HomeMy WebLinkAboutContracts & Agreements_89-2008CBIZ
CBIZ Accounting, Tax & Advisory Services, LLC
June 3, 2008
Ms Tina Kundig
Finance Director
City of Redlands
P 0 Box 3005
Redlands California 92373
RE. INFRASTRUCTURE UPDATE FOR THE YEAR ENDING JUNE 30, 2008
Dear Ms Kundig
CBIZ Accounting, Tax and Advisory, LLC (CBIZ) is pleased to continue to provide
updated infrastructure records for the year ending June 30, 2008 The scope of the
work is as follows
• CBIZ will identify all City capital projects accepted by the City Council between
July 1, 2007 and June 30, 2008 This list will be reviewed by the City to ensure it
is complete We would request a copy of City Council bid document and a copy
of the plans for each project
• CBIZ will identify all developer projects accepted by the City between July 1,
2007 and June 30, 2008 This list will be reviewed by the City to ensure it is
complete
• CBIZ will update the City of Redlands's detailed infrastructure inventory for the
year ending June 30, 2008
• CBIZ will calculate accumulated depreciation and depreciation expense as of
and for the year ending June 30, 2008
• CBIZ will provide a report documenting the additions and deletions in a format
acceptable to the City's external auditors
We are available to begin work immediately on the update Based upon the availability
of City staff and records, we anticipate providing a draft report to the City no later than
August 31, 2008 Upon acceptance by the City, we will finalize the report
CBIZ will provide GASB 34 infrastructure inventory update services for the year ending
June 30, 2008 to the City of Redlands for a fixed fee of $9,200 This fixed fee is
inclusive of all travel and out-of-pocket expenses We will invoice the City monthly for
services rendered throughout the life of the project
2301 Dupont Dnve, Suite 200 urine, CA 92612 Ph- 949 474 2020 u F 949 263 5520
Ms Tina Kundig
Finance Director
City of Redlands
June 3 2008
Terms and conditions for this engagement are documented in Attachment A
If the foregoing is in accordance with your understanding please sign the copy of this
letter in the space provided and return it to us
Sincerely,
CBIZ ACCOUNTING, TAX AND ADVISORY, LLC
Marcus D Davis
Managing Director
Accepted
CITY OF
By
.-.s
Air
Title
Date 64/1M
Attest.
Lo le Poyz ty Clerk
2
ATTACHMENT A
TERMS AND CONDITIONS OF SERIVCES
A Services These Terms and Conditions of Services and the engagement letter to which these
terms are appended constitute the entire agreement between you and CBIZ for the services to be
rendered As used herein, the term "services", includes only the services as described in the attached
engagement letter All decisions in connection with the implementation of CBIZ's services in
connection with this engagement shall be your responsibility
B Payment of Invoices Our invoices for these services will be rendered each month as work
progresses and are payable on presentation If properly submitted invoices are not paid within 30 days
of the invoice date, a late charge may accrue at the lesser of (i) 1% per month or (ii) the highest rate
allowable by law Without limiting its rights or remedies, CBIZ shall have the right to halt or terminate
entirely its services until full payment is received on such past due invoices The failure of CBIZ to
exercise its right to suspend or terminate work shall not constitute a waiver by CBIZ of any right or
remedy In the event of a termination of this engagement pursuant to section D below, you agree to
compensate CBIZ for services performed and expenses incurred through the effective date of
termination All outstanding bills will be paid in full prior to the release of any information or prior to
final product or service delivery, unless other arrangements to pay your bill have been agreed upon
See section E below for additional information regarding Limitation on Damages
C Dispute Resolution Because there are inherent difficulties in recalling or preserving information
as the period after an engagement increases, you agree that, notwithstanding any applicable statute of
limitations, any claim based on this engagement must be filed within twelve (12) months after
performance of our service, unless you have previously provided us with a written notice of a specific
defect in our services that forms the basis of the claim
If any dispute, controversy or claim arises in connection with the performance or breach of this
agreement, either party may, upon written notice to the other party, request that the matter be mediated
Such mediation will be conducted by a mediator appointed by and pursuant to the Rules of the American
Arbitration Association or such other neutral facilitator acceptable to both parties Both parties will exert
their best efforts to discuss with each other in good faith their respective positions in an attempt to finally
resolve such dispute or controversy
Each party may disclose any facts to the other party or to the mediator which it, in good faith, considers
necessary to resolve the matter All such discussions, however, will be for the purpose of assisting in
settlement efforts and will not be admissible in any subsequent litigation against the disclosing party
Except as agreed by both parties, the mediator will keep confidential all information disclosed during
negotiations The mediator may not act as a witness for either party in any subsequent arbitration
between the parties
The mediation proceedings will conclude within sixty days from receipt of the written notice unless
extended or terminated sooner by mutual consent Each party will be responsible for its own expenses
The fees and expenses of the mediator, if any, will be borne equally by the parties
If we are unable to resolve the fee dispute through mediation, you and CBIZ agree to submit to
resolution by arbitration in accordance with the rules of the American Arbitration Association Such
arbitration shall be binding and final, as permitted by the law of the applicable jurisdiction In agreeing
to arbitration, we both acknowledge that in the event of a dispute over fees, each of us is giving up the
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ATTACHMENT A
TERMS AND CONDITIONS OF SERIVCES
right to have the dispute decided in a court of law before any judge or jury and instead are accepting
the use of arbitration for resolution The prevailing party shall be entitled to the allowance of a
reasonable attorneys' fee and other costs of such action
D Term This engagement shall conclude on the completion and delivery of CBIZ's services
hereunder This engagement may be terminated by either party at any time by giving written notice to
the other party not Tess than 10 business days before the effective date of termination
E Limitation on Damages Unless otherwise prohibited by law or applicable professional standard,
you agree that CBIZ and its personnel shall not be liable to you for any claims, liabilities, or expenses
relating to this engagement for an aggregate amount in excess of the fees paid by you to CBIZ
pursuant to this engagement, except to the extent finally judicially determined to have resulted from the
bad faith or intentional misconduct of CBIZ Unless otherwise prohibited by law or applicable
professional standard, in no event shall CBIZ or its personnel be liable for consequential, special,
indirect, incidental, punitive, or exemplary losses or damages relating to this engagement This
limitation on liability provision shall apply to the fullest extent of the law, whether in contract, statute,
tort (such as negligence), professional standard, or otherwise
F Third Parties and Internal Use Except as otherwise agreed, all services hereunder shall be
solely for your internal purposes and use, and this engagement does not create privity between CBIZ
and any person or party other than you (a "third party") This engagement is not intended for the
express or implied benefit of any third party No third party is entitled to rely, in any manner or for any
purpose, on the services provided by CBIZ In order to protect CBIZ from any unauthorized reliance or
claims, you further agree that the services provided by CBIZ shall not be distributed, made available,
circulated, or quoted to or used by any third party without the prior written consent of CBIZ However,
nothing in this paragraph shall be construed as limiting or restricting such disclosure for your financial
reporting purposes
G Reliance Upon Your Information You are responsible for making all records and related
information available to us CBIZ shall be entitled to assume, without independent verification, the
accuracy of all representations, assumptions, information and data that you and your representatives
provide to CBIZ All assumptions, representations, information and data to be supplied by you and
your representatives will be complete and accurate to the best of your knowledge CBIZ may use
information and data furnished by others, however, CBIZ shall not be responsible for, and CBIZ shall
provide no assurance regarding, the accuracy and completeness of any such information or data
Except as specifically provided herein, CBIZ shall not assume any responsibility for any financial
reporting with respect to the services provided hereunder You acknowledge and understand that
CBIZ is providing no attest services of any kind, scope or nature whatsoever, as part of this
engagement CBIZ shall have no responsibility to address any legal matters or questions of law in
connection with this engagement See section K below for additional information regarding
confidentiality
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ATTACHMENT A
TERMS AND CONDITIONS OF SERIVCES
H Governing Law and Severability. These Terms and Conditions of Services, and the
engagement letter to which these terms are appended, shall be governed by, and construed in
accordance with, the laws of the State in which CBIZ personnel rendering the services are located
(without giving effect to the choice of law principles thereof) If any provision of this Agreement is
found by a court of competent jurisdiction to be unenforceable, such provision shall not affect the other
provisions, but such unenforceable provision shall be deemed modified to the extent necessary to
render it enforceable, preserving to the fullest extent permissible the intent of the parties set forth in
this Agreement
1 Cooperation You shall cooperate with CBIZ in the performance by CBIZ of its services
hereunder, including, without limitation, providing CBIZ with reasonable facilities and timely access to
data, information, and your personnel You shall be responsible for the performance of your personnel
and agents and for the accuracy and completeness of all data and information provided to CBIZ for
purposes of the performance by CBIZ of its services hereunder
J. Independent Contractor. It is understood and agreed that each of the parties hereto is an
independent contractor and that neither party is, nor shall be considered to be, an agent, partner, joint
venturer, or representative of the other Neither party shall act or represent itself, directly or by
implication, as an agent of the other or in any manner assume or create any obligation of behalf of, or
in the name of, the other
K. Confidentiality. To the extent that, in connection with this engagement, CBIZ comes into
possession of any information of yours identified as proprietary or confidential, CBIZ will not disclose
such information to any third party without your consent, except (a) as may be required by law,
regulation, judicial or administrative process, in accordance with applicable professional standards, or
in connection with litigation pertaining hereto, or (b) to the extent such information (i) shall have
otherwise become publicly available (including, without limitation, any information filed with any
governmental agency and available to the public) other than as the result of a disclosure by CBIZ in
breach hereof, (ii) is disclosed by you or your personnel to a third party without substantially the same
restrictions as set forth herein, (iii) becomes available to CBIZ on a nonconfrdential basis from a source
other than you or your personnel which CBIZ does not believe is prohibited from disclosing such
information to CBIZ by obligation to you, (iv) is known by CBIZ prior to its receipt from you without any
obligation of confidentiality with respect thereto, or (v) is developed by CBIZ independently of any
disclosures made by you or your personnel to CBIZ of such information
We will provide Mayer Hoffman McCann P C access to our client records and accounting, tax,
financial and other information so that Mayer Hoffman McCann P C can provide you with any attest
services you have engaged them to perform You authorize Mayer Hoffman McCann P C to provide
us access to all of your files and accounting, financial and other information in its possession for the
purpose of providing all services requested
In the interest of facilitating our services to you, we may communicate by facsimile transmission or by
sending electronic mail over the Internet Such communications may include information that is
confidential to you Our firm employs measures in the use of facsimile machines and computer
technology designed to maintain data security While we will use our best efforts to keep such
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ATTACHMENT A
TERMS AND CONDITIONS OF SERIVCES
communications secure in accordance with our obligations under applicable laws and professional
standards, we have no control over the unauthorized interception of these communications once they
have been sent
L. Miscellaneous. This agreement shall be binding on all transferees, successors and assigns of
both CBIZ and you Each party acknowledges that this was a negotiated contract, and as a result, no
part of this contract shall be construed against either party based on drafting of the contract In the
event any part of this agreement is held to be illegal or unenforceable for any reason, such
determination shall not affect nor invalidate the rest of the agreement, and the rest of the agreement
shall remain in full force and effect
M Limitation on Warranties. This is a services engagement CBIZ warrants that it shall perform
services hereunder in good faith CBIZ disclaims all other warranties, either express or implied,
including, without limitation, warranties of merchantability and fitness for a particular purpose
N Property The workpapers and files which CB1Z generates in connection with this engagement
are the property of CBIZ Upon the termination of this engagement, upon request we will return your
original records to you All CBIZ workpapers and files will be retained for 7 years, pursuant to CBIZ's
document retention policy
o Non -Solicitation During the term of this Agreement and for a period of one year thereafter, the
parties agree not to hire, solicit, or attempt to solicit, whether directly or indirectly, the services of any
staff employee, consultant, or subcontractor of the other party without the prior written consent of that
party Violation of this provision shall, in addition to other relief, require the breaching party to
compensate the non -breaching party with 100 percent of the solicited person's annual compensation
P. Indemnification Unless otherwise prohibited by law or applicable professional standard, you
shall indemnify and hold harmless CBIZ and its personnel from and against any causes of action,
damages (whether compensatory, consequential, special, indirect, incidental, punitive, exemplary, or of
any other type or nature), costs and expenses (including, without limitation, reasonable attorneys' fees
and the reasonable time and expenses of CBIZ's personnel involved) brought against or involving CBIZ
at any time and in any way arising out of or relating to CBIZ's services under this engagement, except
to the extent judicially determined to have resulted from the bad faith, gross negligence, or willful or
intentional misconduct of CBIZ's personnel This provision shall survive the termination of this
agreement for any reason, and shall apply to the fullest extent of the law, whether in contract, tort, or
otherwise
If any action or proceeding (any of the foregoing being a "Claim") is threatened or commenced by any
third party against CBIZ that you are obligated to defend or indemnify under this Agreement, then
written notice thereof shall be given to you as promptly as practicable After such notice and only so
long as CBIZ's and your interests with respect to the claim remain consistent, no conflict exists, and, by
your control of the defense, CBIZ's insurance is not voided or otherwise compromised in any way, you
shall be entitled, if you so elect in writing within ten days after receipt of such notice, to take control of
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ATTACHMENT A
TERMS AND CONDITIONS OF SERIVCES
the defense and investigation of such Claim and to employ and engage attorneys to handle and defend
the same, at your sole cost and expense, with the approval of CBIZ, which approval shall not be
unreasonably withheld CBIZ shall cooperate in all reasonable respects with you and your attorneys in
the investigation, trial and defense of such Claim and any appeal arising therefrom, provided, however,
that CBIZ may, at its own cost and expense, participate, through its attorneys or otherwise, in such
investigation, trial and defense of such Claim and any appeal arising therefrom You shall enter into no
settlement of a Claim that involves a remedy other than the payment of money by you without the prior
consent of CBIZ
After notice by you to CBIZ of your election to assume full control of the defense of any such Claim,
and CBIZ's approval of selected counsel, you shall not be liable to CBIZ for any legal expenses
incurred thereafter by CBIZ in connection with the defense of that Claim If you do not assume full
control over the defense of a Claim, then you may participate in such defense, at your sole cost and
expense, and CBIZ shall have the right to defend you in such manner as it may deem appropriate, at
your cost and expense
Q Insurance. CBIZ shall secure the minimum insurance coverage described below, and such
insurance shall be primary with respect to any insurance or self-insurance programs maintained by the
City of Redlands (City)
• Worker's Compensation and Employer's Liability insurance in the amount that meets the
statutory requirement shall be in force with an insurance carrier acceptable to the City
• Comprehensive Commercial General Liability insurance in the amount of one million dollars
($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate shall be in force
with an insurance carrier acceptable to the City and name the City as additional insured
{Three million dollars ($3,000,000) aggregate for projects with greater exposure }
• Professional Liability insurance, when applicable, in the amount of one million dollars
($1,000,000) per claims made and two million dollars ($2,000,000) aggregate shall be in force
with an insurance carrier acceptable to the City
• Commercial Automobile Liability insurance with minimum limits of one million dollars
($1,000,000) per occurrence, combined single limit for bodily injury liability and property
damage liability shall be in force and name the City as additional insured This coverage shall
include all owned vehicles, hired and non -owned vehicles, and employee non -ownership
vehicles
CBIZ shall instruct our insurance agent/broker to furnish properly executed certificates of insurance to
the City
• Certificates of insurance shall clearly evidence coverage required above
• Certificates of insurance shall be submitted by the agent/broker directly either via email to
kbraun@cityofredlands org or U S Mail to
City of Redlands
Finance Dept /Risk Management
P 0 Box 3005
Redlands, CA 92373
7
MEMORANDUM
June 16, 2008
To N Enrique Martinez
City Manager
From Tina T Kundig .,\L__
Finance Director
SUBJECT Single Source Request for Infrastructure Update
With the implementation of Governmental Accounting Standards Board (GASB) 34 in
fiscal year 2002-2003, the City of Redlands was, for the first time, required to report the
value of infrastructure assets as part of its total capital assets To accomplish the task of
valuing and accounting for infrastructure and to update the value of fixed assets already
being accounted for, the City sent out a Request for Proposal for a Fixed Assets Inventory
and Valuation CBIZ was selected to perform the initial inventory and has provided the
City with updates in subsequent years Having performed the initial inventory of the
City's infrastructure and having maintained records of that initial inventory and
subsequent updates, CBIZ is in the best position to perform the City's infrastructure
update for fiscal year 2007-2008 at a reasonable price and with the minimum impact on
staff Accordingly, staff is recommending CBIZ be selected as the Single Source for
these services
CBIZ has provided the City with a Proposal for Infrastructure Update for the Year
Ending June 30, 2008 for a fixed fee of $9,200 The updated values will be included in
the City of Redlands Comprehensive Annual Financial Report for the Year Ended June
30, 2008