Item 23 - Adopt a Resolution and Approve Agreement for Tax Revenue Auditing, Analysis, Forecasting, and Reporting Service

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DocuSign Envelope ID:9822D5D4-600B-4A67-B07F-02E780760E1B EXHIBIT E UTILITY USERS TAX FOR ELECTRIC, GAS & TELECOMMUNICATIONS SERVICES SECTION I: SCOPE OF SERVICES 1. SUPPORT & INDUSTRY MONITORING SERVICES 1.1 Hinderliter, de Llamas and Associates ("HdL") shall actively monitor federal and state industry and legislative events which may impact UUT revenues, keep the City informed, and make recommendations regarding advocacy or other response as appropriate. 1.2 Prepare biannual revenue estimates and include assumptions. Represent the City for the purpose of obtaining information from utility providers to assist with preparation of revenue estimates. Schedule biannual meetings with staff to review the estimates and assumptions 1.3 Provide analysis reports on the utility provider community and reporting details including utility trends, provider trends, revenue trends, and revenue forecasting utilizing the City provided data. 1.4 Ordinance and Filing Procedure Review — analysis of UUT ordinances and the City procedures to identify possible deficiencies, areas subject to legal challenge, or missing best practice provisions. 2. AUDIT SERVICES 2.1 Overall Tasks a. HdL shall conduct audits in accordance with the City's Municipal Code (Chapter 35, Article VI), based on an agreed -to plan and schedule. The audits will include corresponding franchise fees as applicable. HdL shall represent the City for the purpose of examining records related to the applicable tax and fee revenue. Schedule meetings with staff as needed b. HdL shall contact the City's staff and obtain documentation required to kick off the project. c. Review the City's municipal code related to utility users' tax to understand the definition of gross revenues and the determination of utility users' taxes. d. Prepare initial data requests to the utility companies and the City requesting information related to the review period. During the project, if needed, prepare additional data requests and submit them to the utility companies. e. Execute non -disclosure agreements (NDAs) with the utility companies, if required. f. Correspond with the utility companies and the City, as required via phone and email, to obtain documentation, resolve issues, and obtain any appropriate assistance. 2.2 Review of Utility Users' Taxes a. Verify that the accounting methodologies and procedures used by the Companies accurately identify billed revenues generated within the City during the review period subject to the utility users' taxes. Investigate any inconsistencies and provide recommendations, if applicable. b. Review payments to the City and recalculate the utility users' taxes for the review period. c. On a test basis, reconcile billed revenues submitted as supporting documentation with the tax payments to revenues recorded on the audited financial statements or equivalent reporting information.