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HomeMy WebLinkAboutIII (D) Approval and Authorization for Letter of Agreement for Recovery of Sales and Use Taxes with Municipal Tax Consulting and Management Agenda 12-04-2001 Item III D "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" MAYOR• .OMMISSIONER Ocoee S.SCOTT VANDERGRIFT O\ �: o CITY OF OCOEE DAcommissioNERs NNY HOWELL ISO N. LAKESHORE DRIVE v a n SCOTTANDERSON n G OCoee,FLORIDA5 31761-2258 RUSTY NDERS N '�4A �� (407)905-3100 NANCY J.PARKER f*OF GOO N` — CI n MANAGER MEMORANDUM JIM GLEASON To The Honorable Mayor and City Commissioners From : Wanda Horton, Finance Director-_z:71 71 Date: November 26,2001 Re Letter of Agreement for recovery of Sales and Use Taxes- Municipal Tax Consulting and Management Municipal Tax Consulting and Management (MTCM) is a tax consulting firm specializing in the recovery of unusual and "hidden" taxes paid by cities. These "hidden" taxes include use taxes, Federal and State excise taxes and local option sales taxes paid by municipalities indirectly during capital construction by contracted vendors. Any taxes currently collected by the City are exempt from this agreement. The service provided by MTCM is risk free and they claim to be the only firm performing this particular service and the extensive ongoing research that makes the service possible. Services are performed on a contingency fee basis. The firm would be paid one third of the gross recovery amount. MTCM performs the recovery process but the checks arc sent directly to the City. The City remits the amount due to the firm within ten days of receipt of a recovery check. The recovery amounts can range from thousands of dollars to hundreds of thousands of dollars. The agreement is for review of previous years and the current fiscal year within the past three to five years. The attached agreement has been reviewed by the city attorney. Action Requested Staff recommends approval of the services to be provided by Municipal Tax Consulting and Management and the Mayor and City Clerk be authorized to execute the cont�ct. Ills Power N1 �1\o\ © MUNICIPAL TAX CONSULTING & MANAGEMENT I& Oil A division of Tax Research & Recovery, Inc. LETTER OF AGREEMENT (CONTRACT FOR SERVICE) Municipal Tax Consulting and Management, (The "Firm") offers a service to recover sales and use taxes paid by and clue to the City of Ocoee (The "Client"). The Client hereby contracts with the Finn to file for said tax recoveries for the previous years and through end of the calendar year signed. Annual renewals may be offered for Client approval via future renewal letter; provided, however, that the Client shall be under no obligations to renew. Now, whereas the Firm has invested substantial amounts of time, expense and effort in researching the legal and accounting requirements and whereas the Firm has performed anaysis procedures necessary to disclose the recovery and will invest more effort to secure said refunds; the Firm will charge a fee equal to one third (1/3) of the gross recoveries paid to the Client as a result of said filings by the Firm. The Client herein agrees to pay this fee to the Firm within ten (10) days of receipt by the Client of each recovery amount. The tax filing results in recovery refunds and checks made payable to the Client. If the Client does not receive a recovery no fee will be charged. The Client shall not be obligated to bring any legal actions to recover said taxes or to incur any cost or expense except for the foresaid contingency fee. This Agreement may be terminated by the Client upon written notice to the Firm if the Firm fails to devote the above referenced time, effort and necessary analysis necessary to disclose the recovery and file for refunds; provided, however, that any such termination shall not affect the obligation of the Client to pay the contingency fee with respect to any recovers received by Client. Client acknowledges that this Agreement and all records with respect in possession of the Firm hereto are not public records under the Florida Public Records Law and will not be shared. This Agreement constitutes the entire agreement of the parties with respect to the matters addressed herein. This Agreement will he governed and construed under the laws of the State of Florida and venue shall be in Orange County, FL. The client recognizes that the information concerning die me1Kodo ogy, eoistc' cnccp; resulting in recoveries will not be disseminated or shared with any other party without prior written consent from the Firm except to the extent required by the Florida Public Records Law. Exemption from this will be granted in the event a legal Freedom of Information request to the Client. The above stated terms and conditions are accepted by the following officials of the respective parties, if signed by the Client and returned within 90 days of November 15, 2001: HEADQUARTERS: 1728 Main Street• Columbia,SC 29201—OlFRAtIONS: 2201 Boundary Street• Beaufort,SC 29902 PHONE: 1-800-249-4616 • FAX: 1-800-334-2789• EMAIL: recovery@municipaltaxconsuldng.org •WEB: municipaltaxconsuldng.org R MUNICIPAL TAX CONSULTING & MANAGEMENT Q_ R A division of Tax Research dr Recovery, Inc. FIRM: CLIENT: MUNICIPAL TAX CONSULTING & CITY OF OCOEE,FLORIDA MANAGEMENT,a Division of Tax Research&Recoverying, In, By: _ _ '9i _ By:Edgar . Ingli'.I es .ent S. Scott Vandergrift.Mayor // ATTEST: Jean Grafton,City Clerk (SEAL) FOR USE AND RELIANCE ONLY BY APPROVED BY PHE OCOEE CITY THE CITY OF OCOEE,FLORIDA; COMMISSION ATA MEETING APPROVED AS TO FORM AND HELD ON .20 LEGALITY THIS day of UNDER AGENDA ITEM NO. 20 FOLEY & LARDNER By: City Attorney HEADQOARrERs: 1728 Main Street• Columbia,SC 29201 —OPERATIONS: 2201 Boundary Street• Beaufort,SC 29902 PHONE: 1-800-249-4616•FAX: 1-800-334-2789• EMAIL: recovery@municipaltaxconsuhing.org • WEB: municipaltaxconsulting,org MUNICIPAL TAX T R CONSULTING & MANAGEMENT �I Uiz�iciwr a�Ya.r Rccenreb ar Reeozaiy, Inc. CS RECOVERING HIDDEN TAXES NATION—WIDE SINCE 1994 The tax environment today is more complex than ever before.There are many prepaid and hidden taxes paid by municipalities in purchases. Over 95%of our existing 1,100 clients stated in the initial inter• view they were convinced we could not benefit them. Our services have already returned over $8,000,000.00 to those same clients. Why? Because our service is risk free and we are the only firm performing these services and the extensive, ongoing research that makes them possible. What about taxes collected by staff such as property and income tax? Any taxes currently recovered by your staff, municipal league or other agents are explicitly exempted from your contract with us. Why are we the sole source vendor? 1) Your auditor cannot perform these services due to the audit independence requirement. An auditor simply cannot create a revenue and then remain independent in certifying the legiti- macy of that revenue. 2) Bar Association rules do not allow an attorney to recover any prepaid tax on a contingency fee basis. 3) There is no other firm that has spent the time and resources to research, document and make feasible the entire system of recoveries we can deliver. Why is this proposal risk-free? Because we work on a contingency fee basis to generate substantial new revenues for our clients by recovering taxes paid by various agencies. We have the experience to prove the tax amounts through a series of recovery processes. Our staff will complete the recovery processes and have recovery checks sent directly to you. If you do not receive a recovery, you do not pay us. We do not use time and mate- rial billing which would involve a tremendous cost to you with no guarantee of any recovery. Our costs are spread over an existing group of over 1,100 clients and no other firm has accomplished this. What is the staff time required? Less than 15 minutes. We will only ask for two printed computer reports. Our staff will do the research, data recovery and perform the audits. From'. 800 334-2789 To: '1 4 0 7-6563501' Page_3/5 Data 11/27/2001 1.51.08 PM TIO ;1'iUN!ClP:U "i'\X LONSUillNc, & M.tNAGE%IENT 13; A d'[t I: 1;r i:7.t Refsciich z /t i6;,V. riC. RE: Area Client List Please feel free to contact the following clients: City Telephone Just a Few of Our Existing Clients: Flagler Beach.F.. Ms Sandra Poises 904-517--2000 Avon Park,FL Ms.Renee Green 863-452-4400 Wauchula,FI. Mr. James Braddock 863-773-3535 Labelle,FT. Ms. Delia Vasquez 863-675-2872 Winter Garden,FL Mr. Mike Bolllrocier 407-656-4111 'alm Springs, FL Ms_ Rebecca Morse 561-965-4013 South Bay,FL Mr. Ted Byrd 561-996-6751 dmatilla,FL Mr. Tim Scohie 352-669-3125 Davenport.FL Ms. Paula Munroe 863-422-44Iii Wilton Manors, :L Mr. Allen Feinhure 954-390--2.00 Mascotte,FL Ms.Marion DeAnnuntis 352-429-3341 Baldwin. FL Ms. Tula Till 904-266-4221 Key Colony Beach,FL Ms. Loreen Fernandez 305-289-1212 Indian Rocks Beach, H I. Ms.Mary Karav anes 727-595_2517 o'ellsmere, H. Mr harry Napier Sol-F71-1616 1igh Springs, FL Mr. Bob Phillips 904-54-1416 Macc;enny.FT, Ms. Christne Jouster 904-- 59-6261 dahokee,FL Ms. Rita Caner 561-924-5534 Bowling Green,FL Ms. Pam Northup 863-375-2255 Wddwood,FL Mr. Joseph Jacobs 352-330-1330 Kenneth City,FL Ms.Nancy Redman 727-544-6655 Crescent City,FL Mr. Carl Tankersley 904-698-2525 Ponce Inlet. FI. Ms. Cassandra Plissett 904-322-6711 Waldo,FT. Mr Lee Vincent 352-468-1001 Mayo.FT, Ms. Carolyn Livingston 904-294-1551 \iceville,FT. Mr Dan Doucet 850-729-4008 Smells Point,FL Ms Joan Harrow 561-287-2455 T'avenpon,FL Ms_Paula Munroe 863 422-4410 Hilliard,FT. Ms.Lisa Panes 904-F45-3555 Zolfo Springs,FL Mr. Jack Logan 863-735-0405 Jun/lee,FL Mr. Matthew Brock 863=19-3'.00 Sebastian, PI Mr. Tel Moo e 561 589-533f1 • u This fax was sent with GFI s FAXmaker FAX Server For more information,visitrhttp llwww gh coin From: 800334-2789 To: '1407-656-3501' Page 4/5 Date: 11/27/20011:51:09 PM Ant NiCitAI ! v Co'sSt f U'vG & ''M ANAG Emr,N jar SXJJ.j. ., /1 01 7.11 fa ei r,;[i r_lJ bier/r771 , ft. RE: Area Client List (continued) Please feel free to contact the following clients: City Telephone Just a Few of the Recent New Contract Clients: Bartow.FL Mr. DavidBartow 863-534-0100 Belle Isle.FL Ms.Belinca Bateman 407451-7730 Coconut Creek_FL Ms.Mn Blasi 954-973-6770 ieFuiiak Springs,FL Ms. Sara Bowers 850-592-8500 Fort Meade,FL Mr. Al Minna 863 285-1100 ilialeah Gardens_Fi. Mr.Marcos Moto 305-558-4114 Crescent City,FL Mr. Carl Tankersley 904-698-3470 Edgewater,RJ. Mr. !Chinch Hooper 904-424-2400 lorida City.FL Mr Ben-Asher 305-247-8221 Venice,FL Mr. Mike McPhail 941—=86-2626 Neptune Reach,FL Mr. Richard A Linn 904170-2400 Palm Beach,FL Mr.Peter B.Elwell 561-838-5416 Kenneth City.FL Mr. William B. Smith 7 2 7-544-6 655 Tallahassee Housing Fl Mrs_Claudette Cromanie 850-385-6126 Montmello, FL Mr. John 5_Jones,Jr. 850-342-0153 71neIlas Park,FL Mr. leery Mudd 727-541-0700 Valparaiso,F'I. Ms. Tammy Johnson 850-_9-5402 Opa-Locka.FL Mr bewail 1. Daughtrey 305-688-4611 Delray Beach. FL Mr_David W. Schmidt 561-243-7000 White.Springs Fl Mr_Robert Townsend 904-397-2310 Sunny Isles Beach,FL .Mr. Christopher Russo 305-947-0506 West Melbourne,FL Mr.Mark Ryan 321-727-7700 Key Biscayne,FL Mr. C. Samuel Kissinger 305-265-5511 Sewall, FL Mr. Robert M Wicnkc 561 287-245.5 This fax was sent with GFI's FAXmaker FAX Server- For more information, visit http//www gfi.corn