HomeMy WebLinkAboutCC Resolution 7926 (Audit Services)RESOLUTION NO. 7926
A RESOLUTION AUTHORIZING THE SIGNING OF A
PROPOSAL WITH DELOITTE HASKINS & SELLS
THE CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLVES as follows:
The MAYOR and CITY CLERK are authorized to execute, on behalf of
the City of San Rafael, a contract, lease or agreement with
Deloitte Haskins & Sells for Audit Services
for one year - 1988/89
(Subject to Approval by the City Attorney)
a copy of which is hereby attached and by this reference made
a part hereof.
I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, hereby
certify that the foregoing resolution was duly and regularly
introduced and adopted at a REGULAR meeting of the City Council
of said
City held
on
MONDAY
the
20th day of
MARCH
, 1989 ,
by
the following
vote,
to wit:
AYES: COUNCILMEMBERS:Boro, Breiner, Frugoli, Thayer & Mayor Mulryan
NOES: COUNCILMEMBERS:None
ABSENT: COUNCILMEMBERS:None
> . _
JEANIX X.,` LEONCINI City Clerk
. � -7
PROFESSIONAL SERVICES AGREEMENT
This Agreement is made in San Rafael, California as of April 1,
1989 by and between the City of San Rafael (hereafter referred
to as "City") and Deloitte Iiaskins & Sells (i,eieafter referred
to as "Contractor"), who agree as follows:
1. Scope of Work The Contractor will conduct an audit of the
books of accounts, records, and transactions of the City of
San Rafael as of June 30, 1989 in accordance with generally
accepted auditing standards, which will include a review of
the system of internal control and tests of transactions to
the extent necessary for this review. The object of the
audit is expression of an opinion of the City's financial
statements.
The City has the responsibility for the proper recording of
transactions in the books of account, for safekeeping of
assets, and for the substantial accuracy of the financial
statements. The City will provide assistance by City
personnel, including the preparation of schedules and
analysis of accounts.
2. Compensation City agrees to pay Contractor the amounts
described in Exhibit A, a copy of which is attached and
incorporated herein by reference.
3. Term The effective date of this Agreement is May 1, 1989
through June 30, 1990 unless terminated sooner as provided
herein.
4. Termination This Contract may be terminated by the City at
its sole discretion upon five days' advance written notice,
thereof, to the Contractor or cancelled immediately by
written mutual consent.
5. General Provisions
(a) Independent Contractor At all times during the term of
this Contract, Deloitte Haskins & Sells shall be an
Independent Contractor and shall not be an employee of
the City of San Rafael. City shall have the right to
control Contractor only insofar as the results of
Contractor's services rendered pursuant to this
Agreement; however, City shall not have the right to
control the means by which Contractor accomplished
services rendered pursuant to this Agreement.
7��� COPY
(b) Insurance
(1) Public Liability During the term of this Agreement,
Contractor shall maintain in full force and effect a
policy of public liability insurance with minimum
coverage as follows: $1,000,000 for injury to one
person in any one occurrence; $1,000,000 aggregate; and,
$50,000 for property damage. Contractor shall cause the
City, its officials, and employees to be named on all
liability policies described above as insured as
respects: (1) activities performed for the City by or
on behalf of the named insured; (2) products and
completed ooerations of the Named Insured; and (3)
premises owned, leased or used by the Named Insured.
(2) Workers' Compensation During the term of this
Agreement, Contractor shall fully comply with the terms
of the law of California concerning workers'
compensation. Said compliance shall include, but not be
limited to, maintaining in full force and effect one or
more policies of insurance insuring against any
liability Contractor may have for worker's compensation.
Such policy shall include a waiver of subrogation
endorsement in favor of the City.
(c) Contractor Not Agent Except as City may specify in
writing, Contractor shall have no authority, express or
implied, to act on behalf of City in any capacity
whatsoever as an agent. Contractor shall have no
authority, express or implied, pursuant to this
Agreement to bind City to any obligation whatsoever.
(d) Assignment Prohibited No party to this Agreement may
assign any right or obligation pursuant to this
Agreement. Any attempt of purported assignment of any
right or obligation pursuant to this Agreement shall be
void and of no effect.
(e) Indemnity and Hold Harmless Contractor agrees to hold
harmless, indemnify, including attorneys fees, and
defend City, its officers, agents, and employees from
any and all claims, loss, intentional acts, or omissions
arising from Contractor's work performed under this
Agreement.
City agrees to hold harmless, idemnify, including
attorneys fees, and defend Contractor, its officers,
agents, and employees from any and all claims, loss
liability, and damaqes arising from its negligent or
intentional acts or omissions arising from City's
activities related to this Agreement.
-2-
(f) Equal Employment Opportunity. During the performance of
this Agreement, Contractor, for itself, its assignees
and successors in interest, agree as follows:
(1) Compliance with Regulations: Contractor shall
comply with the Executive Order 11246 entitled "Equal
Employment Opportunity,: as labor regulations (41
C.F.R. Part 60), hereinafter referred to as the
"Regulations."
(2) Nondiscrimination: Contractor, with regard to the
work performed by it after award and prior to completion
of the grounds of race, color, religion, sex or national
origin in the selection and retention of subcontractors,
including procurements of materials and leases of
equipment.
(g) Notices: All notices herein provided or required to be
given, or which may be given, in connection herewith by
either party to the other shall be in writing and be
served by personal delivery or by mail, and shall be
deemed to have been given when deposited in the United
States mail, postage prepaid, and addressed as follows:
To City: City of San Rafael
C/O Finance Director
1400 Fifth Avenue
P.O. Box 60
San Rafael, CA 94915-0060
To Contractor: Deloitte Haskins & Sells
300 Lakeside Drive
Oakland, CA 94612
or to such address as may from time to time be
designated by either party in the manner herein provided
for the giving of notices.
(h) Ownership of Documents: All statements, documents or
other materials produced by Contractor for City pursuant
to this Agreement shall conform to standards set b City►°l
and shall_ be the exclusive prope y of City. -� 1�'c'
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(i) Whole Ag�eement: This Agreement and all exhibits shall
constitute the entire Agreement of the parties. No
modification or amendment of this Agreement shall be
valid unless it is in writing and executed by both
parties.
MIM
(j) Arbitration: Contractor and City agree to submit any
claims arising under this Agreement, or any disputes
concerning the terms and provisions of this Agreement,
to binding arbitration according to the rules of the
American Arbitration Association. The arbitrator is
empowered to award attorney fees to the prevailing
party.
Executed as of the day and year first above stated.
ATTEST:
T C ER
%CLK
Jeanne M. Leoncini
APPROVED AS TO FORM:
CI
ATTORNEY -
Gary T. Ragghianti
CITY OF SAN RAFAEL
A Municipal Corporation
B y -►e+--
awrence E. Mulr�an
Title: Mayor
Date: March 20, 1989
DELOITTE HASKINS & SELLS
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Title: P.J. _
Date: O �-3 _ 11S')
MW
Deloilte
Haskins+Suds
EXHIBIT A
Mr. Ransom Coleman
Finance Director - Treasurer
City of San Rafael
1400 5th Avenue, Room 204
San Rafael, California 94901
Dear Randy,
300 Lakeside Drive, Suite 2700
Oakland, California 94612-3688
(415) 273-2300
Telex: 176470
ITT Telex: 4995708
March 13, 1989
It is with pleasure that we propose our fees for the audit of
the financial statements of the City of San Rafael for the
fiscal year ended June 30, 1989. Below I have listed the
various reports that we issue on behalf of the City, the fees
for last year and the proposed fees for the current year.
Actual Proposed
FY 87-88 FY 88-89
General purpose
-
financial statements
$22,175
$23,500
Package savings (a)
(2,000)
(2,100)
Net - general audit
20,175
21,400
Redevelopment Agency
5,400
5,750
Single audit
3,300
3,500
Child Development Grant
3,150
3,300
Office of Criminal Justice
Planning Grant
825
900
Transportation Development Act
500
550
$33,350
$35,400
(a) Represents the reduced cost of performing all audits
concurrently (certain audit procedures would be repeated
if eacl, audit- w=,=e performed independent of other
audits). Since the single audit, component unit, and
fund financial statement audits require a focusing of
audit scope (as compared to the general audit), we have
allocated this savings to the general audit. At your
request, such allocations could be made to the other
audits. Should any of the other audits no longer be
performed as part of this package, such an allocation
rvruld deed to be made to arrive at an adjusted cost for
the general audit.
Mr. Ransom Coleman March 13, 1989 2
These fees represent an increase of 6% over the previous year.
It is possible that two of these reports may not be required as
the City may receive $100,000 federal financial assistance and
may not receive any Transportation Development Act funds. Our
fees would be reduced accordingly.
As you know, our audits for the past three years have taken
more time than we anticipated when we proposed to do the work
in 1936. We estimated that we would wake approximately $40 per
hour but have only realized $21, $22 and $29 in each of the
last three years. To achieve a $40 per hour rate, based on
last year's 1150 total hours, we would need a fee of $46,000.
However, because of our desire to continue to serve the City of
San Rafael we are proposing a modest 6% increase in fees.
In order to increase our fees per hour toward the market rate
for governmental entities of $37 to $40 per hour, we will need
assistance from the City's accounting staff to reduce our work
in the areas of fund balance and trustee accounts. In the 1988
audit we spent 45 hours and 60 hours in these two areas
respectively. Our proposed fee for 1989 assumes that beginning
fund balances and trustee accounts will be reconciled by your
staff. If you wish us to reconcile these areas for you, we
will bill you for accounting services at the rate of $40 per
hour.
To provide continuity in our service to the City we plan to
have Lisa Pantages return as our senior accountant responsible
for overseeing the day-to-day work of our staff accountants.
In order to provide timely information to the City Council and
senior City Management we will issue the Child Development
Grant report by October 31, 1989 and the other reports required
by the City by November 15, 1989.
If there is any further information you require, please let me
know.
Best regards,
William P. O'Neill