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RPVCCA_CC_SR_2014_12_16_G_Telecommunication_UUT_Refund_AdministratorCITY OF RANCHO PALOS VERDES MEMORANDUM TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS FROM: DENNIS McLEAN, DIRECTOR OF FINANCE ~ DATE: DECEMBER 16, 2014 SUBJECT: TELECOMMUNICATION UTILITY USER TAX REFUND ADMINISTRATOR REVIEWED: CAROLYNN PETRU, ACTING CITY MANAGER© Staff Coordinator: Kathryn Downs, Deputy Director of Finance RECOMMENDATION 1. Approve the following proposed documents: a. Professional Services Agreement for Gilardi & Co LLC (Attachment A); b. Draft Notice of Telecommunication Utility User Tax Refund Process (Attachment B); and c. Draft Telecommunication Utility User Tax Refund Claim Form (Attachment C). 2. ADOPT RESOLUTION 2014-: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING OPTIONS FOR CLAIMANT REFUND OF UTILITY USER TAXES COLLECTED BY TELECOMMUNICATION PROVIDERS FROM THE CITY'S TAXPAYERS BETWEEN AUGUST 1, 2013 AND DECEMBER 31, 2014, AND REPEALING RESOLUTION NO. 2014-70 BACKGROUND AND DISCUSSION On August 19, 2014, the City Council took action to suspend collection of Utility User Tax (UUT) from telecommunication providers. As part of the action, all telecommunications UUT collected since August 13, 2013 (the beginning of the established one -year claim period) will be transferred to a UUT Telecommunication Claim Account, and will not be G-1 TELECOMMUNICATION UTILITY USER TAX REFUND ADMINISTRATOR December 16, 2014 Page 2 of 3 recorded as General Fund Revenue. California Public Utility Code section 799(a)(5) provides that utility companies are not required to implement tax changes by local agencies any earlier than 60 days following receipt of written notification. If the 601h day is not the first day of the month the compliance deadline is extended until the first day of the following month. Therefore, if a notice was not received by September 1, 2014, it is possible that telecommunications providers may continue to collect UUT until December 2014. As such, Scott Noya of the law firm of Daley & Heft recommended the City extend the "Refund Recovery Period" from 12 to 17 months (August 1, 2013 through December 31, 2014). Staff expects that the monies set-aside in the Claim Account will be sufficient to pay for refund claims, as well as the administration of the claim process. On October 23, 2014, the City issued a Request for Proposals for Telecommunication Utility User Tax Refund administration. Proposals were due November 71h. The City received six (6) proposals as follows: Respondent Estimated Fee Fixed Fee Gilardi & Co LLC $64,584-$88,432 $ 80,000 KCC $ 95,628 $ 120,000 Rust Consulting $ 98,344 Not proposed ILYM Group, Inc. $ 119,097 Not proposed The Garden City Group, Inc. $ 160,000 Not proposed Donlin, Recano & Company, Inc. $ 838,000 Not proposed Staff recommends entering into an agreement with Gilardi & Co LLC for a not to exceed capped fee of $80,000. All respondents' proposals demonstrated a clear understanding of the claims process administration. Mr. Noya advised Staff of his favorable experience working with Gilardi & Co LLC in the past to administer taxpayer refund claims for other agencies, including the City of Chula Vista. The Gilardi fee range included in their proposal was based on a claims-rate ranging between 10% to 50%. Gilardi's fee structure is not fixed, but rather based on a not to exceed capped amount of $80,000. This amount appears to represent a claims-rate of about 33% as illustrated in their fee schedule below: G"I d"' f hdlb 1· fl 1 ar 1 s ee sc e u e 1y c aim 1 in t l ra e 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 G-2 TELECOMMUNICATION UTILITY USER TAX REFUND ADMINISTRATOR December 16, 2014 Page 3 of 3 It should be noted that the next lowest bidder, KCC, assumed an overall claims-rate of 15%. Option to contribute refund to City's "Gifts for Parks Program" Based on suggestions from both City Council Members and other residents, Staff proposes an option for taxpayers to elect to contribute their claim refund to the City's "Gifts for Parks Program". Based upon advice of the tax department at White Nelson Diehl Evans, LLP, CPA's and the City's former independent auditor, a contribution of the claim refund to the City may be deductible on the taxpayer's individual income tax return. The draft Claim Form (Attachment C) includes this option, whereby the taxpayer may simply check a box indicating they elect to contribute the claim refund amount to the City's Gifts for Parks Program. The "contribution" option was added after proposals were received. Staff confirmed with Gilardi & Co LLP that the addition of the option to contribute their refund to the City's Gifts for Parks Program, including an advice letter acknowledging the tax contribution, does not impact the cost proposal submitted. If passed by the City Council, the attached Resolution would approve the 17-month claim period and option to contribute the taxpayer's refund to the City's Gifts for Parks Program and repeal Resolution No. 2014-70 adopted on October 21, 2014. Staff also recommends that the waiver to be signed by the refund claimant is limited to the claim period of 17 months. The following waiver is stated in the draft claim form: "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 1, 2013 through December 31, 2014." FISCAL IMPACT At this time, no budget adjustment is requested; as Staff expects that the monies set-aside in the Claim Account will be sufficient to pay for refund claims, as well as the administration of those claims. Therefore, there is no fiscal impact as a result of the recommended action. Attachments A -Professional Services Agreement for Gilardi & Co LLC B -Draft Notice of Telecommunication Utility User Tax Refund Process C -Draft Telecommunication Utility User Tax Refund Claim Form D -Draft Resolution G-3 CITY OF RANCHO PALOS VERDES PROFESSIONAL/TECHNICAL SERVICES AGREEMENT THIS AGREEMENT (“Agreement”) is made and entered into this _____ day of _______________, 2014, by and between the City of Rancho Palos Verdes (hereinafter referred to 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 Page 1 of 10 G-4 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 costs and expenses, except Page 2 of 10 G-5 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. Page 3 of 10 G-6 (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 (“Written Page 4 of 10 G-7 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 6.1 Representation Page 5 of 10 G-8 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. 6.6 Conflicts of Interest Page 6 of 10 G-9 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 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 Page 7 of 10 G-10 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 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. Page 8 of 10 G-11 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 G-12 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above written. Dated: ________________________ Gilardi & Co, LLC (“CONSULTANT”) By: Printed Name: Title: By: Printed Name: Title: Dated: __________________________ CITY OF RANCHO PALOS VERDES ("CITY") By: Mayor ATTEST APPROVED AS TO FORM By: By: Page 10 of 10 G-13 Exhibit “A”: City’s Request For Proposals G-14 Exhibit “B”: Consultant’s Proposal G-15 G-16 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 1, 2013 to December 31, 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 1, 2013 to December 31 , 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 ofUUT, 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 ofUUT 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 ofUUT. 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 . 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 1, 2013 and December 31 , 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: AND Complete and sign the Claim Form . Submit full documentation of each and every telephone billing statement during the Refund Recovery Period (between August 1, 2013 and December 31, 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. PREFERRED FORM OF REFUND Your refund will be issued in the form you choose as your preferred method of disbursement. You may select to receive a check payment by mail of your refund or elect to contribute your claim refund amount to the City's Gifts for Parks Program. IF I ELECT TO CONTRIBUTE MY REFUND TO THE CITY, AM I ELIGIBLE TO RECEIVE A TAX DEDUCTION? If you elect to contribute your refund to the City of Rancho Palos Verdes, your claim will be processed and a letter documenting the approved refund amount will be mailed to you. Federal tax laws place limitations on the deductibility of charitable contributions by individual taxpayers. Any individuals who wish to take a charitable deduction for a contribution of their UUT refund to the City of Rancho Palos Verdes should consult with their individual tax preparer regarding the deductibility. 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. G-17 II CITY OF RANCHO PALOS VERDES TELECOMMUNICATION UTILITY USER TAX REFUND Claim Form YOU CAN ALSO FILE CLAIM AT: www.RanchoPalosVerdesUUTRefund.com <<Barcode>> <<ClaimID>> <<FirstName>> <<LastName>> <<Addrl>> <<Addr2>> <<City>>, <<State>> <<Zip>> Must Be Received By II Month XX, 2015 CRPV1 ~ 1. Your Refund -Choose One (1) of Three (3) Options (to submit your Claim Form for each eligible wireless phone plan and land line phone plan). Refund Claim Forms must be received by Month XX, 2015. 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 ofone (1) monthly billing statement during the Refund Recovery Period (between August 1, 2013 and December 31, 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 1, 2013 and December 31, 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. Ways to Submit Claim Form By mail Place completed Claim Fonn 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 415-256-9756. Online Visit www.RanchoPalosVerdesUUTRefund.com to complete the online Claim Form and electronically upload the required documentation for your selected refund option. 3. Primary Account Holder's Name and Current Address Primary Account Holder's First Name M.I. I I I I I I I I I Current Mailing Address I I I I I I Current Mailing Address Continued (Apartment/Suite/Lot/Room Number etc.) I I I I I I I I I I I I I I I I I I I I City State Zip Code I I I I I I I I I I I ITJ I I I II I lllllll ll l ll l ll lll II l ll lll 11 1111 111 1111111111 111111 11 111 11 1 FOR CLAIMS oe ITJ ce ITJ Q ooc Q RED PROCESSING Q LC Q A ONLY Q REV Q s II G-18 II 4. Landline Refund (if applicable) Land line Service Street Address Continuation of Land line Service Street Address City: Rancho Palos Verdes Landline Phone Number State: CA Zip Code: 90275 Landline Service Provider Name ~'------'I -I~ ~I -'---I ~'-------' Landline Account Number Desired Landline Refund: Fill only one (1) option 0 Option One -$25 Flat Refund 0 Option Two -Extrapolated Refund 5. Wireless Refund (if applicable) Wireless Billing Street Address I I I I I I I Continuation of Wireless Billing Street Address I I I I I I I I I I I City: Rancho Palos Verdes Wireless Phone Number Wireless Account Number State: CA Zip Code: 90275 Wireless Service Provider Name Desired Wireless Refund: Fill only one (1) option 0 Option One -$25 Flat Refund 0 Option Two -Extrapolated Refund 6. Preferred Form of Refund (Required): Fill only one (1) option 0 Refund Check Receive check payment by mail of your refund II 0 Option Three -Exact Refund 0 Option Three -Exact Refund 0 Contribution to City Contribute your refund to the City's Gifts for Parks Program (no refund will be sent to you). Federal tax laws place limitations on the deductibility of charitable contributions by individual taxpayers. Any individuals who wish to take a charitable deduction for a contribution of their UUT refund to the City should consult with their individual tax preparer regarding the deductibility. 7. Certification and Release of Records to Claim Administrator/Release of Claims Against City (Required) I certify that the information on this application and attaclunents 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 1, 2013 and December 31, 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 1, 2013 through December 31 , 2014 . 8. Signature and Date (Required) Signature: Date: 11 I lllllll llllll lllll II llllll lllllll 1111111111111111111111111111111 2 II G-19 RESOLUTION NO. 2014- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING OPTIONS FOR CLAIMANT REFUND OF UTILITY USER TAXES COLLECTED BY TELECOMMUNICATION PROVIDERS FROM THE CITY'S TAXPAYERS BETWEEN AUGUST 1, 2013 AND DECEMBER 31, 2014, AND REPEALING RESOLUTION NO. 2014-70 WHEREAS, on August 19, 2014, the City Council directed Staff to notify the entities that provide telecommunications services to City residents and businesses to cease collecting the UUT on behalf of the City until such time as revisions to the City's Utility User Tax are approved by a majority of the City's voters; the City Council further directed Staff to establish a separate account commitment encumbrance of the City's General Fund, which shall be referred to as the "Utility User Tax Telecommunication Claim Account" or "UUT Claim Account,'' and to place within that account the estimated amount of the total Utility User Tax collected by telecommunication providers from taxpayers in the City and remitted to the City during the twelve (12) month period beginning August 13, 2013, along with all Utility User Tax received from telecommunication providers after August 19, 2014, through December 31, 2014; and WHEREAS, on October 21, 2014, a process for presenting and paying claims for refunds of UUT was presented to the City Council; and WHEREAS, on October 21, 2014, Resolution No. 2014-70 was adopted identifying three options whereby residents could make a claim for refund; and WHEREAS, in November 2014 the City Council received citizen input proposing an option allowing residents and business claimants to contribute their refund to the City as a donation; WHEREAS, on December 16, 2014, a revised process for presenting and paying claims for refunds of UUT that incorporated the option for claimants to contribute their refund amount to City was presented to the City Council; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS: SECTION 1. The following process for administering claims for refunds of UUT on telecommunications services, which shall be administered by a claims administrator that will be selected by the City Council, for UUT that was paid and collected during the period from August 1, 2013 through December 31, 2014 ("Refund Recovery Period"), is hereby approved: Mailed notices shall be sent to every address in the City. In addition, notices shall be published in both the Palos Verdes Peninsula News and the Daily Breeze and on the City's website. Claims may be submitted by mail or electronically within six months of G-20 the date of the notice. A City taxpayer may submit a claim for a refund for each telecommunications account pursuant to any one of the following three options: 1. Submit a claim form provided by the City either electronically, by fax, or by mail, including the telecommunications provider(s), account number(s), and a signature releasing the City from any further claims and costs related to the payment of utility user tax on telecommunications services during the Refund Recovery Period. A flat-rate refund of $25 would be issued for each landline account and wireless account, as applicable. If a resident or business has paid more than $25 for a telecommunications account during the claim period and wishes to seek a refund for the higher amount, instead of using option 1 above, the taxpayer may submit a claim for the account pursuant to one of the two following options: 2. Submit a claim form provided by the City either electronically, by fax, or by mail, including the telecommunications provider(s), account number(s), and a signature releasing the City from any further claims and costs related to the payment of utility user tax on telecommunications services during the Refund Recovery Period, along with a copy of a single bill for each telecommunications account (note: a single account may include service for multiple telephone numbers). The UUT listed on the single bill would be multiplied by 17 months to establish the refund amount. 3. Submit a claim form provided by the City either electronically, by fax, or by mail, including the telecommunications provider(s), account number(s), and a signature releasing the City from any further claims and costs related to the payment of utility user tax on telecommunications services during the Refund Recovery Period, along with full documentation of telecommunications service for each telecommunications account for all of the months of the claim period to obtain a refund equal to the actual amount of telecommunications UUT paid during the period covered by the Claim Account. Under each of the three refund options, eligible claimants may elect either to receive a check for payment of the approved refund amount or to contribute the refund amount to the City as a donation to the City's Gifts for Parks Program. SECTION 2. Resolution No. 2014-70, adopted on October 21, 2014, is hereby repealed. SECTION 3. Staff is hereby directed to cause claims to be processed and refunds to be paid pursuant to the process set forth above. PASSED, APPROVED and ADOPTED this 16 51 day of December 2014. G-21 Mayor ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )ss CITY OF RANCHO PALOS VERDES I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2014-_ was duly and regularly passed and adopted by the said City Council at a regular meeting held on December 16, 2014. G-22