6. Discussion on agreement with Forest Lake Cable Commission to provide accounting services
Staff Report
Date of Meeting: April 4, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Agreement to provide accounting services to the Forest Lake Cable Commission
Background: For the past 2 years the City has provided accounting service to the Forest Lake Cable
Commission. With the City withdrawing from the Commission effective June 30, 2018, the
Commission has requested that the City submit a proposal to continue the services.
The proposed agreement will extend from July 1, 2018 through December 31, 2019.
Issue: Should the City continue to provide accounting services based on the agreement as drafted.
Fiscal Impact: The City is currently paid $3,600 per year to provide the services. All of the work is
performed by Colleen Firkus, the City Treasurer. Colleen has estimated that the work takes roughly
100 hours of her time each year. Based on the current cost per hour worked ($24.26)and the
estimated cost for supplies, photocopies, and other misc. items, the City’s cost are less than the
proposed amount.
Options:
1. Approve the agreement
2. Modify the agreement
3. Opt out of continuing the services
Recommendation: Option 1
INTERGOVERNMENTAL AGREEMENT
BETWEEN THE CITY OF SCANDIA AND THE FOREST LAKE CABLE
COMMISSION
FOR ACCOUNTING SERVICES
This INTERGOVERNMENTAL AGREEMENT (hereinafter referred to as the
“Agreement”), is made and entered into this ___ day of _____________, 2018, by and between
the CITY OF SCANDIA, a Minnesota municipal corporation and political subdivision located at
14727 209th Street North, Scandia, Minnesota 55073 (hereinafter referred to as the “City”), and
the FOREST LAKE CABLE COMMISSION, a body politic and corporate located at 767 Fourth
Street Southwest, Forest Lake, Minnesota 55025 (hereinafter referred to as “Commission”):
RECITALS
WHEREAS, the Commission was created as of August 24, 2007, through joint action by
the cities of Forest Lake, Scandia, and Columbus, Minnesota, and is governed by a Joint and
Cooperative Agreement; and
WHEREAS, the City’s membership with the Commission is scheduled to expire on June
30, 2018; and
WHEREAS, the City does not intend to renew its membership with the Commission, but
is willing to provide accounting services to the Commission, in accordance with the terms and
conditions hereinafter set forth; and
WHEREAS, Minnesota Statutes, Section 471.59, as amended, authorizes local units of
government to contract with one another to perform any activity otherwise authorized by law; and
WHEREAS, the City and Commission wish to agree with each other concerning the
provision of accounting services by the City for the Commission.
NOW, THEREFORE, in consideration of the mutual covenants, conditions, and
agreements herein set forth, and other good and valuable considerations, the parties hereto agree
as follows:
I. Scope of Services.
The City shall perform the following accounting services in accordance with Generally Accepted
Accounting Principles (GAAP) and in a satisfactory and proper manner as determined by the
Commission as follows (the “Services”):
A. Record general journal entries;
B. Prepare financial reports including balance sheets, revenue and expenditure statements,
cash flow statements, investment reports, or any other financial statements required by
the Commission, Federal, State and /or local ordinances, statutes or regulations;
C. Reconcile bank statements monthly or more often as determined necessary by the City;
D. Process accounts payable checks, and produce and distribute annual 1099 forms
provided that the Commission provides all necessary documents and forms (Note: all
check and form supply charges are not included in the monthly fee charged by the
City);
E. Process bi-weekly payroll, remit federal and state tax liabilities, prepare and file
quarterly federal and state 941 forms, process and distribute annual W-2s and
accompanying required forms, provided that the Commission provides all necessary
documents and forms (Note: all check and form supply charges are not included in the
monthly fee charged by the City);
F. Close the books annually and prepare and submit required audit related financial
schedules and reports;
G. Work with auditors selected by the Commission in the conduct of audits or Agreed
Upon Procedures as required by MN Statutes for Special Districts
H. Advise and inform the Commission of any federal, state or local requirements regarding
payroll and accounting practices;
I. Be available and serve as a consultant on accounting fiscal matters, up to three hours
per month.
II. Limitations.
Section 2.1. This Agreement is for the above listed accounting services only. The City
is not obligated to, and will not, review or audit financial transactions or statements, nor will
the City express any opinion on or provide any other form of assurance therefor.
Section 2.2. The Commission is responsible for all management and decision making
functions, maintaining adequate internal controls, monitoring ongoing activities, and for
designating an individual with suitable skill and knowledge or experience to oversee any
Services provided. The Commission is responsible for ev aluating the adequacy and results of
the Services performed and accepting responsibility for such Services. The City has no such
knowledge, and shares no responsibility to identify or communicate significant deficiencies or
material weaknesses in the Commission's internal controls as part of this Agreement.
Section 2.3. The City is not responsible for disclosing errors, fraud, omissions, or any
other illegal acts that may exist. However, the City will inform the Commission of any material
errors and any evidence or information that comes to the City’s attention during the
performance of services that may constitute an illegal act.
Section 2.4. In the event that the City makes any errors in performing the Services
required by this Agreement, the City will work diligently to timely correct said errors.
III. Time of Performance. The services of the City contemplated under this Agreement are to
commence upon written notice from the Commission and shall be undertaken and completed in
such sequence as to assure their expeditious completion.
IV. Compensation. The Commission will pay to the City the amount of $300 per month for
services from July 1, 2018 through December 31, 2019. Said amount shall constitute full and
complete compensation for the City's services as defined in this Agreement. Such sum shall be
paid monthly following the rendering of such services. (Note: all check and form supply charges
and costs of financial software are not included in the City’s monthly fee). In the event there is a
renewal of this Agreement, said monetary compensation shall be renegotiable at the discretion of
the City or the Commission.
V. Term; Cancellation. The term of this Agreement shall be for a period of July 1, 2018 to
December 31, 2019, and shall automatically renew for a 2-year period unless otherwise terminated.
If either agency wishes to terminate this Agreement they shall provide written notice to the other
agency at least one hundred twenty days (120) days prior to the date of termination.
VI. Indemnification. The Commission shall save and hold the City harmless for any damages
or injuries caused in the performance of this Agreement by the City, its employees or agents, except
for gross negligence or intentional wrongful acts by City employees and agents. The Commission
shall indemnify, keep and hold harmless the City only where a loss was caused by the negligent
or wrongful acts of the Commission, its employees, or its subcontractors. This Agreement shall
not limit either party's right to assert any governmental immunities or defenses in any claims
against any party.
VII. Liability; Insurance. The liability of the parties under this Agreement shall be governed by
Minnesota Statutes, Section 471.59, Subdivision 1a, as amended. Each party to this Agreement
shall be liable for its own acts or omissions and shall not be liable for the acts or omissions of any
other party to this Agreement. The parties additionally agree that they will at all times during the
term of this Agreement keep in force general liability insurance, automobile coverage, and
worker’s compensation coverage. Each party shall, upon request, furnish the other party with
proof of adequate insurance. Neither party shall cancel any insurance without 30 days’ notice to
the other party.
VIII. Notices. All notices required herein shall be in writing and shall be served on the party or
mailed by United States mail at the addresses listed in the Recitals, postage prepaid.
IX. Captions. The captions used herein are for reference only and are not intended to define or
limit the meaning of any paragraph.
X. Severability. If any provision of this Agreement is held invalid under the laws of any state,
country or jurisdiction, such invalidation will not affect the other provisions, rights and obligations
contained in this Agreement.
XI. Service Contract; Data Practices. This Agreement is a service contract. All data collected,
created, received, maintained, or disseminated in connection with this Agreement is subject to the
Data Practices Act, found at Minnesota Statutes, Chapter 13, as amended.
XII. Jurisdiction. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of Minnesota. All proceedings related to this contract shall be venued in
the courts of Washington County within the State of Minnesota.
XIII. Assignment. This Agreement or any part hereof shall not be transferred, conveyed or
assigned by either party without the prior written consent of the other.
XIV. Entire Agreement. It is understood that this Agreement contains the entire agreement
between the parties and that any statement, promise or inducements made by any party hereto, or
officer, agent, or employee of either party which is not contained in this Agreement shall not be
valid and binding; and this Agreement may not be enlarged, modified or altered except in writing
signed by the parties hereto. It is expressly understood between the parties and this understanding
shall be considered in interpreting the provisions of this Agreement, that upon notice given by any
party hereto, later negotiations may be undertaken for the purpose of revising, adding to or striking
any provision of this Agreement which appears unworkable or insufficient to perfect, maintain and
insure the purpose of this Agreement. Any change of the original provisions of this Agreement
shall be written, signed by both parties and attached to this Agreement as provided above and any
later revision, addition or deletion shall only apply to the provisions revised, added or deleted and
the remainder of this Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first written above.
CITY OF SCANDIA, MINNESOTA
Christine Maefsky
Mayor
Neil Soltis
City Administrator
FOREST LAKE CABLE COMMISSION
By: _______________________________________
Its: ________________________________________
By: _______________________________________
Its: ________________________________________