HomeMy WebLinkAbout2009-246 CONT Addendum - Pauly Rogers
ADDENDUM TO CITY OF ASHLAND
CONTRACT FOR PERSONAL SERVICES - MUNICIPAL AUDIT SERVICES
Addendum made this 24Th day of November. 2009, between the City of Ashland
("City") and Paulv. Roqers and Co.. P.C. ("Consultant").
Recitals:
A. On Mav 2. 2007 ,City and Consultant entered into a "City of Ashland Contract for
Personal Services - Municipal Audit Services" (further referred to in this addendum as
"the agreement").
B. The parties desire to amend the agreement to extend the contract for Municipal
Audit Services an additional year to include the 2009-2010 Audit for the City of Ashland
(and Parks!.
City and Consultant agree to amend the agreement in the following manner:'
1. The contract is being extended to include the 2009-2010 Audit for the City of Ashland
(and Parks). The City audit fee will be $33,725.00 and the Parks audit fee will be
$9,395.00 for the 2009-2010 audits. The fee for a single audit will be $2,300.00. Rates
for additional Professional Services are attached in the Cost Quote provided by Pauly,
Rogers, and Co., P. C.
2. Except as modified above the terms of the agreement shall remain in full force and
effect.
CONSULTANT:
BY y~
Its )L"",~
DATE / (/-:z;{lo/
CITY OF ASHLAND:
BY
~'I1Z :}.. 0.
Fi~ce Director
I z..-/'0 ?<W1'
Date
"
CONTENT REVIEW: /ftJ"'
Date: 12-;/ 'ft ~itY Dept. Head)
~e:~~ ~ 0<13;>'7
Purchase Order # p~k5 p'" o!J;7""?3
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Acct. No.: .:z / / /.9- c.;2. "" / 6 t7 Lf1 / c:>-eJ
(For City purposes only)
1- CITY OF ASHLAND, CONTRACT FOR PERSONAL SERVICES <$25,000
A request for a Purchase Order
REQUISITION FORM
CITY OF
ASHLAND
THIS REQUEST IS A:
o Change Order(existing PO #
Date of Request: I'Jt/1 D !vcr.1
Required Date of DeliverylService: 1:'/1
tiCl~ \~,' RDdU,S ~ L 0
Vendor Name
Address
City, State, Zip
Telephone Number
Fax Number
Contact Name
SOLICITATION PROCESS
Small Procurement o SoJe Source 0 Invitation to Bid
0 Less than $5,000 o Wollen tindings allached (Copies on file)
o Quotes (Optional) o Quote or Proposal attached
Cooperative Procurement 0 Reauest for ProDosal
0 State of ORfWA contract (Copies on file)
Intermediate Procurement o Other government agency contract 0 SDecial1 ExemDt
o (3) Wollen Quotes 0 Copy of contract allached 0 Wollen findings allached
(Copies allached) 0 Quote or Proposal allached
0 Contract # 0 Emeraencv
0 Wollen findings allached
0 Quote or Proposal allached
Description of SERVICES
o<OOq~dOIO
fhtct., t Se.rvl C C:,
o Per attached PROPOSAL
Item # Quantity
Unit
Description of MATERIALS
Unit Price
Total Cost
Project Number ______. ___
:tOl'AI!;icost~~
.~~
~fi
o Per attached QUOTE
Account Number}-J12.'Q~6.1$: -'--'..Q- jp-Q~ldO
. Items and services must be charged to the appropriate account numbers for the financials to reflect the actual expenditures accurately,
By signing this requisition form, I certify that the information provided above meets the City of Ashland public contracting requirements,
and the documentation can be provided upon request.
Employee Signature: r r 1'lWvJjf~t ~
Supervisor/Depl. Head Signature:
~.;J.- < rf' 0'
11/r7f1
G: Finance\Procedure\AP\Forms\8_Requisi~on form revised.doc
Updated on: 11/10/2009
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..,. , ""n__ :._,"', :: ':_ ._, ',:',':-', ":_:,",..;'.:., _":,",
. 12700SW72NDAVENUE ,.T1G;a,RD,;OREC30N$7223
. ($03),~~O'2~3~.'FAX(p03)9~4;i52.3
Cost Ouote for City of Ashland (and Parks) 2009-2010 Audit
Our not-to-exceed fee, including all out-of-pocket expenses, for the 2009-2010 audits is $43.120.
This does not include the single audit fee, which is quoted separately in the table above. This assumes the
cooperation of the City's (and Parks) staff and that the books are closed, balanced and reconciled, and that
no unexpected circumstances will be encountered during our audit. The schedules we request the City to
prepare are those that would nonnally be required to prepare a good, well documented, bard close at year-
end. We anticipate they would not be more than you are currently producing. We will not exceed the
audi! fee, even if expenses incurred exceed our estima1e, unless services outside the scope of the
engagement are requested.
YEAR City Parks Audit Siugle,.
, Audit Fcc Fcc '. Audit Fcc
$35,500
($1,775)
$9,870
, ($475)
. $2,300
o
$33 725
$9 395
$2 300
'Note the discount noted above is based on the level of assistance provided by the City's staff during the
,2008,09 audit. _This.incl!!~~_s",_ful!l'!~p<l!~ti()n, oftbe Cft.l'~'s, and th_e~mailing of lead sheets and account
-backUp 'before the auditors arrive on site.
Rates for Additional Professional Services
Pauly, Rogers & Co., P. C. can provide the City with a variety of services in addition to the annual audit.
Special reports, projects, or other work undertaken at the request of the client is billed at the following
rates per hour for 2009: Partner $100-$140, Staff Accountant $80-$90, and Clerical $45. At the time of
the reques1, we would make an estimate of the fee to be charged and would seek written approval of that
fee. If, in the course of the audit, we determine that work is necessary beyond the original s~ope of the
audit as defined by the City's request for proposals, we would seek approval before proceeding and would
provide an estimate of the additional fees. Such work might include additionally agreed upon procedures,
reconciliations, andlor adjustments needed to bring financial statements into conformity with generally
accepted accounting principles. Again, appropriate approval for the extra fee would be obtained from
your management. We execute a fonnal "change order" if additional work is needed. In both cases,
billings would be issued as the work progresses and bills would be submitted monthly.
Sincerely,
Jf"""" '
" ,
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Kenneth Allen, CPA
Pauly, Rogers, and Co. P.C.
, Contract for Personal Services - Municlpa u It ervlces,
. , CITY OF CONTRACTOR: Pauly, Rogers and Co., P.C.
ASHLAND CONTACT: Kenny Allen, CPA
20 East Main Street
'Ashland, Oregon 97520 ADDRESS: 12700 SW. 7200 Ave, PO Box 23684
Telephone: 541/488-6002 Tigard, OR 97223
Fax: 541/48.8-5311
,TELEPHONE: (503) 620-2632
DATE AGREEMENT PREPARED: April 17, 2007 FAX: (503)684-7523
BEGINNING DATE: February 20,2007 ,COMPLETION DATE: November 15 2009
COMPENSATION: City agrees to pay the Contractor for the City audit and the Parks Commission audit for.
FY 2006-07; the sum of $38.000 and $11.000 respectively. '
FY 2007~08, the sum of $39.140 and $11.330 respectively.
FY 2008c09, the sum of $40.300 and $11.670 ' respectively.
For a detailed list of the proposed fees, the Fee Arranaement Worksheet is attached as Exhibit"N
SERVICES TO BE PROVIDED: Contractor shall conduct an audit of the accounts and fiscal affairs of the City
and the Parks Commission, aswell as, additional audits for Food & Beverage Tax and Transient Occupancy
Tax for the fisCal years ending June 30, 2007,2008, and 2009, as set forth within the Request for Proposal
released December 28, 2006 for Municioal Audit Services.
ADDITIONAL TERMS: This contract may be extended annually, by mutual consent of both parties, for up to
two (2) additional yearS for a maximum oeriod of fiVe (5) vears. _
FINDINGS:
".. Pursuant to AMC 2.52.040E and AMC 2.52.060, after .reasonable inquiry and evaluation, the undersi9ned Department
"' Head finds and determines that: (1) the services to "be -acquired are"personal services; (2) "the City does not have
adequate personnel nor resources to perform the'services; (3) the statement of work represents the departmenfs plan for
utilization of such personal services; (4) the undersigned Contractor has specialized experience, education, training and
capability sufficient to perform the quality, quantity and lypeof work requested in the scope of work within the time and
financial constraints provided; (5) the Contractor's proposal will best serve the, needs of the City; and (6) the
compensation negotiated herein is fair and reasonable.
NOW THEREFORE, in Consideration of the mutual covenants contained herein the CITY AND CONTRACTOR AGREE
as follows:
1. Findings f Recitations. The findings and recitations set forth above are true and correct and are incorporated herein
by this reference.
2. Scope of Work. Contractor shall conduct an audit of the accountS and fiscal affairs of the City and the Commission,
as of and for the years ending June 30, ?007, 2008, and 2009. The audit will be made in accordance with the
Minimum Standards for Audits of Municipal Corporations as prescribed by law. Tl)e audit shall be undertaken In order
, to express an unqualified opinion that the financial statements of the City and Commission are fairly presented in
conformity with generally accepted accounting principals consistently applied, and to determine if the City and
Commission have compiled substantially with appropriate legal provisions. If the Contractor's opinion is other than
unqualified, the Contractor will fully discuss the reasons with the City in advance of lssuIng the opinion.
3. All Costs by Contractor: Contractor shall, at its own risk and expense, perform the personal services described
above, and, unless otherwise specified, furnish all labor, equipment and materials required for the proper performance
of such service.
4.. Qualified Work: The Contractor agrees that the services by Contractor shall be .rendered by a Certified Public
Accountant, CPA,or under this person's supervision, and that the work will be faithfully performed with care and
diligence. Contractor has represented, and by entering Into this contract now represents, that all personnel assigned
'to the work required under this contract are fully qualified to perform the service to which they will be assigned In a
skilled and worker-like manner and, if required to be registered, licensed or bonded by the State of Oregon, are so
.. registered; licensed and bonded.
5. Commencement of Services. Contractor Is to begin the audit within 45 days following July 10f each year and
complete the audit by November 15 of each year. Upon completion, written reporls are to be delivered to the Audit
Committee for consideration and review bv the committee. After reviliw and acceotance bv the Audit Committee, 25
IA d'S
"
2007 Municipal Audit Contract
Page 1 of7
,'-
J
copies of the final City report and 25 copies of the final Commission report shall be delivered to ihe City. The fonn
and content of the reports shail be in accordance with, 'and not less than, that required by the Minimum Standards for
Audits of Oregon Municipal Corporations.
6. Financial Statements. City will provide for such financial statements as may be necessary to fully disclose and fairly
present the results of operations for the periods under audit and the financial condition at the end of those periods.
, Although it is City's responsibility, the reports are to be drafted and prepared by the Contractor. The cost of preparing
such financial statements'shall be Included in the fee for conducting the audn as set forth ,above. .
7. Unusual Conditions., Should unusual conditions arise or be 'encountered during the course of the audn whereby the '
services of the Contractor are necessary beyond the ilJdent of the work contemplated, written notification of such
unusual conditions shall be delivered to the City, who shall instruct the Contractor in writing concerning such
additional service. A signed copy of each such notification and instruction shall be delivered Immediately to the
Secretary of State by the City. '
8.' Compensation: City shall pay Contractor for service perfonned, including costs and expenses, the sum specified
above. Once work commences, invoices shall be prepared and submitted by the tenth of the month for work
completed, in the prior month. Payments shall be made within 30 days of the date of the invoice. Should the Contract
be prematurely tenninated, payments will be made for work completed and accepted to date of termination. ,
9. Completion Date: Contractor shall start performing the service under this contract by the beginning date Indicated
above and complete the service by the completion date indicated above. .
10. Contract Extension. City and Contractor may extend this contract for up to two fiscal years beyond FY 2008-2009
upon such tenns and conditions as they shall mutually agree.
11. Ownership of Documents: All documents prepared by Contractor pursuant to this contract shall be the property of
city.
12. Statutory Requirements: ORS 279C.505, 279C.515, 279C.520 and 279C.530 are made part of this contract.
13. Living Wage Requirements: If the amount of this cOntract Is $16,936 or more, Contractor is required to comply with
chapter 3.,12 of the Ashland Municipal Codeby paying a living wage, as defined in this chapter, to all employees
perforrrilng work under this contract and to any Subcontractor who perfonns 50% or more of the service work under
this contract. Contractor Is also required to post the notice attached hereto as Exhibit C predominantly in areas ,where
it will be seen by all employees. '
14. Indemnification: Contractor agrees to defend, indemnify and save City, ns officers, employees .and agents hannless
, from any and'alllosses, claims, actions, costs, expenses, jUdgments, subrogations, or other damages resulting from
injury to any person (including injury resulting in death), or damage (including loss or destruction> to property, of
whatsoever nature arising out of or incident to the performance of this contract by Contractor (including but not limited
to, Contractor's employees, agents, and others designated by Contractor to perform work or services attendant to this
contract). Contractor shall not be held responsible for any losses, expenses, claims, subrogations, actions, costs,
'judgments, or other damages, directly, solely, and proximately caused by the negligence of City.
15. Termination: , ,
a. Mul\Jal Consent. This contract may be terminated at any time by mutual consentof both parties.
b. . 'Citv'll Convenillnce. This contract may be tenninated at any time by City upon 30 days' notice in wrnlng
and delivered by certified mall or in person.
"c", ,For Cause.,qtyrnayJllnninate:or modify thisconiract, in,whole or in part, effective upon delivery of
, written notice to Contractor, or at such later date as may be established by City under any of the fOllowing .
cOnditions:
i. if City funding from federal, state, county orother sources is not obtained and continued at levels
, sufficient to allow for the purchase of the indicated quantity of senilces;, '
ii. If federal or state regulations or guidelines are modified, changed, or interpreted in such a way,
that the services are no longer allowable or appropriate for purchase under this contract 'or ani
no longer eligible for the funding proposed for payments authorized by this contract; or
iii. If any license or certificate required by law or regulation to be hel~ by Contractor to provide the
services rllquired by this contract is for any reason denied, revoked, suspended, or not renewed.
d. For Default or Breach.
i. Either City or Contractor may tennlnate this contract in the evimt of a breach of the contract by
the other. Prior to such tenninatlon the party seeking tenninatlon shall give to the other party
, written notice of the breach and intent to tennihate: If the party committing the breach has not
entirely cured the breach within 15 days of the date of the notice, or within such other period as
the party giving the notiCe may authorize or require, then the contract may be terminated at any
time thereafter by a written notice of tennination by the party giving notice.
ii. Time is of the essence for Contractor's perfonnance of each and every obligation and duty under
this contract. City by written notice to Contractor of default or breach may at any time tenninate
-the whole or any part of this contract if Contractor falls to provide services called for by this
contract within the time specified herein or in any extension thereof.
iii. The ri hts and remedies of Ci rovlded in this subsection d are not exclusive and are in
, 2007 Municipal Audit Contract
Page 2 of'7
addition to any other rights and remedies provided by law or under this contract.
e. Obliaation/Llabilitv of Parties. Termination or modification of this contract pursuant to subsections a, b, or
c above shall be without prejudice to any obligations or liabilities of either party already accrued prior to such
termination or modification. However, upon receiving a notice of termination (regardless whether such notice is
given pursuant to subsections a, b, c or d of this section, Contractor shall, immediately cease all activities under
this coritract, unless expressly directed otherwise by City In the notice of termination. Further, upon termination,
Contractor shall deliver to City all contract documents, Information, works-in-progress and other property that are
or would be deliverables had the contract been completed. . City shall pay Contractor for work performed prior to
the termination date if such work was performed in accordance with the Contract. '
16. IndependentCoiltractor Status: Contractor is an independent contractor and not an employee of the City.
Contractor shall have the complete responsibility for the performance of this contract. Contractor shall provide '_
workers' compensation coverage -as required In ORS Ch 656 for all persons eniployed to perform work pursuant to
this contract. Contractor Is a subject employer that will comply with ORS 656.017.
17. Assignment and Subcontracts: Contractor shall not assign this contract or subcontract any portion of the work
without the written consent of City. Any attempted assignment or subcontract without written consent of City shall be
void. Contractor shall be fully responsible for the acts or omissions of any assigns or Subcontractors and of all '
persons employed by them, and ihe approval by City of any assignment or subcontract shall not create any
contractual relation between the assignee or subcontraetor and City. '
18. Default. The Contractor shall be in default of this agreement if Contractor: - commits any material breach or default of
any covenant, warranty, 'certifi~tlon, or obligation ij owes under the Contract; ,its QRF status pursuant to the QRF
Rules or loses any license, certificate, or certification that is required to perform the Services or to qualify as a QRF if
Contractor has qualified as a QRF for this agreement; Institutes an action for relief In bankruptcy or has instituted '
against it an action for insolvency; makes a general assignment for the benefit of credijors; or ceases doing business
on a regular basis of the type identified in its obligations under the Contract; or attempts to assign-rights in, or
delegate duties, under, the Contract. " ','
19. Insurance. Contractor shall at its own expense provide the follOwing insurance:
a. Worker's Comoensaticin insurance in compliance with ORS 656.017, which requires subject employers to
provide Oregon workers' compensation coverage for all their subject workers
b. Professional Liabilitv insurance with a combirie!lsingle limit, or the equivalent, of not less than $500,000,
for each claim, incident or occurrence. This is to Cover damages caused by error, omission or negligent acts
related to the professional services to be' provided under this cOntract., ,
c. General Liabilitv insurance with a combiriedsingle limn, or the equivalimt, of not less than $500,000, for
, each occurrence for Bodily Injury and Property Damage. It shall include, contractual liability coverage for the
indemnity provided under this contract. ' ' '
d. Automobile Liabilitv insurance with a combined single limit, or the equivalent, of not less than $500,000; ,
for each accident for Bodily InjurY and Property Damage, including coverage for owned, hired or non-owned
vehicles, as applicable.
e.Notice of cancellation or chanae. There shall be nocanceUation, material change, reduction of limits or
intent not to renew the insurance coverage(s)without30 days' written notice from the Contractor or its insurer(s) to
the City.
t _ _ Additionallnsured/Certificates of Insurance. Contractor shall name The City of Ashland~ Oregon, and its '
elected officiiils;officer's andeniplciyees-as Additional Insureds on anYirisui;3ricepoiii:ies required herein butoniy
with respect to Contractor's services to be provided under this Contract. As evidence_ of the insurance coverages
required by this Contract, the Contractor shall furnish acceptable Insurance certificates prior to commencing work
under this contract. The certificate will specify all of the parties who are Additional Insureds. Insuring companies
or entities -are subject to the City's acceptance. If requested, complete copies of Insurance policies; trust
agreements, etc. shall be provided to the City. The Contractor shall be financially responSible for all pertinent
deductibles, self-insured retentions and/or self-insuranCe. "
20. Governing Law; Jurisdiction; Venue: This contract shall- be governed and construed in accordance with the laws
of the State of Oregon without resort to any Jurisdiction's conflict of laws, rules or doctrines. Any claim, action, suit or -
proCeeding (collectively, "the claim") between the City (and/or any other or department of the State of Oregon) and
the Contractor that arises from or rel<Ites to this clintract shall be brought and conducted solely and exclusivl!ly within
, the ,Circuit Court of Jackson County for the State of Oregon. If, however, the claim must be brought in a federal
. forum, theri it shall be brought and conducted solely and eXclUSively within the United States District Court for the
District of Oregon filed in Jackson County, Oregon. Contractor, by the-signature herein of its authorized
representative, hereby consents to the in personam jurisdiction of said courts. In no event shall this section be
construed as a waiver by City of any form of defense or immunity, based on the Eleventh Amendment to the United
, States Constitution, or otherwise, from any claim or from the jurisdiction.
j 21. THIS CONTRACT AND ATTACHED EXHIBITS CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE
- PARTIES. NO WAIVER, CONSENT, MODIFICATION OR CHANGE OF TERMS OF THIS CONTRACT SHALL
BIND EITHER PARlY UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. SUCH WAIVER, CONSENT,
MODIFICATION OR CHANGE IF MADE SHALL BE EFFECTIVE ONLY IN THE SPECIFiC INSTANCE AND FOR
1
2007 Municipal Audit Contract
Page 3 of7
THE SPECIFIC PURPOSE GIVEN, THERE ARE NO UNDERSTANDINGS, AGREEMENTS, OR
REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN REGARDING THIS CONTRACT.
'CONTRACTOR, BY SIGNATURE OF ITS AUTHORIZED REPRESENTATIVE,HEREBY ACKNOWLEDGES THAT
HE/SHE HA~ READ THIS CONTRACT,UNDERSTANDS IT, AND AGREES TO BE BOUND BY ITS TERMS AND
CONDITIONS.
22. Nonapproprlatlons Clause. Funds Available and Authorized: City has sufficient funds currently available and
authorized for expenditure to finance the costs of this contract within the City's fiscal year budget. Contractor
understands and agrees that CIty's payment of amounts under this contraet attributable to work performed after the
last day of thecuITent fiscal year is contingent on City appropriations, or other expenditure authority sLifficient to allow
City in the exercise of its reasonable administrative discretion, to continue to make payments under this contract. In
the event City has insufficient appropriations, limitations or other expenditure authority, City may terminate this
contract without penalty or liability to City, effective upon the delivery of written notice to Contractor, with no further
liability to Contractor.
Certification. Contractor shali sl n the certification attached hereto as Exhibit B and herein inco
CONTRAC~..J- ___ ""./7 CITY OF ASHLAND:
BY ~ BY
. ,SI aluie FINANCE E TOR
TITLE
C/,..;-
DATE
s/z./z.m 7
( ,
DATE
.~/&
CONTRACT AWARD AND FINDINGS DETERMINED BY:
By:
FederallD#
9~-(j t; ~C/Z'$
#0-
City Department Head . ,Date: 5A~ 7
.~~, ?/iP "3t:71?oCJ~1-/Jr.::>-o
ACCOUNT#. p~t5-, ~//t".:zCJ,;:t P/6CJ1"'/,;z.o
() '(For City purposes only)
~, ~ e77~6$"""
PURCHASE ORDER #. h4 r"" .&PeP 0 (:":) (i;
, .Completed W9 form must be submitted with contract
-'
2007 Municipal Audit Contract
Page 4 of7
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE I of 5
Audit Committee
Draft Minutes
November 6, 2009 1 :OOpm
Council Chambers
1175 East Main Street
Call to Order
The Audit Committee meeting was called to order at 1:15.
Roll Call
Committee members Nutter, Silbiger, Christensen and Everson were present. Stebbins was absent.
STAFF PRESENT:
MARTHA BENNETT, CITY ADMINISTRATOR
LEE TUNEBERG, ADMINISTRATIVE SERVICES AND FINANCE DIRECTOR
CINDY HANKS, FINANCE DIVISION MANAGER! ACCOUNTING DIVISION
DON ROBERTSON, PARKS DIRECTOR
MELISSA HUHTALA, ADMINISTRATIVE SECRETARY
Mr. Tuneberg discussed the election of a Chair and gave an overview of what would be discussed.
EversonlSilbiger ms Guy Nutter as Chair. All Ayes.
Approval of Minutes
Audit Committee Minutes of October 29, 2008
Everson identified misspelling of her name on page.
EversonlNutter ms to approve minutes as submitted. All Ayes.
Presentation bv the Auditors
Kenny Allen presented to the Committee the Audit report (see attached). Mr. Allen stated that there
were no new significant deficiencies during the audit. There were no difficulties encountered in
performing the audit, no uncorrected misstatements, and no disagreements with management. Mr.
Allen thanked the staff for their assistance. Kenny discussed how there are FDIC and collateral rule
changes each year.
Banks are looking at increasing the percentage involving collateral. Mrs. Christensen stated that the
banks will continue to increase collateral percentage as the years continue.
Parks Manaaement Letter:
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 2 of 5
Mr. Alien presented the Management Report for Ashland Parks and Recreation. He suggested that
City and Parks formalize their intergovernmental agreement for accounting services.
Mr. Alien discussed other matters. He stated that over the last year or two there is more risk for
investments. Since it is a difficult time to be in investments, investments should be looked at more
carefuliy.
Mr. Alien discussed Local Government Investment Pool. The Pool is an investment even though it is
treated as, a depository. Ms. Christensen stated that the money is not all in the pool about 44% of the
City's portfolio is in a Pool. She stated that the portfolio was recently updated, which includes changes
in the banking industry.
Mr. Alien discussed page 43 regarding future earnings. He stated that each year the City looks at the
investment pool and figures what the value of each share would be. The Committee questioned how
the City would be affected if the pool were to see a large amount of investors leaving. Mr. Allen
answered that the loss would be heavier for the City. If ali investors leave then the State takes the loss.
Mr. Alien discussed Future Accounting and Auditing Issues: GASB 51 and GASB 54 (see attached).
He stated 'that there is more detail of what reservations and requirements are.
The Committee questioned whether item number three (see attached) in the Parks and Recreation
Management letter continues forward'as an exception. Mr. Alien answered yes.
The Committee questioned who is in charge of investment policy for the City. Ms. Christensen
answered she is who is in charge.
City ManaQement Letter:
Mr. Alien went over the City Management Letter and stated that there were no new deficiencies in the
FY 2008-09 audit. Mr. Alien stated the recommendations that were repeated from the report to
management for the year ended June 30, 2008 (see attached).
Mr. Alien discussed investments and third parties. The Committee questioned seize and desist orders
and if it is addressed in investment policy. Ms. Christensen answered that the City is only aliowed in .
certain securities and certain banks, for example coliateralization. She also stated that not just smali
local banks get seize and desist orders.
Mr. Tuneberg thanked Cindy Hanks and the Accounting group for ali their hard work throughout the
year. Due to the hard work the audit was done quicker then prior years. Mr. Tuneberg also thanked
Melissa Huhtala for putting the CAFR/CUFR documents into new software.
Mr. Tuneberg thanked elected officials for their work and support. Mr. Tuneberg stated that not ali
agencies do the Audit to the level that the City of Ashland does. He thanked the auditors for their work.
Mr. Tuneberg discussed the CAFR and CUFR replacement pages and stated that there may be more
corrections until the final books go to the printer. Mr. Tuneberg stated that both reports have clean
audit opinion which can be found on page three for the City and page one for Parks.
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 3 of 5
Mr. Tuneberg discussed historical information. He stated that the City has gone through several years
of decreases in fund balances, but in this last budgetary year the City has tightened belts and has
scene improvements in the ending fund balance. .
Committee Discussion:
The Committee questioned page 45 in receivables. The Committee questioned why this year's
receivables are higher then last years and noticed that Hotel Receivables were not mentioned last year
but were this year. Ms. Hanks responded that last year there was a minimum report required by GAP,
but recommend~d more disclosure for this year.
The Committee questioned how long write offs are in the books before determined not collectable bad
debt. Mr. Tuneberg answered that each write off has a different schedule.
The Committee questioned whether staff goes to Council to make sure the write offs are within the
timeline of debt coilected. Mr. Tuneberg answered no, but if there was a prevalent issue then the write
off would be taken to Council.
The Committee questioned why the CPI had a decrease in the time frame that says to make the
comparison (page 57). Ms. Bennett stated that a specialty use permit for the Forest Service has a cap
of $200,000. The Committee suggested this information to be disclosed.
The Committee questioned where the value of Ashland Community Hospital is refiected. Mr. Tuneberg
answered that the original values of the structure is refiected on page 100. Mr. Tuneberg stated that
assets stated on page 100 are secure.
The Committee questioned what the interfund loan refiects on page 89. Ms. Bennett answered that it
was the purchase of the Clay Street property. It is a loan from the City to the City, meaning the City
owns the iand and the City got a ioan to purchase the land. Since the Food and Beverage Tax has
been renewed Parks now has a revenue stream. The first $625,000 will go to pay the loan.
Public Input-
None
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Siqninq the Annual Letter-
Mr. Tuneberg asked if there were any issues that would prevent the Committee from accepting the
report and signing the annual letter allowing the comprehensive annual financial report to Council.
EversonlSilbiger ms that the Committee signs the annual letter accepting the City's audit and financial
report. All ayes.
The letter was submitted for the Committee members to sign.
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 4 of 5
Review of Audit Contract
Mr. Tuneberg discussed the Audit contract renewal. He stated that Fiscal Year 2009-10 is the third
year of a three year contract with Pauly, Rogers and Co., PC. There is a possibility of two, one year
extensions of the contract. Lee discussed the options of extending the contract with Pauly, Rogers and
Co. or to go out and bid for a new auditor. He stated that three years ago Pauly, Rogers and Co. was
the only one to bid now there are rnore options.
The Committee stated that it is recommended to bid. Ms. Christensen stated that she is happy with
auditors and supports extending the contract another year.
The Committee questioned staff as to whether or not they would prefer to bid or extend the contract.
Cindy Hanks stated she would prefer to extend the contract.
The Committee stated that it is a good idea to extend the contract as it may be difficult to switch.
The Committee stated that by going out to bid may cause the price to go up a big chunk. The
Committee also stated that five years is usuaily the longest a contract should go.
After hearing the Committee's comments Mr. Tuneberg stated that it sounded as though the group is
okay with extending the contract with Pauly, Rogers and Co.
EversonlNutter ms to extend the contract with Pauly, Rogers and Co. Ail Ayes.
Mr. Tuneberg stated a quote from Kenny Ailen. Due to the Audit being done in such a successful
manner the price for audit will be reduced for next year. Mr. Tuneberg stated that the audit was
successful because of staffs hard work and dedication. The book was written entirely by staff and is
electronic format, therefore making it much easier for the auditors.
One difficult thing during this years audit was the actuarial study. Mr. Tuneberg stated that four or five
years ago there were more problems and since then staff has been correcting those issues. Staff has
been working on internal controls, cross training, documenting and thinking about audit ail year round
which brings the City a successful audit!
Mr. Tuneberg suggested the Committee getting together again in March to layout ail information and
talk about new requirements to plan for the audit. By March there wiil be an informal update qn
comments that the auditor made on internal controls.
Adiournment
The meeting was adjourned at 2:50 p.m.
Respectfuily Submitted,
Melissa Huhtala
Administrative Secretary
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 5 of 5
Administrative Services Department
~,.
._~
CiTY RECORDER
Page 1/1
CITY OF
ASHLAND
20 E MAIN ST.
ASHLAND, OR 97520
(541) 488-5300
1.:;.~':r:~:t7i[)AliE::t~1~~~
11/24/2009
l!;;\"'R01Ni!JMBER'!!E€.1
09327
VENDOR: 005746
PAULY ROGERS AND COMPANY.,P.C.
PO BOX 23684
PORTLAND, OR 97223
SHIP TO: Ashland Finance Deartment
(541) 488-5300
20 E MAIN STREET
ASHLAND, OR 97520
FOB Point:
Terms: Net
Req. Del. Date:
Speciallnst:
Re~. No.:
Dept.:
Contact: Cindy Hanks
Confirming? No
alt(Qua7i1}~~ ~[irlitt'i' Ef~,G;;';1:.::"'''.~~:'i'~r'"t:~?::Z~.-:~::::;':Tbescri-[)'Hon~~:;:~.;-~::,,?__{~ ~~'~:_ ~ '-::::f?J?iKK~~~?~~ "~ ~ttJCiifif1P.'Ffce(: ;:-;1 i~'i;~xE1k~!~
Municipal Audit Services FY 2009-2010
(Initial 3-year contract extended for
the 4th year) Per attached Addendum and
Price Quote provided by Pauly Rogers
and Co., P.C. Contract may be extended
for one additional year for a total of
5 years.
36,025.00
POs to be issued annually.
I
'-
BILL TO: Account Payable
20 EAST MAIN ST
541-552-2028
ASHLAND, OR 97520
SUBTOTAL
TAX
FREIGHT
TOTAL
36 025.00
0.00
0.00
36,025.00
rw~ccOi:inHNumber~$.Jfi~TI ~~7i1J~fOjectfNumbe'i"t!%pr~~ V~7);F!AmoWit~::~:-;~J;::I[?~-:~ountrNlimDer"'rx,j 1!;;~{;'R?OiecfrNumDer,E~,?~ ~~Amounififi
E 71 0.03.08.00.6041 2 36 025.00
-
.
~
;2. ~ ~/7Y~?
Autho tl Signature
VENDOR COPY
CITY OF
ASHLAND
I FO~#121
k.. _L -L_._ ,-' __ -'" .,~. ,.', ", . :: ~~ '__.,'-. ...\....,_~. _ _, _____....c-....
P;ERSeN~b SER~leES
'-'. --,-- -''.::';..-''''''-' ---- ""~ -.- "'_-'-".,~/.-... -..,...-'.
CHANGE ORDER/CONTRACT AMENDMENT
APPROVAL REQUEST FORM
Description of Change Order 1 Contract Amendment to original contract.
Consultant: P a.A-J.y X2~. }'--e!...eJ f,~9t~l~moufft!6f
Purchase Order Number: ~ t:.~ f9-r:7 6J C{:3 :?-7 ! ;$',
p-~ ~ C2--~?a,:.g'1-.
~ Per attached contrac!'i amendment
C'Of.'t'i:acf;Ain~i1dm~rit~for=ii!ERSON~ir!SER~ICES
Original contract amount
$
Total amount of previous contract amendments
%~~
Amount of this contract amendment
% of original contract
TOTAL AMOUNT OF CONTRACT
$
,
% of original contract
Is the total aggregate cost change for the Personal Services
less than or equal to 25'1J of the original contract nt?
YES _ NO _ Not Applicable_
If "No", City Council approval is required, City Council approval was received on
(Date)
Are there any applicable performance or payment bonds and insurance coverages
that need to be adjusted to account for the change in the contract amount? YES _ NO ------Not Applicable
Contract amendments for personal services are subjectto the following'conditions: The original contract imposes binding obligation on
the parties covering the terms and conditions regarding changes in the work; or the amended contract does not substantially alter the
scope or nature of the project. Has either of these conditions been met?
YES~ NO_ N/A
If "NO", Council approval is required. Council approval received on (Date)
. . al contract approved by the City Council, or is it exempt?
/
YES (Appr d by Council) t!:?;;Z - -;?LC - ?J7 NO (Exempt/Not Required)
(Date)
(Reason for exemption)
Comments I Additional Information: ~TY e' t'L-4r..Y--.-~'fZ- e. d" ~ c..-L.,.Jc ~u_____~ <f r:.,-,.. ~0
?2.cL~'I" ;>X?Z. r1 -!l-;!L,e' -/;..-r lfu.,.- /l--S' _~ cz... 2iC", >>?..._/7 ,#'. S- c. "-'-~5. d /l<:..;
WiLL d!:V Jf:-t&... ~~"'- 7="'4'" '62-cY ~~ c?"'-7L.Y-,--~
,.~""~, 2E; d7 a-,~ =;j/ ,..","" l!f~? I "",,",,,d
Department: V-u--re' -~-; f- ~~ . ......-#---;J---,
(f. Lee Tuneberg
Date: / p ,-c:'J q: -./ Date: /2.--/y::;1 crt
Form #11 - Contract Amendment Approval Request Form - PERSONAL SERVICES, Page 1 of 1, 12/3/2009