Loading...
HomeMy WebLinkAboutBONDI - CONTRACT - RFP - P905 AUDITING SERVICES (2)PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into the day and year set forth below, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal Corporation, hereinafter referred to as the "City' and BONDI & CO. LLP, a company, hereinafter referred to as 'Professional'. ATj" l*S"1 r:� In consideration of the mutual covenants and obligations herein expressed, it is agreed by and between the parties hereto as follows: 1. Scope of Services. The Professional agrees to provide services in accordance with the scope of services attached hereto as Exhibit "A", consisting of two (2) pages, and incorporated herein by this reference. 2. Time of Commencement and Completion of Services. The services to be performed pursuant to this Agreement shall be initiated within thirty (30) days following execution of this Agreement. Services shall be completed no later than May 31, 2004 for the initial term of the Agreement and May 31 st of each year for which the contract is renewed. Time is of the essence. Any extensions of the time limit set forth above must be agreed upon in writing by the parties hereto. In addition, at the option of the City, the Agreement may be extended for additional one year periods not to exceed four (4) additional one year periods with fees and costs not to exceed those set forth in Exhibit B consisting of three (3) pages, and incorporated herein by this reference. Written notice of renewal shall be provided to the Professional and mailed no later than ninety (90) days prior to contract end. 3. Early Termination by City. Notwithstanding the time periods contained herein, the City may terminate this Agreement at any time without cause by providing written notice of PSA 10/97 1 City Council Audit Committee City of Fort Collins Page 3 - Dollar Cost Bid APPENDIX B SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR ADDITIONAL SERVICES Nature of Service to be Provided Maximum All -Inclusive Total Price 2003 Audits of City, Poudre Fire Authority and North Front Range MPO* $ 61,500 2004 Audits of City, Poudre Fire Authority and North Front Range MPO* 62,000 2005 Audits of City, Poudre Fire Authority and North Front Range MPO* 65,000 2006 Audits of City, Poudre Fire Authority and North Front Range MPO* 68,000 2007 Audits of City, Poudre Fire Authority and North Front Range MPO* $ 71,000 Issuance of Consent Letter for a Bond Issue No Charge ADDITIONAL SERVICES: To be requested on a change order. Verification of Arbitrage at the End of Each Five -Year Period of a Bond Issue $ 5.500 Verification of Bond Escrow for a Bond Issue $ 2,500 Agreed Upon Procedures Performed in Relation to City's Cable TV Franchise Agreement with Service Provider $ 8,000 *Including Single Audits for the City and the North Front Range MPO. tBONDI & Co. LLP CERTIFIED PUBLIC ACCOUNTANTS MANAGEMENT CONSULTANTS PSA 10/97 10 City Council Audit Con unium City of Part Collins Page 4 - Dollar Cast Bid APPENDIX C� SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR ADDITIONAL SERVICES NOT SPECIFIED IN APPENDIX F Standard Quoted Hourly Rates Hourly Parom $ 190 - $ 273 $ 190 - $ 273 supearvism $ 115 - $ 180 $ 115 - $ 180 Consultants $10U - $ 160 $ 100 - $ 160 Staff $ 40 - $ 93 $ 40 - $ 93 Out of Packet Expenses: Mesh and lodging Transportation (Mileage) Other (specify) 111 This sdwftk reflects the hourly rates for any additional work outside the scope of this RFP if the City requires it. BONDI & Co. w s cr,"URatu r�rawc xrx cwura►t+rs MAruceslaNr CONSUM U PSA 10/97 11 Exhibit "C" CONFIDENTIALITY IN CONNECTION WITH SERVICES provided to the City of Fort Collins (the "City") pursuant to this Agreement (the "Agreement'), the Contractor hereby acknowledges that it has been informed that the City has established policies and procedures with regard to the handling of confidential information and other sensitive materials. In consideration of access to certain information, data and material (hereinafter individually and collectively, regardless of nature, referred to as "information") that are the property of and/or relate to the City or its customers or suppliers, which access is related to the performance of services that the Contractor has agreed to perform, the Contractor hereby acknowledges and agrees as follows: That information that has or will come into its possession or knowledge in connection with the performance of services for the City may be confidential and/or proprietary. The Contractor agrees to treat as confidential (a) all information that is owned by the City, or that relates to the business of the City , or that is used by the City in carrying on business, and (b) all information that is proprietary to a third party (including but not limited to customers and suppliers of the City) . The Contractor shall not disclose any such information to any person not having a legitimate need -to -know for purposes authorized by the City. Further, the Contractor shall not use such information to obtain any economic or other benefit for itself, or any third party, except as specifically authorized by the City. The foregoing to the contrary notwithstanding, the Contractor understands that it shall have no obligation under this Agreement with respect to information and material that (a) becomes generally known to the public by publication or some means other than a breach of duty of this Agreement, or (b) is required by law, regulation or court order to be disclosed, provided that the request for such disclosure is proper and the disclosure does not exceed that which is required. In the event of any disclosure under (b) above, the Contractor shall furnish a copy of this Agreement to anyone to whom it is required to make such disclosure and shall promptly advise the City in writing of each such disclosure. In the event that the Contractor ceases to perform services for the City, or the City so requests for any reason, the Contractor shall promptly return to the City any and all information described hereinabove, including all copies, notes and/or summaries (handwritten or mechanically produced) thereof, in its possession or control or as to which it otherwise has access. PSA 10/9' 12 The Contractor understands and agrees that the City's remedies at law for a breach of the Contractor's obligations under this Confidentiality Agreement may be inadequate and that the City shall, in the event of any such breach, be entitled to seek equitable relief (including without limitation preliminary and permanent injunctive relief and specific performance) in addition to all other remedies provided hereunder or available at law. PSA 10/97 13 termination to the Professional. Such notice shall be delivered at least fifteen (15) days prior to the termination date contained in said notice unless otherwise agreed in writing by the parties. All notices provided under this Agreement shall be effective when mailed, postage prepaid and sent to the following addresses: Professional: Bert R. Bondi, CPA Bondi & Co LLP 44 Inverness Drive East Englewood, CO 80112 City: Alan Krcmarik Finance Director City of Fort Collins P. O. Box 580 Fort Collins, CO 80522 With Copy To: James B. O'Neill II, CPPO Director of Purchasing and Risk Management City of Fort Collins P. O. Box 580 Fort Collins, CO 80522 In the event of any such early termination by the City, the Professional shall be paid for services rendered prior to the date of termination, subject only to the satisfactory performance of the Professional's obligations under this Agreement. Such payment shall be the Professional's sole right and remedy for such termination. 4. Project, Indemnity and Insurance Responsibility. The Professional shall be responsible for the professional quality, technical accuracy, timely completion and the coordination of all services rendered by the Professional, including but not limited to reports, specifications, and drawings and shall, without additional compensation, promptly remedy and correct any errors, omissions, or other deficiencies. The Professional shall indemnify, save and hold harmless the City, its officers and employees in accordance with Colorado law, from all damages whatsoever claimed by third parties against the City; and for the City's costs and reasonable attorneys fees, arising directly or indirectly out of the Professional's performance of any of the services furnished under this Agreement. The Professional shall maintain commercial general liability insurance in the amount of $500,000 combined single limits, and errors and omissions insurance in the amount of $1,000,000. PSA 10/97 2 5. Compensation. In consideration of the services to be performed pursuant to this Agreement, the City agrees to pay Professional a fixed fee in the amount of $61,500 for 2003, plus mileage expenses estimated at $3,000 per year, as set forth in Exhibit B consisting of three (3) pages, and incorporated herein by this reference. Such fees and costs shall not exceed Sixty Four Thousand Five Hundred Dollars ($64,500.00) Monthly partial payments based upon the Professional's billings and itemized statements are permissible. The amounts of all such partial payments shall be based upon the Professional's City -verified progress in completing the services to be performed pursuant hereto and upon the City's approval of the Professional's actual reimbursable expenses. Final payment shall be made following acceptance of the work by the City. Upon final payment, all reports and other services rendered by the Professional shall become the sole property of the City. 6. City Representative. The City will designate, prior to commencement of work, its project representative who shall make, within the scope of his or her authority, all necessary and proper decisions with reference to the project. All requests for contract interpretations, change orders, and other clarification or instruction shall be directed to the City Representative. 7. Independent Contractor. The services to be performed by Professional are those of an independent contractor and not of an employee of the City of Fort Collins. The City shall not be responsible for withholding any portion of Professional's compensation hereunder for the payment of FICA, Workers' Compensation, other taxes or benefits or for any other purpose. 8. Personal Services. It is understood that the City enters into this Agreement based on the special abilities of the Professional and that this Agreement shall be considered as an agreement for personal services. Accordingly, the Professional shall neither assign any responsibilities nor delegate any duties arising under this Agreement without the prior written consent of the City. PSA 10/97 3 9. Acceptance Not Waiver. The City's approval of drawings, designs, plans, specifications, reports, and incidental work or materials furnished hereunder shall not in any way relieve the Professional of responsibility for the quality or technical accuracy of the work. The City's approval or acceptance of, or payment for, any of the services shall not be construed to operate as a waiver of any rights or benefits provided to the City under this Agreement. 10. Default. Each and every term and condition hereof shall be deemed to be a material element of this Agreement. In the event either party should fail or refuse to perform according to the terms of this agreement, such party may be declared in default. 11. Remedies. In the event a ,party has been declared in default, such defaulting party shall be allowed a period of ten (10) days within which to cure said default. In the event the default remains uncorrected, the party declaring default may elect to (a) terminate the Agreement and seek damages; (b) treat the Agreement as continuing and require specific performance; or (c) avail himself of any other remedy at law or equity. If the non -defaulting party commences legal or equitable actions against the defaulting party, the defaulting party shall be liable to the non -defaulting party for the non -defaulting party's reasonable attorney fees and costs incurred because of the default. 12. Bindinq Effect. This writing, together with the exhibits hereto, constitutes the entire agreement between the parties and shall be binding upon said parties, their officers, employees, agents and assigns and shall inure to the benefit of the respective survivors, heirs, personal representatives, successors and assigns of said parties. 13. Law/Severability. The laws of the State of Colorado shall govern the construction, interpretation, execution and enforcement of this Agreement. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this PSA 10/97 4 Agreement. 14. Special Provisions. Special provisions or conditions relating to the services to be performed pursuant to this Agreement are set forth in Exhibit "C", consisting of 2 pages attached hereto and incorporated herein by this reference. THE CITY OF FORT COLLINS, COLORADO By: J. Joh F. Fischbach anager�0k By: ` am s B. O'Neill II, CPPO Directo of urchasing/I & Risk Management DATE: A ta T City Clerk APP B S O FORM: ssistant Ci y Attorney PSA 10/97 Date: /a - b " d 3 5 Exhibit "A" SCOPE OF SERVICES PROFESSIONAL'S UNDERSTANDING OF THE WORK TO BE PERFORMED: In connection with, and as part of, the audit engagement, the City has determined specific inquiries, procedures, and reports to be completed by the auditor which extend beyond those required in a financial audit. Such procedures will be performed as a part of each audit engagement and appropriate reports (management letters) submitted to the City or the North Front Range MPO containing such information as is necessary to inform City Council, the City Audit Committee or the Planning Council of the North Front Range MPO about these matters. Provide hourly rate schedule to be used for these services. 2. Critique of financial management and reserve policies set forth in the budget document. a. Review to see if policies are being followed in practice. b. Evaluate reasonableness of assumptions. 3. Review budget document. a. Read the City's printed budget document. b. Comment on noticeable trends --healthy or unhealthy. C. Evaluate reasonableness of significant budgetary assumptions. d. Comment regarding budgetary presentation. 4. Provide a briefing on new statutes or regulations which may have a significant financial impact on the City. 5. Provide highlights of areas in which the City is managing its financial affairs well. a. Indicate notable accomplishments such as the fact that there have been no audit adjustments made. b. Analyze statistical information for positive trends. C. Analyze financial statements for healthy indicators. 6. Compare the City's financial position and results of operations with selected other cities that have characteristics similar to the City. 7. Provide highlights of areas in which the City could improve its financial management. PSA 10/97 6 a. If there are areas of concern which management is already addressing, say so. b. Point out inefficiencies noted. C. Point out problems; recommend solutions. d. Provide a synopsis of the five most important financial matters which the City needs to address in the coming year. 8. Provide a briefing on the potential impact of new or proposed GASB pronouncements on the City's operations and financial statements. Also point out new auditing standards which may affect the City. 9. Update the progress of previous management letters to the Audit Committee and/or Council. 10. Issue separate management letters for North Front Range MPO and if warranted, for Poudre Fire Authority. 11. In a separate letter, indicate reportable conditions and material instances of noncompliance required by generally accepted auditing standards. 12. Evaluate and address in the management letter, any matters brought to the attention of auditor by the Audit Committee; solicit additional items from the Audit Committee that the firm should address. 13. Auditors should give an hourly rate to complete special studies or give advice to the Audit Committee. Example: Advise the Audit Committee on the reliability of the City tax base and revenue mix. The specifics of each project would be discussed and agreed upon each year in November with the Audit Committee. PSA 10/97 7 ADDITIONAL SERVICES ADDITIONAL SERVICES: To be requested on a change order. As stated in Section I B of the RFP, the City intends that the term of its engagement with the selected firm will be five years, subject to an annual review and recommendation of the Audit Committee. Firms should include in their proposal an all-inclusive maximum price for the audit of each of the subsequent four years using the form provided in Appendix B. 2. The City periodically asks its auditors to consent to the use of their opinion on the City's financial statements in connection with bond offering official statements. Indicate on Appendix B your firm's all-inclusive maximum price for the issuance of a consent letter in connection with one of the City's bond offering official statements. Examples of recent official statements for City bond issues are available for inspection at the Finance Department. Please contact Alan Krcmarik at (970) 221-6788 to arrange to see these documents. 3. In connection with its bond issues, the City is required to track rebatable arbitrage earnings. The City uses Microsoft Excel to track arbitrage. However, the City relies on outside consultants (as well as bond counsel) to assist with verifying its calculations. Indicate on Appendix B your firm's all-inclusive maximum price for assistance with verifying rebatable arbitrage at the end of each five-year period for one of the City's bond issues. Examples of recent calculations for City bond issues are available for inspection at the Finance Department. Please contact Alan Krcmarik at (970) 221-6788 to arrange to see these documents. 4. In connection with the advance refunding of its bond issues, the City hires independent accountants to verify the sufficiency of refunding escrows. Indicate on Appendix B your firm's all-inclusive maximum price for assistance with verifying the refunding escrow for one of the City's refunding bond issues. Examples of recent verification calculations for City bond issues are available for inspection at the Finance Department. Please contact Alan Krcmarik at (970) 221-6788 to arrange to see these documents. 5. In connection with the agreed upon procedures relating to the City's franchise agreement with the provider of cable television and other subscriber services, the City hires independent accountants to verify accuracy of the franchise payments to the City, analyze the specific revenues included in calculating the franchise fee payment, identify any excluded revenue and reason for exclusion, analyze the subscriber listing to determine that franchise fees are collected from all subscribers within the City limits, and assess financial viability of company providing cable television and other subscriber services. Indicate on Appendix B your firm's all-inclusive maximum price for performing the above agreed upon procedures. Examples of recent agreed upon procedures and related findings from the City franchise agreement with provider of cable television and other subscriber services are available for inspection at the Finance Department. Please contact Alan Krcmarik at (970) 221-6788 to arrange to see these documents. PSA 10/97 8 Exhibit "B" - City Council Audit Committee City of Fort Collins Page 2 - Dollar Cost Bid APPENDIX A SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE CITY OF FORT COLLINS, POUDRE FIRE AUTHORITY AND NORTH FRONT RANGE MPO 2003 FINANCIAL STATEMENTS AND RELATED 2003 SINGLE AUDITS Partners Managers Staff Other (specify) Total (DISCOUNT) Total Out of Pocket Expenses: Meals and lodging Transportation Other (specify) Estimated Standard Quoted Hours Hourly Rates Hourly Rates Total 75 $190 - $275 $190 - $275 $ 14,250 250 $130 - $180 $130 - $180 32,500 415 $40 - $90 $40 - $90 20,750 Na n/a 740 Total All -Inclusive Maximum Price for the 2003 audit 67,500 (6,000) g 61.500 Estimate of expected costs for the services related to the North Front Range MPO and the Poudre Fire Authority, included in the above All -Inclusive Maximum Price above: North Front Range MPO $ 3,500 Poudre Fire Authority $ 6,000 PSA 10/97 atBONDI & Co. up CERTIFIED PUBLIC ACCOUNTANTS MAWWMRNT CUNSUIZANTS QO