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CONTRACT 3789 Vender AgreementSTATE OF CALIFORNIA -STANDARD AGREEMENT STD 213 (Rev 06/03) 3 / 8 9 - '4 . *'A AGREEMENT NUMBER C0700162 REGISTRATION NUMBER I - ,rn-A_o 'Faq 1 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 Ell Segundo 2. The term of this Agreement is: April 1, 2008 through December 31, 2008 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. 1 page Exhibit A — Scope of Work 1 page Exhibit B — Budget Detail and Payment Provisions GTC307 Exhibit C* — General Terms and Conditions 3 pages Exhibit D - Special Terms and Conditions 1 page Exhibit E — Confidentiality Statement 1 page Exhibit F — Record Layout 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.dqs.ca.gov/contracts IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. 1 CONTRACTOR'S NAME City of Ell Se BY (Authorized Si a rE ,!s PRINTED D TITLE OF PERSON SIGNING CONTRACTOR than an indiveC state whether a corporation, partnership, etc.) ADDRESS 350 Main Street El Segundo, CA 90245 AGENCY NAME Franc ' qTaoard BY ( uthorize ) PRI E AE Titus S. , Chie ADDRESS r STATE OF CALIFORNIA SON SIGNING Financial Officer P.O. Box 2086, Rancho Cordova, CA 95741 -2086 DATE SIGNED(Do not type) a -ao -0g D� SIG ED (Do t type /) California Department of Genera Services Use Only ® Exempt per: SCM 4.04.5.b. 3/ 89 . - 11 City of El Segundo Agreement #C0700162 �'' EXHIBIT A SCOPE OF WORK This Agreement is entered intndo herein after referred Franchise t e CiBoard, herein referred to as (FTB) and the City of EI Segu , 1. Pursuant to Revenue and Taxation Code Section 19551.1, FTB will provide to the City, per Exhibit F, the following records obtained from the FTB Taxpayer Information (TI) System 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 2007 tax year. 3. The records will be identified by zip codes located within the jurisdictional boundaries of the City. The identified records will be transmitted to the City in .txt format. 4. The records will be sent to the City project coordinator on an encrypted, password protected CD -Rom (requires WinZip 9.0 or later) or via a secure electronic connection set up by FTB per the request of the City. The 2007 data will be sent out twice during the year. The first will be sent in December 2008, 2008 containing A second extract will be sent complete with all 2007 filings to date. 5. The project coordinators during the term of this Agreement will be: Franchise Tax Board Erica Gonzales Data Resources and Services P.O. Box 1468, MS A -181 Sacramento, CA 95812 -1468 Phone: (916) 845 -6556 Fax: (916) 855 -5695 Direct signed Agreement to: Franchise Tax Board Business Acquisitions Unit Attention: Susann Field P.O. Box 2086, MS A -374 Rancho Cordova, CA 95741 -2086 Phone: (916) 845 -3897 Fax: (916) 845 -3599 City of El Segundo Steve Jones Business Services Manager 350 Main Street El Segundo, CA 90245 Phone: (310) 524 -2332 City of El Segundo EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISION 3/89. Agreement #C0700162 1. PAY MENT: The City agrees to pay FTB $500.00 for 2007 data. Upon receipt of the executed Agreement, the FTB will invoice the City for its share of the cost for 2007 data, which shall not exceed $500.00. 2. INVOICING: FTB shall render an invoice in triplicate to: City of El Segundo Attn: Steve Jones Business Services Manager 350 Main Street El Segundo, CA 90245 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. • City of El Segundo EXHIBIT D Agreement #C0700162 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 information on Code Sec on other confidential 19542 1, and or Government Code (Revenue and Taxation Section 90005). 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 license 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 El Segundo EXHIBIT D SPECIAL TERMS AND CONDITIONS (continued) 3 ` 8 9 . ,,i Agreement #C0700162 6. INCIDENT REPORTING: All unauthorized or suspected unauthorized access; use and /or disclosure (incidents) of FTB data shall be reported to the FTB Contact, 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 license 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 QUESTIONAIRE 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 El Segundo EXHIBIT D 3789•.'' -j Agreement #C0700162 SPECIAL TERMS AND CONDITIONS (continued) 13. LIMITED WARRANTY: The FTB does not warrant or represent the accuracy or content of the material available though this Agreement, and expressly disclaims any express or implied warranty, including any implied warranty of fitness for a specific purpose. 14. CANCELLATION: The FTB may terminate this Agreement, in writing, 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 be tolon deemed e that individual record can no g reasonably ascertained. Upon destruction of the records, the City will notify FTB of the completed destruction. City of El Segundo EXHIBIT E CONFIDENTIALITY STATEMENT State of California 37 89 Agreement #C0700162 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. • City of El Segundo EXHIBIT F rtina Position Field Name Entity Type 1 1 SSN or FEIN 9 2 Last Na Name 40 11 First Name 11 51 62 Middle Initial 1 63 Spouse SSN 9 17 72 S ouse Last Name 89 S ouse First Name 11 100 Spouse Middle Initial 1 PBA Code 6 101 Address Number 10 107 Pre-Directional Indicator 2 117 Street Name 28 119 147 Street Suffix 4 2 151 Post-Directional Indicator Street Suffix 2 4 153 A artment/Suite Number 10 157 Cit 13 167 2 180 State 5 182 Zi Code 4 187 Zi Code Suffix 1 191 CBT Match 3789..,- Agreement #C0700162 Description ,IP" — personal income tax record; "B" — business tax record For P records, primary taxpayers social security number; For B records, federal employer identification number For P records, the primary taxpayer's last name; For B records, business name For P records ONLY For P records ONLY For P records filed with a 'oint return For P records filed with a joint return For P records, principal business activity (PBA) code Default is -W — No; if City participates in City Business Tax (CBT) program, submitting data to FTB and data matches, "Y" - Yes