HomeMy WebLinkAbout2001-079
."
1
RESOLUTION NO. 2001-79
2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT
3 WITH MBIA MUNISERVICES COMPANY FOR SERVICES RELATED TO UTILITY
USERS TAX AND FRANCHISE FEE REVENUES.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The Mayor of the City of San Bernardino is hereby authorized and
directed to execute on behalf of said City an Agreement MBIA MuniServices Company, a copy
of which is attached hereto, marked Exhibit "A" and incorporated herein by reference as fully
as though set forth at length.
III
III
III
.
2001-79
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT
WITH MBIA MUNISERVICES COMPANY FOR SERVICES RELATED TO UTILITY
USERS TAX AND FRANCHISE FEE REVENUES.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 The foregoing resolution is hereby approved this \ "IT'-- day of April
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and Common Council of the City of San Bernardino at a:i t. reg. meeting thereof, held on the
16thdayof April ,2001, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
ESTRADA X
-
LIEN X
X
MC GINNIS
SCHNETZ X
SUAREZ X
X
ANDERSON
MC CAMMACK X
i!c~ ~
2001.
21
22
23
24
Approved as to
25 Form and legal content:
26
JAMES F. PENMAN,
27 City ttorney
By:
28
2001-79
AGREEMENT TO PROVIDE
AUDITING, GEOCODING, AND ASSOCIATED CONSULTING SERVICES
FOR
UTILITY USERS T AX/FRANCHISE
COMPLIANCE AND REVENUE PROTECTION PROGRAM
FOR THE CITY OF SAN BERNARDINO
November 28, 2000
by
MBIA MuniServices Company
2001-79
UTILITY USERS TAX/FRANCHISE This
AGREEMENT
COMPLIANCE AND REVENUE PROTECTION PROGRAM is made at San
Bernardino,
California, as of
, 2001, by
and between the
City of San
Bernardino, a
municipal
corporation
(hereinafter
referred to as
"CITY") and
MBIA
MuniServices Company/Municipal Resource Consultants (hereinafter referred to as "MMC").
MMC agrees to provide the CITY with certain professional services in furtherance of a
comprehensive utility users tax/franchise compliance and revenue protection program (hereinafter
"PROGRAM"), with broad participation by California public agencies, that is designed to preserve,
protect, and enhance their utility users tax (UUT) and utility franchise revenues.
1. PROGRAM OBJECTIVES
MMC's auditing, geocoding, information, and associated services and skills, in conjunction
with the legal and "protective" services of the CITY's special outside counsel for the following
purpose only, Donald H. Maynor, A Professional Law Corporation (LAW FIRM), will be used
to establish and implement a PROGRAM that will allow participating California public
agencies to preserve, protect and enhance their UUT and utility franchise revenues through a
combination of auditing, geocoding, tax application compliance, business detection, ordinance
update, legislative monitoring, technology update, and other essential compliance and
protective services. An effective compliance PROGRAM will assist the CITY, and other
participating public agencies, in identifying and correcting errors/ornissions causing revenue
deficiencies, and thereby produce new or previously unrealized revenue for such participants.
The PROGRAM's tax preservation services will protect the CITY's existing UUT revenues
from erosion due to new legislation, new technologies, outdated ordinance language and
inaccurate information. By offering these essential services through a comprehensive
PROGRAM, with widespread participation, there are the additional benefits of: i) achieving
lower individual costs for such joint activities; and, ii) developing consensus-based decisions
regarding ordinance interpretations and tax implementation that utility industries require of
California public agencies.
2001-79
2. ROLE OF CLIENT EXECUTIVE COMMITTEE
A Client Executive Cornmittee (CEC) has been formed, and is made up of client public agency
representatives, to review and approve the PROGRAM's proposed work plan, and provide
general PROGRAM oversight. The CEC will also function to develop consensus positions on
tax application issues, and other matters requiring uniformity among California public agencies
with OUT ordinances. MMC will provide quarterly progress reports to the CEC and to the
CITY to establish the PROGRAM's continuing value to the CITY.
3. FIXED FEE SERVICES
A. Compliance Review Services
At any time during the term of this AGREEMENT, with the prior written consent of the
CEC, or with the prior written consent of the City where specifically indicated, MMC
may perform compliance review activity on behalf of the CITY in any of the following
areas:
1. UUT Tax Application and Franchise Fee Review: In accordance with a work
plan that has been reviewed and approved by the CEC, MMC will perform
compliance reviews of major utility providers, with a focus on common client
issues, to assure that the UUT is being properly applied to taxable services and
charges, and that the franchise fee formula is being properly applied to the
revenue base (as provided in standard franchise agreements). MMC will use the
legal expertise of LAW FIRM on matters requiring legal analysis or an
interpretation of ordinances, standard utility franchises, laws, and IRS letter
rulings, subject to coordination with the City Attorney.
2. Telecom Special Access Customers: At the option of the CITY, MMC will
assist the CITY in identifying sophisticated telecommunication users that may
be employing new telecornmunication technologies that involve taxable
telecommunication services to assure tax compliance.
3. Geocode Information and Review: MMC will develop and maintain a
proprietary address range database to assure accurate address range information
regarding the CITY's boundaries. Such databases will reflect the latest available
Local Agency Formation Commission information regarding CITY boundary
changes due to annexations or other municipal reorganizations. Upon request,
this service will be made available to any utility service provider that serves
customers within the CITY.
4. OUT Exemption Review: MMC will review for accuracy the gas, electric, and
water exemption lists and telecommunication exemption certificates for non-
residential customers, as provided by the CITY, and identify to CITY staff
possible errors. MMC will use the legal expertise of LAW FIRM on matters
requiring legal analysis or an interpretation of ordinances, laws, and IRS letter
rulings, subject to coordination with the City Attorney.
2001-79
5. UUT Business Detection: MMC will perform periodic compliance reviews of
major utility providers and utilize other detection tools to verify whether such
companies are doing business within the CITY, and then identify such possible
non-complying companies to CITY staff for enforcement actions. MMC will
assist the CITY in developing compliance correspondence and enforcement
procedures.
6. OUT Pavment Calculations and Deviations: If the CITY provides MMC with
regular and accurate OUT payment history (i.e., copies of all UUT remittances),
MMC will identify to CITY staff possible gaps in payments, calculation
mistakes, and other payment errors. MMC will assist the CITY in developing
compliance correspondence and enforcement procedures. On request, MMC
will provide the CITY, on a semi-armual basis, with a spreadsheet reflecting the
CITY's UUT payments (based on remittance data provided by the CITY to
MMC).
B. Revenue Protection Services
MMC will work cooperatively with LAW FIRM in providing the following revenue
protection services designed to protect the CITY's existing and future OUT and utility
franchise revenues:
I. Statutorv Comoliance and Consulting Services
a. Publication of Ordinance Requirements. Maintain an accurate copy
of the CITY's UUT ordinance and its administrative rules and
interpretations on the MMC Website, and otherwise assist the CITY in
complying with Public Utilities Code 9 495.6.
b. Tax Compliance Forms. Prepare model forms for exemption
applications, UUT remittances, information requests, and other tax
compliance documents.
c. Access to Information. Assist the CITY staff in obtaining SB 278 lists,
tax compliance information, exemption lists of utility service providers,
and in determining the exempt status of utility customers pursuant to the
exemption provisions of the CITY's UUT ordinance or federal excise
tax law relating to telecommunications.
2. Ordinance Uodate and LegislativelRegulatorv Review Services
a. OrdinanceIFranchise and Technology Update. Periodically review
and propose updates to the CITY's Utility Users Tax ordinance and
standard utility franchise agreements, by offering recommendations to
address issues that may arise because of deregulation, litigation, changes
in laws or regulations, the unbundling of traditional utility services, or
the introduction of new technologies to provide utility services.
b. State and Federal Legislation. Monitor proposed state and federal
legislation to identify issues affecting the CITY's UUT or utility
franchise revenues, and make appropriate recommendations, with the
'.
2001-79
prior approval of the CEC, to the CITY, the League of California Cities,
the National League of Cities and other lobbyists of California public
agencies.
c. Regulatory Agencies. Monitor proceedings at the various regulatory
proceedings (e.g., California Public Utilities Commission, California
Energy Cornmission, Federal Commerce Commission, Federal Energy
Regulatory Commission) that affect the deregulation of the various
utilities that are to be reviewed under this AGREEMENT and make
appropriate recornmendations to the CITY and the CEC.
d. Information Services. To accomplish the monitoring and review
services in Section 4(B) above, the PROGRAM will provide the CITY
with periodic newsletters, special communications, and legislative
bulletins. MMC may also provide instruction to CITY staff through
workshops and seminars on such subjects as industry deregulation, new
technologies, complying with new utility-related legislation, and other
timely subjects.
C. MMC Does Not Provide Legal Services.
It is agreed and understood MMC will provide no legal services that may be required
under any of the PROGRAM activities described in this Agreement, but rather LAW
FIRM will provide such legal services to the CITY. It is also acknowledged that in
providing such legal services, LAW FIRM's client will be the CITY, and not MMC.
4. CITY-SPECIFIC AUDITS WITH PERFORMANCE-BASED FEE
A. Scope of CITY-Specific Audits
At any time during the term of this AGREEMENT, with the prior written consent of the
CITY, MMC may perform a CITY-specific audit of a utility franchise or UUT
payments from a specific utility, when the audit intends to focus on CITY-specific
issues. See Section 6(C) below regarding compensation for CITY-specific audits.
B. MMC's Responsibilities for CITY-Specific Activities
1. Work Plan Approval for CITY-Specific Activities. MMC will submit to CITY
staff a proposed Work Plan for review and approval that will serve as the basis
for CITY-specific compliance activities (e.g., CATV UUT or franchise review,
gas or electric franchise review, or payment deviation from a specific utility).
2. CITY Approval of Discovery Actions. For City-specific activities, MMC will
receive prior authorization from CITY staff to obtain and examine utility and
customer records (hard copy and data format) necessary to assure compliance
with the CITY's UUT ordinance through the use of administrative subpoenas,
nondisclosure agreements, and other procedures required by the utility service
provider as a condition of providing access to confidential customer
information.
2001-79
3. MMC to Comolv with Local Laws. In performing the compliance review
services described in this subsection, MMC agrees to abide by the provisions of
the CITY's UUT ordinance, any administrative rules the CITY may adopt
relating to such ordinance, and the confidentiality requirements of state law
(Revenue and Taxation Code Section 7284.6-.7). Throughout the above
process, MMC shall be available to meet with the CITY, utility service
providers, or their customers to review any MMC findings or recommendations
arising out of its compliance review activities for the CITY.
5. CITY's RESPONSIBILITIES
To facilitate and maximize the effectiveness of the above compliance review activities, the
CITY shall diligently assist MMC by performing the following:
A. Necessary Information.
The CITY will provide MMC, on a timely basis, with information necessary to conduct
its compliance review activities including but not limited to: monthly UUT payment
histories, exemption lists, and SB 278 gas and electric lists (including names of
customers refusing to pay surcharges), and certified copies of the UUT ordinance and
any subsequent amendments.
B. Letter of Authorization.
The CITY will provide a letter of authorization identifying MMC as an authorized agent
of the CITY to perform utility users tax compliance audits, to receive and examine
appropriate utility and customer records (hard copy and data format) necessary to assure
UUT tax compliance, and to execute necessary nondisclosure agreements approved by
the CITY.
C. Legal Interpretations of Ordinance.
Upon request by MMC and concurrence of the City Attorney, the CITY will provide
MMC with appropriate legal and administrative interpretations of its UUT ordinance. It
is agreed and understood that the CITY will retain the exclusive authority and
responsibility to administer, interpret, and enforce its UUT ordinance, recognizing that
the role of MMC and LAW FIRM is limited to employing their unique expertise and
proprietary tools for: i) detecting and identifying errors/omissions by utility service
providers or utility users in the application, calculation, collection, and/or remittal of
UUT; and, ii) providing the CITY with technical assistance, without assuming or being
delegated the authority or responsibility of the CITY to administer, interpret, and
enforce its UUT ordinance and standard utility franchise agreements.
6. COMPENSATIONffERM
A. Annual Fixed Fee
I. Total Annual Fixed Fee. The CITY's total annual fixed fee for participating in
the PROGRAM shall be the greater of: i) one-half percent (0.5%) of the total
UUT revenues received by the CITY (excluding UUT revenues derived from
CATV) based on the prior fiscal year, or ii) ten thousand dollars ($10,000).
I.
I
2001-79
2. Allocation of Annual Fixed Fee. It is understood and agreed that certain
protective and legal services under the UUT Compliance and Protective Service
Program, as described herein, will be provided by LAW FIRM to the CITY. In
connection with these services, LAW FIRM will provide such services to the
CITY, and not MMC, as the client. It is understood and agreed that
compensation for all such services are included in the fee to MMC, and MMC
shall pay to LAW FIRM the greater of one-eighth of one percent (0.125%) of
the total UUT revenues or five thousand dollars ($5,000). At any time, LAW
FIRM and MMC may, by mutual agreement, adjust their proportional share of
said total annual fixed fee, provided that such parties shall provide prior written
notice of such adjustment to the CITY.
3. Ouarterlv Pavments of Fixed Fee. Said annual fixed fee shall be paid in four
equal quarterly payments with due dates of: March 31, June 30, September 30,
and December 31. These quarterly payments are nonrefundable. The first
quarterly payment shall be due on the next quarterly due date following the
effective date of this Agreement. For purposes of compensation under this
Section 6(A), the effective date of this Agreement shall be deemed to be January
1,2000.
B. Compensation for Work Performed Prior to December 31,1999
1. Non-CATV Audit Work Performed Prior to December lL 1999. In addition to
the annual fixed fee described in Section 6(A) above, MMC shall be entitled to
performance-based compensation for "additional revenues" that the CITY
receives for reporting periods prior to and through December 31, 1999 as a
result of the utility users tax program of MMC, or its predecessor Municipal
Resource Consultants (hereinafter referred to as "MRC"). Accordingly, the
CITY shall pay MMC twenty-five percent (25%) of the additional revenues,
including interest and penalties, that MMC is able to reasonably substantiate has
resulted from its CITY -specific compliance review activities. Said 25% applies
to the additional revenues received by the CITY for the first twelve quarters
following the correction of the error/omission. In addition, MMC may seek to
recover all revenue due the CITY from prior periods, if any. In that case, MMC
will also receive 25% of any retroactive recovery.
Any "additional revenues" that the CITY receives for reporting periods after
January 1,2000, as a result of work performed by MMC/MRC prior to that date
(other than CITY-specific CATV audit work) shall not be subject to the
performance-based compensation of this or any prior agreements. MMC/MRC
hereby specifically waives any right to such compensation for reporting periods
after January I, 2000 as consideration for the CITY entering into this
AGREEMENT for a minimum of twenty-four (24) months.
2. CITY-Specific CATV Audit Work Performed Prior to December lL 1999.
MMC shall be entitled to performance-based compensation for "additional
revenues" derived from past CITY-specific CATV audit work performed prior
to December 31,1999, that the CITY receives at any time. The CITY shall pay
2001-79
MMC twenty-five percent (25%) of the additional revenues, including interest
and penalties, that MMC is able to reasonably substantiate has resulted from its
CITY -specific compliance review activities. Said 25% applies to the additional
revenues received by the CITY for the first twelve quarters following the
correction of the error/omission. In addition, MMC may seek to recover all
revenue due the CITY from prior periods, if any, upon prior approval of CITY.
In that case, MMC will also receive 25% of any retroactive recovery.
C. Performance-Based Compensation for City-Specific Audit Services
1. With respect to a CITY-specific audit, including a CATV UUT/franchise audit
referred to in Section 4(A) above, MMC shall be entitled to additional
compensation in the event that MMC's compliance review activities result in the
CITY receiving additional revenues from such CITY-specific audit activity.
Accordingly, the CITY shall pay MMC twenty-five percent (25%) of the
additional revenues, including interest and penalties, that MMC is able to
reasonably substantiate has resulted from its CITY -specific compliance review
activities. Said 25% applies to the additional revenue received by the CITY for
the first twelve quarters following the correction of the error/omission. In
addition, MMC may seek to recover all revenue due the CITY from prior
periods, if any. In that case, MMC will also receive 25% of any retroactive
recovery.
2. Notwithstanding subsection (1) above, nothing herein shall prohibit the parties
from entering into a written agreement on compensation for CITY -specific audit
services on a fixed fee or any other separately negotiated basis.
3. In the event that any legal services from LAW FIRM are required in connection
with a CITY -specific requested audit, the cost of such services to the CITY shall
be paid by MMC, and MMC shall disclose to the CITY the financial
arrangement between MMC and LAW FIRM regarding the payment of such
costs.
D. CITY's Obligations
Regarding the CITY-specific compliance review activities of MMC in Sections 4 and
6(C) above, the CITY agrees to:
I. Invoice the responsible party for tax deficiencies (plus interest and penalties if
applicable) identified and confirmed by MMC within thirty (30) days following
receipt and CITY approval ofMMC's detection report or correspondence;
2. Provide MMC with a copy of any settlement agreement with a taxpayer/tax
collector within ten (10) days of entering into such agreement; and,
3. Notify MMC within thirty (30) days following receipt by the CITY of payments
(cash, installment, or other compensation directly benefiting the CITY) of such
tax deficiencies, whether invoiced or not. Upon receipt of such notice, MMC
will promptly invoice the CITY. MMC's compensation is due and payable
within thirty (30) days of the CITY's receipt and the City's acceptance of
2001-79
MMC's invoice.
E. MMC Expenses
MMC shall absorb all expenses incurred by MMC in providing its services as described
herein. These expenses include items such as employee salaries and benefits, insurance,
airfare, auto rentals, meals, lodging, Federal Express, mail, telephone, copying,
directories, on-line resources, and other overhead and miscellaneous expenses.
7. TERMINATION OF AGREEMENT
A. Either the CITY or MMC may terminate this AGREEMENT, by thirty (30) days prior
written notice as provided in this Section.
B. If the CITY terminates this AGREEMENT at any time within twenty-four (24) months
following the effective date of this AGREEMENT, the CITY shall nevertheless pay
MMC eight (8) quarterly payments from the commencement of the AGREEMENT to
compensate MMC for its waiver of fees for past services rendered and additional
revenues received by the CITY, as described in the second paragraph of Section
6(B)(1). MMC shall also be entitled to additional compensation as described in Section
7(C).
C. Upon termination by either party ofthe AGREEMENT as provided herein, MMC shall
be entitled to retain any fees it may have received from the CITY pursuant to Sections
6(A) and 7(B) of this AGREEMENT. In addition, MMC shall be entitled to payment
according to the terms of Section 6(B) and (C) for all additional revenues, including
interest and penalties, that MMC is able to reasonably substantiate resulted from its
compliance review activities pursuant to Section 6(B) and (C) during the term of the
AGREEMENT. Within thirty (30) days following termination, MMC shall provide the
CITY with a list of detections of non-compliance resulting from the compliance review
activities of MMC. The CITY shall, in good faith, diligently seek to: i) correct such
detections determined by MMC prior to the date of termination; and, ii) collect the
additional revenues that are due the CITY and MMC for past periods and for the 12
quarters going forward following the correction, even though the date of actual
correction may occur after the termination date. MMC shall assist the CITY in this
correction/collection effort, if so requested by the CITY.
8. OTHER GENERAL PROVISIONS
In addition to the above provisions, the parties also agree to be bound by the general provisions
as set forth in Attachment "A" of this AGREEMENT, which are by this reference incorporated
herein. In the event of disagreement between the specific provisions of this AGREEMENT and
the general provisions, the specific provisions of this AGREEMENT shall prevail.
EXECUTED as of the day and year first above stated.
2001-79
.'
Date: MR-IL- '9, ;200 \
MBIA Muniservi: C7.1 Resource Consultants
By:~OI
Title: Pre.:;idf"+ d ('F() -
Date: 5/'J.9/ol
,
.
.'
2001-79
ATTACHMENT "A"
GENERAL PROVISIONS
I. Independent Contractor. At all times during the tenn of this Contract, MMC shall be an Independent
Contractor and shall not be an employee of the CITY. The CITY shall not have the right to control the means
by which MMC accomplishes services rendered pursuant to this Agreement
2. Liabilitv. The CITY shall not be called upon to assume any liability for direct payment of any salaries, wages,
or other compensation to any ofMMC's personnel or subcontractors perfonning services hereunder for the
CITY, or any liability other than provided for in this Agreement The CITY shall not be liable for
compensation or indemnity to any MMC employee or subcontractor for injury or sickness arising out of his /her
employment, or for any negligent actions ofMMC or its employees. All persons employed in the perfonnance
of such services and functions shall be employees of MMC, and as such shall not, for any purposes, be
considered employees of the CITY and therefore shall have no right to any CITY benefits, civil service, or
other CITY employment status.
3. Insurance.
A. Public Liabilitv. During the tenn of this Agreement, MMC shall maintain in full force and effect a
policy of public liability insurance with minimum coverages as follows: $1,000,000 for injury to one
person in anyone occurrence and $1,000,000 in the aggregate; and $50,000.00 for property damage.
MMC shall cause the CITY, its officials and employees to be named as insureds on all liability policies
described above with respect to: (1) activities perfonned for the CITY by or on behalf of the named
insured, (2) products and completed operations of the named insured, and (3) premises owned, leased or
used by the named insured. CITY shall be provided with at least thirty (30) days prior notice if there is a
tennination or material change to such coverages affecting the CITY.
B. Worker's Compensation. During the tenn of this Agreement, MMC shall fully comply with the tenns
of the law of the CITY concerning worker's compensation. Said compliance shall include, but not be
limited to, maintaining in full force and effect one or more policies of insurance insuring against any
liability MMC may have for worker's compensation.
4. MMC Not Agent Except as the CITY may specify in writing, MMC shall have no authority, express or
implied, to act on behalf of the CITY in any capacity whatsoever as an agent MMC shall have no authority,
express or implied, pursuant to this Agreement to bind the CITY to any obligation whatsoever.
5. Assignment Prohibited. No party to this Agreement may assign any right or obligation pursuant to this
Agreement Any attempt of purported assignment of any right or obligation pursuant to this Agreement shall
be void and of no effect
6. Nondiscrimination. MMC shall not discriminate, in any way, against any person on the basis of race, sex,
color, religion, sexual orientation, disability, ethnicity, or national origin, in connection with or related to the
perfonnance of this Agreement.
7. Reports. Charts or Other Products. All reports, charts and other products produced by MMC and delivered to
the CITY are the property of the CITY.
8. CITY Representative. The Mayor or her designee is the representative of the CITY and will administer this
Agreement for the CITY.
9. Indemnitv and Hold Harmless. MMC shall indemnify and hold harmless the CITY, its officers, employees, and
agents, from and against all actions, damages, claims, or losses, which are in the nature of personal injury,
physical property damage, or intentional torts, and which allegedly arise out of or are caused by MMC's
negligent or intentional conduct in the perfonnance ofMMC's work under this Agreement
. .~.
.
. ,
..
2001-79
10. Waiver of Breach. No waiver of the breach of any ofthe covenants, agreements, restrictions or conditions of
this Agreement by any party hereto shall be construed to be a waiver of any succeeding breach of the same or
other covenants, agreements, restrictions or conditions of this Agreement. No delay or omission of any party
hereto in exercising any right, power or remedy herein provided in the event of default shall be construed as a
waiver thereof, or acquiescence therein, nor shall the acceptance of any payments made in a manner or at a time
other than as herein provided be construed as a waiver of or variation in any of the terms of this Agreement.
11. Interest. Unless the CITY requests in writing additional information regarding the billing or otherwise
disagrees with the billing, the CITY shall pay MMC within thirty (30) days of receipt ofMMC's billing, or
from the date of agreement on the billing in the event of a written request. Any payment received after such
time period shall accrue monthly interest of three-quarters percent ('1.%).
12. Whole and Entire Agreement. This AGREEMENT, and any attachments hereto, 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 with regard to the provision of utility users tax services described herein. This AGREEMENT, and
any attachments hereto, shall supersede any and all prior agreements entered into by the parties relating to the
provision of utility users tax compliance services by MMC, or its predecessor Municipal Resource Consultants
(MRC).
13. Legal Interoretations. For purposes of this Agreement, the City Attorney's opinion concerning the
interpretation of local ordinances and the legal rights, duties, and obligations of the CITY regarding collection
of taxes under State and local law shall be controlling.
14. 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 fmal and binding on the parties hereto.
15. Confidentiality. MMC agrees that it shall keep all information it receives concerning CITY taxpayers
confidential and shall use it solely for tax compliance purposes. Services performed by MMC prior to
termination may result in the CITY's receipt of revenue after termination. This receipt of revenue entitles
MMC to payment from the CITY even after expiration of contract or termination. The CITY agrees to provide
to MMC after expiration or termination of this Agreement such confidential payment information as is
necessary to enable MMC to calculate the compensation due to MMC as a result of said receipt of revenue and
MMC shall maintain the confidentiality of this information. Therefore, MMC shall be deemed a contractor
under Revenue and Taxation Code Section 7284.6 - .7 after expiration of contract or receipt of notice of
termination from the CITY for the sole and limited purpose of enabling MMC to have access to said
information to calculate compensation.
16. Notices. Any notice to be given from one party to the other pursuant to this Agreement shall be deposited with
the United States Postal Service postage prepaid and addressed as follows:
To CITY:
CITY ADMlNISTRA TOR
CITY OF SAN BERNARDINO
300 North D Street
San Bernardino, CA 92418
To MMC:
Grnnr8rtmhntt Monica keller
MBtA-MtmiServices-eo~IA MuniServices Company
~~7~.~n~~YrnTRomtlndependence Square West
Strite-233 Suite 507
We>tilrl<evttrnge;-e,o.-n3Ui Philadelphia, PA 19106
Nothing in this Paragraph shall be construed to prevent the giving of notice by personal service.