1993-059-Execute Letter Of Agreement Authorizing Additional Payment To Maze & Associates For Supplemental Audit Work On Fixed AssetsRESOLUTION 1993 - 59
RESOLUTION OF THE TOWN OF LOS GATOS
AUTHORIZING THE TOWN MANAGER TO EXECUTE
LETTER OF AGREEMENT AUTHORIZING ADDITIONAL PAYMENT
TO MAZE & ASSOCIATES FOR SUPPLEMENTAL AUDIT
WORK ON FIXED ASSETS
RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa
Clara, State of California, that the Town of Los Gatos enter into an agreement (attached)
with Maze & Associates for supplemental audit work on fixed assets, and that the Town
Manager is authorized, and is hereby directed, to execute said Letter of Agreement in the
name and on behalf of the Town of Los Gatos.
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 3rd day of May, 1993 by the following vote:
COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Linda Lubeck, Patrick O'Laughlin
Mayor Joanne Benjamin
NAYES: None
ABSENT: None
ABSTAIN: None
SIGNED:
YOR OF THE T N OF LOS GATOS
OS GATOS, CALIFORNIA
ATTEST:
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
AJAZE &
ASSOCIATES
April 12, 1993
Mark Linder
Assistant Town Manager
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95032
Dear Mark:
ACCOUNTANCY CORPORATION
1670 Riviera Avenue -Suite 100
Walnut Creek, California 94596
(510) 930 -0902 • FAX 930 -0135
H,3 <
As I discussed with you on the phone, we have not been able to complete our work assembling fixed asset records.
As I stated in my Ietterdated February 3, 1993, our fee of $1,800 for completing the above work depended on the
amount of information available at the County Assessor's Office. We spent a day at the County Assessor's Office
attempting to look for parcels owned by the Town. We examined several deeds for Town owned parcels and
noted values are not maintained by the County. As alternative tests, we met with staff from the Town,
Engineering and Planning Departments to determine additional data on hand at Town offices and we reviewed
board minutes available at the Town Clerk's Office. Based on the above we noted the following deficiencies
existed in land records:
No one at the Town tracks Town owned parcels by deed number, parcel number or usage.
Data provided to us which we used to estimate the costs of detailing parcels in our February 3,
1993 letter showed 25 parcels. Upon our arrival at Town offices to begin our work, we were
given a new list of Town owned parcels which showed over 112 parcels.
Town records do not include cost or assessed values for all Town owned parcels.
Town staff informed its that detail records may not include all parking lots or parks.
Rights of way and easements are included in available detail records, but Town staff could not
identify which parcels represent rights of way and easements.
Acreage is not available for approximately 70 parcels out of 112 parcels listed.
Many individual parcels contain identical asset numbers, asset descriptions or deed numbers,
yet we have not been able to confirm whether these parcels should be valued as one lot, separate
lots or represent duplicate entries.
So far we have been able to confirm or obtain deed numbers for all parcels listed in the detail records except for
the following asset numbers; 20164 - Pageant Ground Park, 20106 - Capri Drive, 20129 - West Parr, 20120 -
Fairview Plaza, 20133 - Elm Street, 20100, 20151 through 20158 - N. Santa Cruz, 20136 - New York Avenue,
20134 - Winchester Boulevard and 20135 - W. Mozart Avenue. There are several other parcels missing deed
numbers, however the descriptions of these parcels are identical to other entries in the detail records.
A Professional Corporation
Page 2
However, based on discussions and our progress thus far, we believe we can complete our work and provide the
Town with complete parcel records, although our costs have increased as a result of the problems alone. We
intend to use the following procedures for lands in order to complete the detail records. As we discussed, we will
need the cooperation of the departments below in order to complete this work.
1) We will need to have the Engineering Department determine the size and exact location of parcels listed
in the detail records.
2) We will test recorded cost data contained in detail records based on Council resolutions, contracts,
invoices, Town budgets and official statements for debt used to finance parcel acquisition. We will
submit a list of parcels with cost data to the Town. We will need to have Town staff assemble available
supporting records in order to complete our work.
3) For parcels which do not have a recorded value. we will use the acreage and date of acquisition to
estimate historical cost information based on the following:
Comparable projects tested under 2) above,
Inflation adjustments,
Comparable listings from real estate agents, or
Similar projects constructed by surrounding agencies
The additional cost of the above work is 54,994, as shown on the attached schedule. As you requested, we have
contacted Sandy Daily from the Engineering Department, for assistance in determining exact location and parcel
acreage. We intend to meet with representatives from the Town Clerk, Engineering and Finance Departments
to coordinate this effort and to determine who will assist us.
Yours very truly,
Cory A
CAB:cab
If you agree to the terms of the letter sign below and return a copy of this letter to us:
APPROVED AS TO FORM:
NAME:
DAVID W. KNAPP
TITLE: TOWN MANAGER, TOWN OF LOS GATOS
DATE:
JIM JACKSON, INTERIM TOWN ATTORNEY
ATTEST:
MARIAN V. COSGROVE, TOWN CLERK
TOWN OF LOS GATOS
FIXED ASSETS SPECIAL PROJECT
BUDGETED DETAIL OF FEES AND HOURS
Partner Manager Associate TOTAL
Construction in Progress & Leased Equipment
Test detail
00
4.00
Determine completion dates & asset breakout
00
q 00
Revise asset detail
4.00
Supervise /review
200
g4.00
200
SUBTOTAL
2.00
00
14.00
Land Values and Building
Detail tests of costs as reported on existing records
32.00
32.00
Estimate costs for parcels without values
16.00
16.00
Supervise /review
4.00
4.00
SUBTOTAL
4.00
48.00
52.00
Completion
Record entries in the general ledeger
2.00
2.00
Supervise /review
2.00
4.00
6.00
SUBTOTAL
2.00
400
200
800
GRAND TOTAL
2.00
10.00
62.00
74.00
BILLING RATES
$170
$110
$50
TOTAL FEES
10% CONTINGENCY
340
34
1,100
110
3,100
310
4,540
454
FEE TO CHARGED
$374
$1,210
$3,410
$4,994