Dubuque Initiatives Agreement for Staffing AssistanceMEMORANDUM
August 9, 2004
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Agreement for Professional Services Between City of Dubuque and
Dubuque Initiatives
The Economic Development Department has provided administrative staff to the nine -
member Dubuque Initiatives Board of Directors since its inception in 1980. Currently,
Dubuque Initiatives reimburses the City $12,000 per year for staff administrative
assistance which primarily consists of agenda preparation, minute -taking, research,
property management services and meeting attendance. No formal agreement is
currently in place regarding that arrangement.
The Dubuque Initiatives Board would like to have its basic accounting functions,
including monthly bill payment and financial statement preparation performed by the
City of Dubuque Finance Department for a fee of $100 per month.
Economic Development Director Bill Baum recommends City Council approval of a one
year Agreement for Professional Services to provide administrative and accounting
services to Dubuque Initiatives.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
//l.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
TO: Michael Van Milligen, City Manager
FROM: William Baum, Economic Development Director
August 9, 2004
SUBJECT: Agreement for Professional Services Between ity of Dubuque and
Dubuque Initiatives
INTRODUCTION
This memorandum presents for City Council consideration an agreement for
Professional Services that authorizes City staff to provide administrative and accounting
functions for Dubuque Initiatives, a private non-profit development corporation, on a
monthly fee basis.
BACKGROUND
The City of Dubuque has provided administrative staff to the nine member Dubuque
Initiatives Board of Directors since its inception in 1980 through the Economic
Development Department. Currently, Dubuque Initiatives reimburses the City $12,000
per year for staff administrative assistance which primarily consists of agenda
preparation, minute -taking, research, property management services and meeting
attendance. No formal agreement is currently in place regarding that arrangement. The
Board retains Dave Clemens as its legal counsel, and he also regularly attends monthly
Board meetings. Accounting has been handled internally by its designated Treasurer, a
position that since the Board's inception has been held by a local banker. Bill Callahan,
Vice -President of Commercial Lending with Dubuque Bank and Trust, currently holds
the combined Vice-President/Treasurer position.
DISCUSSION
The Board's latest independent audit, prepared by Honkamp Krueger, suggested that a
"segregation of duties" would be prudent for the organization because the
"concentration of duties and responsibilities given to a limited number of Organization
personnel is not ideal with respect to the internal control structure." Given that Callahan
is the only banker on the Board, the duties have fallen to him; this has caused some
additional concern should Callahan be elected President of the Board.
Given the auditor's comments, the Board has suggested that the accounting function of
Dubuque Initiatives be performed by City staff under an arrangement similar to that
provided by the City's Economic Development Department staff. The City's Finance
Department was asked if this was possible with their current work load. They have
proposed handling the Board's basic accounting, including monthly bill payment and
financial statement preparation for the fee of $100 per month. An agreement
formalizing the proposed Professional Services is attached.
RECOMMENDATION
I would recommend entering into the year-to-year Agreement for Professional Services
with Dubuque Initiatives to provide administrative and accounting functions. The City's
Corporation Counsel has reviewed the terms of the Agreement.
ACTION STEP
The action step for the City Council is to approve the attached Agreement for
Professional Services between the City and Dubuque Initiatives.
attachment
F:\USERS\Pmyhre\WPDOCS\Dubuque Initiatives\agreementmem.doc
AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN
CITY OF DUBUQUE, IOWA,
AND
DUBUQUE INITIATIVES
This Agreement made and entered into this day of , 2004
(Effective Date), between City of Dubuque (City), and Dubuque Initiatives.
WHEREAS, Dubuque Initiatives has requested City staffing services to provide
professional services for the administrative and accounting functions of the Dubuque
Initiatives; and
WHEREAS, City is willing to perform such professional services in accordance with
the terms of this Agreement.
NOW, THEREFORE, the parties mutually agree as set forth herein.
1. The City will provide professional staffing services to assist the Board of Directors of
Dubuque Initiatives in the ongoing administration and operation of Dubuque
Initiatives.
2. The City will provide accounting services to the Board of Directors of Dubuque
Initiatives to assist the Board of Directors in the administration and operation of
Dubuque Initiatives.
3. The City of Dubuque and Dubuque Initiatives shall annually agree on the
compensation to be provided to the City for the professional staffing services and
accounting services provided to Dubuque Initiatives.
4. The initial compensation until July 1, 2005, shall be $1,000 per month for
professional staffing services and $100 per month for accounting services.
5. This agreement shall be effective upon the execution and approval of both parties.
6. This agreement may be terminated by either party on July 1 of any year by providing
notice of termination by April 1 of said year.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
indicated below.
Dubuque Initiatives:
Signed
Title
Date
City-qf Dubuque
//,
Daniel E.
Phi chol son,
Mayor Pro—Tem
Attest:
eanne F. Schneider, City Clerk