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HomeMy WebLinkAbout5/21/2008 - STAFF REPORTS - 2.I. �pALM SA � R'y G+ U in A c'aL 7Fp R� CITY COUNCIL STAFF REPORT DATE: May 21, 2008 Consent Calendar SUBJECT: AMENDMENT TO AGREEMENT FOR AUDITING SERVICES — CONSENT TO ASSIGNMENT OF ORIGINAL CONTRACT DUE TO MERGER FROM: David H. Ready, City Manager BY: Department of Finance and Treasury SUMMARY The City entered into a contract for auditing services with Moreland & Associates, Inc. last year. On April 2, 2008, Moreland merged with Macias Gini & O'Connell LLP. Moreland is requesting the City's consent to the assignment of the contract to the new merged firm (see Moreland's 4/18/08 letter). RECOMMENDATION: Approve Amendment No. 1 to Agreement with Moreland and Associates assigning such contract to Macias Gini & O'Connell LLP. STAFF ANALYSIS: From the City's perspective, this is essentially the approval of a name change for the audit firm. The service will continue to be provided by the same office. FISCAL IMPACT: None. Geoffrey S. Kiehl, Director of Finance & Treasurer c David H. Ready, City M Item No. 2 e I e 1201 DOVE STREET SUITE 690 o>reland & J",rl NEWPCRTBEACH CALIFORNIA 92650 MCERTIFIED PUBLIC ACCOUNTANTS 570 RANCHL"ROS DRIVE SUITE 260 SAN MARCOS,CA 92069 TELEPHONE(049)221-002S April 18. 2008 Mr. Troy L_ Butzlaff Assistant City Manager City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92663 Dear Mr. Butzlaff: We are pleased to announce that effective April 2, 2008, we have joined forces with Macias Gini & O'Connell LLP (MGO). We believe this merger will be beneficial to our clients, employees and the communities we serve. You will continue to receive service from our (Newport BeacIVSan Marcos) office. Our mailing address will remain the same and only the name will change- We look forward to introducing you to the partners of MGO and invite you to visit our new website at www.meocpa.com. Please sign and return the attached Novation Agreement. If you have any questions regarding the transition, please don't hesitate to contact me. We are working hard to ensure this change is as seamless as possible. We look forward to continuing to serve you. Very truly yours, MORELAND & ASSOCIATES, INC. Michael C. Moreland, Partner Encl. KB: sr AMENDMENT TO AGREEMENT FOR AUDITING SERVICES This Amendment to .Agreement for Auditing Services (this "Amendment") is entered into on this 21"day of May, 2008, by and between the City of Palm Springs, a California municipal corporation (the "C "), on the one hand, and Moreland & Associates Accountancy Corporation, a California corporation ("Contractor"), and Macias Grin & O'Connell LLP, a California limited liability partnership and the assignee of Contractor ("Assignee Contractor"), on the other hand, with regard to the following: RECITALS: WHEREAS, on or about the 11th day of July, 2007, the City entered into an Agreement for Auditing Services (the "Original Contract")with Contractor for independent auditing services to the City; WHEREAS, Contractor has transferred certain assets to Assignee Contractor pursuant to an Asset Purchase Agreement dated as of March 26, 2008 (the "Purchase Agreement"), and in connection therewith has agreed to assign the Original Contract to Assignee Contractor; WHEREAS, Contractor seeks to assign its rights under the Original Contract to Assignee Contractor effective as of April 2, 2008 (the "Effective Date"), and Assignee Contractor desires to accept assignment of such rights under the Original Contract and assume all of Contractor's rights and obligations under the Original Contract as of the Effective Date, on the temps set forth herein and in the Purchase Agreement; and WHEREAS, the City desires to consent to the assignment of the Original Contract to Assignee Contractor and the assumption by Assignee Contractor of the obligations thereunder from and after the Effective Date. NOW, THEREFORE., it is mutually agreed upon by and between the undersigned parties as follows: SECTION 1. RECITALS. The foregoing recitals are incorporated herein by reference as terms of this Amendment. SECTION 2. CONSENT TO ASSIGNMENT. The City hereby approves the assignment of the Original Contract from Contractor to Assignee Contractor, effective as of the Effective Date. SECTION 3. ASSUMPTION OF OBLIGATIONS. From and after the Effective Date, Assignee Contractor shall have all of Contractor's rights and assume all of Contractor's obligations under the Original Contract. Accordingly, all references to "Moreland & Associates" in the Original Contract, including the exhibits thereto, are hereby replaced with, and superseded by, "Macias Oini & O'Connell LLP". SECTION 4. FULL FORCE AND EFFECT. Except as expressly modified herein, all other terms and conditions of the Original Contract shall be and remain in full force and effect. - l - 000W IN WITNESS WHEREOF. the parties have caused this Amendment to be executed by their respective duly authorized representatives on the day and year first written above. CONTRACTOR: CITY. MORELAND& ASSOCIATES CITY OF PALM SPRINGS, ACCOUNTANCY CORPORATION a California municipal corporation By: UfC� By: Aich�aelC. oreland Name: President Title: ASSIGNEE CONTRACTOR: ATTEST: MACIAS GINI & O•CONNELL LLP � t By. Name: By Title: Kevin J. O'Connell Managing Partner