HomeMy WebLinkAboutContracts & Agreements_59-2004SECOND AMENDMENT TO AGREEMENT FOR AUDITING SERVICES
This Second Amendment to Agreement for Auditing Services is made and entered into
this 20th day of April, 2004, by and among the City of Redlands, a municipal corporation (the
"City"), the Redevelopment Agency for the City of Redlands (the "Agency") and Conrad and
Associates, LLP, a limited liability partnership (the "Auditors")
The parties hereby mutually agree as follows
1 The City and the Auditors have previously entered into the Agreement for
Auditing Services on June 1, 1999 (approved by City Council on April 6, 1999 with a First
Amendment to Agreement for Auditing Services dated April 2, 2002) providing professional
services relating to independent auditing services for the City and Redevelopment Agency A
true and correct copy of the Agreement for Auditing Services and First Amendment to
Agreement for Auditing Services are attached hereto, marked "Appendix B" and incorporated
herein by this reference (together, the "Agreement") The Agency now wishes to , and by its
approval hereof does, become a party to the Agreement In each instance where the City is
referenced in the Agreement, the term "City" shall also include the "Agency" except for purposes
of making the payments to Auditors identified below
2 Tenn The services of Auditors shall continue through March 31, 2005 unless
earlier terminated as provided in the Agreement
3 Scope of Services The City and Agency desire the same scope of services for
fiscal year ended June 30, 2004 as in the previous year, June 30, 2003, including compliance
with GASB #34 as required by accounting principles generally accepted in the United States of
America The City and Agency desire the Auditors to work jointly with the City and Agency
and for the Auditors to prepare the Comprehensive Annual Financial Report (CAFR) and
Redevelopment Agency (RDA) Financial Statements and provide the City with a photo ready
copy of the CAFR and 25 copies of the Agency's Financial Statements Said CAFR and RDA
Financial Statements for fiscal year ended June 30, 2005 are to be in compliance with GASB #34
Financial Model Appendix A to this Second Amendment to Agreement for Auditing, Services
sets forth the scope of services and standards to be followed
4 Payment Schedule For services rendered during fiscal year ended June 30, 2004,
the City and the Agency shall pay the following not -to -exceed amounts (as set forth in
Appendix A)
Entity Fiscal Year Amount
City of Redlands 2003-2004 $39,000
Redevelopment Agency
of the City of Redlands 2003-2004 $ 4,500
IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to
Agreement for Auditing Services on the date and year first wntten above
"CITY"
CITY OF REDLANDS
"AGENCY"
REDEVELOPMENT AGENCY OF THE
CITY OF REDLANDS
Mayor Pro Tem
ATTEST
By
5..4.1":61*
y Clerk ://
"AUDITORS"
By
By
Vice Chairman
ATTEST
By
ezs 47c4r.vvt.",.,
Michael A Harrison, Partner
APPROVED BY THE CITY COUNCIL
Minute Order April 20, 2004
Date April 20, 2004
cutive JMrector
ecretary
APPENDIX A
SECOND AMENDMENT TO AGREEMENT FOR AUDITING SERVICES
AUDITORS agree to perform all audits in accordance with auditing standards generally accepted
in the United States of America and Government Auditing Standards The Single Audit
examination will be conducted in accordance with OMB Circular A-133 The compliance
examination of the Redevelopment Agency will be conducted in accordance with the State
Controller's Office guidelines The following is a summary of the breakdown of the maximum
fee (including out-of-pocket expenses) foi the June 30, 2004 engagement
Maximum Not -To -Exceed Fee
Year ending June 30, 2004
Audit of the City of Redlands, including A-133
Single Audit, Gann limit review procedures,
ongoing audit procedures relating to GASB #34,
and Auditor preparation and word processing
of City's CAFR under GASB #34
Financial and compliance audit of Redlands
Redevelopment Agency compliant with
GASB #34 (Auditor prepared)
$39,000
4,500
$43 500
The foregoing not -to -exceed amounts include all out-of-pocket expenses The above fees
contemplate the CITY staff providing AUDITORS with maximum cooperation and supporting
schedules to complete the audit Foi fiscal 2004, CITY staff would have the responsibility for
preparation of Management's Discussion and Analysis (MD&A), letter of transmittal and
statistical data All other reports will be the responsibility of the AUDITORS All fieldwork
will be completed by December 1, 2004 and all reports finalized by December 20, 2004
Should the CITY desire additional services, such services would be performed at the following
hourly rates for 2004 (including expenses)
Classification Hourly Rate
Partner $185
Senior Manager 110
Manager 100
Supervisor 90
Senior Accountant S5
Staff Accountant 70
FIRST AMENDMLN1 1U
AGREEMENT FOR AUDITING SERVICES
WITH CONRAD AND ASSOCIATES, L.L.P.
This First Amendment to Agreement made and entered into this 2nd day of April, 2002 by and
between the City of Redlands, a municipal corporation ("CITY") and Conrad and Associates,
L L P ("AUDITORS")
1 Recitals The parties hereto have previously entered into an agreement the 1St of June,
1999 (approved by City Council on the 6th of April, 1999) providing professional
services relating to independent auditing services for the City and Redevelopment
Agency A true and correct copy of the Agreement is attached hereto, marked
"Appendix B" and incorporated herein by this reference
2 Scope of Services The CITY desires the same scope of services for fiscal year ended
June 30, 2002 as in previous years of the contract However, for fiscal year ended
June 30, 2003 the CITY desires to comply with new accounting standards and
implement GASB #34 as required by accounting principles generally accepted in the
United States of America The CITY desires the AUDITORS to work jointly with
CITY and for the AUDITORS to prepare the Comprehensive Annual Financial
Report (CAFR) and Redevelopment Agency (RDA) Financial Statements and provide
the CITY with a photo ready copy of CAFR and 25 copies of Redevelopment Agency
Financial Statements Said CAFR and RDA Financial Statements for fiscal year
ended June 30, 2003 are to be in compliance with new GASB #34 Financial Model
Appendix A to this First Amendment sets forth the scope of services and standards to
be followed.
3 Time of Performance Said services of AUDITOR are to continue through January 31,
2004 unless earlier terminated as provided herein
4 Method of Payment For services rendered during fiscal year ended June 30, 2002 and
2003 the following not to exceed amounts shall apply (as set forth in Exhibit A)
Fiscal Year Amount
2001-2002 $28,000
2002-2003 43,500
In witness whereof, the parties hereto have executed this Agreement on the date and year first
written above
CITY OF REL LANDS CO 1' P AND ASSOCIATES, L.L.P.
Karl N. Haws, Mayor
APPROVED BY THE CITY COUNCIL
Minute Order Apiil 2, 2002
Date
Michael A Hamson, Partner
April 2, 2002
Attest CC.
Lorr}d Poyzer�,Cilty Clerk
Appendix A
FIRST AMENDMENT TO
AGREEMENT FOR AUDITING SERVICES
WITH CONRAD AND ASSOCIATES, L L P.
Auditors agree to perform all audits in accordance with auditing standards generally
accepted in the United States of America and Government Auditing Standards The
Smgle Audit Examination will be conducted in accordance with OMB Circular A-133
The compliance examination of the Redevelopment Agency will be conducted in
accordance with State Controller's office guidelines The following is a summary of the
breakdown of the maximum fee (including out-of-pocket expenses) for the June 30, 2002
and 2003 engagements.
Audit of the City of Redlands, mcluding A-133 Smgle
Audit and GANN liniit review procedures (City
Staff prepare and word process CAFR)
Audit of the City of Redlands, including A-133 Single
Audit, GANN limit review procedures,
implementation of GASB #34, audit procedures
relating to GASB #34, and Auditor preparation and
word processing of City's CAFR under GASB #34
Financial and compliance audit of Redlands
Redevelopment Agency (auditor prepared)
Financial and comphance audit of Redlands
Redevelopment Agency compliant with GASB #34
(auditor prepared)
Maximum Not -to -Exceed Fee
Year ending June 30
2002 2003
25,000
3,000
39,000
4,500
$28,000 43,500
The foregoing not -to -exceed amounts include all out-of-pocket expenses The above fees
contemplate the City staff providing auditors with maximum cooperation and supporting
schedules to complete the audit For fiscal 2003, City staff would have the responsibility
for preparation of Management's Discussion and Analysis (MD&A), letter of transmittal
and statistical data All other reports will be the responsibility of the auditors All
fieldwork will be completed by December 1 of each year and all reports finalized by
December 20 of each year
Should the City desire additional services, those would be performed at the following
hourly rates for 2002 and 2003 (including expenses)
CIassification Hourly Rate
Partners $185
Senior manager 110
Managers 100
Supervisors 90
Senior accountants 85
Staff accountants 70
AESE1.)Dix 73
AGREEMENT FOR AUDITING SEKYICES
This Agreement for Auditing Services is made and entered into on this % /— day of Sane,
1999 by and between the City of Redlands, a municipal corporation (herein referred to as
"CITY") and Conrad and Associates, L L P , Certified Public Accountants (herein referred to as
"AUDITORS")
WITNESSETH
WHEREAS, AUDITORS are recognized as competent and qualified certified public
accountants who were previously selected by the City Council through competitive procedures,
and are duly authonzed to practice and licensed as such by the California State Board of
Accountancy
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows
1 TERM The term of this agreement shall be for a five-year period to perform professional
services for the fiscal years ending June 30, 1999 through 2003
2 SCOPE OF SERVICES The AUDITORS agree to provide services and perform all
work necessary in a manner satisfactory to the CITY as set forth in their proposal
response dated March 16, 1999 referred to as Appendix A attached hereto and by
reference incorporated herein and made a part hereof
3 CITY'S OBLIGATIONS For furnishing services specified in this agreement, the CITY
will pay and the AUDITORS shall receive the full compensation as set forth in Appendix
A, attached hereto and by reference incorporated herein and made a part hereof
Additionally, CITY agrees to provide AUDITORS with supporting schedules, trial
balances and reconciliations as necessary to complete the services requested City staff
agree to prepare and word process the Comprehensive Annual Financial Report
4 PAYMENT SCHEDULE The AUDITORS shall submit a monthly billing based on the
percentage of audit work completed. After approval of the CITY's Director of Finance,
said invoice shall be paid within thirty days
5 NOT OBLIGATED TO THIRD PARTIES The CITY shall not be obligated or liable
hereunder to any party other than the AUDITORS
6 ASSIGNMENT No assignment of the Agreement or of any part of obligation of
performance hereunder shall be made, either in whole or in part, by AUDITORS without
the pnor written consent of CITY
7 INDEPENDENT CONTRACTOR The parties hereto agree that AUDITORS and its
employees, officers and agents are independent contractors under this Agreement and
shall not be construed for any purpose to be employees of CITY
8 INSURANCE AUDITORS shall procure and maintain, at its cost at all times during the
term of this Agreement, the following policies of insurance.
AGREEMENT FOR AUDITING SERVICES, (CONTINUED)
8 INSURANCE, (CONTINUED'
(a) Workers' Compensation Insurance Before beginning work, AUDITORS shall
furnish to CITY a certificate of insurance as proof it has taken out full workers
compensation insurance for all persons whom it may employ directly or through
subcontractors m carrying out the work specified herein, in accordance with the
laws of the State of California The certificate will be furnished by Conrad
Business Services, Inc
(b)
Public Liability and Property_ Damage Throughout the term of this Agreement, at
AUDITORS' sole cost and expense, AUDITORS shall keep, or cause to be kept, in
full force and effect, for the mutual benefit of CITY and AUDITORS,
comprehensive, broad form, general public liability and automobile insurance
against claims and liabilities for personal injury, death or property damage ansing
from AUDITORS' activities, providing protection of at least one million dollars
($1,000,000) for bodily injury or death to any one person or for any one accident or
occurrence and at least one million dollars ($1,000,000) for property damage
(c) Errors and Omissions AUDITORS shall take out and maintain at all times during
the life of this Agreement a policy or policies of insurance concerning errors and
omissions ("malpractice") providing protection of at least one million dollars
(S1,000,000) for errors and omissions with respect to loss arising from actions of
AUDITORS performing audit services hereunder on behalf of CITY
(d) Generajjnsurance Requirements All insurance required by express provisions of
this Agreement shall be carred only in responsible insurance companies licensed to
do business in the State of California and policies required under paragraphs 8 (a)
and (b) shall add as insureds, by endorsement, CITY, its elected and appointed
officials, officers, employees, agents and representatives AUDITORS shall furnish
CITY with copies of all such policies promptly upon receipt of them, or
certificate(s) evidencing the insurance AUDITORS may effect for its own account
insurance not required under this AGREEMENT
9 NOTICES AND DESIGNATED REPRESENTATIVES, Any and all notices, demands,
invoices and written communications between the parties hereto shall be addressed as set
forth in this paragraph 9 The below named individuals, furthermore, shall be the persons
primarily responsible for the performance by the parties under this Agreement
CITY AUDITORS
Bonnie J Johnson, Finance Director
City of Redlands
P O Box 3005
35 Cajon Street
Redlands, California 92373
2
Michael A. Hamson, Partner
Conrad and Associates, L L P
1100 Main Street, Suite C
Irvine, California 92614
AGREEMENT FOR AUDITING SERVICES, (CONTINUED)
9. NOTICES AND DESIGNATED REPRESENTATIVES, (CONTiNUEM
Any change in this designation shall be made known to AUDITORS by written notice
AUDITORS shall assign Michael Harrison as the "Engagement Panner" for services
provided under this Agreement. Any change in this designation shall be made known to
CITY by written notice
Any such notices, demands, invoices and written communications, by mail, shall be
deemed to have been received by the addressee forty-eight (48) hours after deposit thereof
in the United States mail, postage prepaid and properly addressed as set forth above
10 OWNERSHIP OF DOCUMENTS All documents, data, studies, surveys, copies and
reports other than working papers obtained andlor prepared by AUDITORS pursuant to
this Agreement shall be considered the property of CITY and, upon payment for services
performed by AUDITORS, such reports and other identified materials shall be delivered
to CITY by AUDITORS. AUDITORS may, however, make and retain such copies of
said reports and materials as AUDITORS may desire Working papers shall be
maintained for a minimum of three years and made available to CITY for review upon
written, reasonable request by CITY or other governmental agencies furnishing federal
funding to the CITY
1I TERMINATION This Agreement may be terminated by CITY upon the giving of a
written "Notice of Termination" to AUDITORS at least thirty (30) days prior to the date
of termination specified in said notice In the event this Agreement is so terminated,
AUDITORS shall be compensated at AUDITORS' applicable hourly rates as set forth in
Appendix A, on a prorate basis with respect to the percentage of the engagement
completed as of the date of termination In no event, however, shall AUDITORS receive
more than the maximum specified in Appendix A to this Agreement. AUDITORS shall
provide to CITY any and all documents, data, studies, surveys, copies and reports other
than working papers, whether in draft or final form, prepared by AUDITORS as of the
date of termination Working papers shall be made available to CITY for review upon
written, reasonable request by CITY AUDITORS may not terminate this Agreement
except for cause
12 ENTIRE AGREEMENT This Agreement supersedes any and all other Agreements,
either oral or in writing, between the parties with respect to the subject matter herein
Each party to this Agreement acknowledges that no representation by any party which is
not embodied herein nor any other Agreement, statement or promise not contained in this
Agreement shall be valid and binding Any modification of this Agreement shall be
effective only if it is in writing signed by all parties
3
AGREEMENT FOR AUDITING SERVICES, (CONTINUED)
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first written above
CITY OF REDLANDS
APPROVED BY THE CITY COUNCIL
Minute Order
Date
4
CONRAD AND ASSOCIATES, L L P
77%;(144i9 Azsig-i-0-,:,
Michael A Hamson, farmer
TOTAL P.05