2000-215C\WWU WS\TEMNnp 2481 nNmwand%
ORDINANCE NO OBI 00- a 1,6-
AN ORDINANCE TO THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE
CITY OF DENTON AND DELOITTE AND TOUCHE, L L P FOR INDEPENDENT
AUDITS, AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING AN
EFFECTIVE DATE (RFSP 2481 - AUDIT SERVICES AWARDED TO DELOITTE AND
TOUCHE, L L P IN THE NOT TO EXCEED AMOUNT OF $55,000 FOR 2000, $62,750 FOR
2001 AND $65,900 FOR 2002 FEES FOR 2003 AND 2004 WILL BE BASED UPON THE
CONSUMER PRICE INDEX FOR THE DALLAS METROPLEX)
WHEREAS, the City's current agreement with Deloitte and Touche expired after the
completion of the firm's audit services for the fiscal year ending September 30, 1999, and
WHEREAS, in response to requests for proposal, Deloitte and Touche was the best and
only proposal received for auditing, and
WHEREAS, the City Manager recommends and the City Council deems it in the public
interest that the City enter into a professional services agreement for independent auditing
services with the Delortte and Touche for the fiscal years ending September 30, 2000, September
30, 2001 and September 30, 2002 with the City's option to extend the agreement for two
additional fiscal years ending September 30, 2003 and September 30, 2004, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the City Manager is hereby authorized to execute, on behalf of the
City, a professional services agreement for auditing services between the City and Delortte and
Touche, L L P for independent auditing services, in substantially the form of the agreement
which is attached hereto and incorporated by reference herein
SECTION 2 That City Manager is hereby authorized to expend the funds and to
undertake the obligations as set forth in the attached agreement
SECTION 3 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the a°h day of 09".1 12000
EULINE BROCK, MAYOR
F 4M1UN pli Wue McummYWkIRm WWelolue R mmdu dou
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY 9AAI~
Page 2 of 2
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PROFESSIONAL SERVICES AGREEMENT
FOR AUDITING SERVICES
STATE OF TEXAS §
COUNTY OF DENTON §
THIS AGREEMENT, is made and entered into as of the a?~~day of
2000, by and between the City of Denton, a Texas Municipal Corporation, wnncipal
office at 215 E McKinney Street, Denton, Denton County, Texas 76201 (hereinafter referred to
as "CITY") and Deloitte & Touche, L L P , with an office at 2200 Ross Avenue, Dallas, Texas
75201-6778 (hereinafter referred to as ("AUDITOR") acting herein, by and through their duly
authorized representatives
WHEREAS, CITY desires to engage AUDITOR to provide audit services as herein
defined, and
WHEREAS, AUDITOR is willing to provide such services to CITY,
NOW THEREFORE, in consideration of the promises and mutual undertakings herein
contained, the parties agree as follows
Engagement of Auditor
The CITY hereby contracts with AUDITOR, as an independent contractor, and the AUDITOR
hereby agrees to perform the services herein in connection with the engagement as stated in the
Articles to follow, with diligence and in accordance with the highest professional standards
customarily obtained for such services in the State of Texas The professional services to be
performed by AUDITOR are in connection with the engagement described in Article 2 below
2
Scope of Services
The AUDITOR shall perform the following services
A The AUDITOR will perform the annual audit of CITY's general purpose financial
statements Such audit will be conducted in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller of the United
States, the Single Audit Act of 1996, and the applicable OMB Circular, Audits of State
and Local Governments, and any other applicable regulations as set forth by federal,
state, or local regulating bodies, particularly the Governmental Accounting Standards
Board as they may now read or may hereinafter be amended
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B AUDITOR will issue a management letter to CITY reporting any material weaknesses in
CITY's internal accounting controls discovered during the annual audits of CITY's
financial statements
C AUDITOR will perform the annual compliance audit and single audit of CITY's federal
financial assistance programs Such audit will be conducted in accordance with generally
accepted auditing standards, ['government Auditing Standards, issued by the Comptroller
of the United States, OMB's Compliance Supplement for Single Audits of State and
Local Governments, the applicable OMB Circular, Audits of State and Local
Governments, and AICPA Statement on Auditing Standard No 63, Compliance Auditing
Applicable to Governmental Entities and Other Recipients of Governmental Financial
Assistance, and any other applicable regulations as set forth by federal, state, or local
regulating bodies, particularly the Governmental Accounting Standards Board as they
may now read or hereinafter be amended
D AUDITOR will perform all professional services as defined in the Proposal to Serve
document dated April 2000 attached hereto as Exhibit "A", which is incorporated by
reference herewith, together with those professional services outlined in the annual,
officially accepted and agreed-upon Engagement Letters to be attached as Amendments
Number One (1) through Two (2) hereto in the event the City exercises its option years
under section 3 and 6 of this agreement These two (2) amendments will be attached at
the beginning of each annual engagement
E During any fiscal year covered by this Agreement, CITY may request AUDITOR to
provide services in addition to the services provided hereunder AUDITOR may, at its
option, agree to provide such additional services upon terns and conditions as mutually
agreed upon and outlined in Appendix A Rates in Appendix A reflect the first fiscal
year (year ending September 30, 2000) rates These rates will be adjusted annually using
the Consumer Price Index for the Dallas metroplex for March of each year The March
2000 CPI will be used as the base year
3
Duration of Agreement
This Agreement for audit services as specified herein for the financial statements of CITY
pertains to CITY's fiscal years ending September 30, 2000, September 30, 2001 and September
30, 2002 and, if CITY exercises its option pursuant to Article 6, CITY's fiscal years ending
September 30, 2003 and September 30, 2004 This Agreement may be sooner terminated in
accordance with the provisions hereof If the CITY exercises the two option years, the extension
shall be considered part of this Agreement This extension will be documented by the CITY's
receipt and official written acceptance of the annual engagement letter for the fiscal years ending
September 30, 2003 and September 30, 2004
Auditing Services Agreement - Page 2
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4
Completion of Services
AUDITOR's financial and compliance audit work shall be completed no later than
December 30, after the CITY's fiscal year end The City's Controller should be able at this time
to begin preparation of the Comprehensive Annual Financial Report ("CAFR") The CAFR
should be available for print by the 2°d Monday in January following the end of the latest fiscal
year AUDITOR's completion of the compliance and audit work for the CITY is subject to
availability of the CITY's records The AUDITOR shall make all reasonable efforts to complete
the servues set forth herein as expeditiously as possible, and to meet the schedule established by
the CITY, acting through its City Manager or his designee
5
Responsibilities of the City
CITY understands that the proper and timely completion of AUDITOR's services hereunder
requires the reasonable cooperation of CITY (including, without limitation, its agencies, and
their respective officers, directors, employees, other personnel and agents) CITY agrees to
provide all such reasonable cooperation requested by AUDITOR, including, without limitation,
the following
A Access to, and/or copies of CITY's books and records,
B Access to CITY personnel,
C Office space and access to support services such as copying and telephone,
D Written representations from CITY's attorney's, both internal and external, the latter may
bill CITY for such services,
E Written representations from CITY about the financial statements and other matters, and
F Closing of CITY's books and records of account in accordance with laws, regulations and
professional standards applicable to the services provided hereunder
City agrees with the provisions contained in the engagement letters, if any, for each of the option
fiscal years, as will be attached in Amendments One through Two at the beginning of each
annual engagement
6
Renewal
CITY may request renewal of this Agreement for two additional one-year periods for CITY's
fiscal years ending September 30, 2003 and September 30, 2004 CITY shall exercise its
renewal option for the one year period ending September 30, 2003 by March 31, 2003 CITY
shall exercise its renewal option for the one-year period ending September 30, 2004 by March
31, 2004, If the CITY does not elect to exercise these options for renewal of this Agreement for
these two additional one year periods, then CITY and AUDITOR agree that CITY may then
issue requests for proposals for the fiscal years ending September 30, 2003 and September 30,
2004
Auditing Services Agreement - Page 3
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7
Compensation
A CITY shall pay AUDITOR for time charges and expenses incurred AUDITOR's
standard hourly rate vanes according to the degree of responsibility involved and the
experience level of the personnel assigned to CITY's audit Except as provided
hereunder, AUDITOR's fees for the performance of the services described in Section 2
shall be limited by the not to exceed figures set forth herein and charged at the rates set
forth under Appendix A
For the fiscal years ending September 30, 2000, 2001, 2002, and if applicable, option
years 2003 and 2004, shall not exceed these respective amounts $55,000 for 2000,
$62,750 for 2001, $65,900 for 2002 Should the City choose to exercise its option for the
renewal of this agreement in years 2003 and 2004, Auditor fees will be adjusted annually
using the Consumer Price Index for the Dallas Metroplex and the year ended September
30, 2002 as the base year
B CITY and AUDITOR recognize that the scope of services and compensation under this
Agreement are predicated upon (i) current audit requirements imposed by laws,
regulations and professional standards relating to such services, (u) expectations of
reasonable cooperation with AUDITOR by CITY pursuant to this Agreement, and (iii)
the absence of any irregularities or circumstances which might necessitate the extension
of audit services beyond the normal scope of auditing services
C Should (i) irregularities, (u) the absence of such reasonable cooperation, (iii) increase in
the level of services required under applicable laws, regulations or professional standards,
or (iv) other unforeseen conditions be encountered which might necessitate the extension
of auditing work beyond the scope of normal auditing procedures, AUDITOR agrees to
advise CITY promptly in writing of the circumstances and to request an equitable
adjustment in the maximum fee before significant additional time is incurred by
AUDITOR Any such requests for adjustments shall be in writing and shall contain an
explanation of why the adjustments are necessary
D CITY and AUDITOR agree to negotiate in good faith to determine an equitable
adjustment in the maximum fee Should CITY and AUDITOR be unable to agree upon
an equitable adjustment within fourteen (14) days of AUDITOR's written request, or
such other time period as agreed upon in writing by CITY and AUDITOR, either party
may, notwithstanding any other provision in this Agreement, terminate this Agreement
upon thirty (30) days written notice to the other party CITY shall be liable for time
charges and expenses actually incurred by AUDITOR except for any such additional time
and expense which has been incurred as a result of the circumstances necessitating the
adjustment
Auditing Services Agreement - Page 4
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Billing and Payment
A AUDITOR shall submit periodic detailed itemized invoices for time charges and
expenses incurred as the services hereunder are performed satisfactorily in accordance
with this Agreement Such invoices are payable upon presentation CITY will be in
material breach of this Agreement if CITY's account becomes ninety (90) days or more
overdue AUDITOR may, at its sole option and without waiver of any rights pursuant to
the termination provision in this Agreement or otherwise, suspend its services and resume
them upon receipt from CITY of the full amount due AUDITOR which has been
submitted by invoice to CITY
B Partial payments to AUDITOR will be made on the basis of detailed itemized statements
rendered to and approved by the CITY through its City Manager or his designees,
however, under no circumstances shall any statement for services exceed the value of the
work performed by AUDITOR at the time a statement is rendered
C Nothing contained in this Section shall require the CITY to pay for any work which is not
submitted in compliance with the terms of this Agreement CITY shall not be required to
make any payments to the AUDITOR when AUDITOR is in material default under this
agreement for more than 30 days after receipt of written notice of such default from
CITY
D It is specifically understood and agreed that AUDITOR shall not be authorized to
undertake any work pursuant to this Agreement which would require additional payments
by the CITY for any charge, expense or reimbursement above the maximum not to
exceed fee as stated without first having obtained written authorization from the CITY
Ownership of Workpapers,
Documents, and Property
A All workpapers of AUDITOR shall remain the property of AUDITOR In addition, to the
extent that AUDITOR utilizes any of its property (including, without limitation, any
hardware or software of AUDITOR or any proprietary or confidential information or
trade secrets of AUDITOR) in performing the services hereunder, such property shall
remain the property of AUDITOR, and CITY shall acquire no right or interest in such
property
B Except for the workpapers and other documentation described in Section 9 A above, all
documents prepared or furnished by the AUDITOR for delivery to CITY pursuant to this
Agreement are instruments of service and shall become the property of the CITY upon
the termination of this Agreement, and full and final payment of all undisputed amounts
owed AUDITOR hereunder The AUDITOR is entitled to retain copies of all such
documents
Auditing Services Agreement - Page 5
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10
Independent Contractor
AUDITOR shall provide services to CITY as an independent contractor, not as an employee of
the CITY AUDITOR shall not have or claim any right ansing from employee status
11
Indemnity Provision
AUDITOR shall indemnify and save and hold harmless the CITY and its officers, agents, and
employees from and against any and all liability, claims, demands, damages, losses and
expenses, including but not limited to court costs and reasonable attorney fees incurred by the
CITY in each case solely for injury, death and physical damages to real or tangible personal
property to the extent resulting from the negligent acts or omissions of the AUDITOR or its
officers, partners, agents, or employees in the execution, operation, or performance of this
Agreement, except that the indemnity provided for in this Section shall not apply to any liability
resulting from the sole negligence of CITY, its officers, agents, employees or separate
contractors, and in the event of joint and concurrent negligence of both AUDITOR and CITY,
responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State
of Texas
As a condition to the foregoing indemnity obligation, CITY shall provide AUDITOR with
prompt notice of any claim for which indemnification shall be sought hereunder and shall
cooperate in all reasonable respects with AUDITOR in connection with any such claim
AUDITOR shall be entitled to control the handling of any such claim, with full disclosure of any
and all claims, and actions taken thereunder, to the CITY, and AUDITOR shall be entitled to
defend or settle any such claim, in its sole discretion, with counsel of its own choosing
Nothing in this agreement shall be construed to create a liability to any person who is not a party
to this Agreement and nothing herein shall waive any of the party's defenses, both at law or
equity, to any claim, cause of action or litigation filed by anyone not a party to this Agreement,
including the defense of governmental immunity, which defenses are hereby expressly reserved
12
Insurance
During the performance of the Services under this Agreement, AUDITOR shall maintain,
throughout the duration of this Agreement, the following insurance
A Professional Liability Insurance with policy limits of not less than $1,000,000 annual
aggregate, with respect to negligent acts, errors, or omissions in connection with the
professional services performed by AUDITOR pursuant to this Agreement
Auditmg Services Agreement - Page 6
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B AUDITOR shall furnish insurance certificates or insurance policies at CITY's request to
evidence such coverage The insurance policy shall contain a provision that such policy
shall not be cancelled or modified without thirty (30) days prior written notice given by
the Insurance carrier to CITY and AUDITOR In the event of cancellation or non-
renewal of such coverage, AUDITOR shall, prior to the effective date of the non-renewal
or cancellation, deliver to CITY a Certificate of Insurance evidencing that a substitute
policy furnishing the same coverage is in full force and effect
13
Arbitration and Alternate Dispute Resolution
The parties may agree to settle any disputes under this Agreement by submitting the dispute to
arbitration or other means of alternate dispute resolution such as mediation No arbitration or
alternate dispute resolution arising out of or relating to this Agreement involving one party's
disagreement may include the other party to the disagreement without the other's approval
14
Termination of Agreement
A Notwithstanding any other provision of this Agreement, either party may terminate by
giving thirty (30) days advance written notice to the other party
B This agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under this Agreement No such termination
will be effected unless the other party is given (1) written notice (delivered by certified
mail, return receipt requested) of intent to terminate and setting forth the reasons
specifying the nonperformance , and not less than 30 days to cure the failure, and (2) an
opportunity for consultation with the terminating party prior to termination
C If the agreement is terminated prior to completion of the services to be provided
hereunder, AUDITOR shall immediately cease all services and shall render a final bill for
services to the CITY within 30 days after the date of termination The CITY shall pay
AUDITOR for all services rendered and satisfactorily performed and for reimbursable
expenses incurred prior to the date of termination in accordance with the terms of this
Agreement Should the CITY subsequently contract with a new AUDITOR for the
continuation of services on the audit engagement, AUDITOR shall reasonably cooperate
in providing information in accordance with, and to the extent required by, applicable
professional standards The AUDITOR shall turn over all documents prepared or
furnished by AUDITOR for delivery to CITY pursuant to this Agreement to the CITY on
or before date of termination, but may maintain copies of such documents for its own
files
Auditing Services Agreement - Page 7
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15
Subcontracting
Neither this Agreement, nor the audit services to be provided hereunder may be assigned or
subcontracted without prior written approval of CITY
16
Retention Of and Access To Records
For a period of five years after the date of AUDITOR's report on any audit completed hereunder,
upon reasonable written notice to AUDITOR and CITY, representatives of the cogmzant audit
agency (or its designee), the Texas state auditing agency and the United States General
Accounting Office shall be entitled during AUDITOR's regular business hours during the said
five year period to inspect and designate for copying AUDITOR's audit workpapers relating to
such completed audit Copies will be made at CITY's or requestor's expense by, or under the
control of AUDITOR
17
Notices
All notices, communications, and reports required or permitted under this Agreement shall be
personally delivered or mailed to the respective parties by depositing same in the United States
mail at the address shown below, certified marl, return receipt requested, unless otherwise
specified herein
To AUDITOR
To CITY
Deloitte & Touche, L L P City of Denton, Texas
Texas Commerce Tower, Suite 1600 Michael W Jez, City Manager
2200 Ross Avenue 215 E McKinney
Dallas, TX 75201-6778 Denton, Texas 76201
Attn Terry Kile
All notices shall be deemed effective upon receipt by the party to whom such notice is given
18
Entire Agreement
This Agreement, including all Exhibits and Amendments annexed hereto and made a part hereof,
constitutes the entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all other oral or written representations, understandings or agreements
relating to the subject matter hereof Neither party shall be bound by the provisions of any pre-
printed or other written terms and conditions subsequent tot he date of this Agreement relating to
the subject matter hereof unless such additional terms and conditions are made effective pursuant
to the Amendments subsection of this section
Auditing Services Agreement - Page 8
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19
Severabihty
if any provision of this Agreement is found or deemed by a court of competent jurisdiction to be
invalid or unenforceable, it shall be considered severable from the remainder of this Agreement
and shall not cause the remainder to be invalid or unenforceable In such event, the parties shall
reform this Agreement to replace such stricken provision with a valid and enforceable provision
which comes as close as possible to expressing the intention of the stricken provision
20
Compliance With Laws
The AUDITOR shall comply with all federal, state, and local laws, rules, regulations, and
ordinances applicable to the professional services performed pursuant to this Agreement, as they
may now read or may hereafter be amended
21
Employment Practices/Discrimination Prohibited
In performing the services required hereunder, AUDITOR shall not discriminate against any
person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical
handicap AUDITOR agrees that in connection with the services to be provided to CITY
hereunder that it will comply with all applicable laws and regulations regarding employment
discrimination
22
Personnel/Conflicts of Interest
A AUDITOR represents that it has or will secure at its own expense all professional and
support personnel required to perform all the services required under this Agreement
Such personnel shall not be employees or officers of, nor have any contractual relations
with CITY AUDITOR shall inform the CITY of any conflict of interest under the
professional standards of the AICPA or the Texas State Board of Public Accountancy
that may be discovered or arise during the term of this Agreement
B All services required hereunder will be performed by AUDITOR All personnel engaged
in work shall be qualified, and shall be authorized and permitted under state and local
laws to perform such services
23
Assignability
AUDITOR shall not assign any interest in this Agreement and shall not transfer any interest in
this Agreement (whether by assignment, novation or otherwise) without the prior written consent
of the CITY
Auditing Services Agreement - Page 9
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24
Modification or Amendment
A No waiver or modification of this Agreement or of any covenant, condition or limitation
herein contained shall be valid unless in writing and duly executed by the party to be
charged therewith and no evidence of any waiver or modification shall be offered or
received in evidence in any proceeding ansmg between the parties hereto out of or
affecting this Agreement, or the rights or obligations of the parties hereunder, unless such
waiver or modification is in writing, duly executed, and, the parties further agree that the
provisions of this section will not be waived unless as herein set forth
B No amendment of this Agreement shall be valid unless in writing and signed by both
parties
25
Force Maleure
Notwithstanding any other provision in this Agreement, AUDITOR shall not be liable or held
responsible for any failure to perform or delays in performing its obligations under this
Agreement, including but not limited to, the completion of the audit and issuance of its report
thereon, which result from circumstances or causes beyond AUDITOR's reasonable control,
including, without limitation, acts or omissions or the failure to cooperate pursuant to this
Agreement by CITY (including, without limitation, entities or individuals under its control, or
any of their respective officers, directors, employees, other personnel and agents), fire or
casualty, act of God, strike or labor disputes, war or other violence, or any law, order or
requirement of any governmental agency or authority
26
Miscellaneous
A Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton
County, Texas This Agreement shall be governed by and construction accordance with
the laws of the State of Texas
B In accomplishing this engagement, AUDITOR shall take such steps as are appropriate to
coordinate the work involved with related work being carried on by CITY
C CITY shall assist AUDITOR by placing at the AUDITOR's disposal, all available
information pertinent to the engagement, including previous reports, any other data
relative to the engagement, and arranging for the access to, and making all provisions for
the AUDITOR to enter in or upon, public and private property as required for the
AUDITOR to perform services under this Agreement
Auditing Services Agreement - Page 10
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D The headings of this Agreement are for informational purposes only and shall not in any
way affect the substantive terms or conditions of this Agreement
E Each party represents that it is authorized to enter into this Agreement and that the
individual executing this Agreement on behalf of the party, is authorized to enter into this
Agreement
IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be executed
by its duly authorized City Manager, and AUDITOR has executed this Agreement by and
throu its duly authorized undersigned Director on this the ?a Dell day of
,2000
"CITY"
CITY OF DENTON, TEXAS
BY/)Y//~v/ 44
MANAGER
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY L~
AP VED AS O LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY
"AUDITOR"
BY
ATTEST
Auditing Services Agreement - Page 11
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APPENDIX A
Special Project Rates
Billing Rate
Partners $200 -300
Managers $120 - 180
Supervisory Staff $ 80 - 100
Staff $ 55- 75
(see Page 4 of Deloitte & Touche Proposal to Serve)
Auditing Services Agreement - Page 12
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Deloitte &
Touche
Deloitte & Touche LLP
Suite 1600
Chase Tower
2200 Ross Avenue
Dallas Texas 75201-6778
April 26, 2000
Mr Tom Shaw
Purchasing Agent
City of Denton
Materials Management Office
901-B Texas Street
Denton, Texas 76201
Dear Mr Shaw
Telephone (214) 777 7000
Deloitte & Touche LLP is pleased to provide the City of Denton (the "City") with our
estimated professional fees for our services
Authority Certification
Terry Kile, Director of Public Sector Services in the Metroplex, is entitled to represent our
firm, empowered to submit this bid and authorized to sign a contract with the City
Professional Fees
Our firm has undertaken many initiatives in recent years to ensure that our professional
services are cost-effective
We control our professional fees by
Making significant, ongoing investments in enhancing our audit tools, techniques and
technologies
Coordinating manpower utilization, budgeting our services on a task basis and monitoring
results against that budget
Regularly reviewing the progress of our audit performance with our clients
Obtaining advance fee agreements for additional services as requested
Deloilt buche
Tohmatsu
We would be pleased and excited to provide professional services to the City of Denton
Accordingly, we pledge to you quality professional services at a reasonable cost We
exercised special care in selecting a management team to provide you with quality service, and
we have set our fee to reflect our desire to serve you
Our fees are included on the attached cost proposal form that was included in the RFP
The scope of services covered by this fee estimate includes all of those services defined in the
Request for Proposal and is based on accounting and auditing standards currently in existence
The quoted fees include an increase beginning in fiscal 2001 for additional audit procedures
required for additional reporting under GASB 34 Our estimated hours by staff level are
described in the Technical Proposal Our fees for additional accounting assistance or auditing
services, or other services which are clearly unrelated to our audit services (comfort letters,
operational reviews, arbitrage services, actuarial services, etc would be performed at a rate
mutually agreed upon by Deloitte & Touche and the City and would be quoted at the time the
scope for such services was determined However, based on our experience with the City, we
recognize that you do require certain additional work annually or when requested Our fees
each year for the TNRCC landfill letter would be $1,500 Should you require us to read a
bond offering official statement, our fees would be $3,500 plus an additional $1,500 if a
revenue bond certificate was also required
Please feel free to contact Terry Kile at (214) 777-7475 if you should need additional
information about any aspect of this proposal
We appreciate the opportunity to provide this proposal and look forward to working with you
Yours truly,
D44,,.66- e T.444.A, c i_ P
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Deloltte &
- Touche
V
Cost Proposal Form
Total Cost Summa
Year
Not-to-Exceed
Amount-Gross
Not-to-Exceed
Net of I/A Estimate
2000
48,000
2001
$ 62 50
1 55,400
2002
65 900
58,182
2000 Cost Prop
osal Detail
Hours Standard Hourly Rate
Billing Rate
Total
Partners
35 $ 575
$
165
$ 5,775
Managers
75 $ 350
$
120
$ 9,000
Supervisory Staff
285 $ 230
$
74
$ 21 , 090
Staff
355 $ 165
$
54
$ 19,135
Total hours/Personnel
750
$ 55,000
Other Expenses (Credits)
$
Total Not-to-Exceed Cost -
Gross
$ 55,000
Intemal Audit Hours- upaonal
Adjustment
$
$ (7,000)
Net Total with Internal Audit Adjustment
$ 48,000
Hours Standard Hourly Rate
I Managers
Supervisory Staff
hours/Personnel
Expenses (Credits)
40
$
575
80
$
350
300
$
230
375
$
165
795
Not-to-Exceed Cost- Gross
Audit Hours-Upaonal
Billing Rate
$ 125
$ 80
$ 59
Total
$ ~7Ta-
$ 10,000
$ 24,000
$ 22,000
g 62,750
62,750
(7,350)
Total with Internal Audit Adjustment
be negotiated on an annual basis This
200
Cost Pro
posal Detail
Hours
Standard Hourly Rate
Billing Rate
Total
Partners
40
$
575
$
175
$
7,000
Managers
80
$
350
$
130
$
10,400
Supervisory Staff
300
$
230
$
82
$
24,500
Staff
375
$
165
$
64
$
24,000
Total hours/Personnel
795
$
65,900
Other Expenses (Credits)
$
$
Total Not-to.Excesd Cost -
Gross
$
65 , 900
mtemai Awn noun. Gpo"
Adjustment
$
$
Net Total with Intemal Audit Adjustment
$
58.182