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HomeMy WebLinkAboutC19-422 Public Resource Management Alliance Corporation dba HdL CompaniesAGREEMENT FOR SERVICES BETWEEN EAGLE COUNTY, COLORADO AND PUBLIC RESOURCE MANAGEMENT ALLIANCE CORPORATION, a Colorado Corporation d/b/a HdL COMPANIES THIS AGREEMENT (“Agreement”) is effective as of the 2nd day of December, 2019 by and between Public Resource Management Alliance Corporation, a Colorado Corporation d/b/a HdL Companies (hereinafter “Contractor”) and Eagle County, Colorado, a body corporate and politic (hereinafter “County”). RECITALS WHEREAS, County is in need of collection and administration of cigarette, tobacco, and marijuana taxes and WHEREAS, Contractor is authorized to do business in the State of Colorado and has the time, skill, expertise, and experience necessary to provide the Services as defined below in paragraph 1 hereof; and WHEREAS, this Agreement shall govern the relationship between Contractor and County in connection with the Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and the following promises Contractor and County agree as follows: 1. Services or Work. Contractor agrees to diligently provide all services, labor, personnel and materials necessary to perform and complete the services or work described in Exhibit A (“Services” or “Work”) which is attached hereto and incorporated herein by reference. The Services shall be performed in accordance with the provisions and conditions of this Agreement. a. Contractor agrees to furnish the Services in a timely and expeditious manner consistent with the applicable standard of care and the schedule set forth in Exhibit A. By signing below Contractor represents that it has the expertise and personnel necessary to properly and timely perform the Services. b. In the event of any conflict or inconsistency between the terms and conditions set forth in Exhibit A and the terms and conditions set forth in this Agreement, the terms and conditions set forth in this Agreement shall prevail. c. Contractor shall use, hold, and maintain Confidential and Protected Information in compliance with any and all applicable laws and regulations only in facilities located within the United States, and shall maintain a secure environment that ensures confidentiality of all Confidential and Protected Information. 2. County’s Representative. The Finance Department’s designee shall be Contractor’s contact with respect to this Agreement and performance of the Services. 3. Term of the Agreement. This Agreement shall commence upon the date first written above, and subject to the provisions of paragraph 11 hereof, shall continue in full force and effect through the 31st day of December, 2020. DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 2 Eagle County General Services Final 5/14 4. Extension or Modification. This Agreement may be extended for up to three additional one year terms upon written agreement of the parties. Any amendments or modifications shall be in writing signed by both parties. No additional services or work performed by Contractor shall be the basis for additional compensation unless and until Contractor has obtained written authorization and acknowledgement by County for such additional services in accordance with County’s internal policies. Accordingly, no course of conduct or dealings between the parties, nor verbal change orders, express or implied acceptance of alterations or additions to the Services, and no claim that County has been unjustly enriched by any additional services, whether or not there is in fact any such unjust enrichment, shall be the basis of any increase in the compensation payable hereunder. In the event that written authorization and acknowledgment by County for such additional services is not timely executed and issued in strict accordance with this Agreement, Contractor’s rights with respect to such additional services shall be deemed waived and such failure shall result in non-payment for such additional services or work performed. 5. Compensation. County shall compensate Contractor for the performance of the Services in a sum computed and payable as set forth in Exhibit A. The performance of the Services under this Agreement shall not exceed $8,000.00 one-time start up cost and $17,100 for year one. Total not to exceed $25,100. The costs for Services for each renewal period shall be two percent (2%) higher than the previous year as set forth in Exhibit A. Contractor shall not be entitled to bill at overtime and/or double time rates for work done outside of normal business hours unless specifically authorized in writing by County. a. Payment will be made for Services performed according to the terms of this Agreement within thirty (30) days of receipt of a proper and accurate invoice from Contractor. b. If, at any time during the term or after termination or expiration of this Agreement, County reasonably determines that any payment made by County to Contractor was improper because the Services for which payment was made were not performed as set forth in this Agreement, then upon written notice of such determination and request for reimbursement from County, Contractor shall forthwith return such payment(s) to County. Upon termination or expiration of this Agreement, unexpended funds advanced by County, if any, shall forthwith be returned to County. c. County will not withhold any taxes from monies paid to the Contractor hereunder and Contractor agrees to be solely responsible for the accurate reporting and payment of any taxes related to payments made pursuant to the terms of this Agreement. d. Notwithstanding anything to the contrary contained in this Agreement, County shall have no obligations under this Agreement after, nor shall any payments be made to Contractor in respect of any period after December 31 of any year, without an appropriation therefor by County in accordance with a budget adopted by the Board of County Commissioners in compliance with Article 25, title 30 of the Colorado Revised Statutes, the Local Government Budget Law (C.R.S. 29-1-101 et. seq.) and the TABOR Amendment (Colorado Constitution, Article X, Sec. 20). 6. Subcontractors. Contractor acknowledges that County has entered into this Agreement in reliance upon the particular reputation and expertise of Contractor. Contractor shall not enter into any subcontractor agreements for the performance of any of the Services or additional services without County’s prior written consent, which may be withheld in County’s sole discretion. County shall have the right in its reasonable discretion to approve all personnel assigned to the subject Project during the performance of this Agreement and no personnel to whom County has an objection, in its reasonable discretion, shall be assigned to the Project. Contractor shall require each subcontractor, as approved by County and to the extent of the Services to be performed by the subcontractor, to be bound to Contractor by the terms of this Agreement, and to assume toward Contractor all the obligations and responsibilities which Contractor, by this Agreement, assumes toward County. County shall have the right (but not the obligation) to enforce the provisions of this Agreement against any subcontractor hired by Contractor and DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 3 Eagle County General Services Final 5/14 Contractor shall cooperate in such process. The Contractor shall be responsible for the acts and omissions of its agents, employees and subcontractors. 7. Insurance. Contractor agrees to provide and maintain at Contractor’s sole cost and expense, the following insurance coverage with limits of liability not less than those stated below: a. Types of Insurance. i. Workers’ Compensation insurance as required by law. ii. Auto coverage with limits of liability not less than $1,000,000 each accident combined bodily injury and property damage liability insurance, including coverage for owned, hired, and non-owned vehicles. iii. Commercial General Liability coverage to include premises and operations, personal/advertising injury, products/completed operations, broad form property damage with limits of liability not less than $1,000,000 per occurrence and $1,000,000 aggregate limits. b. Other Requirements. i. The automobile and commercial general liability coverage shall be endorsed to include Eagle County, its associated or affiliated entities, its successors and assigns, elected officials, employees, agents and volunteers as additional insureds. A certificate of insurance consistent with the foregoing requirements is attached hereto as Exhibit B. ii. Contractor’s certificates of insurance shall include subcontractors, if any as additional insureds under its policies or Contractor shall furnish to County separate certificates and endorsements for each subcontractor. iii. The insurance provisions of this Agreement shall survive expiration or termination hereof. iv. The parties hereto understand and agree that the County is relying on, and does not waive or intend to waive by any provision of this Agreement, the monetary limitations or rights, immunities and protections provided by the Colorado Governmental Immunity Act, as from time to time amended, or otherwise available to County, its affiliated entities, successors or assigns, its elected officials, employees, agents and volunteers. v. Contractor is not entitled to workers’ compensation benefits except as provided by the Contractor, nor to unemployment insurance benefits unless unemployment compensation coverage is provided by Contractor or some other entity. The Contractor is obligated to pay all federal and state income tax on any moneys paid pursuant to this Agreement. 8. Indemnification. The Contractor shall indemnify and hold harmless County, and any of its officers, agents and employees against any losses, claims, damages or liabilities for which County may become subject to insofar as any such losses, claims, damages or liabilities arise out of, directly or indirectly, this Agreement, or are based upon any performance or nonperformance by Contractor or any of its subcontractors hereunder; and Contractor shall reimburse County for reasonable attorney fees and costs, legal and other expenses incurred by County in connection with investigating or defending any such loss, claim, damage, liability or action. This indemnification shall not DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 4 Eagle County General Services Final 5/14 apply to claims by third parties against the County to the extent that County is liable to such third party for such claims without regard to the involvement of the Contractor. This paragraph shall survive expiration or termination hereof. 9. Ownership of Documents. All documents (including electronic files) and materials obtained during, purchased or prepared in the performance of the Services shall remain the property of the County and are to be delivered to County before final payment is made to Contractor or upon earlier termination of this Agreement. Other materials, statistical data derived from other clients and other client projects, software, methodology and proprietary work used or provided by CONTRACTOR to the County not specifically created and delivered pursuant to the Services outlined in this Agreement shall not be owned by the County and may be protected by a copyright held by CONTRACTOR and CONTRACTOR reserves all rights granted to it by any copyright. The County shall not reproduce, sell, or otherwise make copies of any copyrighted material, subject to the following exceptions: (1) for exclusive use internally by County staff and/or employees; or (2) pursuant to a request under the Colorado Open Records Act, § 24-72-203, C.R.S., to the extent that such statute applies; or (3) pursuant to law, regulation, or court order. CONTRACTOR waives any right to prevent its name from being used in connection with the Services. CONTRACTOR may publicly state that it performs the Services for the County. 10. Notice. Any notice required by this Agreement shall be deemed properly delivered when (i) personally delivered, or (ii) when mailed in the United States mail, first class postage prepaid, or (iii) when delivered by FedEx or other comparable courier service, charges prepaid, to the parties at their respective addresses listed below, or (iv) when sent via facsimile so long as the sending party can provide facsimile machine or other confirmation showing the date, time and receiving facsimile number for the transmission, or (v) when transmitted via e-mail with confirmation of receipt. Either party may change its address for purposes of this paragraph by giving five (5) days prior written notice of such change to the other party. COUNTY: Eagle County, Colorado Attention: Finance Department 500 Broadway Post Office Box 850 Eagle, CO 81631 Telephone: 970-328-3508 Facsimile: 970-328-3519 E-Mail: Martha.anderson@eaglecounty.us With a copy to: Eagle County Attorney 500 Broadway Post Office Box 850 Eagle, Co 81631 Telephone: 970-328-8685 Facsimile: 970-328-8699 E-Mail: atty@eaglecounty.us CONTRACTOR: HdL Companies 7200 E. Dry Creek Rd. Suite E101 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 5 Eagle County General Services Final 5/14 Centennial, CO 80112 Attention: Kimberly Konczak Telephone: 720-875-4164 E-Mail: kkonczak@hdlcompanies.com 11. Termination. County may terminate this Agreement, in whole or in part, at any time and for any reason, with or without cause, and without penalty therefor with thirty (30) calendar days’ prior written notice to the Contractor. Upon termination of this Agreement, Contractor shall immediately provide County with all documents as defined in paragraph 9 hereof, in such format as agreed upon between County and Contractor and shall return all County owned materials and documents. County shall pay Contractor for Services satisfactorily performed to the date of termination. 12. Venue, Jurisdiction and Applicable Law. Any and all claims, disputes or controversies related to this Agreement, or breach thereof, shall be litigated in the District Court for Eagle County, Colorado, which shall be the sole and exclusive forum for such litigation. This Agreement shall be construed and interpreted under and shall be governed by the laws of the State of Colorado. 13. Execution by Counterparts; Electronic Signatures. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The parties approve the use of electronic signatures for execution of this Agreement. Only the following two forms of electronic signatures shall be permitted to bind the parties to this Agreement: (i) Electronic or facsimile delivery of a fully executed copy of the signature page; (ii) the image of the signature of an authorized signer inserted onto PDF format documents. All documents must be properly notarized, if applicable. All use of electronic signatures shall be governed by the Uniform Electronic Transactions Act, C.R.S. 24-71.3-101 to 121. 14. Other Contract Requirements and Contractor Representations. a. Contractor has familiarized itself with the nature and extent of the Services to be provided hereunder and the Property, and with all local conditions, federal, state and local laws, ordinances, rules and regulations that in any manner affect cost, progress, or performance of the Services. b. Contractor will make, or cause to be made, examinations, investigations, and tests as he deems necessary for the performance of the Services. c. To the extent possible, Contractor has correlated the results of such observations, examinations, investigations, tests, reports, and data with the terms and conditions of this Agreement. d. To the extent possible, Contractor has given County written notice of all conflicts, errors, or discrepancies. e. Contractor shall be responsible for the completeness and accuracy of the Services and shall correct, at its sole expense, all significant errors and omissions in performance of the Services. The fact that the County has accepted or approved the Services shall not relieve Contractor of any of its responsibilities. Contractor shall perform the Services in a skillful, professional and competent manner and in accordance with the standard of care, skill and diligence applicable to contractors performing similar services. Contractor represents and warrants that it has the expertise and personnel necessary to properly perform the Services and shall comply with the highest standards of customer service to the public. Contractor shall provide appropriate supervision to its employees to ensure the Services are performed in accordance with this Agreement. This paragraph shall survive termination of this Agreement. DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 6 Eagle County General Services Final 5/14 f. Contractor agrees to work in an expeditious manner, within the sound exercise of its judgment and professional standards, in the performance of this Agreement. Time is of the essence with respect to this Agreement. g. This Agreement constitutes an agreement for performance of the Services by Contractor as an independent contractor and not as an employee of County. Nothing contained in this Agreement shall be deemed to create a relationship of employer-employee, master-servant, partnership, joint venture or any other relationship between County and Contractor except that of independent contractor. Contractor shall have no authority to bind County. h. Contractor represents and warrants that at all times in the performance of the Services, Contractor shall comply with any and all applicable laws, codes, rules and regulations. i. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all other agreements or understanding between the parties with respect thereto. j. Contractor shall not assign any portion of this Agreement without the prior written consent of the County. Any attempt to assign this Agreement without such consent shall be void. k. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective permitted assigns and successors in interest. Enforcement of this Agreement and all rights and obligations hereunder are reserved solely for the parties, and not to any third party. l. No failure or delay by either party in the exercise of any right hereunder shall constitute a waiver thereof. No waiver of any breach shall be deemed a waiver of any preceding or succeeding breach. m. The invalidity, illegality or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision hereof. n. The signatories to this Agreement aver to their knowledge no employee of the County has any personal or beneficial interest whatsoever in the Services or Property described in this Agreement. The Contractor has no beneficial interest, direct or indirect, that would conflict in any manner or degree with the performance of the Services and Contractor shall not employ any person having such known interests. o. The Contractor, if a natural person eighteen (18) years of age or older, hereby swears and affirms under penalty of perjury that he or she (i) is a citizen or otherwise lawfully present in the United States pursuant to federal law, (ii) to the extent applicable shall comply with C.R.S. 24-76.5-103 prior to the effective date of this Agreement. 15. Prohibitions on Government Contracts. As used in this Section 15, the term undocumented individual will refer to those individuals from foreign countries not legally within the United States as set forth in C.R.S. 8-17.5-101, et. seq. If Contractor has any employees or subcontractors, Contractor shall comply with C.R.S. 8-17.5-101, et. seq., and this Agreement. By execution of this Agreement, Contractor certifies that it does not knowingly employ or contract with an undocumented individual who will perform under this Agreement and that Contractor will participate in the E-verify Program or other Department of Labor and Employment program (“Department Program”) in order to confirm the eligibility of all employees who are newly hired for employment to perform Services under this Agreement. DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 7 Eagle County General Services Final 5/14 a. Contractor shall not: i. Knowingly employ or contract with an undocumented individual to perform Services under this Agreement; or ii. Enter into a subcontract that fails to certify to Contractor that the subcontractor shall not knowingly employ or contract with an undocumented individual to perform work under the public contract for services. b. Contractor has confirmed the employment eligibility of all employees who are newly hired for employment to perform Services under this Agreement through participation in the E-Verify Program or Department Program, as administered by the United States Department of Homeland Security. Information on applying for the E-verify program can be found at: https://www.uscis.gov/e-verify c. Contractor shall not use either the E-verify program or other Department Program procedures to undertake pre-employment screening of job applicants while the public contract for services is being performed. d. If Contractor obtains actual knowledge that a subcontractor performing work under the public contract for services knowingly employs or contracts with an undocumented individual, Contractor shall be required to: i. Notify the subcontractor and County within three (3) days that Contractor has actual knowledge that the subcontractor is employing or contracting with an undocumented individual; and ii. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to subparagraph (i) of the paragraph (d) the subcontractor does not stop employing or contracting with the undocumented individual; except that Contractor shall not terminate the contract with the subcontractor if during such three (3) days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an undocumented individual. e. Contractor shall comply with any reasonable request by the Department of Labor and Employment made in the course of an investigation that the department is undertaking pursuant to its authority established in C.R.S. 8-17.5-102(5). f. If Contractor violates these prohibitions, County may terminate the Agreement for breach of contract. If the Agreement is so terminated specifically for breach of this provision of this Agreement, Contractor shall be liable for actual and consequential damages to County as required by law. g. County will notify the Colorado Secretary of State if Contractor violates this provision of this Agreement and County terminates the Agreement for such breach. 16. Obligation of County DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 8 Eagle County General Services Final 5/14 a. County-Furnished Data. In addition to any obligations of County set forth in this Agreement County will promptly provide to CONTRACTOR all data relating to or which may be necessary for CONTRACTOR’s performance of the Services. CONTRACTOR shall be permitted to rely on the accuracy, timeliness, and completeness of the information provided by County, and in no event shall CONTRACTOR be liable to County as a result of such reliance. b. Timely Review. County will examine CONTRACTOR’s reports, specifications, notices, proposals, and other documents. In the event that a decision is required of County in order for CONTRACTOR to perform the Services, County shall; render such decision in writing in a timely manner. c. Litigation Assistance. The Services do not include services that CONTRACTOR may be required or requested to provide to support, to prepare, to document, to bring, to defend, or to assist in litigation undertaken or defended by Client (“Litigation Services”). Costs and expenses related to such Litigation Services required or requested of CONTRACTOR by Client will be reimbursed by Client at CONTRACTOR’s actual cost. 17. General Legal Provisions a. Force Majeure. CONTRACTOR is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of CONTRACTOR. 18.. No Conflict of Interest. Neither the performance of the Services by Contractor nor this Agreement shall preclude Contractor from making proposals on or providing similar services to County in the future. Without limiting the forgoing, information and knowledge gained by Contractor in providing the Services shall not create or constitute a conflict of interest in making proposals on or providing additional services to County. 19. Non-Exclusive Provider to County. This Agreement shall not limit the right of Contractor to contract with other persons or entities to provide merchandise or services of any kind whatsoever, including, but not limited to services similar to the Services, nor shall this Agreement prohibit or limit Contractor in any way from providing such services. [REST OF PAGE INTENTIONALLY LEFT BLANK] DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 9 Eagle County General Services Final 5/14 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first set forth above. COUNTY OF EAGLE, STATE OF COLORADO, By and Through Its COUNTY MANAGER By: ______________________________ Jeff Shroll, County Manager CONTRACTOR: By:________________________________ Print Name: _________________________ Title: ______________________________ DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 CIO Robert Gray 10 Eagle County General Services Final 5/14 EXHIBIT A SCOPE OF SERVICES, SCHEDULE, FEES Please see attachment. EXHIBIT B INSURANCE CERTIFICATE Please see attachment. DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Sales and Use Tax Services 1 Eagle County PROPOSAL FOR CIGARETTE, TOBACCO, AND MARIJUANA TAX COLLECTION AND ADMINISTRATION November 18, 2019 SUBMITTED BY HdL Companies 7200 E. Dry Creek Rd. Suite E101 Centennial, CO 80112 hdlcompanies.com CONTACT Kimberly Konczak T: 720.875.4164 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 2 SCOPE OF WORK ............................................................................................................... 3 QUALIFICATIONS ................................................................................................................ 6 COST PROPOSAL .............................................................................................. ………….10 1 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 EXECUTIVE SUMMARY Eagle County has been given the authorization with House Bill No. 19-1033 to levy a special sales tax on sales of nicotine products. The County seeks a partner to administer a tax program in order to relieve the County from the burden of administering, collecting, and tracking an additional tax type, along with the inherent taxpayer servicing. HdL is uniquely suited to collaborate with the County and provide a tax administration program that will increase revenue (and fund public health and welfare campaigns) for the County, while alleviating the need for additional resources to manage such a program. This proposal highlights our qualifications, experience, and delivery approach for an effective tax administration program to serve Eagle County (the County). Our team is distinctly qualified to address the needs of the County by employing expert and dedicated staff to deliver efficient and courteous services that will exceed your expectations. In addition to the delivery of cigarette, tobacco, and marijuana tax administration services, our goal is to build a mutually beneficial, long- lasting partnership with Eagle County and its local jurisdictions. As you review our proposal, you will find we offer: • An unmatched team of professionals that brings more than 75 years of experience in the delivery of tax and license administration services and 100 years of experience in tax compliance auditing services. • A team with extensive financial accounting experience; our staff includes Certified Internal Auditors (CIA) and Certified Revenue Examiners (CRE). • A team with extensive knowledge of Colorado tax law through the ongoing delivery of services to Colorado municipalities over the past 17 years. Thank you for the opportunity to present this proposal to Eagle County. It is our mission to align with the County in our mutual objective to improve our communities and the lives and experiences of the citizens within them. 2 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 SCOPE OF WORK Our management approach to Eagle County's Tax Administration is designed to facilitate accuracy and efficiency in collections and data management, taxpayer service and compliance, and knowledge and application of local and State laws and regulations. In our dealings with any County staff, taxpayer, citizen, group, or company, our communications will be courteous, considerate, and informative. We are keenly aware of and fully appreciate the political sensitivity of administering a tax program in a community, and we are experienced in conducting business in a professional and tactful manner to achieve the desired results fairly and consistently. We deliver our services through our highly experienced team applying a work plan and procedures that are thoroughly tested and approved and implemented by our clients. Our approach has been proven successful on other projects with work scopes that are the same or very similar to what we will be performing for Eagle County. Project Chartering At the onset of the contract we will review the Scope of Work with the County to confirm that all parties are in full agreement with the details of the Scope of Work that we plan to follow. Our Approach Upon initiation by Eagle County, HdL will begin the organization process by establishing Policies and Procedures in accordance with the adopted Eagle County Tax Ordinance, with references to the State of Colorado Revised Statutes. HdL will adhere to the County’s enforcement and compliance policies to apply them uniformly among all taxpayers and to maximize revenue collections. The HdL team will seamlessly integrate into the County’s operations by working with County administration, staff, and taxpayers and customers. Software HdL utilizes HdL Prime Tax and Licensing software for customized database management, and revenue collections and reconciliation. • HdL will customize, design, and maintain Prime for Eagle County's Tax administration • HdL will customize, design, and maintain Prime’s online filing portal for Eagle County taxpayers and businesses • HdL will provide Eagle County with reporting access to view up-to-the-minute taxpayer and business information 24 hours a day, 7 days a week Processing HdL will: 3 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 • Process the entry level data conversion necessary to enable collection of taxes by the date specified in the contract, at which time HdL will be the collection agency for all the Eagle County Cigarette, Tobacco, and Marijuana Tax revenue • Collect the appropriate taxes, penalty and interest on behalf of the County • Receive all tax payments via on-line (HdL Prime), which is the most efficient and cost effective method. Taxpayer can file return and make payment through Prime, accessible via a direct link from the existing Eagle County website. • HdL will provide comprehensive services of Cigarette, Tobacco, and Marijuana Tax collection as follows: o Collect Cigarette, Tobacco, and Marijuana Taxes imposed by the County o Receive, process, and issue Marijuana Tax License Renewals (optional) o Provide comprehensive customer service support and education related to Cigarette, Tobacco, and Marijuana Tax • Send ongoing compliance notices for Failure to File and Balance Due as follows: o Mail an Initial Notice within 10 days of the due date of the return o Mail Second Delinquency Notice 30 calendar days after the date the first notice was mailed o If account is uncollected after sixty (60) days from 1st Delinquency of Balance Due, Notice Preliminary Estimated Assessment Notices will be sent to Taxpayers. o HdL may, as it is determined appropriate, advise designated County and local municipal staff of disposition if no response to 3rd (Preliminary Assessment) Notice, and provide County staff and/or County Attorney with documentation required for further enforcement 4 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 Taxpayer outreach, education, notification, and reporting HdL understands how essential it is to properly notify the business community and taxpayers of any changes to local law that will affect the way they are currently operating. HdL has experience with implementing tax and licensing programs in local governments and will coordinate with County staff to provide effective processes for educating and notifying all businesses affected by the change in tax collections. All relevant Eagle County businesses will be notified of the newly adopted Eagle County Tax Ordinance with an explanation of its impact on applicable businesses in Eagle County. The mail-out notification to these businesses will include informational packets approved by the County. HdL staff will be available via contact phone and email provided in the informational packet to address specific issues and concerns of the businesses regarding the change. The County’s IT Department will also receive contact information and a list of frequently asked questions for inclusion on the County’s web site. Taxpayer notification, education, and outreach does not end after the initial transition. HdL is committed to providing excellent customer service for the duration of the contract. We consider ourselves an extension of the County and will provide thorough, courteous, timely, accurate, and professional correspondence, both written and verbal, to taxpayers and citizens. In our interactions with taxpayers and citizens, we will seize all opportunities to educate and facilitate understanding of the County’s ordinance. HdL has created forms and templates associated with most projects in our portfolio. Over the course of our experience in working with local government, we have developed best practices in form design. We will present to the County all forms we develop and incorporate pertinent information necessary to perform effective tax administration and thorough reporting. HdL will provide monthly acitivity reports of revenue activities to the Finance Department. The monthly report will include information on number of tax returns processed, revenues received, and notices sent. Additional Services • Compliance Audit: in an effort to create a level playing field and ensure compliance with the imposed Cigarette, Tobacco, and Marijuana taxes, HdL is poised to serve the County in performing compliance audits. • Marijuana License Administration 5 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 QUALIFICATIONS Founded in 1983, HdL Companies was established to maximize local government revenues by providing a variety of revenue administration, audits, analytical services and software products. Hinderliter, de Llamas and Associates (HdL), a 100% employee owned company, provides tax and license administration, audit and consulting services for sales and use taxes. The firm developed California’s first computerized sales tax management program in 1983 and was responsible for securing legislation (AB 1611) that allowed independent verification of state allocations. In 1990, HdL Coren & Cone was established to provide audit and information services related to property taxes. The third affiliated company, HdL Software, was formed in 1996 to provide innovative software processing tools for business licensing, and other locally administered revenues. HdL’s systematic and coordinated approach to revenue management and economic data analysis is currently being utilized by over 500 local governments in six states. Experience It is important to recognize that even though the services are being delivered by a private- sector partner, the public and taxpayers we contact and interact with will relate our activities directly back to Eagle County. We build teams that share the same vision and commitment to success. We emphasize professionalism, respect, trust, and integrity. HdL has the resources, expertise and bench strength to independently serve Eagle County. Additionally, you will find we provide:  Demonstrated competency in all aspects of service program design and management through field-tested and proven service delivery plans.  Our team has extensive knowledge of Colorado revenue and tax law through the ongoing delivery of local sales and use tax administration and collection services in the City of Centennial, CO, sales tax auditing in the Town of Breckenridge, City of Colorado Springs, and construction use tax auditing in the City of Wheat Ridge, CO.  HdL is a proud member and sponsor of the CGFOA, CCCMA, and CML.  HdL has recovered over $2 billion in revenues for our local public agency clients. CITY OF CENTENNIAL, COLORADO HdL Companies currently provides full and comprehensive Sales and Use Tax and Business License Collection and Administration services for the City of Centennial. • Processes 25,000 +/- sales tax returns, 6,500 Business Licenses, and collects in excess of $30,000,000 annually in sales tax revenue. • Provides taxpayer service averaging 400 calls per month. 6 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 During 2009-2010, we provided sales and use tax audit services to the City of Centennial. Michelle Godfrey was responsible for the process beginning with initial contact with the taxpayer to completion of the audit report and work papers to be submitted to the City for the assessment and collection of the taxes, penalties and interest due. We discovered $64,727.61 in Sales Tax revenue and $270,814.70 in Building Materials Use Tax revenue with a cost of $87,210.00 and a 385% return on investment. We continued the Building Materials Use Tax program, including the development and administration of a Building Materials Use Tax Reconciliation program, from 2011-2013 and collected an additional $157,790.68 in “escaped” Use Tax. CITY OF ANNISTON, ALABAMA HdL Companies provides the City of Anniston with administration and collection of its Sales, Use, Lodgings, and Rental taxes, formerly administered by the State of Alabama Department of Revenue (ADOR). • We notified over 4,000 taxpayers of the change in tax administration and collection for the City of Anniston. • HdL processes approximately 55,000 tax returns, and collects in excess of $20,000,000 annually in sales tax revenue at a cost to the City of approximately 1% of total revenue. • HdL provides taxpayer customer service averaging 150 calls per month. • In April 2015, we provided a three-year analysis of the City’s sales, use, rental, and lodgings tax records derived from ADOR and identified an annual understatement of $542,928.00 comprised of 433 non-compliant taxpayers. • HdL provides auditing services for sales, use, rental, and lodgings taxes and business license taxes. During the City’s 2016 Fiscal Year, over $449,000 of unreported revenue was identified and collected through audit. References City of Centennial, Colorado Sales and Use Tax and Business License Collection and Administration Services Project Manager: Michelle Godfrey Team Members: Sayaka Laub; Shawn Frey Contact: Mr. Doug Farmen, Finance Director, 303-325-8000 Mr. Jeff Cadiz, Revenue Manager, 303-325-8000 Additional Services Provided to City of Centennial: 7 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 • 2002 - 2011: Provided Contractor Licensing, Use Tax, and Bus Shelter program administration and collection services • In 2006: Identified, confirmed, and facilitated collection of $4.4 Million of Motor Vehicle Tax revenue for the City • In 2006: Before the City of Centennial began self-collection of sales tax and prior to a business licensing program, identified and confirmed 4,275 businesses operating in the City • In 2006: Discovered in excess of 100 Sales Tax accounts not being collected for the City by the State of Colorado with approximate value of over $500,000 per year in revenue • September 2009: Conducted a Retail and Business Licensing Compliance Field Survey discovering 1,728 unlicensed businesses. • September 2009 - January 2010: Initiated the City's first audit program designed to identify and examine sales and use tax audit candidates. Audit examinations were performed by Michelle Godfrey, resulting in $110,000 of additional revenues • As of April 30, 2019, with the extensive efforts of City staff and City Council, HdL helped the City achieve an 86% rate of tax and license online filing City of Colorado Springs, CO Auditing Services Project Manager: Shawn Frey Contact: Ms. Cindy Strong-Herlik, Senior Auditor, 719-385-5239 Services began in 2017 and are ongoing. City of Anniston, AL Sales, Use, Lodgings, and Rental Tax Administration and Auditing Services Project Manager: Shawn Frey Contact: Mr. Corey Salley, Finance Director, 256-231-7780 Services began in 2014 and are ongoing. Business License Compliance, Auditing Services Project Manager: Steve Whitman Team Members: Ashley Oliver, Keri Calloway, Tracey Pate Contact: Mr. Corey Salley, Finance Director, 256-231-7780 Services began in 2014 and are ongoing. City of Weaver, AL 8 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 Administration and collection of Sales and Use Taxes, Gasoline, Tobacco, Liquor, and Wine Taxes Project Manager: Shawn Frey Contact: Chasity Whetstone, City Clerk, 256-820-1121 Services began in April 2009 and are ongoing. City of Birmingham, AL Business License Compliance Services Project Manager: Ashley Oliver Contact: Elton Hammonds, Tax & License Administrator, 205-254-2747 Services began in April 2015 and are ongoing. City of Beverly Hills, CA Sales and Use Tax Audit and Management Services, Business License and Property Tax Services Contact: Jeff Muir, Finance Director, 310-285-1000 Services began in November 2013 and are ongoing. 9 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 Proposal for Cigarette, Tobacco, and Marijuana Tax Collection and Administration Eagle County, CO November 18, 2019 COST PROPOSAL HdL has provided Eagle County with an annual cost of services for a three-year program. Billing will be monthly based upon 1/12 of the total annual cost. Invoices will be provided the first of each month for that month's services. Additional services and related costs offered by HdL, included in this proposal, are outlined below and subject to further understanding of service needs and associated scope. Tax Administration Cost Three-Year Contract Options (Upon Mutual Agreement of the County and HdL) The following annual costs reflect a year over year increase of 2%. One-Time Start Up Cost: $8,000.00 Year One $17,100.00 Year Two $17,442.00 Year Three $17,790.84 Audit $110.00/hour Additional (Optional) Services Cost Marijuana License Administration TBD Data Compilation/Analysis/Cleansing $100.00/hour 10 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY 11/26/2019 Woodruff Sawyer 2 Park Plaza,Suite 500 Irvine CA 92614 Audrey Curtis 949.435.7345 949.476.3118 acurtis@woodruffsawyer.com National Fire Insurance Company of Hartford 20478 HDLCOMP-01 Continental Insurance Company 35289HinderliterdeLlamas&Associates HdL Software,LLC. 120 S State College Blvd.,Suite 200 Brea CA 92821 Continental Casualty Company 20443 Federal Insurance Company 20281 Lloyd's of London Syndicate #2987 1149337612 A X 1,000,000 X 1,000,000 15,000 1,000,000 2,000,000 X 6056953483 5/26/2019 5/26/2020 2,000,000 A 1,000,000 X 6056953466 5/26/2019 5/26/2020 B X X 3,000,00060569535025/26/2019 5/26/2020 3,000,000 X 10,000 B X60569534975/26/2019 5/26/2020 1,000,000 1,000,000 1,000,000 E C D Professional Liability/Claim Made Cyber Liability Crime MPL1007919 6078657761 82556901 5/26/2019 5/26/2019 12/1/2018 5/26/2020 5/26/2020 5/26/2020 Each Claim/Aggregate Cyber Limit Crime Limit $2,000,000 $2,000,000 $1,000,000 Evidence of Insurance Eagle County 500 Broadway Eagle CO 91631 DocuSign Envelope ID: 10EE2979-55FE-423E-97BA-E36186E1F259