Gilardi & Co LLC 1111
CITY OF RANCHO PALOS VERDES
PROFESSIONAL/TECHNICAL SERVICES AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered into this 6 day of
.aovivcAi , 201)Wby and between the City of Rancho Palos Verdes (hereinafter
referred Ito as the "CITY") and Gilardi & Co, LLC (hereafter referred to as
"CONSULTANT").
IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto agree as
follows:
ARTICLE 1
SCOPE OF SERVICES
1.1 Project Description
The Project is described as follows: Telecommunication Utility User Tax
Refund Administration.
1.2 Description of Services
CONSULTANT shall: administer the claims process for eligible City
taxpayers to receive a refund of the City's utility user tax imposed on
telecommunications services for the claim period beginning August 13, 2013 and ending
on December 31, 2014, as described in the CITY's Request for Proposals, which is
attached hereto as Exhibit "A" and incorporated herein by this reference, and in
CONSULTANT's Proposal, which is attached hereto as Exhibit "B" and incorporated
herein by this reference. In the event of any conflict between the terms of this
Agreement and incorporated documents, the terms of this Agreement shall control. In
the event of any conflict between Exhibits "A" and "B," the terms of Exhibit "A" shall
control.
1.3 Schedule of Work
Upon receipt of written Notice to Proceed from the CITY, CONSULTANT
shall perform with due diligence the services requested by the CITY. Time is of the
essence in this Agreement. CONSULTANT shall not be responsible for delay, nor shall
CONSULTANT be responsible for damages or be in default or deemed to be in default
by reason of strikes, lockouts, accidents, or acts of God, or the failure of CITY to furnish
timely information or to approve or disapprove CONSULTANT's work promptly, or delay
or faulty performance by CITY, other consultants/contractors, or governmental
agencies, or any other delays beyond CONSULTANT's control or without
CONSULTANT's fault.
ARTICLE 2
COMPENSATION
2.1 Fee
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CITY agrees to compensate CONSULTANT an amount not to exceed
eighty thousand dollars ($80,000) for the services described in Article 1.
2.2 Terms of Compensation
CONSULTANT shall submit monthly invoices for the percentage of work
completed in the previous month. CITY agrees to authorize payment for all undisputed
invoice amounts within thirty (30) days of receipt of each invoice. CITY agrees to use
its best efforts to notify CONSULTANT of any disputed invoice amounts or claimed
completion percentages within ten (10) days of the receipt of each invoice. However,
CITY's failure to timely notify CONSULTANT of a disputed amount or claimed
completion percentage shall not be deemed a waiver of CITY's right to challenge such
amount or percentage.
Additionally, in the event CITY fails to pay any undisputed amounts due
CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY
agrees that CONSULTANT shall have the right to consider said default a total breach of
this Agreement and be terminated by CONSULTANT without liability to CONSULTANT
upon ten (10) working days advance written notice.
2.3 Additional Services
CITY may request additional specified work under this Agreement. All
such work must be authorized in writing by the CITY's City Manager prior to
commencement. CONSULTANT shall perform such services, and CITY shall pay for
such additional services in accordance with CONSULTANT's Schedule of Hourly Rates,
which is within Exhibit "B".
2.4 Term of Agreement
This Agreement shall commence on December 16, 2014 and shall
terminate on December 31, 2015, unless sooner terminated pursuant to Article 4 of this
Agreement or extended by the mutual written agreement of the parties.
ARTICLE 3
INDEMNIFICATION AND INSURANCE
3.1 Indemnification
To the maximum extent permitted by law, CONSULTANT shall defend,
indemnify, and hold the CITY, its officials, officers, employees, agents and independent
contractors serving in the role of CITY officials, and volunteers (collectively
"Indemnitees") free and harmless from any and all claims, demands, causes of action,
costs, expenses, liabilities, losses, damages or injuries, in law or equity, to property or
persons, including wrongful death (collectively "Claims"), in any manner arising out of or
incident to any acts or omissions of CONSULTANT, its officials, officers, employees or
agents in connection with the performance of this Agreement, including without
limitation the payment of all consequential damages, attorneys' fees, and other related
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costs and expenses, except for such Claims arising out of the sole negligence or willful
misconduct of the Indemnitees. With respect to any and all such Claims,
CONSULTANT shall defend Indemnitees at CONSULTANT's own cost, expense, and
risk and shall pay and satisfy any judgment, award, or decree that may be rendered
against Indemnitees. CONSULTANT shall reimburse Indemnitees for any and all legal
expenses and costs incurred by each of them in connection therewith or in enforcing the
indemnity herein provided. CONSULTANT's obligation to indemnify shall not be
restricted to insurance proceeds, if any, received by CONSULTANT or Indemnitees. All
duties of CONSULTANT under this Section shall survive termination of this Agreement.
3.2 General Liability
CONSULTANT shall at all times during the term of the Agreement carry,
maintain, and keep in full force and effect, a policy or policies of Commercial General
Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each
occurrence and two million dollars ($2,000,000) general aggregate for bodily injury,
death, loss or property damage for products or completed operations and any and all
other activities undertaken by CONSULTANT in the performance of this Agreement.
Said policy or policies shall be issued by an insurer admitted or authorized to do
business in the State of California and rated in A.M. Best's Insurance Guide with a
rating of A:VII or better.
3.3 Automobile Liability
CONSULTANT shall at all times during the term of this Agreement obtain,
maintain, and keep in full force and effect, a policy or policies of Automobile Liability
Insurance, with minimum of one million dollars ($1,000,000) per claim and occurrence
and two million dollars ($2,000,000) in the aggregate for bodily injuries or death of one
person and five hundred thousand dollars ($500,000) for property damage arising from
one incident. Said policy or policies shall be issued by an insurer admitted or
authorized to do business in the State of California and rated in A.M. Best's Insurance
Guide with a rating of A:VII or better.
3.4 Worker's Compensation
CONSULTANT agrees to maintain in force at all times during the
performance of work under this Agreement worker's compensation insurance as
required by the law. CONSULTANT shall require any subcontractor similarly to provide
such compensation insurance for their respective employees.
3.5 Notice of Cancellation
(a) All insurance policies shall provide that the insurance coverage
shall not be cancelled or modified by the insurance carrier without thirty (30) days prior
written notice to CITY, or ten (10) days notice if cancellation is due to nonpayment of
premium. Additionally, CONSULTANT shall provide immediate notice to the CITY if
CONSULTANT receives a cancellation or policy revision notice from the insurer.
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(b) CONSULTANT agrees that it will not cancel or reduce any required
insurance coverage. CONSULTANT agrees that if it does not keep the aforesaid
insurance in full force and effect, CITY may either immediately terminate this Agreement
or, if insurance is available at a reasonable cost, CITY may take out the necessary
insurance and pay, at CONSULTANT's expense, the premium thereon.
3.6 Entire Policy and Certificate of Insurance
At all times during the term of this Agreement, CONSULTANT shall
maintain on file with the CITY Clerk certificates of insurance showing that the aforesaid
policies are in effect in the required amounts. The commercial general liability policy
shall contain an endorsement naming the CITY, its officers, agents and employees as
additional insureds.
3.7 Primary Coverage
The insurance provided by CONSULTANT shall be primary to any
coverage available to CITY. The insurance policies (other than workers compensation
and professional liability) shall include provisions for waiver of subrogation.
ARTICLE 4
TERMINATION
4.1 Termination of Agreement
(a) This Agreement may be terminated at any time, with or without
cause, by the CITY upon thirty (30) days prior written notice or by CONSULTANT upon
ninety (90) days prior written notice. Notice shall be deemed served if completed in
compliance with Section 6.15.
(b) In the event of termination or cancellation of this Agreement by
CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT,
CONSULTANT shall be paid compensation for all services performed by
CONSULTANT, in an amount to be determined as follows: for work satisfactorily done
in accordance with all of the terms and provisions of this Agreement as determined by
the CITY, CONSULTANT shall be paid an amount equal to the percentage of services
performed prior to the effective date of termination or cancellation in accordance with
the work items; provided, in no event shall the amount of money paid under the
foregoing provisions of this paragraph exceed the amount which would have been paid
to CONSULTANT for the full performance of the services described in this Agreement.
ARTICLE 5
OWNERSHIP OF DOCUMENTS
5.1 Ownership of Documents and Work Product
All final documents, reports, information, data, exhibits, images, video files
and media created or developed by CONSULTANT pursuant to this Agreement
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("Written Products") shall be and remain the property of the CITY without restriction or
limitation upon its use, duplication or dissemination by the CITY. All Written Products
shall be considered "works made for hire," and all Written Products and any and all
intellectual property rights arising from their creation, including, but not limited to, all
copyrights and other proprietary rights, shall be and remain the property of the CITY
without restriction or limitation upon their use, duplication or dissemination by the CITY.
CONSULTANT shall not obtain or attempt to obtain copyright protection as to any
Written Products.
CONSULTANT hereby assigns to the CITY all ownership and any and all
intellectual property rights to the Written Products that are not otherwise vested in the
CITY pursuant to the paragraph directly above this one.
CONSULTANT warrants and represents that it has secured all necessary
licenses, consents or approvals to use any instrumentality, thing or component as to
which any intellectual property right exists, including computer software, used in the
rendering of the services and the production of all Written Products produced under this
Agreement, and that the CITY has full legal title to and the right to reproduce the Written
Products. CONSULTANT shall defend, indemnify and hold the CITY, and its elected
officials, officers, employees, servants, attorneys, designated volunteers, and agents
serving as independent contractors in the role of CITY officials, harmless from any loss,
claim or liability in any way related to a claim that CITY's use of any of the Written
Products is violating federal, state or local laws, or any contractual provisions, or any
laws relating to trade names, licenses, franchises, copyrights, patents or other means of
protecting intellectual property rights and/or interests in products or inventions.
CONSULTANT shall bear all costs arising from the use of patented, copyrighted, trade
secret or trademarked documents, materials, equipment, devices or processes in
connection with its provision of the services and Written Products produced under this
Agreement. In the event the use of any of the Written Products or other deliverables
hereunder by the CITY is held to constitute an infringement and the use of any of the
same is enjoined, CONSULTANT, at its expense, shall: (a) secure for CITY the right to
continue using the Written Products and other deliverables by suspension of any
injunction, or by procuring a license or licenses for CITY; or (b) modify the Written
Products and other deliverables so that they become non-infringing while remaining in
compliance with the requirements of this Agreement. This covenant shall survive the
termination of this Agreement.
Upon termination, abandonment or suspension of the Project, the
CONSULTANT shall deliver to the CITY all Written Products and other deliverables
related to the Project without additional cost or expense to the CITY. If CONSULTANT
prepares a document on a computer, CONSULTANT shall provide CITY with said
document both in a printed format and in an electronic format that is acceptable to the
CITY.
ARTICLE 6
GENERAL PROVISIONS
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6.1 Representation
The CITY representative shall be the Director of Finance or his or her
designee, and CONSULTANT shall notify CITY of CONSULTANT's designated
representative. These individuals shall be the primary contact persons for the parties
regarding performance of this Agreement.
6.2 Fair Employment Practices/Equal Opportunity Acts
In the performance of this Agreement, CONSULTANT shall comply with all
applicable provisions of the California Fair Employment Practices Act (California
Government Code Sections 12940-48), the applicable equal employment provisions of
the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities
Act of 1990 (42 U.S.C. § 11200, et seq.).
6.3 Audit
The CITY or its representative shall have the option of inspecting,
auditing, or inspecting and auditing all records and other written materials used by
CONSULTANT in preparing its billings to the CITY as a condition precedent to any
payment to CONSULTANT. CONSULTANT will promptly furnish documents requested
by the CITY. Additionally, CONSULTANT shall be subject to State Auditor examination
and audit at the request of the CITY or as part of any audit of the CITY, for a period of
three (3) years after final payment under this Agreement.
6.4 Personnel
CONSULTANT represents that it has, or shall secure at its own expense,
all personnel required to perform CONSULTANT's services under this Agreement.
CONSULTANT shall make reasonable efforts to maintain the continuity of
CONSULTANT's staff who are assigned to perform the services hereunder and shall
obtain the Director's approval of all proposed staff members who will perform such
services. CONSULTANT may associate with or employ associates or subcontractors in
the performance of its services under this Agreement, but at all times shall
CONSULTANT be responsible for its associates and subcontractors' services.
6.5 CONSULTANT's Representations
CONSULTANT represents, covenants and agrees that: a) CONSULTANT
is licensed, qualified, and capable of furnishing the labor, materials, and expertise
necessary to perform the services in accordance with the terms and conditions set forth
in this Agreement; b) there are no obligations, commitments, or impediments of any kind
that will limit or prevent CONSULTANT's full performance under this Agreement; c) to
the extent required by the standard of practice, CONSULTANT has investigated and
considered the scope of services performed, has carefully considered how the services
should be performed, and understands the facilities, difficulties and restrictions
attending performance of the services under this Agreement.
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6.6 Conflicts of Interest
CONSULTANT agrees not to accept any employment or representation
during the term of this Agreement or within twelve (12) months after completion of the
work under this Agreement which is or may likely make CONSULTANT "financially
interested" (as provided in California Government Code Sections 1090 and 87100) in
any decisions made by CITY on any matter in connection with which CONSULTANT
has been retained pursuant to this Agreement.
6.7 Legal Action
(a) Should either party to this Agreement bring legal action against the
other, the validity, interpretation, and performance of this Agreement shall be controlled
by and construed under the laws of the State of California, excluding California's choice
of law rules. Venue for any such action relating to this Agreement shall be in the Los
Angeles County Superior Court.
(b) If any legal action or other proceeding, including action for
declaratory relief, is brought for the enforcement of this Agreement or because of an
alleged dispute, breach, default or misrepresentation in connection with this Agreement,
the prevailing party shall be entitled to recover reasonable attorneys' fees, experts' fees,
and other costs, in addition to any other relief to which the party may be entitled.
(c) Should any legal action about a project between CITY and a party
other than CONSULTANT require the testimony of CONSULTANT when there is no
allegation that CONSULTANT was negligent, CITY shall compensate CONSULTANT
for its testimony and preparation to testify at the hourly rates in effect at the time of such
testimony.
6.8 Assignment
Neither this Agreement nor any part thereof shall be assigned by
CONSULTANT without the prior written consent of the CITY. Any such purported
assignment without written consent shall be null and void, and CONSULTANT shall hold
harmless, defend and indemnify the CITY and its officers, officials, employees, agents
and representatives with respect to any claim, demand or action arising from any
unauthorized assignment.
Notwithstanding the above, CONSULTANT may use the services of
persons and entities not in CONSULTANT's direct employ, when it is appropriate and
customary to do so. CONSULTANT's use of subcontractors for additional services shall
not be unreasonably restricted by the CITY provided CONSULTANT notifies the CITY in
advance.
6.9 Independent Contractor
CONSULTANT is and shall at all times remain, as to the CITY, a wholly
independent contractor. Neither the CITY nor any of its agents shall have control over
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the conduct of CONSULTANT or any of the CONSULTANT's employees, except as
herein set forth, and CONSULTANT is free to dispose of all portions of its time and
activities which it is not obligated to devote to the CITY in such a manner and to such
persons, firms, or corporations as the CONSULTANT wishes except as expressly
provided in this Agreement. CONSULTANT shall have no power to incur any debt,
obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an
agent. CONSULTANT shall not, at any time or in any manner, represent that it or any of
its agents, servants or employees, are in any manner agents, servants or employees of
CITY. CONSULTANT agrees to pay all required taxes on amounts paid to
CONSULTANT under this Agreement, and to indemnify and hold the CITY harmless
from any and all taxes, assessments, penalties, and interest asserted against the CITY
by reason of the independent contractor relationship created by this Agreement.
CONSULTANT shall fully comply with the workers' compensation law regarding
CONSULTANT and its employees. CONSULTANT further agrees to indemnify and
hold the CITY harmless from any failure of CONSULTANT to comply with applicable
workers' compensation laws. The CITY shall have the right to offset against the amount
of any fees due to CONSULTANT under this Agreement any amount due to the CITY
from CONSULTANT as a result of its failure to promptly pay to the CITY any
reimbursement or indemnification arising under this Article.
6.10 Titles
The titles used in this Agreement are for general reference only and are
not part of the Agreement.
6.11 Entire Agreement
This Agreement, including any other documents incorporated herein by
specific reference, represents the entire and integrated agreement between CITY and
CONSULTANT and supersedes all prior negotiations, representations or agreements,
either written or oral. This Agreement may be modified or amended, or provisions or
breach may be waived, only by subsequent written agreement signed by both parties.
6.12 Construction
In the event of any asserted ambiguity in, or dispute regarding the
interpretation of any matter herein, the interpretation of this Agreement shall not be
resolved by any rules of interpretation providing for interpretation against the party who
causes the uncertainty to exist or against the party who drafted the Agreement or who
drafted that portion of the Agreement.
6.13 Non-Waiver of Terms, Rights and Remedies
Waiver by either party of any one or more of the conditions of performance
under this Agreement shall not be a waiver of any other condition of performance under
this Agreement. In no event shall the making by the CITY of any payment to
CONSULTANT constitute or be construed as a waiver by the CITY of any breach of
covenant, or any default which may then exist on the part of CONSULTANT, and the
Page 8 of 10
1110
making of any such payment by the CITY shall in no way impair or prejudice any right or
remedy available to the CITY with regard to such breach or default.
6.14 Severability
If any term or portion of this Agreement is held to be invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
of this Agreement shall continue in full force and effect.
6.15 Notice
Except as otherwise required by law, any notice, payment or other
communication authorized or required by this Agreement shall be in writing and shall be
deemed received on (a) the day of delivery if delivered by hand or overnight courier
service during CITY's regular business hours or (b) on the third business day following
deposit in the United States mail, postage prepaid, to the addresses listed below, or at
such other address as one party may notify the other:
To CITY:
Director of Finance
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
To CONSULTANT:
Responsible Person: Daniel Burke
Address:
3301 Kerner Blvd.
San Rafael, CA 94901
[Signatures on next page.]
Page 9 of 10
� a
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date and year first above written.
Dated: i €Cfvt41 .1 ( )OIi Gilardi & Co, LL ONSULTANT")
By:
Printed Nam
Title: CO)
By: DO?d/
Printed Name: ,Da H `-e/ 34 !
Title: /)rte.t.✓ Avg
//74,-
Dated: CITY OF RANCHO PALOS VERDES
("CITY")
By:
M. or t r
ATTEST. APPROVED AS TO FORM
BY: / By: ,
Page 10 of 10
•
Exhibit "A":
City's Request For Proposals
•
City of Rancho Palos Verdes
Request for Proposal
Telecommunication
Utility User Tax Refund
Due: On or Before 5:00 p.m.
Friday, November 7, 2014
� r
City of Rancho Palos Verdes
Finance Department
30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275
Phone: (310) 377-0360
Issued October 23, 2014
11111 II
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 2
CITY OF RANCHO PALOS VERDES REQUEST FOR PROPOSAL
TELECOMMUNICATION UTILITY USER TAX REFUND
I. INTRODUCTION AND PROJECT
The City of Rancho Palos Verdes (City) is a scenic, residential coastal community, with a
population of 42,000, located on the Palos Verdes Peninsula of southwestern Los Angeles County.
City invites proposals for managing the claims process for refund of City's Utility User's Tax
(UUT) as applied to telephone communication services. Through this process City wants to be
assured of the most efficient and cost-effective plan for class administration. City's goal is to
make the refund process as efficient as possible while requiring reasonable substantiation of the
total amount of tax paid during the refund period.
To that end,City affords your organization an opportunity to provide a proposal and cost estimate,
including suggestions for handling the administration in order to control expense and facilitate
expeditious refund of UUT to City's residents and other taxpayers. City will select one firm,based
on demonstrated competence and a cost effective approach. Claims administrators must be able
to proceed immediately upon acceptance of proposal.
II. BACKGROUND
On August 19, 2014, City Council took action to suspend collection of UUT from
telecommunication providers. During the week of August 25, 2014, City mailed letters directing
suspension of collection of UUT to the ninety-two (92) entities that collect and remit UUT to the
City based on telecommunication services provided to City's residents. City expects that
telecommunication providers may require more than one billing cycle to suspend collection of
UUT, as system re-programming and other administrative procedures may be necessary.
All UUT collected from telecommunication providers since August 13,2013,(the one-year refund
claim period allowed by City's Municipal Code), has been, or will be, transferred to the UUT
Telecommunication Claim Account established by City Council. Although the exact amount is
not yet know, it is expected to be about $700,000. City will adjust the amount of funds available
for refund once all telephone service providers have completely terminated collection and
remittance of UUT. The total amount is not likely to exceed $850,000.
On October 15, 2014, City was served with a class action complaint seeking taxpayer refunds of
UUT collected and remitted by telecommunication providers since August 1, 2006. Class
certification has not yet been established in this recently filed lawsuit. The scope of services
requested in this Request for Proposal does not include matters relating to the pending litigation.
City planned, adopted, and is proceeding with its UUT refund process independent of the claims
in the pending litigation.
•
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 3
II. REFUND CLAIM PROCESS
City is moving forward with a refund claim process for its taxpayer residents during the Refund
Recovery Period of August 2013 through December 2014. City intends to allow claimants to seek
refund of all UUT taxes imposed during the Refund Recovery Period.
Through the refund claim process, claimants may choose one of three refund options(per wireless
phone plan or land line phone plan):
• Option One-Flat Refund—Claimant shall complete and return a UUT refund claim form
to receive a one-time $25 payment in full satisfaction of claim.
• Option Two—Extrapolated Refund—Claimant shall submit a claim form along with one
monthly billing statement showing City's UUT applied to claimant's telephone bill. The
amount of UUT taxed on the provided billing statement will be multiplied by the seventeen
(17) months in the Refund Recovery Period for an estimated refund to claimant in full
satisfaction of the claim.
• Option Three- Exact Refund—Claimant required to submit full documentation of each
and every telephone billing statement during the Refund Recovery Period to receive a
refund of the exact amount of UUT paid in full satisfaction of the claim
UUT Refund Claim Form
For each of the three refund options,claimants must complete a UUT refund claim form certifying
basic information (i.e., name, address, cellular or land line phone number, account number,
telephone service provider name, and a records release authorization permitting City to request
from claimant's service provider claimant's telephone billing records for the Refund Recovery
Period), and a release of the City from any further claims of telecommunications UUT arising
during the Refund Recovery Period.
Claimants who select option two or three must submit sufficient documentation along with their
claim form. Documentation must have a service address(for land line accounts)or mailing address
(for wireless accounts')within City, and UUT imposed during the Refund Recovery Period.
Claims forms must be submitted within six (6) months of the date of mailing of Notice of UUT
Refund to all addresses within City that receive mail delivery, or within six(6)months of the date
1 For wireless phone service,each plan may have multiple user phone numbers/lines,but only one claim is allowed
per plan where the UUT is charged on a single invoice covering multiple phone numbers under a single plan.Claims
administration should be capable of cross-checking refund claims using claimant service and mailing addresses to
determine if multiple claims were submitted from same address. If so,Claims Administrator is to check claim forms
to ensure different account numbers/providers are listed to avoid multiple claimants on same plan submitting
separate claims for flat refund amount option.
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 4
of publication of Notice of UUT Refund, whichever is later. Claims are timely submitted if
received within that timeframe, or if electronically submitted that day by midnight.
City has taken the initiative to pre-draft language for the Claim Notice and Claim Form (see
Appendix). City invites suggestions from claims administrator, subject to City approval.
III. SCOPE OF SERVICES REQUIRED
All proposals must be made on the basis of, and either meet or exceed,the requirements contained
herein. Administration services shall include, but are not limited to, data hygiene, dissemination
of notices, handling of returned mail, telephone support, website design and maintenance, claims
processing, reporting, fund management, distribution services, and related IRS tax compliance.
City is seeking the services of a highly qualified claims administration provider to assist with the
aforementioned refund claim process in the following key areas:
• Publication of Notice of Availability of UUT Refund — Claims administration provider
shall publish notice of City Council's action to provide UUT refunds. Advertisements shall
be publicized in the Daily Breeze on two consecutive Tuesdays and Sundays, and in Palos
Verdes Peninsula News on two consecutive Thursdays (dates to be approved by City).
Claims administration provider shall provide City with draft of advertisement for final
approval, prior to publishing.
• Mailing List—City does not have the ability to identify by name or address the telephone
communication services users who paid City's UUT on their telephone bills and are eligible
for refunds, or the total number of potential refund claimants.Though such precise data is
not available, City has a population of approximately 42,000. There are approximately
15,500 households within City. There are more than 16,000 housing units within City.
City is entirely located within the 90275 zip code that receive mail delivery. The claims
administration provider shall be responsible for purchasing or otherwise obtaining a
database with the mailing list of all City addresses within the 90275 zip code. A copy of
the mailing list database shall also be supplied to City.
• Refund Claim Notice Letters (with claim forms) — Notices are to be mailed to every
residential and commercial address within City that receives mail delivery. Notices may
be addressed to "resident."
o Notice of UUT Refund Claim
o Returnable Refund Claim Form
o Self-Addressed Pre-Paid Postage Envelope (for return of claim forms by mail)
O 2nd Notice of UUT Refund Claim (reminder notice mailed to every address; sent at
a date during pending claim period to be identified by City in consultation with
claims administrator)—to be issued as a post card notice with basic info on where
to access website or otherwise obtain claim forms, and reminder notice of deadline
for claim submission
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City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 5
• Claim Forms — Prepare claim form with the following requirements that each claimant
must certify and return for claims:
o Name,service and/or mailing addresses,wireless and/or land line phone number(s),
service plan account number(s), and telephone service provider name(s) (e.g.
Verizon, AT&T, etc.)
o Release for claimant's wireless and/or land line service provider(s)to allow claims
administrator to access info to verify eligibility and/or obtain records of claimant's
phone plan and UUT charges
o Claimant was a wireless and/or land line telephone subscriber during all or some
portion of the Refund Recovery Period
o Claimant's service address (for land line accounts) and/or billing address (for
wireless accounts) listed for the land line and/or wireless telephone service was
within City
o Claimant paid City UUT on telephone communication services during the Refund
Recovery Period
• Claims Administrator Website — Implement and design website to include relevant
information to assist claimants with refund process, frequently asked questions, electronic
copies of claim documents, and capability to complete an electronic claim form with
electronic signature/certification of information (with the ability to upload copies of
supporting documents where applicable or option of sending in supporting documents via
email, fax or mail). Maintain website throughout claim period and for a minimum of one
year after either all claims are resolved or the one year anniversary of the end of the claim
period, whichever occurs last.
• Live Call Center—Provide telephone support for claimants who require assistance and seek
additional information.
• Exclusion Requests ("Opt Out")—Applicable only if required by court order (e.g., in the
event of class certification in pending litigation). Claims administrator to process all
Requests for Exclusion and provide lists and/or copies to the parties. Statistics for the
number of exclusion requests shall be stated in the claims administrator's affidavit for
reporting statistics to the court, if applicable.
• Refund Claims Processing — Develop and clearly outline the claims processing
methodology and determine guidelines for the evaluation of the claims, rejection of claims
and allowance (time and otherwise) for correction and re-submittal of claims. Claims
administrator and City shall work together to come to agreement regarding claims
processing procedures and protocols for various problems in advance of the actual
processing.
0 .
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 6
• Reporting — Claims administrator should provide weekly reports detailing the basic
statistics of the refund claims process, number of claims submitted for each refund option,
and estimated figures of the cumulative refund claim amounts for each refund option
category and combined total amounts claimed.
• Distribution of Refunds — Claims administrator to handle all cash management and
reporting system tasks for refund. Includes managing the refunds and daily monitoring of
the disbursement account.
The above-mentioned services are provided as a guideline to assist in formulating your proposal.
City believes these services will merit a successful refund claim process but welcomes and
appreciates any and all suggestions and recommendations for handling the administration of the
refund claim process.
Your proposal shall take into consideration all printing and mailing costs. Where applicable, City
shall provide translation services at City's expense to translate mailing documents prepared by the
claims administrator into Spanish, Korean, Chinese, Japanese, and Hindi. While we anticipate
making forms available in all six languages, we only plan to mail out a condensed two page form
with instructions in each language on how to obtain the Claim Form and Claim Notice documents
in other languages. These documents shall also be made available on the claims administrator's
website or upon request.
IV. SELECTION CRITERIA
City will conduct a comprehensive, fair, and impartial evaluation of the proposals received in
response to this Request for Proposal. All proposals timely received will be reviewed and
evaluated on the basis of qualifications, experience, ability to proceed immediately, and cost.
IV. FORMAT
Respondents are asked to submit a copy of their proposal in sufficient detail to allow for a thorough
evaluation and comparative analysis. All proposals shall remain valid for a period not less than
ninety(90) days from the date of submittal. The proposal shall be signed by an officer authorized
to contractually bind the respondent and acknowledge the terms and conditions of this Request for
Proposal document. The name,title, address, and telephone number of a contact person must also
be provided. Proposals must include options for both a fixed fee and time and materials fee
structure. A hybrid option of the time and materials and fixed fee models may also be proposed,
although not required.
The proposal shall summarize the scope of work as the proposer perceives or envisions the
proposed refund claim process. Further, the proposal should convey your understanding of the
assignment and significant steps, methods, and procedures to be employed by the proposer to
ensure quality deliverables that can be delivered within the required time frames.
410 110
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 7
Claims administration fees quotes should be based on a clear set of data relative to the available
claim options, level of detail and documentation required,estimated number of potential claimants,
number of mailing addresses for jurisdiction covered by refund claim process, and other factors
outlined above.
Responses are due on or before 5:00 p.m. on November 7, 2014. Late responses may not be
accepted. Deliver proposals by mail or email to:
City of Rancho Palos Verdes
Attention: Dennis McLean, Director of Finance
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275
Email: dennism@rpv.com
If you have any questions regarding this Request for Proposal, please contact Dennis McLean at
(310) 544-5212.
V. STANDARD TERMS AND CONDITIONS
The following conditions apply to the Request for Proposal process:
A. Nothing contained in this Request for Proposal shall create any contractual relationship
between the respondent and City.
B. City reserves the right to amend or cancel the Request for Proposal without prior notice, at
any time, at its sole discretion.
C. City shall not be liable for any expenses incurred by any individual or organization in
connection with the Request for Proposal.
D. City reserves the right, in its sole discretion,to accept or reject any or all proposals without
prior notice and to waive any minor irregularities or defects in a proposal.City reserves the
right to seek clarification on a proposal with any source.
E. All submitted proposals and information included herein or attached thereto, shall become
public record upon delivery to City.
0 9
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 8
Aendix
N
•
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 9
CITY OF RANCHO PALOS VERDES
NOTICE OF TELECOMMUNICATION UTILITY USER TAX REFUND
WHY DID I RECEIVE THIS NOTICE?
This Notice was mailed to all residential and commercial addresses in the City of Rancho Palos
Verdes.
WHO IS ELIGIBLE FOR A REFUND?
If you had a landline telephone service at a 90275 service address in Rancho Palos Verdes at any
time from August 2013 to December 2014, you likely paid UUT and are eligible for a monetary
refund.
AND/OR
If you had a wireless telephone service with a 90275 billing address in Rancho Palos Verdes at
any time from August 2013 to December 2014,you likely paid UUT and are eligible for a monetary
refund.
For wireless phone service, each plan may have multiple user phone numbers/lines, but only one
claim is allowed per plan where the UUT is charged on a single invoice covering multiple phone
numbers under a single plan.
WHY AM I ELIGIBLE FOR A REFUND?
On August 19, 2014, City Council took action to suspend collection of UUT from
telecommunication providers and establish a UUT Claim Account. During the week of August
25, 2014, City mailed letters directing suspension of collection of UUT to the ninety-two (92)
entities that collect and remit UUT to the City based on telecommunication services provided to
City's residents. City expects that telecommunication providers may require more than one billing
cycle to suspend collection of UUT, as system re-programming and other administrative
procedures may be necessary. In good faith, the City has decided to issue UUT refunds for the
one year preceding suspension of UUT collection(in conformance with its Municipal Code refund
period). City will adjust the amount of funds available for refund once all telephone service
providers have completely terminated collection and remittance of UUT.
HOW TO OBTAIN A REFUND?
To obtain your refund, you must fill out and submit a Claim Form, along with the required
documentation. Claim Forms must be received by , 2015.
0 0
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 10
WHAT ARE MY REFUND OPTIONS?
You may select one (1) refund option for each eligible wireless phone plan and land line phone
plan:
Option One-$25 Flat Refund
Instructions: Complete and sign the Claim Form.
AND Return your completed Claim Form to receive a flat $25 refund in full
satisfaction of the claim.
Option Two—Extrapolated Refund
Instructions: Complete and sign the Claim Form.
AND Submit a copy of one (1) monthly billing statement during the Refund
Recovery Period (between August 2013 and December 2014) showing
City's UUT applied to the telephone bill. Your refund will be calculated
by multiplying the UUT charged on your submitted statement by the
seventeen (17) months included in the Refund Recovery Period, for an
estimated refund in full satisfaction of the claim.
Option Three-Exact Refund
Instructions: Complete and sign the Claim Form.
AND Submit full documentation of each and every telephone billing statement
during the Refund Recovery Period (between August 2013 and December
2014) showing City's UUT applied to the telephone bill. You will receive
a refund in the exact amount of UUT displayed on your submitted telephone
service billing statements applicable during the Refund Recovery Period in
full satisfaction of the claim.
Option Four—Do Nothing
No action required. If you decide not to seek a refund, you will not receive any money.
MORE INFORMATION
If you have questions about the refund claim process, please contact the Claims Administrator at
1-888-XXX-XXXX. More information, claim forms, and detailed instructions on how to make a
claim can be found at www.RanchoPalosVerdesUUTRefund.com.
0 0
CITY OF RANCHO PALOS VERDES
TELECOMMUNICATION UTILITY USER TAX REFUND
CLAIM FORM
YOU CAN ALSO FILE CLAIM AT:
www.RanchoPalosVerdesUUTRefund.com
1. Your Refund—Choose One(1)of Three(3)Options
Option One-$25 Flat Refund
Instructions: Complete this Claim Form and sign below.
AND Return your completed Claim Form to receive a flat$25 refund in full satisfaction of the claim.
Option Two—Extrapolated Refund
Instructions: Complete this Claim Form and sign below.
AND Submit a copy of one(1)monthly billing statement during the Refund Recovery Period(between
August 2013 and December 2014)showing City's UUT applied to the telephone bill. Your refund
will be calculated by multiplying the UUT charged on your submitted statement by the seventeen
(17)months included in the Refund Recovery Period,for an estimated refund in full satisfaction of
the claim.
Option Three-Exact Refund
Instructions: Complete this Claim Form and sign below.
AND Submit full documentation of each and every telephone billing statement during the Refund
Recovery Period(between August 2013 and December 2014) showing City's UUT applied to the
telephone bill. You will receive a refund in the exact amount of UUT displayed on your submitted
telephone service billing statements applicable during the Refund Recovery Period in full
satisfaction of the claim.
2. Landline Refund(if applicable)
Primary Account Holder's First Name: M.I.: Last Name:
Landline Service Address:
Rancho Palos Verdes, CA 90275
Landline Phone Number:
Landline Service Provider Name:
Landline Account Number:
Mailing Address(if billing address different from service address):
City: State: Zip Code:
Desired Landline Refund: Check(X)only one(1)option
Option One-$25 Flat Refund
Option Two—Extrapolated Refund
Option Three-Exact Refund
0 •
City of Rancho Palos Verdes
Request for Proposal
UUT Refund
Page 12
3. Wireless Refund(if applicable)
Primary Account Holder's First Name: M.I.: Last Name:
Wireless Billing Address:
Rancho Palos Verdes,CA 90275
Wireless Phone Number:
Wireless Service Provider Name:
Wireless Account Number:
Desired Wireless Refund: Check(X)only one(1)option
Option One-$25 Flat Refund
Option Two—Extrapolated Refund
Option Three-Exact Refund
4. Ways to Submit Claim Form
By mail Place completed Claim Form along with the required documentation for your selected refund
option inside the pre-paid, self-addressed envelope provided to you and mail the envelope.
By fax Fax your completed Claim Form along with the required documentation for your selected refund
option to XXX-XXX-XXX.
Online Visit www.RanchoPalosVerdesUUTRefund.com to complete the online Claim Form and
electronically upload the required documentation for your selected refund option.
5. Certification and Release of Records to Claim Administrator/Release of Claims Against City
I certify that the information on this application and attachments are true, correct, and complete to the best of my
knowledge and belief. I authorize the Claims Administrator, to verify the information provided. I authorize the
Claims Administrator to obtain my telephone billing records for the account number(s) identified above, from the
telephone service provider(s)identified above,and agree to the release of such records, including under California
Code of Civil Procedure section 1985.3 and/or 18 U.S.C. section 2703(c). I paid for telephone services between
August 2013 and December 2014 and the billing and/or service address listed for my service(s)was in the City of
Rancho Palos Verdes. I further agree to release City and all of its respective agents and employees from all claims,
demands,rights and causes of action of any kind the undersigned now have or hereafter may have on account of or
in any way arising from the UUT collected during the Refund Recovery Period of August 2013 through December
2014.
6. Signature and Date(Required)
Signature: Date:
7. Deadline
Refund Claim Forms must be received by , 2015.
0 0
Exhibit "B":
Consultant's Proposal
•
LLC
3301 Kerner Blvd.
San Rafael, CA 94901
P: (415)461-0410
F: (415)461-0412
November 6, 2014
daniel.burke@gilardi.com
Sent by E-mail
Dennis McLean
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
Matter: Telecommunication Utility User Tax Refund—Administration Cost Estimate
Mr. McLean:
Thank you for allowing Gilardi & Co. LLC ("Gilardi")the opportunity to submit a proposal in the above-referenced
matter. As a privately-held company, you can be assured that we have no conflicts of interest that could
potentially affect our ability to effectively manage the claims process for refund of Rancho Palos Verdes' Utility
User Tax(UUT) as applied to telephone communication services.
Gilardi is the nation's largest, private full service administrator of class action settlements. Over the last thirty
years, we have provided cost-effective administrations in more than 4,500 settlements, with distributions of assets
greater than $25 billion. Through this time, we have crafted our methods for the efficient management of cases of
all sizes and complexities and we continue to evolve as we seek to provide perfection to our clients. On average,
we provide annual escrow agent services for over 900 Qualified Settlement Funds and manage assets in excess
of$1.5 billion dollars.
As you may know, Gilardi was the claims administrator for the Villa v. Chula Vista matter, which dealt with Chula
Vista's "Telephone Users Tax," which is similar to Ranchos Palos Verdes' UUT. The process outlined in the
Request for Proposal in the Rancho Palos Verdes matter is very similar to the notice and claim process in Chula
Vista. We are therefore very familiar and experienced in the claim process that will be necessary here.
The assumptions in Gilardi's proposal are informed by the response rate we received in Chula Vista. For
example, with the accessibility of billing statements online, we can expect more than half of the claimants will
submit an Option Two or Option Three claim in this matter. Gilardi previously reviewed over 9,000 claims that
require the same type of documentation required here under Option Two and Three and therefore is well suited to
handle the administration of Rancho Palos Verdes' refund process efficiently and accurately.
Please note, Gilardi has no conflicts of interest of any kind, however remote, with regard to this matter.
Additionally, we are not involved with any litigation or investment that may reflect poorly upon the City of Rancho
Palos Verdes. Gilardi does not ever offshore any portion of its processing work, in any matter. We process all
claims under one roof and senior management is on location and intimately and actively involved with the
oversight of each case or matter.
4111
This letter summarizes our costs based on the Scope of Work defined below, and the attached spreadsheet
provides the details of our estimated costs:
10%Filing Rate 20%Filing Rate 30%Filing Rate 50%Filing Rate
Notification $45,836 $45,836 $45,836 $45,836
Processing 8,486 11,576 14,839 18,639
Distribution 7,015 10,949 14,884 20,709
Publication 3,248 3,248 3,248 3,248
TOTAL: $64,584 $71,609 $78,807 $88,432
Administration Fee Cap("Not to Exceed" Cost of Administration): $80,000
SCOPE OF WORK
1. Case Setup, Planning, and Consulting
2. Data Preparation and Case Software Customization
3. Document Formatting/Approval
4. Printing/Mailing Notice Packet
5. Process Returned Undeliverable Mail ("RUM")
6. Provide address search services for RUM without a forwarding address and re-mail to new addresses
7. Printing/Mailing Reminder Postcard
8. Setup toll-free number and provide live operator support
9. Develop and maintain interactive case-dedicated website
10. Process claims, disputes and requests for exclusion
11. Open Qualified Settlement Fund bank account
12. Settlement Fund bank account maintenance
13. Issue checks for approved claims
14. Provide QSF bank account tax services
15. Provide declaration of procedures and any statistical reporting as necessary
EXHIBITS
The attached exhibits (referenced below) provide information about our recommended approach for the
administration, our administration procedures in general, and background information for Gilardi's senior
management team.
> Exhibit A—Line Itemized Cost Estimate Spreadsheet
> Exhibit B—Mailing Packet Diagram
> Exhibit C—Data Submission Guidelines
> Exhibit D—Gilardi Management Bios
> Exhibit E—Advantages to a Gilardi Administration
I believe that our proposal covers the details of the Administration Plan being contemplated at this time. Please
feel free to contact me directly at (415) 458-3069 if there is anything we may have overlooked or that you wish to
discuss further. Again, for more detailed information on our administration procedures and our executive
management team, please refer to the attached Exhibits.
P:(415)461-0410 www.gilardi.com F: (415)461-0412
111 0
Thank you for considering Gilardi. We look forward to the opportunity to work with you on this matter.
Sincerely,
#( 2 6--)9
Daniel Burke
Executive Vice President&General Counsel
Gilardi &Co. LLC
P:(415)461-0410 1 www.gilardi.com 1 F:(415)461-0412
EXHIBIT A
•
November 6,2014
•cilleDennis McLean
City of Rancho Palos Verdes
Matter: Telecommunication Utility User Tax Refund-Administration Cost Estimate
EXHIBIT A
ADMINISTRATION ESTIMATE SUMMARY
FULL ADMINISTRATION WITH CLAIMS PROCESSING AND DISTRIBUTION SERVICES
KEY ASSUMPTIONS:
1 -Class consists of approximately 16,353 residents of Rancho Palos Verdes(zip code 90275)
2-Notice will consist of 2pg Notice of UUT Refund Claim,2pg Multi-language Instructions Form,and 2pg Returnable Refund Claim Form
3-Class Members will have the option to file a claim with three different refund options
4-Two potential claim filing options will require supporting documentation for proof of claim
5-Interactive case-dedicated website with capability to complete electronic Claim Form with electronic signature/certification of
information and ability to upload supporting documentation
6-Toll-free number with live operator support
7-Class members without Internet access will be able to call the toll-free number to request Notice and a Claim Form
CLASS SIZE:
Total Estimated Class Size 16,353
Filing Percentage and Number of Claims Filed
10% 20% 30% 50%
SERVICES: 1,635 3,271 4,906 8,177
Notification Procedures $ 45,836 $ 45,836 $ 45,836 $ 45,836
Processing/Reporting 8,486 11,576 14,839 18,639
Distribution 7,015 10,949 14,884 20,709
Total Estimated Administration Costs: $ 61,336 $ 68,361 $ 75,559 $ 85,184
PUBLICATION:
Palos Verdes Peninsula News -2x Insertion $ 794 $ 794 $ 794 $ 794
Legal Notices(5"x 7"):2 consecutive Thursdays
Daily Breeze -4x Insertion $ 2,454 $ 2,454 $ 2,454 $ 2,454
ROP(5.18"x 7"):2 consecutive Tuesdays and Sundays
Total Estimated Administration Costs with Publication: $ 64,584 $ 71,609 $ 78,807 $ 88,432
ADMINISTRATION FEE CAP("Not to Exceed" Price): $80,000
41 0
November 6,2014
• •
Dennis McLean
City of Rancho Palos Verdes
Matter: Telecommunication Utility User Tax Refund-Administration Cost Estimate
Page 2 of 5
SUMMARY OF GILARDI SERVICES AND CASE-RELATED EXPENSES
10% 20% 30% 50%
GILARDI SERVICES: 1,635 3,271 4,906 8,177
Case Setup $ 450 $ 450 450 450
Mailing Database Preparation 540 540 540 540
Software Customization 450 450 450 450
Document Formatting 720 720 720 720
Case Management 2,700 2,700 2,700 2,700
Print Production Staff Hours 1,080 1,080 1,080 1,080
RUM Scanning 245 245 245 245
Address Search Services(Skip-Tracing) 540 540 540 540
Telephone Support&Setup 10,215 10,215 10,215 10,215
Website Development 5,000 5,000 5,000 5,000
Claims Processing&Reporting 8,486 11,576 14,839 18,639
Distribution 2,750 2,750 2,750 2,750
Subtotal Gilardi Services $ 33,176 $ 36,266 $ 39,529 $ 43,329
CASE-RELATED EXPENSES:
Purchase Mailing List 1,347 1,347 1,347 1,347
Printing Initial Notice 7,499 7,499 7,499 7,499
1st Class Postage for Initial Notice 6,639 6,639 6,639 6,639
National Change of Address Update 250 250 250 250
Printing Reminder Postcards 1,474 1,474 1,474 1,474
1st Class Postage for Reminder Notice Cards 4,334 4,334 4,334 4,334
Address Search Services(Skip-Tracing) 1,606 1,606 1,606 1,606
Estimated 1st Class Postage for Remails 747 747 747 747
Check Printing 3,271 6,541 9,812 14,309
1st Class Postage for Issued Checks 664 1,328 1,992 3,320
Tax Reporting 330 330 330 330
Subtotal Expenses $ 28,160 $ 32,095 $ 36,029 $ 41,854
PUBLICATION
Palos Verdes Peninsula News-2x Insertion $ 794 $ 794 $ 794 $ 794
Daily Breeze-4x Insertion 2,454 2,454 2,454 2,454
Subtotal Publication Costs $ 3,248 $ 3,248 $ 3,248 $ 3,248
Total Estimated Administration Fees: $ 64,584 $ 71,609 $ 78,807 $ 88,432
ADMINISTRATION FEE CAP("Not to Exceed" Price 1: $80,000
• 11110
November 6,2014
nfiLc• •
Dennis McLean
City of Rancho Palos Verdes cga
Matter: Telecommunication Utility User Tax Refund-Administration Cost Estimate
Page 3 of 5 of Cost Estimate Spreadsheet
NOTIFICATION PROCEDURES
NOTIFICATION PROCEDURES Unit Rate Volume Cost Total
Document Formatting&Class Data Preparation
Case Setup $ 90.00 5 hrs $ 450
Mailing Database Preparation $ 90.00 6 hrs 540
Software Customization $ 90.00 5 hrs 450
Document Formatting $ 90.00 8 hrs 720
Case Management $ 90.00 30 hrs 2,700
Purchase Mailing List(Zip Code 90275) 1,347
NCOA 250
Subtotal Formatting&Data Prep $ 6,457
Printing/Mailing-Initial Notice
Notice Packet: $ 0.459 16,353 $ 7,499
2-page Notice of UUT Refund Claim
2-page Multi-language Instructions Form
2-page Returnable Refund Claim Form
#10 Envelope
#9 BRM Return Envelope
Estimated 1st Class Postage $ 0.406 16,353 6,639
Print Production Staff Hours $ 90.00 6 hrs 540
Subtotal Printing/Mailing 14,679
Returned Undeliverable Mail Handling("RUM")
Total%&#of RUM Pieces 15% 2,453
RUM Scanning $ 0.10 2,453 $ 245
Address Search Services(Skip-Tracing)
#of Searches(from RUM above) $ 0.25 2,453 613
Class List Contains SSNs?(Y/N) N
#of New Addresses Found and Remail 75% $ 0.54 1,840 993
Estimated 1st Class Postage for Remails $ 0.406 1,840 747
Staff Hours performing Addr Searches&Re-Mails $ 90.00 6 hrs 540
Subtotal Address Searches 3,138
Printing/Mailing-Reminder Postcard
Print Reminder Postard Notice $ 0.090 16,353 $ 1,474
Estimated 1st Class Postage $ 0.265 16,353 4,334
Print Production Staff Hours $ 90.00 6 hrs 540
Subtotal Printing/Mailing 6,347
Telephone Support
Phone Script and FAQ development $ 90.00 5 hrs $ 450
Estimated%and#of Class Member Calls 10% 1,635
Average minutes per call 5 min
Staff Hours Providing Phone Support $ 70.00 136 hrs 9,520
Estimated%and#of Callers Requesting Notice Packet 10% 164
Notice Packet Request Fulfillment(Including Postage) $ 1.50 164 245
Subtotal Telephone Support 10,215
Website Development
Interactive case-dedicated website to host case information with the
ability to download claims forms for postal filing and ability to file $ 5,000 5,000
Subtotal Notification Procedures $ 45,836
Dennis McLean
City of Rancho Palos Verdes • '
Matter: Telecommunication Utility User Tax Refund-Administration Cost Estimate
Page 4 of 5 of Cost Estimate Spreadsheet l
CLAIMS PROCESSING
Claims Processing(cost per claim#'s reflect rounding)
Gilardi's Claims Processing Costs Include Claim Receipt,Evaluation,and
Validation
$25 Flat Refund Claims Filed Online Claims Filed by Mail(Includes BRM Postage Costs)
Cost per Claim for up to 515$25 Flat Refund Claims Filed Online $0.50 Cost per Claim for up to 65 Claims Filed via Mail $4.00
Cost per Claim for 516 to 1,030$25 Flat Refund Claims Filed Online $0.50 Cost per Claim for 66 to 131 Claims Filed via Mail $3.00
Cost per Claim for 1,031 to 1,545$25 Flat Refund Claims Filed Online $0.50 Cost per Claim for 132 to 196 Claims Filed via Mail $2.50
Cost per Claim for 1,546 or more$25 Flat Refund Claims Filed Online $0.50 Cost per Claim for 197 or more Claims Filed via Mail $2.00
Extrapolated Refund Claims Filed Online
Cost per Claim for up to 589 Extrapolated Refund Claims Filed Online $1.25
Cost per Claim for 590 to 1,177 Extrapolated Refund Claims Filed Online $1.00
Cost per Claim for 1,178 to 1,766 Extrapolated Refund Claims Filed Online $1.00
•
Cost per Claim for 1,767 or more Extrapolated Refund Claims Filed Online $0.75
Exact Refund Claims Filed Online
Cost per Claim for up to 368 Exact Refund Claims Filed Online $2.00
Cost per Claim for 369 to 736 Exact Refund Claims Filed Online $1.75
Cost per Claim for 737 to 1,104 Exact Refund Claims Filed Online $1.50
Cost per Claim for 1,105 or more Exact Refund Claims Filed Online $1.25
Projected Claims Filed
PROCESSING/REPORTING 1,635 10% 3,271 20.0% 4,906 30% 8,177 50%
% Unit Rate Volume Cost Volume Cost Volume Cost Volume Cost
$25 Flat Refund Claims
Total%and#of$25 Flat Refund Oaims 35% 572 1,145 1,717 2,862
$25 Flat Refund Claims Filed Online(40%) 14.0% 229 $ 114 458 $ 229 687 $ 343 1,145 $ 572
$25 Flat Refund Claims Filed by Mail(60%) 21.0% 343 1,374 687 2,060 1,030 2,576 1,717 3,434
Extrapolated Refund Claims
Total%and#of Extrapolated Refund Claims 40% 654 1,308 1,962 3,271
Extrapolated Refund Claims Filed Online(40%) 16% 262 327 523 523 785 785 1,308 981
Extrapolated Refund Claims Filed by Mail(60%) 24% 392 1,570 785 2,355 1,177 2,944 1,962 3,925
Exact Refund Claims
Total%and#of Exact Refund Claims 25% 409 818 1,226 2,044
Exact Refund Claims Filed Online(40%) 10% 164 327 327 572 491 736 818 1,022
Exact Refund Claims Filed by Mail(60%) 15% 245 981 491 1,472 736 2,208 1,226 2,453
Request For Exclusion Processing
Estimated Number of Opt-outs 200 200 200 200
Minutes per Opt-out 10
Staff Hours Handling Requests for Exclusion $ 70.00 3 hrs 210 3 hrs 210 3 hrs 210 3 hrs 210
Deficiency Processing
Estimated%and#of Deficient Claims 0.5% 8 16 25 41
Print/mail Deficiency Notices $ 1.50 8 12 16 24 25 38 41 62
Minutes per Deficiency 10
Staff Hours Handling Deficient Claims $ 70.00 1 hr 70 3 hrs 210 4 hrs 280 7 hrs 490
Dispute Processing
Estimated%and#of Disputes 1% 16 33 49 82
Minutes per Dispute 20
Staff Hours Handling Disputes $ 70.00 5 hrs 350 11 hrs 770 16 hrs 1,120 27 hrs 1,890
Reporting/Declaration
Staff hours handling any address updates $ 90.00 5 hrs 450 5 hrs 450 5 hrs 450 5 hrs 450
Staff hours for general claimant correspondence $ 90.00 10 hrs 900 10 hrs 900 12 hrs 1,080 12 hrs 1,080
Declaration of Notice Procedures $ 90.00 8 hrs 720 8 hrs 720 8 hrs 720 8 hrs 720
Reporting-assumes 1x per week $ 90.00 12 hrs 1,080 12 hrs 1,080 15 hrs 1,350 15 hrs 1,350
Subtotal Processing/Reporting $ 8,486 $ 11,576 $ 14,839 $ 18,639
Dennis McLean
City of Rancho Palos Verdes •
Matter: Telecommunication Utility User Tax Refund-Administration Cost Estimate
qgP-1-njllLLC
Page 5 of 5 of Cost Estimate Spreadsheet
DISTRIBUTION
Unit Rate 1,635 10% 3,271 20.0% 4,906 30% 8,177 50%
Distribution Preparation $ 150.00 5 hrs $ 750 5 hrs $ 750 5 his $ 750 5 hrs $ 750
Ind opening bank account,obtaining TIN,document&transmittal letter
review,initial/residual Funds Analysis
Distribution Calculations $ 130.00 12 hrs 1,560 12 hrs 1,560 12 hrs 1,560 12 hrs 1,560
Incl.calculation of Class Member distribution values,QSF reconciliation,
Funds Analysis
Check Print Rate(Volume Dependent) $ 2.00 $ 2.00 $ 2.00 $ 1.75
Issue Checks 1,635 3,271 3,271 6,541 4,906 9,812 8,177 14,309
Domestic First Class Postage $ 0.406 1,635 664 3,271 1,328 4,906 1,992 8,177 3,320
Distribution Follow-up&Final Accounting $ 110.00 4 hrs 440 4 hrs 440 4 hrs 440 4 hrs 440
•
Ind re-issue runs,check RUM review,final Funds Analysis
Federal Level Tax Administration Services $ 110.00 3 hrs 330 3 hrs 330 3 hrs 330 3 his 330
Incl.QSF reporting
Subtotal Distribution $ 7,015 $ 10,949 $ 14,884 $ 20,709
• 1
EXHIBIT B
Exhibit B — Mailing Diagram
Lrdi
LC
Guide To The Class Action Notice Mailing
OVERVIEW
The typical Class Action Notice mailing has four parts:
1) an outer mailing envelope
2) a four-page notice
3) a two-page claim form, and
4) a reply envelope
The outer envelope, which the addressee receives in the mail, contains the other three items:
1,116P
1) Outer Envelope
.H.�.-a..�,, nB.Pre��.,•
111111\9UO.OF PROPOSED CUSS:ACTION SETTLEMENT A«.w�is
Cav nia NRoedJ6J.
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u1,111kIII II�II [-Ig". 1
2) Notice 3) Claim Form
1) OUTER MAILING ENVELOPE Claims administrator
return address
Specifications:
• A standard #10 window envelope SFJIICI1IdIlI11C KIlICl11 JII�<ILLlllllalr 4n
enlill.IJlhCa 1.1.1'
9.5 inches wide by 4.125 inches high J g`"`'
• SJ.R..Il�el,CA 91912-80ti(1
See-through
• Prints one color (black)
Window
Purpose:
• Mails to addressee (claimant)
LSHGP
Internal routing code
CONFIDENTIAL INFORMATION Not for distribution. Only for client use in conjunction with the attached Gilardi proposal.
• •
Exhibit B - Mailing Diagram (cont.)
Guide To The Class Action Notice Mailing
2) FOUR-PAGE NOTICE SIDE ONE
Specifications. .........c............, 10TIlCOfPROPUS[DlLASSAI[IU�SETTLLNE�L Folds to 8.5x11
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,I.l _m..z---. VCl.ms=rr - rL.4rrRwr.Ylsur.._Otl�A_Y::,....r_rYr•.r.Mra_.._.YrM ,-.......:%.:......:7,-1,--:.--=:.--......t17,........,..,..
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si
settlement . . _: �o
SIDE TWO
3) CLAIM FORM
Specifications: SIDE ONE ■__ ■ Pre-printed claimant name and
i]...,,..,. LSHGP address(shows through window
• A standard 8.5x11 (letter) sheet _''=«b}-.:.��."'-.....,--.7.-,:.......-
r6-'"�'�� __ of outer envelope)
D"'.r
• prints two color (red/black) ,,,,,.a=�..I, ,n
IIIA,,,,--
•mIIIIII-III;
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�-m to provide updated/
• Contains instructions on how ,...---::,.....,=,-...... ..-=,!..:c.,,_.`. �
-•M'•__ _.m..Y,...._..--_•...r..I., a d d ti o n a l contact
to complete form and return for ,-..=.,;.,.-..,,u'�ry,.:Wk o.,..,.r.r-_.rw information
inclusion in class action. ..n..._
.aVy--------.7.,==.
._..w Nr
• Includes fields to capture claimant's •iiaiiulluuuiuiiu -,1Form instructions
name/address change, phone number(s) -r,:,:....=-7.°:........,.,,......
..w•4.rn.MGr Y..r
...
7771"7Y7-77-77777771
and email address 1111111111
"' ""`” Space for claimant's
Various check boxes, signature and �. r..,r.Irl.r..r.......—w.w..
• .Y...�r:Y,r.:r
�,.._r.,.v---=,-,,-------
signature and date
date lines allow claimant to provide affirming inclusion
proof/affidavit of inclusion
SIDE TWO ■i°uuumia uir •
4) REPLY ENVELOPE
Specifications: Claims administrator address
• A standard #9 envelope
• 8.875 inches wide by 3.875 inches high III II
• prints one color (black)
Internal 1u.BUSINESSREPL AIL
routing code
Purpose: \t-sHGED
SKILLED HEALTHCARE SETTLEMENT ADM'NI STRATO.
GiLARD 8.CO LLC
PO BOX 8060
•N RAFAEL CA 94912-9560
• Returns claim form to Claims Administrator
CONFIDENTIAL INFORMATION Not for distribution. Only for client use in conjunction with the attached Gilardi proposal.
EXHIBIT C
ardi
Exhibit C — Data Submission Guidelines
Types of Data Files
Data is most efficiently and accurately transmitted within delimited or fixed-width text files, Microsoft Excel and Access
files or SQL Server backup files. Excel and Access are typically the most convenient methods for small to moderate
volumes of data. Text files are the preferred method for transferring large volumes of data (hundreds of thousands or
millions of records).
Access
The file should contain only the table objects necessary and not include query, form, module, or report objects.
The data should not contain control characters such as carriage return, line feed, tab, etc. Date values should be
formatted as MM/DD/YYYY.
Excel or OpenOffice Calc
The file should contain one sheet per dataset. If the number of records exceeds the capacity of the Excel sheet
(too many records) such that the records would need to be split among two or more sheets, another file format.
such as an Access table, should be considered. The file should not include any unnecessary data or objects. such
as images, VBA code, forms, etc. The data should not contain control characters such as carriage return, line
feed, tab, etc. Numeric values should be actual values and not formula or calculation results. Date values should
be formatted as MM/DD/YYYY.
Delimited Text
The file should be a tab or pipe-delimited format with double-quote text identifiers. Comma separated files can
only be accepted with double-quote text identifiers. Date values should be formatted as MM/DD/YYYY.
Fixed Width Text
The file must be accompanied by a schema document which describes columns and their positions. Date values
should be formatted as MM/DD/YYYY.
XML
XML files should contain only the necessary elements and be accompanied by an XSD schema. Date values
should be formatted as MM/DD/YYYY.
Files such as Microsoft Word, Word Perfect or image files including PDF, Tiff or JPEG cannot be used directly though
Gilardi has the capabilities to perform data extraction or capture if the data is not otherwise available. (Additional time and
costs are associated with these services).
P: (415) 461-0410 I www.gilardi.com F: (415) 461-0412
Gianni
Exhibit C — Data Submission Guidelines
Appendix A: General Data Structure
Regardless of the type of file for transfer the data should contain a single record or line for each (putative) class member
(person/company) with separate data elements (field or column) for each of the following pieces of information:
• Unique Identifier • State
(SSN/FEIN, Account#, Customer#, • Zip *
Employee#) * • Foreign Province
• First Name * • Foreign Postal Code
• Last Name * • Foreign Country
• Address Line 1 * • Phone Number
• Address Line 2 * • Email Address
• City *
* Those elements marked with an asterisk are generally required for all cases.
Additional information required for notice and administration can be categorized as requiring 'one record per class
member' or'multiple records per class member' data structure.
For example a simple employment-related settlement the loss basis may be total weeks worked. If this figure is calculated
and provided by the client, this is a one record per class member' structure, and the total weeks figure should be provided
in the same table as the names and addresses as an additional field.
Example of one record per person structure:
FirstNarr e La_,tNarr r2 City State Zip Ernp# W eeksWork:ed
Jor-rr-
hn Doe 123Main St San Rafael C;�';, 9490158553
2089
Jane Smith 456 0 t Apt 332 Santa Rosa _CA _ 9540 12354 1-)588
A separate employment-related settlement may require the administrator to calculate the total weeks worked. As it is
common for employees to work for the same employer during distinct periods of time due to leave, etc., the client would
likely need to provide multiple records per employee indicating different employment periods. This is a 'multiple records
per class member' structure. The names and addresses should be provided in one table or file with only one record per
person and a separate table or file with the employment period data. Both files and datasets should contain the unique
identifier to ensure that the data can be associated.
Example of table with names addresses and unique identifier(employee number), one record per person:
Fir tNarne Lai tNiarne ,Addrl ,h,ddr•2 City State Zip Ernp#
John Doe 123 1ain St ars Rafael CA 94901 58553
Jane Smith
rth 45 5 D St Apt 33
pt -32 _Santa o_a CA 9F,403 12354
Example of a table containing multiple records per person which can be linked to the names and addresses by an
unique identifier(employee number):
E rn i p# St o rt E n d
58553 1/1/2007 --,IE_I1?
68553 1 i'1 ii il-ll-I 4/27;200R
58 LJ•J ._i 1.,1-'I II I�� 7,0!-3,0009
II-I!
12:R54 F I i i~i L I l I_I I-I
1 73 54 ?/9,0009 ?/19/7)011:1
P: (415) 461-0410 I www.gilardi.com F: (415)461-0412
Grdi,
Exhibit C - Data Submission Guidelines L. I .
Control Values
Control information should be provided for each dataset. Control information should minimally consist of the number of
records per table, sheet or file and ideally include a total of one of the numerical elements (fields/columns) when
practicable. These totals help to ensure the integrity of the data transfer.
Encryption
The files should be encrypted while in transit to both ensure the integrity of the data transfer and protect sensitive
information. For one-time transfers a secure file transfer portal, PGP self-decrypting archive or a TrueCrypt volume are
the most convenient encryption methods.
Transfer
Secure file transfer portal, SFTP, CD/DVD, Email—depending on size and encryption.
P: (415) 461-0410 www.gilardi.com F: (415) 461-0412
EXHIBIT D
0
Q11Exhibit D — Gilardi Executive Management Team I
PETER CRUDO, Chief Executive Officer
Peter Crudo is the Chief Executive Officer of Gilardi. In his capacity as CEO, Mr. Crudo oversees all aspects of Gilardi's
strategic and corporate development. Peter brings a unique perspective to his role as he has worked both as an attorney
in private practice and as a senior level management member in both private and public technology companies. As such,
he has driven Gilardi's emphasis that efficient, goal-oriented and technical solutions must be at the forefront of claims
administration services. He also understands that Gilardi's independence and flexibility are unique assets that allow
Gilardi to better serve its clients' needs. As such, he remains the first point of client contact for issues both large and
small.
An industry thought leader, Peter has lectured on litigation and claims administration issues to international institutions
from France to Japan. He has also appeared as an expert speaker numerous times before various government entities at
both the Federal and State level and has been a featured panelist at various Federal Judicial conferences. In addition to
his corporate experience and prior to joining Gilardi in 2007, Mr. Crudo served as a member of the Jesuit International
Volunteers in Saipan for three years after college. While in that program, he taught high school, worked in the
Micronesian Legal Clinic, tutored prison inmates and taught English as a second language to immigrant workers.
Mr. Crudo holds a B.A. from the University of California at Berkeley, a J.D./M.B.A. from the University of Hawaii at Manoa,
and an LL.M (with high honors) in International Financial Law from the University of London, where he completed his
thesis on The Legal and Ideological Foundation for Privatization in the Peoples' Republic of China. Mr. Crudo has also
studied at the National University of Singapore. He is a board member of the Okizu Foundation, which serves children
with cancer, the Salesian Boys and Girls Club of San Francisco and is active in numerous other organizations and
charities within the Bay Area.
DANIEL BURKE, Executive Vice President, Consumer & General Counsel
Daniel Burke is Executive Vice President of the Consumer Group and General Counsel at Gilardi. In this capacity, Dan
has management responsibilities for government actions, consumer matters and antitrust settlements. He has personally
overseen several hundred cases of all types and sizes. Further, Dan has helped design and implement hundreds of
complex notice plans. Dan has appeared as an expert panelist speaking on claims administration issues in appearances
before numerous CLE panels, various legal and government organizations, and internationally before multinational
financial entities.
Prior to his arrival at Gilardi in 2007, Mr. Burke served as a Deputy District Attorney in Alameda County for 14 years. He
has tried more than 100 cases to verdict, including in excess of 40 jury trials. Before working as a prosecutor, Mr. Burke
served as an extern for California Appellate Court Justice Timothy Reardon.
He has lectured at numerous venues including California Judicial College and seminars held by the California District
Attorneys' Association. Mr. Burke received his B.S. in Marketing from Santa Clara University and his J.D. from Golden
Gate University. He is an active member of the California State Bar.
KIM WAGNER, Executive Vice President, Operations
Kim Wagner is the Executive Vice President of Operations at Gilardi. Mr. Wagner has been at Gilardi for more than two
decades and prior to his operational role, led Gilardi's Information Technology group. He oversees all operational
functions in the company to ensure process integrity while creating strategic, cost effective and innovative solutions that
drive our administration services. In addition, he oversees our Information Security program to ensure our ongoing
security efforts are in alignment with regulatory requirements and the needs of our clients.
During his tenure, he has been directly involved with hundreds of administration projects covering all of Gilardi's practice
areas. This experience has afforded him a unique understanding of how to integrate technological solutions into complex
administrations, making him a great asset to the Gilardi team.
P: (415)461-0410 www.gilardi.com F: (415)461-0412
CitirdiLc. •
Exhibit D — Gilardi Executive Management Team I
ALAN VASQUEZ, Director of the Larkspur Design Group
Alan Vasquez is Director of the Larkspur Design Group and a court-recognized expert in legal notification. An expert in
the design and development of media plans specific to claims administration, Mr. Vasquez designs and oversees the
notice plans and campaigns implemented by Gilardi. He is a Google certified ad expert and has personally designed
more than 200 hundred notice campaigns. Alan brings a singular focus on technically focused notice solutions and has
also appeared as an expert witness regarding notice campaigns, with a particular emphasis on reach and frequency.
Before coming to Gilardi in 2008, Mr. Vasquez spent five years with another class action claims administration firm with
three of those years spent as the media planner for the firm's in-house legal advertising agency.
Alan also brings a substantial business background and held the position of Contract Administrator for Lucasfilm Ltd's
Business Affairs department where he managed the worldwide film licensing distribution database for ancillary markets.
In that capacity, his duties included creating forecasting models for box office and licensing revenue, acquiring elements
and marketing materials for overseas licensees, and tracking financial obligations from those licensees. In addition to
managing the firm's film licensing agreements, Alan was involved in the drafting and review of many name and likeness
agreements for various Star Wars actors early in the development of digital rights. He holds a B.S. in Business
Administration with an emphasis in Finance from California State University, Sacramento.
ROBERT GOLDMAN, Director of Fraud Research
Robert Goldman is Director of Fraud Research at Gilardi. Mr. Goldman came to Gilardi in 1998, after a 35-year career in
law enforcement. He directs our fraud detection and prevention protocols, and has actively assisted various government
agencies in the investigation and apprehension of individuals submitting fraudulent claims. Mr. Goldman has utilized the
skills and expertise he developed in his 27 years as an FBI Special Agent to help our firm secure and equitably distribute
billions of dollars in settlement assets.
During his law enforcement career before joining Gilardi, Mr. Goldman completed a number of FBI Academy postgraduate
courses in financial crimes investigation, medical insurance fraud, criminal psychological profiling and interviewing
techniques. In addition, he has provided fraud consultant services for more than a decade. He earned his J.D. and
undergraduate degrees from Ohio Northern University.
P: (415)461-0410 www.gilardi.com F: (415)461-0412
EXHIBIT E
• •
Exhibit E — Key Advantages to a Gilardi Administration
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NO CONFLICTS OF INTEREST
As a privately-held company, Gilardi & Co. LLC ("Gilardi") has no conflicts of any kind, however remote, with respect to
this matter. Neither Gilardi nor any related entity has had a financial position or partnership of any kind with any company
involved. Additionally, neither Gilardi nor any related entity has or has ever had any financial or other interest in either the
defendant or any entity related to the defendant, and no potential claimant, institutional or otherwise, has any financial
interest in our company or any related entity.
ACCESSIBLE, INVOLVED MANAGEMENT TEAM
In order to offer the best possible service, Gilardi provides an unmatched level of access to senior level management, all
of whom are intimately and actively involved with each and every case we administer. As our entire staff works in our sole
location, senior management has regular and direct contact with all Gilardi employees, from the mailroom, processing
staff and customer service representatives to the IT and accounting departments. While our company will generally be
available at your convenience, you will have direct contact to any of the following at any time:
Daniel Burke— Executive Vice President, General Counsel: (415)458-3069; (415) 279-3126 (c)
Peter Crudo—Chief Executive Officer: (415) 458-3640; (415) 548-0047 (c)
Michael Joaquin — Director of Securities: (415) 458-3604; (415) 690-9271 (c)
INNOVATION, EFFICIENCY AND TRANSPARENCY
Gilardi will manage all aspects of the administration and settlement to ensure maximum efficiency and cost-savings.
Additionally, we will work with Counsel and our CPA and tax consulting firm to manage and offset the interest earnings
against the costs of notice and administration. In all cases, we will prepare detailed Fund Analysis reports outlining any
and all uses and sources of the Fund and all interest earned by the Fund.
NO OFFSHORING, LIMITED OUTSOURCING
Gilardi does not offshore any portion of our work in any matter. The only work handled outside of our office are large
printing and mailing projects, check printing and mailing services, and, in certain cases. settlement fund tax
administration. For these three services, Gilardi works with industry leading third-party vendors with which we have
extensive experience and contractual agreements covering, among other things, the proper handling and security of any
confidential information. All claims processing, data manipulation, fraud review, and claimant communication services are
handled in Gilardi's sole office in San Rafael, California, with direct the oversight and involvement of senior management.
In large volume matters, Notice and proof of claim form printing and mailing services are usually provided by The Goode
Company ("Goode"), located in Rohnert Park, California. Goode carries $1 Million E&O Insurance. Once the claim and
audit processes are completed in-house, Gilardi works with an outside firm, Cash Cycle Solutions, Inc. ('CCS") in San
Diego, California, to facilitate the distribution of the Settlement Funds to the Class Members eligible for distribution. CCS,
a print and mailing business, has been in business for nearly 30 years and for nearly five years, Gilardi has worked with
CCS to distribute several million checks, CCS has achieved the highest levels of security and audit certification and has
worked with numerous government entities, CCS carries $3 Million E&O Insurance and a Fidelity Bond of $3 Million.
Finally, Gilardi partners with Damasco and Associates ("Damasco"), a CPA and tax consulting firm located in Half Moon
Bay, California, for tax compliance and reporting purposes in cases with more complex tax requirements. Damasco is the
sole national contract holder with the S.E.C. for tax services and has a long provided tax services in numerous
settlements to a variety of firms. Damasco carries $3 Million E&O Insurance and a Fidelity Bond of$3 Million.
P: (415)461-0410 www.gilardi.com F: (415)461-0412
Exhibit E — Key Advantages to a Gilardi Administration
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IN-HOUSE ADVERTISING AGENCY
Larkspur Design Group LLC ("LDG") is a full service, independent advertising agency and notification firm. listed in the
Standard Directory of Advertising Agencies (the Agency Red Book). LDG specializes in the design and implementation of
detailed media-based notice programs targeting unidentified class members in class action cases. LDG's notification and
education programs have extended to nearly every form of media, including both domestic and international newspapers
and magazines, internet-based advertising, specialized websites, wire service, radio, television, point of purchase displays
and direct mail. Its international notice campaigns have included extensive print and online media in foreign languages.
LDG's unique notification techniques are adaptable to any type of case or target market. LDG has designed and
implemented over 1,500 advertising and notification plans and has 25 years' experience in the advertising and
communications industry.
FRAUD REVIEW, DETECTION AND PREVENTION
Gilardi has a dedicated fraud team led by two retired F.B.I. agents through which we maintain a proprietary database of
suspected fraudulent claimants. In each case, our fraud team reviews claims filed and distribution tables for any
anomalies related to claimants and the distribution. Additionally, we maintain a series of proprietary reviews and separate
controls at all stages of the processing life cycle, and again at the end, to ensure that fraud is prevented and detected.
As further controls, each and every Gilardi employee has had a comprehensive background check, and many have
received additional security clearances required to work on certain government projects. Physically, our systems and
building are protected by unique key-card swipes, camera monitoring and various proprietary system audit logs and
controls. Finally, as all cases are processed in one location only and because management is intimately engaged in each
case, Gilardi is able to maintain an unmatched level of vigilance during all phases of every case we administer.
P: (415)461-0410 www.gilardi.com F: (415)461-0412