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HomeMy WebLinkAbout2004-04-28 e-packet CITY COUNCIL OF THE CITY OF SOUTH SAN FRANC, ISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 Meeting to be held at: MUNICIPAL SERVICES BUILDING CITY COUNCIL COMMUNITY iROOM 33 ARROYO DRIVE WEDNESDAY, APRIL 28, 2004 6:00 P.M. NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 28th day of April, 2004, at 6:00 p.m., in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Purpose of the meeting: 1. Call to Order 2. Roll Call o Public Comments - comments are limited to items on the Special Meeting Agenda ° Interview applicants for Housing Authority m~d Cultural Arts Commission o Discussion/appointments to Housing Authority and Cultural Arts Commission o Closed Session: Pursuant to Government Code Section 54956.9(a), existing litigation, Costco v. City of South San Francisco and California Department of Toxic Substances Control (DTSC) v. City of South San Francisco . Adjournment Cit3/Clerk SP. AGENDA ITEM #4 City of South San Francisco h:er- ce d emr rancum DATE: April 28, 2004 TO: FROM: SUBJECT: Honorable Mayor and City Council Members City Clerk 4-- ~ CITY COUNCIL SPECIAL MEETING- cuLTURAL ARTS COMMISSION AND HOUSING AUTHORITY INTERVIEWS Cultural Arts Commission Due to the resignation of Gloria Lagomarsino on February 20, 2',004, there is one vacancy on the Cultural Arts Commission. As required, a notice of vacancy was posted on March 5, 2004, and the deadline to file was April 19, 2004. The schedule of interviews is as follows: 1) 6:00 p.m.: 2) 6:06 p.m.: 3) 6:12 p.m.: 4) 6:18 p.m.: Ms. Soledad Garcia (previously interviewed on 1/28/04) Mr. Andrew Estigoy* Ms. Alison Bond* Ms. Sonia H. Kucera * also applied for the Housing Authority Housing Authority The four-year term for Commissioner Harold Molumby (non-tenant) and the two-year term for Commissioner Nancy Britt (tenant) expired on March 31, 2004. Both are seeking. reappointment. As required, notices were posted on February 2, 2004 and the deadline to file was March 12, 2004. Non-tenant applicants' interview schedule: 1) 6:24 p.m.: 2) 6:32 p.m.: 3) 6:40 p.m.: Harold Molumby (originally appointed 12/10/03, partial term) Juan Bustos Eva Cezana Tenant applicants' interview schedule: 1) 6:48 p.m.: 2) 6:56 p.m.: Nancy Britt (originally appointed 8/7/96, partial term; 4/1/02, full term) Frank Roman (previously interviewed on 12/10/03) Attached is a copy of Council's revised interview questions, dated April 2004. · Discussion and appointments to Cultural Arts Commission and Housing Authority: If there is a consensus to move forward with the appointment process this evening, three separate ballots have been provided. Summary of appointment process: Cultural Arts Commission Housing Authority Housing Authority One vacancy One non-tenant seat is open One tenant seat is open No term expiration Four-year term, expiring 3/31/08 Two-year term, expiring 3/31/06 Motion to confirm the appointments is required, Enc: 1) Letters/applications requesting appointment 2) Council Questions 3) Ballot AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, APRIL 28, 2004 7:00 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows' The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future .Agenda for more comprehensive action or a report. When 'your name is called, please come to the podium., state your name and address for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. KARYL MATSUMOTO Chair RAYMOND L. GREEN Vice Chair RICHARD A. GARBARINO, SR. Boardmember RICHARD BATTAGLIA Investment Officer MICHAEL A. WILSON Executive Director JOSEPH A. FERNEKES Boardmember PEDRO GONZALEZ Boardmember SYLVIA M. PAYNE Clerk STEVEN T. MATTAS Counsel PLEASE TURN OFF CELL PHONES AN'D PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR o Motion to approve the minutes of April 14, 2004 . Motion to confirm expense claims of April 28, 2004 o Resolution authorizing the execution of a consulting agreement with Placemakers, Land Use and Environmental Consulting, for preparation of the EIR for the proposed redevelopment plan amendment to add the Oyster Point Marina and Business Park to the Downtown/Central Redevelopment Project Area in an amount not to exceed $117,904 and designating the Redevelopment Agency as lead agency CLOSED SESSION . Pursuant to Government Code Section 54956.8 real property' negotiations related to 820 Tennis Drive and 178-190 Airport Boulevard; Agency Negotiator: Redevelopment Agency Assistant Director Van Duyn ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING AGENDA APRIL 28, 2004 PAGE 2 Redeve'.'opment A genc;: Sta ' Report. RDA AGENDA ITEM #3 DATE: TO: FROM: SUBJECT: April 28, 2004 Redevelopment Agency Board Marty Van Duyn, Assistant Executive Director CONSULTANT SERVICES AGREEMENT FOR PREPARATION OF ENVIRONMENTAL IMPACT REPORT (EIR) TO INITIATE A REDEVELOPMENT PLAN AMENDMENT TO ADD THE OYSTER POINT MARINA AND BUSINESS PARK TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT AREA AND DESIGNATING THE REDEVELOPMENT AGENCY AS LEAD AGENCY FOR PREPARATION OF THE EIR. RECOMMENDATION It is recommended that the Redevelopment Agency Board adopt the attached Resolution authorizing the Executive Director to execute a Consultant Services Agreement not to exceed $117,904 with Placemakers, Land Use and Environmental Consulting, to prepare the environmental impact report (EIR) for the Redevelopment Plan Amendment to add the Oyster Point Marina and Business Park to the Downtown/Central Redevelopment Project Area and designating the Redevelopment Agency as lead agency for the EIR. BACKGROUND/DISCUSSION On March 10, 2004, the Redevelopment Agency Board authorized the Executive Director to execute a contract with Seifel Consulting, Inc., to study and prepare two separate and distinct redevelopment plan amendments. The first amendment authorized for study by the Board is the Fiscal Merger of the Gateway, Shearwater and Downtown/Central Redevelopment Project Areas, which is categorically exempt under the California Environmental Quality Act. The second project area amendment authorized by the Board and under study is the addition of the Oyster Point Area to the Downtown/ Central Redevelopment Project Area. The Oyster Point territory addition to the Downtown/Central Redevelopment Plan area does require the preparation of an EIR. Staff issued a Request for Proposals (RFP) to five environmental consulting firms. The firms that received the RFP are Placemakers, Impact Sciences, and Design, Community and Environment, Environmental Science Associates and EIP. Three firms responded to the RFP, those firms being Placemakers, Impact Sciences and Design, Community and Environment. The cost for services proposed range from $117,904 (Placemakers) to $183,850 (Impact Sciences) with Design, Community and Environment proposing $134,242. Staff Report To: Subject: Date: Redevelopment Agency Board EIR Oyster Point Marina/Downtown/Central Redevelopment Plan Amendment April 28, 2004 Page 2 Staff has focused the environmental review on potential impacts that could reasonably be foreseen to be a result of anticipated development in the Oyster Point Marina area, which includes a four star hotel and parking structure, a new regional convention center, and the creation of an increasingly popular environment for marine, recreation and commercial activity. Therefore, the EIR will focus on traffic, toxics, noise, air quality, biology, geology and soils, hydrology and water quality and visual resources. Placemakers' proposal is the most economical as well as the most responsive to the RFP that staff circulated. Placemakers has over 25 years experience in the environmental field. The principal, Patricia Jeffrey, has a degree in architecture, is AICP certified, and she will be the day-to-day contact and primary author of the EIR. Staff believes that Placemakers will bring a unique set of skills and services to the project. The proposed scope of work includes: · Programmatic analysis of potential impacts that may occur · Comprehensive analysis of land use issues · Project traffic and circulation conditions · Evaluation of water quality · Exploration of potential range of alternatives · Coordination with lead consultant for the Redevelopment Plan Amendment Placemakers will prepare the Initial Study, Administrative Draft EIR (ADEIR), Final Environmental Impact Report (FEIR) and Mitigation Management Plan. CONCLUSION The environmental work for the Downtown/Central Redevelopment Project Area Plan Amendment will be conducted in tandem with the Fiscal Merger process and is projected to be completed in July of 2005. Funds for this activity have been encumbered in the current Redevelopment Agency budget. It is recommended that the Redevelopment Agency Board adopt the attached Resolution authorizing the consulting services agreement and designating the Redevelopment: Agency as lead agency for the BY:Marty Van Duynt/' Assistant Executi'ge Director Michael A. Wffson Executive Director Attachments: Resolution Consulting Services Agreement RESOLUTION NO. REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING AN AGREEMENT WITH PLACEMAKERS, LAND USE AND ENVIRONMENTAL CONSULTING IN AN AMOUNT OF $117,904 TO PREPAR~ THE ENVIRONMENTAL IMPACT REPORT (EIR) FOR THE REDEVELOPMENT PLAN AMENDMENT TO .ADD THE OYSTER POINT MARINA AND BUSINESS PARK TO THE DOWNTOWN/CENTRAL REDEVELOPMENT PROJECT AREA AND DESIGNATING THE REDEVELOPMENT AGENCY AS LEAD AGENCY FOR THE EIR WHEREAS, staff recommends that the Redevelopment Agency authorizes an agreement with Placemakers, Land Use and Environmental Consulting in an amount: of $117,904 to prepare the environmental impact report (EIR) for the Redevelopment Plan Amendment to add the Oyster Point Marina and Business Park to the Downtown/Central Redevelopment Project Area and designates the Redevelopment Agency as lead agency for the EIR; and WHEREAS, the environmental work for the Downtown/Central Redevelopment Project Area Plan Amendment will be conducted in tandefn with the Fiscal Merger process and is projected to be completed in July of 2005; and WHEREAS, funds for this activity have been encumbered in the current Redevelopment Agency budget. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that the Redevelopment Agency hereby authorizes an agreement in the amount of $117,904 with Placemakers, Land Use and Environmental Consulting to prepare the environmental impact report (EIR) for the Redevelopment Plan Amendment to add the Oyster Point Marina and Business Park to the Downtown/Central Redevelopment Project Area and designating the Redevelopment Agency as lead agency for the EIR. A copy of the agreement is attached hereto. BE IT FURTHER RESOLVED that the Executive Director is ihereby authorized to execute the agreement on behalf of the Redevelopment Agency of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a regular meeting held on the ~ day of 2004 by the following vote: AYES: NOES: ABSENT: ATTEST: Clerk S :\Current Reso's\4-28agree.placemakers.rda.res.doc CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND PLACEMAKERS THIS AGREEMENT for consulting services is made by and between the City of South San Francisco ("City") and PLACEMAKERS ("Consultant") (together sometimes referred to as the "Parties") as of April 29, 2004 (the "Effective Date"). Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A, attached hereto and incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on , the date of completion specified in Exhibit A, and Consultant shall complete the work described in Exhibit A prior to that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City's fight to terminate the Agreement, as provided for in Section 8. 1.2 Standard of Performance. Consultant shall perform, all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. Consultant shall prepare all work products required by this Agreement in a substantial, first- class manner and shall conform to the standards of quality normally observed by a person practicing in Consultant's profession. 1.3 Assienment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Consultant shall devote such time to the perfon'nance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy Consultant's obligations hereunder. Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed $117,904.00, notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 1 of 15 the event of a conflict between this Agreement and Consultant's proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person. Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has n° responsibility for such contributions beyond compensation required under this Agreement. 2.1 2.2 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information: · Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; · The beginning and ending dates of the billing iperiod; · A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion; · At City's option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense; · The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder, as well as a separate notice when the total number of hours of work by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours, which shall include an estimate of the time necessary' to complete the work described in Exhibit A; · The Consultant's signature. Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 2 of 15 2.3 2.4 2.5 2.6 2.7 2.8 2.9 costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant. Final Payment. City shall pay the last 10% of the total sum due pursuant to this Agreement within sixty (60) days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed. Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment. Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the following fee schedule: Reimbursable Exl~enses. Reimbursable expenses generally identified below, and shall not exceed .five thousand nine hundred seventy five dollars ($5,975.00) without prior written authorization. Expenses not listed below are not chargeable to City. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded. Expenses include: mileage, tolls, copying, postage, overnight mail, document production costs, supplies, equipment rental. Payment of Taxes. Consultant is solely responsible tbr the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs incurred to that date. Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 3 of 15 Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein. City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant's use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit B, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and under forms of insurance satisfactory, in all respects, to the City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. 4.1 Workers' Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Consultant. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative, Consultant may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Consultant, if a program of self-insurance is provided, shall waive all fights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 4 of 15 4.2 4.3 Commercial General and Automobile Liabili~_ Insurance. 4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non-owned automobiles. 4.2.2 Minimum scooe of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 or GL 0002 (most recent editions) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 8 and 9. No endorsement shall be attached limiting the coverage. 4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: ao The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. b,, Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. Professional Liability Insurance. 4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) coveting the licensed professionals' errors and omissions. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 5 of 15 4.4 Any deductible or self-insured retention shall not exceed $150,000 per claim. 4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: a,, The retroactive date of the policy must be shown and must be before the date of the Agreement. b,, Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates. Co If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five years after completion of the Agreement or the work. The City shall have the right to exercise, at the Consultant's sole cost and expense, any extended reporting provisions of the policy, if the Consultant cancels or does not renew the coverage. d, A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement. All Policies Rec~uirements. 4.4.1 Accel~tabili _ty of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. 4.4.2 Verification of coverage. Prior to beginning any work under this Agreement, Consultant shall furnish City with complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall' show the signature of a person authorized by that insurer to bind coverage on its behalf. 4.4.3 Notice of Reduction in or Cancellation of Coveraee. A certified endorsement shall be attached to all insurance obtained pursuant to this Agreement stating that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. In the event that any coverage required by this section is reduced, limited, cancelled, or materially affected in any other Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 6 of 15 4.4.4 4.4.5 4.4.6 4.4.7 manner, Consultant shall provide written notice to City at Consultant's earliest possible opportunity and in no case later than ten (10) working days after Consultant is notified of the change in coverage. Additional insured; primary insurance. City and its officers, employees, agents, and volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Consultant, including the insured's general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by the Consultant in the course of providing services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to the City and its officers, officials, employees and volunteers, and that no insurance or self- insurance maintained by the City shall be called upon to contribute to a loss under the coverage. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Consultant may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Consultant procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Variation. The City may approve a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that the City's interests are otherwise fully protected. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 7 of 15 4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant's breach: Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or · Terminate this Agreement. Section 5. INDEMNIFICATION AND CONSULTANT'S RESPONSIBILITIES. Consultant shall indemnify, defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees, subcontractors, or agents, by acts for which they could be held strictly.liable, or by the quality or character of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the gross negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 8 of 15 Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Section 6. STATUS OF CONSULTANT. 6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the fight to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assigmnent of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the fight to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. 6.2 Consultant No Aeent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. Section 7. LEGAL REQUIREMENTS. 7.1 Governin~ Law. The laws of the State of California shall govern this Agreement. 7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. 7.3 Other Governmental Reeulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. 7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 9 of 15 shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. 7.5 Nondiscrimination and Equal Ot}portunity.. Consultant shall not discriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby. Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement. Section 8. TERMINATION AND MODIFICATION. 8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement. 8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consulting Services Agreement between the City of South San Francisco' Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 10 of 15 8.3 8.4 8.5 8.6 Section 9. 9.1 Consultant for any otherwise reimbursable expenses incurred during the extension period. Amendments. The parties may amend this Agreement only by a writing signed by all the parties. Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator. Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement. Options upon Breach b.v Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, the following: 8.6.1 Immediately terminate the Agreement; 8.6.2 Retain the plans', specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; 8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or 8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work. KEEPING AND STATUS OF RECORDS. Records Created as Part of Consultant's Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 11 of 15 any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties unless required by law. 9.2 Consultant's Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. 9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount, of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement. Section 10 MISCELLANEOUS PROVISIONS. 10.1 Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. 10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County San Mateo or in the United States District Court for the First District of California. 10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 12 of 15 10.4 10.5 10.6 10.7 10.8 whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. No Imi~lied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties. Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq. Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous twelve (12)months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement. Consultant understands that, if this Agreement is made in violation of Government Code § 1090 et. seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified fi.om holding public office in the State of California. Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 13 of 15 10.9 10.10 Contract Administration. This Agreement shall be administered by ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee. Notices. Any written notice to Consultant shall be sent to: 10.11 Any written notice to City shall be sent to: City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example. Seal and Signature of Registered Professional with report/design responsibility. 10.12 Inteeration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 14 of 15 10.13 Counterl~arts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. The Parties have executed this Agreement as of the Effective Date. CITY OF SOUTH SAN FRANCISCO PLACEMAKERS Michael A. Wilson, City Manager Name: Title: Attest: Sylvia Payne, City Clerk Approved as to Form: Steven T. Mattas, City Attorney 207532 1 Consulting Services Agreement between the City of South San Francisco Redevelopment Agency and PLACEMAKERS, Land Use and Planning Consultants April 29, 2004 Page 15 of 15 EXHIBIT A SCOPE OF SERVICES 1.0 Scope of Work The Scope of Work presented below is based on our understanding of the project at this time. Task 1 PREPARE INITIAL STUDY After contract negotiations are complete, PLACEMAKERS will meet with City staff (project initiation meeting) to discuss environmental issues. Available project information and background data will be collected from the City. Relevant data available from other public agencies also will be collected. The Initial Study will be prepared to focus the environmental topics for evaluation in the EIR. It is anticipated the Initial Study will focus out the following environmental topics: agriculture, cultural resources, mineral resources and population and housing. Five copies of the Administrative Draft Initial Study will be submitted to the City for staff review and comment. The Initial Study will be revised based on staff comments and two copies of the Final Initial Study will be submitted to the City. Task 2 PREPARE PROJECT SCHEDULE A comprehensive project schedule will be prepared in coordination with City staff and the Lead Consultant's schedule for preparation of the Plan Amendment. Task 3 PREPARE ADMINISTRATIVE DRAFT EIR (ADEIR) An ADEIR will be prepared in full compliance with CEQA. It will provide a comprehensive analysis of project impacts. Presented below is a description of the sections included in the ADEIR. Eight copies of the ADEIR will be provided to the City. 3.1 Executive Summary An executive summary will be prepared and will include a project overview and a table that presents project impacts, their significance before mitigation, mitigation measures and significance of project impacts after mitigation. 3.2 Introduction Consulting Services Agreement between City of and [DATE] --Exhibit A Page 1 of 12 The introduction will include a discussion of the project purpose and objectives, intended uses of the EIR and a description of the CEQA process. 3.3 Project Description A project description will be prepared that describes the project history and background of Oyster Point, a description of the physical characteristics of the project site, the Plan Area amendment process including jurisdictional and permitting agencies. A project location map will be prepared and included. The project site plan and other drawings provided by the project applicant also will be incorporated into the project description. A draft project description will be submitted to the City for review and approval prior to initiation of project impact analysis. 3.4 Environmental Setting, Potential Impacts and Mitigation Measures A comprehensive discussion describing the setting, potential project impacts and feasible mitigation measures will be prepared for each environmental topic. 3.4.1 Land Use Issues: The project would add approximately 57 acres of marina, commercial/retail, hotel and recreational use to the Plan Area. The relationship between the existing and planned land uses in the Plan Area and the land uses and activities of the Oyster Point Marina and Business Park must be identified. The anticipated land use effects resulting from expansion of the Plan Area will need to be clearly identified, including the internal impacts (i.e. within the expanded redevelopment area boundary) and the external impacts (i.e., surrounding land uses). Expanding the boundaries of the Plan Area will result in BCDC having jurisdictional authority over portions of the Plan Area. Conduct Site Visit to Identify Existing Land Uses in Project Vicinity. A site visit will be conducted to identify and map the land uses in the current Gateway Redevelopment Project Plan Area and the Oyster Point Marina and Business Park and the immediate project vicinity. Land use characteristics and activities will be described. The General Plan land use and zoning designations, overlay districts, and any other land use restrictions will be shown for the project area and the immediate project vicinity. Assess Land Use Compatibility and Potential Conflicts with Adjacent and Nearby Land Uses. With the expansion of the Plan Area boundaries, there is the potential for increased intensities of land use within the area. The affects of increased commercial/retail land use activity on recreational facilities at the marina will be analyzed. The potential land use impacts of the proposed project on nearby uses will be described. A brief discussion of the identification of Oyster Point as the site for a new ferry terminal will be provided, however, as per the RFP, it will not be analyzed in the EIR. Develop Mitigation Measures Feasible mitigation measures to reduce or eliminate any potentially significant adverse land use impacts will be developed. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 2 of 12 3.4.2 Plans, Policies and Zoning Issues: Multiple plans establish policies and govern land use development for the project area. The Zoning Ordinance includes the Oyster Point Specific Plan District zoning district establishes development standards and permits development of coastal commercial uses. Evaluate Project Conformance with Applicable Plans and Programs An evaluation of project conformance with the General Plan, Gateway Redevelopment Project Area Plan, East of 101 Area Plan and Oyster Point Marina Specific Plan and Specific Plan District and San Francisco Bay Plan will be undertaken. A conformance matrix will be developed that identifies applicable planning policies, programs and guidelines and summarizes project conformance with them. Review Zoning Restrictions The permit restrictions governing development at Oyster Point will be addressed. Develop Mitigation Measures Mitigation measures will be developed to address project conflicts with plans, policies, programs and zoning requirements. 3.4.3 Visual Resources Issues: The project site is adjacent to San Francisco Bay which is a valuable visual resource for the City of South San Francisco. The Oyster Point Marina includes a windsurfing and boat launch ramp, fishing pier, park and trails. Views of the Bay are available from all of these recreational facilities. Although future development within the project site would most likely not affect Bay views from recreational facilities, this should be confirmed. The Initial Study prepared on the project will determine if the project could result in potentially significant impacts to visual resources. If the Initial Study determines there are potentially significant visual impacts, a visual resources section will be included in the EIR. Describe Existing Conditions The visual characteristics of the project site and vicinity will be described. Key observation points will be identified in coordination with City staff for use in assessing potentially significant visual impacts. Identify Visual Impacts Potential visual impacts resulting from development within the project site will be identified. This will include an assessment of impacts from within the project site as well as impacts within the redevelopment plan area and immediate project vicinity. Develop Mitigation Measures Feasible mitigation strategies will be developed to reduce or eliminate identified significant impacts. 3.4.4 Traffic and Circulation CCS Planning and Engineering will prepare the traffic analysis for the EIR. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 3 of 12 Issues: The City's current traffic model does not include future development within an expanded Plan Area. It will be necessary to update the traffic model to reflect changing development conditions in the project area. New development, such as a hotel and conference center will generate additional traffic affecting the level of service at nearby intersections. New development will also affect circulation within the Plan Area. The adequacy of parking, pedestrian safety and bicycle access are all important issues that must be addressed. Project Initiation A visit to the project site, data collection, scoping, and other preparation for the initial project study will be undertaken. CCS will collect a description of the existing study roadway characteristics and a description of transit service based on data obtained from published documents. Environmental Review The existing studies and documents will be reviewed to validate the analysis results in the study area. Based on these findings the East of 101 area-wide traffic model will be updated to evaluate the existing peak hour traffic operations at the study intersections. The study intersections include the 30 intersections evaluated as part of the East of 101 Traffic Improvement Program (TIP). Alternatives Analysis Analyze the traffic conditions at the study intersections using the East of 101 area-wide traffic model. The following future conditions will be evaluated: Baseline Conditions Project Conditions Project Alternative Conditions The Baseline Conditions include evaluation of the traffic projections under moderate traffic demand management (TDM) conditions, as defined in the East of 101 TIP. No additional study intersections will be evaluated under Baseline Conditions. The Project Conditions include buildout of the Gateway Redevelopment area. Evaluation of this scenario includes estimating the number of AM and PM peak hour trips that would be generated by the assumed land use, and assigning these trips over the roadway network based on the distribution patterns assumed in the model. The traffic operations of the study intersections with these trips added to the existing counts will be evaluated. Additionally, traffic operations at driveway intersections internal to the project area will be evaluated. The Project Alternative Conditions will include the evaluation of traffic operations under an alternate land use assumption in the Gateway Redevelopment area. Concept plans and cost estimates for improvements at the study intersections are not included in this scope and budget. The need for these items can be revisited once the improvements have been determined. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 4 of 12 Two separate documents will be prepared as part of this study: (1) Addendum to the East of 101 Traffic Improvement Program. This document will include the traffic analysis of the 30 study intersections revised to reflect the proposed Gateway Redevelopment area land uses. A letter report will be submitted to the City for review. (2) The traffic section of the Gateway Redevelopment Plan Amendment EIR. This document will include the traffic analysis for the intersections directly impacted by the Gateway Redevelopment project, as well as intersections internal to the project area. 3.4.5 Air Quality Illingworth & Rodkin will prepare the air quality analysis for the EIR. Issues: The major air quality issue is the project's contribution to region-wide ozone precursor (i.e., nitrogen oxides and reactive organic gases) emissions. Since the originally proposed density and land use mix has been modified, the prediction of air quality pollutant emissions must be revised. The major focus of the air quality analyses will be to identify differences in air quality impacts between the approved specific plan and the recently modified plan. The following scope of work is consistent with the CEQA guidelines published by the Bay Area Air Quality Management District. Describe Existing Conditions The most recent air quality and climate data for the South San Francisco area will be used to describe the area affected by the project. Identify Air Quality Impacts Potential air quality impacts will be identified at the regional and local levels. Construction impacts will also be identified including: Regional impacts. Air pollutants that are considered to affect air quality at a regional level will be assessed. This involves the prediction of ozone precursor pollutants and PM10 emissions. These emissions will be predicted by combining forecasted travel activity (vehicle miles traveled and speed) with vehicle emission factors. The most recent EMFAC7 model will be used to generate these emission factors. Predicted daily emissions resulting from changes in the project will be compared against significance thresholds established by the Bay Area Air Quality Management District. Local impacts. If there are intersections that are anticipated to be more congested than under the approved Area Plan, localized air quality impacts will be assessed. This would be done by modeling future carbon monoxide concentrations using the appropriate computer model along with the most recent emission factors (generated by the EMFAC7 model). The model will predict roadside carbon monoxide levels. Appropriate background levels would be added to modeled levels to predict future carbon monoxide concentrations. The significance Consulting Services Agreement between City of and [DATE] --Exhibit A Page 5 of 12 of carbon monoxide levels would be evaluated against a no-project scenario and state and federal air quality standards. Construction impacts. Dust from construction activities which could lead to both nuisance and health affects will be analyzed. The focus of this analysis will be to determine the most appropriate mitigation measures to reduce impacts to a level of insignificance. Develop Mitigation Measures Where appropriate, mitigation measures will be developed to reduce potentially significant impacts. These would be based on previous mitigation measures, which are intended to reduce automobile traffic and congestion. The effectiveness of the mitigation measures will be evaluated based on published data presented by the Bay Area Air Quality Management District and other agencies. 3.4.6 Noise Illingworth & Rod~'n will prepare the noise analysis for the EIR. Issues: The compatibility of future development with existing development and land use activities within the project site as well as compatibility with adjacent land use activities outside of the Plan Area is a key issue. The focus of the noise analysis will be to assess the noise and land use compatibility of the proposed project against the Noise Element of the City's General Plan and California State Building Code standards. Emphasis will be made on identifying appropriate mitigation measures to reduce noise impacts from traffic and aircraft. Describe Existing Conditions Existing noise data collected for the project will be used to characterize noise conditions at the project and project-affected areas. A site visit and short-term noise measurements will be made. Future noise exposure contours prepared for San Francisco International Airport will be used to assess aircraft noise impacts. Major noise sources (traffic and aircraft) will be identified and characterized. Identify Noise Impacts Noise and land use compatibility. Future noise levels affecting the project uses will be predicted based on predictions made for previous project studies. Substantial noise sources that will affect the project include traffic and aircraft. These levels will be compared against noise and land use compatibility guidelines contained in the Noise Element of the City's General Plan to determine the significance of the impact. Mitigation measures to reduce significant impacts will be identified and evaluated. These measures may take the form of noise barriers or minor design modifications. Traffic noise modeling would be conducted to evaluate the effectiveness of sound walls or backyard fences in reducing noise levels at residential locations. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 6 of 12 Traffic noise impacts. Changes in noise levels resulting from project generated traffic compared to the approved project traffic will be predicted. These changes will be compared against appropriate standards of significance. Construction noise impacts. Construction activity noise levels will be predicted at any noise sensitive areas, including newly developed residential areas that are part of the project. The prediction of these noise levels will be based on the type and intensity of activities. Develop Mitigation Measures If necessary, mitigation measures for operational activities will be identified and evaluated. Appropriate measures to reduce construction noise impacts will be identified. 3.4.7 Biological Resources Environmental Collaborative will prepare the Biological Resources section of the EIR. Issues: The project site is adjacent to San Francisco Bay. The site consists of reclaimed land and major biological constraints are not anticipated. However, it will be necessary to confirm the presence or absence of sensitive biological resources such as seasonal wetlands and populations of special-status species. The Initial Study prepared on the project will determine if the project could result in potentially significant impacts to biological resources. If the Initial Study determines there are potentially significant biological impacts, a biological resources section will be included in the EIR. Describe Existing Conditions Collect and review existing information on biotic resources in the project vicinity. Information Sources will include: environmental documentation for other development applications in the surrounding area, wetlands mapping prepared as part of the National Wetland Inventory, records on occurrences of special-status taxa and sensitive natural communities maintained by the California Natural Diversity Data Base and information on sensitive or special-status taxa available from the City, the California Department ofFish and Game (CDFG) and the U.S. Fish and Wildlife Service (USFWS) will be consulted to determine concerns or specific knowledge of any sensitive resources in the area. Conduct a field reconnaissance of the site, focusing on the remaining undeveloped parcels. The survey effort will serve to identify vegetation types, wildlife habitat and prominent biological features. No additional detailed field surveys are proposed. If additional surveys are determined to be necessary to provide a conclusive determination on presence or absence of sensitive resources, we will coordinate with the City to determine if the studies should be undertaken during preparation of the Gateway Redevelopment Project Area Amendment EIR or recommended as a mitigation measure to be undertaken when a specific development project is proposed. Identify Biological Impacts Potential impacts to biological resources will be identified. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 7 of 12 Develop Mitigation Measures Feasible mitigation measures to reduce or eliminate any potentially significant adverse land use impacts will be developed. 3.4.8 Hydrology and Water Quality LFR will prepare the Hydrology and Water Quality section of the EIR. Issues: The project site is a closed landfill that is adjacent to San Francisco Bay. Considerable study has been undertaken to address the type, magnitude and extent of hazardous substances at the project site. In addition, substantial analysis has been conducted to address the potential of hazardous substances migrating into the Bay and adversely affecting water quality. Groundwater wells have been installed at the landfill to monitor the amount of hazardous materials in groundwater and their potential to migrate to the Bay. The stormwater runoff from future development at the project site may also adversely affect Bay water quality. Much of the site is in an A1 flood zone and the potential affects of flooding will require analysis. Review Existing Reports and Background Information Existing reports prepared on the project site will be reviewed including the Report of Waste Discharge Oyster Point Landfill and Phase II Toxics Investigation/Work Plan prepared by Gabewell, the PEA prepared by LFR and the Monitoring Plan prepared by CH2MHill. As appropriate, information from these studies, as well as others, will be incorporated into the environmental analysis. Describe Existing Conditions The existing hydrologic conditions will be described. Most of the project site is developed with existing office buildings, hotels, retail outlets, marina-related uses, and parking lots. The hydrology of the regional watershed and the project watershed will be reviewed and described. This analysis will include a description of watershed conditions, local wetland areas, drainage patterns, flooding potential, and the relationship between groundwater and the nearby San Francisco Bay. Drainage boundaries will be defined and existing rainfall runoff characteristics will be presented, based primarily on information supplied with the project application and through contacting public agencies. Any existing drainage, flooding, or shoreline erosion/instability problems will be identified and described. Particular attention will be paid to the relationship between the site drainage and the nearby shoreline. Identify Hydrology and Water Quality Impacts The hydrologic/drainage impacts of the proposed project will be analyzed. The amount of land disturbance and impervious surfaces created will be assessed and this information will be used to develop corresponding estimates of the projected change in runoff characteristics for the developed conditions. The runoff impacts will be presented for all applicable drainage sub-basins on the site and will cover both the effects on annual/seasonal runoff as well as peak storm flow. The potential impacts of hydrologic changes will be identified and described including any on-site flooding effects and shoreline erosion. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 8 of 12 Potential changes in surface runoff water quality will be analyzed and described. This will consider existing water quality conditions, to the extent they are known, and the likely changes in the type and amount of runoff pollutants associated with site development. Surface runoff management practices and design features planned for the project will be taken into account in this analysis. Surface runoff water quality effects are anticipated to relate primarily to erosion and sedimentation; but other effects from parking lot runoff and site development will also be considered. Develop Mitigation Measures Mitigation measures will be identified for hydrologic-surface runoff impacts determined to be significant or potentially significant under the proposed project. Mitigation may include avoidance of certain critical drainage areas, design/management practices, drainage facility improvements, and implementation of water quality best management practices. 3.4.9 Geology, Soils and Seismicity LFR will l~repare the Geology, Soils and Seismicity section of the EIR. Issues: The project site is a closed landfill adjacent to San Francisco Bay. New development occurring on the project site must be carefully constructed so as not to adversely affect the landfill cap. The project site lies in the seismically active region of the San Andreas Fault System. Building foundation designs must take into consideration the suitability of fill material to support building loads. Because of the project site's location, there is a potential for severe ground motion, liquefaction, densification or slope failure. Review Existing Reports and Background Information Existing reports prepared on the project site will be reviewed including the various geotechnical reports prepared by Woodward-Clyde. As appropriate, information from these studies will be incorporated into the environmental analysis. Describe Existing Conditions A site geological reconnaissance will be completed. The regional geology will be summarized. The project site, a former landfill, is located in the Coast Range Geomorphic Province, on the western edge of San Francisco Bay and is primarily reclaimed land. The majority of the near-surface sediments consist of capped fill material. Subsurface conditions will be generally described. The geologic conditions of the project site will be described. Identify Geological Impacts Regional and project site geology will be presented and summarized as it applies to geological hazards of the area. The potential for severe ground motion, liquefaction, densification, or slope failure will be estimated from published reports and studies. Based on a review of published regional geological, soil, and fault related reports and maps, potentially significant or significant geological and geotechnical impacts will be determined. Consulting Services Agreement between City of and [DATEI --Exhibit A Page 9 of 12 In addition, the site suitability for construction of roads and buildings based on the site soil, rock, and slope conditions will be evaluated. Develop Mitigation Measures Feasible mitigation measures for all potentially significant and significant impacts will be proposed. These may include avoidance of certain areas, and/or special design measures. 3.4.10 Hazardous Materials LFR M//prepare the Hazardous Materials section of the t511L Issues: The project site sits on reclaimed land that is a closed landfill. Closure of the landfill involved extensive study and monitoring which is ongoing. Contamination of water and soil due to the presence of hazardous substances is a key issue. Future development at the project site will need to be studied to determine its affect on the landfill cap and potential exposure to hazardous substances that may result from new development. In addition, there is the potential for hazardous materials to be generated, stored, or disposed of due to operations from new development. Review Background Reports and Information All available and applicable reports concerning hazardous materials present in the site vicinity will be reviewed. Describe Existing Conditions The existing conditions at the project site will be summarized. Applicable information from existing studies outlining the history of the project site will be summarized. Using existing information, contaminated areas on the site and within the project area will be identified. Identify Potential Impacts Impacts of hazards and hazardous materials will be assessed. The potential for health risk to the public and environment based on historical uses of the project site will be assessed. With operation of the project, we will assess the potential for hazardous materials to be generated, stored, or disposed of. Develop Mitigation Measures Appropriate mitigation measures will be recommended to offset potential hazards and hazardous materials impacts. 3.4.11 Public Services and Utilities Issues: New development in the project area will result in additional demand on public services and utilities. It will be necessary to determine if current and planned capacities are adequate to serve proposed new development at the project site. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 10 of 12 Describe Existing Conditions Available reports will be reviewed and the various districts, agencies and companies that would serve development at the project will be contacted. Existing public facilities and services will be described. Identify Public Services and Utilities Impacts Impacts on recreation, police protection, fire protection, water supply, wastewater, solid waste disposal, phone and electricity will be assessed. It is assumed that schools will not be adversely impacted by the project because the planned uses do not include residential use. We will assess the project's impact on existing recreational facilities. We will discuss estimated emergency response times and access to the project site for emergency vehicles. We will calculate water and wastewater demand in consultation with the agencies. Solid waste generation will also be estimated. Identify Mitigation Measures Appropriate mitigation measures will be recommended to offset potential impacts to public services and utilities. 3.5 ALTERNATIVES Up to three alternatives will be developed in coordination with the City. The alternatives will include the CEQA-required No Project alternative and up to two other alternatives to be developed in coordination with City staff. 3.6 OTHER CEQA REQUIRED SECTIONS Impact analyses will be prepared for the following topics: cumulative impacts, growth-inducing impacts, unavoidable adverse impacts, short-term versus long-term productivity, significant irreversible environmental changes and effects found not to be significant. 3.7 PREPARE DRAFT EIR (DEIR) Based on City comments on the ADEIR, the DEIR will be prepared and a camera-ready copy of the DEIR will be submitted to the City for review and approval prior to document production. The NOC will be prepared and filed with OPR. The City will be provided with 100 copies of the DEIR. Additional copies of the DEIR will be provided at an additional cost. 3.8 PREPARE FINAL EIR (FEIR) Responses to oral and written comments on the DEIR will be prepared and incorporated into a Response to Comments document. An Administrative FEIR will be prepared and eight copies will be provided to the City for review and comment. A total of 40 technical hours are estimated to prepare responses to public comments. If additional time is necessary to respond to public comments, this will be billed on a time and expense basis. The Response to Comments document combined with the DEIR will constitute the FEIR. The City will be provided with 75 copies of the FEIR. Additional copies of the FEIR will be provided at an additional cost. 3.9 PREPARE MITIGATION MONITORING PROGRAM Consulting Services Agreement between City of and [DATE] --Exhibit A Page 11 of 12 Prepare a Mitigation Monitoring Program (MMP) for the project in compliance with Public Resources Code section 21081.6(a). The MMP will incorporate commenting agencies recommendations for monitoring activities received during the public review period for the EIR. 3.10 MEETINGS The project manager, Patricia Jeffery, will attend seven meetings including a project initiation meeting with City staff, three meetings before the Planning Commission (study session and public heating on DEIR and FEIR), one meeting before the Redevelopment Agency/City Council (adoption of FEIR) and deputy project manager will attend up to seven meetings including a kick-off meeting (see Task 1), three public meetings before the Planning Commission including two public heatings and a study session, one public heating before the Redevelopment Agency/City Council and up to two working meetings with City staff during preparation of the Draft and Final EIRs. Loft Cheung, Deputy Project Manager, will attend up to four meetings. 3.11 PUBLIC NOTICING PLACEMAKERS will prepare the following notices for the public noticing and review process for the EIR: Notice of Preparation, Notice of Completion, newspaper ad noticing public heatings on the project and the Notice of Determination. Consulting Services Agreement between City of and [DATE] --Exhibit A Page 12 of 12 EXHIBIT B INSURANCE CERTIFICATES 207532 1 Consulting Services Agreement between City of and --Exhibit B [DATE] Page 1 of 1 AGENDA CITY COUNCIL CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICE BUILDING COMMUNITY ROOM WEDNESDAY, APRIL 28, 2004 7:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Council business, we proceed as follows: The regular meetings of the City Council are held on the second and fourth Wednesday of each month at 7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents the City Council from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address (optional) for the Minutes. COMMENTS ARE GENERALLY LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The City Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Council action. KARYL MATSUMOTO Mayor RAYMOND L. GREEN Vice Mayor JOSEPH A. FERNEKES Councilman RICHARD A GARBARINO, SR. Councilman PEDRO GONZALEZ Councilman RICHARD BATTAGLIA City Treasurer SYLVIA M. PAYNE City Clerk MICHAEL A. WILSON City Manager STEVEN T. MATTAS City Attorney PLEASE TURN OFF CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMPAIRED AT CITY COUNCIL MEETINGS CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE INVOCATION PRESENTATIONS · State of the City- Mayor Matsumoto · Annual Teen Poetry Contest Winners- introduced by Ann Mahon, Library Program Manager, and Annie Kerin, Librarian II · Proclamation: National Historic Preservation Week, May 3-9, 2004 - recipient: Chair Bob Masuda · Special Olympics' Representative Ms. Angie Calderon- Police Department recognition AGENDA REVIEW PUBLIC COMMENTS ITEMS FROM COUNCIL · Announcements · Committee Reports CONSENT CALENDAR Motion to approve the minutes of April 14, 15, and 19, 2004 . Motion to confirm expense claims of April 28, 2004 o Resolution accepting dedication of debris basins and access roads from the County of San Mateo . Motion to accept the Gull Drive/Forbes Boulevard Traffic Signal Project in accordance with plans and specifications o Resolution awarding a five year auditing services contract to Maze and Associates for fiscal year ending June 30, 2004 through June 30, 2008 o Acknowledgement of proclamations issued: Arbor Day, April 17, 2004; Police Reserve Officer Appreciation Day, April 23, 2004; Police Services Volunteer Appreciation Day, April 23, 2004 COUNCIL COMMUNITY FORUM ADJOURNMENT REGULAR CITY COUNCIL MEETING AGENDA __ APRIL 28, 2004 PAGE 2 AGENDA ITEM 3. Resolution accepting dedication of debris basins and access roads from County of San Mateo Item being removed from agenda. Staff Report DATE: April 28, 2004 TO: The Honorable Mayor and City Council FROM: Director of Public Works AGENDA ITEM #4 SUBJECT: GULL DRIVE/FORBES BOUIJEVARD TRAFHC SIGNAL PROJECT ENGINEERING FILE TR-98-02, PROJECT NO. 51-13231-0209, BID NO 2328 RECOMMENDATION: It is recommended that the City Council, by motion, accept the Gull Drive/Forbes Boulevard Traffic Signal Project as complete in accordance with the plans and specifications. B ACKGROUND/DIS CUS SION: This project provided a new traffic signal at the intersection of Gull Drive and Forbes Boulevard and an interconnect cable to a recently awarded signal improvement project at the intersection of Eccles Avenue and Forbes Boulevard. The new traffic signal has significantly improved the ability of local residents to enter Forbes Boulevard from Gull Drive. The project has been inspected by City staff and is completed in accordance with the plans and specifications. Acceptance of the project will provide authorization for staff to file a Notice of Completion and to release the payment performance bond and ten percent retention at the end of the thirty-day lien period. FUNDING: The construction was completed at a total cost of $112,243.75 which includes awarded amount of $92,246.00 plus $19,997.75 for 3 change orders to cover unknown field conditions and revised requirements by PG&E for a service pedestal. Construction costs are budgeted in the 2003-2004 Capital Improvement Program (CIP/51-13231-0209) in the amount of $150,000.00. The Engineers Estimate for this project was $110,000.00. John Gibf) s DirectorJof Public Works /<~./..,.,/- x. Michael A. Wilson City Manager BH/JG/ed ff R p ta e ort AGENDA ITEM #5 DATE: April 28, 2004 TO: FROM: SUBJECT: Honorable Mayor and City Council Jim Steele, Director of Finance AWARD OF AUDITING SERVICES CONTRACT TO MAZE AND ASSOCIATES RECOMMENDATION: It is recommended that City Council adopt a resolution that authorizes the City Manager to sign a contract with Maze and Associates for a five-year auditing services contract. The contract will cover the fiscal years ending June 30, 2004 thru June 30, 2008, contingent on an annual appropriation for the contract in the budget process each year. The contract shall not exceed annual amounts that rise from $59,350 to $67,058 through the contract term. BACKGROUND/DIS CUSSION: Bond rating agencies, grant authorities, regulatory bodies, the State of California, and debt trustees require City financial statements and special reports audited by an independent certified public accounting (CPA) firm. As part of their audit, the audit/CPA firm reviews and reports on City procedures and internal controls and reports such findings to City management and the City Council. The City has completed the audit contract of the past six years, with C.G. Uhlenberg LLP of Redwood City. While satisfied with their work, it is more fiscally prudent to rotate to a new auditing firm periodically, so that a new audit firm may take a fresh look at internal controls and procedures, the City's financial policies and practices, and the City's financial reporting. For this reason, the Finance Department distributed requests for proposals to eleven California public accounting firrns in October 2003. Finance staff received and judged six proposals, and interviewed two finalists, Maze and Associates of Walnut Creek and Caporicci & Larson of Oakland. After the interviews, Finance selected Maze and Associates as having best met the following selection criteria: 1) Demonstrated knowledge of new Government Accounting Standards Board (GASB) financial reporting requirements; 2) Demonstrated ability to provide software and consulting skills which will facilitate more efficient preparation of the City's financial statements; 3) A thorough, yet creative/flexible audit approach that will adequately address financial controls in the City; 4) Technical and communication abilities that will work well within the culture and structure of the City's organization; and 4) Favorable experience with other cities in the Bay Area. Outstanding references were given by several cities Staff Report Subject: Maze and Associates Audit Services Contract Award April 28, 2004 Page 2 of 2 including Daly City, Belmont, Palo Alto and Milpitas. Note that it is standard practice for cities to award multi-year audit contracts, since there is a knowledge base that is built up after the first year' s audit that results in more thorough audit services and at a lower cost, once that knowledge base develops. FUNDING: The General Fund, Redevelopment Agency, Sewer Enterprise Fund, Community Development Block Grant Fund, Measure A Sales Tax Fund, and Airport Noise Insulation Program share in the cost of the audit. There are sufficient funds in these budgets for audit costs. By: xC'X~, ~~ Approved: Ji.rr~ Steele Director of Finance City Manager Attachment' Resolution Auditing Services Agreement including Exhibits A thru C RESOLUTION NO. CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AWARDING MAZE AND ASSOCIATES ACCOUNTANCY CORPORATION A FIVE-YEAR AUDIT~G SERVICES CONTRACT TO PERFORM THE CITY'S AUDITS FOR THE FISCAL YEAR ENDING JUNE 30, 2004 THRU JU2qE 30, 2008, CONTINGENT ON AN ANNUAL APPROPRIATION FOR THE CONTRACT WHEREAS, staff recommends that the City Council award Maze and Associates Accountancy Corporation a five-year auditing services contract that will perform the City's audits for the fiscal year ending June 30, 2004 thru June 30, 2008, contingent on an annual appropriation for the contract; and WHEREAS, the General Fund, Redevelopment Agency, Sewer Enterprise Fund, Community Development Block Grant, Measure A Sales Tax, and Airport Noise Insulation Program share in the costs; and WHEREAS, the rest of the audit contract will commence contingent upon adoption of the City's annual budgets starting in 2004-05. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the City Council hereby awards Maze and Associates Accountancy Corporation a five-year auditing services contract that will perform the City's audits for fiscal years ending June 30, 2004 thru June 30, 2008, contingent on an annual appropriation for the contract. The contract is attached as Exhibit A. BE IT FURTHER RESOLVED that the contract shall not exceed annual amounts that rise from $59,350 to $67,058 through the contract term. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute the contact on behalf of the City of South San Francisco. I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a meeting held on the day of ,2004 by the following vote: AYES' NOES' ABSTAIN: ABSENT: ATTEST: City Clerk S :\Current Reso's\4-2 8Maze&Assoc.award.contract.res.doc AUDITING SERVICES AGREEMENT BETWEEN THE CITY OF SOUTH SAN FRANCISCO AND Maze and Associates Accountancy Corporation THIS AGREEMENT for auditing services is made by and between the City of South San Francisco ("City") and Maze and Associates Accountancy Corporation ("Auditor") (together sometimes referred to as the "Parties") as of April 28, 2004 (the "Effective Date"). Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Auditor shall provide to City the services described in the scope of services and fees and request for proposals attached as Exhibits A and B, attached hereto and incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibits A and B, the Agreement shall prevail. 1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on March 31, 2009, when the last required report specified in Exhibits A and B is due to regulatory agencies. Auditor shall complete the work described in Exhibits A and B prior to that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Auditor to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as provided for in Section 8. 1.2 Standard of Performance. Auditor shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Auditor is engaged in the geographical area in which Auditor practices its profession. Auditor shall prepare all work products required by this Agreement in a substantial, first-class manner and shall conform to the standards of quality normally observed by a person practicing in Auditor's profession. 1.3 Assi_clnment of Personnel. Auditor shall assign only the personnel either described in Exhibit A or those presented in the interviews during the proposal process. Due to staff attrition, if it becomes necessary to substitute personnel, the Auditor shall assign only personnel competent to perform services pursuant to this Agreement. The City shall, at their option, examine the qualifications of substituted personnel through interviews and/or resumes before the start of their assignment. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of personnel, Auditor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons. 1.4 Time. Auditor shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.1 above and to satisfy Auditor's obligations hereunder. Section 2. COMPENSATION. City hereby agrees to pay Auditor an annual sum not to exceed the "Total all-inclusive maximum price" for each of the years 2004 thru 2008 listed in the "Schedule of Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 1 of 13 Professional Fees and Expenses for the Audits of the Financial Statements for the Years Ended June 30:" as shown on pages 9 and 10 of Exhibit A. For the duration of the contract, the Auditor shall perform the Optional Services described on pages 9 and 10 of Exhibit A, with the fee for such services waived. Except for the waiver of the Optional Services fee, this compensation is notwithstanding any contrary indications that may be contained in Auditor's proposal, for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Auditor's Scope of Services and Fees, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Auditor for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Auditor for services rendered pursuant to this Agreement. Auditor shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Auditor shall not bill City for duplicate services performed by more than one person. Auditor and City acknowledge and agree that compensation paid by City to Auditor under this Agreement is based upon Auditor's estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Auditor. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Auditor and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement. 2.1 Invoices. Auditor shall submit invoices, not more often than once a month during the term of this Agreement, based on the actual cost for services performed prior to the invoice date. 2.2 Monthly Payment, City shall make monthly payments, based on invoices received, for services satisfactorily performed. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Auditor. 2.3 Final Pavment. City shall pay the last 10% of the annual contract cost after City receipt of all deliverables for each annual year, with the final deliverable being the Single Audit report. 2.4 Total Payment. City shall pay for the services to be rendered by Auditor pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Auditor in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Auditor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed amendment or engagement letter. 2.5 Hourly Fees. Fees for work performed by Auditor on an hourly basis shall not exceed the amounts shown within Exhibit A. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 2 of 13 2.6 Out-of-Pocket Expenses. As described in Exhibit A, out-of-pocket expenses are included in the standard hourly rate. 2.7 Payment of Taxes. Auditor is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes. 2.8 Payment upon Termination, In the event that the City or Auditor terminates this Agreement pursuant to Section 8, the City shall compensate the Auditor for all outstanding costs incurred for work satisfactorily completed as of the date of written notice of termination. Auditor shall maintain adequate logs and timesheets in order to verify costs incurred to that date. 2.9 Authorization to Perform Services. The Auditor is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the City. An annual engagement letter provided by the Auditor and agreed to by the City's Contract Administrator shall be the vehicle to do this. Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Auditor shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Auditor only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein. City shall furnish physical facilities such as desks, filing cabinets, conference space, telephone, and a personal computer terminal as may be reasonably necessary for Auditor's use while auditing with City employees and reviewing records and the information in possession of the City. The computer terminal shall be used for inquiry access to City ledgers and records. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer programming charges, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Auditor, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Auditor and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Auditor shall provide Certificates of Insurance, attached hereto and incorporated herein as Exhibit C, indicating that Auditor has obtained or currently maintains insurance that meets the requirements of this section and under forms of insurance satisfactory, in all respects, to the City. Auditor shall maintain the insurance policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Auditor's bid. Auditor shall not allow any subcontractor to commence work on any subcontract until Auditor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 3 of 13 4.1 4.2 Workers' Compensation. Auditor shall, at its sole cost and expense, maintain Statutory Workers' Compensation Insurance and Employer's Liability Insurance for any and all persons employed directly or indirectly by Auditor. The Statutory Workers' Compensation Insurance and Employer's Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident. In the alternative, Auditor may rely on a self-insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or the Auditor, if a program of self-insurance is provided, shall waive all rights of subrogation against the City and its officers, officials, employees, and volunteers for loss arising from work performed under this Agreement. Commercial General and Automobile Liability Insurance. 4.2.1 General requirements. Auditor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage for risks associated with the work contemplated by this Agreement. If a Commercial General Liability Insurance or an Automobile Liability form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non- owned automobiles. 4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 or GL 0002 (most recent editions) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 8 and 9. No endorsement shall be attached limiting the coverage. 4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy: a, The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 4 of 13 b, Any failure of Auditor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers. 4.3 4.4 Professional Liability Insurance. 4.3.1 General requirements, Auditor, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals' errors and omissions. Any deductible or self-insured retention shall not exceed $150,000 per claim. 4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form: The retroactive date of the policy must be shown and must be before the date of the Agreement. b! Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Auditor must provide extended reporting coverage for a minimum of five years after completion of the Agreement or the work. The City shall have the right to exercise, at the Auditor's sole cost and expense, any extended reporting provisions of the policy, if the Auditor cancels or does not renew the coverage. d, A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement. All Policies Requirements. 4.4.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. 4,4.2 Verification of coverage. Prior to beginning any work under this Agreement, Auditor shall furnish City with complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 5 of 13 4.4.3 4.4.4 4.4.5 4.4.6 4.4.7 Notice of Reduction in or Cancellation of Coverage. A certified endorsement shall be attached to all insurance obtained pursuant to this Agreement stating that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. In the event that any coverage required by this section is reduced, limited, cancelled, or materially affected in any other manner, Auditor shall provide written notice to City at Auditor's earliest possible opportunity and in no case later than ten (10) working days after Auditor is notified of the change in coverage. Additional insured; primary insurance. City and its officers, employees, agents, and volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Auditor, including the insured's general supervision of Auditor; products and completed operations of Auditor, as applicable; premises owned, occupied, or used by Auditor; and automobiles owned, leased, or used by the Auditor in the course of providing services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers. A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to the City and its officers, officials, employees and volunteers, and that no insurance or self-insurance maintained by the City shall be called upon to contribute to a loss under the coverage. Deductibles and Self-Insured Retentions. Auditor shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Auditor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Auditor procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them. Subcontractors. Auditor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Variation. The City may approve a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 6 of 13 such insurance are either not commercially available, or that the City's interests are otherwise fully protected. 4.5 Remedies. In addition to any other remedies City may have if Auditor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Auditor's breach: Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; Order Auditor to stop work under this Agreement or withhold any payment that becomes due to Auditor hereunder, or both stop work and withhold any payment, until Auditor demonstrates compliance with the requirements hereof; and/or · Terminate this Agreement. Section 5. INDEMNIFICATION AND AUDITOR'S RESPONSIBILITIES. Auditor shall indemnify, 'defend with counsel selected by the City, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Auditor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Auditor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the gross negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Auditor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Auditor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Auditor from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Auditor acknowledges and agrees to the provisions of this Section and that it is a material element of consideration. In the event that Auditor or any employee, agent, or subcontractor of Auditor providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Auditor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Auditor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 7 of 13 Section 6. 6.1 6.2 Section 7. 7.1 7.2 7.3 7.4 7.5 STATUS OF AUDITOR. Independent Contractor. At all times during the term of this Agreement, Auditor sh~ll b~ an independent contractor and shall not be an employee of City. City shall have the right to control Auditor only insofar as the results of Auditor's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Auditor accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Auditor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Auditor No Agent, Except as City may specify in writing, Auditor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Auditor shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever. LEGAL REQUIREMENTS. Governin_q Law. The laws of the State of California shall govern this Agreement. Compliance with Applicable Laws. Auditor and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Auditor and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program. Licenses and Permits, Auditor represents and warrants to City that Auditor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Auditor represents and warrants to City that Auditor and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Auditor and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City. Nondiscrimination and Equal Opportunitv. Auditor shall not discriminate, on the basis of a person's race, religion, color, national origin, age, physical or mental handicap or Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 8 of 13 Section 8. 8,1 8.2 8.3 8.4 disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Auditor under this Agreement. Auditor shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Auditor thereby. Auditor shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement. TERMINATION AND MODIFICATION. Termination. City may cancel this Agreement at any time and without cause upon written notification to Auditor. It is understood by the Parties that this Agreement is contingent upon the City adopting annual appropriations to fund this contract over its term. Auditor may cancel this Agreement upon 30 days' written notice to City and shall include in such notice the reasons for cancellation. In the event of termination, Auditor shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon AUditor delivering to City any or ali documents, manuals, computer software, computer files, and other materials provided to Auditor or prepared by or for Auditor or the City in connection with this Agreement. Extension. City may, in its sole and exclusive discretion, extend the end date of this 'Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Auditor understands and agrees that, if City grants such an extension, City shall have no obligation to provide Auditor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Auditor for any otherwise reimbursable expenses incurred during the extension period. Amendments. The parties may amend this Agreement only by a writing signed by all the parties. Assignment and Subcontracting. City and Auditor recognize and agree that this Agreement contemplates personal performance by Auditor and is based upon a determination of Auditor's unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Auditor. Auditor may not assign this Agreement or any interest therein without the prior written approval of Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 20O4 Page 9 of 13 8.5 8.6 Section 9. 9.1 9.2 9.3 the Contract Administrator. Auditor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator. Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Auditor shall survive the termination of this Agreement. Options upon Breach by Auditor. If Auditor materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, the following: 8.6.1 Immediately terminate the Agreement; 8.6.2 Retain the reports, documents, and any other work product prepared by Auditor pursuant to this Agreement; 8.6.3 Retain a different Auditor to complete the work described in Exhibits A and B not finished by Auditor; or 8.6.4 Charge Auditor the difference between the cost to complete the work described in Exhibits A and B that is unfinished at the time of breach and the amount that City Would have paid Auditor pursuant to Section 2 if Auditor had completed the work. KEEPING AND STATUS OF RECORDS. Records Created as Part of Auditor's Performance. All reports, data, manuals, books, charts, studies, surveys, photographs, memoranda, records, files, or any other documents or materials, in electronic or any other form, that Auditor prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Auditor hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Auditor agree that, until final approval by City, all data, reports, and other documents are confidential and will not be released to third parties without prior written consent of both parties unless required by law. Auditor's Books and Records. Auditor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Auditor to this Agreement. Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Auditor to maintain shall be made available for inspection, audit, Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 10 of 13 Section 10 10.1 10.2 10.3 10.4 10.5 10.6 10.7 and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement. MISCELLANEOUS PROVISIONS. Attorneys' Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose. Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County San Mateo or in the United States District Court for the First District of California. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties. Use of Recycled Products. Auditor shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper. Conflict of Interest. Auditor may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Auditor in a "conflict of interest," as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq. Auditor shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 11 of 13 10.8 10.9 10.10 10.11 10.12 Auditor hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Auditor was an employee, agent, appointee, or official of the City in the previous twelve months, Auditor warrants that it did not participate in any manner in the forming of this Agreement. Auditor understands that, if this Agreement is made in violation of Government Code §1090 et. seq., the entire Agreement is void and Auditor will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Auditor will be required to reimburse the City for any sums paid to the Auditor. Auditor understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California. Solicitation. Auditor agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials. Contract Administration. This Agreement shall be administered by the City's Director of Finance ("Contract Administrator"). All correspondence shall be directed to or through the Contract Administrator or his or her designee. Notices. Any written notice to Auditor shall be sent to: Mr. Cory A. Biggs, Principal. Maze and Associates 1931 San Miguel Drive, Suite 100 Walnut Creek, CA 94596 Any written notice to City shall be sent to: City Clerk City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Integration. This Agreement, including the scope of services and fees attached hereto and incorporated herein as Exhibits A and B, represents the entire and integrated agreement between City and Auditor and supersedes all prior negotiations, representations, or agreements, either written or oral. Counterparts, This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 12 of 13 The Parties have executed this Agreement as of the Effective Date. CITY OF SOUTH SAN FRANCISCO MAZE AND ASSOCIATES ACCOUNTANCY CORPORATION Michael A. Wilson, City Manager Cory A. Biggs, Principal Attest: Sylvia Payne, City Clerk Approved as to Form: Steven T. Mattas, City Attorney 207532_1 Auditing Services Agreement between City of South San Francisco and Maze and Associates April 28, 2004 Page 13 of 13 EXHIBIT A SCOPE OF SERVICES AND FEES The Auditor will prepare and audit the basi~: financial statements of the City of South San Francisco and blended component units as of June 30, 2004, 2005, 2006, 2007 and 2008 and for the years then ended. The audit will be conducted in accordance with generally accepted auditing standards in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act as Amended in 1996; and the provision of OMB Circular A-133, and will include tests of accounting records, a determination of major programs in accordance with Circular A-133 and other procedures the Auditor considers necessary to enable it to express such an opinion and to render the required reports. If the opinion on the basic financial statements or the Single Audit compliance opinion is other than unqualified, the Auditor will fully discuss the reasons with the City in advance. The objective of the audit is to enable the Auditor to express an opinion on whether the basic financial statements are fairly presented in all material respects in conformity with generally accepted accounting principals in the United States of America and to report on the fairness of accompanying supplemental information when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on: Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. In addition, the Auditor will perform the following: The Auditor will prepare and audit the financial statements of the City of South San Francisco Redevelopment Agency and test the Agency's compliance with the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the California Office of the State Controller. · The Auditor will prepare and audit the financial statements of the Sewer Rental Fund The Auditor will prepare and audit the financial statements of the City's Transportation Development Act, Article 3 programs. The Auditor will also test the City's compliance with the applicable provisions of the Transportation Development Act and the allocation instructions and applicable resolutions, rules and regulations of the Metropolitan Transportation Commission as required by Title 21 of the California Code of Regulations, Section 6666. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 1 of 17 The Auditor will audit the City's Measure A fund programs for compliance with the Agreement for Distribution of Measure A Funds and issue a report as required by those regulations. The Auditor will apply Agreed Upon Procedures to the City's GANN Limit and issue a report thereon as described in the Article XIIIB Appropriations Limit Uniform Guidelines issued by the League of California Cities. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 2 of 17 AUDIT APPROACH, SCOPE AND WORKPLAN (Continued) We will start our work as soon as you appoint us your auditors, with an entrance conference in early spring. We will review your prior auditors work papers and request copies of documents needed for the audit as part of our preparation of the detail audit plan we will present on or before March 15. We will also prepare our Interim Checklist, requesting items we need from you and items not provided by your prior auditor. Our final audit will commence on October 4, when we will collect the balance sheet reconciliations and : other items on our Annual Closing Checklist from you and bring it back to our office. We will review draft financial statements and reports with you on October 18, when we start our work in your offices. We will present you with final drafts of our reports on October 29, the last day of our audit field-work. Our proposed Time Line follows: May: Final Award, execute contract May- June 30 (Interim work can be performed anytime from May to June): Entrance conference Complete interim audit tests Review GFOA comments, if available Update financial statements formats and disclosures Prepare Annual Closing Checklist Prepare Accounting Issues Memorandum Prepare draft recommendations Interim exit conference July: Second interim--complete GASB 34 acdounts and report conversion August - October 4: City closes books, completes preparation of data on Annual Closing Checklist October 4-18: We review and reconcile balance sheet reconciliations and Annual Closing Checklist information We perform Parmer Level Analytical Review of financial statements October 18 -29: Final phase entrance conference, start of year-end field-work in the City's office Discuss results of Analytical Review Complete Fund-level year-end audit tests and prepare draft Enl~ity-wide financial statements Finalize all draft financial statements, Memo on Examination and recommendations Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit April 28, 2004 Page $ of 17 AUDIT APPROACH, SCOPE A_N~ WORKPLAN (Continued) November 1-12: City reviews draft financial statements m~d recommendations City drafts Management's Discussion & Analysis for City, and RDA We complete "cold" review of entire CAFR and other reports November 14; We receive comments and changes from City and meet to agree on final amounts and wording We issue final reports m~d recommendations for ail entities We perform limited procedures on M D & A November 29 Final CAFR delivered to the City for printing Ail other final reports and recommendations issued This timeline is more ag~essive than that outlined in your Request for Proposal, but it can be achieved if the City can meet its 'responsibilities timely, especially with respect to the drafting of the Management's Discussion & Analysis. Our audit effort is desired to assist you in achieving these goals. Our experience is that if parts of the work must be delayed, the Single Audit Act work is the most logical portion to delay because the deadline for the filing of these reports is March 31. Auditing Services Agreement between City of South San, rabcis,..o and Maze and Associates-Exhibit/~, April 28, 2004 Page 4 of 17 CITY OF SOUTH SAN FRANCISCO Proposed Engagement Segments and Budget Partners Review I Alternate Audit Activities Planning & budget/Confirm/Checklists 2.00 Minutes-resolutions Report 6.00 3,00 Supervision/review 12.00 Conferences & meetings 2.00 Management letter 1.00 Accounting Issues Memo 1.00 Analytical review/Memo on Exam 4.00 Adjustments Internal Control Evaluation Information Systems Review Cash & Investments Reven u e/Receiv a b les Interfunds Notes/loans receivables Capital Assets Other Assets Current liabilities Payroll/Accrued liabilities Other liabilities and miscellaneous Long-term debt Fund balance & net assets Self insurance/claims Conference Center Integration GASB 34 Entity Wide Statements: Capital assets Consolidation/reconciliation Entity-wide statements Internal service funds Management's discussion & analysis Revenue allocation Subtotal - Comprehensive Annual Financial Report 28.00 3.00 Budgeted Hours Supervisor 12.00 8.00 24.00 60.O0 6.00 2.00 3.00 8.00 1.00 3,00 4.00 1.00 8.00 Associates 16,00 2.00 2.00 16.00 40.00 24.0O 10.00 12.00 24.00 4.00 24.00 24.OO 12.00 40.00 6.00 12.00 2.00 2.00 4.00 1.00, ]49.00 2.00 6.00 4.00 4.00 2.00 3.00 ~-8: .00 Admin. 4.00 1.00 5.00 Total 14.00 8.00 53.00 72.00 8.00 6.00 6.00 12.00 1.00 19.00 4.00 40.00 24.00 10.00 12.00 24.00 4.00 24.00 24.00 12.00 40.00 7.00 12.00 8.00 2.00 8.00 6.00 4.00 6.00 4.00 474,00 Auditing Se~ices.Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 5 of 17 CITY OF SOUTH SAN FRANCISCO Proposed Engagement Segments and Budget Redevelopment Agency Single Audit (1 Program) Sewer Rental Fund Measure A Sales Tax Fund Transportation Development Act Program GANN Limt Report State Transportation .Improvement Program GRAND TOTAL 4.00 2.00 2.00 1.00 1.00 0.50 1.00 39.50 2.00 5.00 12.00 16.00 6.00 3.00 3.00 1.00 3.00 193.00 40.00 40.00 19.00 8.50 8.50 4.5O 8.50 418.00 4.00 2.00 1.00 1.00 1.00 1.00 1.00 16.00 62.00 60.00 28.00 I3.50 13.50 7.00 13.50 671.50 OPTIONAL SERVICES: Preparation of the ComprehensiveAnnual Financial Report Proforma Input Data Assemble statistical section Assemble Introductory section Page number and prepare for printer 2.00 4.00 32,00 24.00 I2.00 8,00 4.00 g.00 0.00 0.00 50.00 24.00 8.00 4,00 8.00 GIL&ND TOTAL 2.00 0.00 4.00 56.00 32.00 94.00 Auditing Semites Agreement between City of South San Francisco and Maze and Assodates:-Exhibit A April 28, 2004 Page 6 of I7 FEES/COMPENSATION Total Cost of 2004, 2005, 2006, 2007, and 2008 Audits Our Total All-inclusive Maximum Price for our engagements are £rrm fixed fees; as detailed on the £ollowing pages. To make your job easier, GASB 34 audit costs have been shown separately. The cost of the audit has been reduced each year to reflect the City's input of year-end accounting data using our financial statement formats and Excel schedules. Price and Billings Our fees are fu-m fixed prices. In determining our fees, we understand that the City's records will be in condition to be audited; that is, transactions will be properly recorded in the general ledger and subsidiary records, these accounting records and the original source documents will be readily available to use, we will be furnished with copies of bank reconciliations and other reconciliations and analyses prepared by the City and City personnel will be reasonably available to explain procedures, prepare audit correspondence and obtain files and records. We do not post separate rate structures for municipal audit work. We view this work as being every bit as important and valuable as the work we perform for other clients and we put our best people on it. As in the past, any consulting work you request will be performed at the same rates as our audit work. We will bill monthly, based on actual costs incurred. Cost Rationale We are quite confident we will complete the work in the time budgeted. But we thought you should know the rationale we used to arrive at our budget. You should know that we finish what we start, regardless of the accuracy of our budgets. Since municiPal auditing is our principal business, we have no need to assign staff and add hours simply because our people are available and need experience, as is the case with most fn'rns. At the same time, we do not need to discount our work, since w...e do not need to offset the inefficiencies of inexperienced staff people. And we keep the City's "hidden costs"--time spent with auditorsMto a minimum. We do more work in less time because our people are much better trained and we use a much more efficient audit approach. All our people receive two or three times as much training as their contemporaries in other fa-ms. This training is very intense, very inter-active, very practical and is 100% municipal audit related. Since nearly all our work is municipal audit, our people average 1,500 hours of municipal experience annually as they quickly gain experience to match their training, which makes them much' more efficient at municipal auditing than their contemporaries. Not only do they understand your problems, they have seen how your peers are solving them. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 7 of 17 FEES/CoM2PENSATION (Continued) Since so much of our practice is fixed-price municipal work, we have been under constant pressure for years to increase our efficiency without simply shifting work to clients. We have responded with some real innovations. Performing our Analytical Review of f'mancial statements before we begin our year-end audit forces the Partners to get actively involved early and give Directors, Senior Associates and Associates the direction they need. Computerizing the entire f'mancial statement and trial balance preparation cut out a huge number of hours while it increased accuracy, as did the mini-networks of computers and printers we bring to your office. Our Closing Checklist forces us and our clients to plan the year-end and identify closing problems at interim, months in advance. And our heavy emphasis on accomplishing major segments of the work at interim brings audit problems to light much earlier and takes much of the pressure off your staff at year end. Basically, we have disproved the assumption that the quality of the audit is a direct function of the number of hours expended. Instead we have proved there are much more efficient ways to audit and we have used much of those time savings to increase the thoroughness and depth of the audit. Basic Audit Services. Our price includes all the basic audit work and reports, statements and other deliverables specified in your request for proposal. Auditing Services Agreement between '" City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 8 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDITS OF THE FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30: Comprehensive Annual Financial Report: Partners Hourly Hours Rates 2004 31.00 $295 $9,145 Supervisory staff 149.00 100 14,900 Staff 289.00 65 18,785 Other: Administrative Staff 5.00 60 300 T'otal Comprehensive Annual Financial Report 474.00 43,130 Additional Reports: Redevelopment Agency Single Audit (1 Pro,am) Sewer Rental Fund Measure A Sales Tax Fund GANN Limt Report State Transportation Improvement Program Out-of-pocket expenses (1) 62.00 5,810 60.00 4,910 28.00 2,485 13.50 1,208 7.00 600 13.50 1,208 Total all-inclusive maximum price: 658.00 $59,350 Optional Services: Preparation of the Comprehensive Annual Financial Report Printing costs for 50 copies -third party vendor 94.00 $6,550 900 Total Optional Services $7,450 NOTES: (1) Out-of-pocket expenses are included in our standard hourly rate. (2) Our policy is to attempt to keep our clients fees constant after inflation. Therefore, the fees for years subsequent to 2004 have been adjusted for the 2003 CPI increase of 3.1% for the Se.rvices Sector of the U.S. Department of Labor, Bureau of Labor Statistics for the San Francisco-Oakland Area. (3) The City has indicated that the retroactive restatement for infrastructure will take place in fiscal 2005-2006. Fees for that year have been increased for 40 hours of staff time and fees of $2,800. Subsequent years have been reduced as the work is non recurring. · (4) Printing costs are estimated based on a quote from our third party printer. Actual costs will be billed directly to the City by the third party vendor. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 9 of 17 Totals 2005 2006 2007 2008 · $9,42 8 $9,720 $10,021 $10,332 15,362 15,838 16,329 16,835 19,367 22,767 20,586 21,224 309 319 329 339 44,466 48,644 47,265 48,730 5,990 6,176 6,368 6,565 5,063 5,220 5,382 5,548 2,562 2,641 2,723 2,807 1,245 1,284 1,324 1,365 619 638 658 678 1,245 1,284 1,324 1,365 $61,190 $65,887 $65,044 $67,058 $6,753 $6,962 $7,177 $7,400 928 957 987 1,018 $7,681 $7,919 $8,164 $8,418 Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 10 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FEE ALLOCATIONS Total Price Allocations of Common Costs 2004 2005 2006 2007 2008 Federal Aviation Grant Special Re'~enue Fund $316 $325 $:156 $346 $357 Community Development Block Grant 385 397 435 422 435 Measure A Sales Tax Special Revenue Fund 465 479 5;24 509 525 Sewer Rental Enterprise Fund 4,727 4,874 5,332 5,180 5,341 All other portions of.the General City Audit 37,237 38,391 41,998 40,807 42,072 Total CAFR costs $43,130 $44,466 $48,644 $47,265 $48,730 Note: As provided for in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, Costs have been prorated based on 2002 expenditures/expenses. These common costs are in addition to costs listed on the prior page for separately issued reports Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 11 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE Redevelopment Agency Hourly Totals Hours Rates 2004 2005 2006 2007 2008 Partners 6.00 $295 $1,770 $1,825 $1,882 $1,940 $2,000 Supervisory staff .. Staff 12.00 100 1,200 1,237 1,275 40.00 65 2,600 . 2,681 2,764 1,315 2,850 1,356 2,938 Other: Administrative Staff 4.00 60 240 247 255 263 271 Total for this Report 62.00 $5,810 $5,990 $6,176 $6,368 $6,565 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE Single Audit (1 Program) Hourly Totals Hours Rates 2004 '2.005 2006' 2007 2008 Partners 2.00 $295 $590 $608 $627 $646 $666 Supervisory staff 16.00 100 1,600 1,650 1,701 1,754 1,808 Staff .... 40.00 65 2,600 2,681 2,764 2,850 2,938 Other: Administrative Staff 2.00 60 120 124 128 132 I36 Total price for this Report 60.00 $4,910 $5,063 $5,220 $5,382 $5,548 _ Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 12 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE Sewer Rental Fund Hourly Totals Hours Rates 2004 2005 2006 2007 2008 Parmers 2.00 $295 $590 $608 $627 $646 $666 Supervisory staff 6.00 100 600 619 638 658 678 Staff 19.00 65 1,235 1,273 1,312 1,353 1,395 Other: Administrative Staff 1.00 60 60 62 64 66 68 Total price for this Report 28.00 $2,485 $2,562 $2,641 $2,723 $2,807 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE Transportation Development Act Program Hourly Totals Hours Rates 2004 2005 2006 2007 2OO8 Partners 1.00 $295 $295 $304 $313 $323 $333 .Supervisory staff 3.00 100 300 309 319 329 339 Staff 8.50 65 553 570 588 606 625 Other: Administrative Staff 1.00 60 60 62 64 66 68 Total for this Report 13.50 $1,208 $1,245 $1,284 $1,324 $1,365 Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 13 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE Measure A Sales Tax Fund Hourly Totals Hours Rates 2004 2005 2006 2007 Partners 1.00 $295 $295 $304 $313 $323 Supervisory staff Staff 2008 $333 Other: Administrative Staff 3.00 100 300 309 319 329 339 , 8.50 65 553 570 588 606 625 1.00 60 60 62 64 66 68 Total for this Report 13.50 gq,208 $1,245 $1',284 $1,324 $1,365 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE GANN Limt Report Hourly Totals Hours Rates 2004 2005 2006 2007 2008 Partners 0.50 $295 $148 $152 $157 $162 $167 Supervisory staff 1.00 100 100 103 106 109 321 Staff 4.50 65 293 302 311 112 331 Other: Administrative Staff 1.00 60 60 62 64 66 68 $658 Total for this Report 7.00 $600 $619 $638. $678 Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 14 of 17 CITY OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE State Transportation Improvement Pro,am Hourly Totals Hours Rates 2004 2005 2006 2007 2008 Parmers 1.00 $295 $295 $304 $313 $323 $333 Supervisory staff 3.00 1 O0 300 309 319 329 339 Staff 8.50 65 553 570 588 606 625 1.00 60 60 62 64 66 68 13.50 $1,208 $1,245 $1,284 $1,324 Other: Administrative Staff Total for this Report $1.365 CITY' OF SOUTH SAN FRANCISCO SCHEDULE OF PROFESSIONAL FEES AND EXPENSES SUPPORTING SCHEDULE FOR THE ComprehensiveAnnual Financial Report Hourly Totals Hours Rates 2004 2005 2006 2007 2008 Partners 2.00 $295 $590 $608 $627 $646 $666 Supervisory staff 4.00 100 400 412 425 438 452 staff 56.00 65 3,640 3,753 3,869 Other: Administrative Staff 32.00 60 1,920 1,980 2,041 3,989 2, I04 $7,'177 Total for this Report 94.00 .$6,550 $6,753 $6,962 4,113 2,169 $7,400 Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 15 of 17 ADDITIONAL SERVICES Rule 15o 2-12 ¢ Effective for debt issued after July 3, 1995, the Securities and Exchange Commission adopted amendmehts to its Rule 15c2-12 which require issuers of new municipal debt to provide certain annual financial information to designated information repositories. To ensure proper legal compliance you may need to consult with your bond counsel to determine your specific disclosures requirements. However, unless the City commits to some unusual disclosures in its bond indentures, the majority of the required information should already be disclosed in the statistical section of your CAFR. Any additional required disclosure could easily be added to your financial statements. If you issue any new debt we will review your required disclosure with you and your bond counsel and help you determine the appropriate means of disclosing this information. This minor additional disclosure in your CAFR can save you considerable amounts of money by eliminating the need foe a separate disclosure document and the attendant costs. Other Services We have performed a 'variety of additional services for our clients, although our services have always been limited those closely related to auditing and accounting. We normally use auditors or accountants to perform these services, and have never employed or contracted with consultants. The General Accounting Office has now significantly narrowed the scope of non-audit services that may be offered, but we have been only marginally impacted by this action because we have never depended on consulting services fbr our business. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 16 of 17 ADDITIONAL DATA AND NO FEE SERVICES Study Session With City Council We have a pro,am of Study Sessions for City Councils, at which we can provide far more detail about the content of the Comprehensive Annual Financial Report. We also explain, in depth 'what a financial statement audit entails and answer Council-members' questions in detail. There., is no cost for this program. We have selected the client cities below as references because their population exceeds 50,000, they are at least as large and complex as the City, or the people assigned to your audit have played important parts in these engagements. However, we encourage you to call any of our clients for a reference. Other Support Our price includes all the basic audit work and reports, statements and other deliverables specified in your request for proposal. Our price also includes the items below at no additional cost: I) 2) 4) 5) 6) 7) 8) .9.) 10) 11) 12) year-round.support and telephone consultation on pertinent issues affecting your City, copies of our .journal entries and our leadsheets used to support the,, amounts in your financial statements, active Partner involvement in your work every year at both interim and final, Color Graphs or Color Coded statistical information camera-ready for' inclusion in your financial statements, Special Emphasis Areas, in each year's audit, selected by you as part of the annual audit, our typed Interim Audit Checklist, our typed Annual Closing Checklist, our t3,ped interim Accounting Issues Memorandum, preliminary draft financial statements at interim, participation, on request, in panels evaluating applicants for Finance Department positions, answers to most municipal payroll tax questions, reference library of California CAFR award-winners. Client Alerts Our heavy emphasis on early identification of audit problems as part of our interim audits has lead us to issue Client Alerts to all our clients. We have included an example of a past letter on the following page. Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit A April 28, 2004 Page 17 of 17 Mr. Cory A. Biggs, Principal Maze & Associates 1931 San Miguel Drive, Suite 200 Walnut Creek, CA 94596 EXHIBIT B October 16, 2003 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services The City of South San Francisco invites Certified Public Accounting finns to submit proposals for a five-year contract to perform annual financial statement audits and Single Audits of the City and it's blended component units starting with the fiscal year ending June 30, 2004. Four copies of proposals in accordance with the requirements set forth in this request should be submitted to: BY MAIL: David Woo Assistant Director of Finance City of South San Frmacisco P.O. Box 711 South San Francisco, CA 94083 BY DELIVERY SERVICE: David Woo Assistant Director of Finance City of South San Francisco 400 Grand Avenue South San Francisco, CA 94080 Due date for receipt of these proposals is 5:00 PM, Wednesday, November 26, 2003. Questions regarding this request may be directed to David Woo at (650) 877-8506 or at david.woo~ssf, net. Sincerely, Jim Steele Director of Finance Auditing Services Agreement between City of South San Francisco and Maze and Associates-Exhibit B April 28, 2004 Page 1 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 2 of 8 (I) Background of the Client The City of South San Francisco is a general law city under the City Council/City Manager form of government. It is a full-service City with its own police, fire, public works, recreation, maintenance, economic development, and library departments. There is an elected City Treasurer. The City does: not bill utilities. The County Tax Collector bills property owners for City-operated utilities, consisting of sewer and storm drainage, and apportions the revenue to the City. Garbage collection and water service are provided by franchisees or third-parties. The City, with a population of 60,577, operates with 509 budgeted positions, with a general fund operating budget of $52.2 million and another $50 million in ongoing capital projects. The City's active Redevelopment Agency, with its four project areas and a housing fund, and the City's Capital Improvements Financing Authority are blended component units; a separate report is required only on the former. The City's Conference Center Authority is a discrete component unit with about $2.7 million in revenues and a separate accounting system. Another CPA firm audits it, under a separate contract that is not part of this RFP. The City's auditor will need to coordinate reporting with the Conference Center's auditor. The City desires to maintain their financial reporting awards from both the Govermnent Finance Officer Association and the California Society of Municipal Finance Officers. The City implemented GASB 34 and associated pronouncements during the fiscal year ending June 30, 200:3. The City will retroactively implement their historical costs of infrastructure and has elected to depreciate infrastructure additions. The City's financial reporting team consists of two accountants, two financial analysts, and the Assistant Finance Director. They together have compiled the CAFR for the past two years. The Assistant Finance Director' has seven years experience in governmental reporting with the City and County and the accountants and analysts have three to ten years experience in the City between them. The City uses a legacy accounting system that is eleven years old. The information technology department of the City of Redwood City manages the system for South San Francisco on a contract basis. The system has moderate drilldown capabilities from the general ledger into journal vouchers, accounts payable, purchase orders, and accounts receivable entries. The system prints the monthly and year-end reports needed for the audit. (II) Contract Term The contract will be for five years covering the fiscal years ending June 30, 2004 through June 30, 2008. The City reserves an option to extend the term of the Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 2 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 3 of 8 contract for ant additional year coveting the fiscal year ending June 30, 2009 if both the City and audit firm agree. The City, upon thirty days notice, may terminate the contract at any time if the audit firm fails to provide reports when due without reasonable cause and without prior approval of the City or if the City determines that audit services are unsatisfactory. (III) Scope of Annual Services Required General City Audit for CAFR. Examine the City's basic financial statements and express an opinion on such statements. Apply the necessary limited procedures on Management Discussion and Analysis and Required Supplemental Information. The financials include approximately 80 funds, including six major governmental funds aside from the general fund, consisting primarily of the Redevelopment Agency. There are three enterprise funds, all considered major funds. The examination shall be done in accordance with generally accepted auditing standards and Government Auditing Standards. The client would most likely compile and print the CAFR themselves, however, the client would like to reserve the option, at the onset of each year's engagement, of having the auditor do the compilation; therefore the client requests that proposals reflect optional pricing for this every year. The City's most recent CAFR, pre-GASB 34, is enclosed. Reports required. Client desires to issue CAFR by December 15. The client will compile and print the report. Single Audit. Client will provide preliminary schedule of federal award expenditures. Auditor shall compile and print the entire Single Audit report and the Federal clearinghouse data collection form. The most recent Single Audit report is enclosed. Reports required. Due date for ten bounded Single Audit report copies and one unbounded copy is March 23. The data collection form is due at the same time. The report shall consist of all required auditor reports including: 1. Independent Auditor's Report on Schedule of Expenditures of Federal Awards 2. Schedule of Expenditures of Federal Awards and accompanying notes. 3. Independent Auditor's Report on Compliance and on Internal Control 4. Independent Auditor's Report on Compliance with Requirements in Accordance with OMB Circular A-133 5. Schedule of Findings and Questioned Costs Auditing Services Agreement between City of South San Francisco and Maze and Associates-Exhibit B April 28, 2004 Page 3 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 4 of 8 Redevelopment A~enc¥. This blended component unit consists of capital project and debt service funds for the four project areas and the housing fund. The supplemental financial statement presentation 'within this report will differ from the basic financial statement presentation in order to meet State Controller reporting requirements. Most recent report is enclosed. Reports required and due date. Auditor shall render an opinion, compile, and print a report consisting of the following by December 15. Ten bounded and one unbounded copy needed: 1. Independent Auditors Report expressing opinion on financial position 2. Component unit. financial statements and supplemental information 3. Independent Auditor's Report on Internal Control Structure 4. Independent Auditor's Report using Guidelines for Compliance Audits of California Redevelopment Agencies Measure A Sales Tax Fund. There is a sales tax increment used for transportation, reported as a special revenue fund in the CAFR, which needs to be audited and reported separately to San Mate() County. Can be done as part of General City Audit. Auditor shall compile and print the entire report and mail to appropriate agencies. Ten bound copies and one unbound copy are needed by December 15. Sewer Rental Fund. This is the predominant enterprise fund in the CAFR that needs to be audited and reported separately for debt issuance requirements. Can be done as part of General City Audit. Auditor shall compile and print the entire report. Ten bound copies and one unbound copy are needed by December 15. Metropolitan Transportation Commission Transportation Development Act (MTC-TDA). Render an opinion on revenue and expenditure statement of TDA Article 3 grant activities. Auditor shall compile and print five bound and one unbound copy of the entire report by December 15. Auditor shall mail report to appropriate agencies. Gann Appropriations Limit. Perform agreed-upon procedures on the Gann Appropriations Limit computation done by the client. Auditor shall produce five copies reporting their results by December 15. Mana,eement Letter. Report on internal control material, weaknesses and provide findings and recommendations based on a consideration of the City's internal control structure done in conjunction with the audit of the Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 4 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 5 of 8 City's :financial statements, as required by the Statement of Auditing Standards. The report is due March 23. Independent Auditor's Report on Compliance with State Transportation Improwsment Program. During the length of the audit contract, the client, on an ad-hoc basis, will request an examination of the client's assertions stated in their Final Project Expenditure report to the state Department of Transportation. The billable rates for this work should be at the same hourly rates stated for basic services provided under this contract. Provide consultation on accounting and compliance issues as may be required throughout the contract period. Auditor' shall attend City meetings to discuss the audit and management letter, ii! required. Additional services beyond these must be authorized in advance. The firm must submit to the City, in writing and in advance, the reasons for the additional services and an estimate of the fees prior to beginning the work. Charges for additional audit-related services must be at the same hourly rates as for basic services provided under this contract. (IV) Auditor/Client Responsibilities In addition to the responsibilities mentioned above, other auditor and client responsibilities are as follows: a Client can prepare confirmations, using template provided by auditors b Auditor' shall provide "prepared-by-client" request list at least one month before anticipated fieldwork start dates. c Client keeps the ledger open until all audit adjustments are booked. d Client does not prepare formal working trial balances for the auditors to help them audit the transition from the general ledger to the CAFR. Client uses Excel to compile the fund-level and entity-wide statements directly from trial balances produced from the general ledger. Entity-wide entries are not 'booked on the general ledger. Printed trial balances consist of: i. Balance sheet by fund ii. Revenues by fund iii. Expenditures by various levels of the chart of accbunt hierarchy e Client may purchase a new Human Resource, Payroll and Accounting system during the latter part of this audit contract. (V) Engagement Timin~ Audit proposals should describe their audit approach, work plan, and timing based on the report due dates described above. Include depth of Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 5 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 6 of 8 work, staffmg and time estimates. Indicate assumptions regarding work to be performed by City staff including those mentioned i.n Section (IV) - Auditor/Client Responsibilities. The client has the existing year-end close schedule: i. Accounts payable and accounts receivable closed by August 15 ii. Journal entries and general ledger ready for substantive testing by October 1. The client is open to proposals to change this schedule slightly, however the auditor needs to propose ways for us to be able to accomplish such a change. (VI) Personnel Personnel assigned to the job must have sufficient government experience to perform the required services. Responses should guarantee, to the extent possible, the degree of continuity of personnel. Resumes of assi .gned and alternate principals and staff should be included in this proposal. The City reserves the right to request replacement of any me:mber of the audit team prior to or during the course of the audit. The City also requests advanced notification of changes in the audit team by the firm, with the firm providing qualifications if requested. (VII) Fees All fees shall be proposed on a not-to-exceed basis and shall include all costs for clerical, travel, per diems, report preparation and out-of-pocket expenses. Attendance at all meetings of the City relating to matters concerning the audit and ongoing consultation on accounting and compliance issues shall be considered part of the proposal amount. Indicate assumptions regarding work to be performed by City staff including those mentioned in Section (IV) - Auditor/Client Responsibilities. Proposals should assume no installation of a new Human Resource/Payroll and Accounting system. For each engagement year, please indicate the proposed hours and fee per staff classification in each of the following areas: General City Audit (please breakdown fee and hours into these areas for the City's internal billing purposes): 1. Federal Aviation Grant Special Revenue Fund Audit 2. Community Development Block Grant Special Revenue Fund Audit 3. Measure A Sales Tax Special Revenue Fund Audit Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 6 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals .of Audit Services October 16, 2003 Page 7 of 8 ii. iii. iv. V. .4. Sewer Rental Enterprise Fund Audit 5. All other portions of General City Audit Single Audit Redevelopment Agency Audit MTC-TDA Audit Gann Appropriations Limit For example, show how many billable hours and dollars principals, managers, in-charges, and field staff will spend in each of these areas, producing the reports listed in Section III Scope of Annual Services Required. As mentioned previously, please indicate separately the annual cost for the option of the auditor compiling the CAFR. Format and Content of Proposal 1. Name and principal address of finn. . Location of the local office(s) from which the audit team will be based and the nu:mber of partners, managers, supervisors, seniors, and other professional staff employed at those office(s). o Describe the range and percentage of activities performed by the local office, such as audit, accounting, tax or consulting services. , Describe the local office's relevant government audit, consulting, and accounting experience. Provide five recent references including telephone numbers and contact persons. Reference listing should designate which members of the proposed audit team worked on that audit. . Describe the firm's experience in assisting clients to implement GASB 34 and related pronouncements. o Give an example of one of the most helpful management letter comments or audit findings that the firm has made recently to a govermnent client. It should involve pointing out a material weakness that the client was not aware of and which you wanted them to correct. Describe how the firm presented the recommendation to the client, and how it was received by them. o Describe the composition and relevant experience and education of the audit team mc~nbers, as indicated in Section (VI) - Personnel. Auditing Services Agreernent between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 7 of 8 CITY OF SOUTH SAN FRANCISCO, CALIFORNIA Request for Proposals of Audit Services October 16, 2003 Page 8 of 8 . Describe the firm's commitment and ability to provide the services requested in Section (III)- Scope of Annual Services Required. Provide audit approach, work plan, and timing to accomplish this as indicated in Section (V)- Engagement Timing. 9. Provide fee data as indicated in Section (VII) - Fees. 10. Finns should be willing to operate under the terms described in the enclosed Agreement for Services template including insurance requirements. 11. Submit four proposal copies as mentioned in the cover page. of this request. Selection Process Finance Department staff will review all responses received. If necessary, finalists will be invited for oral interviews. Anticipate award of the contract by early 2004. Enclosures o 2. 3. 4. 5. 6. Organization chart of Finance Department. June 30, 2002 Comprehensive Annual Financial Report (pre-GASB 34) June 30, 2002 Redevelopment Agency Report June 30, 2002 Single Audit Report June 30, 2002 Management Letter Agreement for Services template Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit B April 28, 2004 Page 8 of 8 EXHIBIT C INSURANCE CERTIFICATES PRODUCER KOSICH & CALLAHAN INSUPJ~NCE SERViC.=S 3435 MT. DIABLO BLVD, STE. 300 LAFAYETTE CA 94549 PHONE: 925-284.3911 FAX: 925-284-39!9 Agency Lic#: 0802652 INSURED MAZE & AssoCIATES.. 1931 SAN MIGUF. L DPJVE ~.~00 WALNUT CREEK CA 94596 .. .. L,~F-[~iIFIL,,,/4,1 F- ur' LI/&DILi If IEf,,~Ut""-~&I~L,,I"- I MAR1804 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURER A:Republic Indemnity Co. of California INSURER E: INSURER C: INSURER D: INSURER E: .. · COVERAGES THEPOLICIES OF INSURANCE LISTEP BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLIOY PER!OD INDICATED. NO'PA/FHSTANDING ANYREQUIREMENT, TERM OR CONC,1TION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE. MAY BE ISSUED OR MAYPERTAIN, T~E INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALLTHE TERMS, EXCLUSIONS AND COND,'T1ONS OF SUCH POLICIES. AGGREGATE LIMITS SHOW~ MAY HAVE BEEN REDUCED BY PAID CLAIMS. NAJC # J iNs~, TYPE OF INSURANCE L'mi [ GENERAL LIABILITY ! I COMMERCIAL GENERAL LIABILITY j CLAIMS MADE I'--'"'] CSCUR GEN'L ACGREGATE LIMIT APPLIES PF-R; 'PO_iCY t AUT,_.__OMOBILE LIAS,LITY __J ANY AbTO ALL OWNED AUTOS .... SCHEDULED AtcTOS ·-' HIRED AUTOS NON-OWNED AUTOS GARAGE LIABILITY ANY ALrrO EXCI, ESS I UMBERELLA LIABILITY .___j OCCUR ~ CLAIMS MADE DEDUCTIBLE R.ETEN"RON S WORK~-RS COMPENSATION AND EMPLOYERS' LIABILITY A ANY PR DPRL:"T OR/P ARTNE RJEXE'EUTIVE OFF]CERJMeMBEE EXCLUDED? If yes, deserve under SFEClAL PROVISIONS below OTHER: POLICY NUMBER POLICY EFFECTIVE , DATE IMNI/DDfY"¢ POUCY EXPIRATION DATE tMMfDD/YY) 15076603 JAN 1 04 JAN 1 05 EACH OCCURRENCE DAMAGE TO REi'C~'ED MEl~ -:~X.P (Any One Person) PERSONAL & ADV INJURY GENERAL AGGREGA~ PRODUCTS-COMP/O~ AGG, COMBINED SINGLE LIMIT (Ea ac=icmnt) BODILY INJURY ~er person) BODILY INJURY (Per accident) · PROPERTY DAMAGE AUTO ONLY- EA ACCIDENT l OTHER THAN EA ACC AUTO ONLY: AGG EACH OCCU~RRENDE AGGREGATE TORY LIMITS =L EACH AC.C. IDENT iS E.L DISEASE-EA EMPLOYEE iS , E.L. DISEASE-POLICY LIIvlFF 1,000,000 1,000,000: 1,000,000 DESCRIPTION OF OPERATIONSILOCATIONNEHICLESIEXCLUSIONS ADDED ENDORSEMENT/SPECIAL PROVISIONS PROOF OF INSURANCE FAX 650=829-6614 CERTIFICATE HOLDER J j ADDITIONAL INSURED; INSURER LETTER: CITY OF SOUTH SAN FRANCISCO ASSISTANT DIRECTOR OF FINANCE P.O. BOX S711 SOUTH SAN FRANCISCOS, CA 94080 Attention: DAVID WOO ACORD 25 (2001/08) CerUficate # CANCELLATION SHOULD AI,,W OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORETHE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL lO DAYS WRI'FTBN NOTICE TO THE CERTIFICATE HOLDER NAMED TO ~E LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILFFY OF ANY KIND UPON THE INSURER. ITS AGEI,JTS OR REPRESEI,,FFATIVES AUTHORIZED REPRESENTATIVE 3282 Kenneth R. Kosich Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit C April 28, 2004 Page l of ¢ The ~PA.~' Insur~n~ ~omp~y 1235 R~dio R~d, R~dwooO Ci~, CA ~06~1217 650.802.2500 / 808.852,1 ~2 Nx: 650.902.27~ / 888.4-0AM100 (422-6426) ~.camm.com C_4~MtCO MUTUAL INSLTRANCE COMPANY (CAMICO) CERTIFICA~ OF INS~CE Date: March 18, 2004 City of' South San Francisco Dav/d Woo, Assistant Director of Finance ?.0. Box 71 t South San Francisco, CA 94083 ]Re: Maze & Associates 1931 San Miguel Drive, Ste 200 Walnut Creek,, CA 94596 Policy No.: CAL02998-16 This is to certify that as of the date hereof a CAMICO policy of accountant's professional 1/ability insurance insuring Maze & Associates as the Named Insured is in effect. The pol/cy per. iod of such policy is 01/01/2004 to 01/01/2005 and the per claim/aggregate limits of liability thereur, der are 2,000,000.00/2,000,000.00 respectively. Such insurance is subject to cancellation as pro,tided in the policy and to non-renewal by the Cornpany or by the Named Insured. Coverage is subject to all the terms and conditions of the policy. By issuing this Certificate, CAIvflCO madertakes no obligation to inform any person of tlhe cancelIatio= or nonrenewal of the policy or of e~J~.austion of the lirrdts of Iiability thereunder. CAIVIICO MUTUAL INSUP,_A/NCE COMP~ · Ric Rosa.do Vice Pres/dent of Risk Management Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit C · ~prII zu, 2004 Page 2 of Z~' You'r~ in good t~nds. AMENDED DECLARATIONS , ALLSTATE INSURANCE COMPANY SPECIAL FORM CUSTOMIZER POLICY NO, 050 262793 CHANGE EFFECTIVE: 04/02/2004 The Insured MAZE & ASSOCIATES INC. Mailing Address 1931 SAN MIGUEL 200 WALNUT CREEK, CA 94596-5368 LOCATION OF INSURED PREMISES' 1931 SAN MIGUEL 200 WALNUT CREEK, CA 94596 MASONRY OFFICE Policy Period from 08/11/2003 to 08/11/2004 Beginning and ending 12:01 A.M. , Standard Time at the address of the insured stated above. The Insured is a CORPORATION ADDITIONAL INTERESTS This 'policy also'covers the interests of' any of the'following when"-i'ndicated"by"an ..... XJ'' and'named-below:' The Mortgagee under ~ The Loss Payee under ~ Other Coverage A- Part ()ne Coverage A - Part Two The Additional Insured .[---~ for Leased Premises, under Coverage B- Part One The Vendor under Coverage B - Part One Name SEE BU5575-3 Address , POLICY COVERAGES This policy applies to each of the Coverages and parts shown below. Under CoverageA, Coverage is provided only for property at the Insured Premises for which a specific limit of liability is shown. Coverage A - Business Property Part One Two Buildings The Property InsurancE; Adjustment Condition IS NOT applicable to this policy Business Contents REPLACEMENT COST DEDUCTIBLE $1,000 applicable to each adjusted loss Limits of Liability ¢78,000 Coverage B - Business Liability Part One Two Comprehensive Liability Fire and Specified Peril Legal Liability Advertising Injury Liability Medical Payments Limits of Liability 81,000,000 850,000 8100,000 85,000 825,000 EACH ACCIDENTAL ~Cv'ENT EACH ACCIDENTAL EVENT EACH PERSON EACH ACCIDENT BU5570;4 (Ed, 10-03) Auditing Services Agreement between City of South San Francisco and Maze and Associates--Exhibit C Page 1 of 2 April 28, 2004 Page 3 0f ¢'~ AMENDED DECLARATIONS SPECIAL FORM CUSTOMIZER POLICY NO. 050 262793 OPTIONAL COVERAGES The following optional coverages, if any, are provided under this policy. :overage Location ,DDITIONAL INSURED 001 001 iMPLOYEE DISHONESTY 001 001 :MPLOYERS NON-OWNERSHIP AUTO LIABILITY 001 001 .ess OF INCOME-RENTS 001 001 Limits of Liability SEE COVERAGE B- PART 1 SEE COVERAGE A- PART 6- SAME AS COVERAGE B- PART 3 SEE COVERAGE A- PART 3 $50,000 . Annual Premium for the Policy and Optional Coverages INCLUDES' CALIFORNIA CIGA SURCHARGE $995.52 $19.52 8~ ENDORSEMENTS The following endorsements amend this policy. BU5575-3 BU555OA BU5583-1 BU5756-1 BU5768 BU5767 BU5578 BU5695 BU5651-7 BU5806 BU5754 BU4258-1 PROCESS DATE: 04/07/2004 RCC: 50 Countersigned by THOMAS J ANDERSON Authorized Agent BU5570.4 (Ed. 10Afl,ting Services Agreement between City of South San Francisco and Maze and Associates--Exhibit C Page 2 of 2 April 28, 2004 Page 4 of ¢'