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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Date July 1, 2003
ORIGINAL
Subject: A resolution authorizing the
Mayor of the City of San Bernardino to
execute on behalf of the City an
agreement between Transport Tax
Consulting, Inc. (TTC) and the City of
San Bernardino for fuel excise tax
review services; and authorizing a
purchase order to TTC for said services
performed from January 1997 through
June 2002.
From: Lynn Merrill, Director
Dept: Public Services
Meeting Date: July 7,2003
Reso 2000-302
October 4, 2000 Agreement approved
Recommended Motion:
1. Adopt resolution.
2. Authorize the Director of Finance to amend the FY2002/2003 budget to increase
revenues to the General Fund in Account No. 001-000-4901 (Miscellaneous
Receipts) by $179,750.07 and expenditures in Account No. 001-092-5502 (Non-
Departmental-Professional Contractual Services) ~ ~
Signature
Contact person Lynn Merrill, Director
Phone:
5140
Supporting data attached:
Ward:
FUNDING REQUIREMENTS:
Source:
$77,117.42
001-092-5502
Non-Departmental-
Prof. Contractual Service
Amount:
Finance:
Council Notes:
'lZ-l.-:K,() ~20c)3-IS'
Agenda Item No. 1'1
7/7/03
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subject:
A resolution authorizing the Mayor of the City of San Bernardino to execute on behalf of
the City an agreement between Transport Tax Consulting, Inc. (TTC) and the City of San
Bernardino for fuel excise tax review services; and authorizing a purchase order to TTC for
said services performed from January 1997 through June 2002.
Background:
On October 2, 2000, the Common Council authorized the Mayor of San Bernardino to
execute an agreement between Transport Tax Consulting, Inc. (TCC) and the City of San
Bernardino, (see Attachment 1). The Public Services Department contracted with TCC to
recapture overpaid fuel excise taxes and permanently reduce future excise taxes. As part
of their proposal, TTC performed the following:
1. Conducted a field study that documented actual on and off highway fuel use of all city
equipment and vehicles.
2. Filed an appeal with the State Board of Equalization (SBE) and obtained approval for
documented off-highway fuel use.
3. After receipt of approval, filed tax returns and obtained refund.
After the date of State approval, the City would keep 100% of any refunds received from
non-taxable fuel use and the City would compensate TCC 50% of the amount of refunds.
TCC recaptured $179,750.07 in overpaid fuel excise taxes. The tax refunds from the
current agreement are:
Refunds
Interest
January 1997 through December 1997 refunded amount is:
January 1998 through December 1998 refunded amount is:
January 1999 through December 1999 refunded amount is:
January 2000 through December 2000 refunded amount is:
January 2001 through December 2001 refunded amount is:
January 2002 through June 2002 refunded amount is:
$27,478.44 $6,296.97
$28,578.60 $5,120.31
$30,340.44 $4,070.65
$31,091.58 $2,591.00
$27,612.49 $1,274.82
$15,133.29 $ 161.48
$160,234.84 $19,515.23
The Public Services Department originally budgeted the estimated revenues and
expenditures for this service in FY 2001-2002 budget. However, because of the lengthy
appeal process, neither the revenue nor the expenditures were realized in FY 2001-2002.
TCC was not able to provide an exact date to Public Services as to when this refund would
occur. Therefore, Public Services did not budget in FY 2002-2003 for the revenue amount
of $179,750.07, or the expenditure of $80,117.42 (50% of the $160,234.84 refund) to
compensate TCC for processing the fuel tax refund.
Because the Public Services Department recently received the $179,750.07 in fuel tax
refunds, the Public Services Department would like to enter into a new agreement with
TCC. In the original agreement, approved in October 2000, the City had the option to
implement three (3) one-year extensions with TCC. However, time lapsed and the
agreement expired in October 2002. By executing a new agreement with TCC, the current
amount due of $80,117.42 will be reduced by $3,000 for an amount due of $77,117.42.
Fee to TCC for the period of 1997 through June 2002:
Credit first invoice perfax dated March 7, 2003:
Fee to TCC for the period of January 1997 through June 2002:
$80,117.42
-$ 3.000.00
$77,117.42
Additionally, TCC's annual service charge to process the fuel tax refunds from July 2002
through December 2004 would be as follows.
Fee to TCC for the period of July 2002 through December 2002:
$ 3,000.00
Fee to TCC for the period of January 2003 through December 2003:$ 3,000.00
Fee to TCC for the period of January 2004 through December 2004:$ 6,000.00
The process of documenting off-highway use and the appeal process with the (SBE) are
time consuming and require specialized expertise. By utilizing TCC's services, the City will
realize approximately $40,000 per year in fuel tax-refunds. These refunds will come from
diesel and unleaded fuel excise taxes previously paid by the City.
Financial Impact:
The revenue has already been counted, but not the expense in FY 2002/03. The new
revenue of $179,750.07 increases revenues to the General Fund in Account 001-000-4901
(Non-DepartmentlDivision-Miscellaneous Receipts) by $179,750.07 and expenditures in
Account 001-092-5502 (Non-Departmental-Professional Contractual Services) by
$77,117.42, thereby creating a net additional revenue to the General Fund of $102,632.65.
Recommendation:
1. Adopt resolution.
2. Authorize the Director of Finance to amend the FY2002/2003 budget to increase
revenues to the General Fund in Account No. 001-000-4901 (Miscellaneous
Receipts) by $179,750.07 and expenditures in Account No. 001-092-5502 (Non-
Departmental-Professional Contractual Services) by $77,117.42.
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RESOLUTION N~ r1
RESOLUTION AUTHORIZING THE MAYOR OF THE CITY OF SAN
BERNARDINO TO EXECUTE ON BEHALF OF THE CITY AN AGREEMENT
BETWEEN TRANSPORT TAX CONSULTING, INC. (TTC) AND THE CITY OF
SAN BERNARDINO FOR FUEL EXCISE TAX REVIEW SERVICES; AND
AUTHORIZING A PURCHASE ORDER TO TTC FOR SAID SERVICES
PERFORMED FROM JANUARY 1997 THROUGH JUNE 2002.
BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. That Transport Tax Consulting, Inc. conducts highly specia'iized
tax audits and accounting procedures to pursue tax refunds, recapturing overpaid
fuel excise taxes; pursuant to this determination, the Mayor is hereby authorized to
execute on behalf of the City of San Bernardino an agreement with Transport Tax
Consulting, Inc. (TIC) relating to fuel excise tax review, a copy of which is attached
hereto as Exhibit A and incorporated herein by reference.
SECTION 2. The authorization to execute the above referenced Agreement
is rescinded if the parties to the Agreement fail to execute it within sixty (60) days of
the passage of this resolution.
SECTION 3. That TIC conducted a field study of actual on and off highway
fuel use of all city equipment and vehicles during the period of January 1997
through June 2002, resulting in a refund of $179,750.07 in overpaid fuel excise
taxes. Pursuant to this determination the Purchasing Manager is hereby authorized
to issue a purchase order to TTC in an amount not to exceed $77,117.42 for said
services.
SECTION 4. The Purchase Order shall reference this Resolution No. 2003-
and shall read, "Audit of overpaid fuel excise taxes P.O. No.
not to
exceed $77,117.42" and shall incorporate the terms and conditions of the Contract,
which is on file in the City Clerk's Office.
July 7, 2003
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RESOLUTION AUTHORIZING THE MAYOR OF THE CITY OF SAN
BERNARDINO TO EXECUTE ON BEHALF OF THE CITY AN AGREEMENT
BETWEEN TRANSPORT TAX CONSULTING, INC. (TTC) AND THE CITY OF
SAN BERNARDINO FOR FUEL EXCISE TAX REVIEW SERVICES; AND
AUTHORIZING A PURCHASE ORDER TO TTC FOR SAID SERVICES
PERFORMED FROM JANUARY 1997 THROUGH JUNE 2002.
SECTION 5: The authorization to execute the above referenced Purchase
Order is rescinded if not issued within sixty (60) days of the passage of this
resolution.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the
Mayor and Common Council of the City of San Bernardino at a
meeting thereof, held on the day of , 2003, by the
following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MCCAMMACK
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this day of
,2003.
Approved as to
Form and legal content:
Judith Valles, Mayor
City of San Bernardino
JAMES F. PENMAN,
City Attorney
,.,
~ r'"
,7 " C"l--'-"''''--
SERVICES AGREEMENT
THIS AGREEMENT is entered into this
day of
.2003. by
and between the TRANSPORT T AX CONSULTING, INC., ("CONSULTANT") and the CITY
OF SAN BERNARDINO ("CITY").
WITNESSETH:
WHEREAS, the CITY desires to retain the services of CONSUL T ANT for the purpose of
fuel excise tax review: and the initial term of this Agreement shall be one (I) year from the date first
shown above: and the CITY will have the option to exercise three (3) one-year extensions to this
agreement and:
WHEREAS, CONSULTANT possesses the skills to provide the most advantageous and
best responsible proposal for providing said services for the CITY;
NOW, THEREFORE, the parties hereto agree as follows:
Section I. Scope of Work
CONSUL T ANT shall furnish tax review services including but not limited to a field study,
an appeal with the State Board of Equalization (SBE), filing of tax returns. and obtaining refunds.
Services provided will include:
I. Conduct a field study that documents actual on and off highway fuel use of all CITY equipment
and vehicles.
2. File an appeal with the SBE and obtain approval for documented ofT-highway fuel use.
3. After receipt of approval, filed tax returns and obtain refund.
4. CONSULTANT shall provide the Public Services Department with an invoice upon receipt of
refunds and shall be provided payment within thirty (30) days therefrom. CITY retains the right
to challenge all or any part of an invoice.
5. Refunds for non-taxable fuel use after the date of state approval will be kept 100% by CITY.
6. CONSULTANT shall be paid for such services as outlined under Section II.. Comr~nsation and
Expenses.
Section II. Compensation and Expenses.
CITY agrees to pay CONSULTANT as follows:
Fee to CONSULTANT for the period of 1997 through June 2002( 112 of recovery) $80.117.42
Credit first invoice per fax dated March 7. 2003: -$ 3.000.00
Fee to CONSULTANT for the period of January 1997 through June 2002:
Fee to CONSULTANT for July 2002 through December 2002:
Fee to CONSULTANT for January 2003 through December 2003:
Fee to CONSULTANT for January 2004 through December 2004:
$77.117 .42
$ 3.000.00
$ 3.000.00
$ 6.000.00
CONSUL T ANT's continued services guarantee an additional $6.000 to the recent annual average
refund of $30.000. If CONSULTANT's methods do not generate the guaranteed additional $6.000
in refunds for proportionate fuel use. they will reduce their fee. dollar for dollar. for that amount
that the additional refunds fall short of the $6.000 guarantee. No travel costs apply.
Section III. Insurance.
While not restricting or limiting the foregoing, during the term of this Agreement.
CONSUL T ANT shall maintain in effect policies of comprehensive public. general and automobile
liability insurance, in the amount of $1.000.000.00 combined single limit. and statutory Worker's
Compensation coverage, and shall file copies of said policies with the CITY's Risk Manager prior to
undertaking any work under this Agreement. CITY. its officers, elected officials, attorneys. Boards,
Committees, employees and agents. shall be set forth as an additional named insured in each policy
of insurance provided hereunder. and shall require the insurer to notify CITY, in writing. ten days in
advance, of any material change or termination in the policy.
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Section IV. No emnlovment.
CONSUL T ANT shall perform work tasks provided by this Agreement: but for all
intents and purposes. CONSULTANT shall be an independent contractor and not an agent or
employee of the CITY. CONSULTANT shall not receive any salary. bonuses. or employment
benefits from the CITY.
Section V. Termination.
A) This Agreement may be terminated without cause upon thirty (30) days written notice by
either CONSULTANT or CITY.
B) In the event CONSULTANT or any employee of CONSUL T ANT breaches this Agreement.
CITY shall have the right to terminate this Agreement immediately upon written notice to
CONSULTANT. CITY shall have no obligation to pay CONSULTANT. Termination of
this Agreement by CITY shall not limit any other right or remedy which CITY may have
under this Agreement. at law or in equity.
Section VI. Entire Al!:reement and Amendment
This Agreement comprises the entire agreement of and between the parties with respect to
the subject matter hereof. This Agreement may be amended or supplemented only by written
agreement of CITY and CONSULTANT.
Section VII. Waiver of Breach.
Any failure of CONSUL T ANT and CITY to comply with any provision of this Agreement
may be expressly waived in writing. but such waiver shall not be construed as a waiver of or an
estoppel with respect to any subsequent or other breach.
Section VIII. Assil!:nment: Successors and Assil!:ns.
CONSULTANT shall have no right to assign, sell. transfer or delegate. whether involuntary
or by operation of law. any right or obligation under this Agreement without the prior written
consent of CITY. Any purported assignment, transfer or delegation in violation of this section shall
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be null and void. Subject to the foregoing limits on assignment and delegation. this Agreement
shall be binding and shall insure the benefits of the parties and their respective successors and
assIgns.
Section IX. ControJlinl! Law.
The validity. interpretation. and performance of this Agreement shall be controlled by and
construed under the laws of the State of California.
Section X. Notices.
Any notice to be given pursuant to this Agreement shall be deposited with the United States
Postal Services, postage prepaid and addressed as follows:
TO THE CITY:
CITY of San Bernardino
Public Services Department
300 North "0" Street
San Bernardino. CA 92418
Facsimile (909) 384-5138
TO THE CONSULTANT:
Transport Tax Consulting. Inc.
929 North Val Vista Drive. #107103
Gilbert, AZ 85234
Facsimile (480) 924-7587
Notice may also be given by facsimile ("fax") during regular business hours to the numbers listed
above. and such notice shall be deemed given upon receipt as reflected in a transmission
verification. Nothing in this paragraph shall be construed to prevent the giving of notice by
personal service.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and date first above written.
Date:
July
.2003
Transport Tax Consulting
Dave Merrill
City of San Bernardino
By:
By:
Date:
Date:
4
OFFICE OF THE CITY CLERK
RACHEL G. CLARK, C.M.C. . CITY CLERK
300 North "D" Street. San Bernardino. CA 92418-0001
909.384.5002. Fax: 909.384.5158
www.ci.san-bernardino.ca.us
July II, 2003
Mr. Dave Merrill
Transport Tax Consulting, Inc.
929 North Val Vista Drive, #107103
Gilbert, AZ 85234
Dear Mr. Merrill:
At the Mayor and Common Council meeting of July 7, 2003, the City of San Bernardino adopted
Resolution 2003-151 - Resolution authorizing the Mayor to execute an agreement between
Transport Tax Consulting, Inc. (TTC) and the City of San Bernardino for fuel excise tax review
services.
Enclosed is one (1) original agreement. Please sign in the appropriate location and return the
original agreement to the City Clerk's Office, Altn: Michelle Taylor, P.O. Box 1318, San
Bernardino, CA 92402, as soon as possible.
Please be advised that the resolution and agreement will be null and void if not executed
within 60 days, or by September 5, 2003.
If you have any questions, please do not hesitate to contact me at (909)384-5002.
Sincerely,
-il!'e(.d,' /.c' 1&
Michelle Taylor
Senior Secretary
Enclosure
CITY OF SAN BERNARDINO
ADOPTED SHARED VALUES: Integrity. Accountability. Respect for Human Dignity. Honesty
CITY OF SAN BERNARDINO
Interoffice Memorandum
CITY CLERK'S OFFICE
Records and Information Management (RIM) Program
DATE:
July 22,2003
TO:
Judy Johnson, Senior Secretary
FROM:
Michelle Taylor, Senior Secretary
RE:
Resolution 2003-151 - Transport Tax Consnlting, Inc.
CC:
Veronica Martinez, Finance; Jose Kenline, Public Services
Attached is a fully executed copy of the agreement between the City and Transport Tax
Consulting, Inc. (TTC) for fuel excise tax review services. The original agreement is on file in
the City Clerk's Office.
If you have any questions, please call me at ex!. 3206.
.. ~
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
\ '1 Resolution #
Abstain e
Meeting Date (Date Adopted): fI- 'l-O~ Item #
Vote: Ayes ,- S I 'I Nays-e--
Change to motion to amend original documents:
2o<J3-1':;
Absent G
Reso. # On Attachments: ~ Contract term: -
Note on Resolution of Attachment stored separately: ..::::....
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W ICOUNTY
Date Sent to Mayor: '1- 9 .. 03
Date of Mayor's Signature: ')- '"1- ('> 3
Date of ClerklCDC Signature: n - \ 0 -0:'
Null/Void After: &'0 0"',-' / '1-5 .(J.3
,
By: -
Reso. Log Updated:
Seal Impressed:
..-
v
,/"
Date Memo/Letter Sent for Signature:
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached: ,,'" Date Returned: ()..;) :J .. (:; ~
See Attached:
See Attached:
']- \ \. 02.,
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413,6429,6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
City Attorney /
Parks & Rec.
Code Compliance Dev. Services
Police Public Services /' Water
Notes:
Yes .....L No BYf
Yes No ~ By...--L....
Yes No ~ By_
Yes No v By_
Yes No ,..- BX!
:y-
EDA
Finance /""
MIS
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: _
Date:
Revised 01112/01