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8 6 12 POS Manager and Staff MemosMasterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2013 Purchase of Service Agreements DATE: July 12, 2012 Dubuque bierd All- America City 1 2007 At the June 18, 2012 City Council meeting, direction was given to City staff that the purchase of service agreement language should be standardized, including reporting requirements for those that receive larger amounts of City funds. All Fiscal Year 2013 Purchase of Service Agreements have been reviewed and in most cases the language has been standardized between agreements, depending on the level of funding and the funding source. The agencies receiving Community Development Block Grant funds, the multi -year agreement with the Dubuque Humane Society and the art grants are all special circumstances that have not had major changes with this recommendation. Agencies that receive less than $500,000 in City funding had language changes that included the addition of a reporting and monitoring section which requires monthly written reports detailing the agency's activities related to the use of City funds to be submitted to the City Manager. Also required is the submittal of an annual report to the City Council which shall include a performance report on the program supported by City funds and a financial report on the use of City funds. If the agency has an annual audit performed, the agency shall provide the City a copy of the annual audit report. An audit and evaluation section was also added which requires agencies to maintain their financial records in accordance with Generally Accepted Accounting Standards together with the necessary documentation to support all expenditures. All financial documentation shall be retained for not less than three years. The financial records of funded agencies shall be made available for inspection by the City or any Certified Public Accountant acting on behalf of the City in order to ascertain performance of the agencies. All purchase of service agreements had the termination of agreement section revised. The City must notify the agency not less than thirty days in writing prior to a termination to the agreement instead of within five days of the termination. In addition, language was added that if the agency shall fail to cure its default to the satisfaction of the City within the thirty day period, the agreement is deemed terminated at the end of the thirty day period without further action from either party. Upon termination of the agreement, the agency shall return to City all unexpended funds and /or any funds utilized for purposes other than stated in the agreement. Agencies that receive more than $500,000 in City funding, which include Greater Dubuque Development Corporation and the Dubuque Area Chamber of Commerce, had language changes to make the agreements similar. The Dubuque Area Chamber of Commerce agreement had an addition to the audit and evaluation section (section 4) to include that the records of the agency, including payroll accounts and other records of disbursements and receipts, and other records relating to the performance of the activities specified, shall be made available for inspection by the City or any Certified Public Accountant acting on its behalf, in order to ascertain performance of agency and for agency to retain such records for not less than three years. All reporting requirements were moved from the scope of services section (section 1) to the reporting and monitoring section (section 5). The Chamber is required to provide written progress reports and financial statements monthly to the City Manager. The monthly reports are to include a progress report on the Convention and Visitors Bureau as well as a report on the breakdown of expenditures of the Convention and Visitor's Bureau. The Dubuque Area Chamber of Commerce agreement requires that copies of minutes of all meetings of the Convention and Visitors Bureau Division shall be filed with the City Clerk within ten days after such meeting. This requirement is not included in the Chamber's by -laws; however it has always been included as a requirement in the purchase of service agreement. Both agreements for the Dubuque Area Chamber of Commerce and Greater Dubuque Development had the requirement to provide the City with their annual audit report added to the reporting and monitoring section, which is currently being provided even though it has not been a requirement in the purchase of service agreement. The Chamber's audit report is also to include a supplemental report of the Convention and Visitors Bureau revenues and expenses which is necessary because the Dubuque Area Chamber of Commerce includes more services than just the Convention and Visitors Bureau, which is the service that the City purchases. The Greater Dubuque Development Corporation agreement was changed to be in the same order as the Dubuque Area Chamber of Commerce agreement. In addition, sections that were not needed were removed which included the amendments and changes and compliance with local laws sections. The reporting and monitoring section (section 5) was changed to quarterly reporting to City Council rather than semi - annual reporting. The requirement of monthly written progress reports submitted to the City Manager was expanded to include financial statements and the breakdown of expenditures. There is no requirement for City board representation in the purchase of service agreement for Greater Dubuque Development Corporation or the Dubuque Area 2 Chamber of Commerce; however, the by -laws of Greater Dubuque Development in Section VI (Board of Directors) require that the Mayor, the City Manager, the Economic Development Director and two members of the City Council serve on the board of directors. In addition, Article VII, (Executive Committee and Officers), requires that the Mayor and City Manager serve on the Executive Committee. Article V, Section I of the Dubuque Area Chamber of Commerce by -laws requires that no less than one member of the City Council shall be appointed to the Convention and Visitor's Bureau Division, as does the Purchase of Service Agreement. I believe the Mayor also serves on the Chamber Board. After revisions, the major differences between the purchase of service agreements of the Dubuque Chamber of Commerce and Greater Dubuque Development Corporation are that the Chamber agreement requires a breakdown of Convention and Visitors Bureau financials for both the monthly written reports and the annual audit report due to the Chamber of Commerce including more than just Convention and Visitors Bureau Services and the requirement for the submittal of monthly minutes to the City Clerk for Convention and Visitors Bureau meetings. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Jennifer Larson, Budget Director 3 Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Budget Director SUBJECT: Fiscal Year 2013 Purchase of Service Agreements DATE: July 6, 2012 INTRODUCTION Dubuque bitil All-America City 'I'll®, 2007 The purpose of this memorandum is to recommend approval of the Fiscal Year 2013 purchase of service agreements. DISCUSSION At the June 18, 2012 City Council meeting, direction was given to City staff that the purchase of service agreement language should be standardized including reporting requirements for those that receive larger amounts of City funds. All Fiscal Year 2013 Purchase of Service Agreements have been reviewed and in most cases the language has been standardized between agreements, depending on the level of funding and the funding source. There are agencies that are funded with Community Development Block (CDBG) funds which have specific requirements for the corresponding subrecipient agreements. These CDBG funded agencies did not have any revisions to their purchase of service agreements. These agencies include Hills and Dales Senior Center, Washington Tool Library, Project Concern: Information and Referral, Opening Doors, Iowa State University Extension, Four Mounds Foundation Day Camp Program and Northeast Iowa School of Music. The Dubuque Humane Society purchase of service agreement was approved January 20, 2009 with a term of July 1, 2009 through June 30, 2014. This agreement will be reviewed for language changes prior to the new agreement being recommended. The current language included is specific to animal control activities including shelter and equipment, annual fee, daily fee, releasing impounded animal, reports, special accommodations, hours of service, animal care, disposal of impounded animals, display of impounded animals, display of licensing, inspection of shelter, insurance, termination and compliance with laws. There are agencies that receive art grants. The language in the art grant agreements were not modified except for moving the reporting requirements from the programming section to a separate section on reporting and monitoring. These art grant agreements deal specifically with grants which have different requirements than the purchase of service agreements. Agencies that receive less than $500,000 in City funding had language changes that included the addition of a reporting and monitoring section which requires monthly written reports detailing the agency's activities related to the use of City funds to be submitted to the City Manager. Also required is the submittal of an annual report to the City Council which shall include a performance report on the program supported by City funds and a financial report on the use of City funds. If the agency has an annual audit performed, the agency shall provide the City a copy of the annual audit report. An audit and evaluation section was also added which requires agencies to maintain their financial records in accordance with Generally Accepted Accounting Standards together with the necessary documentation to support all expenditures. All financial documentation shall be retained for not less than three years. The financial records of funded agencies shall be made available for inspection by the City or any Certified Public Accountant acting on behalf of the City in order to ascertain performance of the agencies. All purchase of service agreements had the termination of agreement section revised. The City must notify the agency not less than thirty days in writing prior to a termination to the agreement instead of within five days of the termination. In addition, language was added that if the agency shall fail to cure its default to the satisfaction of the City within the thirty day period, the agreement is deemed terminated at the end of the thirty day period without further action from either party. Upon termination of the agreement, the agency shall return to City all unexpended funds and /or any funds utilized for purposes other than stated in the agreement. Agencies that receive more than $500,000 in City funding, which include Greater Dubuque Development Corporation and the Dubuque Area Chamber of Commerce, had language changes to make the agreements similar. The Dubuque Chamber of Commerce agreement had an addition to the audit and evaluation section (section 4) to include that the records of the agency, including payroll accounts and other records of disbursements and receipts, and other records relating to the performance of the activities specified, shall be made available for inspection by the City or any Certified Public Accountant acting on its behalf, in order to ascertain performance of agency and for agency to retain such records for not less than three years. All reporting requirements were moved from the scope of services section (section 1) to the reporting and monitoring section (section 5). The Chamber is required to provide written progress reports and financial statements monthly to the City Manager. The monthly reports are to include a progress report on the Convention and Visitors Bureau as well as a report on the breakdown of expenditures of the Convention and Visitor's Bureau. To assist in coordinating activities of the Convention and Visitors Bureau Division with the City, not less than one member of the Dubuque City Council shall be appointed to the Convention and Visitors Bureau Division. In addition, the purchase of service agreement requires that copies of minutes of all meetings of the Convention and Visitors Bureau Division shall be filed with the City Clerk within ten days after such meeting. This requirement is not included in the Chamber's by -laws; however it has always been included as a requirement in 2 the purchase of service agreement. Both agreements for the Dubuque Area Chamber of Commerce and Greater Dubuque Development had the requirement to provide the City with their annual audit report added to the reporting and monitoring section, which is currently being provided even though it has not been a requirement in the purchase of service agreement. The Chamber's audit report is also to include a supplemental report of the Convention and Visitors Bureau revenues and expenses which is necessary because the Dubuque Area Chamber of Commerce includes more services than just the Convention and Visitors Bureau, which is the service that the City purchases. The Greater Dubuque Development Corporation agreement was changed to be in the same order as the Dubuque Area Chamber of Commerce agreement. In addition, sections that were not needed were removed which included the amendments and changes and compliance with local laws sections. The reporting and monitoring section (section 5) was changed to quarterly reporting to City Council rather than semi - annual reporting. The requirement of monthly written progress reports submitted to the City Manager was expanded to include financial statements and the breakdown of expenditures. There is no requirement for City board representation in the purchase of service agreement for Greater Dubuque Development Corporation or the Dubuque Area Chamber of Commerce; however, the by -laws of Greater Dubuque Development in Section VI (Board of Directors) require that the Mayor, the City Manager, the Economic Development Director and two members of the City Council serve on the board of directors. In addition, Article VII, (Executive Committee and Officers), requires that the Mayor and City Manager serve on the Executive Committee. Article V Section 1 of the Dubuque Area Chamber of Commerce by- laws requires that not less than one member of the City Council shall be appointed to the Convention and Visitors Bureau Division, as does the Purchase of Service Agreement. After revisions, the major differences between the purchase of service agreements of the Dubuque Chamber of Commerce and Greater Dubuque Development Corporation are that the Chamber agreement requires a breakdown of Convention and Visitors Bureau financials for both the monthly written reports and the annual audit report due to the Chamber of Commerce including more than just Convention and Visitors Bureau Services and the requirement for the submittal of monthly minutes to the City Clerk for Convention and Visitors Bureau meetings (attachment I). RECOMMENDATION I respectfully recommend the approval of the Fiscal Year 2013 purchase of service agreements as revised. Attachments 3 Attachment I Comparison of GDDC & Chamber Purchase of Service Agreements Section Scope of Services Time of Performance Compensation Audit & Evaluation Reporting & Monitoring Discrimination Interest of Members, Officers, or Employees of the City of Dubuque City Council; or Other Public Officials Termination of Agreement Assignability Insurance 4 Difference Tailored to Organization Same Tailored to Organization Same Breakout of CVB expense in written reports &audit report; Council member to serve on Board of Directors; copies of CVB filed with City Clerk Same Same Same Same Same monthly One City Chamber minutes of