CITY OF LYNWOOD REQUEST FOR PROPOSALS For BUSINESS LICENSE SERVICES May 14, 2015 City of Lynwood 11330 Bullis Road Lynwood, California 90262 1
I. INTRODUCTION A. General Information The City of Lynwood is requesting proposals from qualified firms to perform business license services to improve the overall efficiency of the Business License Division operations as well as to increase revenues. There is no expressed or implied obligation for the City of Lynwood to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. Materials submitted by respondents are subject to public inspection under the California Public Records Act (Government Code Sec. 6250 et seq.), unless exempt. To be considered, six (6) copies of a proposal must be received by the City Clerk Office at 11330 Bullis Road, Lynwood, CA 90262, by 5:00 P.M. on May 28, 2015. The City reserves the right to reject any or all proposals submitted. During the evaluation process, the City of Lynwood reserves the right, where it may serve the City s best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At the discretion of the City of Lynwood, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The City reserves the right to retain all proposals submitted and to use any idea(s) in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Lynwood and the selected firm. It is anticipated the selection of a firm will be completed by May 28, 2015. Following the notification of the selected firm, a recommendation and proposed contract will be prepared for review and approval by the City Council at its June 16, 2015 meeting. The City reserves the right to reject any or all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any items or combination of items. B. Term of Engagement It is the intent of the City to contract for the services presented herein for a term of twelve months. 2
II. NATURE OF SERVICES REQUIRED The City of Lynwood desires business license services, which may include one or more of the below services: Business License Software - To allow businesses to complete applications and make payments online. Compliance Management Services (Discovery Services, Audit Services, Collection Services) To bring unlicensed businesses into compliance and ensure that the City receives the accurate amount of revenues. Discovery Services include the identification of businesses that are subjected to local tax ordinances, but are not properly registered and paying the tax to the City. This includes identification, notification, document processing, calculation of taxes owed, and collection of identified amounts. Balancing enforcement with customer service, Discovery Services can ensure compliance with the City s municipal code by finding unregistered businesses operating not only from the brick-and-mortar stores, but also finding home based and out-of-city businesses that would otherwise be overlooked. Audit Services confirm that registered businesses are compliant with local reporting requirements. Audits allow the City to maintain its fiduciary and tax administration responsibilities as well as ensure a level playing field for those businesses that are reporting accurately. Audits also ensure that entities are receiving the accurate amount of revenues to which they are entitled. Audits are conducted on registered businesses to validate accurate reporting of taxation variables such as gross receipts and number of employees. In addition to verifying accurate reporting methods, audits can assist in identifying underground business to business transactions, provide details on complicated new business registrations, defend the City against refund and apportionment claims, and other tax administration duties. A successful Collections Program is a key tool for business license operations. A Collections Program can provide collection services on known delinquencies as well as unknown debt from non-responsive and closed businesses. The result is increased tax and license revenues. Business License Operations Support Service (Compliance Support, Process Improvements) Compliance Support Includes internal compliance reviews by providing lead lists, audit analysis support and other compliance related services. Process Improvements Includes best practices reviews, fee studies, ordinance reviews and updates, form design and other process enhancements that increase revenues and customer service. HdL is currently performing a Business License Fee Analysis, which is expected to be completed by June 30, 2015. 3
Business License Operations Management Includes License Registration Database Management, Renewal Processing, New Account Processing, Payment Posting/Processing, Business Support Center, On-Line Filing and Payment Processing, and Discovery and Audit Services. III. DESCRIPTION OF THE BUSINESS LICENSE DIVISION The Business License Division is responsible for the issuance of all licenses and special permits. The Business License Division works in conjunction with other divisions such as Planning, Building & Safety, and Code Enforcement as well as the LA County Sheriff and Fire Departments to ensure compliance with the City and State requirements. This division is also responsible for the issuance of permits for special events such as carnivals, rummage sales, yard sales, firework stands, Christmas tree sales, and the annual Christmas Parade vendors. The Business License Division consists of 3 full-time Business License Specialists. The Business License Specialists utilize HdL s Prime software to manage the overall business license process (initial applications and renewals). Business License Revenues Per Lynwood Municipal Code Chapter 4, Section 7.3, Business License fees are due as follows (based on business type as established by Ordinance 1041): Annual License: Due on January 1 of each year; delinquent on February 15. Semi-Annual License: Due on January 1 and July 1 of each year; delinquent on February 15 and August 15 of each year. Quarterly License: Due on January 1, April 1, July 1 and October 1; delinquent on the last days of the first month in which the quarterly license is due. Monthly License: Due on the first day of each month; delinquent on the tenth day of the month. Daily License: Due on its effective date; delinquent on the following day. For all delinquent license fee payments, there shall be added a penalty of 10% for each month the license fee remains delinquent until the total penalty equals a sum of 50% greater than the original license fee. With the exception of coin-operated, vending, and washing/drying machines, all business license fees are based on the number of employees, rather than gross receipts. For certain 4
business types, the City imposes a filing fee (per Master Fee Schedule). Per Ordinance 1035, all applications for Business Licenses shall be accompanied with a Fire Clearance Inspection and Fire Clearance Fee. Such Fire Clearance Fees shall be billed and payable with the annual issuance of Licenses and License Fees. The annual fee is based on business type. The City also issues citations for certain violations, which generate related revenue. Per Ordinance 1262, Section 4 (a) and (b), an additional Business License Tax in an amount equal to 50% of the Business License Tax otherwise imposed upon businesses shall be due and in the same manner that the Business License imposed by the Lynwood Municipal Code is due and payable. See table below for a summary of Business License revenue by year by type. FY 2011 FY 2012 FY 2013 FY 2014 Business License Fee $394,602 $444,282 $545,115 $455,501 Business License Filing Fee 10,657 10,235 8,492 8,765 Fire Inspection Fees 433,210 453,288 475,539 473,958 Business License Fines 2,950 6,350 2,550 1,000 Business License Other 128,603 133,044 166,061 146,808 Taxes Total $970,022 $1,047,199 $1,197,944 $1,084,625 Business License Expenditures See table below for a summary of Business License expenditures by year. FY 2011 FY 2012 FY 2013 FY 2014 Salaries and Benefits $305,969 $310,652 $276,751 $291,747 Operational Expenses 41,826 18,891 42,522 33,058 Total $347,795 $329,543 $319,273 $324,805 IV. TIME REQUIREMENTS A. Proposal Calendar The following is a list of key dates up to, and including, the date proposals are to be submitted: Date May 14, 2015 May 28, 2015 June 1-4, 2015 June 16, 2015 Activity Request for Proposal Issued Due Date for Proposals (due by 5:00 p.m.) Oral Interviews (conducted at City s discretion) Contract Awarded by City Council B. Date Services May Commence Services may commence as soon as award of contract is approved by City Council and contract is executed between City and selected firm. 5
V. PROPOSAL REQUIREMENTS A. General Requirements 1. Inquiries concerning the Request for Proposals and the subject of the Request for Proposals must be made to: Amanda Hall, Director of Finance 11330 Bullis Road Lynwood, CA 90262 (310) 603-0220, ext. 281 ahall@lynwood.ca.us CONTACT WITH PERSONNEL OF THE CITY OTHER THAN THE ABOVE REGARDING THIS REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS. 2. Submission of Proposal. Six (6) copies of the Proposal shall be received in the City Clerk s Office of the City of Lynwood by 5:00 p.m. on May 28, 2015 for a proposal to be considered. The Proposal should address the items listed in sections C and D below. The Proposal should be addressed as follows: City of Lynwood Maria Quinonez City Clerk 11330 Bullis Road Lynwood, CA 90242 B. Format for Technical Proposal 1. Title Page showing the request for proposals subject; the firm s name; the name, address and telephone number of the contact person; and the date of the proposal. 2. Table of Contents identifying the materials submitted by section and page number. 3. Signed Transmittal Letter briefly stating the Proposer s understanding of the work to be done; the commitment to perform the work within the time period; and the name(s) of the person(s) authorized to represent the Proposer, title, address, and telephone number. 4. Detailed Proposal following the order set forth in Section C below. C. Contents of Technical Proposal The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firm seeking to provide business license services to the City in conformity with 6
the requirements of this request for proposals. As such, the substance of proposals will carry more weight than the form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm. It should also specify the approach that will meet the request for proposals requirements. The Technical Proposal should address all points outlined in the request for proposals (excluding any cost information which should only be included in the Sealed Dollar Cost Bid). The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer s capabilities to satisfy the requirements of this request for proposals. While additional data may be presented, the following subjects must be included. They represent the criteria against which the proposal will be evaluated. 1. Independence The firm should provide an affirmative statement that it is independent of the City of Lynwood. 2. Firm Qualifications and Experience To qualify the firm must have extensive experience with local governments. Proposer must provide a list of all current municipal clients. The NO DOLLAR AMOUNTS SHOULD BE INCLUDED IN THE TECHNICAL PROPOSAL. D. Contents of Cost Proposal The cost proposal should contain all pricing information relative to performing the business license services as described in this request for proposals. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. The City will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. VII. EVALUATION PROCEDURES A. Review of Proposals The Ad Hoc Audit Committee will evaluate submitted proposals: B. Evaluation Criteria o J. Arnoldo Beltrán, City Manager o Erika Ramirez, Interim Director of Development Services o Amanda Hall, Director of Finance 7
Proposals will be evaluated using three (3) sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. 8