HomeMy WebLinkAbout2009-247 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:
CITY OF ASHLAND:
Its
r~
)'L""ak-
/(/-;;;~~<7
BY
~~.:J..- ~.
Fi~ce Director
n/Y; ?a7
BY
Date
DATE
CONTENT REVIEW: jJ(J"'-
/ . / (S;ity Dept. Head)
Date: /2-/ '-1/&7
le<~. P-<J 0"1 ;iJ':>'7
Purchase Order # p~ k>; pel tJ '" ?' ? .3
7,.-", "",a CJ€3 cCJGc-0'/~
Acct. No.: .2./, /.9-,:7; (7, <6 cq? /,;2...e)
(For City purposes only)
1- CITY OF ASHLAND, CONTRACT FOR PERSONAL SERVICES <$25.000
I FORM #Ul
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PE:RS,e.N~I1.~ SER~I~E'S
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CHANGE ORDER/CONTRACT AMENDMENT
APPROVAL REQUEST FORM
CITY OF
ASHLAND
Description of Change Order 1 Contract Amendment to original contract.
Consultant: ),(:7 "" V7 "jf-C!.-f!)
(/ <U0L7 /C-~"
Purchase Order Number: ,e' c..~" ~ 6/ "1 :3 :?-7
p-~ p-C! d2-6--C;? 9-
E(' Per attached contrad! amendment
...,-.
C6httae:t 'Am';ndfuent"fo'i!P,ERS'ON~ii:SERV.icES
Original contract amount
$
y~~
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!'/~ of the original co~ nt? YES _ NO _ Not Applicable_
II "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 subject to 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 01 the project. Has either of these conditions been met?
YES~ NO_ N/A
If "NO", Council approval is required. Council approval received on (Date)
Was 'i al contract approved by the City Council, or is it exempt?
.I
YES (Appr d by Council) ?7;;Z - -;;:::2-<9 - 67 NO (Exempt/Not Required)
(Date)
(Reason for exemption)
Comments I Additionallnlormation: ~rY- tf' tf...-4...)f-r-d--L-<IC e. a" ~ e-L. x Y c:..c.....-~ <L r;r=-.,-.- ~0
a..d.~'I' i'h/1..rJ -J!-;!L<<' --/;1"7" ~'-c-,.-~ _N a.... ;?c""~L/' 6J". '5-<< """"'-$. d 4<:.;
Wld..L b f7-~ ..<p~/c 7-CD'/"-. 02-~ :5-~ <?"''''L'tL>~
Prepared by: ~ cO a--<"'--. " Please circle: ~ 1 Not Approved
.. ~ --e..~.t!.-..,
N7A-~"~ 4"'-s. ~ ~~.:r----
(f Lee Tuneberg
" /"9- . -?l q; --/ Date: I z--/"c / rrt
Form #11 -- Contract Amendment Approval Request Form - PERSONAL SERVICES, Page 1 01 1, 12/3/2009
Department:
Date:
iIIR
ASHLAND
PARKS
& RECREATION
A request for a Purchase Order
REQUISITION FORM
THIS REQUEST IS A:
o Change Order(existing PO #
Date of Request:
1<lIJI0'/Q.1,.,1
I' "'
l~ -'. .
~ " . .
Required Date of DeliverylService:
IVIIU 11/ K()CILA~ 4: to
" --0
Vendor Name
Address
City, State, Zip
Telephone Number
Fax Number
Contact Name
SOLICITATION PROCESS
Small Procurement D Sole Source D Inv~alion to Bid
D Less than $5,000 D Written findings allached (Copies on file)
D Quotes (Not required)
CooDerative Procurement D ReQuest for ProDosal
D State of ORIWA contract (Copies on file)
Intermediate Procurement D Other govemment agency contract hi SDecial' ExemDt
D (3) Written Quotes D Copy of contract allached D Wrillen findings attached
(Copies attached) D Emeraencv
D Contract # D Written findings attached
Description of SERVICES
Total Cost
,;2 00 q - ;;LOI 0
J4u.A-'l- t ~ rJ \'C LJ
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- - '" Z)".3 q 5,... "$. ";.,' ,. ,;e.- 'Ii(..
r.. 1~:i:~ '-, '~'~;~::~.l";,t:f;~t,;~:'~ -.," .,-,~, ,: , f;,"'~y!i
?~$t,~~;} ':~~';''''~''''j:' ,^,.," ;:,.:~~
'1':'-;/.,:" "';;'_J:P',:Z.:'j.:,.>r.:1'!':j'fL
o Per attached PROPOSAL
Item # Quantity
Unit
Description of MATERIALS
Unit Price
Total Cost
o Per attached QUOTE
Project Number _ _ _ _ __ - _ __
Account Number 3JJ - id. -Q 2- Q j -loll. 'iJd-_D
. Items and services must be charged to the appropriate account numbers for the financiats to reftect the actuat expenditures accurately.
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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. .' .Jl
Employee Signature: r ;kn~l~ L+lzlfl6 Supervisor/Dept. Head Signature: ~.
U
G: Finance\Procedure\AP\Forms\Requisition form revised.doc
Updated on: 11/1012009
III
PAlJL'(ROGERSAND co., P.'C.
CEBTiFIEDPUSLlCACGOUNTANTS
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. 12700SW72NDA\lENUE 'T:lqARD,OREGON 972.23
'(5.03) ,620-2632 "'. F.AX(503)6B4-7523
Cost Quote 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 tbe
cooperation of the City's (and Parks) staff and thaI the books are closed, balanced and reconciled, and that
no unexpected circumstances will be encoun1ered during our audit. The sc4edules we request the City to
prepare are those that would normally be required to prepare a good, well documented, hard close at year-
end. We anticipate they would not be more tban you are currently producing. We will not exceed the
audit fee, even if expenses incurred exceed our estima1e, unless services outside the scope of the
engagement are requested.
YEAR '. City Parks Audit : Single
". . . '.' Audit Fcc . Fcc Audit Fcc
$35,500
($1,775)
$9,870
. ($475)
$2,300
o
$33,725
$9,395
$2,300
'No1e the discount noted above is based on the level of assistance provided by the City's staff during the
2008-09 audit. This includes, full preparatiOli of the CAFR's, and the emailing oflead sheets and accoun1
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, projecls, 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 request, 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 scope of the
audit as defined by the City's request for proposals, we would seek approval before proceeding and would
provide an es1imate of the additional fees. Such work might include additionally agreed upon procedures,
reconcilia1ions, and/or adjustments 'needed to bring financial statements into conformity with generally
accepted accounting principles. Again, appropria1e approval for. the extra fee would be ob1ained from
your. management. We execute a formal "change order" if additional work is ueeded. . In both cases,
billings would be issued as the work progresses and bills would be submitted monthly.
Sincerely,
1[("" ....
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Kenneth Allen, CPA
Pauly, Rogers, and Co. P.c.
'.
. ' Contract for Personal Services - MuniciDal Audit 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. 720d Ave, PO Box 23684
Telephone: 541/488-6002 , Tigard, OR 97223
Fax: 541/488-5311
,TELEPHONE: (503) 620-2632
DATE AGREEMENT PREPARED; April 17, 2007 FAX: (503) 684-7523 .
BEGINNING DATE: Februarv 20,2007 COMPLETION DATE: November 15, 2009
COMPENSATION: City agrees to pay the Contractor fcir 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 2008"09, 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 "An
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 Municiaal Audit Services.
ADDITIONAL TERMS: This contract may be extended annually, by mutual consent of both parties, for up to
two (2) additionalyears for a maximum period ciffiYe (5) years. ' ,
FINDINGS:, , '
: Pursuant to AMC 2.52.040E and AMC 2.52.060, after reasonable inquiry and evaluation, the undersigned 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 o(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 type of 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 I 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 3D, :z007, 2008, and 2009. The audit will be made in accordance with the
Minimum Standards for Audits of Municipal Corporations as prescribed by law. The audit shall' be undertaken In order
. to express an unqualified opinion that the financial statements of the City !lnd Commission !Ire f!llrly presented in
conformity with generally accepted !lccounting principals consistently !lpplied, !lnd to determine if the City and
Commission have complied substantially with appropri!lte legal provisions. If the Contractor's opinion is other than
unqualified, the Contractor will fully discuss the reasons with the City in advance of issuing the opinion.
3. All Costs by Contractor. Contractor sh!lll, at its own risk !lnd expense, perform the personal services described
above, !lnd, unless otherwise specified, furnish !III labor, equipment and m!lterials 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 1 of each year and
complete the audit by November 15 of each year. Upon completion, written reports are to be delivered to the Audit
Committee for consideration and review bv the committee. After review and'acceotance bv the Audit Committee, 25
S
2007 Municipal Audit Contract
Page 1 of7
copies of the final City report and 25 copies of the final Commission report shall be delivered to the City. The form
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 audit as set forth,above. . , '
7. Unusual Conditions. Should unusual conditions arise or be encountered during the course of the audit whereby the '
services of the Contractor are necessary beyond the iudent 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
addRional 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 performed, 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 terminated, 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 terms and conditions as they shali 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 cif 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 Code, by paying a living wage, as defined In this chapter, to all employees
perfomiing work under this contract and to any Subcontractor who performs 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, its officers, employees ,and agents harmless
, from any and all losses, 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, ~nd 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. Mutual Consent. This contract' maybe terminated at any time by mutual consentof both parties.
b. ' 'City's Convenl!l!1ce. This contract may be terminated at any time by City upon 30 days' notice in writing
and delivered by certified mail or in person. " " ,
C. For Cause., c:;ity mClYJllrminate or modify this contract, in,whole or in part, effective upon delivery of
written notice toContractor, 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 or other sources is not obtained and continued at levels
sufficient to allow for the purchase of the indicated quantity of senilces; , ,
il. 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 contractor are
no longer eligible for the funding proposed for payments authorized by this contract; or
iii. If any license or certificate required by IlIw or regulation to be hel~ by Contractor to provide the
services required by this contract Is for any reason denied, revoked, suspended, or not renewed.
d. For Default or Breach.
I. Either City or Contractor may terminate this contract in the event of a breach of the contract by
the other. Prior to such termination the party seeking termination shall give to the other party
, written ncitice of the breach and intent to terminate; 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 termination by the party giving notice.
iI. Time is of the essence for Contractor's performance of each and eVery obligation and duty under
this contract. City by written notice to Contractor of default or breach may at any time terminate
-the whole or any part of this contract if Contractor fails to provide services called for by this
contract within the time specified herein or In any extension thereof.
ill. The rI hts and remedies of Ci rovided In this subsection d are not exclusive and are in
"
, 2007 Municipal Audit Contract
Page 2 of'7
,,'---.
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,
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addition to any other rights and remedies provided by law or under this contract.
e. OblioationlLiabilitv 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 parly 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 contract, 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 properly 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. IndependentCohtractor Status: Contractor Is an Independent contractor and not an employee of the City.
Contractor snail 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 enip,loyed 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 the approval by City of any assignment or subcontract shall not create any
contractual relation between the assignee or subcontractor 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,certific:;ltion, or obligation it owes under the Contract; its ORF 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 ORF 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 crednors; or ceases doing business
.cin 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 combine!! single 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 combined single limit, or the equivalent, of not less than $500,000, for
, each occurrence for Bodily Injury and Properly Damage. It shall Inc1ude.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 Properly Damage, including coverage for oWned, hired or non-owned
vehicles, as applicable.
e.Notice of cancellation or chanoe. There shall be no cancellation, material change, reduction of limits or
intent not to renew the insurance coverage(s)without 30 days' written notice from the Contractor or its insurer(s) to
theC~. ,
t Additionallnsured/Certificates of Insurance: Contractor shall name The City of Ashland, Oregon, and its'
elected6fficiills, officers and employees as Aildiiionill Insureds on anYinsurancepollcles required herein but only
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 andlor 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 lliws, 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 relates to this contract shall be brought and conducted solely and exclusivElly wnhin
, the ,Circuit Court of Jackson County for thEl State of OrElgon. If, however, the claim must be brought in a fedElral
. forum, then it shall be brought and conducted solElly and exclusively within the UnltEld States District Court for the
District of Oregon filed in Jackson County, Oregon. Contractor, by thEl signature herein of its authorized
rElpresentative, 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. .
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 PARTY 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
2007 Municipal Audn 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 HAS 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 CitYs payment of amounts under this contract attributable to work perfonned after the'
last day of the current fiscal year is contingent on City appropriations, or other expenditure authority sUfficient 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 tennlnate 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 shall si n the certification attached hereto as Exhibit B and herein Inco
~yONTRA~ ~~TY OF ASHLAND:
, Si nalure FINANCE E TOR
TITLE
c./H
DATE
CONTRACT AWARD AND FINDINGS DETERMINED BY:
By:
DATE
*/c?
FederallD#
9"1-0 t; ~C/Z~
City Department Head, " Date: 5~ 7
,~~ ' .7,/.e- ""3(:119 ot:J~ 'r,::>.O
ACCOUNT # /....-r6.-.., ~N"';> t:J P P/.6 t:J 1"''''.:>- 0
(For City purposes only) .
~ ~ e::J7~t6S-
PURCHASE ORDER # Iiv; t= it' d't:J 0 (7 t;;;
, 'Completed W9 Ionn must be submitted with contract
. ..-'.
2007 Municipal Audit Contract
Page 4 of 7
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 1 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 FINANCEDIRECTOR
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.
Everson/Silbiger 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.
Everson/Nutter ms to approve rninutes 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 invoiving collateral. Mrs. Christensen stated that the
banks will continue to increase collateral percentage as the years continue.
Parks ManaClement Letter:
. AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 2 of 5
Mr. Allen presented the Management Report for Ashland Parks and Recreation. He suggested that
City and Parks forrnalize their intergovernmental agreement for accounting services.
Mr. Allen 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
carefully.
Mr. Allen 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. Allen 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 all investors ieave thEm the State takes the loss.
Mr. Allen 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. Allen 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 Manallement Letter:
Mr. Allen went over the City Management Letter and stated that there were no new deficiencies in the
FY 2008-09 audit. Mr. Allen stated the recommendations that were repeated from the report to
management for the year ended June 30, 2008 (see attached).
Mr. Allen 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 allowed in
certain securities and certain banks, for example collateralization. She also stated that not just small
local banks get seize and desist orders.
Mr. Tuneberg thanked Cindy Hanks and the Accounting group for all 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 CAFRlCUFR documents into new software.
Mr. Tuneberg thanked elected officials for their work and support. Mr. Tuneberg stated that not all
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 recommended more disclosure for this year.
The Committee questioned how long write offs are in the books before deterrnined 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
tirneline of debt collected. 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 reflected. Mr. Tuneberg
answered that the original values of the structure is reflected on page 100. Mr. Tuneberg stated that
assets stated on page 100 are secure.
The Committee questioned what the interfund loan reflects 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 land and the City got a loan 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
Sianina 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.
Everson/Silbiger ms that the Cornmittee 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 COMMIITEE 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 more 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.
Everson/Nutter ms to extend the contract with Pauly, Rogers and Co. All Ayes.
Mr. Tuneberg stated a quote from Kenny Allen. 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 all year round
which brings the City a successful auditl
Mr. Tuneberg suggested the Committee getting together again in March to layout all information and
talk about new requirements to plan for the audit. By March there will be an informal update on
comments that the auditor made on internal controls.
Adiournment
The meeting was adjourned at 2:50 p.m.
Respectfully Submitted,
Melissa Huhtala
Administrative Secretary
/
, .
AUDIT COMMITTEE MEETING
NOVEMBER 6, 2009 PAGE 5 of 5
Administrative Services Department
CiTY RECORDER Page 1/1
Ashland Park Commission Sjj;)?;"?,jEl~'1iE">~:,,l1~"!J t~c;:aF.!01NI'JMBER~jTJ
20 E MAIN ST.
ASHLAND, OR 97520
(541) 488-5300
11/24/2009
00033
VENDOR: 000632
PAULY, ROGERS AND CO., P.C.
12700 SW 72ND AVENUE
TIGARD, OR 97223
SHIP TO:
FOB Point:
Terms: net
Req. Del. Date:
Speciallnst:
Req. No.:
Depl.:
Contact: Cindy Hanks
Confirming? No
r::{QU~intTtVjf~ ~]Dnir~ 8:~C:?:U-;,;<C:}J:f:t:t::::. ~~:": ~-'~::~~:.;'lJoescriDtion-~~'~.:.J}rr~', : ~Z'0:.Z:~:;Z~:( ~>;.e~:;J~ ~1Ur1it:p.,Tc'-e~~ ri~J~jExi:ffificefE~rl
Municipal Audit Services FY 2009-2010 9,395.00
(Initial 3-year contract extendedfor
the 4th year) Per attached Addendum and
Price Ouote provided by Pauiy Rogers
and Co., P.C. Contract may be extended
for one additional year for a total of
5 years.
POs to be issued annuaiiy.
c
SUBTOTAL 9395.00
BILL TO: TAX 0.00
FREIGHT 0.00
TOTAL 9,395.00
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E 21 1.12.02.01.60412 9 395.00
.
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VENDOR COPY