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HomeMy WebLinkAboutCONRAD & ASSOCIATES, LLP. - 1998-01-16PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AND CONRAD & ASSOCIATES, L.L.P, FOR AUDITING SERVICES THIS AGREEMENT, made and entered into this 1 Wo day of 199 % by and between the City of Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as the "REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH", and CONRAD & ASSOCIATES, a California general partnership, hereinafter referred to as "CONSULTANT." WHEREAS, AGENCY desires to engage the services of a consultant to perform auditing services in the City of Huntington Beach; and Pursuant to documentation on file in the office of the City Clerk of the City of Huntington Beach, the provisions of HBMC Chapter 3.03 relating to procurement of professional service contracts has been complied with; and CONSULTANT has been selected to perform said services, NOW, THEREFORE, it is agreed by AGENCY and CONSULTANT as follows: WORK STATEMENT CONSULTANT shall provide all services as described in the Request for Proposal, and CONSULTANT's proposal dated August 5, 2997, (hereinafter referred to as Exhibit "A"), which is attached hereto and incorporated into this Agreement by this reference. Said services shall sometimes hereinafter be referred to as "PROJECT." CONSULTANT hereby designates Michael A. Harrison, who shall represent it and be its sole contact and agent in all consultations with AGENCY during the performance of this Agreement. 7/k/g:/agree/conradl /12/17/97 2. AGENCY STAFF ASSISTANCE AGENCY shall assign a staff coordinator to work directly with CONSULTANT in the performance of this Agreement. 3. TIME OF PERFORMANCE Time is of the essence of this Agreement. The services of the CONSULTANT are to commence as soon as practicable after the execution of this Agreement and all tasks specified in Exhibit "A" shall be completed no later than ninety (90) days from the date of this Agreement. These times may be extended with the written permission of the AGENCY. The time for performance of the tasks identified in Exhibit "A" are generally to be shown in the Scope of Services on the Work Program/Project Schedule. This schedule may be amended to benefit the PROJECT if mutually agreed by the AGENCY and CONSULTANT. 4. COMPENSATION In consideration of the performance of the services described herein, AGENCY agrees to pay CONSULTANT a fee not to exceed Three Thousand Eight Hundred Dollars ($3, 800). 5. EXTRA WORK In the event AGENCY requires additional services not included in Exhibit "A," or changes in the scope of services described in Exhibit "A," CONSULTANT will undertake such work after receiving written authorization from AGENCY. Additional compensation for such extra work shall be allowed only if the prior written approval of AGENCY is obtained. 6. METHOD OF PAYMENT A. CONSULTANT shall be entitled to progress payments toward the fixed fee set forth herein in accordance with the progress and payment schedules set forth in Exhibit "A". 2 7/k/g:/agree/conradl /12/17/97 B. Delivery of work product: A copy of every technical memo and report prepared by CONSULTANT shall be submitted to the AGENCY to demonstrate progress toward completion of tasks. In the event AGENCY rejects or has comments on any such product, AGENCY shall identify specific requirements for satisfactory completion. Any such product which has not been formally accepted or rejected by AGENCY shall be deemed accepted. C. The CONSULTANT shall submit to the AGENCY an invoice for each progress payment due. Such invoice shall: 1) Reference this Agreement; 2) Describe the services performed; 3) Show the total amount of the payment due; 4) Include a certification by a principal member of the CONSULTANT's firm that the work has been performed in accordance with the provisions of this Agreement; and completed. 5) For all payments include an estimate of the percentage of work Upon submission of any such invoice, if AGENCY is satisfied that CONSULTANT is making satisfactory progress toward completion of tasks in accordance with this Agreement, AGENCY shall promptly approve the invoice, in which event payment shall be made within thirty (30) days of receipt of the invoice by AGENCY. Such approval shall not be unreasonably withheld. If the AGENCY does not approve an invoice, AGENCY shall notify CONSULTANT in writing of the reasons for non -approval, within seven (7) calendar days of receipt of the invoice, and the schedule of performance set forth in Exhibit "A" shall be suspended until the parties agree that past performance by CONSULTANT is in, or has been brought into compliance, or until this Agreement is terminated as provided herein. 3 7/k/glagree/conradl /12/17/97 V V D. Any billings for extra worts or additional services authorized by AGENCY shall be invoiced separately to the AGENCY . Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by AGENCY if the work performed is in accordance with the extra work or additional services requested, and if AGENCY is satisfied that the statement of hours worked and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 7. DISPOSITION OF PLANS, ESTIMATES AND OTHER DOCUMENTS CONSULTANT agrees that all materials prepared hereunder, including all original drawings, designs, reports, both field and office notices, calculations, maps and other documents, shall be turned over to AGENCY upon termination of this Agreement or upon PROJECT completion, whichever shalt occur first. In the event this Agreement is terminated, said materials may be used by AGENCY in the completion of PROJECT or as it otherwise sees fit. Title to said materials shall pass to the AGENCY upon payment of fees determined to be earned by CONSULTANT to the point of termination or completion of the PROJECT, whichever is applicable. CONSULTANT shall be entitled to retain copies of all data prepared hereunder. S. INDEMNIFICATION AND HOLD HARMLESS CONSULTANT shall protect, defend, indemnify and hold harmless AGENCY, its officers, officials, employees and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation costs and fees of litigation of every nature) arising out of or in connection with the performance of this agreement or its failure to comply with any 4 7/k/glogree/corwadl /12/17/97 C� U of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the AGENCY. 9. WORKERS COMPENSATION CONSULTANT 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 Califomia Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless AGENCY from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney fees and costs presented, brought or recovered against AGENCY, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by CONSULTANT under this Agreement. 10. PROFESSIONAL LIABILITY INSURANCE CONSULTANT shaft furnish a professional liability insurance policy covering the work performed by it hereunder. Said policy shall provide coverage for CONSULTANT's professional liability in an amount not less than $1,000,000 per occurrence and in the aggregate. A claims made policy shall be acceptable if the policy further provdes that: 1. The policy retroactive date coincides with or precedes the professional services contractor's start of work (including subsequent policies purchased as renewals or replacements). 2. CONSULTANT will make every effort to maintain similar insurance during the required extended period of coverage following project completion, including the requirement of adding all additional insureds. 5 7/k/g./ogres/conrodl /12/ 17/97 U 3. If insurance is terminated for any reason, CONSULTANT agrees to purchase an extended reporting provision of at feast two (2) years to report claims arising from work performed in connection with this Agreement. 4. The reporting of circumstances or incidents that might give rise to Future claims. 11. CERTIFICATES OF INSURANCE. Prior to commencing performance of the work hereunder, CONSULTANT shall furnish to AGENCY certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverages as required by this Agreement; said certificates shall: a. provide the name and policy number of each carrier and policy; b. shall state that the policy is currently in force; and C. shall promise that such policies shall not be suspended, voided or canceled by either party, reduced in coverage or in limits except after thirty days prior written notice; however, ten days prior written notice in the event of cancellation for nonpayment of premium. CONSULTANT shall maintain the foregoing insurance coverages in force until the work under this Agreement is fully completed and accepted by AGENCY. The requirement for carrying the foregoing insurance coverages shall not derogate from the provisions for indemnification of AGENCY by CONSULTANT under the Agreement. AGENCY or its representative shall at afl times have the right to demand the original or a copy of all said policies of insurance. CONSULTANT shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required. 12. INDEPENDENT CONTRACTOR CONSULTANT is, and shall be, acting at all times in the performance of this Agreement as an independent contractor. CONSULTANT shall secure at its expense, and be responsible for any and all payment of all taxes, social security, state disability insurance 6 7/k/g:/agree/corxad 1 /12/17/97 lJ compensation, unemployment compensation and other payroll deductions for CONSULTANT and its officers, agents and employees and all business licenses, if any, in connection with the services to be performed hereunder. 13. TERMINATION OF AGREEMENT All work required hereunder shall be performed in a good and workmanlike manner. AGENCY may terminate CONSULTANTS services hereunder at any time with or without cause, and whether or not PROJECT is fully complete. Any termination of this Agreement by AGENCY shall be made in writing, notice of which shall be delivered to CONSULTANT as provided herein. 14. ASSIGNMENT AND SUBCONTRACTING This Agreement is a personal service contract and the supervisory work hereunder shall not be delegated by CONSULTANT to any other person or entity without the consent of AGENCY. 15. COPYRIGHTS/PATENTS AGENCY shall own all rights to any patent or copyright on any work, item or material produced as a result of this Agreement. 16. AGENCY EMPLOYEES AND OFFICIALS CONSULTANT shall employ no AGENCY official nor any regular AGENCY employee in the work performed pursuant to this Agreement. No officer or employee of AGENCY shall have any financial interest in this Agreement in violation of the applicable provisions of the Cafifomia Govemment Code. 17. NOTICES Any notice or special instructions required to be given in writing under this Agreement shall be given either by personal delivery to CONSULTANTs agent (as designated in Section 1 hereinabove) or to AGENCY's Director of Economic Development as the situation 7 7/k/g/agree/corradl /I V17/97 U ki shall warrant, or by enclosing the same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal Service, addressed as follows: TO AGENCY : David Biggs, Director of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 18. IMMIGRATION TO CONSULTANT: Michael A. Harrison, C.P.A. Conrad & Associates, L.L.P. 1100 Main Street, Suite C Irvine, CA 92614 CONSULTANT shall be responsible for full compliance with the immigration and naturalization laws of the United States and shall, in particular, comply with the provisions of the United States Code regarding employment verification. 19. LEGAL SERVICES SUBCONTRACTING PROHIBITED CONSULTANT and AGENCY agree that AGENCY is not liable for payment of any subcontractor work involving legal services, and that such legal services are expressly outside the scope of services contemplated hereunder. CONSULTANT understands that pursuant to Huntington Beach City Charter Section 309, the City Attorney is the exclusive legal counsel for AGENCY; and AGENCY shall not be liable for payment of any legal services expenses incurred by CONSULTANT. 20. ATTORNEYS FEES In the event suit is brought by either party to enforce the terns and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 8 7/k/Vogree/corYadl /12117/97 V 21. ENTIRETY The foregoing, and Exhibit "A": attached hereto, set forth the entire Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. CONRAD & ASSOCIATES, L.L.P.: I tic-� By: '4 'V.'. — Michael A. Harrison, C.P.A., General Partner REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ecutive Director APP VED AS TO FORM: ��141 City Attomey ,L �(}-q� INITIATED AND APPROVED: ?� �hvd C-1 Director of Econo is Development 0 7/k/Q:/apree/corXadl /12/17197 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 PROFESSIONAL SERVICES CONTRACT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AND CONRAD & ASSOCIATES, L.L.P, FOR AUDITING SERVICES Table of Contents WorkStatement....................................................................................................1 AgencyStaff Assistance........................................................................................2 Time of Performance.............................................................................................2 Compensation.......................................................................................................4 ExtraWork...........................................................................................................2 Methodof Payment...............................................................................................2 Disposition of Plans, Estimates and Other Documents...........................................4 Indemnification and Hold Harmless.......................................................................4 Workers' Compensation.........................................................................................5 Insurance............................................................................................................... 5 Certificates of Insurance.......................................................................................6 Independent Contractor........................................................................................7 Termination of Agreement....................................................................................7 Assignment and Subcontracting............................................................................7 Copyrights/Patents...............................................................................................7 Agency Employees and Officials...........................................................................8 Notices................................................................................................................. 7 Immigration.......................................................................................................... 8 Legal Services Subcontracting Prohibited.............................................................8 AttorneyFees.......................................................................................................9 Entirety................................................................................................................9 7/k/glagree/conrad/ 12/ 17/97 U ATTACHMENT A L 1JSOCI TES, L.L.P. A /MRTN[11/NIP IMCLYDINO PROP9/f1OMAL CORPORATIONS August 5, 1997 Greg Brown Development Specialist Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Mr. Brown: CERTIFIED PUBLIC ACCOUNTANTS 1 100 MAIN STREET, SUITE C IRVINE, CALIFORNIA 92614 (714) 474-2020 At your request, Conrad & Associates, L.L.P. would perform certain agreed -upon procedures with respect to an Owner Participation Agreement between the Huntington Beach Redevelopment Agency and the owner of the project (commonly referred to as Jack's Surf Shop). The engagement of agreed -upon procedures will be performed in accordance with standards established by the American Institute of Certified Public Accountants. We will not make any representations as to the sufficiency of the procedures described. We understand that the procedures we would perform are intended for the information of the Agency, City management and City Council. Based upon our conversations, the procedures we would perform would be as follows: 1. We would obtain and review the financial and rent portions of the Owner Participation Agreement. 2. For the years ended December 31, 1996 and 1997, we would obtain the actual rent roll and the leases in force for the years and determine gross rents. We would compare gross rents calculated to gross rents reported to the Agency. We would also verify the calculation of the rent subsidy paid by the Agency to the owner under the Owner Participation Agreement. 3. We would determine common area maintenance charges from a review of common area expenses incurred for the years ended December 31, 1996 and 1997 and billed to the Agency. 4. We would review the Owner Participation Agreement and determine the time period and estimate the continued Agency subsidy. 5. We would obtain from Agency records a history and summary of payments made on the note receh able of the Agency in 1996 and 1997 and compare that to records of the owner as of December 31, 1997. MEMBERS OF AICPA AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PRIVATE COMPANIES PRACTICE SECTK W U I Greg Brown Development Specialist Department of Economic Development August 5, 1997 Page Two At the conclusion of our agreed -upon procedures, we would render a written report of our procedures performed and attach our findings and calculations. The above procedures will be performed principally by Mr. Steven Dobrenen, C.P.A. who is a Manager in our office under the supervision of Michael A. Ha n; QP: , Partner. We would agree to a not -to -exceed fee to conduct the procedure $3,80a, i Iuding out of pocket expense. We would be prepared to commence the project January 5, 1998 and render a draft report by February 1, 1998. We would issue our final report within one week after your approval of the draft report. If the foregoing meets with your understanding, you may sign and return the enclosed duplicate of this letter. Very truly yours, CONRAD & ASSOCIATES, L.L.P. Michael A. Harrison, C.P.A. Partner MAFUdc Enclosure Accepted: CITY OF HUN'TINGTON BEACH By: Title: Date: ACOAD_ CERTIFI PRODUCER Advanced Insurance Marketing P.O. Box 4459 OrvLnge CA 92613-4459 :awes Ellis _ F E OF LIABILITY INS . )ANCgsR SN DATE(MDWTYI oMl N7001 02/04/97 UA4"U0, oao THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR (.A* -1T• ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. 5�1315ii COMPANIES AFFORDING COVERAGE COMPANY A CNA Ins. Co_ _ NO. /19-7y1-OIV Fax NO. INSURED COMPANY B COMPANY Conrad and Associates L.L.P. C - 1100 Main Street BC COMPANY 1 Irvine CA 92714 D COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED. INDICATED. NOTWITHSTANDING ANY REOUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT► CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS S �� J,,� EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS •0s coI TYPE OF INSURANCE POLICCI[ NUMBER LTR '�.•' POLICY EFFECTIVE POLICY EX PI e� }r 1 111 UM[TS DATE IMMlpOfYY) DATE (MMlG u GENERALLIAGILITY GENERAL AGGREGATE f 2 000 OOO A X COMMERCIAL GENERAL LIABILITY 128167304 02/07/97 02/07/98 PRODUCTS-COMPIOPAGG f 2 000 000 CLAIMS MADE I X1 OCCUR PERSONAL i AOV INJURY S 1 OOO 000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE S1,000,000 FIRE DAMAGE [Anyone Rnl f 10O 000 MED EXP (Any one P«+on) f 1 O 000 MO81LELIABILRY COMBINED SINGLE LIMIT f1,000,000 A aJANYAUTO 128167304 02/07/97 02/07/98 BODILYINJURY S LL OWNED AUTOS SCHEDULED AUTOS (Per pmon} BODILYIHJURY S T HIRED AUTOS jC NON -OWNED AUTOS IPir&celd#nq PROPERTY DAMAGE S GARAGE LIABILITY AUTO ONLY - EA ACCIDENT S OTHER THAN AUTO ONLY: ANY AUTO EACHACCOE14T S AGGREGATE f EXCESS LIABILITY EACH OCCURRENCE S AGGREGATE f UMBRELLA FORM f OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND X wcSTATU- OTH IMI EM PLOYEFLT LIABR]TY ELEACH ACCIDENT f 1OOO OOO A THE PROPRIETORI WCB62306251 02/07/97 02/07/98 ELDIsEAsE•PoucrumFT $1 000 000 PARTNERSIEXECUiNE EL DISEASE -EA EMPLOYEE S 1 000,000 OFFICERS ARE: EXCL OTHER DESCii1PTI0N VF OPERAT1ON51LpG►n01151VEHIGLESiSPEGWLITEM3 10 DAY NOTICE OF CANCELLATION FOR NON-PAYMENT OF PREMIUM./ ADDITIONAL INSURED PER THE ATTACHED 118157A. CERTIFICATE HOLDER CITY OF HUNTINGTON BEACH,ITS ✓ AGENTS,OFFICERS & EMPL40YEES GREG BROWN 2000 MAIN STREEET IMINTINGTON BEACH CA 92648 CANCELLATION CIHB003 I SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BECANCELLEDBEFORETHE EXPIRATION DATE THEREOF. THE ISSUING COMPANY WILL H+IHSI f@W`MAIL 30 DAYS wRITTEII NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. IM. James Ellis ACORD 25S (1195) OACORD CORPORATION 1S • t . INSM=- COHP,AD & ASSOCIATES L.L.P. POLICr : 128167304 CAFA • MAtf 4. i�..rc+�e..l.. t4h.r - T14i51=NDoHSEMENT CHANCES THE POLICY. PLEASE READ IT CAF3UFULLY.. 3 ADDITIONAL INSURED - DESIGNATED PERSON OR- ORGANMATIQN This endorsemsnt modifies insurance provided under the following: EtistrIESS ACCOUNT PACKAGE POLICY BUSINESS UADMITY COVERAGE FARM SCHEDULE Name of Person or Organlxntion: CITY OF IIU?t'TINGTON Maj. ITS ACEH"I'S, OFFICERS & EMMOYEM (It no entry appears above, Informatlon required to complota this endorsement will be shown in the Deciaratlona as applicable to this endorsement.) WHO IS AN INSIJ ED (Section C.) fs amended to include as an insured the person or organization shown In the Schedule as art insured but only wM respect to 02bllity arlaing out of your operatlats or pramtses , owned by or rented to you. . E APPROVED t S TO PORW GAILHL1710M, City AltOrnay . By: Deput;r City A#tos•my Includes Copyrighted matoW of Insumncs Servloes OfAa, Ina. watt its penrWon.. Copyrlgltt, Inturartcs Services Off. Int:..1984 t�•t78tS7-A - . (ED; 01196) 16 VW kl%.) ,ANY 07i CAMICO / 2SS StaeW Dd". ltwd Floor, >e wwd W FA 94065•1404 41 S.E012SW - 800.6511177 - Fax: 415.602.27OO CAMICO MUTUAL INSURANCE COMPANY To: Mr. Greg Brown City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: Policy No. CAL01311 DATE: January 16, 1997 This is to certify that as of the date hereof a CAMICO policy of accountant's professional liability insurance insuring Conrad & AssQ91at s. LLP as the Named Insured is in effect. The policy period of such policy is 01101197-12 1197 and the per claimlaggregate limits of liability thereunder are $2_0D0.0001$2.000.000_ respectively. Such insurance is subject to cancellation as provided in the policy and to nonrenewal by the Company or by the Named Insured. Coverage is subject to all the terms and conditions of the policy. By issuing this Certificate, CAMICO undertakes no obligation to inform any person of the cancellation or nonrenewal of the policy or of exhaustion of the limits of liability -thereunder. CAMICO MUTUAL INSURANCE COMPANY IM APPROVED AS TO FORM 0A1`BUTT' Cit. omeymey By Deputy Y Att MilfI tie (v)e 9.03 14 �'c' City of Huntington Beach ( 1 2000 MAIN STREET CAI-IFORNIA 92648 ��. DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 714/536-5582 FAX 714/375-5087 Housing 714/536-5542 January 27, 1997 Conrad & Associates 1100 Main Street, Suite C Irvine, CA 92714 Attention: Michael A. Harrison, Partner Dear Mr. Harrison: The Redevelopment Agency of the City of Huntington Beach is seeking the services of an accounting firm to audit the performance of a redevelopment project. The subject property was developed with the assistance of the Redevelopment Agency. The Owner Participation Agreement between the Agency and the property owner requires ongoing participation of both parties. The Agency is the mortgagee of a first deed of trust used to finance the project. The Agency is obligated to subsidize both rent and common area maintenance charges for a portion of the building. The Agency would like to achieve the following objectives through the audit: • Establish the actual rent role and payment history of the note. • Verify the calculation of the rent subsidy and common area maintenance charges billed to the Agency. • Estimate the term of the continued Agency subsidy. Please respond with your bid for services in writing. Bids may be submitted by fax. The deadline for receipt of all bids is January 31, 1997. Very truly yours, Mi ael J. Hennessey Assistant Project Manager MJH:Ib V 0 JJ R City of Huntington Beach 2000 MAIN STREET CALIFORNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 7141536-5582 Redevelopment 714/536-5582 FAX 7141375-5037 housing 714/536-5542 January 27, 1997 Deloitte & Touche, LLP 695 Town Center Drive, Suite 1200 Costa Mesa, CA 92626 Attention: Gary Smith, Partner in Charge of Auditing Dear Mr. Smith: The Redevelopment Agency of the City of Huntington Beach is seeking the services of an accounting firm to audit the performance of a redevelopment project. The subject property was developed with the assistance of the Redevelopment Agency. The Owner Participation Agreement between the Agency and the property owner requires ongoing participation of both parties. The Agency is the mortgagee of a first deed of trust used to finance the project. The Agency is obligated to subsidize both rent and common area maintenance charges for a portion of the building. The Agency would like to achieve the following objectives through the audit: • Establish the actual rent role and payment history of the note. • Verify the calculation of the rent subsidy and common area maintenance charges billed to the Agency. • Estimate the term of the continued Agency subsidy. Please respond with your bid for services in writing. Bids may be submitted by fax. The deadline for receipt of all bids is January 31, 1997. Very truly yours, M' a � I�M Assistant Project Manager MJH:lb O City of Huntington Beach 2000 MAIN STREET CALI FORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 7141536-5582 Redevelopment 714/536-5582 FAX 7141375-5087 Housing 714/536-5542 January 27, 1997 Diehl, Evans & Company, Certified Public Accountants 18401 Von Karman, Suite 200 Irvine, CA 92715-1542 Attention: William S. Morgan, Director of Management Consulting Dear Mr. Morgan: The Redevelopment Agency of the City of Huntington Beach is seeking the services of an accounting firm to audit the performance of a redevelopment project. The subject property was developed with the assistance of the Redevelopment Agency. The Owner Participation Agreement between the Agency and the property owner requires ongoing participation of both parties. The Agency is the mortgagee of a first deed of trust used to finance the project. The Agency is obligated to subsidize both rent and common area maintenance charges for a portion of the building. The Agency would like to achieve the following objectives through the audit: • Establish the actual rent role and payment history of the note. • Verify the calculation of the rent subsidy and common area maintenance charges billed to the Agency. • Estimate the term of the continued Agency subsidy. Please respond with your bid for services in writing. Bids may be submitted by fax. The deadline for receipt of all bids is January 31, 1997. Very truly yours, Michael J. Hennessey Assistant Project Manager — �-o Vl� .0- MJH:lb