years;
Changes that occurred by economic category and by business sector with the
specific businesses that made the major contribution to the change delineated;
and
Key businesses that expanded or declined, measured in absolute dollars and
percentages.
MAJOR SALES TAX PRODUCERS
Sales tax performance of the jurisdiction’s major sales tax accounts is shown in
order of sales tax produced with the results for the most recent prior time periods.
SALES TAX TRENDS
Data is summarized by economic category and by business sector making up
each category. Sales tax trends are shown historically. Growth and decline
comparisons are indicated by various categories for forecasting and analysis.
Please contact Municipal Resource Consultants at (800) 247-4406, or by e-mail at
mrcinfo@mrc-usa.com, for additional information.
P sou c co st ,, rs
~ An MBIA MuniServices Company
Municipal Resource Consultants ~ 32107 West Lindero Canyon Road, Suite 233 ~ Westlake Village, California, 91361
(800) 247--4406 ~ mrcinfo@mrc-usa.com
Westlake Village, California ¯ Atlanta, Georgia ¯ Armortk, New York
!11
GRIP
Geobased Revenue Information Program Service
Comprehensive Relational Database
Leading-Edge Decision Support System for Local Government
Administrators, Economic Development Directors, Finance
Directors, Revenue Managers and Planners
[]All Major Sources of General Revenue
[]Preserve and Enhance Revenue Base and Services
[]Budgeting and Revenue Projections
[]Fiscal and Economic Impact Analysis
[]Develop and Implement Economic Development Strategies
[]Target Business Retention, Expansion, and Attraction
[]Development/Land Use Revenue Profiles
[]Identify Key Industries/Land Uses
,4~Rc MUNICIPAL RESOtrRCE CONSULTANTS
An MBIA MuniServices Company
Municipal Resource Consultants ~ 32107 West Lindero Canyon Road, Suite 233 ~ Westlake Village, California, 91361
(800) 247 - 4406 ~ mrcinfo@mrc-usa.com
Westlake Village, California ¯ Atlanta, Georgia ¯ Armonk, New York
GRIP DATABASE AND QUERY SYSTEM
GRIP provides each client jurisdiction with standardized, integrated and updated data on all
key revenue sources and revenue generating entities in a single unified database. The
GRIP database encompasses:
The land parcels, addresses, major buildings, and users (commercial, industrial,
institutional, governmental, residential) located within the jurisdiction’s
boundaries; and
The major sources of general fund revenue such as:
¯Business Tax ¯Utility Tax
¯Property Tax ¯State Subventions
¯Sales/Use Tax ¯Franchise Fees
¯Hotel Tax
MRC’s GRIP Query System software enables jurisdictions, to analyze the contribution of
revenue by individual business, assessor parcel, address, business types, or user defined
geographic areas.
GRIP allows users to quickly construct data filters using a
variety of criteria in a wide range of combinations. Data
filters may be defined for:
r~ Revenue generator types (by business name,
assessor parcel, or address)
[] Revenue sources (by dollars as well as revenue
rank)
[] Revenue category (based upon SIC industrial
classifications
[] User-defined geo-areas (by address ranges
contained within a specified geographic area of
interest, such as a redevelopment area, central
business district, industrial park, or development
project)
[]Physical presence data (such as employee counts,
parcel square footage)
GRIP allows users to analyze data by
r~ individual location
a aggregate entity
r~ assessor parcel
combined or specific revenue sources
dollar ranges
revenue rankings
user-defined geographic area business type
PRINTED GRIP DIGESTS
MRC’s printed GRIP Digests enable
users to answer questions, such as:
[]How is the jurisdiction’s
economic base performing
in terms of revenue
generation?
[]Where is the jurisdiction’s
tax revenue coming from?
[]Upon which businesses is
the jurisdiction most
dependent for its tax
revenue?
Which business types are
the most economically
desirable/undesirable?
MAPPING MODULE AND GIS INTERFACE
GRIP allows users to interface with GIS
systems to graphically visualize the
economic landscape.
Please contact Municipal Resource Consultants at (800) 247-4406, or by e-mail at
mrcinfo@mrc-usa.com, for additional information.
,4~Rc MUNICIPAL RESOtrRO~ CONSULTANTS
An MBLA MuniServices Company
Municipal Resource Consultants - 32107 West Lindero Canyon Road, Suite 233 ~ West.lake Village, California, 91361
(800) 247 - 4406 ~ mrcinfo@mrc-usa_com
Westlake Village, California ¯ Atlanta, Georgia ¯ Armonk, New York
LLJ
PTARS
Property Tax Analysis and Reporting Service
Map Driven Query System with
Simple & Advanced Query Functions
Comprehensive Database of
Property Tax and Tax Increment Information for
Local Governments and Redevelopment Agencies
[]Assessed Value & Property Taxes
[]Tax Increment & Receipts Analysis
[]Assessment Appeals Information
[] Brownfield Analysis & Assistance
[] Prepared Reports & Analyses
,4~Rc MUNICIPAL RESOURCE CONSULTANTSAn MBIA MuniServices Company
Municipal Resource Consultants ~ 32107 West Lindero Canyon Road, Suite 233 ~ Westlake Village, California, 91361
(800) 247 - 4406 - mrcinfo@mrc-us~.com
Westlake Village, California ¯ Atlanta, Georgia ¯ Armonk, New York
PROPERTY TAX INFORMATION SERVICE
PTARS is a revenue information service that provides current year property tax revenue
on a historical basis. This map-driven, interactive query and analysis program provides
comprehensive property tax information and powerful analytical tools for modeling
property tax revenue.
PTARS allows the user to analyze assessed values, levy and receipts estimations,
pass-through payments, and debt loads. The user may monitor, review, and analyze
comprehensive property tax data, assessed values, location and geo-based areas, and
regularly updated revenue and appeal data.
PTARS DATABASE AND QUERY SYSTEM
PTARS allows users to quickly
construct query data filters by
[] Jurisdiction
[] tax rate area
[] type of property tax
[] land use
[] assessed value
[] owner names
[] street names
[] assessor parcel number
Query results are returned by
parcel list
color-coded parcel
for GIS capability
maps
Query results are summarized
by
r~ tax rate area
~] assessed value detail
Summary and individual data
can be displayed by
color charts and graphs
Summary and individual
can also be displayed by
Single-record detail
data
PTARS special functions allow clients to generate ’~Nhat-if?" scenarios for property tax
and tax increment revenues to support policy formulation, managerial decision-making,
debt issues, Brownfields policy, and a wide range of other property tax-related issues.
WHO USES PTARS?
PTARS is designed for local government management and staff, including finance
directors of cities, counties, and school districts, redevelopment agency project
managers, revenue managers of service districts and business development managers
of economic development corporations.
Please contact Municipal Resource Consultants at (800) 247-4406, or by e-mail at
mrcinfo@mrc-usa.com, for additional information.
~I~Rc MUNICIPAL RESOURCE CONSULTANTSAn MBIA MuniServices Company
Municipal Resource Consultants ~ 32107 West Lindero Canyon Road, Suite 233 ~ Westlake Village, California, 91361
(800) 247 - 4406 ~ mreinfo@mre-usa.eom
Westlake Village, California ¯ Atlanta, Georgia ¯ Armonk, New York
RESOLUTION NO.
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
AUTHORIZING THE EXAMINATION OF SALES AND USE TAX
RECORDS
WHEREAS, pursuant to Ordinance No. 2756, the City of Palo
Alto ("City") entered into Contract No. 856 entitled "Agreement for
State Administration of Local Sales and Use Taxes" with the State
Board of Equalization ("Board"), whereby the Board is to perform
all functions incident to the administration and collection of
local sales and use taxes under the authority of the Bradley-Burns
Uniform Local Sales and Use Tax Law, California Revenue and
Taxation Code ("Code") Section 7200 e__~t s_9_q., for and on behalf of
the City; and
WHEREAS, pursuant to Resolution No[ 6336, the Council of
the City ("City Council") appointed the City Auditor and the City
Manager, and any designated representative of such officers to
represent the City with full authority to investigate and review
sales and use tax transactions and collections for the City
contained in the records of the Board; and
WHEREAS, Section 7056 of the Code requires that the City,
by resolution, designate any City officer or employee or any other
person to examine any and all of the sales and use tax records of
the Board pertaining to sales and use taxes collected for and on
behalf of the City; and
WHEREAS, the City Council has approved a contract with MBIA
MuniServices Company/Municipa! Resource Consultants ("Consultant")
to perform sales and use tax audit services ("Contract"); and the
Council wishes to designate MBIA MuniServices Company/Municipal
Resource Consultants to examine such sales and use tax records
maintained by the Board on behalf of the City;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
.~ECTION i. In accordance with the scope of sale and use
tax audit services to be provided by Consultant, MBIA MuniServices
Company/Municipal Resource Consultants, is hereby designated as the
representative of the City as required by Section 7056 of the Code,
and is authorized to examine all Of the sales and use tax records
of the Board pertaining to sales and use taxes collected by the
Board on behalf of the City which are in the City’s possession.
SECTION 2. Pursuant to California Revenue and Taxation
Code Section 7056 (b), this Council hereby certifies that
Consultant meets all of the following conditions:
991102 sdl 0032206
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(a)Consultant has an existing contract with the City
to examine sales and use tax records;
(b)Consultant is required by the Contract 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 this
resolution to examine the information;
(c)Consultant is prohibited by the Contract from
performing consulting services for a retailer
during the term of the Contract; and
(d)Consultant is prohibited by the Contract from
retaining the information contained in, or derived
from, those sales and use tax records, after the
Contract has expired.
SECTION 3. The City Council finds that the action hereby
approved does not constitute a project under the California
Environmental Quality Act.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
City Clerk
APPROVED AS TO FORM:
Assistant City Attorney
Mayor
City Manager
Director of Administrative
Services
991102 sdl 0032206
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