1988-0382233L
NO Y2 "1~1,5g
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH
MUNICIPAL ADMINISTRATIVE SERVICES, INC FOR PROFESSIONAL AUDITING
SERVICES RELATIVE TO THE CITY'S FRANCHISE AGRELMENTS WITH LONE
STAR GAS COMPANY AND SAMMONS COMMUNICATIONS, AND PROVIDING AN
EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Council hereby approves and auth-
orizes the Mayor and City Secretary to execute and attest,
respectively, the agreement between the City of Denton and
Municipal Administrative Services, Inc relative to the City's
franchise agreements with Lone Star Gas Company and Sammons
Communications, under the terms and conditions contained in
Agreement which is attached hereto and made a part hereof
SECTION II That this ordinance shall become effective
immediately upon its passage and approval
PASSED AND APPROVED this the A~OV-It-"day of 1988
1401"
RAYS P DNS, AYOR
ATTEST
JE t'K TERS, CITY SECREMY
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
S1~7/d/ 71 ,J`lX~
222
BY ?
2233L
THE STATE OF TEXAS §
COUNTY OF DENTON §
AGREEMENT BETWEEN THE CITY
OF DENTON AND MUNICIPAL
ADMINISTRATIVE SERVICES, INC
This Agreement is made by and between the City of Denton (the
"Cityll and Municipal Administrative Services, Inc ("M A S " or
"Agent') as follows
WITNESSETH
1 M A S agrees to conduct a franchise compliance audit (the
"Audit") of Lone Star Gas Company and Sammons Communications,
Inc , (the "Companies") which hold a franchise from the City
For purposes of requesting and receiving information from the
Companies, and only for those purposes, M A S shall be an agent
of the City
2 M A S agrees to notify the Companies of its intent to
conduct the Audit and request that any preliminary information
necessary to begin the audit by submitted to M A S as Agent of
the City
3 The Audit to be conducted by M A S shall be to determine
if any franchise fees or other amounts are now due and owing the
City and shall include verification of the following
a) that all customers located within City are correctly
coded as being within the City,
b) that all the company's revenue accounts have been
included in the base for calculation of the fran-
chise fee pursuant to the franchise agreement, and
c) that the Company has included any new resources of
revenue in the base for calculation of the franchise
fee paid the City
4 At the completion of the Audit, M A S shall provide City
with a final audit report which will outline the audit work per-
formed, explain the audit findings and provide recommendations
for the improvement of future franchise fee reporting and compli-
ance efforts
5 As compensation for the services provided hereunder, City
agrees to pay M A S as follows
Thirty (30%) percent of any amounts recovered, refunded
or credited and accepted as a result of any of the
audit findings, including thirty (30%) percent of the
value of any other compensation given to and accepted
by the City as a result of the audit findings
All compensation shall be paid to M A S within thirty
(30) days after the date such amounts are collected
and refunded to City
6 Upon payment to M A S of all amounts due as above
described, M A S will turn over to City all working documents,
files or other information acquired during the audit process
7 Unless prevented by circumstances beyond the control of
M A S , all Services, as described herein, shall be completed
within one hundred and fifty (150) days from the date of this
Agreement
8 M A S shall exercise the same degree of care, skill and
diligence in the performance of the services provided hereunder
as is ordinarily provided by a certified public accountant under
similar circumstances
9 M A S agrees to defend and indemnify City from and
against legal liability for damages arising out of the perfor-
mance of the services provided herein, where such liability is
cause by any error, omission of negligent act of M A S , its
agents or employees
Executed this the LSday
ATTEST
of ,
CITY OF DE ON,
1988
TEXAS
BY
RAY S E HENS MAYOR
' W
J LT RS, CITY SECRETARY
AP ROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
BY
MUNICIPAL ADMINISTRATIVE
SERVICES, INC
BY
ATTEST
SA L HODGE, RESI NT