Urban Logic Should have Insurance for $1 Million per Occurrence to Cover IRS Payments and Penalties.
By: Libi Uremovic | Original Article at patch.com
On September 23, 2015 Anne Pelij of Wildan Services spoke to the Beaumont City Council regarding the Arbitrage Reports that should have been submitted to the IRS every year since 1998.
In her Report, Ms. Pelij stated that there was evidence that Arbitrage Reports had been paid for, but the City Manager, Alan Kapanias, could not produce any of the Reports.
Urban Logic Consultants’ Contract dated December, 2013, Exhibit A, Page 3 states in Job Duties:
III Public Facility Financing District Administration
Provide services required by the City Manager and legal and financial advisors to the City to manager and administer public financing districts, including the preparation of information for continuing disclosure reports, implementing fee credit agreements and processing credits, implementing facility acquisition agreements and providing vendor control reports.
Page 3 of Urban Logic’s Contract States that the Company is required to carry a general liability insurance policy of not less than $2 Million per occurrence and a Policy of Errors and Omissions insurance in a minimum of $1 Million per occurrence to cover any negligent acts or omissions committed by CONTRACTOR, its employees, and/or agents in the performance of any services for OWNER.
34 Bonds X 20 years of IRS Compliance = a lot of Occurrences. Too bad for Urban Logics’ Insurance Company if the City goes after them.
But of course the ultimate responsibility rests with former City Manager Alan Kapanicas and former Finance Director Bill Aylward.