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HomeMy WebLinkAboutContracts & Agreements_126-2017 AGREEMENT FOR PROFESSIONAL SERVICES This agreement for the provision of services associated with the provision of sales, use and transaction tax audit and information ("Agreement") is made and entered in this June 20, 2017 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City)" and Hmderliter, De Llamas and Associates ("Consultant"). City and Consultant are sometimes individually referred to herein as a"Party" and, together, as the "Parties " RECITALS WHEREAS, sales, use and transaction tax revenues can be increased through a system of continuous monitoring, identification and correction of allocation errors, and WHEREAS, an effective program of sales and use tax management will improve identification of economic opportunities, provide for more accurate sales and use tax forecasting, assist in related revenue collections, and WHEREAS, City desires the combination of data entry, report preparation and analysis necessary to effectively manage its sales and use tax base, recover revenues erroneously allocated to other jurisdictions and allocation pool, and maximize its financial and economic planning, and NOW, THEREFORE, in consideration of the mutual promises contained herein, City and Consultant agree as follows ARTICLE 1 —ENGAGEMENT OF CONSULTANT 1 1 City hereby engages Consultant to provide sales, use and transaction tax audit and information services for City's Management Services / Finance Department (the "Services") 12 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the Industry providing like and similar types of Services ARTICLE 2— SERVICES OF CONSULTANT 21 The Services that Consultant shall perform are more particularly described In Exhibit "A," entitled "Scope of Services," which is attached hereto and incorporated herein by reference 22 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to State prevailing wage laws I Icaldjm\Agreemems\PSA with Hmderliter,de Llamas&Assoc sales tax.doc ARTICLE 3 --RESPONSIBILITIES OF CITY 3 1 City shall make available to Consultant information in its possession that may assist Consultant in performing the Services 32 City designates Danielle Garcia, Management Services / Finance Director, as City's representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services ARTICLE 4—PERFORMANCE OF SERVICES 41 The term of this Agreement shall be for a period of three (3) years commencing as of the Effective Date and shall end on June 19, 2020, unless terminated earlier as provided herein (the "Initial Term") City shall further have the option to extend the Initial Term of this Agreement for two additional one-year terms (the "Renewal Terms") on the same terms and conditions hereof by providing written notice to Consultant not less than ten (10) days prior to any Renewal Term 42 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to the City, consistent with City Council adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from Clay Staff ARTICLE 5 —PAYMENTS TO CONSULTANT 5.1 The total compensation during the Initial Term for Consultant's performance of the Services shall not exceed the amount Twenty Three Thousand Four Hundred dollars ($23,400), invoiced monthly in the amount of Six Hundred and Fifty dollars ($650) Consultant's invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the project City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant's invoice 52 Contractor shall be further paid fifteen percent (15%) of all new sales, transactions, and/or use tax revenue received by City as a result of audit and recovery work performed by consultant (hereafter referred to as "Audit Fees"), including any reimbursement from the Sales and Use Tax Compensation Fund as outlined in Section 97 68 of the Revenue and Taxation Code New sales, transactions and/or use tax revenue shall not include any amounts determined by City or Consultant to be increment attributable to causes other than Consultant's work pursuant to this agreement In the event that Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be the Contractor's responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the Audit Fee Said Audit bees will apply to state fund transfers received for back quarter reallocations and 11ca\djmlAgrecments\PSA with Hinderliter,de Llamas&Assoc sales tax.doc monies received in the first eight consecutive reporting quarters following completion of the audit by Consultant and confirmation of corrections by the State Board of Equalization Consultant shall provide City with an itemized quarterly invoice showing all formula calculations and amount due for Audit Fees 53 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing Any such notice shall be deemed delivered (i) on the date of delivery in person, (ii) five (5) days after deposit in first class registered mail, with return receipt requested, (iii) on the actual delivery date if deposited with an overnight courier, or (iv) on the date sent by facsimile, if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail, in each case properly posted and fully prepaid to the appropriate address set forth below, of such other address as a Party may provide notice in accordance with this section C.� Consultant Danielle Garcia, Director Andy Nickerson, President Management Services/Finance Department Hinderliter, De Llamas & Associates City of Redlands 1340 Valley Vista Drive, Suite 200 35 Cajon Street, Suite 222 Diamond Bar, CA 91765 PO Box 3005 (mailing) Redlands, CA 92373 Such addresses may be changed by notice to the other Party given in the same manner as provided above ARTICLE 6—INSURANCE AND INDEMNIFICATION 61 Insurance required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City 62 Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self-insured or exempt from the workers' compensation laws of the State of California Consultant shall provide City with Exhibit "B," entitled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference prior to performance of the Services 63 Consultant shall secure and maintain comprehensive general liability insurance with carriers acceptable to City Minimum coverage of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate for public liability, property 11 ca1damlAgreements\PSA with Hinderliter,de Llamas&Assoc -sales tax.doc damage and personal injury Is required City shall be named as an additional Insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City 64 Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement In the amount of One Million Dollars ($1,000,000) per claim made 65 Consultant shall secure and maintain business auto liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non-owned vehicles, and employee nonownership vehicles City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self insurance maintained by City 66 Consultant shall defend, Indemnify and hold harmless City and its elected officials, employees and agents from and against any and all claims, losses or liability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services ARTICLE 7--CONFIDENTIALY & CONFLICTS OF INTEREST 71 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or Investment that would be affected in any manner or degree by the performance of Consultant's Services Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement 72 Section 7056 of the State of California Revenue and Taxation Code specifically limits the disclosure of confidential taxpayer Information contained in the records of the State Board of Equalization This section specifies the conditions under which a city may authorize persons other than city officers and employees to examine State Sales and Use Tax records. The following conditions specified in Section 7056 (b) (1) of the State of California Revenue and Taxation Code are hereby made part of this agreement A Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the Board of Equalization provided to City pursuant to contract under the Bradley-Burns Uniform Sales and Use Tax Law B Consultant is required to disclose Information contained in, of derived from, those sales, transactions or use tax records only to an officer or employee of City who is authorized by resolution to examine the information I 1ca\djmlAgreements\PSA with Hmderliter,de Llamas&Assoc sates doc C During the term of this Agreement, Consultant is prohibited from performing consulting services for a retailers, as defined in California Revenue & Taxation Code Section 6015 D Consultant is prohibited from retaining the information contained in, or derived from those sales or transactions and use tax records, after this Agreement has expired Information obtained by examination of Board of Equalization records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code The resolution shall designate Consultants as a person, authorized to examine sales and use tax records and certify that this Agreement meets the requirements set forth above and in Section 7056 (b) (1) of the Revenue and Taxation Code 73 Consultant hereby provides a license to City to use Consultant's software The software shall only be used by City City shall not sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of the software The license granted hereunder shall not imply ownership by City of said software, rights of City to sell said software, or rights to use said software for the benefits of others This license is not transferrable Upon termination, the software license shall expire, all copies of the software shall be removed from City's computers and network, and all digital copies deleted or otherwise destroyed 74 Contractor acknowledges that the account data generated by City during the course of City operations is the property of the City At the termination of this Agreement, City data will be made available to City in a format acceptable to both City and Consultant 75 As used herein, the term "proprietary information" means any information which relates to Consultant's computer or data processing programs, data processing applications, routines, subroutines, techniques or systems, or business processes City shall hold in confidence and shall not disclose to any other part or any Consultant proprietary information in connection with this Agreement, or otherwise learned or obtained by City in connection with this Agreement The obligations imposed by this paragraph shall survive any expiration or termination of this Agreement The provisions of this Article 7 shall not apply to any information that is public information 76 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant A Does not make a governmental decision whether to (i) approve a rate, rule or regulation, or adopt or enforce a City law, (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize the City to enter into, modify or renew a contract, (iv) grant City approval to a contract that requires City approval and to which I 1ca\djmlAgreementsTSA with Hinderliter de Llamas&Assoc -sales tax.doc City is a parry, or to the specifications for such a contract, (v) grant City approval to a plan, design.,report, study or similar item, (vi) adopt or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof B Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302 77 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Clerk ARTICLE 8 --GENERAL CONSIDERATIONS 8 1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Parry shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in-house counsel by a Party 82 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement 83 Records, drawings, designs, cost estimates, electronic data files, databases and any other documents developed by Consultant in connection with its performance of the Services, and any copyright interest in such documents, shall become the property of City and shall be delivered to City upon completion of the Services, or upon the request of City Any reuse of such documents, and any use of incomplete documents, shall be at City's sole risk 84 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor Neither City nor its agents shall have control over the conduct of Consultant or Consultant's employees, except as herein set forth Consultant shall supply all necessary tools and instrumentalities required to perform the Services Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation 8 S Unless earlier terminated as provided for below, this Agreement shall terminate upon completion and acceptance of the Services by City This Agreement may be terminated 11ca\djm\AgreementsTSA with Hmderliter de Llamas&Assoc sales t doe by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination 86 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement Such books shall be available at reasonable times for examination by City at the office of Consultant 87 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prioi negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement Except as otherwise provided fol herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant 8 8 This Agreement shall be governed by and construed in accordance with the laws of the State of California 89 If one or more of the sentences, clauses, paragraphs of sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement 11ca\djm\Agreements\PSA with Hinderliter,de Llamas&Assoc sales tax doe IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement CITY OF REDLA S HINDERLITER,DE LLAMAS &ASSOCIATES By By Paul Barich, Mayor Pro Tempore Andy Nic erson, President Attest Xe Donaldson, City Clerk 11caWjm\Agreements\PSA with Hinderliter,de Llamas&Assoc -sales ttax.doc EXHIBIT "A" TO PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF REDLANDS AND HINDERLITER, DE LLAMAS AND ASSOCIATES Consultant shall perform the following services A SALES TAX AND ECONOMIC ANALYSIS 1 Contractor shall maintain Its database that identifies the name, address and quarterly allocations of all sales tax producers within the City of Redlands for the most current and all quarters back to fiscal year 194-1985 This database will be utilized to generate special reports to City on- mayor sales tax producers by rank and category, sales tax activity by categories, business district areas, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales tax B IDENTIFICATION OF ERRORS AND REVENUE MAXIMIZATION OPPORTUNITIES 1 Field Surveys Field inventories of the City's business and industrial areas will be conducted every 10-12 months to identify businesses located within the City that appear to be under-reporting revenues or are not on the BOE allocation rolls Specially trained field auditors, using the latest in mapping, GPS and digital recording technology,will document not only the existence of sales tax producing businesses but also any relevant factors such as size, presence of a large stock of goods, will-call windows and any specific references to sales activity This process identifies a wide range of registration errors including erroneous consolidation of multiple outlets, misreporting of point of sale from an erroneous location and delays in reporting new outlets 2 Tax Area Code (TAC) Review HdL will review every active account on the BOE's allocation rolls reporting $50 or more in local tax to ensure proper TAC assignment Government and private sector mapping and GIS databases are used extensively in this process These programs are important because physical canvassing will not reveal businesses with missing or incomplete signage, or those that are home-based A complete TAC review will be performed at least once every 9-12 months 3 Deviation Assessment HdL will apply proprietary queries and analyses to its statewide allocation database to Identify all accounts for which there has been a substantial change in allocation pattern HdL's database, unmatched In size, comprises over 98 5% of all sales and use tax transactions in California and allows for the most comprehensive audits in the state The deviation review will be performed every three months and is far more sophisticated and thorough than I 1ca\djm\Agreements\PSA with Hmderthter de Llamas&Assoc sales t x.doc a review of the BOE's published Quarterly Distribution Report The review will be applied to direct allocations and to the county pools, and allows for a much broader view and understanding of what has happened in any given quarter Well- founded leads are quickly culled from this process, often without the need for time-consuming manual reviews of taxpayer files. This allows for faster processing and less time used for preparing submittals This in turn lowers recovery fees by reducing the amount of prior quarter revenue requiring redistribution 4 Use Tax Errors and Onnortunities HdL will analyze the use tax allocation pools of the 58 counties and the state each quarter to identify instances where a taxpayer may have misidentified a transaction as use tax rather than sales tax Further specialized reviews and techniques will be employed to identify direct allocation opportunities of local use tax State Board of Equalization Regulation 1802(d) allows for direct allocation of local use tax on qualifying individual sales or purchases over$500,000 Out-of-state and foreign-based companies in particular often have large transactions that meet the criteria for direct allocation under this section Under Regulation 1699 6, businesses and organizations (including local government agencies)with aggregate purchases subject to use tax of least $500,000 per year can apply for a Use Tax Direct Payment Permit, allowing for direct allocation of the corresponding local share Finally, under a resolution adopted by BOE in December 1994, a construction contractor who enters into a contract equal to or greater than$5,000,000 may elect to obtain a sub-permit for the job site resulting in a direct allocation of local use tax to the jurisdiction where the jobsite is located 5 Regulation 1699 Evaluations BOE Regulation 1699 controls when and where a permit should be issued to a given business location Wholesalers, contractors, processors, manufacturers, and other non-retail businesses that do not normally sell merchandise often conduct occasional sales, self-accrue use tax or are levied deficiency assessments by the state HdL will use proprietary methods for finding companies that should be taking out permits so that those revenues are allocated to the City C RECOVERY OF MISALLOCATED REVENUE 1 Development of Correction Data Preliminary lead lists developed through any of the aforementioned audit programs will be further culled using a variety of programs and databases to reduce the need for taxpayer contact Companies remaining in the audit database will then be contacted by a specialized audit unit whose members are specifically selected and trained to interview tax preparers and marketing, warehouse and management staff Taxpayer interviews will I Icaldim\Agreements\PSA with Hinderliter de Llamas&Assoc -sales a doe always be conducted in a business friendly, non-intrusive manner that emphasizes cooperation and protection of confidentiality 2 Documentation Telephone contacts will often be accompanied by a written follow-up questionnaire concerning business activities, a specific one-time transaction or a written confirmation of our findings This documentation is always filed with the petition to minimize BOE processing time Solid documentation and follow-up lowers client fees By reducing the number of quarters requiring retroactive adjustment and ensures faster recovery of misallocated revenues 3 Citv Review To avoid potential conflicts with a City's in-house audit efforts, HdL will prepare a list of misallocated or under-reporting businesses for City officials to review and authorize prior to any invoicing This line item, account- level approval process is an important step in eliminating any misunderstandings or disagreements regarding what may be considered a valid audit"find " 4 Preparation and Submittal of Corrections Petitions will be prepared (BOE Form 549-5 or 549-L)that notify the BOE the existence and nature of the misallocation All relevant and available supporting documentation is included Copies of all transmittal forms and correspondence with the BOE and taxpayers are sent to City staff 5 Continuous Follow-un HdL employs a full-time case manager whose responsibility is to monitor and follow-up on case inventory An aging report will be updated and reviewed on a monthly basis and the appropriate follow-up is initiated on cases that are taking an inordinate amount of time to correct This follow-up emphasizes partnership and cooperation with BOE Allocation Group staff HdUs continuous efforts to check on the status of submittals are made to ensure that corrections are being pursued Timely follow-up on cases reduces the time it takes for the City to recover its revenue 6 Appeals HdL cases will be thoroughly researched, vetted and documented prior to submittal This ensures the fastest possible processing times, and reduces the numbei of cases that are initially disclaimed and must be further researched and defended through a very lengthy BOE appeals process. Nearly all HdL cases are resolved favorably at either the first or second levels of the BOE petition process described in Regulation 1807 HdL has cultivated close working relationships with the BOE Appeals Division and with each of the elected Board Members When an appeal is required, HdL has the necessary expertise and access to competently and aggressively represent client interests Having a large number of cases on appeal may be presented by some vendors as evidence of a more sophisticated and aggressive audit program It should be viewed, however, as an [Icaldjm\Agreements\PSA with Hinderliter,de Llamas&Assoc sales tax.doc indication that inadequate supporting documentation tends to require more case appeals and lead to otherwise unnecessary procedural delays D MANAGEMENT SERVICES I HdL Database Reports and TraininE HdL will maintain Redlands' detailed sales tax data back to t989 and will provide City staff with unlimited access to its quarterly updated web-based sales tax system to facilitate "in-house" analysis and printing of reports The system allows City staff to search, print and export their sales tax data for a variety of financial, management and planning functions The City's archived quarterly sales tax reports can also be accessed through the online sales tax application HdUs geo-area feature supports use of address ranges, which ensures the inclusion of all appropriate BOE registrations and also allows City staff to create and modify geo-areas without a separate GIS system HdL will also support interfacing with the City's GIS by including accurately geocoded latitude and longitude for each business. This data can include all data fields including historical allocation information and can be quickly exported by City staff on demand using HdUs Sales Tax Web Application Additionally, City created shape files can be used to define a Geo-area, which would identify related businesses by latitude and Iongitude Training on use of the software and ongoing upgrades will be provided at no additional charge. Quarterly sales tax reports will be provided on both a cash and adjusted basis Cash reports reconcile to BOE payments and are necessary for any revenue sharing agreements that the City might have in place The adjusted reports shift payment aberrations (double-up payments, BOE audit adjustments, etc ) into the quarter where the sales occurred to accurately show the City's true economic trends The quarterly sales tax data will be presented in reports for major sales tax producers by both rank and category, analysis of sales tax activity by category, business or areas specified by the City HdUs quarterly sales tax reports will include a listing of top sales tax producers and comparisons with both regional and statewide trends Retailer information will be provided in grouped form or in business by business detail Quarterly information will also include tables that track year-to-date receipts and show comparisons with past periods to measure progress toward achieving the City's annual budgeted revenue amount HdL staff also prepares sales and use tax projections for proposed development projects, responds to technical questions relating to BOE processes and regulations, and monitors revenue sharing agreements 11ca1djm\Aareements\PSA with Hinde€ite€ de Llamas&Assoc sales ttax doc 2 Budget Protections and Monitorzna HdL will deliver a comprehensive, detail- oriented method for projecting and monitoring client sales and use tax revenues that has proved to result in estimates that fall within I% of actual receipts two- thirds of the time Initial and mid-year projections will be made by factoring out payment aberrations that skew the base revenue and factoring in known changes such as new or closed businesses HdL will also incorporate information from over 90 economic sources as well as information gathered from client meetings to develop economic factors to apply to individual retail business segments, the results will be combined into a single estimate of anticipated revenue HdL will further enhance its projections by contacting builders of large-scale development projects to better time and estimate the value of potential use tax payments into its estimates Five year forecasts will also be provided 3 Use Tax Maximization Proaram HdL's sales tax team will include a staff of specialists who review new business startups that might present potential self- assessed use tax opportunities, meets with contractors to advise on sub-permits and reporting procedures and provides materials and advice on purchasing companies and direct payment permits The firm will monitor major construction projects to make sure that any use tax generated is properly allocated to the job site's host jurisdiction 4 Leazslative Updates, HdL will prepare Legislative Updates for clients to keep them informed on any changes that may impact local revenues The firm will also provide Issue Updates which are similar in nature but deal with specific issues such as Sales Tax Participation Agreements Each issue will be presented in detail so that Agency staff is better equipped to handle questions on that topic from their community leaders 1 Icaldjm\Agreements\PSA with Hmderliter de Llamas&Assoc sates tax.doc EXHIBIT "B" WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees CHECK ONE ✓ I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §186 1) I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self-insure, or a certification of workers' compensation insurance I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct. Hinderliter,De Llamas&Associates Date. ByQQ:S-- - – — Andy Nickerson, President I 1ca1djm\Agreements\PSA with Hinderliter,de Llamas&Assoc sales taax.doc