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RM
<br />UTILITY USERS TAX/FRANCHISE
<br />COMPLIANCE AND REVENUE PROTECTION PROGRAM
<br />This AGREEMENT is made and entered at Santa Ana, California, as of July 1 st, 2000, by and between MBIA
<br />MuniServices Company/Municipal Resource Consultants (hereinafter referred to as "MMC"), with a business
<br />address of MBIA MuniServices Company, 32107 W. Lindero Canyon Road #233, Westlake Village, CA 91361,
<br />and the City of Santa Ana, a charter city and municipal corporation duly organized and existing under the
<br />Constitution and laws of the State of California (hereinafter referred to as "CITY"), with a business address of City
<br />of Santa Ana, 20 Civic Center Plaza, Santa Ana, CA 92702-1988.
<br />MMC agrees to provide CITY with certain professional services in furtherance of a comprehensive utility users
<br />tax/franchise compliance and revenue protection program (hereinafter "PROGRAM"), with broad participation by
<br />California public agencies, that is designed to preserve, protect, and enhance their utility users tax (UUT) and utility
<br />franchise revenues.
<br />1. PROGRAM OBJECTIVES
<br />MMC's auditing, geocoding, information, and associated services and skills, in conjunction with the legal and
<br />"protective" services of the CITY's outside counsel, Donald H. Maynor, A Professional Law Corporation
<br />(LAW FIRM), will be used to establish and implement a PROGRAM that will allow participating California
<br />public agencies to preserve, protect and enhance their UUT and utility franchise revenues through a
<br />combination of auditing, geocoding, tax application compliance, business detection, ordinance update,
<br />legislative monitoring, technology update, and other essential compliance and protective services. An effective
<br />compliance PROGRAM will assist the CITY, and other participating public agencies, in identifying and
<br />correcting errors/omissions causing revenue deficiencies, and thereby produce new or previously unrealized
<br />revenue for such participants. The PROGRAM's tax preservation services will protect the CITY's existing
<br />UUT revenues from erosion due to new legislation, new technologies, outdated ordinance language and
<br />inaccurate information. By offering these essential services through a comprehensive PROGRAM, with
<br />widespread participation, there are the additional benefits of. i) achieving lower individual costs for such joint
<br />activities; and, ii) developing consensus -based decisions regarding ordinance interpretations and tax
<br />implementation that utility industries require of California public agencies.
<br />2. ROLE OF CLIENT EXECUTIVE COMMITTEE
<br />A Client Executive Committee (CEC) will be formed, made up of client public agency representatives, to
<br />review and approve the PROGRAM's proposed work plan, and provide general PROGRAM oversight. The
<br />CEC will also function to develop consensus positions on tax application issues, and other matters requiring
<br />uniformity among California public agencies with UUT ordinances. MMC will provide quarterly progress
<br />reports to the CEC and to the CITY to establish the PROGRAM's continuing value to the CITY.
<br />3. FIXED FEE SERVICES
<br />A. Compliance Review Services
<br />At any time during the term of this AGREEMENT, with the prior written consent of the CEC, or with
<br />the prior written consent of the City where specifically indicated, MMC may perform compliance
<br />review activity on behalf of the CITY in any of the following areas:
<br />UUT Tax Application and Franchise Fee Review` In accordance with a work plan that has
<br />been reviewed and approved by the CEC, MMC will perform compliance reviews of major
<br />utility providers, with a focus on common client issues, to assure that the UUT is being
<br />properly applied to taxable services and charges, and that the franchise fee formula is being
<br />properly applied to the revenue base (as provided in standard franchise agreements). MMC
<br />will use the legal expertise of LAW FIRM on matters requiring legal analysis or an
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