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02-0416_MORELAND & ASSOCIATES, INC_Personal Services Agreement• ATTACHvUNT 1 PERSONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this 16th day of April, 2002, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and Moreland & Associates, Inc. (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant regarding the Citys proposal to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34; and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1 Scope of Work. The scope of work to be performed by Consultant shall consist of those tasks as set forth in Exhibit 'A" attached and incorporated herein by reference. Consultant warrants that all of its services shall be performed in a competent, professional and satisfactory manner and in accordance with the prevalent standards of its profession. Section 2. Term. This Agreement shall commence on the effective date of this Agreement and services required hereunder shall be completed by no later than (See Exhibit "A"). Section 3. Compensation. 3.1 Amount. Total compensation for the scope of services for this Project shall not exceed ($29,000), as set forth in Exhibit "A," attached and incorporated herein by reference. 3.2 Rate Schedule. The services shall be billed to the City at the hourly rate set forth in Exhibit "A," attached and incorporated herein by reference. Included within the compensation are all the Consultant's ordinary office and overhead expenses incurred by it, its agents and employees, including meetings with the City representatives and incidental costs to perform the stipulated services. Submittals shall be in accordance with Consultant's proposal. 0 0 3.3 Method of Payment. Consultant shall submit monthly invoices based on total services which have been satisfactorily completed and specifying a percentage of projected completion for approval by the City. The City will pay monthly progress payments based on approved invoices in accordance with this Section. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. 3.4 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to City. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. Section 6. Changes to Scope of Work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) it has investigated the proposed construction site, including the location of all utilities, and is aware of all conditions there; and (3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those 0 0 inherent in the work or as represented by City, it shall immediately inform City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the contract period, Consultant shall have delivered to City at least one (1) copy of any final reports and architectural drawings containing Consultant's findings, conclusions, and recommendations with any support documentation. All reports submitted to the City shall be in reproducible format. All services to be rendered hereunder shall be subject to the direction and approval of the City. Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. All working papers shall be the property of the consultant. Section 13. Indemnity. Consultant agrees to protect, defend and hold harmless City, its elected and appointed officials and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person or damage to property or interference with use of property and for errors and omissions committed by Consultant arising out of or in connection with the work, operation or activities of Consultant, its agents, employees and subcontractors in carrying out its obligations under this Agreement. 0 0 Section 14. Insurance. Insurance required herein shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A- Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period. 14.2 Comprehensive Automobile Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non -owned vehicles in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period 14.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement to the Consultant's general liability and umbrella liability policies to the City Clerk's office for certification that the insurance requirements of this Agreement have been satisfied. 14.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the City Clerk's office for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation. Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. City and Consultant shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to the other party In addition, this Agreement may be terminated notice to the other party of a material breach of cure the breach of contract, then the agreement ten (10) day cure period. Section 16. Notice. for cause by providing ten (10) days' contract. If the other parry does not may be terminated subsequent to the All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Director of Administrative Services To Consultant: Moreland & Associates, Inc. 1201 Dove Street, Suite 680 Newport Beach, CA 92660 0 Section 17. Attorneys' Fees. LJ If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Dispute Resolution. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO By: w4 & Diane Bathgate, Mubr MORELAND & ASSOCIATES, INC. ATTEST: Margaret R. Monahan, City Clerk APPROVED AS TO FORM: By: John R. gaw, City Attorney Moreland CERTIFIED PUBLIC ACCOUNTANTS March 21, 2002 Ms. Cynthia L. Russell Director of Administrative Services City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Ms. Russell: EXHIBIT A 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CAUFORNIA92660 (949) 221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760) 752-3390 We are pleased to submit this proposal to provide assistance to the City of San Juan Capistrano for the implementation of Governmental Accounting Standards Board (GASB) Statement Number 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments. GASB Statement 34 has been described as the most significant change in the history of governmental accounting. As we have discussed with you, we have formed an "Accountaneering Team" which includes Psomas, a leading engineering firm providing public agencies with services in public works, water and natural resources, transportation, survey and information systems. Additional consultants, such as Marshall & Stevens, Inc., one of the oldest and most respected full- service independent valuation firms in the United States, are available to provide special expertise if needed. The experience of our Accountaneering Team and the fact that we have been the auditors for the City for the past several years place us in a unique position to provide these services BACKGROUND GASB Statement 34 was issued in June 1999 and must be implemented by the City for the year ending June 30, 2003. Although you may take up to an additional four years to retroactively report major general infrastructure assets, most cities want to record prior infrastructure at the same time that the other provisions of GASB Statement 34 are implemented. The implementation of GASB Statement 34 involves the formation of a GASB 34 Implementation Committee, which you have already formed. The purpose of the Committee is to identify the implementation decisions that need to be made and to arrange for the gathering of information necessary to make the decisions. The Committee may wish to implement GASB Statement 34 on a test basis by converting for internal use only, the June 30, 2002, financial statements. The purpose of the test conversion is to see in advance of publication how the financial statements will appear as the result of making decisions one way or another. Ms. Cynthia L. Russell • • Director of Administrative Services City of San Juan Capistrano March 21, 2002 Page 2 Based on our initial meeting with your Implementation Committee, you have already made some important decisions, including recording the smallest amount of infrastructure allowed under GASB Statement 34. We believe you have also decided to use the depreciation method for your infrastructure assets and to generally make those decisions that will result in the least cost of implementation. SCOPE OF WORK Our approach to this engagement is founded on the principle of thinking and working as an extension of City staff. As such, we will work with your Implementation Committee in identifying the decisions that need to be made and in gathering the information necessary in making the decisions. Some of the decisions that you have already made or that need to be made include: 1. Is a test conversion worthwhile? 2. Do you want to report some or your entire infrastructure at the date of implementation? When you report prior infrastructure, do you want to report all existing infrastructure or just major infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements after June 30, 1980? 4. How do you define your infrastructure networks and subsystems? 5. How is the amount of infrastructure networks and subsystems to be determined? 6. What are the useful lives of your general fixed assets and of your infrastructure fixed assets if you choose not to use the "preservation method"? 7. Is the preservation method appropriate for your City? Some of the specific steps to be accomplished in implementing GASB Statement 34 are as follows: Using the information provided by your engineers, determine estimated historical cost of the infrastructure assets. Also compute accumulated depreciation and depreciation expense. 2. Determine useful lives of general fixed assets and compute accumulated depreciation and depreciation expense. 3. Determine the distribution of depreciation expense within the Statement of Activities. Ms. Cynthia L. Russell • • Director of Administrative Services City of San Juan Capistrano March 21, 2002 Page 3 4. Review the current fund structure in light of the new fund types established by GASB Statement 34. 5. Identify major funds for reporting in the fund based financial statements. 6. Determine the allocation of revenues between program revenues and general revenues within the Statement of Activities. 7. Divide the government -wide net assets into the three categories of net assets. 8. Convert the governmental funds from the modified accrual basis of accounting to the accrual basis of accounting. 9. Prepare the reconciliation of the fund balance in the fund based financial statements to the net assets in the government -wide financial statements. 10. Prepare the reconciliation of the net change in fund balances of the governmental funds to the change in net assets of the governmental activities in the government -wide financial statements. 11. Assist you in identifying any extraordinary items or special items that require separate disclosure. 12. Assist you in the preparation of the Management Discussion and Analysis. 13. Assist you in revising your footnote disclosures to conform with GASB Statement Number 38, Certain Financial Statement Note Disclosures. 14. Assist you in explaining the revised financial statements to your City Council and the other members of City management. It is important to note that these changes not only impact the preparation of the City's Comprehensive Annual Financial Report, but also the preparation of your separate reports for your three component units. OUR APPROACH TO DETERMINING PRIOR INFRASTRUCTURE Our approach to determining the amount of prior infrastructure to be recorded will be to meet with your Implementation Committee to identify the City's infrastructure networks and/or subsystems. After we have identified together which networks and/or subsystems need to be recorded based upon the criteria of GASB Statement 34, we will ask your staff to make estimates of the quantity of assets, dates acquired, useful lives and current replacement cost. From that information we can calculate an estimate of the original cost and accumulated depreciation. This general approach will be used to determine the amount of all infrastructure assets, annual depreciation expense and accumulated depreciation. Ms. Cynthia L. Russell • Director of Administrative Services City of San Juan Capistrano March 21, 2002 Page 4 FEES FOR OUR SERVICES Fees for our services are based on the level of work performed and the total number of hours necessary to provide the service. Our fees will be based on the following hourly rates, plus necessary out-of-pocket expenses including the services of our consulting engineer, Psomas: Level of Work Performed Hourly ate Partner $124 Manager 102 Senior Accountant 67 Assistant Accountant 61 You have indicated that your staff will not be available to accomplish very much of the above work. Based on that information, we estimate that our fees will not exceed $29,000. This fee estimate includes the conversion of two component units, but it does not include the cost of a test conversion. Fees for our services are billed on a monthly basis as the services are provided. Each invoice will show details of hours and expenses in a format that is acceptable to the City. STAFFING I will direct this project with assistance provided by Ms. Kathryn Beseau, and our professional staff. Together we have considerable knowledge of your City as well as considerable experience with the implementation of GASB Statement 34. My resume is enclosed for your reference. Thank you for the opportunity to present this proposal. We look forward to working with you and your staff in implementing GASB Statement 34, and in assisting you in explaining these significant changes to your City Council and the other members of City management. Very truly yours, MORELAND & ASSOCIATES, INC. Michael C. Moreland, Partner MCM:ms cc: Kathryn Beseau ACCEPTANCE BY THE CITY OF SAN JUAN CAPISTRANO M DATE: RESUME OF MICHAEL MORELAND Mr. Moreland was a member of the GASB Task Force on the New Reporting Model. He was the only CPA practitioner in California to be a member of the Task Force. The Task Force met one or two days each year in New York with the Governmental Accounting Standards Board and their staff to advise the Board on the project and to react to suggestions and positions taken by the Board. Throughout the project, the Task Force reviewed concept papers, drafts of documents prepared by the Board and their staff, and generally served as a sounding board for ideas considered by the Board. The project resulted in the issuance of GASB Statement No. 34, in June 1999. Since the issuance of GASB Statement No. 34, Mr. Moreland has made presentations on the subject to the Alameda County City Managers Association, the Southern California Chapter of the American Public Works Association (twice), the Annual Conference of the California chapter of the American Public Works Association, and the Orange County Municipal Public Works Association. Additionally, he has made presentations on GASB Statement No. 34 to the San Diego Chapter, two Los Angeles Chapters and the Orange County Chapter of the California Society of Municipal Finance officers. Mr. Moreland is advising the AICPA in revisions to their State and Local Government Industry Audit Guide as a result of the issuance of GASB Statement No. 34. Last year Mr. Moreland was part of a panel presentation on GASB Statement No. 34 for the Government and School Districts conference offered by the California CPA Education Foundation. Mr. Moreland and his staff have developed a two-day course on implementing GASB Statement No. 34. The course is being offered at various times and at various locations in California. The class is taught with an informal interactive format using a PowerPoint presentation as a guide. It is a "hands-on how-to" course for California cities, special districts and their auditors. Mr. Moreland assisted the City of Los Angeles and Psomas, an engineering firm, in developing an infrastructure model that provides information for both the depreciation approach and the modified approach in compliance with GASB Statement No. 34. The City selected their 408 bridges for the pilot project. Michael Moreland will assume overall responsibility for services provided to the City. Mr. Moreland has over twenty years of experience in performing financial and compliance audits for government. Some of the clients served include: - Cities of Bell Gardens, Brea, Calabasas, Canyon Lake, Culver City, Cypress, Dana Point, Delano, Escondido, Fountain Valley, Fullerton, Garden Grove, Glendale, Glendora, Healdsburg, Irvine, La Canada Flintridge, La Mirada, La Palma, Laguna Beach, Laguna Hills, Adelanto, Los Alamitos, Lynwood, Manhattan Beach, Mission Viejo, Monrovia, Montebello, Monterey Park, Oceanside, Pico Rivera, Pomona, Poway, Rialto, San Fernando, San Juan Capistrano, San Marcos, Santa Clarita, Santa Fe Springs, Solana Beach, South Lake Tahoe, Stanton, Temecula, Torrance, Tulare, Tustin, Villa Park, Watsonville, West Covina and Yorba Linda, California. Community Redevelopment Agencies of the cities of Bell Gardens, Brea, Calabasas, Culver City, Cypress, Dana Point, Escondido, Fountain Valley, Fullerton, Glendora, Healdsburg, La Canada Flintridge, La Mirada, La Palma, Lynwood, Mission Viejo, Monrovia, Montebello, Oceanside, Pico Rivera, Pomona, Poway, Rialto, San Buenaventura, Calabasas, San Juan Capistrano, San Marcos, Santa Clarita, Santa Fe Springs, Solana Beach, Stanton, Temecula, Tulare, Tustin, Watsonville, West Covina and Yorba Linda. Irvine Ranch Water District. Orange County Sanitation District. Los Alisos Water District. Triunfo Sanitation District. - Las Virgenes Municipal Water District. South East Regional Reclamation Authority. Orange County Cities Risk Management Authority (OCCRMA). Rossmoor Community Services District. Santa Margarita -San Luis Rey Watershed Planning Agency. - California Avocado Commission. West San Gabriel Valley Consortium. Central Orange County Fixed Guideway Agency. Orange County Council - Boy Scouts of America. California Inland Empire Council - Boy Scouts of America. Mr. Moreland is very active in organizations that relate to the public sector industry. His involvement includes: - California Society of Certified Public Accountants: - Chairman of the State Governmental Accounting and Auditing Committee. - Member of State Controller's Advisory Committee for Redevelopment Compliance Guidelines. - Editorial consultant and author for seven years of a regular column on governmental accounting and auditing in Outlook Magazine, a publication of the California Society of Certified Public Accountants. - California Society of Municipal Finance Officers (CSMFO): - Associate member; regularly attends monthly section meetings and annual conferences. - Frequent speaker at section meetings and annual conference. Regular instructor at weekend training seminars. - Participates in the preparation and instruction of the Career Development Program "How to Prepare an Award Winning CAFR". - Participates in the review of annual financial reports and member of three-person final review committee under the California Award Program. - Government Finance Officers Association: - Associate member and frequent instructor of Professional Development Programs. - Member of National Council on Governmental Accounting Grant Accounting Task Force which developed the exposure draft that became NCGA Statement 2, Grant Entitlement, and Shared Revenue Accounting and Reporting By State and Local Governments. Other Organizations and Activities: - Chairman of California Committee on Municipal Accounting. - American Institute of Certified Public Accountants. - Member GASB Task Force on the Financial Reporting Model. - Member GASB Small Governments Task Force. Mr. Moreland received a Bachelor of Business Administration degree in Accounting from Loyola Marymount University and holds CPA certificates from the State of California and several other states. Much of Mr. Moreland's continuing professional education requirement is fulfilled through writing articles and making presentations on various governmental accounting subjects for GFOA, CSMFO and the League of California Cities. He also attends numerous CSMFO chapter and section meetings, as well as the annual conference. INSURED NSURERA:AMERICAN STATES INSURANCE CO. MORELAND & ASSOCIATES NsuRERB:PHILADELPHIA INDEMNITY INS C_0. 1201 DOVE ST # 680 INSURER NEWPORT BEACH, CA 92660 INSURER D. 949-221 —0025 INSURER E: [:OVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDIIION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ACORDm %DERTIFICA OF LIABILITY INSURA E LIMITS 02BO769819 3-26-05 ;3-26-06 EACH OCCURRENCE $1,000,000_ A 3p 1(6 os PRODUCER FIRE DAMAGE (Any one fire) $1 000,000 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION PHILIP B. 2081 BUSINESS ROBINSON INSURANCE CENTER DR. # 200 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. IRVINE, CA 92612 9494749300 Y ' INSURERS AFFORDING COVERAGE - INSURED NSURERA:AMERICAN STATES INSURANCE CO. MORELAND & ASSOCIATES NsuRERB:PHILADELPHIA INDEMNITY INS C_0. 1201 DOVE ST # 680 INSURER NEWPORT BEACH, CA 92660 INSURER D. 949-221 —0025 INSURER E: [:OVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDIIION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE POLICY NUMBER �p LAY EFFECTIVE OLIOY EXPINATM)N DA LIMITS 02BO769819 3-26-05 ;3-26-06 EACH OCCURRENCE $1,000,000_ A N_ COMMERCIAL GENERAL�LIABILITY CLAIMS MADE '�] OCCUR FIRE DAMAGE (Any one fire) $1 000,000 MED EXP (My one person) $1 1101 0 6 0 PERSONAL 6 ADV INJURY $1 '000, 000 Y EBL - GENERAL AGGREGATE PRODUCTS - COMPrbP AGG $2, UOU, 000 S 1 O O , 0 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- LOC AUTOMOBILE UABILRY ANY AUTO COMBINED SINGLE LIMIT (Ea eccidenq �, § 0 00,000 BODILY INJURY (Per perwn) - $ ALL OWNED AUTOS SCHEDULED AUTOS A _ Nf HIRED AUTOS NON -OWNED AUTOS 02BO769819 3-26-05 3-26-06 BODEVINURv (Per accident) IIII—.PROPERTY — ROPER DAMAGE (Per accident) GARAGE LpBIl1TY EE ANY AUTO AUTO. ONLY - EA ACCIDENT § OTHER THAN EA ACC $ AUTO ONLY, AGG— A EXCESS , LIABILITY ✓ OCCUR J CLAIMS MADE 01 CT001899 3-26-05 3-26-06 EACH OCCURRENCE $1 , 000, 000 AGGREGATE $1 '000,000 DEDUCTIBLE j -� RETENTION $ -- I $ -- --- ------ --s -- — - WORKERS COMPENSATION AND EMPLOYERS LIABII$TY WC STATU-ER DTH - T RY LIMITS E EACH ACCIDENT $1 , 000, 000 A E.L. DISEASE - EA EMPLOYEE $1 , 000, 000 01WCO27275 4-1-05 4-1-06 ELDISEASE'$1 '000,000 OTHER I B PROFESSIONAL PHSD094821 I4-1-05 4-1-06 2,000,000 DESCRIPTION OF OPERATIONSIIACATIONSIVEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPECIAL PROVISIONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY LIMITED TO CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY l7CHII-HoAIC MVLVGH I Y I ADDITIDNAL INSURED; INSURER LETTER: H GANGELLA I HUN CITY OF SAN JUAN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCEIIED BEFORE THE EXPIRATION CAPISTRANO & THE SAN JUAN RECEI SBTNEREOF, THE ISSUING INSURER WILL ENWANDR—M MAIL 30 DAYS WRITTEN CAPISTRANO REDEVELOPMENT NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, Bb PRIMB AGENCY MAR 2 1 32400 PASEO ADELANTO SAN JUAN CAPISTRN CA 92675AUTHOR®REPRESENTATIVE PLANNING EPT. ACORD 25-S (7/97) O ACORD Policy Number: 02BO769819 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED — MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule 1. Name of Person or Organization (Additional Insured): CITY OF SAN JAUN CAPISTRANO AND THE CAPISTRANO REDEVELOPMENT AGENCY, ITS OFFICERS, EMPLOYEES, AGENTS, VOLUNTEERS AND REPRESENTATIVES (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section 11) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, Maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by you or on behalf of the person or organization shown in the Schedule. CG 20 11 01 96 Copyright, Insurance Services Office, Inc., 1994 Page 1 of 1 u ',32400 PASEO ADELANTO BAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www. sanjuancapestrano. org March 14, 2005 Moreland & Associates 1201 Dove Street #680 Newport Beach, CA 92660 Jwaa 0 In( 01AOAATfI fSTAIOSH fO I 1961 1776 MEMBERS OF THE CITY COUNCIL SAMALLEVATO DIANE BATHGATE WYATT HART JOE SOTO DAVID M. SWERDLIN RE: Compliance with Insurance Requirements — City and Agency Auditing Services The following insurance documents are due to expire: ✓ General Liability Certificate 03/26/2005 ✓ General Liability Endorsement Form naming the City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency as additional insureds. ✓ Automobile Liability Certificate 03/26/2005 ✓ Workers Compensation Certificate 04/01/2005 ✓ Other Information Please list the City and Community Redevelopment Agency as certificate holders. Please submit updated documentation to the City of San Juan Capistrano, attention City Clerk' office, 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 by the above exp' at n dates. If you have any questions, please contact me at (949) 443-6309. Secretary cc: Conrad David, Accounting Manager San Juan Capistrano: Preserving the Past to Enhance the Future ej Printed on rec sled paper Ah AG -ORD., CERTIFICA OF LIABILITY INSURANCE 2-- 26-04 °26-04 PRODUCER. PHILIP B. ROBINSON INSURANCE 2081 BUSINESS CENTER DR. # 200 IRVINE, CA 92612 9494749300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURED MORELAND & ASSOCIATES 1201 DOVE ST # 680 NEWPORT BEACH, CA 92660 949-221-0025 INSURER AAMERICAN STATES INSURANCE CO. INSURER B: PHILADELPHIA INDEMNITY INS CO. INSURER C: NSURERD: INSURER E. COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. 'NSR LTRDATE TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE OrACOrfYl POLICY EXPNATIOX DATE (MMMONY) DAIS GENERAL LIABILITY 02BO769819 3-26-04 3-26-05 EACH OCCURRENCE $1,000,000 FIRE DAMAGE (Any ane fire) $1, 000, 000 A V COMMERCIAL GENERAL LIABILITY CLAIMS MADE �T OCCUR MED EXP (Any ane person) 510 , 0 00 PERSONAL S ADV INJURY $1, 000, 000 EBL GENERAL AGGREGATE s2,000,0001 GENL AGGREGATE LIMIT APPLIES PER. PRODUCTS - COMPNP AGO $1, 000, 000 POLICY FRP LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMB 3 ANY AUTO (Ea accident) 1,000,000 BODILY INJURY $ ALL OWNED AUTOS SCHEDULED AUTOS (Per person) BODILY INJURY A HIRED AUTOS 02BO769819 3-26-04 3-26-05 NON -OWNED AUTOS (Per accident $ PROPERTY DAMAGE $ _ (Per accident GARAGE LIABILITY AUTO ONLY - EA ACCIDENT S OTHER THAN EA ACC S ANY AUTO AUTO ONLY: AGO S EXCESS LABILITY EACH OCCURRENCE $1, 000,000 A 71 OCCUR �GI-XMSMADE OICT001899 3-26-04 3-26-05 AGGREGATE $1,000,000 s $ DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND H - I T SY I! STATU- OTER EMPLOYERS' LIABILITY E.L. EACH ACCIDENT $1,000, 000 E.L. DISEASE - EA EMPLOYEE $1,000,000 A OIWC925745 4-1-04 4-1-05 E.L. DISEASE -POLICY LIMIT $1 000 000 OTHER B PROFESSIONAL IPHSDO58662 4-1-04 4-1-05 1,000,000 DESCRIPTION OF OPERATKINS20CATIONSIV ICLESIERCLUMONS AWED BY FRDORSEMENTISPECIAL PROVISIONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN THE CITY OF SAN JUAN CAPISTRANO & THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY ARE NAMED AS ADDITIONAL INSUREDS & CERTIFICATE HOLDERS CCIf I11-IGA IC MULLICR I I ADDITIONAL INNIRED: NSURFA LETTER: GANGCLLAIIVIN CITY OF SAN JUAN CAPISTRANO 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 ATTN: CITY CLERK ACORD 25-S (7197) SHOULD ANY OF THE ABOVE DESCREED POLICES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISWNG INSURER WILL EBBELW WM MAI. 3 0 DAYS WRITTEA NOTICE TO THE CERTIFICATE MOLDER NAMED TO THE LEFT, Policy Number: 02BO769819 Commercial General Liability THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule Name of Person or Organization: CITY OF SAN JUAN CAPISTRANO & THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984 PBR PHILIP B. ROBINSON "52 years" GROUP Insurance Agency, Inc. LICENSE N0.0639032 2081 BUSINESS CENTER DR . STE 200 • IRVINE • CA 92612 PHONE: 949/474-9300 • FAX: 949/474-8991 MARCH 1, 2004 CITY OF SAN JUAN CAPISTRANO 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 RE: CERTIFICATE OF INSURANCE - MOORLAND & ASSOCIATES ENCLOSED, PLEASE SEE THE CERTIFICATE OF LIABILITY INSURANCE FOR THE ABOVE SUBJECT. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT OUR AGENCY. THANK YOU. REGARDS, ANDY KHUU • 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) AVAvII'sanjuancapistrano. org February 4, 2004 Moreland & Associates 1201 Dove Street #680 Newport Beach, CA 92660 �son • j�Y,( `IA�111�0 Iso 1961 1776 00 MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE JOHN S. GELFF MATT HART JOESOTO DAVID M. SWERDLIN INTERIM CITY MANAGER PAMELAGIBSON RE: Compliance with Insurance Requirements - City and Agency Auditing Services The following insurance documents are due to expire: ✓ General Liability Certificate 03/26/04 a00- W V` General Liability Endorsement Form naming the City of San Juan Capistrano and the San Juan Capistrano Communitv Redevelooment Agency as additional insureds. A ✓ Automobile Liability Certificate 03/26/2004 c ✓ Workers Compensation Certificate 04/01/2004 ✓ Other Information Please list the City and Community Redevelopment Agency as certificate holders. Please submit updat d documentation to the City of San Juan Capistrano, attention City Cler ' office, 3240 aseo Adelanto, San Juan Capistrano, CA 92675 by the above e ira iontda}esnlf u have any questions, please contact me at (949) 443-6309. Secretary cc: Conrad David, Accounting Manager San Juan Capistrano: Preserving the Past to Enhance the Future 02/17404 TUE 18:22 FAX 949 47491 ROBINSON INSURANCE • p PHILIP B. ROBINSON "52 YEARS" Insurance Agenq , Inc. License #OB39032 7nnl RIMTMFS.0 CFNTFR OR. STE 200. IRVINE. CA 92612 949-474-9300 phone 949-474-8991 fax FACSIMILE COVER SHEET This message is intended for the use of the individual or entity to which R is addressed and may contain information that is privileged or confidential. If the reader of this message Is not the intended recipient or the employee responsible for delivering the message to the intended recipient, you are hereby nodfled that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication In error, please notify our office by telephone, and return the original message to us at the address above via U.S. Postal Service, Thank you. TOTAL PAGES;( 2 ) DATE: 2/17/04 TO: CITY OF SAN JUAN CAPISTRANO FAX: 949-493-1053 PHONE: 949-493-1171 FROM: ANDY KHUU SUBJECT: MORELAND & ASSOCIATES ATTACHED, PLEASE SEE THE CERTIFICATE OF LIABILITY INSURANCE FOR THE ABOVE SUB]ECT. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT OUR AGENCY. THANK YOU. REGARDS, ANDY KHUU X f` l �j �l qti ® 001 C'KA • 0 RBS II PHILIP B. ROBINSON "52 years" GROUP Insurance Agency, Inc. LICENSE NO.OB39032 U911YCbb LtIY 1 CK UK • ,1 C LUU • 1KV11YC • LA PHONE: 949/474-9300 • FAX: 949/474-8991 FEBRUARY 17, 2004 CITY OF SAN JUAN CAPISTRANO CITY CLERK'S OFFICE 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 RE: MORELAND & ASSOCIATES, INC ENCLOSED, PLEASE SEE THE CERTIFICATE OF LIABILITY INSURANCE FOR THE ABOVE SUBJECT. IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT OUR AGENCY. REGARDS, ANDY KHUU ACORD CERTIFICAT F LIABILITY INSURA °"'�`""'-0 03-11-03 PRODUCER PHILIP B. ROBINSON INSURANCE 2081 BUSINESS CENTER DR. # 200 IRVINE, CA 92612 9494749300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURED MORELAND & ASSOCIATES 1201 DOVE ST # 680 NEWPORT BEACH, CA 92660 _ 949=2Z1-0025 INSURER AAMERI CAN STATES INSURANCE CO. INSURER S: PHILADELPHIA INDEMNITY INS CO. INSURER C: INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE POLICY NUMBER P AQEYTE EFFECTIVE POLICY E7IP 10H LIMITS CITY CLERK'S OFFICE GENERAL LIABILITY 02B0769819 3-26-03 3-26-04 EACH occuRRENCE $1,000,000 FIRE DAMAGE (Any we fire) $1, 000, 000 A COMMERCIPL GENERAL LIABILITY CLAIMS MADE IT OCCUR MED EXP (Any one person) $10 ,000 PERSONAL S ADV INJURY 51 , 000, 000 GENERAL AGGREGATE s2 000, 000 GENL AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMPAP AGO $1, 0OO, 000 PR a LOC POLICY 7 JECT AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT (Ea accident) 1,000,000 BODILY INJURY 5 (Per person)rA ALL OWNED AUTOS SCHEDULED AUTOS BOIELi INJURY (Paldi s..A A HIRED AUTOS NON -OWNED AUTOS 02BO769819 3-26-03 3-26-04 PS15ME2 DAMI 5 P nn GARAGE LIABILITY AUsm Y - CIDEN $ EA AC $ AUFA y A $ ANY AUTOOTMr A EXCESS UAB"UTTEAc*oCCuw4vx OCCUR El CLAIMS MADE OICT001899 3-26-03 3-26-04 $1,000, 000 A GATE $1,000,000 C) co S $ DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND EMPLOYEES' LIABILITY WC STAN- OTH- T RY LIMB ER E.L. EACH ACCIDENT $1,000,000 E.L. DISEASE - EA EMPLOYEE $1,000,000 A 01WC925745 4-1-03 4-1-04 E.L. DISEASE POLICY LIMIT $1 ,000, 000 OTHER B PROFESSIONAL PHSD031788 7-1-02 7-1-03 1 1,000,000 DESCRIPTION OF OPERATKINSWCATIONS/VENICLES'EXCLUSIONS ADDED BY ENOORSEMENT/SPECIAL PROVISIONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY LIMITED TO CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY CERTIFICATE HOLDER I I ADDITIONAL INSURED; INSURER LETTER: CANCELLATION CTY OF SAN JUAN CAP I STRANO SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION 32400 PASEO ADELANTO DATE THEREOF, THE ISSUING INSURER WILL HMO1701F110 MAIL 30 DAYS WRITTEN SJC , CA 92675 NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, �i1IALL ATTN: CITY CLERK'S OFFICE AUTHOR® REPRESENTATIVE ACORD 26-S (7/97) 1 ®ACORD CORPORATION 1988 Policy Number: 02BO769819 Commercial General Liability THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule Name of Person or Organization: THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section 11) is amended to include as an insured the person or organization shown in the schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984 ACORD. CERTIFICA OF LIABILITY INSUR CE 6A2`5-02 PRODUCER PHILIP B. ROBINSON INSURANCE 2081 BUSINESS CENTER DR. # 200 IRVINE, CA 92612 9494749300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURER MORELAND & ASSOCIATES 1201 DOVE ST # 680 NEWPORT BEACH, CA 92660 949-221-0025 NSURERAAMERICAN STATES INSURANCE CO. NsuREs9:PHILADELPHIA INDEMNITY INS CO. INSURER C: INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NSR TYPE OF INSURANCE POLICY NUMBER POKY EFFECTIVE TE RHWDQ8DD PO CY EXPIRATION E (MAWDOnM llILf3 GENERAL LIABILITY 02BO769819 3-26-02 3-26-03 EACH ocouwENCE $1,000,000 FINE DAMAGE (Any one Ne) $1, 000, O00 A COMMERCIAL GENERAL LIABLRY CLAIMS MADE F71 OCCUR MED EMP (4V7 aro Person) $10,000 PERSONAL A ADV INJURY $1,000, 000 GENERAL AGGREGATE s2, 000, 000 GFNL AGGREGATE LIAR APPLIES PER: PRODUCTS - COMPIOP AGO $1, 000, 000 POLICY PRO LOC AUTOMOBILE LIABILITY COMBINED SpGLE LIMIT ANY AUTO (Ea aad n c 000,000 ALL OWNED AUTOS ZZ " rn BODILY R✓JllFtt -i'.: -a SCHEDULED AUTOS s C) (Per person) ;� «- -< m < A HOED AUTOS 02BO769819 3-26-02 3-26-03 BODILY Nim; m rn NON -OWNED AUTOS (Per a idsnn -'I ✓�. m O y _ PROPERTY DAMilGE s leer wcdenn GAflAGE LIABILITY AUTO ONLY - EA ACCIDENT OTHER THAN EA ACC $ ANY AUTO ONLY: AUTO ONLY: AGG S EXCESS LIABILITY EACH OCCURRENCE a 1, 0001000 A 71 OCCUR ❑CLNMSMADE 01CT001899 3-26-02 3-26-03 AGGREGATE $1,000,000 s s DEDUCTIBLE $ RETENTION $ WORKERS COMPENSATION AND _ STA I OR T R LTiLOYFAB' WBILrfY ' E.L. EACH ACCIDENT $1, 000,000 A E.L. DISEASE - EA EMPLOYEE $1 , 000,OOO 01WC925745 4-1-02 4-1-03 E.L. DISEASE - POLICY LIMIT $1 ,000, 000 OTHER B PROFESSIONAL PHSD031788 7-1-02 7-1-03 1,000,000 DESCRPTION OF OPERATIONSWUTONS/MICLEBIEXCWSONS ADDED BY ENDORSEI%wwECIILL PIaVISONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY LIMITED TO CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY CERTIFICATE HOLDER I I ADOIrIONAL INSURED; INSURER LETTER: CANCELLATION CITY OF SAN JUAN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPI AVON CAPISTRANO DATE THEREOF, THE ISSUING INSURER WILL omwtoR-i0 mAL 30 DAYS WRITTEN 32400 PASEO ADELANTO NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, SAN JUAN CAPISTRANO CA BDRErk rrsxE€'DR 92675 -avRLsmrAlIM ATTN CITY CLERK AUTHORITED REPRESENTATIVE , ACORD $-S (7/97) 9ACORD CORPORATION 1988 E Policy Number: 02BO769819 Commercial General Liability THIS ENDORSEMENT CHANGES THE POLICY-. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule Name of Person or Organization: THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 It 85 Copyright, Insurance Services Office, Inc., 1984 0 June 14, 2002 Moreland & Associates 1201 Dove Street # 680 Newport Beach, California 92660 RE: Compliance with Insurance Requirements - Annual Audit Services The following insurance document is due to expire: Y Professional Liability Certificate 7/1/2002 Other Information: Please name the City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency as certificate holders. Please submit updated documentation to the City of San Juan Capistrano, attention City Clerk's office, 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 by the above expiration dates. If you have any questions, please contact me at (949) 443-6310. Sincerely, Dawn Dawn Sch�erl Deputy City Clerk cc: Cynthia Russell, Director of Administrative Services onus use Is San Juan Capistrano: Preserving the Past to Enhance the Future 32400 PASEO ADELANTO '4 MEMBERS OF THE CRY COUNCIL SAN JUAN CAPISTRANO, CA 92675 DIANE L. SATHGATE (949) 493-1171 mRuna 1961 COLLENE CAMPBELL JOHN S. GELFF (949) 493.1053 (FAX) 1776 MATT HART www.sanjuancapistrano.org • • DAVID M. SWERDUN CITY MANAGER ` GEORGE SCARBOROUGH June 14, 2002 Moreland & Associates 1201 Dove Street # 680 Newport Beach, California 92660 RE: Compliance with Insurance Requirements - Annual Audit Services The following insurance document is due to expire: Y Professional Liability Certificate 7/1/2002 Other Information: Please name the City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency as certificate holders. Please submit updated documentation to the City of San Juan Capistrano, attention City Clerk's office, 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 by the above expiration dates. If you have any questions, please contact me at (949) 443-6310. Sincerely, Dawn Dawn Sch�erl Deputy City Clerk cc: Cynthia Russell, Director of Administrative Services onus use Is San Juan Capistrano: Preserving the Past to Enhance the Future ACORD CERTIFICA OF LIABILITY INSURA E (MMfi DATE 5 02 PRODUCER PHILIP B. ROB INSON INSURANCE 2081 BUSINESS CENTER DR. # 200 IRVINE, CA 92612 9494749300 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE INSURED MORELAND & ASSOCIATES 1201 DOVE ST # 680 NEWPORT BEACH, CA 92660 949-221-0025 INSURMA.AMERICAN STATES INSURANCE CO. INsuRERa:PHILADELPHIA INDEMNITY INS CO. INSURER C. INSURER D: I INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE POLICY NUMBER POLICY DATE FFFECIIVE f OLICY EXPIRATION ATE I L1KIS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE Rl OCCUR 02BO769819 3-26-02 3-26-03 EACH OCCURRENCE $1,000,000 FIRE DAMAGE (Any arra fire) $1, 000, 000 MED EXP (Any one person) $10 '000 PERSONAL S ADV INJURY $1, 000, 000 _ GENERAL AGGREGATE s2, 000, 000 GENE AGGREGATE LIMIT APPLIES PER: POLICY PRO LOC PRODUCTS - COMP,OP AGO $1 , 000, 000 A AUTOMOBILE LI4Bl1TY ANY AUTO ALL OWNED AUTOSZ SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 02BO769819 3-26-02 3-26-03 COMBINEDaaecciticcidSCOLE LIMIT , 0 0 0 , 000 Ea enl) • r, m BODILY Ion) Rj T $ � i . (Per person) < 1- -= m BODILY INJURYn m, i m (Per eccitleni) i m C2 T 3 PROPERTY DAMAGE s r (Per accident) GARAGE DABLTTY ANY AUTO - AUTO ONLY- EA ACCIDENT OTHER THAN EA ACC $ AUTO ONLY: AGO S A EXCESS LIABILm OCCUR EICLAIMSMADE DEDUCTIBLE RETENTION $ 01CTO01899 3-26-02 3-26-03 EACH OCCURRENCE $1,000,000 AGGREGATE $1,000,000 s $ S A WORKERS COMPENSATION AND EMPLOYERS' WBNJTY 01WC925745 4-1-02 4-1-03 WC STAN- OTR T CRY LIMI EA E.L. EACH ACCIDENT $1 , 0 0 0, 0 0 0 E.L. DISEASE - EA EMPLOYEE S 1, 0 0 0, 0 0 0 E.L. DISEASE -POLICY LIMIT I sl 000 000 B OTNFA PROFESSIONAL PHSD031788 7-1-02 7-1-03 1,000,000 R RMMDM OF OPERATIONSILOCATIONIeVEHICLESIEXCLUSKINS ADDED BY EBDORSEMENTBPECLLL PROVISIONS CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY LIMITED TO CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY CERTIFICATE HOLDER I I ADDITIONAL INSURED; INSURER LETTm: CANCELLATION CITY OF SAN JUAN SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE WE E%PRATION CAPISTRANO DATE THEREOF, THE IBSUNG INSURER WILL. FReeavem 76 MAR 30 DAYS WRDTEN 32400 PASEO ADELANTO MOMCE TO THE CERTIFICATE HOLDER MAMED TO THE LEFT, Sell SAN JUAN CAPISTRANO CA ATION 92675 -xnBESERrNMES. ATTN CITY CLERK AUTHORDYO REPRESENTATIVE ! ACORD 25-S (7197) 1 BACORD CORPORATION 1988 0 0 Policy Number: 02BO769819 Commercial General Liability THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule Name of Person or Organization: THE CITY OF SAN JUAN CAPISTRANO AND THE SAN JUAN CAPISTRANO COMMUNITY REDEVELOPMENT AGENCY (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www. sanjuancapistrano. org June 14, 2002 Moreland & Associates 1201 Dove Street # 680 Newport Beach, California 92660 u C ,p'A MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE COLLENE CAMPBELL JOHN S. GELFF MATT HART DAVID M. SW RDLIN CITY MANAGER GEORGE SCARBOROUGH RE: Compliance with Insurance Requirements - Annual Audit Services The following insurance document is due to expire: I Professional Liability Certificate 7/1/2002 Other Information: Please name the City of San Juan Capistrano and the San Juan Capistrano Community Redevelopment Agency as certificate holders. Please submit updated documentation to the City of San Juan Capistrano, attention City Clerk's office, 32400 Paseo Adelanto, San Juan Capistrano, CA 92675 by the above expiration dates. If you have any questions, please contact me at (949) 443-6310. Siiinnccerr}el�y�, " ,, Dawn M. Schanderpma/ Deputy City Clerk cc: Cynthia Russell, Director of Administrative Services San Juan Capistrano: Preserving the Past to Enhance the Future AC-ORD.CERTIFICATftF LIABILITY INSURAI«E DATE PHILIP B. ROBINSON INSURANCE 2081 BUSINESS CENTER DR. # 2010 IRVINE, CA,92612 9494749300 NSURED /I MORELAND & ASSOCIATES 1201 DOVE ST # 680 1 NEWPORT BEACH, CA 92660 —GGjJ.— COVERAOES FRT INSURERS AFFORDING COVERAGE THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NYN LYN i TYPE OF INSURANCE POLICY NUMBER POLICY VMTIW Y [N111OD" LIS GENERAL LIABILITY 02BO769819 3-26-02 3-26-03 EACH OCCURRENCE $110001000 FIRE DAMAGE (My one fire) $1, 000, 000 A COMMERCIAL GENEML LUBLITY CLAIMS MADE 1� OCCUR MED ENP (My ane perm) $10,000 PERSONAL B ADV INJURY S1, 000, 000 GENERAL AGGREGATE s2,000,000 OENL AGGREGATE LIMB APPLIES PER; PRODUCTS - COMNOP AGO $1, 000, 000 POLICY PR0. LOC AUTONDI LE LIABILITY COMBINED SINGLE LIMIT s ANY AUTO (Es acotlenp 1,000,000 ALL OWNED AUTOS , / V BODLY NJLIRV = SCHEDULED AUTOS (Per perw ) ODDLY INJURY A HIRED AUTOS 02BO769819 3-26-02 3-26-03 NON -OWNED AUTOS (Per amidenO S PROPDRY DAMAGE $ (Per exidenq GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC S ANY AUTO AUTO ONLY: AGO S EXCESS LIABILITY EACH OCCURRENCE S1,000,000 A OCCUR �CLMMSMADE OlCT001899 3-26-02 3-26-03 AooREoATE $1,0001000 s S DEDUCTIBLE f RETENTION S WOPJMS OOIiELSATION AND $TATRA 0 IM T11- T RY ER E.L. EACH ACCIDENT $1,000,000 E PLOYEPW LIABILITY A E.L. DISEASE - EA EMPLOYEE $1,000,000 E.L. DISEASE - PMICYLIMIT $1,000,000 01WC925745 4-1-02 4-1-03 OTHER B PROFESSIONAL PHSD010930 7-1-01 7-1-02 1 ff'000'000 0E8piPIgN OF OPBLATgXWLOCATIONSVE ICLEWEXCLUBEN9 ADDED BY EOORSEENTISPECIAL PROVISIONS c CPA * IF CANCELED FOR NONPAYMENT 10 DAY NOTICE WILL BE GIVEN �" c m CERTIFICATE HOLDER IS NAMED AS ADDITIONAL INSURED WITH LIABILITY-E_iIMgEg TO CLAIMS ARISING OUT OF THE INSUREDS OPERATIONS ONLY o co ucnivriumc TNLMCMI i I ADDITIONAL BFORCD: WAREN LETTER: L,Mne MLL llwm CITY OF SAN JUAN I SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELED 1001 E TIE EXPEATION CAPISTRANO {e) ' �V � L DATE THEREOF, THE BBUNG NBUREA WILL ENDEAVOR TO ML 30 oAYs xmmEN 32400 PASEO ADELANTO 1 1" NOTICE TO THE CERTIFICATE MOLDER NAMED TO TIE LEFT, BUT FALDRE TO DO EO SHALL SAN JUAN CAPISTRANO CA MOBS NO OBLIGATION OR LIABILITY OF ANY END UPON THE NBURER, IA AGENTS OR ATTN: RISK MANAGER 92675 REPRESENTATNES. ACORD 25-S (7/97) DACORD CORPORATION 1999 Y 0 0 Policy Number: 02BO769819 Commercial General Liability THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS (FORM B) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. Schedule Name of Person or Organization: CITY OF SAN JUAN CAPISTRANO & THE SAN JUAN CAPISTRANO REDEVELOPMENT AGENCY (If no entry appears above, the information required to complete this endorsement will be shown in the declarations as applicable to this endorsement.) WHO IS AN INSURED (Section ll) is amended to include as an insured the person or organization shown in the schedule, but only with respect to liability arising out of "your work" for that insured by or for you. CG 20 10 11 85 Copyright, Insurance Services Office, Inc., 1984 • 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org April 22, 2002 Moreland & Associates 1201 Dove Street, Ste 680 Newport Beach, CA 92660 Dear Sir or Madam: IA(11/OIIiIA InomAtA I 1461 1776 MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE COU -ENE CAMPBELL JOHN S. GELFF VNATT HAAT DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH Please find enclosed a fully executed Personal Services Agreement related to providing assistance to the City for implementation of Governmental Account Standards Board Statement Number 34. We have received the evidence of insurance and endorsements as required by the agreement. Please be aware that this evidence met must be maintained current with our office. Should evidence lapse, work under this agreement must stop and payments for work completed are withheld until we receive the required documentation. You may proceed with the scope of work under this agreement in coordination with Cynthia Russell, Administrative Services Director (949) 443-6301. Thank you, Mon han, CMC enclosure: Agreement cc: Cynthia Russell, Administrative Services Director vo use n San Juan Capistrano: Preserving the Past to Enhance the Future 8. DESCANSO VETERANS PARK FACILITY RENTAL FEES FOR THE 'WALK FOR DIABETES," HOSTED BY THE AMERICAN DIABETES ASSOCIATION ON APRIL 20, 2002, REDUCED 73%, $390 (390.30) 9. RESOLUTION NO. 02-04-16-01 ADOPTED, ENTITLED -A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ACCEPTING A TRAFFIC SIGNAL EASEMENT FOR CONSTRUCTION AND MAINTENANCE OF A TRAFFIC SIGNAL AT DEL OBISPO STREET AND VIA BELARDES/PASEO CAROLINA" (670.50) 10. STATUS OF NEW DEVELOPMENT APPLICATIONS RECEIVED AND FILED (440.10) 11. CITY COUNCIL POLICY REGARDING THE PROCUREMENT OF OFFICE FURNITURE APPROVED (610.30) 12. RESOLUTION NO. 02-04-16-02 ADOPTED ENTITLED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, INITIATING PROCEEDINGS FOR THE SALE OF APPROXIMATELY 4,400 SQUARE FEET OF THE HELICOPTER HILL PARK SITE/OPEN SPACE (LOT B, TRACT 12954, MARBELLA) TO MR. SANJIV JAIN, OWNER OF LOT 104, TRACT 12954" (LOT B, TRACT 12965) (MARBELLA/ SANJIV JAIN)" (670.70) 13. WATER QUALITY ORDINANCE IMPLEMENTATION AGREEMENT WITH THE ORANGE COUNTY FLOOD CONTROL DISTRICT, WITH AN ANNUAL FEE OF $712 AND RENEWABLE FOR AN ADDITIONAL 3 YEARS, APPROVED AND THE MAYOR AUTHORIZED TO EXECUTE THE AGREEMENT (600.30) 14. PERSONAL SERVICES AGREEMENT WITH MORELAND & ASSOCIATES, IN THE AMOUNT OF $29,000, TO ASSIST STAFF WITH IMPLEMENTATION OF GOVERNMENTAL ACCOUNTING STANDARD BOARD (GASB) STATEMENT NO. 34 APPROVED (MORELAND & ASSOCIATES) (600.30) 15. RESOLUTION NO. 02-04-16-03 ADOPTED, ENTITLED "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, ADOPTING ITS ARTICLE XIIIB APPROPRIATION LIMITATION (GANN LIMIT) FOR THE 2001/2002 FISCAL YEAR" (330.20) CC Minutes 3 04-16-02 • • ,AGENDA ITEM 411612002D 14 TO: George Scarborough, City Manager FROM: Cynthia L. Russell, Administrative Services Director SUBJECT: Consideration of Personal Services Agreement to Implement Governmental Accounting Standards Board (GASB) Statement #34 (Moreland & Associates) RECOMMENDATION: By Motion, approve the personal services agreement with Moreland & Associates in the amount of $29,000 to assist staff with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34. SITUATION: A. Summary and Recommendation Governmental Accounting Standards Board (GASB) Statement No. 34 represents a fundamental revision of the current financial reporting model. These revisions include a change in the reporting format of financial information currently provided in the City's financial statements as well as the inclusion of infrastructure assets not included in the current financial reporting model. Details of these changes and why they are necessary are provided later in this report. Based on its revenue levels the City of San Juan Capistrano must comply with the new reporting model for the fiscal year ending June 30, 2003. In order to bring the City into compliance, staff must evaluate the required changes to the City's financial information for reporting purposes, prepare the additional reports necessary for the new reporting model, analyze the City's infrastructure systems, and make decisions regarding the method under which to report these assets. City staff resources are not adequate to undertake this task effectively. Staff will need the technical assistance of accounting and engineering professionals to perform the analysis, develop required reports, develop alternatives, make recommendations and provide a framework for the new reporting model. In addition to these steps, the City's external auditor, Moreland and Associates would need to review and test the assumptions and information prepared to assure themselves of compliance with GASB 34 prior to issuing the financial statements. Moreland & Associates has teamed up with Psomas, a leading engineering firm to form an "Accountaneering Team". This team can provide the services necessary to complete our conversion to the new reporting model. By working with our existing auditor, the City can effectively implement GASB 34 and satisfy our audit requirements at the same time, thus reducing costs. Moreland & Associates is FOR CIN COUNCIL AGENDA , Agenda Item • -2- • April 16, 2002 familiar with the City's current financial information and systems and will not need additional time to familiarize themselves with the City's records, again keeping costs to a minimum. Additionally, Mike Moreland was a member of the GASB Task Force on the New Reporting Model and the only CPA practitioner in California to be a member of the Task Force. Moreland & Associates has submitted a proposal of $29,000 to complete the implementation of GASB 34. Staff recommends the City Council approve the personal services agreement with Moreland & Associates in the amount of $29,000 to assist staff with the implementation of GASB 34. B. Background In June 1999, the Governmental Accounting Standards Board (GASB) - which sets "generally accepted accounting principles" (financial reporting rules) for all state and local governments - established a new framework for the financial reports of state and local governments. Known as Statement No. 34: Basic Financial Statements - And Management's Discussion and Analysis - For State and Local Governments, it represents a fundamental revision of the current financial reporting model, which has been in place since 1979. Why implement GASB 34? With GASB 34 being such a significant change, one question is: Why implement GASB 34? The three most important reasons are: It's Generally Accepted Accounting Principles (GAAP) - This is probably the most compelling reason for implementing the new model. GASB is the acknowledged authoritative body in setting GAAP for local and state agencies. Maintaining citizen confidence in our stewardship of the assets entrusted to us requires credibility and integrity in our accounting and financial reporting system. Preparation of audited financial statements in accordance with industry standards is an essential foundation in gaining and sustaining this trust. 2. The new model is supported by a number of users and professional associations. The National Association of State Auditors, Comptrollers and Treasurers, the credit rating agencies ( who are the primary "users" of these reports), the California Society of Municipal Finance Officers (CSMFO), and the Government Finance Officers Association (GFOA) have all recommended the implementation of GASB 34. There are many public works' officials who believe the new reporting model will result in a better understanding of infrastructure needs. Additionally, a number of municipal finance professionals think the new reporting model better tells a city's fiscal story, and is a significant improvement over the current model. 3. Usually required for grants and long-term financing. In most cases, grant agencies and those who review and monitor long-term financing, require the Agenda Item • -3- • April 16, 2002 submission of audited financial statements. Those entities that do not implement GASB 34 will receive a qualified opinion (as opposed to an unqualified opinion) on their financial statements. A qualified opinion will have a negative impact with respect to grant compliance and long-term financing. Infrastructure Reporting In addition to the new reporting requirements for existing financial information provided for in the new financial reporting model, the City will need to make a major change in the manner in which we record infrastructure. Current accounting principles do not require reporting the historical cost of infrastructure such as roads, bridges, street lights, traffic signals, storm drains, etc. as capital assets - not because they aren't major community investments, but because they are immovable, and generally only of value to the government. The new reporting model will require that all infrastructure be reported at its "historical" (not current) value, and then depreciated. In order to determine each piece of the infrastructure inventory and determine its "historical" value, many cities have spent in excess of $50,000. Moreland & Associates, working with Psomas and our staff will develop a develop a "prior infrastructure" value based on estimates of the quantity of assets, dates acquired, useful lives and current replacement cost. From this information they will calculate an estimate of the original cost and accumulated depreciation to date. This general approach has been determined to meet the requirements of GASB 34 and is much less costly than the specific inventory approach. Upon completion of the infrastructure valuation, the City has the option to elect to depreciate its capital assets annually or implement the "modified approach" to infrastructure reporting. The modified approach requires that the City establish an infrastructure condition level to which all recorded infrastructure is to be maintained. After determining the required condition level, the City would need to demonstrate periodically that they are maintaining that condition level and disclose both their estimates of the amounts needed to maintain or preserve the infrastructure assets at that level and the actual amounts expended for each of the past five reporting periods. As part of the implementation process, staff will be making recommendations to the City Council regarding the method of recording capital assets. COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: M FINANCIAL CONSIDERATIONS: The FY 2001-02 budget as amended at mid -year includes $50,000 for the implementation of GASB 34. Although not anticipated at this point, the funds in excess of the $29,000 are available should the City need the services of a firm to perform an inventory and valuation of certain infrastructure that cannot be estimated from our Agenda Item • -4- • April 16, 2002 existing records. Should this service become necessary, staff would return to the City Council for approval of a separate agreement. In addition to sufficient budget for this project, failure to implement GASB 34 could have significant impacts on the City's ability to secure long-term financing and grants. NOTIFICATION: Moreland & Associates* ALTERNATE ACTIONS: By Motion, approve the personal services agreement with Moreland & Associates in the amount of $29,000 to assist staff with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34. 2. Do not approve the personal services agreement with Moreland & Associates in the amount of $29,000 to assist staff with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34. 3. Request additional information from staff. RECOMMENDATION: By Motion, approve the personal services agreement with Moreland & Associates in the amount of $29,000 to assist staff with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 34. Respectfully submitted, &a 1, Cyn is L. Russell Administrative Services Director Attachments: 1. Personal Services Agreement - Moreland & Associates Moreland ���, CERTIFIED PUBLIC ACCOUNTANTS March 21, 2002 Ms. Cynthia L. Russell Director of Administrative Services City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Dear Ms. Russell: EXHIBIT A 1201 DOVE STREET, SUITE 680 NEWPORT BEACH, CALIFORNIA 92660 (949)221-0025 570 RANCHEROS DRIVE, SUITE 260 SAN MARCOS, CA 92069 (760)752-3390 We are pleased to submit this proposal to provide assistance to the City of San Juan Capistrano for the implementation of Governmental Accounting Standards Board (GASB) Statement Number 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments. GASB Statement 34 has been described as the most significant change in the history of governmental accounting. As we have discussed with you, we have formed an "Accountaneering Team" which includes Psomas, a leading engineering firm providing public agencies with services in public works, water and natural resources, transportation, survey and information systems. Additional consultants, such as Marshall & Stevens, Inc., one of the oldest and most respected full- service independent valuation firms in the United States, are available to provide special expertise if needed. The experience of our Accountaneering Team and the fact that we have been the auditors for the City for the past several years place us in a unique position to provide these services BACKGROUND GASB Statement 34 was issued in June 1999 and must be implemented by the City for the year ending June 30, 2003. Although you may take up to an additional four years to retroactively report major general infrastructure assets, most cities want to record prior infrastructure at the same time that the other provisions of GASB Statement 34 are implemented. The implementation of GASB Statement 34 involves the formation of a GASB 34 Implementation Committee, which you have already formed. The purpose of the Committee is to identify the implementation decisions that need to be made and to arrange for the gathering of information necessary to make the decisions. The Committee may wish to implement GASB Statement 34 on a test basis by converting for internal use only, the June 30, 2002, financial statements. The purpose of the test conversion is to see in advance of publication how the financial statements will appear as the result of making decisions one way or another. Ms. Cynthia L. Russell • Director of Administrative Services City of San Juan Capistrano March 21, 2002 Page 2 Based on our initial meeting with your Implementation Committee, you have already made some important decisions, including recording the smallest amount of infrastructure allowed under GASB Statement 34. We believe you have also decided to use the depreciation method for your infrastructure assets and to generally make those decisions that will result in the least cost of implementation. SCOPE OF WORK Our approach to this engagement is founded on the principle of thinking and working as an extension of City staff. As such, we will work with your Implementation Committee in identifying the decisions that need to be made and in gathering the information necessary in making the decisions. Some of the decisions that you have already made or that need to be made include: 1. Is a test conversion worthwhile? 2. Do you want to report some or your entire infrastructure at the date of implementation? When you report prior infrastructure, do you want to report all existing infrastructure or just major infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements after June 30, 1980? 4. How do you define your infrastructure networks and subsystems? 5. How is the amount of infrastructure networks and subsystems to be determined? 6. What are the useful lives of your general fixed assets and of your infrastructure fixed assets if you choose not to use the "preservation method"? 7. Is the preservation method appropriate for your City? Some of the specific steps to be accomplished in implementing GASB Statement 34 are as follows: Using the information provided by your engineers, determine estimated historical cost of the infrastructure assets. Also compute accumulated depreciation and depreciation expense. 2. Determine useful lives of general fixed assets and compute accumulated depreciation and depreciation expense. 3. Determine the distribution of depreciation expense within the Statement of Activities. Ms. Cynthia L. Russell 0 0 Director of Administrative Services City of San Juan Capistrano March 21, 2002 Page 3 4. Review the current fund structure in light of the new fund types established by GASB Statement 34. 5. Identify major funds for reporting in the fund based financial statements. 6. Determine the allocation of revenues between program revenues and general revenues within the Statement of Activities. 7. Divide the government -wide net assets into the three categories of net assets. 8. Convert the governmental funds from the modified accrual basis of accounting to the accrual basis of accounting. 9. Prepare the reconciliation of the fund balance in the fund based financial statements to the net assets in the government -wide financial statements. 10. Prepare the reconciliation of the net change in fund balances of the governmental funds to the change in net assets of the governmental activities in the government -wide financial statements. 11. Assist you in identifying any extraordinary items or special items that require separate disclosure. 12. Assist you in the preparation of the Management Discussion and Analysis. 13. Assist you in revising your footnote disclosures to conform with GASB Statement Number 38, Certain Financial Statement Note Disclosures. 14. Assist you in explaining the revised financial statements to your City Council and the other members of City management. It is important to note that these changes not only impact the preparation of the City's Comprehensive Annual Financial Report, but also the preparation of your separate reports for your three component units. OUR APPROACH TO DETERMINING PRIOR INFRASTRUCTURE Our approach to determining the amount of prior infrastructure to be recorded will be to meet with your Implementation Committee to identify the City's infrastructure networks and/or subsystems. After we have identified together which networks and/or subsystems need to be recorded based upon the criteria of GASB Statement 34, we will ask your staff to make estimates of the quantity of assets, dates acquired, useful lives and current replacement cost. From that information we can calculate an estimate of the original cost and accumulated depreciation. This general approach will be used to determine the amount of all infrastructure assets, annual depreciation expense and accumulated depreciation. 0 32400 PASEo AoCLANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org April 18, 2002 Moreland & Associates 1201 Dove Street, Ste 680 Newport Beach, CA 92660 Dear Sir or Madam: MEMBERS OF THE CITY COUNCIL DIME L. BATHGATE COLLENE CAMPBELL JOHN S. GEI FF MATT HMT DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH A Personal Services Agreement related to providing assistance to the City for implementation of Governmental Account Standards Board Statement Number 34, was approved by the City Council at their meeting of April 16, 2002. All contract terms under Section 14. Insurance must be met prior to issuance of a n agreement or Notice to Proceed. We have current evidence of insurance for professional liability, but our records do not show current coverage for all other forms required. This evidence may be faxed to (949) 493-1053, followed by original signed documents. I have enclosed copies of pages within the agreement that refer to insurance terms, for your reference in supplying this documentation. If you have questions specific to the contact, please contact the project manager, Cynthia Russell, Administrative Services Director (949) 443-6301. If you have questions regarding the forms of insurance needed, please contact Dawn Schanderl, Deputy City Clerk (949) 443-6310. Thank you, V � Meg ona an, CMC City erk (949) 4 -6308 enclosure: Section 14. Insurance cc: Cynthia Russell, Administrative Services Director Fawn Schanderl, Deputy City Clerk San Juan Capistrano: Preserving the Past to Enhance the Future • 32400 PASEO ADIII SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org MEMBERS OF THE CITY COUNCIL DIANE L. BATHGATE JOHNS GELFF COLLENE CAMPBELL MATT HART DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL The City Council of San Juan Capistrano will meet at 7:00 p.m. on April 16, 2002 in the City Council Chamber in City Hall, to consider "Consideration of Personal Services Agreement to Implement Governmental Accounting Standards Board (GASB) Statement #34 (Moreland & Associates)" — Item No. D14 If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at City Hall by 5:00 p.m. on Monday, April 15, 2002 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a blue 'Request to Speak' form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Cynthia L. Russell, Administrative Services Director. You may contact that staff member at (949) 443-6301 with any questions. Thank you for your interest, ZZ Meg ona an, CMC City rk (949) 44 -6308 cc: Moreland & Associates*; Cynthia L. Russell, Administrative Services Director Received staff report DRUG USE IS San Juan Capistrano: Preserving the Past to Enhance the Future 32AOO PASEO ADELANTO SAN JUAN CA ISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 (FAX) www.sanjuancapistrano.org April 17, 2002 • y! WORM% I%wsR I 1961 1776 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL DIANE L. WHGATE COLLENE CAMPBELL JOHN S. GELFF WYATTHART DAVID M. SWERDLIN CITY MANAGER GEORGE SCARBOROUGH On April 16, 2002 the City Council of San Juan Capistrano met regarding: "Consideration of Personal Services Agreement to Implement Governmental Accounting Standards Board (GASB) Statement #34 (Moreland & Associates)" Item No. D14 The following action was taken at the meeting: Personal Services Agreement with Moreland & Associates, in the amount of $29,000, to assist staff with implementation of Governmental Account Standard Board (GASB) Statement No. 34, approved. The following documents are in the process of being executed. Personal Services Agreement If you have any questions regarding this action, please contact Cynthia L. Russell, Administrative Services Director at 443-6301 for more detailed information. Thank you, Mean, CMC CityC(949308 Cc: Moreland & Associates% Cynthia L. Russell, Administrative Services Director ua USE u San Juan Capistrano: Preserving the Past to Enhance the Future . Page 1 of 1 Mitzi Ortiz From: Maria Guevara Sent: Monday, March 20, 2006 9:18 AM To: Mitzi Ortiz Subject: FW: Moreland & Associates Hi Gigi, 4V) Please close agreement on CityView & file. Thanks. Maria Guevara, Deputy City Clerk City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949) 443-6309 (949) 493-1053 - Fax -----Original Message ----- From: Conrad David Sent: Monday, March 20, 2006 8:45 AM To: Maria Guevara Subject: Moreland & Associates Hi Maria, The City's agreement with Moreland regarding "GASB 34" is now complete. If you have any questions, please let me know. Conrad 3/22/2006 SECOND REQUEST CITY CLERK'S DEPARTMENT - ACTION REMINDER TO: Conrad David, Accounting Manager FROM: Mitzi Ortiz, Deputy City Clerk DATE: March 1, 2004 SITUATION: At their meeting on April 16, 2002 the City Council of the City of San Juan Capistrano approved an agreement with Moreland & Associates, Inc. to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34. ACTION REQUESTED: January 7, 2003, project still underway, check on status June 30, 2003. July 9, 2003, project still underway, check on status September 30, 2003. On October 28, 2003, project still underway, check on status November 30, 2003. On January 7, 2004, project still underway, check on status March 1, 2004. Please notify this office if agreement will be extended or has been completed. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: ***FOR CITY CLERK'S DEPARTMENT USE ONLY' Tiokler Date: 12 10102 06/30/03 09/30/03 12/01/03 03/01/04 Deadline Date: 12/31/02 (600.30/moreland) L-\ 1 C5 1 0L'1 C\C 1C (�-k lA(�- 7 • Mitzi Ortiz From: Mitzi Ortiz Sent: Monday, December 06, 2004 10:52 AM Tw Conrad David Subject: Agreement Status Hi Conrad, • I'm trying to follow-up on the status of an agreement with Moreland and Associates. The agreement is for assistance with the implementation of GASB Statement Number 34 (dated 4/16/02). Has that agreement been completed? SFC%D RF CITY CLERK'S DEPARTMENT - ACTION REMINDER Q(iFs� TO: Conrad David, Accounting Manager FROM: Mitzi Ortiz, Deputy City Clerk DATE: December 1, 2003 SITUATION: At their meeting on April 16, 2002 the City Council of the City of San Juan Capistrano approved an agreement with Moreland & Associates, Inc. to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34. ACTION REQUESTED: January 7, 2003, project still underway, check on status June 30, 2003. July 9, 2003, project still underway, check on status September 30, 2003. On October 28, 2003, project still underway, check on status November 30, 2003. Please notify this office if agreement will be extended or has been completed. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: ***FOR CITY CLERK'S DEPARTMENT USE ONLY*** Tickler Date: 12/10/02 6/30/03 Deadline Date: 12/31/02 (600.30/moreland) 9/30/03 12/01/03 1� SEND REQUESTNO3 03 CITY CLERK'S DEPARTMENT - ACTION REMINDER Cynthia L. Russell, Administrative Services Director FROM: Maria Guevara, Secretary SITUATION: DATE: December 10, 2002 At their meeting on April 16, 2002 the City Council of the City of San Juan Capistrano approved an agreement with Moreland & Associates, Inc. to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34. ACTION REQUESTED: Please notify this office if agreement has been extended or completed. ACTION TO BE TAKEN: etl) Yl, �l DATE WHEN EXT ACTION (S) SHO®LDI TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: ***FOR CITY CLERK'S DEPARTMENT USE ONLY*** Tickler Date: 12110/02 Deadline Date: 12/31/02 (600.30/moreland) Maria Guevara From: Cindy Russell Sent: Wednesday, July 09, 2003 10:41 AM To: Maria Guevara Subject: RE: Moreland & Associates Maria, I believe that the auditing services with the City and A Of years? Please lot me know if this is not the case. Thanks, Cindy -----Original Message----- ' From: Maria Guevara Sent: Wednesday, July 09, 2003 10:30 AM To: Cindy Russell Subject: Moreland & Associates Hi Cindy, I'm checking the status on three agreements with Moreland & Associates. 1. Auditing services with the City 2. Auditing services with the Agency 3. Implementation of Governmental Accounting Standards Board Statement Number 34. Are any of these completed? Thanks Maria I 11 0 Maria Guevara From: Maria Guevara Sent: Wednesday, July 09, 2003 10:30 AM To: Cindy Russell Subject: Moreland & Associates Hi Cindy, I'm checking the status on three agreements with Moreland & Associates. 1. Auditing services with the City 2. Auditing services with the Agency 3. Implementation of Governmental Accounting Standards Board Statement Number 34. Are any of these completed? Thanks Maria 1 0 CITY CLERKS DEPARTMENT - ACTION REMINDER TO: Cynthia L. Russell, Administrative Services Director FROM: Maria Guevara, Secretary DATE: June 30, 2003 SITUATION: At their meeting on April 16, 2002 the City Council of the City of San Juan Capistrano approved an agreement with Moreland & Associates, Inc. to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34. ACTION REQUESTED: January 7, 2003, project still underway, check on status June 30, 2003 Please notify this office if agreement will be extended or has been completed. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: Tickler Date: 12/10/02 Deadline Date: 12/31/02 (600.30/moreland) ***FOR CITY CLERK'S DEPARTMENT USE ONLY*** 6/30/03 Maria Guevara From: Conrad David Sent: Tuesday, October 28, 2003 12:41 PM To: Maria Guevara Subject: RE: Moreland & Associates- GASBS #34 Agreement Hi Maria, It will take at least another 30 days to complete the job. Please check with in 45 days. Thanks. Conrad -----Original Message ----- From: Maria Guevara Sent: Monday, October 27, 2003 8:23 AM To: Conrad David Subject: FW: Moreland & Associates- GASBS #34 Agreement Hi Conrad, How was your weekend? Please let me know what is the status on this agreement. Thank you. Maria -----Original Message ----- From: Cindy Russell Sent: Sunday, October 26, 2003 5:08 AM To: Maria Guevara Subject: RE: Moreland & Associates- GASBS #34 Agreement maria, please contact Conrad, he is handling this project now. Thanks, Cindy -----Original Message ----- From: Maria Guevara To: Cindy Russell 1 Sent:. 10/24/03 2:11 PM Subject: Moreland & Associates - Hi Cindy, • GASBS #34 Agreement I'm following up with the status of this agreement done? Thanks. Maria F1 Are they 0 0 Maria Guevara From: Maria Guevara Sent: Friday, October 24, 2003 2:11 PM To: Cindy Russell Subject: Moreland & Associates- GASBS #34 Agreement Hi Cindy, I'm following up with the status of this agreement. Are they done? Thanks. Maria • 0 CITY CLERK'S DEPARTMENT - ACTION REMINDER TO: Cynthia L. Russell, Administrative Services Director FROM: Maria Guevara, Secretary DATE: SeptoMger 30, 2003 SITUATION: At their meeting on April 16, 2002 the City Council of the City of San Juan Capistrano approved an agreement with Moreland & Associates, Inc. to provide assistance to the City for implementation of Governmental Accounting Standards Board Statement Number 34. ACTION REQUESTED: January 7, 2003, project still underway, check on status June 30, 2003. July 9, 2003, project still inderway, check on status September 30, 2003. Please notify this office if agreement will be extended or has been completed. ACTION TO BE TAKEN: DATE WHEN NEXT ACTION (S) SHOULD BE TAKEN: SIGNATURE OF OFFICIAL TAKING ACTION: DATE SIGNED: ***FOR CITY CLERK'S DEPARTMENT USE ONLY*** Tickler Date: 12/10/02 6/30/03 9/30/03 Deadline Date: 12/31/02 (600.30/moreland)