Loading...
HomeMy WebLinkAbout8.F.2. Appointment of Interim Finance Director General Business 8. F. 2. SHAKOPEE TO: Mayor and City Council FROM: Kris Wilson, Acting City Administrator DATE: 02/03/2015 SUBJECT: Appointment of Interim Finance Director (F) Action Sought The Council is asked to authorize the appropriate officials to enter into the attached agreement with AEM Financial Solutions for interim finance director services. Background At the January 6 City Council meeting, Council directed staff to advertise for an Interim Finance Director to fill the position upon the departure of current Finance Director / City Clerk Julie Linnihan. Appointing someone on an interim basis now will meet the City's ongoing operational needs while also allowing the new City Administrator the ability to participate in filling this key management position. The City did not receive responses from any individuals interested in the interim role, but has had conversations with two firms that provide this type of service. Recommendation I recommend that the City hire Jean McGann of AEM Financial Solutions, Inc. to serve as the City's Interim Finance Director. Ms.McGann was the Finance Director for the City of Andover from 1995 — 1999, Director of Finance for the City of St. Louis Park from 1999 - 2006 and Administrative Services Director for the City of Plymouth from 2006 —2007. She currently serves as the Finance Director for the City of New Hope through a similar contractual relationship with AEM Financial. This is advantageous as New Hope utilizes the same financial software package through LOGIS as we do. A complete proposal from AEM, outlining the scope of services to be provided, is attached. As you will read, under the proposed agreement, Ms. McGann would be onsite one day per week and available to the City via phone and email on any days she is not on site. She would attend Council meetings as needed. Budget Impact The cost of the proposal from AEM Financial would be $10,933 per month. This is just slightly less than our monthly wage and benefit cost for the Finance Director position as a full-time employee, and can therefore be accommodated within the adopted budget. Requested Action The Council is asked to authorize the appropriate officials to enter into the attached agreement with AEM Financial Solutions for interim finance director services. Attachments: AEM Financial Solutions Proposal ABDO EICK & 1VIEYERS 1.Lp January 26,2015 AEM Financial SolutionsTM' Ms.Kris Wilson Acting City Administrator City of Shakopee 129 Holmes Street South Shakopee,MN 55379 Dear Kris, Thank you for the opportunity to submit this proposal to the City of Shakopee(the City)for interim financial accounting services. Based on our understanding of services the City is looking for,we believe our structured contract with defined outcomes offered through AEM Financial Solutions,LLC(AEMFS)will provide the City with the services needed. Our solution will provide excellent financial accounting services during your transition period and tap into the best practices we have developed over the past 50 years we have been in business. Our proposal is based our discussion on January 21,2015.Our proposal outlines the scope of the services we believe would address your current situation. The term of this contract shall be February 16,2015-September 30,2015 with the ability to extend this contract based on the City's needs. An AEMFS representative will be in the City offices as necessary to perform responsibilities as noted in the Scope of Services page. Services will also be performed remotely as necessary. AEMFS would like to thank the City for the opportunity.We look forward to exceeding your expectations and achieving a mutually beneficial relationship. Sincerely, AEM Financial Solutions,LLC an Abdo,Eick&Meyers LLP Company 24,0"--( ri411VAA-1---eeN -v.-4,r". V), Steven R.McDonald,CPA Jean D.McGann,CPA CEO President 5201 Eden Avenue,Suite 250 Edina,MN 55436 952.715.3070 I Fax 952.835.3261 City of Shakopee January 26,2015 Page 2 AGREEMENT FOR FINANCIAL SERVICES THIS AGREEMENT,is made and entered into on January 26,2015 by and between the City of Shakopee(hereinafter referred to as the"City"),and AEM Financial Solutions LLC(hereinafter referred to as the"Contractor"). Articles of Agreement&Recitals WHEREAS,the City is authorized and empowered to secure from time to time certain professional services through contracts with qualified consultants;and WHEREAS,the City desires to retain and compensate a qualified contractor to provide such services on the terms and conditions hereinafter set forth;and WHEREAS,the Contractor understands and agrees that: 1. The Contractor will act as an Independent Contractor in the performance of all duties under this Agreement. Accordingly,the Contractor shall be responsible for payment of all taxes,including federal,state and local taxes and professional/business license fees arising out of the Contractor's activities; 2. The Contractor shall have no authority to bind the City for the performance of any services or to obligate the City. The Contractor is not an agent,servant,or employee of the City and shall not make any such representations or hold himself/herself out as such; 3. The Contractor shall be the exclusive outsourced accounting service provider for the City during the term of this Agreement; 4. The Contractor shall perform all professional services in a competent and professional manner,acting in the best interests of the City at all times. 5. The Contractor shall not accrue any continuing contract rights for the services performed under this contract. NOW THEREFORE,in consideration of the mutual covenants and promises contained herein,it is agreed as follows: ARTICLE I INCORPORATION OF RECITALS The recitals and agreement set forth above are hereby incorporated into this Agreement. ARTICLE II LIABILITY INSURANCE Section 1 Liability Insurance: The Contractor shall obtain professional liability insurance,at their expense,with coverage satisfactory to City,in its sole discretion,which liability insurance Contractor must secure and maintain during the term of this Agreement. Contractor will provide City with proof of liability insurance coverage prior to performing services under this Agreement,if requested, in writing,by the City. People +Process. Going Numbers V 1 umbers City of Shakopee January 26,2015 Page 3 ARTICLE III DURATION OF THE AGREEMENT Section 1 Duration: This Agreement shall commence upon date of execution by all parties and will remain in effect until September 30,2015 unless earlier terminated as provided in Sections 2 and 3. Section 2 City's Termination Rights: City may terminate this Agreement upon seven(7)days written notice in the event the City determines in its sole discretion that it is not in the City's best interests to continue using Contractor's services.The City may terminate on a ten(7)day written notice if the Contractor fails to perform its obligations under this Agreement. Section 3 Contractor's Termination Rights: Contractor may terminate this Agreement upon thirty(30)days written notice to City in the event City does not pay Contractor compensation as required under Article 5,Section 9 within thirty(30)days after invoice is received by City. In the event of non-payment within thirty(30)days,Contractor shall give City an opportunity to cure the default by giving a notice of such non-payment and an additional five(5)days the City's receipt of the notice to remit such payment,prior to giving a notice of termination.Contractor can also terminate the agreement with thirty 30)days written notice if the Contractor believes it is in its best interests to terminate the agreement. ARTICLE IV RENEWAL OF THE AGREEMENT Section 1 Renewal Period: Not less than thirty(30)days prior to the expiration of this Agreement,the City may provide written notice of intent to renew this agreement for an additional term of up to three months upon terms and conditions agreed upon by both parties to the Agreement. If no such renewal agreement is executed by the parties,the Agreement terminates without further action of either party on September 30,2015. ARTICLE V GENERAL Section 1 Authorized City Agent: The City's authorized agent for the purpose of administration of this Agreement is the Acting City Administrator.Said agent shall have final authority for approval and acceptance of the Contractor's services performed under this Agreement and shall further have responsibility for administration of the terms and conditions of this Agreement.All notices under this Agreement shall be sent to the person and address indicated below on the signature lines. Section 2 Amendments: No amendments or variations of the terms and conditions of this Agreement shall be valid unless in writing and signed by the parties. Section 3 Assignability: The Contractor's rights and obligations under this Agreement are not assignable or transferable. Section 4 Data: Any data or materials,including,but not limited to,reports,studies,photographs,negatives,or any and all other documents prepared by the Contractor or its outside consultants in the performance of the Contractor's obligations under this Agreement shall be the exclusive property of the City,and any such data and materials shall be remitted to the City by the Contractor upon completion,expiration,or termination of this Agreement. Further,any such data and materials shall be treated and maintained by the Contractor and its outside consultants in accordance with applicable federal,state and local laws regarding data privacy. Section 5 Entire Agreement: This Agreement is the entire agreement between the City and the Contractor and it supersedes all prior written or oral AEMFS agreements. There are no other covenants,promises,undertakings,or understandings outside of this Agreement other than those specifically set forth.Any term,condition,prior course of dealing,course of performance,usage of trade, understanding,or agreement purporting to modify,vary,supplement,or explain any provision of this Agreement is null and void and of no effect unless in writing and signed by representatives of both parties authorized to amend this Agreement. Section 6 Severability: All terms and covenants contained in this Agreement are severable. In the event any provision of this Agreement shall be held invalid by any court of competent jurisdiction,this Agreement shall be interpreted as if such invalid terms or covenants were not contained herein and such holding shall not invalidate or render unenforceable any other provision hereof. People +Process. Going Beyond the Numbers City of Shakopee January 26,2015 Page 4 ARTICLE V-CONTINUED GENERAL-CONTINUED Section 7 Contractor Fiscal Decision Waiver: Contractor is responsible for providing the City with timely and accurate financial recommendations and information that allows City Council the ability to make well informed financial decisions. Contractor will provide final financial recommendations,but is not responsible for the final decisions made regarding financial matters. Section 8 City Employment of Contractors Employees:Should the City desire to employ the Contractors employee that is assigned to the City during the term of this Agreement,it must have the written consent of the Contractor to enter into a City employee contract with the Contractor's employee. If the City hires the Contractor's employee,this will result in payment to the Contractor equal to 150 percent of the Contractor's employee's salary. This restriction on employment applies only during the term of this agreement. Section 9 Payment: The parties agree that the Contractor shall be paid compensation for the services provided hereunder,payable for work performed in accordance with this Agreement,based on the fees indicated in Table 1. Table 1 Services Period Fee Monthly February 16,2015-September 30,2015 $82,000 $10,933 Initial invoice will be sent within 10 days of the execution of this agreement.Monthly installment fees will be invoiced on a monthly basis throughout the remainder of this contract. Any additional fees outside the scope of this project can be based on our hourly rates which range from$110 per hour for staff levels to$295 for partner level. Outside Contractors: It shall be the responsibility of Contractor to compensate any other outside consultants retained or hired by Contractor to fulfill their obligations under this Agreement. Section 10 Scope of Work: The Contractor shall perform the scope of services and contract tasks shown on the attachment,which attachment is incorporated by reference. People +Process. Going Beyond the Numbers City of Shakopee January 26,2015 Page 5 AGREEMENT FOR THE PROVISION OF PROFESSIONAL SERVICES TO THE CITY OF SHAKOPEE WHERFORE,this Agreement was entered into on the date set forth below and the undersigned,by execution hereof,represent that they are authorized to enter into this Agreement on behalf of the respective parties and state that this Agreement has been read by them and that the undersigned understand and fully agree to each,all and every provision hereof,and hereby,acknowledge receipt of a copy hereof. City of Shakopee 129 Holmes Street South Shakopee,MN 55379 Name Title Mayor Name Title Acting City Administrator Date AEM Financial Solutions,LLC 5201 Eden Ave.Suite 250 Edina,Minnesota 55436 Name 2 11/Miv` - 4 Steven R.McDonald Title CEO Date January 26,2015 People +Process. Going Beyond the Numbers ABDO EICK 8� M YERSI IT AEM Financial Solutions TM Scope of Services Contract Task x 1. Audit preparation Review audit workpapers prepared by City of Shakopee staff Provide direction and oversight in preparation of annual audit Coordinate with auditors 2. Internal controls Review established internal controls Provide recommendations for additional internal controls where needed 3. Financial reporting Complete monthly dashboard of key indicators Review general ledger and budget reports,journal entries and payroll entries to ensure accuracy Review monthly budget to actual reports for coding errors 4. Budget Assist the Acting City Administrator with preparation and supporting documentation Participate in budget discussion with City Council and City Management Coordinate budget process with City staff 5. Cash and investment monitoring Review monthly to ensure timely and accurate Verify bank has proper amount of collateral pledged to City's account Review cash flow to ensure proper amounts are available for operations Review cash and investment reconciliation 6. Other tasks Respond to inquiries from outside agencies,consultants,City Council and staff Provide input to upcoming feasibility studies and potential projects Present recommendations and findings to City Council as needed * Our expectation is the Acting City Administrator will be responsible for monitoring and approval