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HomeMy WebLinkAbout2002 08 26 Regular I MBIA MuniService Company Agreement . . . COMMISSION AGENDA ITEM .JJ-{ ^~ ~ ". .'2002 Meeting REQUEST: I CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X MGR fJ-.-teEPT ~ A lIthori7Rtion The Finance Department is requesting the City Commission grant the City Manager approval to enter into an agreement with MBIA MuniServices Company (MMC) for Revenue Enhancement Services Pertaining to the City's Property Tax Revenue, PURPOSE: To gain Commission approval to contract with MBIA MuniServices Company (MMC) to perform a property tax review, CONSIDERATIONS: >- Objective - To realize all of the tax revenue to which the City is entitled to from the taxable valuations within its jurisdiction, >- Scope of Service -: . Establish an inventory of every parcel located within the City boundaries . Comparative analysis of the database with the County's database . Examine records pertaining to locational coding of properties to ensure that locations are not miscoded to another jurisdiction . Examine records pertaining to homestead exemptions to identify any improperly claimed . Examine records pertaining to taxable valuations to identify and confirm any errors/omissions ~ -1.------- \ ~IJ l J- {..{r(JW\ o1lUlo~ . · For each error/omission/miscoding identified and confirmed, prepare documentation to substantiate and facilitate recovery due from prior periods and prevent recurring deficiencies in current and future years · Prepare and forward to the County Property Appraiser and County Tax Collector requests for corrective action of the errors · Meet with staff to review and discuss findings and recommendations ~ Compensation - MMC will receive 35% of the additional tax revenue realized by the City as a result of MMC detecting and documenting the error(s)/omission(s) causing the property tax deficiencies. The 35% will apply to the additional revenue realized by the City during the first 3 years following the correction. MMC will also pursue recovery of revenue for eligible prior periods, if any. For retroactive adjustments MMC's 35% shall apply to the amount of the adjustment. ~ Term - The initial term of this agreement shall be for 3 years from the date of execution. ~ Timing and Reporting - MMC is prepared to commence the property tax service within 10 working days following authorization. Annually, MMC will provide to the City a report summarizing discovery service progress to date. MMC will provide the initial set of property tax discovery service reports within 90 to 180 working days following authorization. FUNDING: . No up-front funding necessary. The property tax recovery program is contingent fee based. MMC will receive 35% of the additional tax revenue realized by the City as a result of MMC detecting and documenting the error(s)/omission(s) causing the property tax deficiencies. The 35% will apply to the additional revenue realized by the City during the first 3 years following the correction. MMC will also pursue recovery of revenue for eligible prior periods, if any. For retroactive adjustments MMC's 35% shall apply to the amount of the adjustment. IMPLEMENTATION: MMC is prepared to commence the property tax service within 10 working days following authorization. Annually, MMC will provide to the City a report summarizing discovery service progress to date. MMC will provide the initial set of property tax discovery service reports within 90 to 180 working days following authorization. RECOMMENDATION: . The Finance Department recommends that the City Commission grant approval to the City Manager to execute the agreement for property tax revenue enhancement services with MMC. . ATTACHMENTS: · Draft agreement to provide Revenue Enhancement Services · Company/Service Information COMMISSION ACTION: . . . DRAFT June 5, 2002 AGREEMENT TO PROVIDE REVENUE ENHANCEMENT SERVICES, FOR THE CITY OF WINTER SPRINGS FLORIDA . , , 2002 June By MBIA MuniServices Company MBIA MBIA MuniServices Company . MBIA MuniServices Co. Page 1 of 18 . . . TABLE OF CONTENTS CONSULTANT SERVICES AGREEMENT EXHIBIT A PROPERTY TAX DISCOVERY SERVICE MBIA MuniServices Co. Page 2 of 18 DRAFT June 5, 2002 . DRAFT June 5, 2002 CONSULTANT SERVICES AGREEMENT THIS AGREEMENT IS made at Winter Springs, Florida, on 2002 by and between the City of Winter Springs a municipal corporation (hereafter referred to as "City") and MBIA MuniServices Company (hereafter referred to as "Consultant" or "MMC"), who agree as follows: 1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit "A", (the Exhibit). Consultant shall provide said services at the time, place, and in the manner specified in the Exhibits. Consultant shall not be compensated for services outside the scope of the Exhibits, . 2. Payment. City shall pay Consultant for services rendered pursuant to this Agreement at the times and in the manner set forth in the Exhibits. The payments specified in the Exhibits shall be the only payments to be made to Consultant for services rendered pursuant to this Agreement unless the City approves additional compensation for additional service. Consultant shall submit all billings for services rendered pursuant to this Agreement to City in the manner specified in the Exhibits. 3. Facilities and Equipment. Consultant shall, at its sole cost and expense, furnish all facilities and equipment that may be required for furnishing services pursuant to this Agreement. 4. Extra Services. City shall pay Consultant for those City authorized extra . services, not reasonably included within the services described in Exhibits "A", such MBIA MuniServices Co. Page 3 of 18 . DRAFT June 5, 2002 amounts as mutually agreed to in advance. Unless the City and Consultant have agreed in writing before the performance of extra services, no liability and no right to claim compensation for such extra services or expenses shall exist. 5. Assignment. This Agreement may be assigned by Consultant provided the City has consented in writing to any assignment. 6. Term. The initial term of this Agreement shall be for 3 years from the date of execution. After the initial term, this Agreement shall remain in force until terminated by either party in accordance with Section 23 below. 7. Hold Harmless. MMC shall indemnify and hold harmless City, its officers, agents and employees, from and against any and all claims, demands, actions, . suits and proceedings by others against all liability arising out of negligent acts of MMC, its employees and agents in the performance of this Agreement. In turn, the City shall defend, indemnify and hold harmless MMC, its officers, agents and employees, from any and all claims, demands, actions, suits and proceedings by others, resulting from erroneous information provided to MMC by City and upon which MMC can reasonably be expected to rely. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 10. Severability. If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, then both parties shall be relieved of all obligations . MBIA MuniServices Co. Page 4 of 18 . DRAFT June 5, 2002 under that provision. The remainder of the Agreement shall be enforced to the fullest extent permitted by law. 11. Waivers. All conditions, covenants, duties and obligations contained in this Agreement can be waived only by written agreement executed by all parties. Forbearance or indulgence in any form or manner by a party shall not be construed as a waiver nor in any way limit the legal or equitable remedies available to that party. No waiver by either party of any default or breach shall constitute a waiver of any subsequent default or breach. 12. Arbitration. All Claims, demands, disputes, controversies, differences, or misunderstandings between the parties arising out of, or by virtue of, this Contract . shall be submitted to and determined by arbitration in accordance with the Rules of the American Arbitration Association for commercial arbitration, such arbitration to be held in Florida. The arbitrator's decision shall be final, binding and conclusive on all parties: it will not be appealable and shall include a finding for payments of the costs of such arbitration, not including fees and expense of counsel and witnesses. Judgment of a court of competent jurisdiction may be entered upon the award and may be enforced as such in accordance with the provisions of the award. This agreement to arbitrate is specifically enforceable by the parties to this Contract. Nothing within this paragraph shall prevent any party from resorting to judicial proceedings if interim injunctive or other equitable relief is necessary to prevent and irreparable injury to a party. 13. Independent Contractor. At all times during the term of this Contract, . MBIA MuniServices Company (Consultant) shall be an Independent Contractor and MBIA MuniServices Co. Page 5 of 18 . DRAFT June 5, 2002 shall not be an employee of the City of Winter Springs, Florida (City). City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. 14. Subcontracts. Any subcontracts entered into by Consultant for services to be rendered towards the completion of Consultant's portion of this Agreement shall be for Consultant's benefit alone, and as such shall be its responsibility with no liability resting on the City. Consultant agrees to provide a list of all subcontractors to be used in connection with services to be rendered toward the completion of its portion of this Agreement to the City within ten (10) working days of execution of this Agreement. . 15. Licenses. Permits. Etc. Consultant represents and warrants to City that they have all licenses, permits, qualifications and approvals of whatsoever nature, which are legally required for Consultant to practice his profession. Consultant represents and warrants to City that Consultant shall, at his sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice his profession. 16. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or . MBIA MuniServices Co. Page 6 of 18 . DRAFT June 5, 2002 delayed by any cause, present or future, which is beyond the reasonable control of the party. 17. Insurance. a. Public Liability. During the term of this Agreement, Consultant shall maintain in full force and effect a policy of public liability insurance with minimum coverage's as follows: $1,000,000 for injury to one person in anyone occurrence; $1,000,000 aggregate; and, $50,000.00 for property damage. Consultant shall cause the City, its officials and employees to be named on all liability policies described above as insured as respects: (l) activities performed for the City by or on behalf of the named insured, (2) products and completed operations of the Named Insured, and (3) premises owned, leased or used by the Named Insured. . b. Worker's Compensation. During the term of this Agreement, Consultant shall fully comply with the terms of the law of Florida concerning worker's compensation. Said compliance shall include, but not be limited to, maintaining in full force and effect one or more policies of insurance insuring against any liability Consultant may have for worker's compensation. 18. Consultant Not Agent. Except as the City may specify in writing, Consultant shall have no authority, express or implied to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 19. Personnel. Consultant shall aSSIgn only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, Consultant shall remove any such person immediately upon receiving notice from City of the desire of City for the removal of such person or persons. . MBIA MuniServices Co. Page 7 of 18 . DRAFT June 5, 2002 20. Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices his/her profession. All products of whatsoever nature, which Consultant delivers to City pursuant to this Agreement, shall be prepared in a substantial and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Consultant's profession. 21. Reports, Charts or Other Products. All reports, charts and other products resulting from the performance of this agreement are the property of the City. . 22. City Representative. The City Manager or his/her designee is the representative of the City and will administer this Agreement for the City. 23. Termination. This Agreement may terminate on thirty (30) days written notice by either party, or within such time as both parties may find necessary to conclude the work in progress and to summarize Consultant's findings. Termination shall not affect the payment of any compensation due MMC. In the event of termination under this Section, City shall pay Consultant for services performed up to the effective date of termination for which Consultant has not been previously paid. Because the services performed by Consultant prior to termination may result in City's receipt of revenue after termination and because this receipt of revenue entitles Consultant to payment from the City even after termination, City agrees to provide to . Consultant after termination of this Agreement such information as is necessary to MBIA MuniServices Co. Page 8 of 18 . DRAFT June 5, 2002 enable Consultant to calculate the compensation due to Consultant as a result of this receipt of revenue by the City. The Consultant shall maintain the confidentiality of this information. 24. Whole and Entire Agreement. This instrument contains the whole and entire agreement of the parties hereto and correctly sets forth the rights, duties and obligations of each to the others as of its date. Any prior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force and effect. 25. Equal Employment Opportunity. During the performance of this Agreement, Consultant, for itself, its assignees and successors in interest, agrees as . follows: a. Compliance With Regulations: Consultant shall comply with the Executive Order 11246 entitled "Equal Employment Opportunity": as labor regulations (41 C.F .R. Part 60), hereinafter referred to as the "Regulations. " b. Nondiscrimination: Consultant, with regard to the work performed by it after award and prior to completion of the work pursuant to this Agreement, shall not discriminate on the ground of race, color, religion, sex or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. . MBIA MuniServices Co. Page 9 of 18 . DRAFT June 5, 2002 Solicitation for Subcontractor. Including Procurements of c. Materials and Equipment: In all solicitations either by competitive bidding or negotiations made by Consultant for work to be performed under any subcontract, including procurements of materials or equipment, such potential subcontractor or supplier shall be notified by Consultant of Consultant's obligation under this Agreement and the Regulations relative to nondiscrimination on the ground of race, color, religion, sex or national ongms. d. Information and Reports: Consultant shall provide all information and reports required by the Regulations, or orders and instructions issued pursuant thereto, and will permit access to its books, records, accounts, . other sources of information and its facilities as may be determined by the City to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of Consultant is in the exclusive possession of another who fails or refuses to furnish this information, Consultant shall so certify to the City and shall set forth what efforts it has made to obtain the information. e. Sanctions for Noncompliance: In the event of noncompliance by Consultant with the nondiscrimination provisions of this Agreement, the City shall impose such contract sanctions as it may determine to be appropriate, including, but not limited to: . MBIA MuniServices Co. Page 10 of 18 . DRAFT June 5, 2002 Withholding of payments to Consultant under the contract (1) until Consultant complies; (2) Cancellation, termination, or suspension of the Agreement, in whole or in part. f. Incorporation of Provisions: Consultant shall include the provisions of paragraphs "a" through "e" in every subcontract, including Regulations, order, or instructions issued pursuant thereto. Consultant shall take such action with respect to any Regulations, order or instructions issued pursuant thereto. Consultant shall take such action with respect to any subcontract or procurement as the City may direct as a . means of enforcing such proVISIOns including sanctions for noncompliance. In the event the Consultant becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the Consultant may request City to enter such litigation to protect the interests of the City. 26. Confidentiality. Consultant agrees that it shall keep all information it receives concerning City taxpayers confidential and that it shall not use this information for any purpose other than as expressly provided in this Agreement or otherwise expressly consented to by City. . MBIA MuniServices Co. Page 11 of 18 . DRAFT June 5, 2002 27. Notices. Any notice to be given from one party to the other pursuant to this Agreement shall be deposited with the United States Postal Service postage prepaid and addressed as follows: To City: To Consultant: Monica Keller Contract Manager MBIA MuniServices Company The Curtis Center Independence Square West Suite 507 Philadelphia, P A 19106 Nothing in this Paragraph shall be construed to prevent the giving of notice by personal . servIce. 28. Exhibits. All Exhibits referred to herein are attached hereto and are by this reference incorporated herein. 29. Counterparts. This Agreement shall be signed by the parties in two (2) original counterparts, both of which shall constitute but one (1) Agreement. EXECUTED as of the day and year first above stated. CITY OF WINTER SPRINGS, A Municipal Corporation By: Title: . MBIA MuniServices Co. Page 12 of 18 . DRAFT June 5, 2002 Date: ATTEST: CITY CLERK ATTEST TO FORM: CITY ATTORNEY MBIA MuniServices Company/MMC By: Marc Herman Title: Chief Operating Officer . Date: MBIA MuniServices Company/MMC By: Kevin Cerutti Title: Chief Financial Officer Date: . MBIA MuniServices Co. Page 13 of 18 . DRAFT June 5, 2002 EXHIBIT A PROPERTY TAX DISCOVERY SERVICES MBIA MuniServices Company (MMC) proposes to provide to the City of Winter Springs, Florida (City) property tax discovery services. The background, objectives, scope of services, timing and compensation are set forth as follows: BACKGROUND AND OBJECTIVES It is common for cities to be deprived of property tax revenue to which they are entitled. This is largely due to administrative and procedural errors and omissions related to the assessment and assignment and/or coding of properties within City boundaries. Administrative and procedural errors and omissions are virtually assured given the non- standard, complex nature of state and locally assessed property taxes with regard to . applicability, millage rates, exceptions, exemptions, and procedural inconsistencies. Human fallibility, fragmented responsibilities, reduced staffing and staffs turnover further compound the problem. Because there are time limitations on the City's ability to recover tax revenue that has been understated or incorrectly allocated, it is incumbent upon the City to detect these property tax deficiencies as quickly as possible, before they become unrecoverable. The objective ofMMC's property tax discovery services is to assist the City in realizing all of the tax revenue to which it is entitled from the taxable valuations within its jurisdiction. MMC's property tax discovery services result in the detection and documentation of errors and omissions causing deficiencies and thereby recover tax revenue that would not otherwise have been realized by the City. . MBIA MuniServices Co. Page 14 of 18 . . . DRAFT June 5, 2002 PROPERTY TAX DISCOVERY PROCEDURES The scope of services includes, but is not limited to, MMC providing the services summarized as follows: o Meet with designated City staff to review discovery service objectives and scope, procedures, county/public agency relations and logistical matters; we will also establish an appropriate liaison with City management and staff and logical checkpoints for measuring progress; o Establish a comprehensive, valid inventory of every parcel located within City boundaries and the database elements needed to facilitate a comparative analysis with the County's local real and personal taxable values; o Represent the City for the purpose of examining records pertaining to locational coding of properties to identify properties that are within the City but are miscoded to another jurisdiction resulting in reduced revenue to the City. o Represent the City for the purpose of examining records pertaining to homestead exemptions, and utilizing MMC databases and others available to MMC to identify improperly claimed homestead exemptions that are resulting in non-payment and/or deficient payment of property tax to the City. o Represent the City for the purpose of examining records pertaining to taxable valuations to identify and confirm errors/omissions that are resulting in non- payment and/or deficient payment of property tax to the City. o For each error/omission/miscoding identified and confirmed, prepare documentation to substantiate and facilitate recovery of tax revenue due from prior periods (plus applicable interest and penalties, where appropriate) and prevent recurring deficiencies in current and future years; o Prepare and forward to the County Property Appraiser and County Tax Collector requests for corrective action of the noted errors; MBIA MuniServices Co. Page 15 of 18 . . . DRAFT June 5, 2002 o Meet with designated City staff to review and discuss our discovery service findings and recommendations; and o Provide additional assistance as necessary to support City in recovering and preventing future revenue deficiencies. TIMING AND REPORTING MMC is prepared to commence the property tax service within 10 working days following authorization. Annually, MMC shall provide the City with a report summarizing discovery service progress to date. MMC will undertake the property tax discovery effort by service segment, in the following order: discovery of miscoded properties, discovery of improper homestead exemptions, and discovery of unreported personal property tax. If the results ofMMC's effort indicates that MMC's performance-based fee for providing any segment of the service is not likely to exceed the cost of providing it, MMC may cease providing that segment ofthe service. In any case, such cessation of any segment of the service may only occur after MMC has notified the City of the reasons for cessation and shall not affect MMC's provision of any of the other service segments. MMC shall deliver the initial set of the property tax discovery service reports within 90 to 180 working days following authorization and receipt of data necessary to conduct the work. The City and MMC will mutually agree on the frequency and type of periodically updated property tax discovery service reports to be provided thereafter. MBIA MuniServices Co. Page 16 of 18 . DRAFT June 5, 2002 DATA AND FILE RETENTION All data reports and other documentation (other than MMC's drafts, notes and internal memorandum) shall become the property of the City upon termination of this Agreement and upon payment in full of all compensation due MMC. Upon termination of this Agreement and at the request of the City, MMC shall deliver all, or the designated portions of such, to the Client within 90 days of such request. Absent such a request from the City after 90 days, MMC shall have the authority to archive and or destroy such information. MMC does not warehouse data (magnetic media on computer disk drives) and will not retain data used to perform the contracted services, except for data that is available through "Public Domain." All magnetic media will be returned to the City immediately after it has been processed by MMC. All Data that has been derived from "Public Domain" data is the property ofMMC. COMPENSATION . MMC's compensation for providing the property tax discovery service is 35% of the additional tax revenue realized by the City as a result of MMC detecting and documenting the error(s)/omission(s) causing the property tax deficiencies. Said 35% apply to the additional revenue realized by the City during the first 3 years following correction. MMC will also pursue recovery of revenue for eligible prior periods, if any. For retroactive adjustments MMC's 35% shall apply to the amount of the adjustment. Under this arrangement, the City agrees to notify MMC within 10 days following receipt by the City of payments resulting from MMC's discovery service. Upon the City's receipt of payment, MMC will then invoice the City for its fee. Earned compensation is due and payable upon receipt of invoice. City agrees that it will pay all MMC invoices within thirty (30) days of receiving the invoice. IfCity does not make payment within thirty (30) days of receiving MMC's invoice and does not dispute the billing in writing, MMC has the discretion to collect one . percent (1 %) interest per month for each month the invoice remains unpaid. MBIA MuniServices Co. Page 17 of 18 . . . DRAFT June 5, 2002 If said property tax deficiencies are detected and documented during the term of this Agreement, but not collected by the City until after this Agreement has expired, City shall nevertheless pay Consultant its fee, including interest and penalties, upon receipt of the revenue. All expenses incurred by MMC in providing the property tax discovery service are absorbed by MMC. These expenses include items such as salaries and benefits, insurance, airfare, auto rentals, meals, lodging, keypunching, computer processing, clerical, communications (e.g. meetings, telephone, mail, etc.) photocopying, overhead and miscellaneous out-of-pockets for consumable supplies and research materials etc. MBIA MuniServices Co. Page 18 of 18 Municipal revenue officers are constantly seeking innovative strategies to improve the ,. efficiency and yield of their revenue streams. Their challenge is complicated by sudden and burdensome shifts in state and federal mandates, by entrenched resistance to tax hikes, and by flat or declining state and federal funding. Additional challenges include pre-exemptions of taxing authority over the growing e-commerce sector. 1- --------.. ..- .--- ~ -- --- - --- --- -- -- - - ENHANCING MUNICIPAL REVENUE STREAMS .- - MBLA MuniServices Company (MMC) focuses its extensive professional tax experience and data mining capabilities on enhancing your revenue streams withill the parameters of your existing tax structure. As municipal revenue enhancement specialists who work exclusively in the public sector, MMC helps local government finance professionals fulfill the expanding service demands of their constituents even in the face of flat or low-growth revenue performance. - - - -- --- -- --- - -- -- ~ -"'IIIiil MMC's proven revenue enhancement techniques identifY and then recover government revenues that are either unknown to the jurisdiction, misallocated or deemed otherwise uncollectable. These techniques and compliance.programs have been tested in juris- dictions across the country Jnd across many different tax types and revcnue structures. MMC's skill at integrating its people and services with your existing compliance programs minimizes the disruptions and oversight responsibilities rhat can complicate vendor relationships where revenue marrers are involved. A case in point from the MMC client list is Washington, D.C. where MMC succcssfully steered a series of complex compliance initiatives that required the collaboration of several elements of the District's Office of Tax and Revenue. --=-- ...... - Using a broad range of services and products, from audit to GIS mapping to recovery operations, MMC has delivered results that consistently exceed our clients' expectations. [n 20 years of applying our revenue enhancement skills in the public sector, MMC's programs have raised $800 million for governments large and small. In Philadelphia alone, with the city on the verge of insolvency. MMC's discovery, audit and collections programs raised nearly $130 million from non-compliance wirh the city's wage, business privilege and net profits GLXes. This was one of the most successful recovery projects of its kind and a key to the city's nationally-lauded turnaround. MBlA MuniServices Company can help with the challenges of fiscal administration by providing the information tools needed to preserve and enhance your local revenue base. What MMC's Compliance Professionals Can Do For You: · Expand your communiry's tax base through discovery programs that identifY non-filers. · Restore revenue that was misallocated through administrative errors. · Re-build the revenue stream by accelerating the collections of known receivables. . Preserve the perception of fairness by assuring a 'level playing field.' · Maintain complete security in the use of confidential taxpayer data. DISCOVERY AND DETECTION SERVICES MMC's tax base expansion scrategy identifies unknown or unregistered taxpayers such as corporations, individuals, partnerships and trusts whose activity within your jurisdiction confirms an obligation to comply with your tax codes. Our retroactive reviews can yield major finds on their own, bur there is also the significant new revenue generated by restoring the taxable entity to the registry for future receipts. Our discovery programs also identifY under-reporting by registered taxpayers. In the case of complex corporate structures, our analysis can often confirm that these corporations are not paying the correct amount based on their true level of business activiry. MMC's discovery and detection programs can be tailored to focus on multiple ta." rypes including sales and use, income, property, uriliry, lodging, and business raxes. continucd .___ _ ':,.C:_L"........-...JL-I "" 1__- .-.>', '.~. .?.:.:.:-=~ .:._.!; _. "J. l: -----.--. . COLLECTION AND RECOVERY MMC offers a lUll range of collection and enforcement programs to help revenue departments recover known tax and fee liabilities. These collection programs can include dunning letters, skip-tracing, and direct response through our customer service centers that provide coast-to-coast coverage. HOMESTEAD AUDIT For local and state governments .trying ro promote residential stability and home ownership through tax set-aside programs, MMC's Homestead Audit Service can help restore the integrity of this registry by confirming the authenticity of the deduction. With today's transience, job shifts and 2nd-home ownership, homestead exemptions are ripe for abuse and can represent a significant drain on a jurisdiction's treasury. A narrow homestead audit program for Washington, D.C. netted $12 million in an I8-month period. REVENUE INFORMATION SERVICES MMC is unique ill its ability to offer revenue review, analysis and information services that encompass all general municipal tax sources. Our relational, Geo-based Revenue Information Program (GRIP) produces a detailed, geographically coded profile of the tax base 'and its variable revenue contributions; this allows revenue managers to relate their economic base to their tax structure. GRIP and other related products give the municipal revenue manager additional tools to develop and implement strategies that will preserve and expand revenue. PROPERTY TAX RECOVERY Assessments assigned to incorrect Tax Rate Areas can result in significant property tax revenue losses. MMC's property tax audit team develops a detailed parcel map using MMC's industry-standard geo-coding techniques. MMC's auditors then engage in a parcel-by-parcel review of secured and unsecured properties that produces audit recovery efficiencies of 98%. AUDIT SERVICES AND ALLOCATION REVIEWS MMC's Sales and Use tax allocation team has generated hundreds of millions of dollars for our California clients by uncovering enoneous allocations of the sales and use tax. MMC's audit and data-matching technicians authenticate the misallocations; our team of legal and tax specialists then advocate their findings on the jurisdiction's behalf before the appropriate state authorities. Our physical, on-site audit teams safeguard the integrity of the local tax code by bringing a jurisdiction's compliance efforrs to the ground level, applying the physical audit that confirms nexus, situs and business volumes that self-disclosure never fully reveals. Working in conjunction with the jurisdiction's legal counsel, MMC's physical audit unit then follows the cases of stubborn non- compliance through the legal and review cycle. What MMC's Review and Analytical Staff Can Do For You: . Conduct performance-based, self-funding tax reviews and analysis for every standard municipal tax source. · Facilitate revenue-related reporting to other government entities and associated reimbursement programs. . Provide consultative services that include forecasting, regulatory, legislative and policy updates and project analysis. MBIA Inc. is the world's foremost financial guarantor and a leading provider of specialized financial services, Our cost-effective products and services help public- and private-sector clients worldwide meet their credit enhancement, financial and investment needs, MBIA Insurance Corporation has a financial strength rating of Triple-A by Moody's, Standard & Poor's, Fitch. and Rating & Investment Information Service, Contact: MBIA MuniServices The Curtis Center Independence Square West Suite 507 Philadelphia, PA 19106-3323 215.574.8533 www.munisolutions.com - - ~..; .oil = HE ~.~ji ;i"ojijoj Ii i h.:Jil !~l !hllJ! !11J !, ""-~HfJ rw~ (,1.. ~ ~ r~ ... ... ...____.r____-__-.........-_ ......-:...___-..&..-.........-.......--.... ___... _-___ __ ...~...-.&~ ~~Is my City receiving aU of its property tax revenue?~~ ~'Are out-of-state residents impropero/ claiming homeowner exemptions in our City?n ~'Are non-resident vacation-home owners claiming an exemption in our City?~~ ~'Are some individual property owners claiming multiple homeowner exemptions in our City?~~ ~'Are we receiving our share of revenue from aU property taxes paid by property owners in our City?~~ UIs there business equip- ment or machinery in our City on which the property tax is not being reportedr~ Often jurisdictions do not reccive all of thc revenue to which they are entitled from various revenue sources. Taxpaycr crrors frequently result in cities being deprived of property tax revenue for any of several reasons (e.g. improper homeowner exemptions). MBIA MuniServices Company's (MMC) property tax revenue enhancement services can help identifY and correct improperly claimed homeowner exemptions in your City, including: · Out-of-state property owncrs claiming exemptions · Vacation home owners claiming exemptions · Multiple homeowners exemption claims by an individual · Owners failing to discontinue exemption upon movll1g Through the correction of tllese improper exemption claims, MMC produces revenue the City is entitled to but may not be receiving. Taxpayer and administrative errors cause revenue due a City to be diverted. MMC's proprietary systems and procedures identifY economic activity in a community leading to the detection and correction of taxpayer and administrative errors, thereby securing revenue for tlle City. MMC electronically identifies economic activity within tile City. Utilizing the discovered economic activity, and applying MMC's proprietary processes, businesses that should be reporting taxable personal property (e.g. equipment and machinery) are determined. MMC tllen detects non-reporting businesses and assists in tile filing of tile appropriate taxes. MMC.s REVENUE ENHANCEMENT SERVICES The Problem Thousands of property tax assessments including both real (secured) and personal (unsecured) are required annually. Taxpayer reporting errors and omissions, combined with general compli- ance problems, are inevitable given the non-standard, complex nature of local property taxes. Error rates rise as variables increase for property tax applicability, rates, exceptions, quirks and other inconsistencies. Human fallibility, multiple and sometimes fragmented responsibilities, coupled with the reality of employee turnover further compound the problem. Outdated and/or invalid homeowner exemptions can also deny your City of revenues that it should receive. The resulting loss of revenue from these inappropriate exemptions, coupled with the problems cited above, places an increased tax burden on homeowners who are prop- erly reporting and paying their taxes, or erodes the level of service your City can provide. Our Experience MMC has been successful in conducting property tax related revenue enhancement efforts for over 20 years. The .combined work of our property tax deficiency and allocation experts have helped identify millions of dollars in ad valorem revenues that jurisdictions were entitled to but. would not have received without MMC's efforts. We Can Help You ~1MC has revenue enhancement systems, processes, and extensive experience working with government professionals. We can help ensure that your City receives the property taxes to which it is entitled. BENEFITS OF UTILIZING MMC's REVENUE ENHANCEMENT SERVICES A Proven Track Record MMC's services have produced hundreds of millions of dollars for MMC's clients in California, Florida, Ge.orgia, Illinois, Michigan, New Jersey, Pennsylvania and the District of Columbia. Multi-Revenue Expertise MMC is staffed by proven tax and technology specialists with unparalleled expertise, experience and revenue results in virutally all tax source types, including: property tax, occupational license tax, utility taxes/franchise fees, tourist development tax, and income tax. Self-Funding In most instances, MMC's services are self-funding, that is, our compensation is entirely depen- dent upon our performance and is derived from the new revenue produced by our services for our clients. Non-Selective Methodologies MMC's methodologies are non-selective to ensure equal treatment for all entities and avoid issues raised by selective methodologies. Fairness, Equity and Fiscal Self-Reliance MMC's services treat all taxpayers equally and assist our clients in balancing tl1eir budgets with- out having to raise ta;xes and/or reduce services. For furthel' information, please contact: MBIA MBIA MuniServices Company Dan O'Keefe 1810 Aloma Avenue, Suite 120 Winter Park, FL 32189 (401) 599-1055 mmc. florida@munisolutions.com MBIA MuniServices Company \ L AGREEMENT TO PROVInE REVENUE ENHANCEMENT SERVICES, FOR THE CITY OF WINTER SPRINGS FLORIDA A,-".' ,.) ,,-+ ~ <0, 2002 -:) -- By MBIA MuniScrvices Company MBIA MuniServices Company MBIA MuniServices Co. Page 1 of 18 ~ ' TABLE OF CO.NTENTS CONSULTANT SERVICES AGREEMENT EXHIBIT A PROPERTY TAX DISCOVERY SERVICE MBIA MuniServices Co. Page 2 of 18 CONSULTANT SERVICES AGREEMENT THIS AGREEMENT IS made at Winter Springs, Florida, on A,-",)....i') + d(,., 2002 by and between the City of Winter Springs a municipal corporation (hereafter referred to as "City") and MSIA MuniServices Company (hereafter referred to as "Consultant" or "MMC"), who agree as follows: I. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit "A", (the Exhibit). Consultant shall provide said services at the time, place, and in the manner specified in the Exhibits. Consultant shall not be compensated for services outside the scope of the Exhibits. 2. Payment. City shall pay Consultant for services rendered pursuant to this Agreement at the times and in the manner set forth in the Exhibits. The payments specified in the Exhibits shall be the only payments to be made to Consultant for services rendered pursuant to this Agreement unless the City approves additional compensation for additional service. Consultant shall submit all billings for services rendered pursuant to this Agreement to City in the manner specified in the Exhibits. . 3. Facilities and Equipment. Consultant shall, at its sole cost and expense, furnish all facilities and equipment that may be required for furnishing services pursuant to this Agreement. 4, Extra Services. City shall pay Consultant for those City authorized extra services, not reasonably included within the services described in Exhibits "A", such MBIA MuniServices Co. Page 3 of 18 amounts as mutually agreed to in advance. Unless the City and Consultant have agreed in writing before the performance of extra services, no liability and no right to claim compensation for such extra services or expenses shall exist. 5. Assignment. This Agreement may be assigned by Consultant provided the City has consented in writing to any assignment. 6. Term. The ini tial term of this Agreement shall be for 3 years from the date of execution. After the initial term, this Agreement shall remain in force until terminated by either party in accordance with Section 23 below. 7. Hold Harmless. MMC shall indemnify and hold harmless City, its officers, agents and employees, from and against any and all claims, demands, actions, suits and proceedings by others against all liability arising out of negligent acts of MMC, its employees and agents in the performance of this Agreement. In turn, the City shall defend, indemnify and hold harmless MMC, its officers, agents and employees, from any and all claims, demands, actions, suits and proceedings by others, resulting from erroneous information provided to MMC by City and upon which MMC can reasonably be expected to rely. 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 10. Severability. If any provision of this Agreement is declared or found to be illegal, unenforceable, or void, then both pm1ies shall be relieved of all obligations MBlA MuniServices Co. Page 4 of 18 under that provision. The rcmainder of the A~reemcnt shall be enforced to the tullest extent pennitted by law. II. Waivers. All conditions, covcnants, duties and obligations contained in this Agreement can be waived only by written agreement executed by all parties. Forbearance or indulgence in any fonn or manner by a party shall not be construed as a waiver nor in any way limit the legal or equitable remedies available to that party. No waiver by either party of any default or breach shall constitute a waiver of any subsequent default or breach. 12. Arbitration. All Claims, demands, disputes, controversies, differences, or misunderstandings between the parties arising out of, or by virtue of, this Contract shall be submitted to and detennined by arbitration in accordance with the Rules of the American Arbitration Association for commercial arbitration, such arbitration to be held in Florida. The arbitrator's decision shall be final, binding and conclusive on all parties: it will not be appealable and shall include a finding for payments of the costs of such arbitration, not including fees and expense of counsel and witnesses. Judgment of a court of competent jurisdiction may be entered upon the award and may be enforced as such in accordance with the provisions of the award. This agreement to arbitrate is specifically enforceable by the parties to this Contract. Nothing within this paragraph shall prevent any party from resorting to judicial proceedings if interim injunctive or other equitable relief is necessary to prevent and irrcparable injury to a party. 13. Independent Contractor. At all timcs during the teml of this Contract, MBIA MuniServices Company (Consultant) shall be an Indepcndcnt Contractor and MBIA MuniServices Co. Page 5 of 18 shalll10t be an employee of the City of Winter- Springs, Florida (City). City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement; however, City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. 14. Subcontracts. Any subcontracts entered into by Consultant for services to be rendered towards the completion of Consultant's portion of this Agreement shall be for Consultant's benefit alone, and as such shall be its responsibility with no liability resting on the City. Consultant agrees to provide a list of all subcontractors to be used in connection with services to be rendered toward the completion of its portion of this Agreement to the City within ten (l0) working days of execution of this Agreement. 15. Licenses, Permits, Etc. Consultant represents and warrants to City that they have all licenses, permits, qualifications and approvals of whatsoever nature, which are legally required for Consultant to practice his profession. Consultant represents and warrants to City that Consultant shall, at his sole cost and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice his profession. 16. Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary for satisfactory performance of Consultant's obligations pursuant to this Agreement. Neither party shall be considered in default of this Agreement to the extent performance is prevented or MBIA MuniServices Co. Page 6 of 18 dela)'ed by any cause, present or future, which is beyond the reasonable control of the party. 17. Insurance. a. Public Liability. During the term of this Agreement, Consultant shall maintain in full force and effect a policy of public liability insurance with minimum coverage's as follows: $1,000,000 for injury to one person in anyone occurrence; $1,000,000 aggregate; and, $50,000.00 for property damage. Consultant shall cause the City, its officials and employees to be named on all liability policies described above as insured as respects: (1) activities performed for the City by or on behalf of the named insured, (2) products and completed operations of the Named Insured, and (3) premises owned, leased or used by the Named Insured. b. Worker's Compensation. During the term of this Agreement,. Consultant shall fully comply with the terms of the law of Florida concerning worker's compensation. Said compliance shall include, but not be limited to, maintaining in full force and effect one or more policies of insurance insuring against any liability Consultant may have for worker's compensation. 18. Consultant Not Agent. Except as the City may specify in writing, Consultant shall have no authority, express or implied to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. 19. Personnel. Consultant shall aSSIgn only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by Consultant to perform services pursuant to this Agreement, Consultant shall remove any such person immediately upon receiving notice from City of the desire of City for the removal of such person or persons. MBIA MuniServices Co. Page 7 of 18 20. Standard of Performance. . Consultant shall perform all servIces required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices his/her profession. All products of whatsoever nature, which Consultant delivers to City pursuant to this Agreement, shall be prepared in a substantial and workmanlike manner and conform to the standards of quality normally observed by a person practicing in Consultant's profession. 21. Reports. Charts or Other Products. All reports, charts and other products resulting from the performance of this agreement are the property of the City. 22. City Representative. The City Manager or his/her designee IS the representative of the City and will administer this Agreement for the City. 23. Termination. This Agreement may terminate on thirty (30) days written notice by either party, or within such time as both parties may find necessary to conclude the work in progress and to summarize Consultant's findings. Termination shall not affect the payment of any compensation due MMC. In the event of termination under this Section, City shall pay Consultant for services performed up to the effective date of termination for which Consultant has not been previously paid. Because the services performed by Consultant prior to termination may result in City's receipt of revenue after termination and because this receipt of revenue entitles Consultant to payment from the City even after termination, City agrees to provide to Consultant after termination of this Agreement such infOlmation as is necessary to MBIA MuniServices Co. Page 8 of 18 enabre Consultant to calculate the compensathm due to Consultant as a result of this receipt of revenue by the City. The Consultant shall maintain the confidentiality of this information. 24. Whole and Entire Agreement. This instrument contains the whole and entire agreement of the parties hereto and correctly sets forth the rights, duties and obligations of each to the others as of its date. Any prior agreements, promises, negotiations or representations not expressly set forth in this Agreement are of no force and effect. 25. Equal Employment Opportunity. During the performance of this Agreement, Consultant, for itself, its assignees and successors in interest, agrees as follows: a. Compliance With Regulations: Consultant shall comply with the Executive Order 11246 entitled "Equal Employment Opportunity": as labor regulations (41 C.F.R. Part 60), hereinafter referred to as the "Regulations." b. Nondiscrimination: Consultant, with regard to the work performed by it after award and prior to completion of the work pursuant to this Agreement, shall not discriminate on the ground of race, color, religion, sex or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. MBIA MuniServices Co. Page 9 of 18 c. Solicitation for Subcontractor, Includin~ Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiations made by Consultant for work to be perfonned under any subcontract, including procurements of materials or equipment, such potential subcontractor or supplier shall be noti tied by Consultant of Consultant's obligation under this Agreement and the Regulations relative to nondiscrimination on the ground of race, color, religion, sex or national ongms. d. Information and Reports: Consultant shall provide all information and reports required by the Regulations, or orders and instructions issued pursuant thereto, and will permit access to its books, records, accounts, other sources of information and its facilities as may be determined by the City to be pertinent to ascertain compliance with such Regulations, orders and instructions. Where any information required of Consultant is in the exclusive possession of another who fails or refuses to furnish this information, Consultant shall so certify to the City and shall set forth what efforts it has made to obtain the information. e. Sanctions for Noncompliance: In the event of noncompliance by Consultant with the nondiscrimination provisions of this Agreement, the City shall impose such contract sanctions as it may determine to be appropriate, including, but not limited to: MBIA MuniServices Co. Page 10 of 18 (I) Withholding of payments to Consultant under the contract until Consultant complies; (2) Cancellation, temlination, or suspension of the Agreement, in whole or in part. f. Incorporation of Provisions: Consultant shall include the provisions of paragraphs "a" through "e" in every subcontract, including Regulations, order, or instructions issued pursuant thereto. Consultant shall take such action with respect to any Regulations, order or instructions issued pursuant thereto. Consultant shall take such action with respect to any subcontract or procurement as the City may direct as a means of enforcing such provIsIOns including sanctions for noncompliance. In the event the Consultant becomes involved in, or is threatened with, litigation with a subcontractor or supplier as a result of such direction, the Consultant may request City to enter such litigation to protect the interests of the City. 26. Confidentiality. Consultant agrees that it shall keep all information it receives conceming City taxpayers confidential and that it shall not use this information for any purpose other than as expressly provided in this Agreement or otherwise expressly consented to by City. MBIA MuniServices Co. Page 11 of 18 Any notice to be given from one party to the other pursuant 27. Notices. to this Agreement shall be deposited with the United States Postal Service postage prepaid and addressed as follows: To City: ..::-, .l, . / _:>.c. ~,........+<:....F" ~ f' ,,,", 5 .5 \, rl--. L t=: "" <,.\- ::, -\ c--. -k..- A=-,,,,, < \ '-* -3 ~ .-.- .J ~ f o.? L....).,r'\.+<=.r "'-,.0 ,', --S ) \- '-- .. " ..J _' A .4'". '-- CJ J\. ) Q ~ r ~~......__ \ \-. ~( <' . . _ .J O,~.,. ..._,~., To Consultant:'Meb~r /Ve; I Ae f(p I'/nd -G0flt-ra~t Mflflflgcr C c) 'i~ /'(~ 'le C (:) LI f? S e I MBIA MuniServices Company / ~lleCurti3Centl"T ?~5~ i--Y,5hQW ,1;"6 I-A~dence Squdle West F/e S 170" c..A- St1"lt-e-:SOL -- "/ "2/ I --p.fl-ifadclpAia, P A ] 91 or~ 9 ..) I Nothing in this Paragraph shall be construed to prevent the giving of notice by personal servIce. 28. Exhibits. AI! Exhibits referred to herein are attached hereto and are by this reference incorporated herein. 29. Counterparts. This Agreement shall be signed by the parties in two (2) original counterparts, both of which shall constitute but one (I) Agreement. EXECUTED as of the day and year first above stated. CITY OF WINTER SPRINGS, A Municipal Corporation /} ~ B y: -Li~~ 4!).ltft J. . A 4/~" Title: <:. " ..L..v '~..--sl>..C~ ,T ~ I -r-'- MBIA MuniServices Co. Page 12 of 18 Date: :jrf1~ 4:( ~:J- A TrEST: . '~hJeJ2ah lJSiLl~p A IJ..LL ~~~ CITY CLERK r - ~Mit~ CITY A TrORNEY MBIA MuniServices Company/MMC By: /'h/L- Marc Herman Title: Chief Operating Officer Date: MBIA MuniServ}ces Company/MMC ~' ~ By: -a - ~,.,:':"~~~ ?evin Cerutti Title: Chief Financial Officer Date: /t/:s/"OZ I . ./ ~/ ) /') / -,/ ,(1/ / MBIA MuniServices Co. Page 13 of 18 EX 1-1 I BIT A PROPERTY TAX DISCOVERY SERVICES MBIA MuniServices Company (MMC) proposes to provide to the City or Winter. Springs, Florida (City) property tax discovery services. The background, objectives, scope of services, timing and compensation are set forth as follows: BACKGROUND AND OBJECTIVES It is common for cities to be deprived of property tax revenue to which they are entitled. This is largely due to administrative and procedural errors and omissions related to the assessment and assignment and/or coding of properties within City boundaries. Administrative and procedural en-ors and omissions are virtually assured given the non- standard, complex nature of state and locally assessed property taxes with regard to applicability, millage rates, exceptions, exemptions, and procedural inconsistencies. Human fallibility, fragmented responsibilities, reduced staffing and staffs turnover further compound the problem. Because there are time limitations on the City's ability to recover tax revenue that has been understated or incorrectly allocated, it is incumbent upon the City to detect these property tax deficiencies as quickly as possible, before they become unrecoverable. The objective ofMMC's property tax discovery services is to assist the City in realizing all of the tax revenue to which it is entitled from the taxable valuations within its jurisdiction. MMC's property tax discovery services result in the detection and documentation of errors and omissions causing deficiencies and thereby recover tax revenue that would not otherwise have been realized by the City. MI3IA MuniServices Co. Page 14 of 18 PROPERTY TAX DISCOVERY PROCEDURES The scope of services includes, but is not limited to, ivlivlC providing the services summarized as follows: o Meet with designated City staff to review discovery service objectives and scope, procedures, county/public agency relations and logistical matters; we will also establish an appropriate liaison with City management and staff and logical checkpoints for measuring progress; o Establish a comprehensive, valid inventory of every parcel located within City I boundaries and the database elements needed to facilitate a comparative analysis with the County's local real and personal taxable values; o Represent the City for the purpose of examining records pertaining to locational coding of properties to identify properties that are within the City but are miscoded to another jurisdiction resuI"ting in reduced revenue to the City. o Represent the City for the purpose.of examining records pertaining to homeste<;ld exemptions, and utilizing MMC databases and others available to . MMC to identify improperly claimed homestead exemptions that are resulting in non-payment and/or deficient payment of property tax to the City. o Represent the City for the purpose of examining records pertaining to taxable valuations to identifY and confinn errors/omissions that are resulting in non- payment and/or deficient payment of property tax to the City. o For each error/omission/miscoding identified and confimled, prepare documentation to substantiate and facilitate recovery of tax revenue due from prior periods (plus applicable interest and penalties, where appropriate) and prevent recurring deficiencies in current and future years; o Prepare and forward to the County Property Appraiser and County Tax Collector requests for corrective action of the noted errors; MBlA MuniServices Co. Page 15 of 18 o M€et with designated City staff to review and discuss our discovery service findings and recommendations; and o Provide additional assistance as necessary to support City ill recovering and preventing future revenue deficiencies. TIMING AND REPORTING MMC is prepared to commence the property tax service within 10 working days following authorization. Annually, MMC shall provide the City with a report summarizing discovery service progress to date. MMC will undertake the property tax discovery effort by service segment, in the following order: discovery of miscoded properties, discovery of improper homestead exemptions, and discovery of unreported personal property tax. If the results ofMMC's effort indicates that MMC's performance-based fee for providing any segment of the service is not likely to exceed the cost of providing it, MMC may cease providing that segment of the service. In any case, such cessation of any segment of the service may only occur after MMC has notified the City of the reasons for cessation and shall not affect MMC's provision of any of the other service segments. MMC shall deliver the initial set of the property tax discovery service reports within 90 to 180 working days following authorization and receipt of data necessary to conduct the work. The City and MMC will mutually agree on the frequency and type of periodically updated property tax discovery service reports to be provided thereafter. MBIA MuniServices Co. Page 16 of 18 DA TA AND FILE RETENTION All data reports and other documentation (other than MMC's drafts, notes and internal memorandum) shall become the property ofthc City upon ternlination of this Agreement and upon payment in full of all compensation cluc MMC. Upon termination of this Agreement and at the request of the City, MMC shall deliver all, or the designated portions of such, to the Client within 90 days of such request. Absent such a request from the City after 90 days, MMC shall have the authority to archive and or destroy such information. MMC does not warehouse data (magnetic media on computer disk drives) and will not retain data used to perform the contracted services, except for data that is available through "Public Domain." All magnetic media will be returned to the City immediately after it has been processed by MMC. All Data that has been derived from "Public Domain" data is the property ofMMC. COMPENSATION MMC's compensation for providing the property tax discovery service is 35% of the additional tax revenue realized by the City as a result of MMC detecting and documenting the error(s)/omission(s) causing the property tax deficiencies. Said 35% apply to the additional revenue realized by the City during the first 3 years following correction. MMC will also pursue recovery of revenue for eligible prior periods, if any. For retroactive adjustments MMC's 35% shall apply to the amount of the adjustment. Under this arrangement, the City agrees to notify MMC within 10 days following receipt by the City of payments resulting from MMC's discovery service. Upon the City's receipt of payment, MMC will then invoice the City for its fee. Earned compensation is due and payable upon receipt of invoice. City agrees that it will pay all MMC invoices within thirty (30) days of receiving the invoice. If City does not make payment within thirty (30) days of receiving MMC's invoice and does not dispute the billing in writing, MMC has the discretion to collect onc percent (I %) interest per month for each month the invoice remains unpaid. MBIA MuniServices Co. Page 17 of 18 If saicr property tax dcficicncics arc dctcctcd and documcntcd during thc tcrm of this Agrecmcnt, but not collccted by the City until after this Agrccment has expired, City shall nevcrtheless pay Consultant its fee, including interest and penalties, upon receipt of the revenue. All expenses incurred by MMC in providing thc property tax discovery service are absorbed by MMC. These expenses include items such as salaries and benefits, insurance, airfare, auto rentals, meals, lodging, keypunching, computer processing, clerical, communications (c.g. meetings, telephonc, mail, etc.) photocopying, overhead and miscellaneous out-of-pockets for consumable supplies and research materials etc. MBIA MuniServices Co. Page 18 of 18