Resolution No. 9271r
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RESOLUTION NO. 9271
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF
AGREEMENT NO. C0600239 BY AND BETWEEN THE CITY OF
VERNON AND THE FRANCHISE TAX BOARD REGARDING THE
CITY'S PARTICIPATION IN LOCAL GOVERNMENT SHARING
PROGRAM
WHEREAS, on October 14, 2001, the California State
Legislature enacted AB 63 creating a Local Government Sharing Program
permitting the disclosure of limited confidential tax information by
the Franchise Tax Board to tax officials of any city for business tax
purposes only and requiring that the Franchise Tax Board be reimbursed
its cost of providing this information to a city; and
WHEREAS, on December 13, 2006, the City Council approved the
(City of Vernon's participation in the Local Government Sharing Program
Ifor the 2006 tax year data to assist the City in administering its
business tax program; and
WHEREAS, the cost to participate in the Local Government
Sharing Program will be shared among all the cities participating in
the Program, with the City of Vernon's allocation to be a sum not to
exceed Five Hundred Dollars ($500); and
WHEREAS, to implement the City's participation in the Local
Government Sharing Program, the Franchise Tax Board is requiring the
execution of a Standard Agreement No. C0600239 ("Agreement") which,
among other things, requires the City, the City's business tax license
department and each of the City's employees who may have access to the
confidential data of the Franchise Tax Board, to sign a statement
attesting to the fact that he/she is aware of the confidential data and
the penalties for unauthorized disclosure and take other appropriate
C
, e
t
1 precautions; and
2 WHEREAS, under the terms and conditions of the Agreement, no
3 other City employees, other than the City business license tax
4 employees, may have access to the data provided by the Franchise Tax
5 Board; and
6 WHEREAS, City staff have recommended that the Acting City
7 Administrator be authorized to execute the Agreement with the
8 Franchise Tax Board and any other documentation necessary to implement
9 the City's participation in the Local Government Sharing Program.
10 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
11 CITY OF VERNON AS FOLLOWS:
12 SECTION 1: The City Council of the City of Vernon hereby
13 finds and determines that the recitals contained hereinabove are true
14 and correct.
15 SECTION 2: The City Council of the City of Vernon hereby
16 approves the Standard Agreement No. C0600239 with the California
17 Franchise Tax Board, a copy of which'is attached hereto as Exhibit A
18 and incorporated by reference.
19 SECTION 3: The City Council of the City of Vernon hereby
20 authorizes the Acting City Administrator to execute said Agreement for,
21 and on behalf of, the City of Vernon.
22 SECTION 4: The City Council of the City of Vernon hereby
23 authorizes and empowers the Acting City Administrator and/or his
24 designee to act as the Project Coordinator and to execute all forms
25 necessary to secure, implement and carry out the purposes specified in
26 the Local Government Sharing Program (AB 63) and to provide
27 information regarding this Program to the Franchise Tax Board, upon
28 request.
2 -
1 SECTION 4: The City Council of the City of Vernon hereby
2 directs the Acting City Clerk, or her designee, to send two fully
3 executed Agreements to:
4 Franchise Tax Board
Business Acquisitions Unit
5 Attn. Tracey Mollow, Mailstop A 374
6 P. O. Box 2086
Rancho Cordova, CA 95741-2086
7
SECTION 5: The Acting City Clerk of the City of Vernon
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shall certify to the passage of this resolution, and thereupon and
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thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 19th day of March, 2007.
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13 HILARIO GONZPr ES, Mayor Pro-Tem
A TEST:
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16 NUELA GIRO , cting City Clerk
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STATE OF CALIFORNIA )
)ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, Acting City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
9271, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Monday, March 19,
2007, and thereafter was duly signed by the Mayor Pro-Tem of the City
of Vernon. _
I(SEAL)
MANUELA GIRON,`Acting City Clerk
4 -
EXHIBIT
STATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06/03)
AGREEMENT NUMBER
C0600239
REGISTRATION NUMBER
1. This Agreement is entered into between the State Agency and the Contractor named below:
STATE AGENCY S NAME
Franchise Tax Board
CONTRACTOR'S NAME
City of Vernon
2. The term of this
Agreement is: April 1, 2007 through December 31, 2007
3. The maximum amount $ 500.00
of this Agreement is: FIVE HUNDRED AND NO/100 DOLLARS
4. The parties agree to comply with the terms and conditions of the following exhibits, which are by this reference made
a part of the Agreement.
Exhibit A — Scope of Work
1 page
Exhibit B — Budget Detail and Payment Provisions
1 page
Exhibit C* — General Terms and Conditions
GTC306
Exhibit D - Special Terms and Conditions
3 pages
Exhibit E - Confidentiality Statement
1 page
Items shown with an Asterisk (*), are hereby incorporated by reference and made part of this agreement as if attached hereto.
These documents can be viewed at.www. ols.ctqs.ca.-govIStandard+Lanquageldefault.htm
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CONTRACTOR
CONTRACTOR'S NAME (irotherthan an individual, state whether corporation, partnership, etc.)
City of Vernon
BY (Authorized Signature) I DATE SIGNED(Do not type)
.ES
PRINTED NAME AND TITLE OF PERSON SIGNING
Eric T. Fresch, Acting City Administrator
ADDRESS
4305 Santa Fe Avenue, Vernon, CA 90058
STATE OF CALIFORNIA 11
AGENCY NAME
Franchise Tax Board
BY (Authorized Signature)
PRINTED NAME AND TITLE OF PERSON SIGNING
Titus S. Toyama, Chief Financial Officer
ADDRESS
P.O. Box 2086, Rancho Cordova, CA 95741-2086
DATE SIGNED(Do not type)
California Department of General
Services Use Only
® Exempt per. SCM 4.04.5.b.
As To Form
20--
JEFF HARRISON
City of Vernon
Agreement #C0600239
EXHIBIT A
SCOPE OF WORK
This Agreement is entered into by and between the Franchise Tax Board, herein referred to as
(FTB) and the City of Vernon, herein after referred to as the City.
1. Pursuant to Revenue and Taxation Code Section 19551.1, FTB will provide to the City the
following records obtained from the FTB Taxpayer Information System (TI) and Business
Entity Tax System (BETS) files:
a. Taxpayer name
b. Taxpayer Address
c. Taxpayer Social Security Number or Federal Employee Identification Number
d. Principal Business Activity Code
2. The records will be extracted from information in the FTB files obtained from the 2006 tax
year.
3. The records will be identified by zip codes located within the jurisdictional boundaries of the
City. A database of the identified records will be transmitted to the City.
4. The records will be sent to the City project coordinator on CD -Rom through a secure
electronic connection no later than December 31, 2007. The 2006 tax year data will be sent
two times during the year. The first will be sent in June 2007 containing the most current
filings to date. A second file will be sent in December 2007, complete with all 2006 tax
filings to date.
5. The project coordinators during the term of this Agreement will be:
Franchise Tax Board
Erica Gonzales
Data Resources and Services Section
P.O. Box 1468, Mailstop A 181
Sacramento, CA 95812-1468
Phone: (916) 845-6556
Fax: (916) 845-0412
Franchise Tax Board
Business Acquisitions Unit
Attention: Tracey Mollow
P.O. Box 2086, Mailstop A 374
Rancho Cordova, CA 95741-2086
Phone: (916) 845-5193
Fax: (916) `845-3599
City of Vernon
Eric T. Fresch
Acting City Administrator
4305 Santa Fe Avenue
Vernon, CA 90058
Phone: (323) 583-8811, ext. 368
City of Vernon
Agreement #C0600239
EXHIBIT B
BUDGET DETAIL. AND PAYMENT PROVISION
1. PAYMENT: The City agrees to pay FTB $500.00 for 2006 data. Upon receipt of the
executed Agreement, the FTB will invoice the City for its share of the cost for tax year 2006
data, which shall not exceed $500.00.
2. INVOICING: FTB shall render an invoice in triplicate to the City project coordinator:
Upon receipt of the Agreement executed by the FTB and an accompanying invoice, the City
agrees to remit payment of the amount shown on the invoice, within 30 days.
EXHIBIT C
GTC 306
EXHIBIT C
GENERAL TERMS AND CONDITIONS
L APPROVAL: This Agreement is of no force or effect until signed by both parties and
approved by the Department of General Services, if required. Contractor may not commence
performance until such approval has been obtained.
2. AMENDMENT: No amendment or variation of the terms of this Agreement shall be valid
unless made in writing, signed by the parties and approved as required. No oral understanding or
Agreement not incorporated in the Agreement is binding on any of the parties.
3. ASSIGNMENT: This Agreement is not assignable by the Contractor, either in whole or in
part, without the consent of the State in the form of a formal written amendment.
4. AUDIT: Contractor agrees that the awarding department, the Department of General Services,
the Bureau of State Audits, or their designated representative shall have the right to review and
to copy any records and -supporting documentation pertaining to the performance of this
Agreement. Contractor agrees to maintain such records for possible audit for a minimum of three
(3) years after final payment, unless a longer period of records retention is stipulated. Contractor
agrees to allow the auditor(s) access to such records during normal business hours and to allow
interviews of any employees who might reasonably have information related to such records.
Further, Contractor agrees to include a similar right of the State to audit records and interview
staff in any subcontract related to performance of this Agreement. (Gov. Code §8546.7, Pub.
Contract Code § 10115 et seq., CCR Title 2, Section 1896).
5. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its
officers, agents and employees from any and all claims and losses accruing or resulting to any
and all contractors, subcontractors, suppliers, laborers, and any other person, firm or corporation
furnishing or supplying work services, materials, or supplies in connection with the performance
of this Agreement, and from any and all claims and losses accruing or resulting to any person,
firm or corporation who may be injured or damaged by Contractor in the performance of this
Agreement.
6. DISPUTES: Contractor shall continue with the responsibilities under this Agreement during
any dispute.
7. TERMINATION FOR CAUSE: The State may terminate this Agreement and be relieved of
any payments should the Contractor fail to perform the requirements of this Agreement at the
time and in the manner herein provided. In the event of such termination the State may proceed
with the work in any manner deemed proper by the State. All costs to the State shall be deducted
from any sum due the Contractor under this Agreement and the balance, if any, shall be paid to
the Contractor upon demand.
8. INDEPENDENT CONTRACTOR: Contractor, and the agents and employees of Contractor,
in the performance of this Agreement, shall act in an independent capacity and not as officers or
employees or agents of the State.
9. RECYCLING CERTIFICATION: The Contractor shall certify in writing under penalty of
perjury, the minimum, if not exact, percentage of post consumer material as defined in the Public
Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the
State regardless of whether the product meets the requirements of Public Contract Code Section
12209. With respect to printer or duplication cartridges that comply with the requirements of
Section 12156(e), the certification required by this subdivision shall specify that the cartridges so
comply (Pub. Contract Code § 12205).
10. NON-DISCRIMINATION CLAUSE: During the performance of this Agreement, Contractor
and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any
employee or applicant for employment because of sex, race, color, ancestry, religious creed,
national origin, physical disability (including HIV and AIDS), mental disability, medical
condition (cancer), age (over 40), marital status, and denial of family care leave. Contractor and
subcontractors shall insure that the evaluation and treatment of their employees and applicants
for employment are free from such discrimination and harassment. Contractor and subcontractors
shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12990
(a-f) et seq.) and the applicable regulations promulgated thereunder (California Code of
Regulations, Title 2, Section 7285 et seq.). The applicable regulations of the Fair Employment
and Housing Commission implementing Government Code Section 12990 (a-f), set forth in
Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into
this Agreement by reference and made a part hereof as if set forth in full. Contractor and its
subcontractors shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other Agreement.
Contractor shall include the nondiscrimination and compliance provisions of this clause in all
subcontracts to perform work under the Agreement.
11. CERTIFICATION CLAUSES: The CONTRACTOR CERTIFICATION CLAUSES
contained in the document CCC 1005 are hereby incorporated by reference and made a part of
this Agreement by this reference as if attached hereto.
12. TIMELINESS: Time is of the essence in this Agreement.
13. COMPENSATION: The consideration to be paid Contractor, as provided herein, shall be in
compensation for all of Contractor's expenses incurred in the performance hereof, including
travel, per diem, and taxes, unless otherwise expressly so provided.
14. GOVERNING LAW: This contract is governed by and shall be interpreted in accordance
with the laws of the State of California.
15. ANTITRUST CLAIMS: The Contractor by signing this agreement hereby certifies that if
these services or goods are obtained by means of a competitive bid, the Contractor shall comply
with the requirements of the Government Codes Sections set out below.
a. The Government Code Chapter on Antitrust claims contains the following definitions:
1). "Public purchase" means a purchase by means of competitive bids of goods, services, or
materials by the State or any of its political subdivisions or public agencies on whose behalf the
Attorney General may bring an action pursuant to subdivision (c) of Section 16750 of the
Business and Professions Code.
2). "Public purchasing body" means the State or the subdivision or agency making a public
purchase. Government Code Section 4550.
b. In submitting a bid to a public purchasing body, the bidder offers and agrees that if the bid is
accepted, it will assign to the purchasing body all rights, title, and interest in and to all causes of
action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the
Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the
Business and Professions Code), arising from purchases of goods, materials, or services by the
bidder for sale to the purchasing body pursuant to the bid. Such assignment shall be made and
become effective at the time the purchasing body tenders final payment to the bidder.
Government Code Section 4552.
c. If an awarding body or public purchasing body receives, either through judgment or
settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor
shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand,
recover from the public body any portion of the recovery, including treble damages, attributable
to overcharges that were paid by the assignor but were not paid by the public body as part of the
bid price, less the expenses incurred in obtaining that portion of the recovery. Government Code
Section 4553.
d. Upon demand in writing by the assignor, the assignee shall, within one year from such
demand, reassign the cause of action assigned under this part if the assignor has been or may
have been injured by the violation of law for which the cause of action arose and (a) the assignee
has not been injured thereby, or (b) the assignee declines to file a court action for the cause of
action. See Government Code Section 4554.
16. CHILD SUPPORT COMPLIANCE ACT: "For any Agreement in excess of $100,000, the
contractor acknowledges in accordance with Public Contract Code 7110, that:
a). The contractor recognizes the importance of child and family support obligations and shall
fully comply with all applicable state and federal laws relating to child and family support
enforcement, including, but not limited to, disclosure of information and compliance with
earnings assignment orders, as provided in Chapter 8 (commencing with section 5200) of Part 5
of Division 9 of the Family Code; and
b) The contractor, to the best of its knowledge is fully complying with the earnings assignment
orders of all employees and is providing the names of all new employees to the New Hire
Registry maintained by the California Employment Development Department."
17. UNENFORCEABLE PROVISION: In the event that any provision of this Agreement is
unenforceable or held to be unenforceable, then the parties agree that all other provisions of this
Agreement have force and effect and shall not be affected thereby.
18. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of
$200,000, the Contractor shall give priority consideration in filling vacancies in positions funded
by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200
in accordance with Pub. Contract Code § 10353.
S AADMIN\HOMEPAGE\GTC-306.doc
CCC-1005
CERTIFICATION
I, the official named below, CERTIFY UNDER PENALTY OF PERJURY that I am duly
authorized to legallybind the prospective Contractor to the clause(s) listed below. This
certification is made under the laws of the State of California.
Contractor/Bidder Firm Name (Printed)
By (Authorized Signature)
Printed Name and Title of Person Signing
I Date Executed
Executed in the County of
CONTRACTOR CERTIFICATION CLAUSES
Federal ID Number
1. STATEMENT OF COMPLIANCE: Contractor has, unless exempted, complied with
the nondiscrimination program requirements. (Gov. Code § 12990 (a-f) and CCR, Title 2,
Section 8103) (Not applicable to public entities.)
2. DRUG -FREE WORKPLACE REQUIREMENTS: Contractor will comply with the
requirements of the Drug -Free Workplace Act of 1990 and will provide a drug -free
workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution,
dispensation, possession or use of a controlled substance is prohibited and specifying
actions to be taken against employees for violations.
b. Establish a Drug -Free Awareness Program to inform employees about:
1) the dangers of drug abuse in the workplace;
2) the person's or organization's policy of maintaining a drug -free workplace;
3) any available counseling, rehabilitation and employee assistance programs; and,
4) penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the proposed Agreement will:
1) receive a copy of the company's drug -free workplace policy statement; and,
2) agree to abide by the terms of the company's statement as a condition of employment
on the Agreement.
Failure to comply with these requirements may result in suspension of payments under
the Agreement or termination of the Agreement or both and Contractor may be ineligible
for award of any future State agreements if the department determines that any of the
following has occurred: the Contractor has made false certification, or violated the
certification by failing to carry out the requirements as noted above. (Gov. Code §8350 et
seq.)
3. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor certifies
that no more than one (1) final unappealable finding of contempt of court by a Federal
court has been issued against Contractor within the immediately preceding two-year
period because of Contractor's failure to comply with an order of a Federal court, which
orders Contractor to comply with an order of the National Labor Relations Board. (Pub.
Contract Code § 10296) (Not applicable to public entities.)
4. CONTRACTS FOR LEGAL SERVICES $50 000 OR MORE- PRO BONO
REQUIREMENT: Contractor hereby certifies that contractor will comply with the
requirements of Section 6072 of the Business and Professions Code, effective January 1,
2003.
Contractor agrees to make a good faith effort to provide a minimum number of hours of
pro bono legal services during each year of the contract equal to the lessor of 30
multiplied by the number of full time attorneys in the firm's offices in the State, with the
number of hours prorated on an actual day basis for any contract period of less than a full
year or 10% of its contract with the State.
Failure to make a good faith effort may be cause for non -renewal of a state contract for
legal services, and may be taken into account when determining the award of future
contracts with the State for legal services.
5. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an
expatriate corporation or subsidiary of an expatriate corporation within the meaning of
Public Contract Code Section 10286 and 10286.1, and is eligible to contract with the
State of California.
6. S WEATFREE CODE OF CONDUCT:
a. All Contractors contracting for the procurement or laundering of apparel, garments or
corresponding accessories, or the procurement of equipment, materials, or supplies, other
than procurement related to a public works contract, declare under penalty of perjury that
no apparel, garments or corresponding accessories, equipment, materials, or supplies
furnished to the state pursuant to the contract have been laundered or produced in whole
or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal
sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or
with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under
penal sanction, abusive forms of child labor or exploitation of children in sweatshop
labor. The contractor further declares under penalty of perjury that they adhere to the
Sweatfree Code of Conduct as set forth on the California Department of Industrial
Relations website located at www.dir.ca.gov, and Public Contract Code Section 6108.
b. The contractor agrees to cooperate fully in providing reasonable access to the
contractor's records, documents, agents or employees, or premises if reasonably required
by authorized officials of the contracting agency, the Department of Industrial Relations,
or the Department of Justice to determine the contractor's compliance with the
requirements under paragraph (a).
7. DOMESTIC PARTNERS: For contracts executed or amended after July 1, 2004, the
contractor may elect to offer domestic partner benefits to the contractor's employees in
accordance with Public Contract Code section 10295.3. However, the contractor cannot
require an employee to cover the costs of providing any benefits which have otherwise
been provided to all employees regardless of marital or domestic partner status.
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of
California.
1. CONFLICT OF INTEREST: Contractor needs to be aware of the following provisions
regarding current or former state employees. If Contractor has any questions on the
status of any person rendering services or involved with the Agreement, the awarding
agency must be contacted immediately for clarification.
Current State Employees (Pub. Contract Code § 10410):
1). No officer or employee shall engage in any employment, activity or enterprise from
which the officer or employee receives compensation or has a financial interest and
which is sponsored or funded by any state agency, unless the employment, activity or
enterprise is required as a condition of regular state employment.
2). No officer or employee shall contract on his or her own behalf as an independent
contractor with any state agency to provide goods or services.
Former State Employees (Pub. Contract Code § 10411):
1). For the two-year period from the date he or she left state employment, no former state
officer or employee may enter into a contract in which he or she engaged in any of the
negotiations, transactions, planning, arrangements or any part of the decision -making
process relevant to the contract while employed in any capacity by any state agency.
2). For the twelve-month period from the date he or she left state employment, no former
state officer or employee may enter into a contract with any state agency if he or she was
employed by that state agency in a policy -making position in the same general subject
area as the proposed contract within the 12-month period prior to his or her leaving state
service.
If Contractor violates any provisions of above paragraphs, such action by Contractor shall
render this Agreement void. (Pub. Contract Code § 10420)
Members of boards and commissions are exempt from this section if they do not receive
payment other than payment of each meeting of the board or commission, payment for
preparatory time and payment for per diem. (Pub. Contract Code § 10430 (e))
2. LABOR CODE/WORKERS' COMPENSATION: Contractor needs to be aware of the
provisions which require every employer to be insured against liability for Worker's
Compensation or to undertake self-insurance in accordance with the provisions, and
Contractor affirms to comply with such provisions before commencing the performance
of the work of this Agreement. (Labor Code Section 3700)
3. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that it
complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits
discrimination on the basis of disability, as well as all applicable regulations and
guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
4. CONTRACTOR NAME CHANGE: An amendment is required to change the
Contractor's name as listed on this Agreement. Upon receipt of legal documentation of
the name change the State will process the amendment. Payment of invoices presented
with a new name cannot be paid prior to approval of said amendment.
5. CORPORATE QUALIFICATIONS TO DO BUSINESS IN CALIFORNIA:
a. When agreements are to be performed in the state by corporations, the contracting
agencies will be verifying that the contractor is currently qualified to do business in
California in order to ensure that all obligations due to the state are fulfilled.
b. "Doing business" is defined in R&TC Section 23101 as actively engaging in any
transaction for the purpose of financial or pecuniary gain or profit. Although there are
some statutory exceptions to taxation, rarely will a corporate contractor performing
within the state not be subject to the franchise tax.
c. Both domestic and foreign corporations (those incorporated outside of California) must
be in good standing in order to be qualified to do business in California. Agencies will
determine whether a corporation is in good standing by calling the Office of the Secretary
of State.
6. RESOLUTION: A county, city, district, or other local public body must provide the
State with a copy of a resolution, order, motion, or ordinance of the local governing body
which by law has authority to enter into an agreement, authorizing execution of the
agreement.
7. AIR OR WATER POLLUTION VIOLATION: Under the State laws, the Contractor
shall not be: (1) in violation of any order or resolution not subject to review promulgated
by the State Air Resources Board or an air pollution control district; (2) subject to cease
and desist order not subject to review issued pursuant to Section 13301 of the Water
Code for violation of waste discharge requirements or discharge prohibitions; or (3)
finally determined to be in violation of provisions of federal law relating to air or water
pollution.
8. PAYEE DATA RECORD FORM STD. 204: This form must be completed by all
contractors that are not another state agency or other governmental entity.
EXHIBIT D
City of Vernon
Agreement #C0600239
EXHIBIT D
SPECIAL TERMS AND CONDITIONS
1. DATA OWNERSHIP: The confidential tax information being provided under this
Agreement remains the exclusive property of the FTB. The City shall have the right to use
and process the disclosed information for the purposes stated in this Agreement, which
right shall be revoked and terminated immediately upon completion of this Agreement.
2. STATEMENT OF CONFIDENTIALITY: The FTB has state tax return information and other
data in its custody, which is confidential data. Unauthorized inspection or disclosure of
state tax return information or other confidential data is a misdemeanor (Revenue and
Taxation Code Section 19542 and 19542.1).
The City and each of the City's employees who may have access to the confidential data of
the FTB will be required to sign a statement, Exhibit E, attesting to the fact that he/she is
aware of the confidential data and the penalties for unauthorized disclosure thereof.
3. USE OF INFORMATION: The City agrees that the information furnished or secured
pursuant to this Agreement shall be used solely for the purposes described by this
Agreement. The information obtained shall be used exclusively to administer the city
business tax program established by the City. The City further agrees that information
obtained under this Agreement will not be reproduced, published, sold or released in
original or in any other form for any purpose other than identified in this Agreement.
4. EMPLOYEE ACCESS TO INFORMATION: The City agrees that the information obtained
will be kept in the strictest confidence and shall make information available to its own
employees only on a "need to know" basis. The "need to know" standard is met by
authorized employees who need information to perform their official duties in connection
with the uses of the information authorized by this Agreement. The parties recognize their
mutual responsibilities to protect the confidentiality of the state tax return information as
provided by law and ensures such information is disclosed only to those individuals and of
such purpose, as authorized by the Revenue and Taxation Code.
5. DISCLOSURE OF CONFIDENTIAL INFORMATION: Any unwarranted disclosure or use of
state tax return information or any willful unauthorized inspection of the return information is
an act punishable as a misdemeanor. Inspection is defined to mean any examination of
confidential information. No one other than city business tax program employees may have
access, use, and view or manipulate the data being transmitted to the City under this
Agreement. The City, in recognizing the confidentiality of state tax return information,
agrees to take all appropriate precautions to protect from unauthorized disclosure of the
confidential information obtained pursuant to this Agreement. The City will conduct
oversight of its users with access to the confidential information provided under this
Agreement, and will promptly notify the FTB of any suspected violations of security or
confidentiality by its users.
City of Vernon
Agreement #C0600239
EXHIBIT D
SPECIAL TERMS AND CONDITIONS (continued)
6. INCIDENT REPORTING: All unauthorized or suspected unauthorized access; use and/or
disclosure (incidents) of FTB data shall be reported to the FTB project coordinator, Erica
Gonzales at (916) 845-6556, immediately upon discovery of the incident. The incident
report shall contain the following: date, time, employee name, description of the incident or
circumstances, and means of discovery. Upon discovery of any such incident, FTB will
make the appropriate notification to affected California Resident(s) pursuant to the
requirements of Civil Code Section 1798.29.
7. IRS INFORMATION: This agreement does not allow for the release of any confidential tax
return information in the FTB files that may have been obtained from sources other than the
taxpayer. No confidential federal tax return information will be provided to the City. This
Agreement does not provide for the exchange of confidential federal tax return information
obtained from the Internal Revenue Service by the FTB.
8. INFORMATION SECURITY: Information security is defined as the preservation of the
confidentiality, integrity, availability, authenticity and utility of information. A secure
environment is required to protect the confidential information obtained from the FTB
pursuant to this Agreement. The City will store information so that it is physically secure
from unauthorized access. The records received by the City will be securely maintained
and accessible only by employees of the city business tax program who are committed to
protect the data from unauthorized access, use or disclosure.
9. DESTRUCTION OF RECORDS: All records received by the City from FTB and any
database created, copies made, or files attributed to the records received will be destroyed
within three years of receipt. The records shall be destroyed in a manner to be deemed
unusable or readable and to the extent that an individual record can no longer be
reasonably ascertained.
10. INDEMNIFICATION: The City agrees to indemnify, defend and save harmless the FTB, its
officers, agents and employees from any and all claims and losses accruing or resulting
from any breach of confidentiality by the City and/or its employees.
11. SETTLEMENT OF DISPUTES: In the event of a dispute, the City shall file a "Notice of
Dispute" with the Assistant Executive Officer, of the Franchise Tax Board within ten (10)
days of discovery of the problem. Within ten (10) days the Assistant Executive Officer, or
his/her designee shall meet with the City and FTB Contact for purposes of resolving the
dispute. The decision of the Assistant Executive Officer shall be final.
12. SAFEGUARD QUESTIONNAIRE AND REVIEW: Prior to sending data to the City, the FTB
retains the right to require the City to submit a safeguard questionnaire certifying the
protection and confidentiality of FTB data. The FTB also retains the right to conduct an on -
site safeguard review of the City. The City will be provided a minimum of seven (7) days
notice prior to a safeguard review being conducted by the FTB Disclosure Office. The
safeguard review will examine the adequacy of information security controls established by
the City in compliance with the confidentiality requirements pursuant to this Agreement.
The City will take appropriate disciplinary actions against any user determined to have
violated security or confidentiality requirements.
City of Vernon
Agreement #C0600239
EXHIBIT D
SPECIAL TERMS AND CONDITIONS (continued)
13. LIMITED WARRANTY: The FTB does not warrant or represent the accuracy or content of
the material available through this Agreement, and expressly disclaims any express or
implied warranty, including any implied warranty of fitness for a specific purpose.
14. CANCELLATION: The City may terminate this Agreement, in writing to the FTB for any
reason, upon thirty days (30) prior written notice. In the event of a voluntary termination,
the City agrees it will not be entitled to a refund. This Agreement may be terminated by
either party in the event of any breach of the terms of this Agreement. The City agrees that
in the event of its breach to the terms of this Agreement it shall destroy all records received
by the City from FTB and any database created, copies made, or files attributed to the
records received immediately upon written notification by FTB. The records shall be
destructed in a manner to be deemed unusable or readable and to the extent that an
individual record can no longer be reasonably ascertained. Upon destruction of the
records, the City will notify FTB of the completed destruction.
0,642_ AID, _ i
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City of Vernon Agreement #C0600239
EXHIBIT E
CONFIDENTIALITY STATEMENT
State of California Franchise Tax Board
Confidential tax return information is protected from disclosure by law, regulation, and
policy. Information security is strictly enforced. Violators may be subject to disciplinary,
civil, and/or criminal action. Protecting confidential tax return information is in the
public's interest, the state's interest, and the city's interest.
A city employee is required to protect the following types of information received from
the Franchise Tax Board:
• Taxpayer name
• Taxpayer address
• Taxpayer social security number or taxpayer identification number
• Principal business activity code
A city employee is required to protect confidential information by:
• Accessing or modifying information only for the purpose of performing official duties.
• Never accessing or inspecting information for curiosity or personal reasons.
• Never showing or discussing confidential information to or with anyone who does not
have the need to know.
• Placing confidential information only in approved locations.
• Never removing confidential information from your work site without authorization.
As a city employee, you are required to know whether information is protected. If you have any
question regarding whether particular information is confidential, check with your department's
project coordinator.
Unauthorized inspection, access, use, or disclosure of confidential tax return information
is a crime under state laws, including but not limited to Sections 19542 and 19552 of the
California Revenue and Taxation Code and Section 502 of the Penal Code. Unauthorized
access, inspection, use, or disclosure may result in either or both of the following:
• State criminal action
• State and/or taxpayer civil action
You are reminded that these rules are designed to protect everyone's right to privacy, including
your own.
I certify that I have read the confidentiality statement printed above. I further certify and
understand that unauthorized access, inspection, use, or disclosure of confidential
information may be punishable as a crime and may result in disciplinary and/or civil
action being taken against me.
Name
Signature Date
SUPPORTING
DOCUMENTS
STATE OF CALIFORNIA JOHN CHIANG
FRANCHISE TAX BOARD Chair
VPgm PO Box 2086, Mailstop A374 BETTY T. YEE
° Rancho Cordova, CA 95741-2086 Member
;P Telephone (916) 845-5193 MICHAEL C. GENEST
Fax (916) 843-0497 Member
March 25, 2007
City of Vernon
Attn: Eric T. Fresch
4305 Santa Fe Avenue
Vernon, CA 90058
Subject: FTB Agreement # C0600239
In an effort to streamline the way the State of California conducts business, we are in the process of
standardizing current contracting procedures and formats. The first step toward achieving this goal is to
eliminate unnecessary duplication of agreement language and documentation. You will note that in the
new format of the Standard Agreement (STD 213), a copy of the General Terms and Conditions (GTC) is
not provided. The GTC's are available on the Internet at www.ols.dgs.ca.gov/Standard+Language/default.htm
and may be downloaded and printed for your files. However, if you do not have Internet capabilities, you
may request a hard copy by contacting the person listed in the paragraph below.
This Agreement cannot be considered binding on either party until approved by appropriate authorized
State agencies. No services should be provided prior to approval, as the State is not obligated to make
any payments on any Agreement prior to final approval. Expeditious handling of this Agreement is
appreciated. For inquiries regarding this Agreement, please call Tracey Mollow at (916) 845-5193.
Complete the following item(s) and return to TRACEY MOLLOW @ the address stated above
within ASAP:
Standard Agreement STD 213. Sign the first page of the standard agreement
package (STD 213) and the additional STD 213 enclosed and return for
further processing.
Payee Data Record (STD 204). No payment can be made unless this form is completed
and returned.
Contractor Certification Clauses (CCC). The CCC package contains clauses and conditions
that may apply to your Agreement and to person(s) doing business with the State of
California. The CCC will be kept on file in a central location and must be renewed every
three (3) years and updated as changes occur. It is available on the Internet at
htto:I/www.ols.dgs.ca.govlStandard+Language/default.htm . Please sign and return the first
page of the current CCC. Failure to do so will prohibit the State of California from doing
business with your company.
Confidentiality Statement, FTB 7904.
X The attached approved Agreement is for your records. You are now authorized to provide
the agreed upon services.
TRACEY M L W
Contract A mi strator
Attachment(s)
, IWTeW W'3`'q/0
CITY ATTORNEY'S OFFICE
INTER -DEPARTMENT MEMORANDUM
DATE: March 13, 2007
TO: Eric T. Fresch, Acting City Administrato
FROM: Jeff A. Harrison, Acting City Attorney
RE: Agreement No. C0600239 with Franchise Tax Board for
Participation in the Local Government Sharing Program
(AB63)
�2-1 �
Dear Eric:
I recommend the City enter into an agreement with the Franchise Tax
Board implementing the City's participation in the Local Government
Sharing Program (the "Program") that was approved by the City
Council on December 13, 2006. Two duplicate original agreements are
enclosed. The cost to the City is $500.00.
I further recommend that you be authorized to execute the agreement
and any other document necessary to implement the City's
participation in the Program, and the Acting City Attorney be
authorized to prepare the appropriate resolution.
The Franchise Tax Board is requesting the documents be returned to
them no later than March 20, 2007.
I look forward to discussing this matter with you at your earliest
convenience.
13-0-7
JH:jl /
Attachments ��