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HomeMy WebLinkAbout13-169 - Tax Recovery Services - Tax Audit and RecoveryCity of Tukwila Agreement Number: 13-169(d) Contract Approval N/A 6200 Southcenter Boulevard, Tukwila WA 98188 CONTRACT FOR SERVICES Amendment #4 Between the City of Tukwila and Tax Recovery Services, LLC That portion of Contract No. 13-169. 13-169(a). 13-169(b). and 13-169(c) between the City of Tukwila and Tax Recovery Services. LLC is amended as follows: Section 4 Duration of Agreement: Duration of Agreement. This Agreement shall be in full force and effect for a period commencing November 1. 2011 and ending December 31. 2018, unless sooner terminated under the provisions hereinafter specified or unless the term is extended in writing by mutual agreement between the City and the Contractor. All other provisions of the contract shall remain in full force and effect. Dated this ' `7 i"''' day of Dc. G e -M %r'" 20 1 % CITY OF TUKWILA Allan Ekberg, Mayor CONTRACTOR Printed Name: M\ -c, - -Q l C. q -N s e ATTEST/AUTHENTICATED APPROVED AS TO FORM Christy O'FI arty, MMC, City C rk City Attorney Page 1. of 1 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: 13-169(c) Council Approval N/A CONTRACT FOR SERVICES Amendment #3 Between the City of Tukwila and Tax Recovery Services, LLC That portion of Contract No. 13 -169, 13- 169(a), and 13- 169(b) between the City of Tukwila and Tax Recovery Services, LLC is amended as follows: Section 4 Duration of Agreement: Duration of Agreement. This Agreement shall be in full force and effect for a period commencing November 1, 2013, and ending December 31, 2017, unless sooner terminated under the provisions hereinafter specified or unless the term is extended in writing by mutual agreement between the City and the Contractor. All other provisions of the contract shall remain in full force and effect. Dated this 9 70- day of NNa,y, ,20 Ilan Ekberg, May ATTEST /AUTHENTICATED a ' Chri s O'Flahe MMC City Clerk CONTRACTOR Printed Name:4•1■ :c._‘.•t. .e._\ `S, .,"`e.s el4n`c APPROVED AS TO FORM City A orney IS Ic6 G Page 1 of 1 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment #2 Between the City of Tukwila and Tax Recovery Services, LLC 13- 169(b) Council Approval N/A That portion of Contract No. 13 -169 and 13- 169(a) between the City of Tukwila and Tax Recovery Services, LLC is amended as follows: Section 4 Duration of Agreement: Duration of Agreement. This Agreement shall be in full force and effect for a period commencing November 1, 2013 and ending December 31, 2016, unless sooner terminated under the provisions hereinafter specified or unless the term is extended in writing by mutual agreement between the City and the Contractor. All other provisions of the contract shall remain in full force and effect. Dated this day of (9CTd .b-Q7 , 20 /� CITY OF TUKWILA ATTEST /AUTHENTICATED CA: 2012 CONTRACTOR ANkA,A. Printed Name/Title:'t i s APPROVED AS TO FORM City Attorney 1\0- f Page 1 of 1 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number:l 3- 169(a) Council Approval N/A CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Tax Recovery Services, LLC That portion of Contract No. 13 -169 between the City of Tukwila and Tax Recovery Services, LLC is amended as follows: Section 4 Duration of Agreement: Duration of Agreement. This Agreement shall be in full force and effect for a period commencing November 1, 2013, and ending December 31, 2015 , unless sooner terminated under the provisions hereinafter specified or unless the term is extended in writing by mutual agreement between the City and the Contractor. All other provisions of the contract shall remain in full force and effect. Dated this 01 day of N OVQtM-6.t, 20 t Li CITY OF TUKI ILA ATTEST /AUTHENTICATED 1464.4 t.epud'j eleA I CONTRACTOR Printed Name/Title:14\ z Q\ C 'c-: S `o - APPROVED AS TO FORM City Clerk dity Attorney CA: 2012 Page 1 of 1 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Contract Number: 13-169 Council Approval N/A CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a non - charter optional municipal code city hereinafter referred to as "the City," and Tax Recovery Services, LLC, hereinafter referred to as "the Contractor," whose principal office is located at 1902 157th Street East, Tacoma, WA 98445. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference, not to exceed $40,000 without amendment to the contract. 3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Agreement. This Agreement shall be in full force and effect for a period commencing November 1, 2013, and ending December 31, 2014 , unless sooner terminated under the provisions hereinafter specified or unless the term is extended in writing by mutual agreement between the City and the Contractor. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. CA Revised 2013 Page 1 of 4 6. Indemnification. The Contractor shall defend, indemnify and hold the City, its officers, agents, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. The City shall defend, indemnify and hold the Contractor, its officers, directors, shareholders, partners, employees, and agents harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the Contractor. 7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products- completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products - completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured - Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage. 2. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. 3. Professional Liability with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit Professional Liability insurance shall be appropriate to the Consultant's profession. CA Revised 1 -2013 Page 2 of 4 B. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. C. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A: VII. D. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. E. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. F. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. G. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8. Record Keeping and Reporting. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 10. Termination. This Agreement may at any time be terminated by the City or the Contractor giving to the other party thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation or the presence of any disability in the selection and retention of employees or procurement of materials or supplies. CA Revised 1 -2013 Page 3 of 4 12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 13. Entire Agreement; Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: Jennifer Ferrer -Santa Ines, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 16. Applicable Law; Venue; Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. $c9 DATED this 000 day of CITY OF TUKWILA 0 cfabor City Clerk, Christy O'Flaherty APPROVED AS TO FORM: Offic of the City Attorney CA Revised 1 -2013 ,20L ?. CONTRACTOR Printed Name and Title: Nh Q. 9\ - C s Address: cD Page 4 of 4 Exhibit A Scope of services to be provided by Contractor. The Contractor shall furnish services including, but not limited to the following: A. Audits and tax investigations on selected businesses will be conducted by the Contractor as mutually agreed upon by the City and the Contractor. Audits and tax investigations may include review of sales tax or utility taxes, or franchise agreements for a time period not to exceed the maximum number of years allowed for audits as allowed by the City's ordinance. The primary audit of businesses will be for payment of utility taxes to the City. B. In performing the audits, Contractor will act as an agent of the City of Tukwila, contacting the appropriate businesses, examining their books, and working as necessary with their responsible financial officers and staff. C. As audits are completed, Contractor will keep the City informed as to the additional advantageous audits to consider next. D. Contractor will need certain items from the City including: 1) business' utility tax return for the past five years (Excel Summary) plus the current year 2) Current city map showing city boundaries E. Contractor will provide regular reports on the status of the audit to the City as requested. F. Once the audit is completed, Contractor will supply a copy of the audit to the City of Tukwila for review before a copy of the audit is sent to the taxpayer. Contractor will discuss any part of the audit with the City and answer any questions. G. Contractor will work with the business to help them understand that the audit is done correctly and in accordance to the law, and that payment is due. Doing this helps ensure that the audit record is submitted promptly, and that the business pays its future taxes correctly. H. In no event will this contract be construed to require the Contractor to act as a collection agency or to provide legal representation in a litigation process. I. This contract does not include services for refund requests audits. Definitions: "Audit Period" shall mean the period of time investigated and billed for during the audit or tax investigation, usually beginning 5 years before the audit commences and ending just before the final billing of the taxpayer of past unpaid taxes. "Revenue recovered" shall be construed to mean all funds received by the City for the audit period due to the final audit documents or negotiated settlement, including any funds received for audit period taxes, fees, or interest directly attributable to the commencing or performing of the audit, plus any additional funds received while the audit is being conducted directly attributable to the commencing or performing of the audit, such as an early payment by the taxpayer toward the expected audit - related taxpayer billing. Exhibit B Compensation: In consideration of the Contractor performing the services, the City agrees to pay the contractor according to the following schedule: For each audit or tax investigation, the City agrees to pay the Contractor a fee in the amount of twenty - five (25 %) of any revenue recovered due to the audit; the Contractor will not be compensated for money the City receives from taxes owed for periods before or after the audit period, nor does it include any funds received during the audit which cannot be clearly verified as being received as a direct result of work done for the City by the Contractor. Contractor will be paid only after City receives actual tax revenue and an invoice is submitted. Payments are due within thirty (30) days after receipt of such invoice. Interest up to 0.5% per month may be charged by the Contractor for late payments.