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HomeMy WebLinkAboutCC AG PKT 2008-04-14 #I AGENDA STAFF REPORT . DATE: April 14, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Robbeyn Bird, CPA Director of Administrative Services SUBJECT: Agreement for Annual Auditing Services SUMMARY OF REQUEST: Staff requests City Council approve the agreement for annual auditing services between Mayer Hoffman McCann, Certified Public Accountants, and the City of Seal Beach for three consecutive years, beginning with the fiscal year ending June 30, 2008 with an option to extend for two additional years and authorize the City Manager to execute the agreement. . BACKGROUND: On January 14, 2008, the City Council authorized staff to issue a Request for Proposal for annual auditing services. Staff received three responses from reputable firms and two firms declined to submit a proposal. After reviewing the proposals for auditing services submitted to the City and conducting interviews of all three firms, staff selected Mayer Hoffman McCann P.C., Certified Public Accountants to perform the annual auditing services beginning with the fiscal year ending June 30, 2008. Mayer Hoffman McCann P. C. is a highly respected firm within the field of government accounting and auditing. A copy of the proposal for audit services dated February 11, 2008 describes the firm's qualifications and is available upon request. City staff will return to Council with a proposal and contract for the audit of the cable television franchise. FINANCIAL IMPACT: . Mayer Hoffman McCann's fees for services to be provided are outlined in the attached proposal in the amounts of $42,000 for fiscal year 2007/08, $43,275 for fiscal year 2008/09, and $44,585 for fiscal year 2009/10. The funds allocated to fund the annual audit cost were budgeted at $28,500 and $29,500 for fiscal years 2007/08 and 2008/09, respectively. Agenda Item I . Therefore, a budget amendment in the amount of $13,500 and $13,775 (account number 001-017-44000) for fiscal years 2007/08 and 2008/09, respectively, will be required to fund the additional cost for the annual audit. The increase in audit fees is primarily due to the American Institute of Certified Public Accountant's requirements to implement the new Suite of Risk Assessments. RECOMMENDATION: Staff recommends Council approve the agreement for annual auditing services between Mayer Hoffman McCann P.C., Certified Public Accountants, and the City of Seal Beach for three consecutive years, beginning with the fiscal year ending June 30, 2008 with an option to extend for two additional years, approve budget amendment Nos. 08-16 and 09-01-01, and authorize the City Manager to execute the agreement. . SUBMITTED BY: P. il ~ . 'r--rv.,J Robbeyn ird, CPA Director of Administrative Services NOTED AND APPROVED: D~, City Manager Attachments: A. Resolution approving an agreement between Seal Beach and Mayer Hoffman McCann P.C. B. Resolution approving budget amendments 08-16 and 09-01-01 C. Agreement'for Auditing Services. .. Mayer Hoffman McCann's Proposal for Audit Services (Copy available for review in the City Clerk's Office) . . RESOLUTION NUMBER A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH APPROVING AN AGREEMENT BETWEEN SEAL BEACH AND MAYER HOFFMAN MCCANN P. C. FOR ANNUAL AUDIT SERVICES The City Council of the City of Seal Beach hereby resolves as follows: SECTION 1. The Council hereby approves the agreement between the City 01 Seal Beach and Mayer Hoffman McCann P. C. for auditing services. SECTION 2. The Council hereby directs the City Manger to execute the contract on behalf of the City. SECTION 3. The Council hereby approves a budget amendment In the amount 01 $13,500 and $13,775 forflscal years 2007/08 and 2008/09, respectively. SECTION 4. The City Clerk shall certify to the passage and adoption of this resolution. PASSED, APPROVED and ADOPTED by the City Council 01 the City of Seal Beach at a regular meeting held on the JM!L.dayof April, 2008 by the following vote: AYES: Council member . NOES: Council member ABSENT: Councilmember ABSTAIN: Council member Mayor ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of Seal Beach, CalHornia, do hereby certify that the foregoing resolution is the origlnel copy of Resolution Number on flle in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting thereof held on the 14th day of April . 2008. City Clerk . . RESOLUTION NUMBER A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA, AUTHORIZING BUDGET AMENDMENT NOS. 08-16 AND 09-01-01 FOR ANNUAL AUDIT SERVICES WHEREAS, the fiscal year 200712008 and 2008/09 budgets require budgetery amandments as outiined below: THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: The budget for the Administrative Services Depertment for ProIessional Contract Services is hereby increased as follows: REVlSEDI ADOPTED PROPOSED BUDGET (dill) DESCRIPTION ACCOUNT BUDGET BUDGET AMENDMENT Professional Contract Serv 001-017-44000 $338,500 $350,000 $13,500 2007-08 Professional Contract Serv 001-017-44000 $99,600 $113,775 $13,775 2008-09 . PASSED, APPROVED, AND ADOPTED by the City Council of the City of Seal Beach on the 14th day of ADril .2008 by the following vote: AYES: Council Mambers NOES: Council Members ABSENT: Council Members ABSTAIN: Council Members Mayor ATTEST: City Clerk STATE OF CALIFORNIA} COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Unda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution Is the original copy of Resolution Number _ on file in the offica of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting thereof held on the 14th day of ADril , 2008. . City Clerk . AGREEMENT FOR AUDITING SERVICES THIS AGREEMENT is made and entered into this14th day of April, 2008, by and between the CI1Y OF SEAL BEACH, a municipal corporation, hereinafter referred to as "CITY" and Mayer Hoffman McCann P.C., certified public accountants, hereinafter referred to as "AUDITOR." WIT N E SSE T H: WHEREAS, on January 14, 2008, CI1Y invited bids for an independent audit of its financial statements and records; and WHEREAS, pursuant to said invitation, AUDITOR submitted a bid which was accepted by CI1Y for said professional service; and WHEREAS, AUDITOR is recognized as a competent and qualified certified public accountant, duly authorized to practice and licensed as such by the Califomia State Board of Accountancy. . NOW THEREFORE, for and in consideration of the mutual promises, obligations, and covenants contained herein, the parties herein agree as follows: 1. TERM. The term of this Agreement shall be for a period of three (3) consecutive years, begirining with the fiscal year ending June 30, 2008, with an option to extend for two additional years at the City's discretion. 2. CITY'S OBLIGATIONS. For and in consideration of AUDITOR fumishing service(s) specified in this Agreement, CI1Y shall pay and AUDITOR shall receive in full compensation a total sum not to exceed $42,000, $43,275, and $44,585 for the fiscal years ending June 30, 2008, 2009, and 2010, respectively. Payments to AUDITOR shall be made within thirty (30) days after receipt by CI1Y of invoices from AUDITOR, which shall be rendered not more often than monthly. Special examinations, surveys,' or detailed reports of any nature outside the scope of this Agreement shall be billed separately by AUDITOR and must be specifically authorized in writing by CI1Y in advance of such additional services proposed to be provided. . 3. AUDITOR'S OBLIGATIONS. For and in consideration of payments and agreements hereinafter mentioned to be made and performed by CI1Y, AUDITOR agrees with CI1Y to fumish those services 8S set forth in Attachment 1, Request for Proposal for Auditing Services, attached hereto and incorporated . herein by reference, and to perform as required by this Agreement and the said specifications. . 4. INSURANCE. Contractor shall maintain at all times during the term of this Agreement not less than the types and amounts of insurance coverage listed below issued by insurers listed "B+" or better in Best's Insurance Guide. Contractor shall submit to the City certificates indicating compliance with the following minimum insurance requirements not less than one day prior to the beginning of performance under this Agreement. 1. Worl<er's Compensation Insurance to cover Contractor's employees as required by the Califomia Labor Code. 2. Comprehensive general liability and automobile liability insurance, each with policy limits not less than $1,000,000 for personal injury to anyone person, $1,000,000 for injuries arising out of anyone occurrence, and $500,000 for property damages or a combined single limit of $1,000,000. Each policy of insurance shall: a) Be issued by an insurance company that is admitted to do business in the State of California. b) Be primary to any other similar insurance and, except for the professional liability policy, shall name the City as an additional insured. c) Contain a provision that prohibits cancellation, modification, or lapse without thirty (30) days' prior written notice from insurer to the City. d) Include a severability of interests clause substantially similar to the following: "The insurance afforded by this policy applies separately to each insured against whom a claim or suit is made or suit is brought, except with respect to the limit of the insurer's liability." e) Contain a clause substantially in the following words: "It is hereby understood and agreed that this policy shall not be canceled nor materially changed except upon thirty (30) days' prior written notice to the City of such cancellation or material change as evidenced by a return receipt for a registered letter." f) Cover the Services provided by Contractor pursuant to the terms of this Agreement. 3. Professional Liability Insurance (errors and omissions) with a policy limit not less than $1,000,000 and which shall a) Be issued by an insurance company that is admitted to do business in the State of California. b) Cover the operations of Contractor pursuant to the terms of this Agreement. . The insurance certificate evidencing such insurance shall be submitted to the City for prior review and thereafter the City shall have the right to approve or disapprove any insurance procured by Contractor under the standards of this section. . Procurement of insurance by Contractor shall not be construed as a limitation of Contractor's liability or as full performance of Contractor's duties to indemnify, hold harmless, and defend under this Agreement. Contractor shall not commence the performance of its services under this contract until the above insurance has been obtained and Certificates of Insurance have been filed with the City. 5. INDEMNIFICATION. Audit firm agrees to protect, indemnify, and hold harmless the CITY and its officers, officials, employees and agents from and against all claims, demands and causes of action by consultant's employees or third parties on account of personal injuries or death or on account of property damages arising out of the work to be performed by consultant hereunder and resulting from the act or omissions of consultant, consultant's agents, or employees or subcontractors. 6. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon written approval by the CITY'S Director of Administrative Services. 7. TERMINATION. The CITY retains the right to cancel this agreement without cause by providing written notification to AUDITOR. . 8. INCORPORATION BY REFERENCE. The Request for Proposal for Auditing Services, Attachment 1 hereto, and the proposal submitted by Mayer Hoffman McCann, P.C., on February 11, 2008, Attachment 2 hereto, are hereby incorporated by reference and made a part of this Agreement. 9. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the finai, complete, and exclusive agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein or executed as an amendment hereto, shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 10. CONTRACT ASSIGNMENT. AUDITOR shall not assign, transfer, convey, or otherwise dispose of this Agreement, or its right, title, or interest, or its power to execute such an Agreement to any individual or business entity of any kind without the prior written consent of CITY. . . 11. INDEPENDENT CONTRACTOR. . a. AUDITOR is, and at all times hereafter shall be, an independent contractor of CllY during the entire term of this Agreement. AUDITOR specifically recognizes and acknowledges said status as an independent contractor and not as an employee of CllY. All personnel of AUDITOR shall be employees of AUDITOR and not employees of CllY. AUDITOR shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all withholding taxes. b. AUDITOR shall comply with all Federal and State statutes and regulations relating to the employer/employee relationship including, but not limited to, minimum wage, non-discrimination, equal opportunity, workers compensation, hazardous/unsanitary or dangerous surroundings, the Fair Labor Standards Act 29 USCA Section 201 et ~., and the Immigration Reform and Control Act of 1986 . USCA Section 245(a) et ~. 12. ANTI-DISCRIMINATION. In the performance of the terms of this Agreement, AUDITOR agrees that it will not engage in discrimination in employment of persons because of the age, race, color, sex, national origin or ancestry, or religion of such persons. Violation of this provision may result in the imposition of penalties referred to in Labor Code Section 1735. 13. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: CllY: City of Seal Beach Attn: City Manager 211 8th Street Seal Beach, CA 90740 AUDITOR: Mayer Hoffman McCann P.C. Attn: Mike Harrison, Shareholder 2301 Dupont Drive, Suite 200 Irvine, CA 92612 . . All notices sent pursuant to this Agreement shall be deemed received (1) immediately if served by personal delivery, and (2) on the fifth day after deposited in the custody of the U.S. Postal Service if served by mail. 14. ATTORNEYS FEES. In the event an action is commenced by either party to enforce any rights under this Agreement, the prevailing party shall be entitled to recover reasonable attorney's fees and court costs, in addition to any other relief granted by the Court. 15. CONFLICT OF INTEREST. . a. All information gained by AUDITOR in performance of this Agreement shall be considered confidential and shall not be released by AUDITOR without CITY'S prior written authorization excepting that information which is a public record and subject to disclosure pursuant to the Public Records Act, government Code Section 6250 et sea. AUDITOR, its officers, employees, agents, or subcontractors, shall not voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the project or cooperate in any way with a party who may be adverse to CITY or whom AUDITOR reasonably should know may be adverse in any subsequent litigation. AUDITOR shall incur no liability under this Agreement for materials submitted by it which are later released by CITY, its officers, employees, or agents. AUDITOR shall also incur no liability for statements made by it at any public meeting, or for any document released by it for which prior written CITY authorization was obtained. If AUDITOR or any of its officers, employees, consultants, or subcontractors does voluntarily provide information in violation of this Agreement, CITY has the right to reimbursement and indemnity from AUDITOR for any damages caused by AUDITOR'S conduct-including attorney's fees. AUDITOR shall promptly notify CITY should AUDITOR, its officers, employees, agents or subcontractors be served with any Summons, Complaint, Subpoena, Notice of Deposition, Request for Documents, Interrogatories, Request for Admissions or other discovery requests from any party regarding this agreement and the work performed thereunder. CITY retains the right, but not the obligation, to represent AUDITOR and/or to be present at any deposition, hearing, or similar proceeding. AUDITOR agrees to cooperate fully with CITY and to provide CITY with the opportunity to review any response to discovery requests provided by AUDITOR. However, CITY'S right to review any such response does not imply or mean the right by CITY to control, direct, or rewrite said response. . CITY warrants that AUDITOR will have fully met the requirements of this provision by obtaining CITY'S written approval prior to providing documents, testimony, or declarations; Consulting with CITY before responding to a Subpoena . or court order. in the case of depositions upon providing Notice to Cl1Y of same; or providing CITY opportunity to revIew discovery responses prior submission. For purposes of this section, a written authorization from CITY shall include a "faxed" letter. b. AUDITOR covenants that neither they nor any officer or principal of their firm have any interests, nor shall they acquire any Interest, directly or indirectly which wlll conflict In any manner or degree with the performance of their services hereunder. AUDITOR further covenants that in the performance of thfs Agreemen~ no person having such interest shall be employed by them as an officer, employee, agen~ or subcontractor. AUDITOR further covenants that AUDITOR has not contracted with nor is performing any services directly or indirectly, with the developer(s) and/or property owner(s) and/or firm(s) and/or partnerships owning property in the CITY or the study area and further covenants and agrees that AUDITOR and/or its subcontractors shall provide no service or enter into any contract with any developer(s) and/or property owner(s) ai1d!or flrm(s), and/or partnership(s) owning property in the CITY and/or study area prior to completion of this Agreement. 16. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and AUDITOR hereby represent and covenant that each Individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party. . IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. CITY OF SEAL BEACH: AUDITOR: by:/?J~44-( A, ~ ~ J, Jt.-u.. ~ / .u..... By: David N. Carmany City Manager ATTEST: APPROVED AS TO FORM: City Clerk Quinn Barrow City Attorney .