HomeMy WebLinkAboutRES 17-08RESOLUTION NO. 17-08
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, AUTHORIZING THE CITY OF APACHE
JUNCTION TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT
WITH THE CITY OF PHOENIX, ARIZONA, FOR USE OF THE PHOENIX
BUSINESS INTELLIGENCE SYSTEM.
WHEREAS,in May 2012,former Arizona Governor Jan Brewer
established a Transaction Privilege Tax Simplification Task Force;
and
WHEREAS, this task force recommended change to how both state
and local sales taxes are administered in Arizona; and
WHEREAS, these changes were adopted in 2013 under HB2111 with
an effective date of January 1,2015 but not implemented until
January 1, 2017; and
WHEREAS, the city is responsible for paying a permanent annual
charge to the Arizona Department of Revenue for costs related to the
administration and collection of our sales and use tax at a rate of
$75,041 for FY 15-16, $76,806 in FY 16-17 and $78,235 in FY 17-18;
and
WHEREAS, the City of Phoenix has offered to make available to
Arizona municipalities a Phoenix hosted and developed municipal tax
dashboard program that will provide reports and other data needed by
the City of Apache Junction for ongoing tax payer information and
activities.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF APACHE JUNCTION, ARIZONA, AS FOLLOWS:
1)The mayor and city council approves the form of the
intergovernmental agreement between the City of Apache Junction
and the City of Phoenix for the Phoenix Business Intelligence
System as set forth in Attachment A and the mayor is hereby
authorized to sign the agreement on behalf of the city.
2)The city manager and/or his designee is authorized and directed
to take all steps necessary to carry out the purpose and intent
of this resolution and to fulfill all the duties required under
the agreement.
RESOLUTION NO.17-08
PAGE 1 OF 2
PASSED AND ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
APACHE JUNCTION, ARIZONA, THIS cq/.5,7-DAY OF /441_
2017.
SIGNED AND ATTESTED TO THIS 02151r DAY OF A / 4 4 6 4 , 2017.
JEFIWERDY
Mayor
ATTEST:
KATHLEEN CONNELLY
City Clerk
APPROVED AS TO FORM:
3 i 3 i7
R. JOEL STERN
City Attorney
RESOLUTION NO.17-08
PAGE 2 OF 2
ATTACHMENT A
INTERGOVERNMENTAL AGREEMENT
BETWEEN
THE CITY OF APACHE JUNCTION
AND
THE CITY OF PHOENIX
THIS AGRE:ENT is entered into this day of ,2016,
pursuant to Arizona Revised St. utes (ARS) §11-952, between the CITY of APACHE
JUNCTION acting by and throug its city council and the CITY OF PHOENIX
("PHOENIX"), acting by and through 'ts City Council.ARS. §42-6001 establishes that
the Arizona Department of Revenue (DO'will collect and administer municipal
privilege, transaction and use taxes ("Taxes"for all Arizona cities and towns.As part
of their administration of the Taxes, DOR shall p evide each city or town access to data
covering the amount of Taxes reported and the amo t of Taxes distributed to that
specific city and town.The purpose of this Agreement •to provide PHOENIX the
mechanism to allow other cities and towns to cooperative!) use the PHOENIX hosted
and developed municipal tax dashboards on the PHOENIX B .iness Intelligence system
("System").
RECITALS
1.City of Apache Junction is authorized by \ .and the
Apache Junction Tax Code Section Sec.-510 to enter into this Agreemen
2.PHOENIX is authorized by City Charter, Chapter 2, Section Aand
PHOENIXçTax Code Sec. 14-510 to enter into this Agreement.
3.This Agreement establishes the structure whereby other cities and towns
access the Syst m. reimburse PHOENIX for its cost of investment in the System, and
share the costs of ft ure continued cooperative use of the System.
THEREFVRE, in consideration of the mutual agreements expressed herein,
it is agreed as follows:
I.SCOPE OF AGREEME
1.System is alreacV in place with dashboards providing municipal tax data
furnished by DOR.
2.Apache Junction agre4 that PHOENIX will maintain and administer the
System.
3.PHOENIX will provide Syst* availability during the hours of 7 a.m. —
5 p.m. (MST), Monday -Friday, excluding holida
4. External users will have a City of P enix Active Directory and VPN
account created for access to the dashboards.Tb requires that external users
have the appropriate background checks from their 1ganizations that meet or
exceed screening requirements established by ARS §4\4401.
5. Support services will be provided via telephone lpline during the hours
of 7 a.m. —5 p.m. (MST), Monday -Friday, excluding holiday Users will report
system errors to Support Services.
02/22/17 2
6. Outages due to scheduled or emergency network, software and/or
hardware mai tenance will be broadcast to authorized users when possible in advance via
email. All reason ble attempts will be made to get the System diagnosed and operational
within twenty-four '?2\4)hours.
7.PHOENN will allow Apache Junction to only use System to access
Apache Junction Taxes data sti lied by DOR.
8. Apache Junction 'Ube billed by and shall reimburse PHOENIX, in
advance of its access to Apache unction data. the sum of 55,000.00 as its share of
the cost for the System.
9. Apache Junction will be bill $900.00 annually as its share for the
operational cost of cooperative use of the Systei which shall be due thirty (30) days
from the invoice date.
10. All activities relating to the provision set forth in this Agreement are to
be coordinated between the municipal tax officers or theirIçsignees.
11.Any failure of the System resulting from negliknce by Apache Junction
is a breach this Agreement.
12. Municipal tax data hosted by PHOENIX and presente •the System is
confidential information and may not be distributed or copied except as pehpitted by
ARS §42-2003. The data sources are furnished by the DOR and are considere
confidential information as defined in ARS §42-2001. PHOENIX does not controNn
02/22/17 3
callnot guarantee the relevance, timeliness, or accuracy of this data and provides no
warra ty, expressed or implied, as to the accuracy, reliability or completeness of
furnished a.Sample data types include, but may not be limited to:
Reports
New License Repo
License Update Report
City Payment Journal
Detail Report
No Money Report
Deduction Report
Description
Demographic information about taxpayers that have
completed a Joint Tax Application with DOR, that have
a location or expect to have taxable activity within that
city/town.
Demographic information for Taxpayers that have had a
ange made to their account and have a location or
ha\e that city's/town's region code on their profile.
Detd ed information about money that is distributed to
the cit town, including the taxpayer, business code and
, period c vered for each distribution.
Detailed i ormation about a taxpayer that has filed a net
zero return r that city/town or has not paid any money
for the return or the period covered by GL Accounting
month.
, Detailed informa 'on about deductions that taxpayers
have taken for acti ity within the city/town.The report
will reflect the dedu ions taken for each location and
! each business code fo the city.
Fund Distribution Report Detailed information ab ut money that is distributed to
the city/town at the Fund evel, including the taxpayer,
location code, business cod and tax period covered for
. each distribution.
13. The System supports five TPT Simplification dashboards listed below:
Centralized
Dashboard Description
This dashboard provides visualization and detailed informati
0 2 /2 2/17 4
PaXment
A nilvsis
Centraliied
License
Analysis
Centralized
Fund Analysis
Centralized
Deduction
Analysis
Centralized No
Payment
Analysis
about money that is distributed to a city/town (City Payment Journal
Detail from DOR) by DOR, including the taxpayer, business code
and tax period covered for each distribution.
This dashboard provides visualization and detailed demographic
information (License Update Report and New License Report from
DOR) for taxpayers that have a taxable location in Arizona.
This dashboard provides visualization and detailed information
bout money that is distributed to a city/town at the Fund Level
(und Distribution Report from DOR), including the taxpayer,
loc:tion code, business code and period covered for each
distri pution.
This da hboard provides visualization and detailed information
about del ctions (Deduction Report from DOR) that taxpayers have
taken on th r returns. The report reflects deductions taken for each
location and :.ch business code by jurisdiction.
This dashboar provides visualization and detailed information
about a) taxpaye that have filed a no activity/zero return b)
taxpayers that have ot filed a return for a location for a city and c)
taxpayers that have ed a return but failed to remit payment. The
source is the No Mone Report from DOR.
14. The System supports the three u r security models listed below. Each
city/town will select one of the three security profi s below for each user that they
designate for System access.Apache Junction ackno edges that each individual user
should be assigned the lowest level of security needed dep nding on their job duties.
Apache Junction also acknowledges that information obtaine rom DOR, and displayed
by Phoenix, is confidential information and may only be disclosed s authorized by
ARS§ 42-2003. Should PHOENIX become aware of unauthorized use disclosure of
confidential information, all users shall be revoked and this agreement shal erminate
upon notice to Apache Junction.
02/22/17 5
Seurity Model Security Model Description
Re ricted This role for management staff allows access to the summary
level data view for financial dashboards (Centralized Payment
Analysis and Centralized Fund Analysis) for the user's
jurisdiction.
Mid -Level\This role for accounting staff allows access to the summary and
detail level data views for financial dashboards (Centralized
Payment Analysis and Centralized Fund Analysis) for the user's
jurisdiction.
Full Access \This role for audit/enforcement/supervisory user staff allows
cess to the summary and detail level data views for financial
da boards (Centralized Fund Analysis) for the user's
juris iction and access to the Centralized Payment Analysis,
CentràI.zed License Analysis, Centralized Deduction Analysis,
and No \ayment Analysis dashboards for any jurisdiction,
subject to\pre-existing limitations outside of this Agreement.
II.MISCELLANEOUS PROVI IONS
1.This Agreement shall bz come effective on the date of execution and
shall continue in full force and effect until i is terminated either by mutual agreement of
the parties or by either party giving the other a least thirty (30) calendar days advance
written notice of termination of the Agreement, w ich notice shall specify the date of
termination.
2.Apache Junction or PHOENIX may can el this Agreement at any time
without penalty or further obligation.No pro -rata refund will e returned.
3.This Agreement is subject to the cancellation pro •ions of ARS
§38-511.
02/22/17 6
4.Cancellation pursuant to either Paragraphs 2 or 3 above shall be
effective v1ken written notice from the chief executive officer of one city/town is received
by the other p y to this Agreement, unless the notice specifies a later time.
5.0 the extent permitted by law, each party (as "Indemnitor") agrees to
indemnify, defend, an hold harmless the other party (as "Indemnitee") from and against
any and all claims, losses,iability, costs, or expenses (including reasonable attorney's
fees) whether direct or indire (hereinafter collectively referred to as "Claims") arising
out of System use, but only to the xtent that such Claims which result in
vicarious/derivative liability to the In emnitee are caused by the act, omission,
negligence, misconduct, or other fault o e Indemnitor, its officers, officials, agents,
employees, or volunteers.
6.Apache Junction and PHOEN both have an intergovernmental
agreement with the State of Arizona whereby each btains taxpayer information from the
State subject to the conditions set forth in the intergov mental agreement, including
those pertaining to confidentiality as defined in ARS §42-001, and that confidential
information may not be disclosed except as provided by statu , ARS §42-2001(B).To
the extent that information being utilized by Apache Junction an hosted by PHOENIX
may have been obtained initially from the State, each agrees to abide y the terms and
conditions set forth in their respective intergovernmental agreements wil the State of
Arizona.
02/22/17 7
writi
7.All notices or demands upon any party to this Agreement shall be in
g and shall be delivered in person or sent by mail addressed as follows:
City of Apache Junction
Attn:
ITY OF PHOENIX
ance Department, Tax Division
At t :Tax Administrator
251 . Washington Street, 3rd Floor
Phoen , AZ 85003
8.This Agree •ent contains the entire understanding between the parties,
and no statements, promises or ind ements made by either party, their agents or
employees that are not contained herein hall be valid or binding.This Agreement may
not be altered except in writing and signed b each party hereto.
9.The failure to exercise any rig , power or privilege under this
Agreement shall not constitute a waiver thereof, nor s all a single or partial exercise
thereof preclude any other or further exercise of that or a right, power or privilege.
10.In the event that any provision, or any po on of any provision, of this
Agreement is held invalid, illegal or unenforceable, such invalidi illegality or
unenforceability shall have no effect on the remaining portion of any e ovision or any
other provision which can be given effect without the invalid provision an
the provisions of this Agreement shall be deemed to be severable.
this end
02/22/17 8
IN TNESS WHEREOF, the parties have executed this Agreement the day and year
first abdve written.
CITY OF PH9ENIX
a municipal corporation
ED ZUERCHE4ity Manager
By
ED ZUERCHER
ATTEST:
City Clerk
APPROVED AS TO FORM AND
WITHIN THE POWER AND
AUTHORITY GRANTED UNDER
THE LAWS OF THE STATE OF
ARIZONA TO THE CITY OF PHOENIX
City Attorney
City Of Apache Junction
a municipal corporation
NAME, City Manager
By
NAME
ATTEST:
City Clerk
AP' 'OVEDAS TO FORM AND
WIT THE POWER AND
AUTHO'TY GRANTED UNDER
THE LA OF THE STATE OF
ARIZONA Te THE CITY OF APACHE
JUNCTION
City Attorney
02/22/17 9
INTERGOVERNMENTAL AGREEMENT
BETWEEN
THE CITY OF APACHE JUNCTION
AND
THE CITY OF PHOENIX
THIS AGREEMENT is entered into this day of , 2017
pursuant to Arizona Revised Statutes (ARS) §11-952, between the CITY of APACHE
JUNCTION acting by and through its city council and the CITY OF PHOENIX
("PHOENIX"),acting by and through its City Council.ARS. §42-6001 establishes that
the Arizona Department of Revenue (DOR) will collect and administer municipal
privilege, transaction and use taxes ("Taxes") for all Arizona cities and towns.As part
of their administration of the Taxes, DOR shall provide each city or town access to data
covering the amount of Taxes reported and the amount of Taxes distributed to that
specific city and town.The purpose of this Agreement is to provide PHOENIX the
mechanism to allow other cities and towns to cooperatively use the PHOENIX hosted
and developed municipal tax dashboards on the PHOENIX Business Intelligence system
("System").
RECITALS
1.City of Apache Junction is authorized by A.R.S. § 11-952(A)and the
Apache Junction Tax Code Section Sec. 8A-510 to enter into this Agreement.
2.PHOENIX is authorized by City Charter, Chapter 2, Section 2, and
PHOENIX Tax Code Sec. 14-510 to enter into this Agreement.
3.This Agreement establishes the structure whereby other cities and towns
access the System, reimburse PHOENIX for its cost of investment in the System, and
share the costs of future continued cooperative use of the System.
THEREFORE, in consideration of the mutual agreements expressed herein,
it is agreed as follows:
I.SCOPE OF AGREEMENT
I.System is already in place with dashboards providing municipal tax data
furnished by DOR.
2.Apache Junction agrees that PHOENIX will maintain and administer the
System.
3.PHOENIX will provide System availability during the hours of 7 a.m. —
5 p.m. (MST), Monday -Friday, excluding holidays.
4. External users will have a City of Phoenix Active Directory and VPN
account created for access to the dashboards.This requires that external users
have the appropriate background checks from their organizations that meet or
exceed screening requirements established by ARS §41-4401.
5. Support services will be provided via telephone helpline during the hours
of 7 a.m. — 5 p.m. (MST), Monday -Friday, excluding holidays. Users will report
system errors to Support Services.
03/29/17 2
6. Outages due to scheduled or emergency network, software and/or
hardware maintenance will be broadcast to authorized users when possible in advance via
email. All reasonable attempts will be made to get the System diagnosed and operational
within twenty-four (24) hours.
7.PHOENIX will allow Apache Junction to only use System to access
Apache Junction Taxes data supplied by DOR.
8. Apache Junction will be billed by and shall reimburse PHOENIX, in
advance of its access to Apache Junction data, the sum of $5,000.00 as its share of
the cost for the System.
9. Apache Junction will be billed $900.00 annually as its share for the
operational cost of cooperative use of the System, which shall be due thirty (30) days
from the invoice date.
10. All activities relating to the provisions set forth in this Agreement are to
be coordinated between the municipal tax officers or their designees.
11.Any failure of the System resulting from negligence by Apache Junction
is a breach this Agreement.
12. Municipal tax data hosted by PHOENIX and presented in the System is
confidential information and may not be distributed or copied except as permitted by
ARS §42-2003. The data sources are furnished by the DOR and are considered
confidential information as defined in ARS §42-2001. PHOENIX does not control and
03/29/17 3
cannot guarantee the relevance, timeliness, or accuracy of this data and provides no
warranty, expressed or implied, as to the accuracy, reliability or completeness of
furnished data.Sample data types include, but may not be limited to:
Reports Description
New License Report Demographic information about taxpayers that have
completed a Joint Tax Application with DOR, that have
a location or expect to have taxable activity within that
city/town.
License Update Report
City Payment Journal
Detail Report
No Money Report
Deduction Report
Fund Distribution Repor
Demographic information for Taxpayers that have had a
change made to their account and have a location or
have that city's/town's region code on their profile.
Detailed information about money that is distributed to
the city/town, including the taxpayer, business code and
period covered for each distribution.
Detailed information about a taxpayer that has filed a net
zero return for that city/town or has not paid any money
for the return for the period covered by GL Accounting
month.
Detailed information about deductions that taxpayers
have taken for activity within the city/town.The report
will reflect the deductions taken for each location and
each business code for the city.
t Detailed information about money that is distributed to
the city/town at the Fund Level, including the taxpayer,
location code,business code and tax period covered for
{ each distribution.
13. The System supports five TPT Simplification dashboards listed below:
i1 ; Dashboard DescriptionI!,
1 eC ntralized .This dashboard provides visualization and detailed information1
03/29/17 4
' Payment
1 Analysis
Centralized
• License
Analy_sis
Centralized
Fund Analysis
Centralized
Deduction
Analysis
Centralized No
Payment
Analysis
about money that is distributed to a city/town (City Payment Journal .
Detail from DOR) by DOR, including the taxpayer, business code
and tax period covered for each distribution.
This dashboard provides visualization and detailed demographic
information (License Update Report and New License Report from
DOR) for taxpayers that have a taxable location in Arizona.
This dashboard provides visualization and detailed information
about money that is distributed to a city/town at the Fund Level
(Fund Distribution Report from DOR), including the taxpayer,
location code, business code and period covered for each
distribution.
This dashboard provides visualization and detailed information
about deductions (Deduction Report from DOR) that taxpayers have
' taken on their returns. The report reflects deductions taken for each
location and each business code by jurisdiction.
This dashboard provides visualization and detailed information
about a) taxpayers that have filed a no activity/zero return b)
taxpayers that have not filed a return for a location for a city and c)
taxpayers that have filed a return but failed to remit payment. The ,
source is the No Money Report from DOR.
14. The System supports the three user security models listed below. Each
city/town will select one of the three security profiles below for each user that they
designate for System access.Apache Junction acknowledges that each individual user
should be assigned the lowest level of security needed depending on their job duties.
Apache Junction also acknowledges that information obtained from DOR, and displayed
by Phoenix, is confidential information and may only be disclosed as authorized by
ARS§ 42-2003. Should PHOENIX become aware of unauthorized use or disclosure of
confidential information, all users shall be revoked and this agreement shall terminate
upon notice to Apache Junction.
03/29/17 5
Security Model Security Model Description
Restricted
Mid -Level
Full Access
This role for management staff allows access to the summary
level data view for financial dashboards (Centralized Payment
• Analysis and Centralized Fund Analysis) for the user's
jurisdiction.
This role for accounting staff allows access to the summary and
detail level data views for financial dashboards (Centralized
Payment Analysis and Centralized Fund Analysis) for the user's
jurisdiction._
This role for audit/enforcement/supervisory user staff allows
access to the summary and detail level data views for financial
dashboards (Centralized Fund Analysis) for the user's
jurisdiction and access to the Centralized Payment Analysis,
Centralized License Analysis, Centralized Deduction Analysis,
and No Payment Analysis dashboards for any jurisdiction,
subject to pre-existing limitations outside of this Agreement.
II.MISCELLANEOUS PROVISIONS
1.This Agreement shall become effective on the date of execution and
shall continue in full force and effect until it is terminated either by mutual agreement of
the parties or by either party giving the other at least thirty (30) calendar days advance
written notice of termination of the Agreement, which notice shall specify the date of
termination.
2.Apache Junction or PHOENIX may cancel this Agreement at any time
without penalty or further obligation.No pro -rata refund will be returned.
3.This Agreement is subject to the cancellation provisions of ARS
§38-511.
03/29/17 6
4.Cancellation pursuant to either Paragraphs 2 or 3 above shall be
effective when written notice from the chief executive officer of one city/town is received
by the other party to this Agreement, unless the notice specifies a later time.
5.To the extent permitted by law, each party (as "Indemnitor") agrees to
indemnify, defend, and hold harmless the other party (as "Indernnitee") from and against
any and all claims, losses, liability, costs, or expenses (including reasonable attorney's
fees) whether direct or indirect (hereinafter collectively referred to as "Claims") arising
out of System use, but only to the extent that such Claims which result in
vicarious/derivative liability to the Indemnitee are caused by the act, omission,
negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents,
employees, or volunteers.
6.Apache Junction and PHOENIX both have an intergovernmental
agreement with the State of Arizona whereby each obtains taxpayer information from the
State subject to the conditions set forth in the intergovernmental agreement,including
those pertaining to confidentiality as defined in ARS §42-2001, and that confidential
information may not be disclosed except as provided by statute, ARS §42-2001(B). To
the extent that information being utilized by Apache Junction and hosted by PHOENIX
may have been obtained initially from the State, each agrees to abide by the terms and
conditions set forth in their respective intergovernmental agreements with the State of
Arizona.
03/29/17 7
7.All notices or demands upon any party to this Agreement shall be in
writing and shall be delivered in person or sent by mail addressed as follows:
City of Apache Junction
Attn:
Kathleen Connelly, City Clerk
300 E. Superstition Boulevard
Apache Junction, AZ 85119
CITY OF PHOENIX
Finance Department, Tax Division
Attn:Tax Administrator
251 W. Washington Street, 3rd Floor
Phoenix, AZ 85003
8.This Agreement contains the entire understanding between the parties,
and no statements, promises or inducements made by either party, their agents or
employees that are not contained herein shall be valid or binding.This Agreement may
not be altered except in writing and signed by each party hereto.
9.The failure to exercise any right, power or privilege under this
Agreement shall not constitute a waiver thereof, nor shall a single or partial exercise
thereof preclude any other or further exercise of that or any right, power or privilege.
10.In the event that any provision, or any portion of any provision, of this
Agreement is held invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall have no effect on the remaining portion of any provision or any
03 / 29 /17 8
other provision which can be given effect without the invalid provision and to this end
the provisions of this Agreement shall be deemed to be severable.
IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.
CITY OF PHOENIX
a municipal corporation
ED ZUERCHER, City Manager
By
ED ZUERCHER
ATTEST:
City Clerk
APPROVED AS TO FORM AND
WITHIN THE POWER AND
AUTHORITY GRANTED UNDER
THE LAWS OF THE STATE OF
ARIZONA TO THE CITY OF PHOENIX
City Attorney
City Of Apache Junction
a municipal corporation
Jeff Serdy, Mayor
By
JEFF SERDY
ATTEST:
City Clerk
APPROVED AS TO FORM AND
WITHIN THE POWER AND
AUTHORITY GRANTED UNDER
THE LAWS OF THE STATE OF
ARIZONA TO THE CITY OF APACHE
JUNCTION
City Attorney
03/29/17 9