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HomeMy WebLinkAboutItem 06.cDate: May 2, 2011 AGREEMENT BETWEEN LAKEVILLE ARENAS AND THE CITY OF LAKEVILLE FOR FINANCIAL MANAGEMENT SERVICES Proposed Action Staff recommends adoption of the following motion: Move to approve the Agreement between Lakeville Arenas and the City of Lakeville for Financial Management Services Approval of the Agreement will result in the continuation of financial, payroll, human resources and technology support for the Lakeville arena's. Overview Section 6 D of the Joint Powers Agreement for the Lakeville Arenas appoints the City of Lakeville as the fiscal agent for the Lakeville Arenas. The proposed Agreement between Lakeville Arenas and the City of Lakeville for Financial Management Services delineates the duties and responsibilities of the fiscal agent. The Agreement also states that the City of Lakeville shall receive compensation for its services in the amount of , 00 per for 32,Ovv rye year nor three years. This is a renewal of an Agreement that expires December 31, 2011. The term of the proposed Agreement expires on December 31, 2014. Primary Issues to Consider • Scope of work is defined in Exhibit A of the Agreement. Supporting Information • None en • �-`eller, Finan_ °'Sirector Item No. Financial Impact: - $32,000 budgeted: Yes Source: General Fund Related Documents (CIP, ERP, etc.): Notes: AGREEMENT BETWEEN LAKEVILLE ARENAS AND THE CITY OF LAKEVILLE FOR FINANCIAL MANAGEMENT SERVICES THIS AGREEMENT is made and entered into by and between the Lakeville Arenas and the City of Lakeville, Minnesota (Lakeville). WHEREAS, Section 6D of the Joint Powers Agreement for Lakeville Arenas between the City of Lakeville and Independent School District 194 states "The City shall act as fiscal agent for the Board and shall maintain a separate fund for the purpose of operating the program. "; and WHEREAS, Minn. Stat. § 47L59 authorizes two or more governmental units, by agreement, to jointly or cooperatively exercise any power common to the contracting parties or any similar powers; and WHEREAS, the Lakeville Arenas is in need of financial management services to conduct its operations and Lakeville is willing to provide financial management services to the Lakeville Arenas during the term of this Agreement. NOW, THERFORE, in consideration of the mutual promises and benefits that each party shall derive from this agreement, and other good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as follows: ARTICLE I PURPOSES This Agreement has been executed by the parties for the sole purpose of designating Lakeville to receive and manage Lakeville Arenas funds. provide any and all budgetary. accounting, payroll services and information technology services necessary and convenient for the Lakeville Arenas, including contributions and grant monies awarded to the Lakeville Arenas and to administer receipts and payments of funds required under contracts to which the Lakeville Arenas is a party. Section 2.1 Budget and Accounting Services ARTICLE II SERVICES A. Lakeville shall provide budgeting and accounting services necessary to manage Lakeville Arenas funds. The financial services to be provided by Lakeville are listed in Exhibit A, Scope of Work. and include any recordkeeping or bookkeeping associated with these services. Lakeville shall establish one or more separate funds for these monies and all interest earned from Lakeville Arenas funds shall be credited hack to those same funds. All pertinent books, records, documents, and accounting procedures and practices shall be maintained by Lakeville and made available to the Lakeville Arenas, its members, and the State Auditor upon reasonable notice and shall be retained for a period of six years. B. Funds provided to Lakeville by the Lakeville Arenas pursuant to this Agreement will be held in a separate account or accounts, and all interest earned on these accounts will be the property of the Lakeville Arenas. Section 2.2 Accountability for Funds. All funds shall he accounted for according to generally accepted accounting principles. The Lakeville Arenas may request a report pertaining to the budgeting and accounting services provided by Lakeville pursuant to this Agreement. Section 2.3 Indemnification. The Lakeville Arenas agrees to defend, indemnify and hold harmless Lakeville from all claims, demands, and causes of action of any kind or character, including the cost of defense thereof, resulting from the acts or omissions, including negligent acts or omissions, of Lakeville's elected officials, employees and agents in providing services under this Agreement. Nothing in this Section is intended by the parties as a waiver of any liability limits or immunities that the parties are otherwise entitled to under law. The requirements and obligations of this Section shall survive the termination or expiration of this Agreement. ARTICLE III TERM OF AGREEIVIEN T Section 3.1 Tenn. The term of this Agreement shall be from January 1, 2012 notwithstanding the dates of the signatures of the parties, and continue through December 31, 2014, unless terminated earlier as permitted by Section 3.2 of this Agreement. Section 3.2 Termination. This Agreement shall terminate upon the earliest of the following events: a. Upon written agreement of all parties; b. At 11:59 pm December 31, 2014; c. Upon sixty days written notice of intent to terminate by either party, delivered to the other party. Section 3.3 Distribution of Property. Upon termination of this Agreement, Lakeville shall distribute to the Lakeville Arenas any property or money belonging to the Lakeville Arenas. ARTICLE IV COMPENSATION The Lakeville Arenas shall make payments to Lakeville for services provided in the following amounts: • For calendar year 2012 the amount will be $32,000 of which $16,000 will payable on or before June 30, 2012 and $16,000 will be payable on or before December 31, 2012. • For calendar year 2013 the amount will be $32,000 of which $16,000 will payable on or before June 30, 2013 and 516,000 will be payable on or before December 31, 2013. • For calendar year 2014 the amount will be $32,000 of which $16,000 will payable on or before June 30, 2014 . and $16,000 will be payable on or before December 31, 2014 The monthly payments to Lakeville do not include LOGIS payroll costs. The Lakeville Arenas shall be solely responsible for all LOGIS fees related to Lakeville Arenas activities. ARTICLE V CONTACTS The contact persons for purposes of day -to -day operations and notifications are as follows, unless either party notifies the other in writing of a change in authorized contact person: Lakeville Arenas Shayne Ratcliff Lakeville Arenas Manager 20195 Holyoke Avenue Lakeville, MN 55044 IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated below. LAKEVILLE ARENAS Date CITY OF LAKEVILLE By: Mark Bellows, Mayor Date: Lakeville Dennis Feller Lakeville Finance Director 20195 Holyoke Avenue Lakeville, MN 55044 City Clerk EXHIBIT A A. Scope of Work to be Performed Payroll Process payroll on a bi- weekly basis. Includes reviewing time cards for accuracy, printing payroll checks, posting payroll journal entry to financial system and administration of the ACHfiile for automatic deposit of payroll wages. Compute payroll taxes and file applicable payroll taxes using electronic funds transfers. State withholding taxes — Bi- weekly Federal withholding taxes — Bi- weekly PICA/Medicare — Bi- weekly PERA — Bi -weekly Complete payroll tax forms on a monthly /quarterly basis. Federal Form 941 — Quarterly State fax f irni - Quarterly PERA — Monthly Maintain leave accruals. Process year -end W -2 fax statements and applicable tax returns. Maintains all employee information in accordance with records retention schedule and other regulatory agencies. Responds to employee questions regarding payroll and benefits. Prepares special reports' as needed for Administrator and Fiscal Agent — especially as it relates to budget, cost analysis studies and benefits administration. Assist workers' compensation administrators in annual payroll audit Reconcile payroll imprest fund on a monthly basis. Financial System Administration Prepare monthly financial report for staff and governing body review. Prepare all monthly, quarterly and annual journal entries. All revenue and A/R journal entries Cash and Investment activity Fear -end adjustments Review general ledger activity for accuracy. Maintain Capital Asset records. Assist with Grant project accounting. Also assist Lakeville Arenas staff and others in compiling grant information. Prepare bank reconciliation on a monthly basis. Payroll Checking Account General Checking Account Investment Accounts Assist with solicitation and evaluation of audit service proposals. Assist independent auditors in conducting annual audit. Prepare all audit confirmations. Prepare all financial working papers for annual audit, including but not limited to: Cash and Investment reconciliation Accounts Receivables — Customer /NSF's /Miscellaneous Revenues Accounts Receivables — Customer accounts at collection agency Determine sufficient allowances for bad debts Interest income /receivable (including market value adjustments) Prepaid expense determination Salaries Payable (including leave accruals) Other Liabilities Sales Tax (if applicable) Vendor Payables Prepare revenue and expense work papers supporting annual totals Prepare expenditure request for financial support payments. Prepare special financial reports as requested by Administrator, governing body and other entities, Includes, but not limited to, providing detailed transaction information. Provide advice and guidance on purchasing and investment policy. Accounts Receivable Receives all payments and processes daily deposit. Processes all credit curd transactions. Accounts Payable Receives' vendor invoices and submits to Administrator for approval. Processes vendor invoices for payment on a timely basis. Reviews coding for accuracy. Prepares all checks. Maintains all vendor files in accordance with records retention schedule. Prepares check register for approval by governing body. Budget Assist in the preparation of the annual budget. Treasury Management Invest agency fiends in accordance with Investment Policy. insurance Monitor and calculate prepaid balances on a monthly basis. Other Fiscal Agent is responsible JOr maintenance of all financial and payroll information in accordance with approved records retention schedule and regulations of other governing bodies as it relates to records retention. Fiscal Agent nntst submit all records for review in accordance with Data practices Laws. Fiscal Agent must have knowledge gall state and federal laws with respect to financial reporting and payroll administration. Fiscal Agent is responsible for suhrnitting all financial and payroll reports IC state agencies including but not limited to State Auditors Office. Information Technology support services.