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HomeMy WebLinkAboutR-2010-080 Keefe McCullough Debt Financing Engagement Letter RESOLUTION NO. 2010-080 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING APPROPRIATE CITY OFFICIALS TO EXECUTE AN ENGAGEMENT LETTER WITH KEEFE, McCULLOUGH & CO., LLP FOR AN EXAMINATION OF THE CITY'S LEVEL OF DEBT FINANCING; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City requested Keefe, McCullough & Co., LLP to provide an engagement proposal to examine and report on the City's current and planned use of loan financing used to acquire, construct or both, capital projects and equipment; and WHEREAS, the Finance Department prepared a quotation request outlining the general intent of said examination; and WHEREAS, Keefe, McCullough & Co., LLP has submitted its proposal for consideration by the City Commission; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the above "Whereas' clauses are acknowledged as factual and correct. Section 2. That the City Commission of the City of Dania Beach engages Keefe, McCullough & Co., LLP to perform "agreed upon procedure" services as outlined in the attached Engagement Letter (identified and attached as Exhibit A). Section 3. That the City Commission authorizes and directs the appropriate City officials to take all steps necessary to execute the Engagement Letter for examination and reporting upon the City's use of loan financing with Keefe, McCullough & Co., LLP. Section 4. That all resolutions or parts of resolutions in conflict with any portion of the provisions in this Resolution are repealed to the extent of such conflict. Section 5. That this Resolution shall be in force and become effective immediately upon its passage and adoption. PASSED AND ADOPTED on May 25, 2010. (�kmk� Pao's F1 C. k. Y4cEYLEA 0�0� ryr` MAYOR-COMMISSIONER ATTEST: LOUISE STILSON, CMC CITY CLERK , �nCMAtEo ,� APPROVED JA TO F AND CORRECTNESS: THO AS S R CITY ATT70RNEY 2 RESOLUTION#2010-080 KEEFE, MCCULLOUGH&CO., LLP CERTIFIED PIUBLIC ACCOUNTANTS JOHN R.KEEFE,C.P.A. CYNTHIA L.CALVERT,C.P.A. 6550 NORTH FEDERAL HIGHWAY STEVEN H.WOODS,C.P.A. ISRAEL 1.GOMEZ,C PA. SUITE 410 DAVIDT.WILLIAMS,C.P.A. FAMES R.LARAWAY,C.P.A. JOSEPH D.LED,C.P.A. JOHN E.MCCULLOUGH,C.P.A.(RETIRED) FORT LAUDERDALE,FLORIDA 33308 WILLI"G.BENSON,C.P.A. THOMAS T.CARPENTER,C.P.A.(RETIRED) (954)771-0896 RENNETH G.SMITH,C.P.A. PAUL B.SNEmER,CRA.(RETIRED) LOUIS R.PROMM,C.P.A. BRIAN D.PINNELL,C.P.A.(RETIRED) FAX:(954)938-9353 ROSS S.GOTTHOFFER,C.P.A. E-MAIL:kmc@kmccpa.com May 10, 2010 Honorable Mayor, City Manager and Members of the City Commission City of Dania Beach, Florida 100 West Dania Beach Boulevard Dania Beach, FL 33004 Dear Mayor, City Manager and City Commission Members: We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the City of Dania Beach, Florida. We will apply the agreed-upon procedures, which City Commission and the administrative staff of the City of Dania Beach, Florida (the "City") has specified, as listed in the attached schedule to select financial records of the City, The purpose of the engagement will be to review and comment on the City's proposed funding for future capital improvement projects. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described in the attached schedule either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagement. Because the agreed-upon procedures listed in the attached schedule do not constitute an examination, we will not express an opinion on the financial statements of the City in connection with this engagement. In addition, we have no obligation to perform any procedures beyond those listed in the attached schedule. We will submit a report listing the procedures performed and our findings. This report is intended solely for the use of the City Commission, and should not be used by those who did not agree to the procedures and take responsibility for the sufficiency of the procedures for their purposes. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. City of Dania Beach, Florida -2- May 10, 2010 We plan to begin our procedures on June 1, 2010 and, unless unforeseeable problems are encountered, the engagement should be completed by July 31 , 2010. At the conclusion of our engagement, we will require a representation letter from administrative staff of the City regarding the information which was supplied in connection with this engagement. We estimate that our fees for these services will be approximately $ 5,000. The fee is based on anticipated cooperation from City personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee before we incur the additional costs. We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional services arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. Re rd , K E E, cCULLOUGH & CO., LLP Wil m G. Benson, C.P.A. Part er RESPONSE: This letter correctly sets forth the understanding of the City of Dania Beach, Florida. By: Approved as to form: Robert Baldwin Tom Ansbro Title: City Manager City Attorney Attest: Date: Louise Stilson City Clerk CITY OF DANIA BEACH, FLORIDA AGREED UPON PROCEDURES We will obtain a copy of the schedules of all current and planned capital projects that contemplate the use of debt financing for funding We will obtain a draft report prepared by City Finance staff which includes the basic ways that capital projects can be paid for: • Pay currently - accumulating and setting aside cash reserves from current annual budget appropriations to allow for cash payment of capital replacement and purchases when they are needed: • Loan or debt financing - theory and practice of matching costs of long-lived capital projects to annual payments that the project provides benefits to the public. • Combination - A combination of the above (for example, the use of accumulated impact fees and financing to pay for a project). We anticipate that the report regarding the City's planned use of debt financing will give broad consideration to the State's general economic climate, the City's annual cost increases associated with its operation and service, and the level of continuing annual revenue resources available to the City administrative staff. We will review the planned financing for each project and the City's current fund balance levels We will interview the Finance staff to determine the staff rationale regarding the proposed project funding We plan to issue a report which will provide either: 1 . confirmation and support of the Administration's present and planned future use of debt financing, 2. confirmation and possible areas for re-consideration or possible reduction in the planned use of debt financing in certain areas or projects, or 3. confirmation and concerns regarding planned use of future debt financing in certain areas or projects.