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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 \\cn WL\V0LNh.W141A Wwn...mmu~convuu~omn.ma~e s.ry~.aco~v..vaoc 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 P 4LUwWq~t\LGUOUr Dmmmv~COOUCUwODUa~Yng 9wlue fnnvum tloc 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 \\CH WLWOUWVetlWryN LWUr OaevmmbMno4acY\OO~AUNUng Smm ConvWm 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 \TH LGL\VOLIWUeOWry14ALWOr OOmmmu\COnvxu\OODUNIingSm~en COn4ml doe 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 \TH LOL\VOLIWud MtN LWur NeummY\COnvYA\O udiuug SmvmmCntmtdoc 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 \\CH LGL~VOLIWUrWWepPWL\OurPowmmMConuxMWUUNUnggwims 000uY1 do[ 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 \TH LGL\VOLIbIiutQNepNALWUr DUwmmY\COOVCY\W\AUdtung Se =CWWd 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 \TH WUVOLNM1nrMWWp Worn ummmconv.tsw uamn$ SOVIumCRWWJOu 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 \\CH WUVOLIWw qN LWrWwMm\mnuON\O H&Iue ScNJmC 00tr 00 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 ncx LGUVOL~4M1UOTEeptUALwur oacummu~cunuecuwa~numunesmica ano-waoc 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 kkCH WUVOLIWVaEW,VWMue UOCUmmtncanvu19 o 0Yne Saicn CanvenAOc 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 \\ex WUVOUVeare&WWp WLWm DooooimMCOnv~ udlenq Smxes Qo~ doe 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 i , L .t l c r e i i eta t - 7 1] s a ASt r, t j /tt~ s h r a_ 9 _ s r ` ~2 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 -2- 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