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.