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HomeMy WebLinkAboutRES-24-337RESOLUTION NO.24-337 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an agreement between the City of Beaumont, and TransTax Advisors, of Savannah, Georgia, to apply for available Federal Tax Credits for the Municipal Transit use of CNG fuel in an amount up to $300,000.00. The meeting at which this resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 17th day of December, 2024. s® Omo ft 1e1o1 01( U I� - Mayor Roy West - ®// Trans -fax Ad%ris®rs, LLC 1. CITY OF BEAUMONT, TEXAS(" CLIENT") INFORMATION Full legal business name: City of Beaumont, Texas Type of entity and jurisdiction of formation: Texas Mailing Address of Client: P.O. Box 3827 Beaumont, Texas 77704 Telephone Number of Client (general): 409-880-3100 Facsimile number of Client (general): 409-880-3110 Designated Personal Contact for Client: Demi Engman, Director of Planning & Community Development Telephone Number of Personal Contact: 409-785-4750 Email address of Personal contact(s): demi.engman@beaumonttexas.gov 2. TRANSTAX ADVISORS, LLC ("TransTax") INFORMATION Full legal business name: TransTax Advisors, LLC Designated Personal Contact: Brett Duvall, President Telephone Number of Personal Contact: 1-404-426-0645 Email address: brettduvallgtranstaxadvisor.com 3. EFFECTIVE DATE This Contract shall be in effect on the date ("Effective Date") that CLIENT and TransTax ("the Parties") sign this Contract and shall run for the period provided in Subsection 6, entitled "TERM". 4. PURPOSE OF CONTRACT Pursuant to the terms of this Contract, TransTax will provide strategies, solutions, and services for CLIENT's complex tax issues related to its operations in the United States. TransTax will review CLIENT's business documents and Federal and state tax filings (including support), and any accompanying correspondence to identify any potential tax savings, credits, or refunds (occasionally referred to as "Opportunities") throughout the duration of this Contract. TransTax 1 of 7 /// Trans'!'ax Adv6s®rs, LLC will perform these services in good, professional, and workmanlike manner, complying with all applicable laws, statutes, ordinances, codes, rules and regulations. TransTax will provide this service both retrospectively and prospectively for the term(s) provided in the Section entitled "TERM; RENEWALS AND TRANSITION." 5. LIMITATIONS OF ENGAGEMENT; NECESSARY THIRD PARTIES TransTax will be fully responsible for any necessary third -party representation or services. Should it be necessary for CLIENT to have representation before the Internal Revenue Service ("IRS") or state tax authorities, TransTax may, in its discretion, retain the services of a third party to represent CLIENT. If other professional services are required for TransTax to meet its obligations under this Contract, TransTax may engage such professional services as is necessary for it to meets its obligations under this contract. TransTax is fully responsible for all expenses arising from any necessary representation and professional services. TransTax's engagement with a necessary third -party pursuant to the terms of this section is subject to the approval of CLIENT, provided that CLIENT agrees that its approval of necessary representation and/or professional services is not unreasonably withheld or subject to unreasonable conditions. CLIENT further agrees to not unduly withhold or delay its approval to pursue any claims identified by TransTax pursuant to the Section entitled "SCOPE OF SERVICES; FEES." 6. TERM The Parties agree to a contract term of three (3) years beginning at the Effective Date. 7. DOCUMENTS; DATA FILES To assist TransTax in its review of potential tax reductions and/or refunds, CLIENT agrees to provide TransTax electronic data files necessary to identify and locate records for review, including, but without limitation, general ledgers, accounts payable data, database files, or spreadsheets. TransTax will assist CLIENT's personnel in determining the exact form for production. CLIENT acknowledges that TransTax shall have all necessary access and assistance with obtaining data necessary for TransTax to meet its obligations under this Contract. CLIENT acknowledges that TransTax's data extraction tools are proprietary, and CLIENT assumes no rights with respect to the data extraction tools. 2 of 7 ®// TransTax 6-6c1®sisors, LLC TransTax agrees to assume all costs of preparing, modifying, or transmitting the data. Relevant data shall be transferred from CLIENT to TransTax through a mutually approved secure transfer site. CLIENT explicitly agrees not to transmit personally identifiable information to TransTax before entering a written agreement with TransTax regarding the date, time, and manner of transmission; identifying the types of personally identifiable information to be transferred to and kept by TransTax; and, an explicit representation by CLIENT that it is not restricted from transferring personally identifiable information. TransTax hereby agrees to provide the CLIENT with all the necessary information and documents in connection with TransTax and the third parties referred to in Section entitled "LIMITATIONS OF ENGAGEMENT; NECESSARY THIRD PARTIES" that the CLIENT may require from time to time to comply with the applicable laws and regulations. 8. SCOPE OF SERVICES; FEES TransTax will review CLIENT's documents and electronic data to develop and propose Opportunities that are available to CLIENT and within the scope of this Contract. CLIENT agrees to provide its approval in a timely manner without undue delay. Upon receiving CLIENT's approval, TransTax will initiate all approved Opportunities. Events and transactions where Opportunities may exist include the following: A. State and Federal Fuel Tax — TransTax will identify any tax savings, credits, or refunds associated with CLIENT's fuel transactions open under the statute at the time of initial filing ("Retrospective Opportunities"). TransTax will also assist CLIENT with identifying prospective tax savings, credits, or refunds ("Prospective Opportunities") on a continuing basis. TransTax will conduct a review of all possible Prospective Opportunities and will inform CLIENT of the potential opportunities and risks, if any. CLIENT will identify which opportunities it wishes to pursue, if any, and TransTax will assist CLIENT with the development of an internal strategy to facilitate inter -office coordination necessary to pursue Opportunities. TransTax will prepare all claims for refunds and/or appeals for submission to the Internal Revenue Service ("IRS") or other tax agencies. If TransTax obtains any retrospective tax savings, credits, or refunds, CLIENT agrees to pay TransTax and hereby transfers, conveys, and assigns to TransTax all rights, title, interest, and ownership in and to twenty-five 3 of 7 /// TransTax �aeie®isors, LLC percent (25%) of any excise tax savings, credits, or refunds from taxing authorities and/or vendors. This amount is inclusive of interest and any penalties that CLIENT receives from taxing authorities and/or vendors. For any prospective tax savings obtained by CLIENT as a result of any strategies created by TransTax, in consideration and compensation of such service, CLIENT agrees to pay TransTax twenty percent (20%) of the associated prospective tax savings obtained throughout the term of the Contract. CLIENT and TransTax agree the prospective tax savings are to be calculated as the difference between tax liability absent TransTax's recommended tax strategies and CLIENT's tax liability when incorporating TransTax's recommended tax strategies. For both Retrospective Opportunities and Prospective Opportunities, CLIENT agrees that the calculation for payment(s) is based on the gross amounts attributable to TransTax and shall not be reduced by any existing or subsequent liabilities to CLIENT. 9. Payment Due and Late Fees TransTax will submit to CLIENT invoices for services rendered at the rate provided in the Section entitled "SCOPE OF SERVICES; FEES" when CLIENT has received payment, refund, or credit from the IRS or other tax authorities. For all fees, CLIENT agrees it shall pay TransTax within thirty (30) days of receipt of an invoice related to any tax savings, credits, or refunds (including interest) that result from a claim. CLIENT further agrees that interest in the amount of one and one-half percent (1.5%) per month or the allowable rate by law will apply to any past due fees. CLIENT shall assume all costs associated with collection of fees that are more than sixty (60) days past due, including, but not limited to, any legal fees or payments to any collection agency. Payments that in dispute shall not be considered past due until the dispute is resolved. All payments under this Contract shall be made by wire transfer, ACH, or by check pursuant to invoicing instructions provided by TransTax. Payments are to be transferred by the invoiced due date. If such date is not a business day, payment is due on the next business day. 4 of 7 ®// 'iransTax Acl�sisors, LL.0 Without limitation, TransTax is entitled to payment pursuant to the terms provided in the Section entitled "SCOPE OF SERVICES; FEES" if CLIENT obtains and enjoys any tax savings, credits, or refunds by using TransTax's work product and/or proprietary information. 10. NOTICE; FORM Any notice to be given under this Contract shall be in writing and delivered by electronic mail, personal delivery, hand delivery by courier, by overnight reputable international courier, or by placing such in the United States certified mail, return receipt requested. Notices to CLIENT and TransTax will be sent to the respective addresses provided on the first page of this Contract. 11. CONFIDENTIALITY The Parties agree the existence and the terms of this Contract and any oral or written information exchanged between the Parties in connection with the preparation and performance of this Contract are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that is necessary to effectuate performance under this Contract. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deemed disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Contract. CLIENT further agrees that TransTax's work product, including procedures, techniques, and methodology, constitutes proprietary information. CLIENT agrees to maintain TransTax's work product with due care and confidentiality and to not disclose such information to any third parry absent written approval by TransTax. This section shall survive the termination of this Contract for any reason. 12. ENTIRE AGREEMENT & SUCCESSORS IN INTEREST This Contract contains the entire agreement between CLIENT and TransTax regarding the matters set forth herein and shall be binding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, successors, and assigns of each. 5 of 7 /// Trar�sTax ^civisors, LLB 13. REPRESENTATION OF COMPREHENSION OF DOCUMENT In entering this Contract, CLIENT represents that the terms of this Contract have been completely read and understood by its authorized representative, and accordingly those terms are fully understood and voluntarily accepted. 14. GOVERNING LAW; JURISDICTION This Contract shall be construed and interpreted in accordance with the laws of the State of Texas, and in no event will this document be construed in a manner inconsistent with Texas Law. The Parties hereby submit to the jurisdiction of, and waive any venue objections against, the United States District Court for the Eastern District of Texas in any litigation arising out of this Contract. 15. MODIFICATION This Contract may not be changed, altered, or modified except in writing signed by all necessary Parties. This Contract may not be discharged except by performance in accordance with its terms or by a written signed agreement by all the necessary Parties. 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES All representations and warranties set forth in this Contract shall be deemed continuing and shall survive the effective date. 17. EFFECTIVENESS This Contract shall become effective following the execution by the individuals designated below. 18. SEVERABILITY OF CLAUSES If any sentence, phrase, provision, portion, or clause of this Contract should at any time be declared or adjudged invalid, unlawful, unconstitutional, or unenforceable for any reason, said adjudication or declaration shall in no manner or way affect the other sentences, phrases, provisions, portions, or clauses of this Contract, and all remaining portions shall remain in full force and effect as if the portion adjudged or declared invalid was not originally a part thereof. 6 of 7 /// Trar�sTax Advisors, LLC AGREED TO BY.- TRANSTAX ADVISORS, LLC W. Brett Duvall, Esq. President CITY OF BEAUMONT, TEXAS NAME Sharae Reed TITLE City Attorney 7 of 7 This day of December, 2024 This day of December, 2024 000000 R-Lw 1. CITY OF BEAUMONT, TEXAS(" CLIENT") INFORMATION Full legal business name: City of Beaumont'. Texas Type of entity and jurisdiction of formation: Texas Mailing Address of Client: Telephone Number- of Client (general): Facsimile number of Client (general): Designated Personal Contactfor Client: Telephone Number of Personal Contact: Email address of Personal contact(s): 2. TRANSTAX ADVISORS, LLC ("TransTax") INFORMATION Full legal business name: TransTax Advisors, LLC Designated Personal Contact: Brett Duvall, President Telephone Number of Personal Contact: 1-404-426-0645 Email address: brettduvall(c�transtaxadvisor.com 3. EFFECTIVE DATE This Contract shall be in effect on the date ("Effective Date") that CLIENT and TransTax ("the Parties") sign this Contract and shall run for period provided in Subsection 6, entitled "TERM". 4. PURPOSE OF CONTRACT Pursuant to the terms of this Contract, TransTax will provide strategies, solutions, and services for CLIENT's'complex tax issues related to its operations in the United States. TransTax will review CLIENT's business documents and Federal and state tax filings (including support), and any accompanying correspondence to identify any potential tax savings, credits, or refunds (occasionally referred to as "Opportunities") throughout the duration of this Contract. TransTax will perform these services in good, professional, and workmanlike manner, complying with all 1 of 7 � a B(1140000 applicable laws, statutes, ordinances, codes, rules and regulations. TransTax will provide this service both retrospectively and prospectively for the terin(s) provided in the Section entitled "TERM; RENEWALS AND TRANSITION." S. LIMITATIONS OF ENGAGEMENT; _NECESSARY_THIRD PARTIES; TransTax will be fully responsible for any necessary third -party representation or services. Should it be necessary for CLIENT to have representation before the Internal Revenue Service ("IRS") or state tax authorities, TransTax may, in its discretion, retain the services of a third party to represent CLIENT. If other professional services are required for TransTax to meet its obligations under this Contract, TransTax may engage such professional services as is necessary for it to meets its obligations under this contract. TransTax is fully responsible for all expenses arising from any necessary representation and professional services. TransTax's engagement with a necessary third -party pursuant to the terms of this section is subject to the approval of CLIENT, provided that CLIENT agrees that its approval of necessary representation and/or professional services is not unreasonably withheld or subjection to unreasonable conditions. CLIENT further agrees to not unduly withhold or delay its approval to pursue any claims identified by TransTax pursuant to the Section entitled "SCOPE OF SERVICES; FEES." 6. TERM The Parties agree to a contract terra of three (3) years beginning at the Effective Date. 7. DOCUMENTS; DATA FILES To assist TransTax in its review of potential tax reductions and/or refunds, CLIENT agrees to provide TransTax electronic data files necessary to identify and locate records for review, including but without limitation, general ledgers, accounts payable data, database files, or spreadsheets. TransTax will assist CLIENT's personnel in determining the exact forma for production. CLIENT acknowledges that TransTax shall have all necessary access and assistance with obtaining data necessary for TransTax to meet its obligations under this Contract. CLIENT acknowledges that TransTax's data extraction tools are proprietary, and CLIENT assumes no rights with respect to the data extraction tools. TransTax agrees to assume all costs of preparing, modifying, or transmitting the data. Relevant data shall be transferred from CLIENT to TransTax through a mutually approved secure transfer 2of7 000000 t � 9-K- site. CLIENT explicitly agrees not to transmit personally identifiable information to TransTax before entering a written agreement with TransTax regarding the date, time, and manner of transmission; identifying the types of personally identifiable information to be transferred to and kept by TransTax; and, an explicit representation by CLIENT that it is not restricted from transferring personally identifiable information. TransTax hereby agrees to provide the CLIENT with all the necessary information and documents in comiection with TransTax and the third parties referred to in Section entitled "LIMITATIONS OF ENGAGEMENT; NECESSARY THIRD PARTIES" that the CLIENT may require from tune to time to comply with the applicable laws and regulations. 8. SCOPE OF SERVXCES;_FEES TransTax will review CLIENT's dociunents and electronic data to develop and propose Opportunities that are available to CLIENT and within the scope of this Contract. CLIENT agrees to provide its approval in a timely manner without undue delay, Upon receiving CLIENT's approval, TransTax will initiate all approved Opportunities. Events and transactions where Opportunities may exist include the following: A. State and Federal Fuel Tax — TransTax will identify any tax savings, credits, or refunds associated with CLIENT's fuel transactions open under statute at the time of initial filing ("Retrospective Opportunities"). TransTax will also assist CLIENT with identifying prospective tax savings, credits, or refunds ("Prospective Opportunities") on a continuing basis. TransTax will conduct a review of all possible Prospective Opportunities and will inform CLIENT of the potential opportunities and risks, if any. CLIENT will identify which opportunities it wishes to pursue, if any, and TransTax will assist CLIENT with the development of an internal strategy to facilitate inter -office coordination necessary to pursue Opportunities. TransTax will prepare all claims for refunds and/or appeals for submission to the Internal Revenue Service ("IRS") or other tax agencies. If TransTax obtains any retrospective tax savings, credits, or refunds, CLIENT agrees to pay TrausTax and hereby transfers, conveys, and assigns to TransTax all rights, title, interest, and ownership in and to twenty-five percent (25%) of any excise tax savings, credits, or refunds from taxing 3 of 7 s 0—E authorities and/or vendors. This amount is inclusive of interest and any penalties that CLIENT receives from taxing authorities and/or vendors. For any prospective tax savings obtained by CLIENT as a result of any strategies created by TransTax, in consideration and compensation of such service, CLIENT agrees to pay TransTax twenty percent (20%) of the associated prospective tax savings obtained throughout the term of the Contract. CLIENT and TransTax agree the prospective tax savings are to be calculated as the difference between tax liability absent TransTax's recommended tax strategies and CLIENT's tax liability when incorporating TransTax's recommended tax strategies. For both Retrospective Opportunities and Prospective Opportunities, CLIENT agrees that the calculation for payment(s) is based on the gross amounts attributable to TransTax and shall not be reduced by any existing or subsequent liabilities to CLIENT. 9. Pavinent Due and Late Fees TransTax will submit to CLIENT invoices for services rendered at the rate provided in the Section entitled "SCOPE OF SERVICES; FEES" when CLIENT has received payment, refund, or credit from the IRS or other tax authority. For all fees, CLIENT agrees it shall pay TransTax within thirty (30) days of receipt of an invoice related to any tax savings, credits, or refunds (including interest) that result from a claim. CLIENT further agrees that interest in the amount of one and one-half percent (I.5%) per month will apply to any past due fees. CLIENT shall assume all costs associated with collection of fees that are more than sixty (60) days past due, including, but not limited to, any legal fees or payments to any collection agency. All payments under this Contract shall be made by wire transfer, ACH, or by check pursuant to invoicing instructions provided by TransTax. Payments are to be transferred by the invoiced due date. If such date is not a business day, payment is due on the next business day. Without limitation, TransTax is entitled to payment pursuant to the terms provided in the Section entitled "SCOPE OF SERVICES; FEES" if CLIENT obtains and enjoys any tax savings, credits, or refunds by using TransTax's work product acid/or proprietary information. 4of7 10. NOTICE; FORM Any notice to be given under this Contract shall be in writing and delivered by electronic mail, personal delivery, hand delivery by courier, by overnight reputable international courier, or by placing such in the United States certified mail, return receipt requested. Notices to CLIENT and TransTax will be sent to the respective addresses provided on the first page of this Contract. 11. CONFIDENTIALITY The Parties agree the existence and the terns of this Contract and any oral or written information exchanged between the Parties in connection with the preparation and performance this Contract are regarded as confidential information. Each Party shall maintain confidentiality of all such confidential information, and without obtaining the written consent of the other Party, it shall not disclose any relevant confidential information to any third parties, except for the information that is necessary to effectuate performance under this Contract. Disclosure of any confidential information by the staff members or agencies hired by any Party shall be deerned disclosure of such confidential information by such Party, which Party shall be held liable for breach of this Contract. CLIENT further agrees that TransTax's work product, including procedures, techniques, and methodology, constitutes proprietary information. CLIENT agrees to maintain TransTax's work product with due care and confidentiality and to not disclose such information to any third party absent written approval by TransTax. This section shall survive the termination of this Contract for any reason. 12. ENTIRE AGREEMENT & SUCCESSORS IN INTEREST This Contract contains the entire agreement between CLIENT and TransTax regarding the matters set forth herein and shall be minding upon and inure to the benefit of the executors, administrators, personal representatives, heirs, successors, and assigns of each. 13. REPRESENTATION OF COMPREHENSION OF DOCUMENT In entering this Contract, CLIENT represents that the terms of this Contract have been completely read and understood by its authorized representative, and accordingly those terms are fully understood and voluntarily accepted. 5 of 7 14. GOVERNING LAW; JURISDICTION This Contract shall be construed and interpreted in accordance with the laws of the State of Georgia, and in no event will this document be construed in a manner inconsistent with Georgia Law, The Parties hereby submit to the jurisdiction of, and waive any venue objections against, the United States District Court for the Northern District of Georgia in any litigation arising out of this Contract. 15. CONSTRUCTION CLIENT agrees that the terms and conditions of this Contract are the result of the negotiations between the Parties and/or their counsel, and that this Contract shall not be construed in favor of or against either CLIENT or TransTax. 16. MODIFICATION This Contract may not be changed, altered, or modified except in writing signed by all necessary parties. This Contract may not be discharged except by performance in accordance with its terms or by a writing signed by all the necessary panties. 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES All representations and warranties set forth in this Contract shall be deemed continuing and shall survive the effective date. 18. EFFECTIVENESS This Contract shall become effective following the execution by the individuals designated below. 19. SEVERAI ILITY OF CLAUSES If any sentence, phrase, provision, portion, or clause of this Contract should at any time be declared or adjudged invalid, unlawfirl, unconstitutional, or unenforceable for any reason, said adjudication or declaration shall in no manner or way affect the other sentences, phrases, provisions, portions, or clauses of this Contract, and all remaining portions shall remain in full force and effect as if the portion adjudged or declared invalid was not originally a part thereof. 6of7 AGREED TO B K TRANSTAX ADVISORS, LLC W. Brett Duvall, Esq. President CITY Or BEA ONT, TEXAS NAME TITLE P 7 of 7 This 18 day of December, 2024 This 19 day of December, 2024