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Home My WebLink About13463 ORD - 11/03/1976E:hb:11/2/76 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ACCEPT THE PROPOSAL OF ARTURO VASQUEZ & COMPANY FOR PREPARATION OF AN INDIRECT COST ALLOCATION PLAN IN ACCORDANCE WITH FEDERAL MANAGEMENT CIRCULAR 74 -4, A COPY OF SAID PROPOSAL BEING ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF FOR ALL PERTINENT PURPOSES; REAPPROPRIATING $21,000 FROM 102 GENERAL FUND RESERVE; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to accept the proposal of Arturo Vasquez & Company for preparation of an Indirect Cost Allocation Plan, in accordance with Federal Management Circular 74 -4, a copy of said proposal being attached hereto, marked Exhibit "A ", and made a part hereof for all pertinent purposes. SECTION 2. That there is hereby reappropriated $21,000 from 102 General Fund Reserve for the cost of said plan. SECTION 3. That the necessity to authorize the accep- tance offthe aforesaid proposal and appropriate the funds necessary for carrying out the proposal at the earliest possible date, creates a public emergency and an imperative public necessity requiring the suspension of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be i read at three several meetings of the City Council, and the Mayor having declared such emergency and necessity to exist, having requested the suspension of the Charter rule and that s this ordinance take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED this the3A, _day of , 1976. ATTEST: eTty 5 retary ° MAYORP o_7e THE E'ITY OF CORPUS CHRISTI, TEXAS APPROVED: a DA Y OF TTO EYrr� 1976: J. BRYCE ,1 1Cl49£D ByA sistant Cit Attorney ✓!/N O 1980 I AMERICAN I TIYUTE U ERTI FIEC P TANTS ARARC ^! .1 LXA,a 90CII:TY OF CLR11FS -1 F -111 IC ACCONNTAN f., P. o. DO S I.AC ARTURO VASQUEZ & COMPANY CERTIFIEO PLIOLIC ACCOUNTANTS EVERHART PLA "IA - 4707 EVERHART CORPUS CHRISTI. TEXAS 78411 Tkt.. AC t12 e54 26; 16 October 11, 1976 Harold F. Zick, Director of Finance City of Corpus Christi Corpus Christi, Texas 78408 This letter will confirm our meeting with you on Tuesday, October 5, 1976. At the meeting, you requested that we update our proposal for an indirect cost allocation plan for the City of Corpus Christi. In response to the above request, we propose to do the following: 1. We will prepare a Local Government -Wide Cost Allocation Plan in accordance with Budget Bureau Circular A -87 guideline and Depart- ment of Labor recommendations. Our approach for the plan will be as follows: A. Obtain a detail organizational chart with each department broken down into its individual divisions or units. B. Provide a description of the nature of the services provided and their relevance to Federal Government grants. If this description is not available in- house, we will include it as a part of this proposed engagement. C. Identify the central service costs (administration- costs) which benefit grant programs, as an allowable costs. The financial statements for the year ended July 31, 1976 will be used for this plan. We will need the City Staff's assistance in those areas of classification that are subject to varying inter- pretations. The areas subject to varying interpretations may have an impact on the reimburable indirect costs. D. Test the services described in Item B above and determine a method for allocating each type of central service cost to user agencies. E. Make the cost allocations based on the findings of Item D above and provide a summary of amounts allocated into a single formal comprehensive local government -wide plan. Above procedures will be modified as necessary. j�X f+,'d i r "A" 3. For each department operating Federally supported programs we will prepare an Indirect Cost Proposal. A. Determine for each department the degree to which each in- dividual division or unit benefits from indirect cost. In this phase, we will require the assistance of the City.Staff, because this area is subject to varying interpretations. B. Based on the findings in Item A above, we will prepare an indirect cost proposal for each department. If each indivi- dual division or unit in the department benefit to relatively the same degree, the Simplified Method or Single Rate Method will be used in the proposal. If the individual divisions benefit from indirect cost in significantly different pro- portions, then the multiple rate may have to be used. Since your preference is for Single Rate Method, we will make every effort to comply with your wishes. C. With each indirect cost proposal, we will include a copy of the financial statements and a listing by Federal agency of grants and contracts and the amount of expenditures incurred on each for the period involved. Above procedures will be modified as necessary. 4. During the development phase, we will co- ordinate with appropiate federal officials and other city administrative personnel to en- sure that the concepts and interpretations of the cost principles are not misunderstood by those concerned. We will review with you the Local Government -Wide Cost Allocation Plan. The approval of the plan by you or your designated official is required because the Indirect Cost Proposals for the different departments depend on the plan. As each Indirect Cost Proposal is completed we will review it with you for approval. Prior to preparing the final plan and proposal we will review with you the overall Local Governmemt- Wide Cost Pldn and the Indirect Cost Proposals for the final approval. 5. We will assist in securing indirect cost reimbursement for those grants having significant indirect cost potential and recoupment proceedings; we will represent the City before those state agencies which have administrative responsibility for federal funds and provide on going technical assistance in the area of identification and reimbursement indirect cost allocation as needed for FYE 1976. 6. We will train an employee designated by you in the Indirect Cost Allocation formula and concept so that plans and proposals modifi- cation can be done in- house. We will accomplish this phase as follows: A. Through communications with your designated employee on the day to day progress of the plan and proposals so that he will have an awareness of the project. B. Provide your designated employee with written procedures that we use in developing the plan and proposals. Also, work pap =rs and other supporting data will be made available in the future. We have communicated with your cognizant agency, the Department of Labor, (DOL). Some of the concerns of DOL are that the "cost pools" be property identified and that all source of funding be taken into account. DOL will accept either a single rate or multiple rate plan. Since the City prefers the single rate because of simplicity and flex- ibility to update, we will formulate a single rate plan and advise you of significant benefits of a multiple rate plan, should any come to our attention. As previously stated, we estimate the field work at six to eight weeks. Compilation of data and formulation of the plan we estimate at four to five weeks. We will plan our work to finish the report to meet any rea- sonable deadlines that you may have. We can start our field work one or two weeks after we have been advised that our proposal has been accepted. Based on the above proposal, we estimate the fee to be $21,000 including out of pocket expense. Our work will be billed at our regular rates applicable to the individual assigned. Of course, should time charges or expense be less, then the lower amount will be our fee. All proposals from our firm recognize professional standards. As is customary, we will present statements.for payment as work progresses. Should there be any questions, please let us know. Arturo Vasquez & Comapry will report to Mr. Harold F. Zick, Director of Finance, for the engagement. The report will be addressed to the City Manager. We appreciate the confidence place on our firm and we look forward to working together as in the past. Respectfully, ACCEPTED ARTURO VASQUEZ & COMPANY Certified Public Accountants Arturo Vasquez, C. .A. APPROVED: DAY OF , J. BRUCE AYCOCK, CITY ATTORNEY Assistant City Attorney CITY OF CORPUS CHRISTI By' R. Marvin Townsend, City Manager ATTEST: City Secretary 1976. CITY OF CORPUS CHRISTI, TEXAS CERTIFICATION OF FUNDS (City Charter Article IV Section 21) November 3, 1976 I certify to the City Council that $ 21,000.00 , the amount required for the contract, agreement, obligation or expenditures contemplated in the above and foregoing ordinance is in the Treasury of the City of Corpus Christi `to the credit of: ' Fund No. and Name 102 - General Fund Activity M�pm No. 4299 - Reserve Appropriation - General Purpose To provide funds•for Indirect Cost Allocation Plan to be performed by Arturo Vasquez & Co. from which it is'proposed to be drawn, and such money is not appropriated for any other purpose. ti November 3, , 19 76 Dire o o nance FIN 2 -55 Revised 7/31/69 CORPUS CHRISTI, TEXAS - -I DAY OF /K(�iJ7 , � 9L TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE, REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, �a �. 6'4�� MAYOR IErg-lam THE CITY OF CORPUS HRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JA30N LUBY OR. BILL TIPTON EDUARDO DE A3ES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: JASON LUBY OR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE