HomeMy WebLinkAboutReso 36-2004RESOLUTION NO. 36-2004
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AWARDING MAZE AND ASSOCIATES
ACCOUNTANCY CORPORATION A FIVE-YEAR AUDITING
SERVICES CONTRACT TO 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
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. A copy of the
agreement is attached.
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 regular meeting held on the 28th day of April
2004 by the following vote:
AYES'
Councilmembers Joseph A. Femekes, Richard A. Garbarino, and Pedro Gonzalez,
Vice Mayor Raymond L. Green, and Mayor Karyl Matsumoto
NOES' None.
ABSTAIN: None.
ABSENT' None.
ATTEST:
citY Clerk
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 pe'rform 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
Assignment 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
'ff'otal 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 fur[her 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 Payment. 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
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.
4.2 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
4.3
4.4
bo
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.
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:
al
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:VlI.
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 thir[y (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. Ail 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, ~00:4-'
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. STATUS OF AUDITOR.
6.1
Independent Contractor. At all times during the term of this Agreement, Auditor shall be
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.
6.2
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.
Section 7. LEGAL REQUIREMENTS.
7.1
Governing Law. The laws of the State of California shall govern this Agreement.
7.2
Compliance with Applicable Laws. Auditor and any subcontractors shall comply with all
laws applicable to the performance of the work hereunder.
7.3
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.
7.4
Licenses and Permits. Auditor represents and warrants to Ci.ty 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 ali 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.
7.5
Nondiscrimination and Equal Opportunity. 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 all 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.
Assi_qnment 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, 2004
Page 9 of 13
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.
8.5
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.
8.6
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.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1
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.
9.2
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.
9.3
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.
Severabilit¥. 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. Mat[as, 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 basib 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 XIilB 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 WORK2LAN (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 ChecMist, 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:
Cit-), closes books, completes preparation of data on Annual Closing Checklist
October 4-18:
We review and reconcile balance sheet reconciliations and Annual Closing Checklisti.nformation
We perform Parmer Level Analytical Review of f'manciaI 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 En~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 3 of 17
AUDIT APPROACH, SCOPE AND WORKPLAN (Continued)
November 1-12'
City reviews draft financial statements and recommendations
Cil3, 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 awee on final amounts and wording
We issue final reports and recommendations for ail entities
We pe. rform limited procedures on M D & A
November 29
Final CAFR delivered to the City for printing
All other final reports and recommendations issued
This timeline is more ag~essive than that outli~ed in your Request for Proposal, but it can be achieved if
the Cils, can meet its responsibilities timely, especially with respect to the drafting of the Management's
Discussion & Analysis. Our audit effort is designed 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 oe~lc~,s Agreement between
^ ~: v
City of South San Fra"..a. cisco and Maze and ~-,ssociate~--E^hibit A
April 28, 2004
Page 4 of 17
CITY OF SOUTH SAN FRANCISCO
Proposed Engagement Segments and Budget
Audit Activities
Planning & budget/Confirm/Checklists
Minutes-resolutions
.Report
Supervision/review
Conferences & meetings
Management letter
Accounting Issues Memo
Analytical review/Memo on Exam
Adjustments
Internal Control Evaluation
Information Systems Review
Cash & Investments
Reven u e/Receiv a bi es
Interfu n ds
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 .Staiements:
Capital assets
Consolidation/reconciliation
Entity-wide statements
Internal service funds
Management's discussion & analysis
Revenue allocation
Subtotal - Comprehensive Annual Financial Report
Partners
Review }Alternate
2.00[
6.00 3.00
12.00
2.00
1,00
1.00
4.00
Budgeted Hours
Supervisor
12.00
8.00
24.00
60.00
6.00
2.00
3.00
8.00
1.00
3.00
4,00
1.00
8.00I
Associates
16.00
2.00
2.0O
I6.00
40.00
24.00
10.00
12.00
24.00
4.00
24.00
24.00
12.00
40.00
6.00
12.00
2,00
2.00
4.00
1.00
2.00
6.00
4.00
4.00
2.00
3.00
28.00 3.00 ]49.00 289.00
Admin.
4.00
1,00
5000
Total
14.00
8.00
53.00
72.00
8.00
6.00
6.OO
I2.00
1.00
19.00
4.00
40.00
24.00
I0.00
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
Me~sure A Sales Tax Fund
Transportation Development Act Program
GANN Limt Report
State Transportation .Improvement Program
GRAND TOTAL
4.00 2.00 12.00 40.00 4.00 62.00
2.00 16.00 40.00 2.00 60.00
2.00 6.00 19.00 1.00 28.00
1.00 3.00 8.50 1.00 13.50
1.00 3.00 8.50 1.00 13.50
0.50 1.00 4.50 1.00 7.00
1.00 3.00 8.50 1.00 13.50
39.50 5.00 193.00
418.00
16.00
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
GRAND TOTAL
2.00 4.00
32,00
24.00
12.00
8.00
4.00
g.O0
0.00
0.00
50.00
24.00
8.00
4.00
S.oo
2.00 0.00 4.00 56.00 32.00 94.00
Auditing Services Agreement between
City of South San Francisco and Maze and Associates--Exhibit A
April 28, 2004
Page 6 of 17
FEES/COMPENSATION
Total Cost of 2004, 2005, 2006, 2007, and 2008 Audits
Our Total All-inclusive Maximum Price for our engagements are £n'm fixed fees; as detailed on the
following 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 fn-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 '~nidden costs"--tkne spent with auditors--to 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
fn-ms. This training is very intense, very inter-active, very practical and is 100% municipal audit related.
Since nearly ail 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/COS'IPENSATION (Continued)
Since so much of our practice is frxed-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 financial statements before we begin our year-end audit
forces the Partners to get actively involved early and ~ve Directors, Senior Associates and Associates the
direction they need. Computerizing the entire f'mancial statement m~d 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 heax~y 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 Program)
Sewer Rental Fund
Measure A Sales Tax Fund
GANN Limt Report
State Transportation Improvement Program
Out-of-pocket expenses (1)
62.00 5,810
6O. 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
Opt-ional Services:
Preparation of the Comprehensive Annual Financial Report
Printing costs for 50 copies -third party vendor
94.00 $6,55O
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 Sewices 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 fiscaI 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 c~s~cs are estimated based on a quote from our third party printer. Actual costs will be billed directly to the
City by the third part3, 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
15,3'62 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 Revenue Fund
$316 $325 $356 $346 $357
Communi~ Development Block Grant
385 397 435 422 435
Measure A Sales Tax Special Revenue Fund
465 479 524 509 525
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
INSole: '
As pro¥ided for in OMB Circular A-87,.Cost Principles for State, Local, and Indian Tribal Goyernments,
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
SCHED~E OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCHEDIYLE FOR THE
Redevelopment Agency
Hourly Totals
Hours Rates 2004 2005 2006
2007
2008
Partners 6.00 $295 $1,770 $1,825 $1,882 $I,940 $2,000
Supervisory staff
12.00 100 1,200 1,237 1,275
40.00 65 2,600 . 2,681 2,764
1,315
"Staff
2,850
1,356
Other:
Administrative Staff
2,938
4.00 60 240 247 255 263 271
Total for this Report 62.00 $5,810 $5,990 $6,176 $6,368 $6,5~5
CITY OF SOUTH SAN FRANCISCO
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCHEDULE FOR THE
Single Audit (1 Progam)
Hourly Totals
Hours Rates 2004 '2005 2006'
2007
2008
Partners 2.00 $295 $590 $608 $627 $646 $666
Supervisory staff ~- 16.00 100 1,600 1,650 1,701
Staff 40.00 65 2,600 2,681 2,764
..-
1,754
Other:
Administrative Staff 2.00 60 120 124 .' 128
2,850
132
1,808
Total pr!ce for this Report
2,938
136
60.00 $4,910 $5,063 $5,220 5;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
Partners 2.00 $295 $590 $608 $627 $646 $666
Supervisory staff 6.00 100 600 619 63 8 658 678
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
$2,723
Total price for this Report
28.00 $2,485 $2,562 $2,641
$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
2008
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
$1,324
Total for this Report 13.50 $1,208 $1,245 $1,284
$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
2008
Partners 1.00 $295 $295 $304 $313 $323 $333
3.00 100 300 309 319 329 339
,
8.50 65 553 570 588 606 625
1.00 60 60 62 64 66 68
Supervisory staff
Staff
Other:
Administrative Staff
Total for this Report 13.50 $q,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
106
311
Supervisory staff i .00 100 100 103
109
321
Staff ~ 4.50 65 293 302
112
331
Other:
Administrative Staff 1.00 60 60 62 64 66 68
$638.
T°tai for this Report 7.00 $600 $619
$658
$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
SCI-IEDULE OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCHEDULE FOR THE
State Transportation Improvement Pro,am
Hourly Totals
Hours Rates 2004 2005 2006
2007
2008
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
CITY' OF SOUTH SAN FRANCISCO
SCI-{EDULE OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCt-IED~E FOR THE
Comprehensive.Annual 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
2,104
$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 I Sc 2-I2
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 desig-nated 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 for 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 program 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 pro,am.
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
5'our request for proposal. Our price also includes the items below at no additional cost:
1) year-round support and telephone consultation on pertinent issues affecting your City,
2) copies of our journal entries and our leadsheets used to support the amounts in your financial
statements,
3) active Partner involvement in your work every year at both interim and final,
4) Color Graphs or Color Coded statistical information camera-ready for inclusion in your f'mancial
statements,
5) SpeciaI Emphasis Areas, in each year's audit, selected by you as part of the annual audit,
6) our typed Interim Audit Checklist,
7) our typed Annual Closing Checklist,
8) our typed interim Accounting Issues Memorandum,
.9.)preliminary draft financial statements at interim,
10) participation, on request, in panels evaluating applicants for Finance Department positions,
11) answers to most municipal payroll tax questions,
12) reference library of California CAFR award-winners.
Client Alerts
Our heaw emphasis on early identification of audit problems as part of our interim audits has lead us to
issue Client Alerts to ail 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 firms 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:
Dav/d Woo
Assistant Director o f Finance
City of South San Francisco
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 regard/rig this request may be directed to David Woo at (650) 877-8506 or at
dav/d.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)
Back~ound 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 f'mancial 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, 2003. 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 an additional year covering the fiscal year ending June 30, 2009 if
both the City and audit finn 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.
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
fi'om the general fund, consisting prhnarily 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 pl4nt 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~encv. 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 Mateo 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
pr/nt 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 L/mit computation done by the client. Auditor shall
produce five copies reporting their results by December 15.
Manaaement 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
Improvement Pro,am. 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, if 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 work/ng 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 fi-om the general ledger. Entity-wide entries
are not booked on the general ledger. Printed thai 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 Timing
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, CALIFOKNIA
Request for Proposals of Audit Services
October 16, 2003
Page 6 of 8
work, staffing and time estimates. Indicate assumptions regarding work to be
performed by City staff including those mentioned in 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~ed and
alternate pxincipals and staff should be included in this proposal.
The City reserves the right to request replacement of any member 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 fu-m 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 follo~_ng 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 Enterphse Fund Audit
5. All other portions of General City Audit
Single Audit
Redevelopment Agency Audit
MTC-TDA Audit
Garm Appropriations L/mit
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
.
Name and principal address of firm.
.
Location of the local office(s) from which the audit team will be based and
the number of palmers, managers, supervisors, sen/ors, and other
professional staff employed at those office(s).
o
Describe fl~e range and percentage of activities perfonr~ed 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.
o
Describe the fu-m's experience in assisting clients, to implement GASB 34
and related pronouncements.
.
Give an example of one of the most helpful management letter comments
Or audit findings that the firm has made recently to a government client. It
should involve pointing out a material weakness that the client was not
aware of and which you wanted them to correct. Descr/be how the firm
presented the recommendation to the client, and how it was received by
them.
Describe the composition and relevant experience and education of the audit
team members, as indicated in Section (VI) - Personnel.
Auditing Services Agreement 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 cormnitment and ability to provide the sen, ices 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 T/mi_ng.
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 necessmaj, 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
TM.
PRODUCER
KOSICH & CALLAHAN INSURANCE SERVICF. S
3435 MT. DIABLO BLVD, STE. 300
LAFAYETTE CA 94549
PHONE: 925-284-3911
FAY.: 925-284.3919
Apency Lie#: 0802662
INSURED .
MAZE & ASSOCIATES ......
1931 SAN MIGUEL DRIVE
WALNUT. CREEK CA 94596
..
..
·
.. ,
COVERAGES
L.,F..I'~I It"IL.,/.41: Ut" Li/.ADILI I T ir~...hUl'euAlr~iL,:. J MARIB04
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND DR
ALTEE THE COVERAGE AFFORDED BY THE POLICIES BELOW.
iNSURERS AFFORDING COVERAGE I NA)C #
INSURER A: Republic Indemnity Co. of California
INSURER B: "
INSURER C: "
INSURER D:
INSURER E:
THE POLICIE.~ OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING
ANY REOUlREIViENT, TERM OR CONDITION OF ANY CONrTRACT OR OTHER DOCUMENq' WITE RESPECT TO WHICH THIS CERTIFICATE MAY EE ISSUED OR
IVlAY PERTAIN. THE INSURANOE AFFOP,,DED BY THE POLICIEE DESCRIBED H---'REIN IS SUBJECT TO ALL THE TERMS, -:~KCLUSIONS AND CONDFI'ION~E OF SUCH
POLICIES AGGREGATE LIMITE SHOWN MAY HAVE EEEN REDUCED BY PAID ~LAIMS.
~.~ TYPB OF INSUP, ANCE } POLICY NUMBER I I~DATE .... IMi/i/DEFFEL-T/V£ i POL)CY EXPIP'ATION lOPs'Y] DATE f~'~MIDD/YY) LIMITS
BENER. AL LIABILITY 'EACH OCCURRENCE
I COMMERCIAl GENERAL LIABILITY
I CLAIMS MADE ~ OCCUR
PERSONAL & ADV INJURY
· GENE"r~L AG®ATE
GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OF AGG.
._
L ~.~DMDI31LE LIABILITY COMBINED SINGLE LIMIT
At~/' AUTO
ALL OWNED ALITOS BODILY INJUFL~Y
-- {'Per person)
.... SCHEDULED AUTOS
-- HIRED ALFFOS ~ODILY INJURY
NON-OWNED AUTOS (Fer accident).
.
·
PROPERTY DAMAGE
GARAGE LIABILITY AUTO ONLY- EA ACCIDEI~'
AUTO ONLY: AGG
-~XCES$ I UMBEREt. LA LIABILITY EACH OCCURRENCE
WOI~KE~SCOMP~.NSATIONAND 1507660.3 JAN 1 04 JAN 1 05 Iw:~rA~ J i°;"z~'
TORY LIk~IT~
EMPLOYEES' LIABILITY ~LEACH ACCID~4T
ANY p P, O P RI _~T OR/PA RTI~ E R/F__XE :LrFIVE
DFF~CER/hleMaEI~ EXCLUDED? E.L DISEASE-ER EMPLOYEE
SPECIAL PROVISIONS below E.L DtEE. AEE.POUCY LIME
1,600,000
1,000,000
1,000,000
OTHER:
DESCRIPTION OF OPERATIONSILOCATIONNEHICLESIEXCLUSIONS ADDED ENDORSEMENT/SPECIAL PROVISIONS
PROOF OF INSURANCE
FAX t;50=829-6614
CERTIFICATE HOLDER I I ADDITIONAL INSURED; iNSURER
CiTY OF SOUTH SAN FRANCISCO
ASSISTANT DIRECTOR OF FINANCE
P.O. BOX $711
SOUTH SAN FRANCISCOS, CA 9¢060
Attention: DAVID WOO
ACORD 25 (2001/08)
Certificat~ #
CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POUCIE$ EE CANCELLED BEFORETHE
ED~PIRATION DATE THEREOF. THE ISSUING COMPAh,rY WILL ENDEAVOR TO MAIL 10
DAYE WRFFFEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO ~E LEFT, BUT
FAILURE TO DO SD SHALL IMPOSE NO OBLIGATION OR lIABILITY OF ANY KIND UPON THE
IN,UP, ER. IT'S AG~TS OR REPRE~EhITAT1VES.
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 ~
Tha CPAs' Jnsurancs Company
1235 R~dio R~d, Redwoo~ Ci~, CA ~06~1217
650.802.2500 / ~00.652.1~2
~ 650.80~27~/888A-OAMIO0 (422-6426)
~.~.camJco,com
C_&MICO MUTUAL INSUR_ANCE COM~AI~
(CA_MICO) CERTI~CATE OF [NS~CE
Date: March 18, 2004
City of South San Francisco
Dav/d Woo, Assistant Director of Finance
P.O. Box 711
South San Frmacisco, CA 94083
Maze & Associates
1931 San Mi~el Drive, Ste 200
Walnut Creek, CA 94596
Policy No.: C.&L02998-16
This is to certify that as of the date hereof a CAMICO policy of accountant's professional 1/ability
hasurance inmg Maze & Associates as the Named Insured is in effect. The pol/cy p~iod of such
policy is 01/0!/2004 to 01/01/2005 and the per claim/aggregate 1/mits of liability thereunder are
2,000,000.00/2:000,000.00 respectively. Such insurance is subject to cancellation as provided in the
policy md to non-renewal by the Company or by the Named Insured. Coverage is subject to all the terms
and conditions of the policy.
By issuing th_is Certificate, CA/v~CO undertakes no obligation to in_~orm an5, person of the cancellation or
nonrenewal of the policy or of exhaustion of the lirrfits of Iiability thereunder.
CAM/CO IVI-UTUAL [NS~CE
BY ~ .... ..
.Pdc Rosa_ho
Vice President of Risk Management
Auditing Services Agreement between
City of South San Francisco and Maze and Associates--Exhibit C
.~,p~, 2004
Page 2 of,g"~
¥~J'r~ In good
ALLSTATE INSURANCE COMPANY
AMENDED DECLARATIONS
SPECIAL FORM CUSTOMIZER POLICY NO. 050282793
CHANGE EFFECTIVE' 04/02/2004
1. 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 a'lso"covers'the"interests of' any ofthe'following wh'e'n'"i'ndicated"by"an ..... X ..... and' named"beiow:"
_~ The lvlortgagee under [----] The Loss Payee under ~ Other
Coverage A- Part One Coverage A- Part Two
The ASditional Insured .[--~
for Leased Premises,
under Coverage B - Part One
Name SEE BU5575-3
The Vendor under
Coverage B - Part One
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 Limits of Liability
One Buildings
The Property Insurance
Adjustment Condition IS NOT applicable to this policy
Two Business Contents REPLACEMENT COST $78,000
DEDUCTIBLE $1,000 applicable to each adjusted loss
Coverage B - Business Liability
Part
One Comprehensive Liability
Fire and Specified Peril Legal Liability
Two
Advertising Injury Liability
Medical Payments
BU5570:4
(Ed.
Auditing Services Agreement between
City of South San Francisco and Maze and Associates--Exhibit C
Limits of Liability
$1,000,000
$50,000
$100,000
$5,000
$25,000
EACH ACCIDENTAL
EVENT
EACH ACCIDENTAL
EVENT
EACH PERSON
EACH ACCIDENT
Page I of 2
April 28, 2004
Page 3 of ¢/~
AMENDED DECLARATIONS SPECIAL FORM CUSTOMIZER POLICY NO. 050 262793
OPTIONAL COVERAGES
The following optional coverages, if any, are provided under this policy.
/erage Location
DITIONAL INSURED 001 001
PLOYEE DISHONESTY 001 001
PLOYERS NON-OWNERSHIP AUTO LIABILITY 001 001
SS 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,O0O
Annual Premium for the Policy and Optional Coverages $995,52
INCLUDES: CALIFORNIA CIGA SURCHARGE $19.52
ENDORSEMENTS
The following endorsements amend this policy.
BU5575-3 BU555OA BU5583-1
BU5756-1 BU5766 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. l~tting Services Agreement between
City of South San Francisco and Maze and Associates--Exhibit C
Page 2 of 2
April 28, 2004
Page 4 of ¢