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HomeMy WebLinkAbout3191RESOLUTION NO. 3191 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH THE PROFIT RECOVERY GROUP, COMMERCIAL DIVISION TO PROVIDE ACCOUNTS PAYABLE AUDIT AND RECOVERY OFOVERPAYMENTS. ' WHEREAS, it would be in the City's best interest to have an external review of the accounts payable system and disbursements; and WHEREAS, The Profit Recovery Group will not bill the City unless they find an overpayment and collect on our behalf. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS: Section 1. The Mayor and the City Clerk of the City of Auburn are hereby authorized to execute a professional service agreement with The Profit Recovery Group, Commercial Division, for the purpose of performing an accounts payable audit for the City of Auburn. A copy of which is attached as Exhibit "A" and incorporated by reference in this Resolution. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Resolution No. 3191 April 3, 2000 Page 1 DATED and SIGNED this 3rd day of April, 2000. INTRODUCED: APril 3, 2000 PASSED: APril 3, 2000 APPROVED: April 3, 2000 CITY OF AUBURN IN • ~o CHARLES A. BOOTH MAYOR ATTEST: G~GZ~1 ~ Dani Ile E. Daskam, City Clerk APPROVED AS TO FORM: ~ , i Michael J. Reynolds, City Attorney PUBLISHED: ~lIq Resolution No. 3191 April 3, 2000 Page 2 Professional Service Agreement Agreement dated 1l-l 3 , 2000 between The Profit Recovery Group, Commercial Division located at 3 831 Camino Capistrano, Suite 200, San Juan Capistrano, CA 92675 (herein called "Firm"), and City of Auburn located at 25 West Main, Auburn, WA 98001-4998 (herein called "ClienY'). In consideration of the mutual promises herein contained, Firm and Client agree that: 1. SCOPE OF SERVICES During the term of this Agreement, Firm shall, to the best of its ability and skill, perform an audit of ClienYs disbursements, including verification of price terms and conditions, and related regulatory matters in order to identify recoveries on behalf of the Client. Client will provide Firm with disbursement data for the three previous years and Firm will use its patented ScanSearchT"" technology to review one hundred percent of ClienYs transactions and create the audit tools and analytical reports needed to perform an efficient and effective audit. Firm's major objective will be to identify overpayments made by Client when paying suppliers' invoices for inventory, supplies, services, capital projects, and other expenses. The audit will identify payment errors including, but not limited to: duplicate payments, pricing errors, missed rebates or discounts, unrecorded purchase returns, unnecessary escheatment, sales tax and other recoveries creating economic benefit for Client. Client will notify Firm in advance if there are any particular areas to be excluded from the Scope of Services. This audit will be performed on a contingency basis where a percentage of the recovery will be earned by the Firm. The audit will be compteted without any out of pocket costs to Client, and with no disruption to supplier relationships. Firm will pull and re-file all supporting documentation required to validate each recovery, and will require minimal support from ClienYs staff. Such services shall be rendered by Firm as an independent contractor and not as an employee of Client. The scope of this agreement shall include all previous time periods up to, but not including, 90 days prior to the commencement of the audit. However, the 90 days shall be a moving period of time based upon the length of the audit. 2. PAYMENT RATES AND BILLING As compensation for services to be performed by Firm hereunder, Client will pay Firm Fifty-percent (50%) of the amount recovered. Recovery is defined as: (1) refund checks received from ClienYs suppliers, (2) debits approved by ClienYs suppliers and subsequently processed by Client, and (3) accounting entries or offsets or credits that reduce current or future liability and were identified by Firm for the Client. Firm shall bear all of the incidental expenses and costs associated with performing the audit. If collection efforts are pursued, Firm and Client agree to share net recoveries as a result of such effort. Firm will invoice Client only after Client has recorded the recovery. Invoices submitted by Firm will make reference to this Agreement or otherwise identify the invoice in such a manner as Client may require and provide complete supporting detail. The payment rates are based on the complete Scope of Services described above. Client agrees that it will not disclose any elements of this fee structure to any other third parties. 3. CONFIDENTIAL INFORMATION Firm shall preserve as confidential all information pertaining to ClienYs business and all technical and proprietary information obtained from Client in the performance of this Agreement. At no time will any Client documentation leave the ClienYs premises. 4. TERMINATION This Agreement may be terminated at any time by either party upon ten (10) days written notice to the other party. In the event of such termination, Client shall have no further obligation to Firm except to make any payments which may have theretofore become due. Resolution 3191 FKYv.bi.t "A" Page 1 5. REPORTS Firm shall furnish reports to Client from time to time, when requested, in such form and number as may be required by Client, concerning activities of Firm under this Agreement, and shall make a final report or reports as may be required by Client. 6. ADDENDUM Client agrees to process all recoveries through its system within ten (10) business days upon receipt from Firm and supply Firm with periodic progress reports regarding collection of audit recoveries. Client agrees to actively pursue all sales tax recoveries that have been authenticated by an appropriate state agency. Firm agrees to abide by all laws and use only ethical means to identify and collect over payments. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. Proft Recovery Group, Commercial Division City of Auburn by by 1~.~Da 1 ~ title title MaYor date date APril 3, 2000 :Zeds Fo . Pti:chael J. -11--ynolds City Attorney Resalution 3191 Exhibit "A": Page. 2.