HomeMy WebLinkAbout2012 CON CDC HA Mayer Hoffman McCann - Amendment #1 Auditing Services, FY 11-12FIRST AMENDMENT TO AGREEMENT
BY AND BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTIIORITY
AND
MAYER HOFFMAN MCCANN, P.C.
This Amendment to Agreement is enter into this 15th day of May, 2012, by and between
the Community Development Commission — Housing Authority, a municipal corporation (the
'`Housing Authority"), and Mayer Hoffman McCann, P.C. (the "Contractor").
RECITALS
A. The Housing Authority and the Contractor (the "Parties") entered into an Agreement on
April 5, 2011, (the "Agreement") wherein the Contractor agreed to provide independent
auditing services for Fiscal Year 2010-2011 for the amount of $21,250.
B. The Parties desire to amend the Agreement to extend the term of the Agreement for one
year expiring June 30, 2013, to provide independent auditing services for Fiscal Year
2011-2012, as set forth in the attached Exhibit "A", in the total amount of $21,250.
NOW, THEREFORE, the Parties hereto agree that the Agreement entered into on April
5, 2011, shall be amended to extend the Agreement for a one-year term expiring on June 30,
2013, to provide independent auditing services for Fiscal Year 2011-2012, as set forth in the
attached Exhibit "A", in the amount of $21,250.
IN WITNESS WHEREOF, the parties hereto have executed this Fist Amendment to
Agreement on the date and year first above written.
COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY
By:
Ran Morrison, Cha
APPROVED AS TO FORM:
,t . is tua Silva
CDC G Counsel
MAYER HOFFMAN MCCANN, P.C.
(Corporation .signatures of two corporate 0fticen)
(Partnership one .signature)
(Sole proprietorship - one signature)
By:
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MAYER HOFFMAN McCANN P.C.
OUR HOURLY RATES AND MAXIMUM FEE
TO PERFORM THE 2012 AUDIT ENGAGEMENT
The following is a summary of our fixed fee (including out-of-pocket) expense for the audit and related
services for the City of National City, including Successor Agency to the Community
Development Commission as the National City Redevelopment Agency for the fiscal year ended
June 30, 2012.
1. City audit including Word Processing of
Comprehensive Annual Financial Report, GANN Limit Review
Procedures, and SAS #114 Communication $32,500
2. Citywide A-133 Single Audit of Federal Grants Considers testing
of 2 major programs, but excludes Section 8) 4,000
3. GANN Limit Review Procedures 800
4. Compilation of the Annual State Controllers report for the
City of National City 4.800
$42,100
The following is a summary of our fixed fee (including out-of-pocket) expense for the audit and related
services for the Community Development Commission — Housing Authority of the City of National City
for the fiscal year ended June 30, 2012.
1. Financial and Compliance Audit of the CDC
including Kimball Towers $8,000
2. Separate HUD Required A-133 Single Audit of
Morgan Towers 7,500
3. Commission A-133 Single Audit of Federal Grants
allocable to Housing Choice 4,500
4. REAC electronic Submission to HUD and related
attestations 1.250
$21,250
The hourly rates in effect for services that may be requested outside of the scope of the engagement
for the fiscal year ended June 30, 2012 are as follows:
Classification Rate
Shareholder $195
Engagement Manager 175
Senior Associates 135
Associates 115
The period of performance will be from May 1, 2012 through March 31, 2013.
RESOLUTION NO. 2012 — 5
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY OF
THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN
TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT
WITH MAYER HOFFMAN MCCANN, P.C., TO EXTEND
THE TERM OF THE AGREEMENT FOR ONE YEAR TO PROVIDE
INDEPENDENT AUDITING SERVICES FOR FISCAL YEAR 2011-2012
IN THE NOT TO EXCEED AMOUNT OF $21,250
WHEREAS, on April 5, 2011, the Community Development Commission of the
City of National City ("CDC") adopted Resolution 2011-89, entering into an Agreement with
Mayer Hoffman McCann, P.C., ("Mayer Hoffman") to provide independent auditing services for
FY 2010-20011 for the amount of $21,250; and
WHEREAS, the City and Mayer Hoffman desire to amend the Agreement to
extend the term for one year, expiring June 30, 2013, to provide independent auditing services
for Fiscal Year 2011-2012 for the total not to exceed amount of $21,250.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute the First Amendment to the
Agreement between the City of National City and Mayer Hoffman McCann, P.C., to extend
the Agreement for a one-year term expiring June 30, 2013, to provide independent
auditing services for Fiscal Year 2011-2012, in the not to exceed amount of $21,250. Said
First Amendment to the Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 15th day of May, 2.
on Morrison, Chairman
ATTEST:
I .1-
Leslie Deese, Secretary
PROV D AS TO FORM:
Iaudia G.':4ua Silva
General C'1 nsel
Passed and adopted by the Community Development Commission - Housing Authority
of the City of National City, California, on May 15, 2012 by the following vote, to -wit:
Ayes: Boardmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Chairman, Housing Authority
Secretary, Housing Authority
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2012-5 of the Community Development Commission - Housing
Authority of the City of National City, California, passed and adopted on May 15, 2012.
Secretary, Housing Authority
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
IEETING DATE: May 15, 2012
1-•1
AGENDA ITEM NO. 22
ITEM TITLE:
Resolution of the Community Development Commission Housing Authority authorizing the Chairman to execute the first
amendment to the agreement between the Community Development Commission Housing Authority and Mayer Hoffman
McCann P.C., for independent auditing services to include the Fiscal Year Ended June 30, 2012, in the amount of $21,250
PREPARED BY: Tina Norrdin, FSO DEPARTMENT
PHONE:
619-336-4331 APPROVE
EXPLANATION:
On April 5, 2011, following a competitive selection process, the Community Development CoCDC) entered into an
agreement with Mayer Hoffman McCann, P.0 (MHM), an independent auditing firm. Under the terms of the agreement, MHM
was retained to perform a comprehensive fiscal year end audit and prepare associated documents, related to the CDC's
housing element.
The purpose of this requested action is to authorize an extension of the agreement through June 30, 2013. The extension will
allow MHM to conduct and audit of the Housing Authority for the fiscal year ended June 30, 2012 and to assist staff with any
associated clean up necessitated by audit findings and/or efforts associated with the recent formation of the Community
Development Commission — Housing Authority of the City of National City attributable to State mandated dissolution of the
Community Development Commission (CDC) — Redevelopment (the housing element was a component of the former CDC).
iven the total duration of this agreement, including extensions, staff will initiate a competitive process by way of a Request for
roposals prior to the end of fiscal year 2013/13 for continued independent audit services, beginning with the auditing of fiscal
year ended June 30, 2013.
FINANCIAL STATEMENT:
ACCOUNT NO. 001-0211 = $15,500
562-445-462-201-0000 = $5,750.
Funds are budgeted in the total amount of $21,250
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
APPROVED:
APPROVED:
Finance
MIS
STAFF RECOMMENDATION:
Adopt the resolution
BOARD / COMMISSION RECOMMENDATION:
N/A
,TTACHMENTS:
1. CDC — Housing Authority Resolution
2. First Amendment to Agreement
3. MHM Agreement
RESOLUTION NO. 2012 —
RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY OF
THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN
TO EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT
WITH MAYER HOFFMAN MCCANN, P.C., TO EXTEND
THE TERM OF THE AGREEMENT FOR ONE YEAR TO PROVIDE
INDEPENDENT AUDITING SERVICES FOR FISCAL YEAR 2011-2012
IN THE NOT TO EXCEED AMOUNT OF $21,250
WHEREAS, on April 5, 2011, the Community Development Commission of the
City of National City ("CDC") adopted Resolution 2011-89, entering into an Agreement with
Mayer Hoffman McCann, P.C., ("Mayer Hoffman") to provide independent auditing services for
FY 2010-20011 for the amount of $21,250; and
WHEREAS, the City and Mayer Hoffman desire to amend the Agreement to
extend the term for one year, expiring June 30, 2013, to provide independent auditing services
for Fiscal Year 2011-2012 for the total not to exceed amount of $21,250.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute the First Amendment to the
Agreement between the City of National City and Mayer Hoffman McCann, P.C., to extend
the Agreement for a one-year term expiring June 30, 2013, to provide independent
auditing services for Fiscal Year 2011-2012, in the not to exceed amount of $21,250. Said
First Amendment to the Agreement is on file in the office of the City Clerk.
PASSED and ADOPTED this 15th day of May, 2012.
Ron Morrison, Chairman
ATTEST:
Leslie Deese, Secretary
APPROVED AS TO FORM:
Claudia Gacitua Silva
General Counsel
FIRST AMENDMENT TO AGREEMENT
BY AND BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY
AND
MAYER IIOFFMAN MCCANN, P.C.
This Amendment to Agreement is enter into this 15th day of May, 2012, by and between
the Community Development Commission — Housing Authority, a municipal corporation (the
"Housing Authority"), and Mayer Hoffinan McCann, P.C. (the "Contractor").
RECITALS
A. The Housing Authority and the Contractor (the "Parties") entered into an Agreement on
April 5, 2011, (the "Agreement") wherein the Contractor agreed to provide independent
auditing services for Fiscal Year 2010-2011 for the amount of $21,250.
B. The Parties desire to amend the Agreement to extend the term of the Agreement for one
year expiring June 30, 2013, to provide independent auditing services for Fiscal Year
2011-2012, as set forth in the attached Exhibit "A", in the total amount of $21,250.
NOW, THEREFORE, the Parties hereto agree that the Agreement entered into on April
5, 2011, shall be amended to extend the Agreement for a one-year term expiring on June 30,
2013, to provide independent auditing services for Fiscal Year 2011-2012, as set forth in the
attached Exhibit "A", in the amount of $21,250.
IN WITNESS WHEREOF, the parties hereto have executed this Fist Amendment to
Agreement on the date and year first above written.
COMMUNITY DEVELOPMENT
COMMISSION — HOUSING AUTHORITY
By:
Ron Morrison, Chairman
APPROVED AS TO FORM:
Claudia Gacitua Silva
CDC General Counsel
MAYER HOFFMAN MCCANN, P.C.
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AGREEMENT
BY AND BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
AND
MAYER HOFFMAN MCCANN P.C.
THIS AGREEMENT is entered into this 5th day of April, 2011, by and between
the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL Cfl'Y, a
municipal corporation (the "CDC"), and Mayer Hoffman McCann P.C., an Independent Auditing
Firm (the "CONTRACTOR").
RECITALS
WHEREAS, the CDC desires to employ a CONTRACTOR to provide
Independent Auditing Services.
WHEREAS, the CDC has determined that the CONTRACTOR is an Independent
Auditing Firm and is qualified by experience and ability to perform the services desired by the
CDC, and the CONTRACTOR is willing to perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR. The CDC hereby agrees to
engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services
hereinafter set forth in accordance with all terms and conditions contained herein.
The CONTRACTOR represents that all services required hereunder will be
performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR.
2. SCOPE OF SERVICES. The CONTRACTOR will perform services as
set forth in the attached Exhibit "A".
The CONTRACTOR shall be responsible for all research and reviews related to
the work and shall not rely on personnel of the CDC for such services, except as authorized in
advance by the CDC. The CONTRACTOR shall appear at meetings cited in Exhibit "A" to keep
staff and the CDC advised of the progress on the project.
The CDC may unilaterally, or upon request from the CONTRACTOR, from time to time
reduce or increase the Scope of Services to be performed by the CONTRACTOR under this
Agreement. Upon doing so, the CDC and the CONTRACTOR agree to meet in good faith and
confer for the purpose of negotiating a corresponding reduction or increase in the compensation
associated with said change in services, not to exceed a factor of 10% from the base amount.
3. PROJECT COORDINATION AND SUPERVISION.
Chris Zapata, Executive Director, hereby is designated as the Project Coordinator
for the CDC and will monitor the progress and execution of this Agreement. The
CONTRACTOR shall assign a single Project Director to provide supervision and have overall
responsibility for the progress and execution of this Agreement for the CONTRACTOR.
Matthew Lenton, Managing Director, thereby is designated as the Project Director for the
CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be based on monthly billings covering actual work performed. Billings
shall include labor classifications, respective rates, hours worked and also materials, if any. The
total cost for all work described in Exhibit "A"shall not exceed the schedule given in Exhibit "A"
without prior written authorization from the City Manager. Monthly invoices will be processed
for payment and remitted within thirty (30) days from receipt of invoice, provided that work is
'accomplished consistent with Exhibit "A"as determined by the CDC.
The CONTRACTOR shall maintain all books, documents, papers, employee time
sheets, accounting records, and other evidence pertaining to costs incurred and shall make such
materials available at its office at all reasonable times during the term of this Agreement and for
three (3) years from the date of final payment under this Agreement, for inspection by the CDC
and for furnishing of copies to the CDC, if requested.
5. ACCEPTABILITY OF WORK. The CDC shall decide any and all
questions which may arise as to the quality or acceptability of the services performed and the
manner of performance, the acceptable completion of this Agreement and the amount of
compensation due. In the event the CONTRACTOR and the CDC cannot agree to the quality or
acceptability of the work, the manner of performance and/or the compensation payable to the
CONTRACTOR in this Agreement, the CDC or the CONTRACTOR shall give to the other
written notice. Within ten (10) business days, the CONTRACTOR and the CDC shall each
prepare a report which supports their position and file the same with the other party. The CDC
shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of
performance and/or the compensation payable to the CONTRACTOR.
6. LENGTII OF AGREEMENT. Completion dates or time durations for
specific portions of the Project are set forth in Exhibit "A".
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The
Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by
the CONTRACTOR for this Project, whether paper or electronic, shall become the property of
the CDC for use with respect to this Project, and shall be turned over to the CDC upon
completion of the Project, or any phase thereof, as contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONTRACTOR hereby
assigns to the CDC and CONTRACTOR thereby expressly waives and disclaims, any copyright
in, and the right to reproduce, all written material, drawings, plans, specifications or other work
2
City's Standard Agreement— June 2008 revision
prepared under this agreement, except upon the CDC's prior authorization regarding
reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR
shall, upon request of the CDC, execute any further document(s) necessary to further effectuate
this waiver and disclaimer.
The CONTRACTOR agrees that the CDC may use, reuse, alter, reproduce,
modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's
written work product for the CDC's purposes, and the CONTRACTOR expressly waives and
disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to
intellectual property and artistic works.
Any modification or reuse by the CDC of documents, drawings or specifications
prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section
14 but only with respect to the effect of the modification or reuse by the CDC, or for any Liability
to the CDC should the documents be used by the CDC for some project other than what was
expressly agreed upon within the Scope of this project, unless otherwise mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the
performance of this Agreement will be acting in an independent capacity and not as agents,
employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the
CONTRACTOR's employees are employee of the CDC and are not entitled to any of the rights,
benefits, or privileges of the CDC's employees, including but not limited to retirement, medical,
unemployment, or workers' compensation insurance.
This Agreement contemplates the personal services of the CONTRACTOR and
the CONTRACTOR's employees, and it is recognized by the parties that a substantial
inducement to the CDC for entering into this Agreement was, and is, the professional reputation
and competence of the CONTRACTOR and its employees. Neither this Agreement nor any
interest herein may be assigned by the CONTRACTOR without the prior written consent of the
CDC. Nothing herein contained is intended to prevent the CONTRACTOR from employing or
hiring as many employees, or subCONTRACTORs, as the CONTRACTOR may deem necessary
for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR
with its subCONTRACTOR(s) shall require the subCONTRACTOR to adhere to the applicable
terms of this Agreement.
9. CONTROL. Neither the CDC nor its officers, agents or employees shall
have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR's
employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent
that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are in any
manner agents, servants or employees of the CDC, it being understood that the CONTRACTOR,
its agents, servants, and employees are as to the CDC wholly independent CONTRACTORs and
that the CONTRACTOR's obligations to the CDC are solely such as are prescribed by this
Agreement.
3
City's Standard Agreement — June 2008 revision
10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in
the performance of the services to be provided herein, shall comply with all applicable State and
Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City
of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each
of its subCONTRACTORs, shall obtain and maintain a current City of National City business
license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and
covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that
are legally required to practice its profession. The CONTRACTOR represents and covenants that
the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term
of this Agreement, any license, permit, or approval which is legally required for the
CONTRACTOR to practice its profession.
12. STANDARD OF CARE.
A. The CONTRACTOR, in performing any services under this
Agreement, shall perform in a manner consistent with that level of care and skill ordinarily
exercised by members of the CONTRACTOR'S trade or profession currently practicing under
similar conditions and in similar locations. The CONTRACTOR shall take all special
precautions necessary to protect the CONTRACTOR's employees and members of the public
from risk of harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this agreement, the
CONTRACTOR warrants to the CDC that it is not now, nor has it for the five (5) years
preceding, been debarred by a governmental agency or involved in debarment, arbitration or
litigation proceedings concerning the CONTRACTOR's professional performance or the
furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any unique
products, treatments, processes or materials whose availability is critical to the success of the
project the CONTRACTOR has been retained to perform, within the time requirements of the
CDC, or, when no time is specified, then within a commercially reasonable time. Accordingly,
unless the CONTRACTOR has notified the CDC otherwise, the CONTRACTOR warrants that
all products, materials, processes or treatments identified in the project documents prepared for
the CDC are reasonably commercially available. Any failure by the CON 1 RACTOR to use due
diligence under this sub -paragraph will render the CONTRACTOR liable to the CDC for any
increased costs that result from the CDC's later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time frame
specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall
not discriminate against any employee or applicant for employment because of age, race, color,
ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. The CONTRACTOR will take positive action to insure that applicants are
employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation,
marital status, national origin, physical handicap, or medical condition. Such action shall include
but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or
4
City's Standard Agreement —June 2008 revision
recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. The CONTRACTOR agrees to post in
conspicuous places available to employees and applicants for employment any notices provided
by the CDC setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATION. The CDC may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to he provided herein. The CONTRACTOR
shall treat all such information as confidential and shall not disclose any part thereof without the
prior written consent of the CDC. The CONTRACTOR shall limit the use and circulation of
such information, even within its own organization, to the extent necessary to perform the
services to be provided herein. The foregoing obligation of this Section 13, however, shall not
apply to any part of the information that (i) has been disclosed in publicly available sources of
information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly
available sources of information; (iii) is already in the possession of the CONTRACTOR without
any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the
CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has
been or is rightfully authorized by that third party.
The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CDC. In its performance hereunder, the
CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting
the information or other property of any other person, firm or corporation.
CONTRACTOR shall be liable to CDC for any damages caused by breach of this
condition, pursuant to the provisions of Section 14.
15. INDEMNIFICATION AND HOLD HARMLESS. The
CONTRACTOR agrees to defend, indemnify, and hold harmless the CDC, its officers and
employees, against and from any and all liability, loss, damages to property, injuries to, or death
of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable
attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims,
of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent
performance of this Agreement.
16. WORKERS' COMPENSATION. The CONTRACTOR shall comply
with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State
of California, the applicable provisions of Division 4 and 5 of the California Government Code
and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall
indemnify, and hold harmless the CDC and its officers, and employees from and against all
claims, demands, payments, suits, actions, proceedings and judgments of every nature and
description, including reasonable attorney's fees and defense costs presented, brought or
recovered against the CDC or its officers, employees, or volunteers, for or on account of any
5
City's Standard Agreement— June 2008 revision
liability under any of said acts which may be incurred by reason of any work to be performed by
the CONTRACTOR under this Agreement.
17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall
purchase and maintain, and shall require its subCONTRACTORs, when applicable, to purchase
and maintain throughout the term of this agreement, the following insurance policies:
A. If checked, Professional Liability Insurance (errors and omissions) with
minimum limits of $1,000,000 per occurrence.
B. Automobile insurance covering all bodily injury and property damage
incurred during the performance of this Agreement, with a minimum coverage of $1,000,000
combined single limit per accident. Such automobile insurance shall include owned, non -owned,
and hired vehicles ("any auto").
C. Coininercial general liability insurance, with minimum limits of
$1,000,000 per occurrence/$2,000,000 aggregate, covering all bodily injury and property damage
arising out of its operations under this Agreement.
D. Workers' compensation insurance in an amount sufficient to meet
statutory requirements covering all of CONTRACTOR'S/CONSULTANT'S [CHOOSE ONE]
employees and employers' liability insurance with limits of at least $1,000,000 per accident. In
addition, the policy shall be endorsed with a waiver of subrogation in favor of the CDC. Said
endorsement shall be provided prior to commencement of work under this Agreement.
If CON' RAC"1'OR has no employees subject to the California Workers'
Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said
Declaration shall be provided to CONTRACTOR by CDC.
E. The aforesaid policies shall constitute primary insurance as to the CDC, its
officers, employees, and volunteers, so that any other policies held by the CDC shall not
contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior
written notice to the CDC of cancellation or material change.
F. Said policies, except for the professional liability and workers'
compensation policies, shall name the CDC and its officers, agents and employees as additional
insureds, and separate additional insured endorsements shall be provided.
G. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years
after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date
must be on or before the date of this Agreement.
H. Any aggregate insurance limits must apply solely to this Agreement.
I. Insurance shall be written with only California admitted companies which
hold a current policy holder's alphabetic and financial size category rating of not less than A VIII
according to the current Best's Key Rating Guide, or a company equal financial stability that is
approved by the National City Risk Manager. In the event coverage is provided by non -admitted
"surplus lines" carriers, they must be included on the most recent California List of Eligible
Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements.
J. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with and approved by
the National City Risk Manager. If the CONTRACTOR does not keep all of such insurance
policies in full force and effect at all times during the terms of this Agreement, the CDC may
6
City's Standard Agreement — June 2008 revision
elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and
terminate the Agreement as provided herein.
K. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by the CDC.
18. LEGAL FEES. If any party brings a suit or action against the other party
arising from any breach of any of the covenants or agreements or any inaccuracies in any of the
representations and warranties on the part of the other party arising out of this Agreement, then in
that event, the prevailing party in such action or dispute, whether by final j udgment or out -of -
court settlement, shall be entitled to have and recover of and from the other party all costs and
expenses of suit, including attorneys' fees.
For purposes of determining who is to be considered the prevailing party, it is
stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not
be considered in determining the amount of the judgment or award. Attorney's fees to the
prevailing party if other than the CDC shall, in addition, be limited to the amount of attorney's
fees incurred by the CDC in its prosecution or defense of the action, irrespective of the actual
amount of attorney's fees incurred by the prevailing party.
19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to
this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the
dispute by mediation in San Diego, California, in accordance with the Commercial Mediation
Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The
costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of,
or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be
settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration
Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the
parties, and a judgment thereon may be entered in any court having jurisdiction over the subject
matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to
the arbitration, provided that each party shall pay for and bear the costs of its own experts,
evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part
thereof against a specified party as part of the arbitration award.
20. TERMINATION. A. This Agreement may be terminated with or without
cause by the CDC. Termination without cause shall be effective only upon 60-day's written
notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all
services in accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CDC for
cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance of
services, or the failure to perform services as directed by the CDC.
C. Termination with or without cause shall be effected by delivery of written
Notice of Termination to the CONTRACTOR as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda Reports,
Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR,
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City's Standard Agreement — June 2008 revision
whether paper or electronic, shall immediately become the property of and be delivered to the
CDC, and the CONTRACTOR shall be entitled to receive just and equitable compensation for
any work satisfactorily completed on such documents and other materials up to the effective date
of the Notice of Termination, not to exceed the amounts payable hereunder, and less any
damages caused the CDC by the CONTRACTOR's breach, if any. Thereafter, ownership of said
written material shall vest in the CDC all rights set forth in Section 6.
E. The CDC further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a
reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization, change in business name or change in business status of the CONTRACTOR.
21. NOTICES. All notices or other communications required or permitted
hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail
(Federal Express or the like); or sent by registered or certified mail, postage prepaid, return
receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or
delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the
earlier of (i) if personally delivered, the date of delivery to the address of the person to receive
such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight
mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if
the address is outside the State of California) after the date of deposit in a post office, mailbox,
mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if
given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or
(v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand,
direction or other communication delivered or sent as specified above shall be directed to the
following persons:
To CDC:
To CONTRACTOR:
Chris Zapata, CDC Executive Director
Community Development Commission
1243 National City Boulevard
National City, CA 91950-4301
Matthew Lepton
Managing Director
2301 Dupont Drive, Suite 200
Irvine, CA 92612
Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver because of
changed address of which no notice was given shall be deemed to constitute receipt of the notice,
demand, request or communication sent. Any notice, request, demand, direction or other
communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-
eight (48) hours by letter mailed or delivered as specified in this Section.
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City's Standard Agreement — June 2008 revision
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform
services of any kind for any person or entity whose interests conflict in any way with those of the
CDC. The CONTRACTOR also agrees not to specify any product, treatment, process or
material for the project in which the CONTRACTOR has a material financial interest, either
direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR shall at all
times comply with the terms of the Political Reform Act and the National City Conflict of
Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its
official position to influence in any way any matter coming before the CDC in which the
CONTRACTOR has a financial interest as defined in Government Code Section 87103. The
CONTRACTOR represents that it has no knowledge of any financial interests that would require
it to disqualify itself from any matter on which it might perform services for the CDC.
If checked, the CONTRACTOR shall comply with all of the reporting
requirements of the Political Reform Act and the National City Conflict of Interest Code.
Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City
Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall
obtain from the City Clerk.
The CONTRACTOR shall be strictly liable to the CDC for all damages, costs or
expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by the
CONTRACTOR.
23. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in
this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date
shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a
Saturday, Sunday or federal, state or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one and
the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are
hereby incorporated herein by this reference for all purposes.
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
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City's Standard Agreement - June 2008 revision
H. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
I. Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between the
parties as to the subject matter hereof. No subsequent agreement, representation, or promise
made by either party hereto, or by or to an employee, officer, agent or representative ofany party
hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
J. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the parties hereto.
K. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and
negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity
to consult with its own, independent counsel and such other professional advisors as such party
has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv)
each party and such party's counsel and advisors have reviewed this Agreement, (v) each party
has agreed to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or
any amendments hereto.
--- Signature Page to Follow ---
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City's Standard Agreement — June 2008 revision
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year
first above written.
COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF
NATIONAL CITY
By:
Ron Morrison, Chairman
APPROVED AS TO FORM:
audia G. ily
CDC Legal .� sel
11
MAYER HOFFMAN MCCANN P.C.
(Corporation- signatures of two corporate officers)
(Partnership - one signature)
(Sole proprietorship - one signature)
/14, `tom,) /�✓!/!lN
(Print)
r /o/'I
(Title)
(Name)
4(Y!'�Wt-z ,¢, /7Sq /t,Pa.. A/
(Print)
(Title)
City's Standard Agreement — June 2008 revision
Exhibit A
MAYER HOFFMAN McCANN P.C.
OUR HOURLY RATES AND MAXIMUM FEE
TO PERFORM THE 2010 AUDIT ENGAGEMENT
The following is a summary of our fixed fee (including out-of-pocket) expense for the audit and
related services for the Community Development Commission of the City of National City for the
fiscal year ended June 30, 2011.
1. Financial and Compliance Audit of the CDC
including Kimball Towers $8,000
2. Separate HUD Required A-133 Single Audit of
Morgan Towers 7,500
3. Commission A-133 Single Audit of Federal Grants
allocable to Housing Choice 4,500
4. REAC electronic Submission to HUD and related
attestations 1,250
$21.250
The hourly rates in effect for services that may be requested outside of the scope of the
engagement for the fiscal year ended June 30, 2011 are as follows:
Classification
Shareholder $195
Engagement Manager 175
Senior Associates 135
Associates 115
The period of performance will be from May 1, 2011 through March 31, 2012.
OFFICE OF THE CITY CLERK
1243 National City Blvd.
National City, California 91950
Michael R. DaIla, CMC - City Clerk
619-336-4228 phone / 619-336-4229 fax
June 4, 2012
Mr. Matthew Lenton
Mayer Hoffman McCann, P.C.
2301 Dupont Drive, Suite 200
Irvine, CA 92612
Dear Mr. Lenton,
On May 15th, 2012, Resolution No. 2012-5 was passed and adopted by the Community
Development Commission - Housing Authority of the City of National City, authorizing
execution of the First Amendment to an Agreement with Mayer Hoffman McCann, P.C.
We are enclosing for your records a certified copy of the above Resolution and a fully
executed copy of the Amendment.
Sincerely,
Michael R. Dalia, CMC
City Clerk
Enclosures
cc: Finance Dept.