2019-003 - Authorizing the City Manager to Execute Agreements

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AGREEMENT FOR PREPARATIONTO ADMINISTER AND OPERATE CITY'S' RANSAIC' ONS AND USE TAX C JUNNANCE In order to prepare to administer,- transactions and use tax ordinance adopted in accordance with the provision of Part l,6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Santa Ana, hereinafter called 0%! and the CALIFORNIA DEPAWIMENT OF TAX AND PEE ADMINISTRATION, hereinafter called itepartment, do agree as follows: 1. The Department agrees to easter Into work to prepare to administer and operate a transactions and use tax in conformity with mart 1.6 of Envision 2 of the Revenue and. Taxation Cotte which has been approved by a majority of the electors of the City arid, whose Ordinance has been adopted by the City, 2, City agrees to pay to the Department at the times and in Elie amounts hereinafter specified all of the Departments costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs or developing procedures, programming for data processing, developing and adopthig appropriate regulations, designing and printing forms, developing instructions for tits Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to admitiister a transactions and use tax ordinance. These costs shalt include both direct and indirect costs as specified in Section 11256 of the Government Cock 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may he presented in summary forma. Detailed records of preparatory costs will he retained for audit, and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred, to the 'State Director of Finance for resolution, and the DirectoEss decision shall be fatal. 5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable lime after the operative date of the ordinance, City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the mouth when the billing is received. 6. The amount to be paid by City far the Department's preparatory costs shall not exceed one hundred seventy -live thousand dollars ($175,000) (Rovenne and Taxation Code Section 7272.) Exhibit A Resolution No. 2019-003 Page 3 of 11