HomeMy WebLinkAboutReso. 1987 - 150 - Agreement for professional services between the city of redding and nystrom & company, and authorizing the may to sign same 410 411.-
RESOLUTION NO. i2-7-15b
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN
THE CITY OF REDDING AND NYSTROM & COMPANY, AND AUTHORIZING
THE MAYOR TO SIGN SAME.
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 the Agreement for Professional Services between the City
of Redding and Nystrom & Company, a true copy of which is
attached hereto and incorporated herein by reference; and
2. That the Mayor of the City of Redding is hereby
authorized and directed to sign said Agreement and all necessary
documents on behalf 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 on
the aforesaid documents, when appropriate.
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 May , 1987, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Fulton, Gard, Johannessen, & Dahl
NOES : COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Carter
ABSTAIN: COUNCIL MEMBERS: None
C=2)41.-4,1/4.-444..)MIKE DAHL, Mayor
City of Redding
ATTEST: .4' /� FORM APPROVED:
���t7.? , ! ��
ET 'EL A. NICHOLS, Cit Clerk tRANDALL A. HAYS, City Attorney
by Connie Strohmayer, Deputy by Walter P. McNeill , Deputy
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AGREEMENT FOR PROFESSIONAL SERVICES
THIS AGREEMENT made and entered into this day of
May, 1987, 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" ;
WITNESSET H:
WHEREAS, California law requires that the financial affairs
of a general law city be audited annually; and
WHEREAS, Auditor is comprised of Certified Public
Accountants licensed by the State of California who possess the
experience, skill and expertise to perform the financial
examination;
NOW, THEREFORE, in consideration of the mutual promises and
covenants hereinafter set forth, it is MUTUALLY UNDERSTOOD and
AGREED as follows:
A. SCOPE OF WORK
1 . The examination of the City' s financial statements
shall be of the type described by the following:
Audits of State and Local Governmental Units
as amended by
Statement of Position 80-2
American Institute of Certified Public Accountants
Statement No. 1
National Council on Governmental Accounting
•
as adopted by -
Statement No. 1
Governmental Accounting Standards Board.
2. The examination shall be conducted in accordance with
generally accepted auditing standards as presented in:
Statements on Auditing Standards
American Institute of Certified Public Accountants
Standards for Audit of Governmental Organizations ,
Programs , Activities and Functions
Comptroller General of the United States.
3. The examination and resultant reports shall be in
compliance with the requirements of the Single Audit Act of 1984 ,
Federal Public Law 98-502 , and the implementing regulations
prescribed in the following:
Circular No. A-128 , Audits of State and Local
Government
Office of Management and Budget
Compliance Supplement for Single Audits of State and
Local Governments
Comptroller General of the United States.
In addition, the examination and resultant report on the
operations of the Redding Area Bus Authority shall be in
compliance with the requirements of Section 6667 of the
California Administrative Code.
4 . The examination shall result in the expression of an
opinion in compliance with Rule 58. 1 of the State Board of
Accountancy. This opinion shall be expressed on the City' s
combined financial statements (General Purpose Financial
Statements) and on the supplemental information presented, in
relation to the combined financial statements taken as a whole.
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In addition, the examination shall result in the expression
of separate opinions on the component unit financial reports of
the Redding Redevelopment Agency and the Redding Area Bus
Authority.
5. The examination shall cover the financial activity of
the City and of the separate legal entities which are a part of
the City' s reporting entity, as defined by Statement No. 3 of the
National Council on Governmental Accounting. The funds and
account groups currently considered necessary to present the
financial activity of the City' s reporting entity are as follows:
Governmental Fund-Types:
General Fund 1
Special Revenue Funds 9
Debt Service Funds 2
Capital Projects Funds 2
Proprietary Fund-Types:
Enterprise Funds 7
Internal Service Funds 5
Fiduciary Fund-Types:
Agency Funds 4
Account Groups:
General Fixed Asset 1
Long-Term Debt 1
This list includes the addition of one (1) Special Revenue Fund
and four (4) Internal Service Funds to the funds presented in the
June 30, 1986, Annual Report. City will continue to make
additions and/or deletions to this list and to the component
units included in the reporting entity as deemed necessary.
6. If conditions are discovered which lead to the belief
that material errors, defalcations, or other irregularities may
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exist, or if any other circumstances are encountered that require
extended services , Auditor shall promptly advise the Director of
Finance and/or the City Manager of City. No extended services
shall be performed unless authorized by a separate contractual
agreement or by an amendment to the existing agreement.
B. REQUIRED REPORTS
1 . The following reports shall be required for each fiscal
year of the contract period:
(a) Reports on the Examination of the Financial Statements.
Auditor shall present this type of report for the
financial statements of the City ' s reporting entity,
the Redding Redevelopment Agency, and the Redding Area
Bus Authority.
The scope of the reports and the Auditor' s
opinions presented with such reports shall comply with
the provisions of Scope of Work, Section A above.
(b) Report on the Study and Evaluation of Internal Control
Systems and Report on Compliance .
Auditor shall present these reports regarding the
activities of the City' s reporting entity.
The reports shall be in compliance with the
provisions of the Single Audit Act of 1984 , OMB
Circular No. A-128 , and the related Compliance
Supplement for Single Audits of State and Local
Governments promulgated by the U. S. Comptroller
General.
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Specific format and requirements of these reports
shall be coordinated with the City' s cognizant agency,
the Department of Housing and Urban Development.
A separate report on the compliance of Redding
Area Bus Authority operations with the Transportation
Development Act, the California Administrative Code,
and the rules and regulations of the Shasta County
Regional Transportation Planning Agency shall be
presented as prescribed by Section 6667 of the
California Administrative Code.
(c) Management Letters.
Auditor shall present reports of this type for the
reporting entity of City, the Redding Redevelopment
Agency, and the Redding Area Bus Authority.
These reports shall set forth (1) findings and
recommendations for improvements in the systems of
internal control; (2) findings and recommendations for
improvements in accounting systems; (3) findings of
noncompliance with laws, rules and regulations; and (4)
any other material items coming to the attention of
Auditor during the course of the examination.
(d) Other Reports :
Auditor shall present other reports as required by
the long-term debt agreements of City, or any of its
component units.
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(e) Financial Statement Preparation.
City will prepare the Comprehensive Annual
Financial Report (CAFR) . Auditor will not prepare the
statements, but will trace their audited balances into
the completed CAFR prepared by City.
C. DELIVERY OF REPORTS
The reports required by this Agreement shall be delivered
to: Director of Finance
City of Redding
760 Parkview Avenue
Redding, California 96001-3396.
Delivery will be made no later than November 24 each year.
D. EXIT INTERVIEW
An exit conference shall be conducted with Auditor and
Finance Management 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.
E. TERM AND TERMINATION
1. This Agreement shall commence when executed by the
Mayor of City and by the Auditor, and shall continue until
delivery of the final reports for the fiscal year ending June 30 ,
1989, to the Director of Finance of City.
2 . The City shall reserve the right to extend the term of
this Agreement for two additional one-year terms.
3. This Agreement may be cancelled without cause by City
upon ninety (90) days ' advance written notice to Auditor.
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Auditor shall be paid for any satisfactory work completed as to
the time the notice of cancellation is received by Auditor.
4 . Auditor shall provide City at least ninety (90) days°
advance written notice of its intent to terminate this Agreement.
F. TERMINATION OF CONTRACT FOR CAUSE
1 . If, through any cause, Auditor shall fail to fulfill
its obligations under this Agreement in a timely and proper
manner, or if Auditor shall violate any of the covenants, agree-
ments or stipulations of this Agreement, City shall thereupon
have the right to terminate this Agreement by giving written
notice to Auditor of such termination, and specifying the
effective date thereof, at least five (5) days before the
effective date of such termination. In such event, all finished
or unfinished statements and reports 'prepared by Auditor under
this Agreement shall, at the option of City, become the property
of City, and Auditor shall be entitled to receive just and
equitable compensation for any work satisfactorily completed
hereunder.
2. Notwithstanding the above, Auditor shall not be
relieved of liability to City for damages sustained by City by
virtue of any breach of this Agreement by Auditor, and City may
withhold any payments to Auditor for the purpose of set-off until
such time as the exact amount of damages due City from Auditor is
determined.
G. COMPENSATION AND BILLING
1 . Compensation for the work to be performed shall be
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determined based on actual hours worked multiplied by Auditor' s
hourly rates for each staff classification. Such compensation
shall not exceed the following amounts per fiscal year:
Fiscal Year Ending:
June 30, 1987 $31,000
June 30, 1988 32, 500
June 30 , 1989 34 ,000 .
2 . Auditor may request progress payments. Such payments
shall be for work actually performed, and shall be based on
Auditor' s hourly rates for each staff classification. In no
event shall the combination of all progress payments exceed
seventy-five percent (75%) of the total compensation.
3. Final payment will be made after successful completion
of all services and reports to the satisfaction of the Department
of Finance of City.
4 . Progress payments and final billings shall be in a form
satisfactory to identify the audit costs attributable to each
entity, grant, or fund, which will• be needed to assist in
charging each organization for their share of the audit costs.
Such billings will reflect the category of tasks completed, the
persons who performed them, and the number of hours to perform
the tasks.
5 . In the event that extra work is authorized by City, the
hourly rates applicable to such work shall be at Auditor' s
standard rate for the individual performing said work.
H. PERSONNEL
1 . It is required that at least fifty percent (50%) of the
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prior year' s audit staff repeat for the following year' s audit.
2 . Auditor represents that it has or will secure, at its
own expense , all personnel required in performing the services
under this Agreement. Such personnel shall not be employees of
or have any contractual relationship with City.
3. All of the services required hereunder will be
performed by Auditor or under its supervision, and all personnel
engaged in the work shall be fully qualified and shall be
authorized or permitted under State and local laws to perform
such services.
4. None of the work or services covered by this Agreement
shall be subcontracted without the prior written approval of
City. Any work or services subcontracted hereunder shall be
specified by written contract or agreement, and shall be subject
to each provision of this Agreement.
5. Auditor will provide adequate supervision of all
personnel engaged by Auditor.
I. RETENTION OF RECORDS
Auditor shall retain the audit work papers and related audit
reports for a minimum of five (5) years, and shall allow City
staff, the staff of the General Accounting Office of the United
States and/or cognizant agency to review any and all such work
papers, documents and reports related to the audit.
J. FINDINGS CONFIDENTIAL
All of the reports, information, data, etc. , prepared or
assembled by Auditor under this Agreement are confidential, and
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Auditor agrees that they shall not be made available to any
individual or organization without the prior written approval of
City.
K. AUDITOR PROFILE
1 . Auditor shall be properly licensed to practice as a
certified public accounting firm.
2. Auditor shall meet the independence requirements of the
Standards for Audit of Governmental Organizations, Programs,
Activities and Functions published by the Comptroller General of
the United States.
L. INTEREST OF OTHER LOCAL PUBLIC OFFICIALS
No member of the governing body of the locality, nor other
public official of such locality, who exercises any functions or
responsibilities in connection with the planning and carrying out
of any of the terms , covenants and conditions of this Agreement,
shall have any personal financial interest, direct or indirect,
in this Agreement, and Auditor shall take appropriate steps to
assure compliance.
M. INTEREST OF AUDITOR AND ITS EMPLOYEES
Auditor covenants , for itself and its employees , that it
presently has no interest, and shall not acquire any interest,
direct or indirect, which would conflict in any manner or degree
with the performance of its services hereunder. Auditor further
covenants that in the performance of this Agreement, no person
having any such interest shall be employed by it.
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N. INSURANCE REQUIREMENTS
1 . Auditor shall obtain and continuously maintain compre-
hensive general liability insurance necessary to protect the
public, with limits of liability not less than $500, 000 Combined
Single Limit Bodily Injury and Property Damage, with appropriate
coverage endorsements to include broad-form property . damage, auto
and non-owned auto, and personal injury. Such insurance shall
include City personnel, its elected officials, officers, agents
and employees, as additional insureds, and shall not be reduced
or cancelled without thirty (30) days ' prior written notice being
given to City. Said insurance shall contain a "Cross Liability"
endorsement, which shall read as follows:
"The inclusion of more than one insured under this policy
shall not affect the rights of any insured as respects any
claim, suit or judgment made or brought by or for any other
insured, or by or for any employee of any other insured.
This policy shall protect each insured in the same manner as
though a separate policy had been issued to each, except
that nothing herein shall operate to increase the company' s
liability beyond the amount or amounts for which the insurer
would have been liable had only one insured been named. "
2 . Auditor shall provide City with a Certificate of
Insurance or, upon written request of City, a certified copy of
the policy as evidence of insurance protection provided.
Insurance Certificates provided by any insurance company or
underwriter containing the language "endeavor to, " "but failure
to mail such notice shall impose no obligation or liability of
any kind upon the company, " or similar language, are
unacceptable.
3. Auditor shall obtain and continuously maintain workers '
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compensation insurance to cover all employees of Auditor.
4 . Auditor shall also maintain throughout the term of this
Agreement Combined Single Limit Accountants Professional Errors
and Omissions coverage of $250 , 000.
0. INDEPENDENT CONTRACTOR
The relationship of Auditor to City will be that of
independent contractor, and not agent or employee.
P. ASSIGNMENT
City will not recognize any assignment of funds to be
received under this Agreement by Auditor.
Q. OFFICE HOURS
Auditor shall perform all services during normal office
hours of City.
R. NOTICE
Any notices or demands that may be - given by either party
hereunder, including notice of default and notice of termination,
shall be deemed to have been fully and properly given when made
in writing, enclosed in a sealed envelope and deposited in the
United States Post Office, certified mail, postage prepaid,
addressed as follows: To City c/o Director of Finance, City of
Redding, 760 Parkview Avenue, Redding, California 96001-3396; and
to Auditor at 1726 Court Street, Redding, California 96001.
R. CEQA
It has been determined that this matter is not subject to
the provisions of the California Environmental Quality Act.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement in the presence of their officers duly authorized in
that behalf on the day and year first above written.
CITY OF REDDING
By:
MIKE DAHL, Mayor
NYSTROM & COMPANY
By:
L. BRUCE ROBERTS, Partner
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney
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