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Home My WebLink AboutReso 1990-318 - Authorizing the mayor to sign amendment No. 1 r All RESOLUTION NO. ,C/ "NlJ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO SIGN AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SERVICES DATED MAY 19 , 1987 , BETWEEN THE CITY OF REDDING AND NYSTROM & COMPANY. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves Amendment No. 1 to the Agreement for Professional Services between the City of Redding and. Nystrom & Company, a i true copy of which is attached hereto and incorporated herein by reference. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Amendment on behalf of the City Council of the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 19th. day of June , 1990 , and was duly adopted at said meeting by the following vote: AYES : COUNCIL MEMBERS : Arness, Dahl , Fulton, Moss, Buffum NOES : COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS: None _ ANC / UFFUM 7•Mayor ' Cit of Redding ATTEST: FORM PPROVED :�j (re ETHEL A. NICHOLS , City Clerk RA DALL A. HAYS , pity Attorney • iiAMENDMENT NO. 1 TO THE I AGREEMENT FOR PROFESSIONAL SERVICES j '. DATED MAY 19 , 1987 1 , BETWEEN THE CITY OF REDDING AND NYSTROM & COMPANY THIS AMENDMENT to the Agreement for Professional Services made and entered into this day of June, 1990, by and between the CITY OF REDDING, a Municipal Corporation organized under the general laws of the State of California, hereinafter referred to as "City, " and NYSTROM & COMPANY, Certified Public Accountants, whose principal office is located in Redding, California, hereinafter referred to as "Auditor" ; WITNESSETH: WHEREAS, City wishes to exercise its right, as set forth in paragraph E(2) of the AGREEMENT FOR PROFESSIONAL SERVICES (AGREEMENT) dated May 19, 1987 between City and Auditor to extend the term of the original agreement for an additional one-year term, and such an extension is acceptable to Auditor; it is mutually understood and agreed as follows: A. Extension of Agreement 1. Pursuant to paragraph E (2) of the AGREEMENT, it is hereby understood and mutually agreed the AGREEMENT FOR PROFESSIONAL SERVICES will be extended one additional year, so that the AGREEMENT shall continue until delivery of the final reports for the fiscal year ending June 30, 1990. 1 B. Modifications to Agreement I� 1. It is hereby mutually agreed to modify paragraph A(6) of CI; the original AGREEMENT to read as follows: "If conditions are discovered which lead to the belief that material errors, defalcations, or other irregularities may exist, II or if any other circumstances are encountered that require extended services, Auditor shall promptly advise the Director of Finance and/or the City Manager and/or the Audit Committee, depending on the circumstances involved. No extended services shall be performed unless authorized by a separate contractual agreement or by an amendment to the existing agreement. " 2 . It is hereby mutually agreed to modify paragraph C of the original AGREEMENT as follows: r. dio I ° -2- The reports, except any required communications or management letters, required by this Agreement shall be delivered to: Director of Finance City of Redding 760 Parkview Avenue Redding, California 96001-3396 Any required communications or management letters issued in connection with this agreement will be delivered to the Audit Committee. I'. 3 . It is hereby mutually agreed to modify paragraph D of the original AGREEMENT to read as follows: "An exit conference shall be conducted with Auditor and Finance Management and the Audit Committee at least two (2) weeks prior to the preparation of the final drafts of any reports. City shall be afforded adequate opportunity to respond to all findings and to have such responses included in the reports, where applicable. " I 4 . It is hereby mutually agreed to modify paragraph H of the original AGREEMENT by adding the following sentence (6) after sentence (5) , which shall read as follows: "6. City Finance Department hereby agrees to provide an individual to coordinate the audit with Auditor whose ability and training is comparable to that of the individual performing that function the prior year. Auditor hereby agrees to provide an li individual to supervise the audit whose ability and training is comparable to that of the individual performing that function the prior year. " 5. It is hereby mutually agreed to modify paragraph G of i� the original AGREEMENT by adding the following sentence (6) after sentence (5) , which shall read as follows: "6. Auditor reserves the right to negotiate a revised i . maximum fee should any government agency or professional organization materially change an entity's auditing or reporting requirements after this agreement or any amendments thereto have been signed by both parties. " 1' • -3- • C. ALTERNATIVE MODIFICATIONS TO THE AGREEMENT WHEREAS, City and Auditor have discussed various alternative options with respect to the scope of the work to be performed by Auditor under this amendment to extend the agreement for an additional one year period, and whereas, City and Auditor both desire to allow City to determine what the scope of the services to be performed by Auditor will be under this amendment, it is hereby mutually understood and agree that Auditor will perform either of the following two basic options, as specified and agreed to by both parties: 1. OPTION ONE a. Scope of Work Under Option One, Auditor shall perform the same services as set forth in paragraphs A and B in the original AGREEMENT, as amended by paragraphs A and B of this Amendment. b. Compensation Compensation for the work to be performed under Option One of this Amendment shall be determined based on actual hours worked multiplied by Auditor's hourly rates for each staff classification. Such compensation shall not exceed the following amounts as detailed below: Fiscal year ending June 30, 1990 Maximum fee City of Redding (CAFR) $ 27, 600. 00 Redding Redevelopment Agency (CUFR) 4 , 700. 00 Redding Area Bus Authority (CUFR) 5, 200. 00 li $ 37 , 500. 00 2 . OPTION TWO a. Scope of Work Under Option Two, Auditor' s scope of work as set forth in paragraph' s A and B of the original AGREEMENT would be expanded to include the following additional services: 1 III 110. -4- 1. Auditor shall compile the combined statements, combining statements and footnote disclosures for the City of CI Redding and the Redding Redevelopment Agency and the Redding Area Bus Authority. Auditor will provide print-ready originals to the City of Redding for these sections of the CAFR and CUFR' s. 2 . The City Finance Department shall provide completed worksheets of account balances sufficient in quality to allow Auditor to prepare the financial statements. In addition, it is understood that these worksheet balances will represent final balances. If a significant number of changes are made to the worksheet balances by the Finance Department that require Auditor to modify the financial statements, Auditor may charge City for 11 the time, at standard hourly rates, and any out-of-pocket expenses for the required changes. 3 . City shall provide completed trial balances for Redding Redevelopment Agency and Redding Area Bus Authority subject to the same provisions as in paragraph 2 (a) (2) above. 4 . City shall complete the general ledger by September 15 and provide Auditor with the required worksheets by October 15. Auditor will submit a print-ready copy by the later of November 15 or thirty days after the City' s delivery of the worksheets. 1. 5. The Finance Department shall prepare the data required for the cash and investment footnotes for the City' s CAFR and for the CUFR' s of Redding Redevelopment Agency and Redding Area Bus Authority. b. Compensation 1. Compensation for the work to be performed under Option Two of this Amendment shall be determined based on actual hours worked multiplied by Auditor's standard hourly rates for each staff classification. Such compensation shall not exceed the following amounts as detailed below: Fiscal year ending June 30, 1990 Maximum fee City of Redding (CAFR) $ 33 , 300. 00 Redding Redevelopment Agency (CUFR) 6, 200. 00 Redding Area Bus Authority (CUFR) 6, 500. 00 $ 46 , 000. 00 11 411 1i' -5- ; „ 3 . INDEPENDENT SELECTION OF OPTIONS It is mutually understood and agreed that City reserves the right to select Option One or Option Two independently for the 1:4 City of Redding CAFR, the Redding Redevelopment Agency CUFR, and the Redding Area Bus Authority CUFR and that the maximum fee for the various options will be determined individually as set forth in paragraph 1 (b) and/or 2 (b) 1 above. It is also mutually understood and agree that City will inform Auditor in writing as to its choice of Options for the CAFR and both CUFR' s on or before October 15. IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Agreement for Professional Services in the presence of their officers duly authorized in that behalf on the. day and year first above written. I� L. CITY OF REDDING By: NANCY BUFFUM, Mayor NYSTROM & COMPANY II By: L. BRUCE ROBERTS, Partner ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: i ' RANDALL A. HAYS, CITY ATTORNEY