Minutes - 2002/12/30 - Laserfiche WebLink

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Mounds View City Council December 30, 2002 Regular Meeting Page 11 City Attorney Riggs suggested moving the start date ahead in order to have him covered under the City's workers compensation policy. Council agreed to amend Resolution 5903 to reflect a start date of January 12, 2003. City Administrator Miller read the addition to the Resolution. The motioner and seconder agreed to the amendment. Ayes - 4 Nays - 0 Motion carried. G. Presentation of MMKR's Independent Accountant's Report on Applying Agreed-Upon Procedures and Resolution 5916 Accepting the Report Finance Director Hansen indicated that during 2001 the City engaged MMKR to conduct an audit and report on agreed upon procedures. In the fall of 2001 there was an initial report issued to Council and this will be a final report on the agreed upon procedures. He then introduced Aaron Wilson from MMKR who was present to make a presentation on the report to Council. Mr. Wilson addressed the Council and presented the report on agreed upon procedures. • Mr. Wilson mentioned that the report identified items as potentially questionable if financial activity occurred that was not specifically outlined in the contracts. Mr. Wilson indicated the City paid the Fire Department $35,649 for service fees for the first 10 months of 2001 and has not been invoices for the remaining two months. The contract from 1999 states that the amount should not exceed $35,000 but that would be adjusted upward utilizing the CPI that amount in 2001 would be $37,206. Mr. Wilson indicated another item is there is a contract provision for renegotiating for service fee if inspections increased by 10% but that does not apply as the contract was not renegotiated. Mr. Wilson indicated that the City was invoiced $520.00 for educational expenses and $1,314 for mileage charges and the contract does not address whether the charges are appropriate or if they should be included. Mr. Wilson indicated the contract does not address the calculation of the fee and MMKR recommends that the City should include the method being used to determine the charge such as an hourly rate. He then said that, in reviewing the invoices, it appears that $30.00 per hour was used but that was not identified in the contract. Mr. Wilson indicated the fire inspection contract was effective July 24, 1996 and expired in 1997 . with a 90-day grace period and, since he is not aware of renewals, MMKR assumed the contract was not binding. He then said that, although under the assumption that the contract had expired,