HomeMy WebLinkAboutC-1324 - Consultants for Building Department financial proceduresTO:. FINANCE DIRECTOR
FROM: City Cleric
SUBJECT: Contract No. C-1324
Description of Contract C=ujtents Bu? ldsQDsnsxft mt Vinmnial
Proosdures
BA-23
Authorized by Resolution No. V24-262 , adopted on In-19-7n
Council Mast1w Minutes
Effective date of Contract 10 -12 -70
Contract with Binder$ MM±y mek I .Tetfxuon ¢ (b_
Amount of Contract Not to exmad Si _ 0.00
ity Clem ,
CI i Y OF NEWPORT BEACH
u CALIFORNIA vneo
City Hall i
A % 3300 Newport Blvd .�
0ctober 23, 1970
Binder, dies t),anek, Johnson $ Company
Harold E. Mestyanek, Partner
34,1 Via L iiio
Newport Beach, California 92660
Dear Mr. Mcstvanek:
O
(716) 673 -2110
Corfinain; the arrangements made at our meeting on the afternoon of Wednesday,
October 21, ti-,is letter will authorize your firm to conduct a special study
of the financial procedures of our Building Department. These services are
to 'je provided in accordance with your September 16, 1970, proposal to City
Manager, Harvey L. Hurlburt, and in accordance with the Compensation Schedule
contained in Section 6 of your August 10, 1970, "Agreement for Independent
Audit." The Newport Beach City Council authorized a.,maximum fee for the
services not to exceed $1250 at its meeting of October 12, 1970.
The following circumstances will govern performance of this examination:
1. it is contemplated that your personnel will begin work in the
Building Department offices by October 29 or October 30. The
actual examination of the department's records will take three
to five days and the hours of work will be from 8:00 a.m. to
4:00 p.m.
2. The Building Director is to provide you with additional ordan-
ances and code sections.
3. It is tmderstood that a draft report of your findings will be
available for staff review by Friday, November 20. Should it
be desirable to submit these findings to the City Council, the
meeting of December 14 would be the appropriate time.
4. Snccial attention will be given to recommcndat ions for improv-
ing procedural aspects of application of the required code fees.
:4
i
0
Mr. Harrold E. Mestyanek
- 2 -
4
October 23, 1970
We are hopeful that this will be a productive examination and that the ex-
perience gained in this pilot program will be of value in reviewing other
City departments.
Very truly yours,
PHILIP F. BETTE\COUP.T
Assistant City Manager
PFB:pg
cc: City Manager
Building Director /
Finance Director,/
Purchasing Agent
BINDER. MESTYANEK, JOHNSON & CO.
CERTIFIED PUBLIC ACCOUNTANTS
2471 VIA LIDO • SUITE 202
NEWPORT BEACH. CALIFORNIA 62660
1714/ 676.2661
September 16, 1970
Mr. Harvey L. Hurlburt
City Manager
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92660
Dear Mr. Hurlburt:
In answer to your request, we submit the following in connection
with the proposed review of the City's building department fees and
permits.
Our services would include the following:
1. Inspection "of certain legal documents (uniform building
codes, Newport Beach municipal code, ordinances, Council resolutions,
etc.) authorizing the charging of various fees and permits computed
by the City's building department;
. 2. Review of internal accounting controls related to the compute
tation and collection of such fees and permits;
3. Test - checks of a random sample of actual fees and permits
computed and collected to determine whether they conform in all re-
spects to the authorizations in (1) above; and,
4. Report of our conclusions.and recommendations based upon
our findings.
Our fee will be based upl;n the amount of time .spent by us in
rendering the above services using the hourly billing rates as speci-
fied in paSragraph (6) of the audit agreement dated.August 10, 19700
between the City and our firm. We estimate our fee for the above
services to be in the range of $1,000 to $1,250. This fee contem-
plates that conditions satisfactory to the normal progress and com-
pletion'of the engagement will bi encountered..
If, during the course of our work, we should encounter any un-
foreseen problem which will require additional time on our part, and
therefore additional fees, we will discuss this with you and obtain
proper authorization before proceeding.with the additional work.
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I
i
Mr. Harvey L. Hurlburt -2- September 16, 1970
If you have any questions concerning•the above proposal for
services, please contact us.
Very truly yours,
BINDER, MESTYANEK, JOHNSON & CO.
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Harold E. Mest 'k
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