REQUEST FOR PROPOSALS FOR Franchise Fees, Sales and Use Tax Audits

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1 REQUEST FOR PROPOSALS FOR Franchise Fees, Sales and Use Tax Audits The City of Louisville, Colorado is accepting proposals for the purpose of performing sales and use tax, and franchise fee compliance audits from qualified contractors ( contractor ). Please review the following pages for complete information on the request for proposal process. Timeline of Activities and Proposal Format Four (4) hard copies of each proposal shall be submitted per the RFP and one copy in MS Word or PDF submitted via . The City of Louisville will receive proposals in response to this RFP until 5:00 p.m. MST on September 10, Proposals received after that time will not be reviewed. Proposals must be in a sealed envelope plainly marked with the project name RFP Audit Services, and shall be addressed as follows: Kevin Watson, Finance Director City of Louisville 749 Main Street Louisville CO Interviews of applicants selected by City for interview beginning the week of September 16, Anticipate final selection approximately September 30, Contract signed by City Council approximately October 15, 2013

2 REQUEST FOR PROPOSALS FOR FRANCHISE FEES, SALES AND USE TAX AUDITS Section 1. Summary of Request Purpose The City of Louisville, Colorado is accepting proposals from qualified contractors with proven franchise fee, and sales and use tax audit experience, or related experience, to perform two (2) relatively large audits as defined in the scope of work. Questions regarding the proposal can be directed to: Kevin Watson, Finance Director City of Louisville Main Street Louisville CO Section 2. Scope of Work The Scope of Work shall include but is not limited to the following: Assist with scheduling of Public Service Company of Colorado and Comcast of Colorado I, LLC ( Franchise Taxpayers ) for audit. Perform sales and use tax and franchise fee audits to ensure compliance with existing franchise terms and conditions, including franchise fee payment review (See Exhibit A ), and the payment of all City sales and use tax as required per the Louisville Municipal Code. (See Exhibit B ). Identify specific sources of revenue subject to sales tax, use tax or franchise fees by examining relevant data and supporting documentation, identify all revenue sources by classification, and verify calculations. Evaluate allocation methodology of revenue, conduct a search for unreported revenues and examine the Franchise Taxpayers database to determine if all active addresses within the City s boundaries were included in the sales tax, use tax and franchise fee remittances. Provide technical review of all audits to be submitted to the City for assessment and review. Provide comprehensive and defensible audit reports, work papers, correspondence, filing, and original data from the audits to the City. Provide support to the City for Franchise Taxpayer negotiations and protested assessment hearings as needed. Prepare correspondence, reports, special analysis, and legally required documentation subject to the timeline and approval of the City. 2

3 Maintain detailed records of verbal and written communications between the respondent and the taxpayer. Provide verbal and/or written audit updates, as needed or requested, to the Tax Manager. Make presentations to City management and City Council, as requested. Maintain knowledge of federal, state, and local legislation relating to the imposition of franchise fees and sales and use tax. Maintain adequate security for all information obtained in conjunction with this program relating to the Franchise Taxpayers and the reporting information provided by them in accordance with the City of Louisville ordinances and the Colorado Revised Statutes. Maintain, at the contractor s expense, comprehensive general liability and property damage insurance, worker s compensation insurance, and adequate bonding as required by the City, and as further defined in the Standard Terms and Conditions section of this RFP. Maintain adequate staff levels to ensure all services outlined in the contract to be negotiated are provided in an efficient, timely and professional manner, including ensuring that all staff members are adequately trained and the training is ongoing. Comply with the City s standards of conduct and agreed-upon audit processes and events. It is anticipated that the two (2) audits will be completed over a two year period. The City is under no obligation to renew any contract for any period, however, at the City s discretion, may extend the contract period to ensure completion of the desired audits. Section 3. Standard Terms and Conditions When preparing a proposal for submission in response to this RFP, contractors should be aware of the following terms and conditions which have been established by the City of Louisville: This request for proposals is not an offer to contract. The provisions in this RFP and any purchasing policies or procedures of the City are solely for the fiscal responsibility of the City, and confer no rights, duties or entitlements to any party submitting proposals. The City of Louisville reserves the right to reject any and all proposals, to consider alternatives, to waive any informalities and irregularities, and to re-solicit proposals. The City of Louisville reserves the right to conduct such investigations of and discussions with those who have submitted proposals or other entities as they deem necessary or appropriate to assist in the evaluation of any proposal or to secure maximum clarification and completeness of any proposal. 3

4 The successful proposer shall be required to sign a contract with the City in a form provided by and acceptable to the City. The contractor shall be an independent contractor of the City. The City of Louisville assumes no responsibility for payment of any expenses incurred by any proponent as part of the RFP process. Any reports, computerized data, records or other documents prepared by the respondent or received by the respondent in the performance of its obligations under a resulting contract shall be the exclusive property of the City, and all such materials shall be returned to the City upon completion, termination, or cancellation of a contract. The respondent shall not use, willingly allow, or cause such materials to be used for any purpose other than performance of all of the respondent s obligations under the resulting contract without prior written consent of the City. The contractor shall secure and maintain the following required insurance: o Worker s Compensation Insurance in the minimum amount required by applicable law for all employees and other persons as may be required by law. Such policy of insurance shall be endorsed to include the City as a certificate holder. o Comprehensive General Liability Insurance with a minimum combined single limits for each occurrence and aggregate limits to be determined at the time of contract negotiation. The policy shall be applicable to all premises and all operations of the respondent. The policy shall include coverage for bodily injury, broad form property damage (including completed operations), personal injury (including coverage for contractual and employee acts), blanket contractual, independent contractors, products, and completed operations. The policy shall contain a severability of interest provision. Coverage shall be provided on an occurrence basis as opposed to a claims made basis. Such insurance shall be endorsed to name the City as a certificate holder and name the City, their elected officials, officers, employees, and agents as additional insured parties. o Professional Liability (Errors and Omissions) Insurance with a minimum limit of coverage per claim and an annual aggregate limit to be determined at the time of contract negotiation. Such policy of insurance shall be obtained and maintained for (1) year following completion of all services under this agreement. Such policy of insurance shall be endorsed to include the City as certificate holders. o The Required Insurance shall be procured and maintained with insurers with an A- or better rating as determined by Best s Key Rating Guide. All 4

5 Required Insurance shall be continuously maintained to cover all liability, claims, demands, and other obligations assumed by the respondent. o All policies of insurance shall be primary insurance and any insurance carried by the City, their officers, or employees shall be excess and not contributory insurance to that provided by the respondent; provided, however, that the City shall not be obligated to obtain or maintain any insurance whatsoever for any claim, damage, or purpose arising from or related to the agreement contemplated by this RFP and the provision of services to be incorporated therein. The respondent shall not be an insured party for any City insurance policy or coverage. o The respondent shall be solely responsible for any deductible losses. No policy of insurance shall contain any exclusion for bodily injury or property damage arising from complete operations. Every policy of insurance shall provide that the City will receive notice no less than thirty (30) days prior to any cancellation, termination, or a material change in such policy. The following criteria will be used to evaluate all proposals: o The contractor s interest in the services which are the subject of this RFP, as well as their understanding of the scope of such services and the specific requirements of the City of Louisville. o The reputation, experience, and efficiency of the contractor. o The ability of the contractor to provide quality services within time and funding constraints. o References and evidence of satisfactory performance of similar or related activities. o Respondent s approach and methods to provide the audit services as outlined in this RFP o Prices/Rates. o The general organization of the proposal: Special consideration will be given to submittals which are appropriate, address the goals; and provide in a clear and concise format the requested information. o Such other factors as the City determines are relevant to consideration of the best interests of the City. Section 4. Required Submittals 5

6 The narrative portion and the materials presented in response to this RFP shall focus on these criteria, shall be submitted in the same order as requested, and must contain, at a minimum, all of the items listed below. Provide the name, address, and address of contractor. If an entity, provide the legal name of the entity and the names of the entity s principal(s). List the personnel to be assigned to this contract. Identify the manager that will serve the primary role in the delivery of services. Provide resumes for personnel proposed to provide the services, including each person s experience in Colorado sales and use tax, and franchise fee compliance and auditing. Identify any service areas anticipated being sub-contracted. Identify who the subcontractor(s) will be and the qualifications of the proposed subcontractor(s). Provide a review of your qualifications and a detailed explanation of how you plan to approach each audit and the methods that will be implemented or utilized to complete the required tasks outlined in the Scope of Services section of this RFP. Provide references for your work to include demonstrated experience providing similar services to other governmental entities and any experience working with home rule jurisdictions in the State of Colorado. Submit a fee contingent upon the results of the audit. This fee should be expressed as a percentage of the total additional tax and fees collected by the City based on the audit findings. Submit a fee based on an hourly billable rate and the estimated number of hours estimated for the project. Describe the overall billing process and detail the documentation to be used to support invoices submitted. Provide the completed pre-contract certification and return with your proposal. Thank you, we look forward to reviewing your proposal. 6

7 City of Louisville Public Services Contract Addendum Prohibition Against Employing Illegal Aliens Prohibition Against Employing Illegal Aliens. Contractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. Contractor shall not enter into a contract with a subcontractor that fails to certify to the Contractor that the subcontractor shall not knowingly employ or contract with an illegal alien to perform work under this contract. Contractor will participate in either the E-verify program or the Department program, as defined in C.R.S (3.3) and (3.7), respectively, in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services. Contractor is prohibited from using the E-verify program or the Department program procedures to undertake preemployment screening of job applicants while this contract is being performed. If Contractor obtains actual knowledge that a subcontractor performing work under this contract for services knowingly employs or contracts with an illegal alien, Contractor shall: a. Notify the subcontractor and the City within three days that the Contractor has actual knowledge that the subcontractor is employing or contracting with an illegal alien; and b. Terminate the subcontract with the subcontractor if within three days of receiving the notice required pursuant to this paragraph the subcontractor does not stop employing or contracting with the illegal alien; except that the Contractor shall not terminate the contract with the subcontractor if during such three days the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. 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 the authority established in C.R.S (5). If Contractor violates a provision of this Contract required pursuant to C.R.S , City may terminate the contract for breach of contract. If the contract is so terminated, the Contractor shall be liable for actual and consequential damages to the City. 7

8 Pre-Contract Certification in Compliance with C.R.S. Section (1) The undersigned hereby certifies as follows: That at the time of providing this certification, the undersigned does not knowingly employ or contract with an illegal alien; and that the undersigned will participate in the E-Verify program or the Department program, as defined in C.R.S (3.3) and (3.7), respectively, in order to confirm the employment eligibility of all employees who are newly hired for employment to perform under the public contract for services. Proposer: By Title: Date 8

9 DISCLOSURE STATEMENT Vendor must disclose any possible conflict of interest with the City of Louisville including, but not limited to, any relationship with any City of Louisville elected official or employee. Your response must disclose if a known relationship exists between any principal of your firm and any City of Louisville elected official or employee. If, to your knowledge, no relationship exists, this should also be stated in your response. Failure to disclose such a relationship may result in cancellation of a contract as a result of your response. This form must be completed and returned in order for your proposal to be eligible for consideration. NO KNOWN RELATIONSHIPS EXIST RELATIONSHIP EXISTS (Please explain relationship) I CERTIFY THAT: 1. I, as an officer of this organization, or per the attached letter of authorization, am duly authorized to certify the information provided herein are accurate and true as of the date; and 2. My organization shall comply with all State and Federal Equal Opportunity and Non- Discrimination requirements and conditions of employment. Printed or Typed Name Title Signature 9

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