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Home My WebLink About2021 CON Hinderliter DeLLamas & Assoc - Tax & Fee Admin Services - First AmendmentAmendment to Agreement for HdL �rvioes National Clty, C 4 August 2a 2021 AMBJDMENT TOAGF 41ENT EETWEENTHEaTYOFNATIONALOTIAND HINDERLITER DE LLAMAS & ASSOCIATE This Rrst Amendment to the Agreement between the City Of National City and Hinderliter De Uamas & Assoc' ates for Tax and Fee Admi nist rat ion %rvi ces is made and entered into asofthe 7t day of Saptember 2021 ("Amendment Date"), by and between the City of National City, a municipal corporation, hereinafter referred to as City, and Hinderliter De Uamas & Associates, a California corporation, hereinafter referred to as HdL VN-IHFFASHdLand Oty entered into that certain Agreement for Tax and Fee Administration and related servicesdated December 19th, 2019 ("Original Agreement"); and VVHIAS HdL and City now desire to amend the "Original Agreement" to extend the term and add compliance services and provide for the compensation there -of. THE it is agreed by City and HdL as follows: 1. SCOPE OFSERVIas Exhibit A detailing the specific services to be performed by HdL is hereby amended and restated in its entirety with Exhibit A attached to thisAmendment. 2. COMPENSATION Exhibit Bdetailingthe compensation for services is hereby amended and restated in its entirety with Exhibit Battached to thisAmendment. 3. T13RIVI OF AM BJDM ENT The term for this Rrst Amendment shall commence on January 11t, 2020 and continue year to year unless terminated earlier by either party pursuant to the Original Agreement's termination provisions. 4. NO110E Al notices required by this Amendment shall be given to the City and to HdL in writing, by personal delivery or first-class mail postage prepaid, addressed as follows: Oty HdL Administrative %rvices Director City of National Oty 1243 National City Boulevard National Oty, California 91950-4397 Attn: Contracts HdL Companies 120 S Sate College Blvd Site 200 Brea, California 92821 5. PROJECT OOORDINATI ON AND SJPERVIS ON The designated Project Coordinator for the OTYshall be the Administ rat ive Services Director, or in their absence, the Acting Administrative %rvioes Director. This amends S~ction 4 of the "Original Agreement" dated December 191h, 2019. 1 Amendment to Agreement for I-kiL . n.4 es National aty, C4 August 25, 2021 6. R.ILLFORCEAND T Except as modified pursuant to this amendment, all other terms and conditions of the Original Agreement shall remain in full force and effect. IN WITNESWHBRBJF, the parties hereto have caused this Amendment to be executed on the date first above written by their respective officers duly authorized in that behalf. Hinderliter, De Llamas & Associates, a California Corporation By: Name: Robert Gray Title: CIO BY: Name: Ga Title: COO Torres, Deputy City ttorney 2 Amendment to Agreement for HdL Sbrvirps National City, CA August 25, 2021 EXHl BIT A SOOPE OF SERVICES HdLwill provide the following rvices; 1. Business License Tax Operations Management Services 1.1. Establish and maintain database of City businesses. 1.2. Receive and process applications, renewals, and payments in a timely fashion. 1.3. Send renewal notices to active businesseswithin 30 days of the renewal period end date or at another interval specified by City. 1.4. Provide businesses multiple options for submitting applications, renewals, payments, or support requests (including via website, email, mail, phone, and fax. HdL license specialists will be available for live interactions Monday through Friday, 8:00am to 5:00pm Pacific). 1.5. Remit revenueto City no less than monthly. 1.6. Provide Oty staff access to website portal offering business registry inquiry, reporting, and electronic department approval capabilities. 2. Compliance Services 1) Identify and register busins which are subject to Iicensure or taxation, 2) collect known debt as pertainsto business license or tax, and 3) identify under -reported tax liability. 2.1. Discovery Services 2.1.1.Levelop a list of busines ssubject to Oty licensure or taxation. 2.1.2.Notify non -compliant businesses of their options to eomplyor dispute their non -compliant status. Notification and support to business will be facilitated through the website, mail, email, phone, and fax. 2.1.3.Fview information and forms submitted by the business for completion and accuracy, inclusive of any additional required documentation (i.e., home occupation permit). All submissions are filed and stored electronically and made available to City upon request. 2.1.4.Provide businesses with detailed invoicing and optionsto payviawebsite, mail, and phone. 2.1.5.Femit revenue to City no less than monthly, along with all business applications and any additional documentation. 2.2. Ciallection F rviaes 2.2.1.Identify busi nessPs subject to City licensure or taxation which have known debt to City and have failed to pay within an appropriate time frame. 2.2.2.Notify businesses of their optionsto comply or dispute their non -compliant status. 2.2.3.Provide businesseswith detailed invoicing and optionsto pay via website, mail, and phone. 2.2.4.Remit revenueto city no less than monthly. 2.3. Audit Services 2.3.1. Identify potential under -reporting and/or misdassified businesses. 2.3.2.Audit businesses mutually agreed to by City and HdL that are identified as potential under- reporting businesses. 2.3.3.Sabmit audit summaries to City and discussfurther actions. 2.3.4,Eclucate businesses on proper reporting practices. 2.3.5.Invoice and collect identified delinquencies. 3. Transient Occupancy Tax Operations Management Services 3.1. Establish and maintain database of City lodging providers. 3.2. Receive and process registrations, tax returns and payments in a timely fashion. 3 Amendment to Agreement for HdL �rvirs National aty, C4 August 25, 2021 3.3. Provide lodging providers multiple options for submitting registrations, tax returns, payments, or support requests (ind uding via website, email, mail, phone, and fax. HdLtaxspedalistswill be available for live interactions Monday through Friday, 8:OOam to 5:OOpm Pacific). 3.4. Remit revenue to Oty no lessthan monthly. 3.5. Provide Oty staff access to website portal offering lodging provider registry inquiry and reporting capabilities. 3.6. Endeavor to ensure accurate filings of returns by consistently monitoring returns, providing compliance audits, and educating lodging providers as mutually agreed to by Oty and HdL 3.7. Provide analyss reports monthly and annually provide revenue trends and key insights on City lodging providers. 4 Amendment to Agreement for 1-1dL a,rviaes National Gty, CA August 25, 2021 D4-IIBIT B FEES 4. Business License Tax Operations Management cervices 4.1. Fees for performing operations management rvicps shall be $13.50 for each processed account, which is any account for which an application or renewal/return was processed, or active account which was sent a renewal notice. 4.2, Beginning January 1', 2023 Fees will be increased as of January 1st of each calendar year with reference to the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Fegion, as reported by the U.S Bureau of Labor aatistics (the "CFI Change'). Each annual increase in the Feeswill be equal to the Beater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5°/g then the annual increase wilt be 2°/g if the actual CPI Change is 3.5°/4 then the annual increase will be 3.5%, and if the actual CPI Change is 12°/q then the annual increase will be 10°A 4.3. Fees related to travel and lodging expenses are billed at cost and apply to all meetings (induding implementation, training, operations, and support). Travel expenses only apply to out -of -scope travel and must therefore be pre -approved by City. 4.4. Fees will be invoiced monthly to City for cervices performed during the prior month. Feeswill be netted out of City's monthly revenue disbursement. City will submit payment for any balance due to HdLwithin 30 days of receiving the invoice. 5. Compliancervices 5.1. Fees for performing compliance rvicrsapply to all monies received for the current tax/license period and any other prior period collected (induding monies received for taxes, penalties, interest, and fees). Fees do not apply to payments for future periods. 5.1.1.Fees for performing discovery cervices shall be a contingency Fee of 35%of the revenues received as a result of the cervices. 5.1.2.In the event that City discovers a non -compliant business and reports the business to HdL (induding a calculation of all taxes/fees due), HdLwili categorizethe business as a collection service effort and thus apply the lower collection rvicescontingency Fee rate. 5.1.3.Fees for performing collection cervices shall be a contingency Fee of 25%of the revenues received as a result of the rvices. 5.1.4.Fees for performing audit rvioes shall be a contingency Fee of 35% of the revenues received as a result of the rvices. 5.2. HdL recognizes City's authority to waive or reduce the tax/fee debt of a business. Siould City decide to do so for a business whose defidency was identified by HdL, HdL shall be entitled to compensation in the amount of one half (1/2) of the Fees HdL would have otherwise earned. Defiaenaes which are uncollectable due to insolvency or dissolution of the business, or for defidendeswhich are otherwise incapable of collection (i.e., statute of limitation or other legal defense) shall not be considered a City voluntary election to waive, and thus, HdLwould not be entitled to compensation related thereto under this provision. 5.3. Focs related to travel and lodging expenses are billed at cost and applied to all meetings (induding implementation, training, operations, and support). Travel expenses only apply to out - of -scope travel and must therefore be pre -approved by Qty. 5 Amendment to Agreement for HdL cervices National City, CA August 25, 2021 5.4. Fees will be invoiced monthly to City for S2rvioesperformed during the prior month. Fees will be netted out of Clty's monthly revenue disbursement. Qty will submit payment for any balance due to HdLwithin 30 days of receiving the invoice. 6. Transient Occupancy Tax Operations Manament Services 6.1. Fees for performing operations management Services shall be $650.00 per year for each quarterly filing property, and $750.00 per year for each monthly filing property. 6.2. Beginning January 11, 2023 Fees will be increased as of January 1st of each calendar year with referenceto the 12-month percent change in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U), West Region, as reported by the U.S Bureau of Labor atistics(the"CFI Change"). Each annual increase in the Fees will be equal to the greater of two percent (2%) or the actual CPI Change and the lesser of ten percent (10%) or the actual CPI Change. For example, if the actual CPI Change is 1.5%then the annual increase will be 2°/q if the actual CPI Change is 3.5°/q then the annual increase will be 3.5%, and if the actual CFI Change is 12%then the annual increase will be 10% 6.3. Fees related to travel and lodging expenses are billed at cost and apply to all meetings (including implementation, training, operations, and support). 6.4. Fees will be invoiced monthly to Qtyfor Services performed during the prior month. Fees will be netted out of City'smonthly revenue disbursement. City will submit payment for any balance due to HdLwithin 30 days of receiving the invoice. 6