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HomeMy WebLinkAboutR-2000-019 Yakima County Development Association (YCDA) contract for public sector services.RESOLUTION NO. R-2000-19 A RESOLUTION authorizing the City Manager to ratify and adopt a contract with the Yakima County Development Association for public sector services. WHEREAS, the Yakima County Development Association ("YCDA") is a Washington private nonprofit corporation representing a coalition of business, government, labor, and education leadership dedicated to planning, developing, and implementing community economic development programs; and WHEREAS, YCDA staff possesses valuable skill, experience and expertise in community economic development; and WHEREAS, YCDA has been involved in many significant investment decisions in the City of Yakima and Yakima County; and WHEREAS, RCW 35.21.703 provides: It shall be in the public purpose for all cities to engage in economic development programs. In addition, cities may contract with nonprofit corporations in furtherance of this and other acts relating to economic development[;] and WHEREAS, YCDA has offered to perform certain services according to the attached Public Sector Service Contract for the period January 1, 2000, to December 31, 2003; WHEREAS, it is in the best interests of the City to contract with YCDA for services according to the attached Public Sector Service Contract; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is authorized to execute the attached Public Sector Service Contract with the Yakima County Development Association for the period January. 1, 2000, to December 31, 2003. ADOPTED BY THE CITY COUNCIL this lL day of February, 2000. ?if /96,, Mary Place, Mayor ATTEST: Karen S. Roberts, City Clerk C:\word\contracts\outside agencies\ycda\klw's finals\resolv re ycda contract 2000.doc Last printed 02/10/00 8:58 AM RESOLUTION APPROVING YCDA CONTRACT 2000 YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT ()I)A-v:,,'' 1ts�1? CONTRACTOR: City of Yakima, Washington CONTRACT PERIOD: January 1, 2000, to December 31, 2003 THIS CONTRACT is entered into by the City of Yakima (the "City"), a municipal corporation, and the Yakima County Development Association ("YCDA"), a Washington nonprofit corporation. WHEREAS, YCDA is a Washington private nonprofit corporation representing a coalition of business, government, labor, and education leadership dedicated to planning, developing, and implementing community economic development programs; and WHEREAS, economic development programs are coordinated public and private actions which aid in enhancing a community's quality of life and bringing its citizens into the economic mainstream by planning and building local economic capacity, such as an effective education and training system; sound transportation and physical infrastructure; attractive, diverse private and public investments; and competitive and skilled work force; and WHEREAS, YCDA staff possess valuable skill, experience and expertise in community economic development; and WHEREAS, YCDA has been involved in many significant investment decisions in the City of Yakima and Yakima County; and WHEREAS, the City wishes to utilize the skill, experience, and expertise of YCDA rather than attempting to perform the same services at greater expense; and WHEREAS, RCW 35.21.703 provides: It shall be in the public purpose for all cities to engage in economic development programs. In addition, cities may contract with nonprofit corporations in furtherance of this and other acts relating to economic development[;] and WHEREAS, the City wishes to exercise authority granted under RCW 35.21.703 by contracting with YCDA to provide economic development assistance to the City; and WHEREAS, the City desires to have certain services performed by YCDA as described within this Contract; THEREFORE, in consideration of payment, covenants, and agreements hereinafter mentioned, to be made and performed by the parties hereto, the parties mutually covenant and agree to the following: I. SCOPE OF SERVICES The City desires to continue utilizing services provided by YCDA. The City recognizes that, because of the nature of a private economy, YCDA shall provide economic development programming for the entire Yakima County area and not exclusively for the C:\word\contracts\outside agencies\ycda\klw's finals\ycda contract 2000-2003.doc Last printed 02/10/00 9:07 AM YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT FOR 2000-20003 Page 1 of 5 City of Yakima area. The City understands that it will receive economic development benefits from YCDA's efforts within Yakima County because the City is an economic focal point of the County. Such benefits to the City include a more diversified economic base, additional employment opportunities and greater prosperity. The economic development program shall consist of an annual program of work drafted by the YCDA Board of Directors. YCDA shall maintain a professional staff to carry out an economic development program in Yakima County. During the term of this Contract, YCDA will dedicate its best efforts to carry out such a program. As additional consideration, beyond its general mission of economic development in Yakima County, YCDA shall dedicate its professional and support staff to specific objectives to be mutually updated and agreed on an annual basis. As objectives for the 2000 calendar year YCDA shall: A. Market the City of Yakima and Yakima County as a location for new nonretail business investment. Maintain accurate information about the City's costs and opportunities as they relate to new business development. Maintain confidentiality for business clients evaluating sites or facilities within the region. B. Work cooperatively with developers, realtors, land owners and other parties within the Yakima urban area to maintain up-to-date information about sites and facilities that can meet the needs of new or existing businesses. C. Conduct yearly visits with Yakima -based manufacturers as part of YCDA's annual manufacturers' survey. Provide appropriate follow-up assistance to local businesses based on needs identified during the survey interviews. D. Provide the City of Yakima with a yearly report on the status of local manufacturers, providing insights on their overall health and feedback on local business climate issues. E. Support the City's efforts to prepare industrial sites and facilities through grant applications to local, state or federal infrastructure financing programs. F. Support a positive and coordinated business climate by hosting the Economic Development Resource Team meetings and by participating in the City Council's Economic Development Committee meetings. G. Advise the City, when requested, regarding industrial sector needs relative to the preparation of land use designation and urban development policies. H. Advise the City, when requested, on ways to mitigate development impacts from proposed manufacturing or nonretail expansion projects. I. Advise the City, when requested, regarding public service planning for light and heavy industrial areas, including comments on streets, water, sewer, and other public facilities. C:\word\contracts\outside agencies\ycda\klw's finals\ycda contract 2000-2003.doc Last printed 02/10/00 9:07 AM YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT FOR 2000-20003 Page 2 of 5 II. DURATION OF CONTRACT This Contract shall commence on January 1, 2000, and shall terminate on December 31, 2003, but may be renewed annually through December 31, 2002, subject to performance review and evaluation conducted by the City Council during the yearly budget review process. III. COMPENSATION, METHOD OF PAYMENT, REPORTING YCDA shall receive payment for services as specified in this Contract in the total amount of Nineteen Thousand Nine Hundred Thirteen Dollars ($19,913.00), which amount shall be paid to YCDA in two equal installments of Nine Thousand Fifty -Six Dollars and Fifty Cents ($9,956.50), with one installment due on January 15 and one installment due on July 15. In the following years, payment shall be made to YCDA in two equal installments on January 15 and July 15, provided that this contract is renewed and compensation for services is authorized in the City's yearly budget based the annual performance review and evaluation. YCDA shall submit quarterly written reports including, for the fourth quarter of each year, an annual written project report to be delivered by January 31 of the next year. Such reports shall contain a description of accomplishments under the applicable scope of services provision of the Contract. Specifically, each annual report shall indicate the amount of new investment, retention of investment, and new jobs within Yakima County which affect economic development of the City. IV. INTERNAL CONTROL AND ACCOUNTING SYSTEM YCDA shall establish and maintain a system of accounting and internal controls which complies with applicable generally accepted accounting principles and government accounting and financial reporting standards. V. ESTABLISHMENT AND MAINTENANCE OF RECORDS YCDA shall maintain accounts and records, including personnel, property, financial, and program records, and such other records as the City may deem necessary, to ensure proper accounting for all project funds and compliance with this Contract. VI. AUDITS AND INSPECTIONS A. Records and documents pertaining to all matters covered by this Contract shall be subject at all times to inspections, review, or audit by the City and/or federal/state officials so authorized, including but not limited to the Washington State Examiner. B. YCDA shall have its annual financial statement audited by an independent certified public accountant. One copy of any such audit or review performed by an independent certified public accountant shall be provided to the City. C. YCDA shall provide access of facilities to the City, the state and/or federal agencies or officials at reasonable times to monitor and evaluate the services provided under the Contract. The City will give advance notice to YCDA in the case of fiscal audits to be conducted by the City. C:\word\contracts\outside agencies\ycda\k1w's finals\ycda contract 2000-2003.doc Last printed 02/10/00 9:07 AM YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT FOR 2000-20003 Page 3 of 5 VII. REVIEW AND EVALUATION YCDA agrees to cooperate with the City or its agent in the City's annual review and evaluation of YCDA's performance under this Contract and to make available all information reasonably required by any such evaluation process. VIII. TERMINATION This Contract may be terminated without cause prior to the date specified above in Section II, by either party providing the other party thirty (30) days' written notice of the termination. In the event of termination, the amount of compensation shall be prorated monthly to the nearest full month of service. IX. INSURANCE AND INDEMNIFICATION YCDA shall procure and maintain at its own expense for the duration of this Contract insurance against injury to persons or damage to property or rights which may arise from or in connection with the performance of work hereunder by YCDA, its agents, representatives, or employees. YCDA shall defend, indemnify, and hold the City of Yakima, its officers, employees, and agents harmless from any and all liability arising out of the performance of this Contract. X. NONDISCRIMINATION During the performance of this Contract, YCDA shall not discriminate on the basis of race, color, sex, religion, nationality, creed, sexual orientation, marital status, age, or the presence of any sensory, mental or physical handicap in employment or application for employment or in the administration or delivery of services or any other benefits under this Contract. XI. CONFLICT OF INTEREST YCDA covenants that no officer, employee or agent of the City who exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein, or any other person who presently exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein shall have any personal financial interest, direct or indirect, in this Contract. None of the funds, materials, property or services provided directly or indirectly under this Contract shall be used for any partisan political activity or to further the election or defeat of any candidate for public office. XII. NOTICES Whenever this Contract provides for notice to be provided by one party or another, such notices shall be in writing and directed to the chief executive officer of YCDA, P.O. Box 1387, Yakima, WA 98907, or the City Manager, City Hall, Yakima, WA 98901. Any time within which a party must take some, action shall be computed from the date that the notice is received by said party. C:\word\contracts\outside agencies \ycda\klw's finals\ycda contract 2000-2003.doc Last printed 02/10/00 9:07 AM YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT FOR 2000-20003 Page 4 of 5 XIII. CHANGES Either party may request changes to this Contract. Proposed changes which are mutually agreed upon shall be incorporated by written amendments to this Contract. XIV. PROHIBITED ACTS YCDA shall use all consideration provided under this Contract solely to pay for labor, equipment, materials, and overhead in its operations. Tt shall not use such consideration as loans, grants, or gifts to public or private entities for any purpose whatsoever, nor shall such consideration be used for the purpose of promotional hosting. Violation of the provision of this section shall be cause of immediate termination of this Contract and YCDA shall repay to the City any funds transferred in violation of this section. XV. WHOLE AGREEMENT This Contract constitutes the whole and entire agreement between the parties. XVI. ASSIGNMENT YCDA shall not assign any of its duties under this Contract without the prior written consent of the City. XVII. SEVERABILITY In the event any portion of this Contract is found to be invalid, it is the intent of the parties to enforce the remainder of the Contract. CITY OF YAKIMA YAKIMA COUNTY DEVELOPMENT ASSOCIATION Signature Richard A. Zais, Jr. Name City Manager 'Title Date ATTEST City Clerk City Contract No. 2000-21 Resolution No. R-2000-19 tt e I1 Signature //� tri 6=l j�i C a a1 Name Title Date 9-44 / 2.06o APPROVED AS TO FORM Title \word\contracts\outside agencies \ycda\kI v s finals \ycda contract 2000-2003.doc YAKIMA COUNTY DEVELOPMENT ASSOCIATION PUBLIC SECTOR SERVICE CONTRACT FOR 2000-20003 (71','/C .Last printed 02/10/00 9:07 AM Page 5 of 5 ALEGRIA ESCHBACH ROTHENBUELER WARNER ANDERTON, P.S. CERTIFIED PUBLIC ACCOUNTANTS YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a NEW VISION Financial Statements December 31, 2000 and 1999 TABLE OF CONTENTS Independent Auditor's Report 1 Statements of Financial Position 2 Statements of Activities 3 Statements of Changes in Net Assets 4 Statements of Cash Flows 5 Notes to Financial Statements 6 Letter to the Board of Directors 10 ALEGRIA ESCHBACH ROTHENBUELER WARNER ANDERTON, P.S. CERTIFIED PUBLIC ACCOUNTANTS Steven L. Alegria Scott E. Eschbach John K. Rothenbueler Barry J. Warner Matthew J. Anderton John F. DePew (Retired) lames B. Shrader (1919-1990) Homer D. Engleman (1945-1990) INDEPENDENT AUDITOR'S REPORT To the Board of Directors Yakima County Development Association, Inc. (d/b/a New Vision) Yakima, Washington We have audited the accompanying statements of financial position of Yakima County Development Association, Inc., (d/b/a New Vision) (a non-profit organization), as of December 31, 2000 and 1999, and the related statements of activities, changes in net assets, and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting pnnciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opmlon. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of New Vision, as of December 31, 2000 and 1999, and the changes in its net assets and its cash flows for the years then ended in conformity with generally accepted accounting pnnciples. iex 1,9 January 23, 2001 MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS The Shiader Building 811 Summitview, Suite I Yakima, Washingion 98902 Phone 509-575-1065 Fax 509-575-1755 �. YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Statements of Financial Position December 31, 2000 and 1999 2000 1999 Assets Current assets Cash and cash equivalents Certificates of deposit Current pledges receivable, net New Visions III Campaign New Visions IV Campaign Grants receivable Other receivables Prepaid expenses Total current assets Equipment, at cost Less: accumulated depreciation Net equipment Long-teim pledges receivable, net New Visions IV Campaign Total assets Liabilities and Net Assets Current liabilities Accounts payable Accrued liabilities Current portion of long-term debt Total current liabilities Long-term debt, less current portion Total liabilities Net assets Unrestricted Temporarily restricted Total net assets $ 62,729 624,975 245,400 61,925 13,574 44,727 1,053,330 103,587 (50,034) 53,553 411,184 $ 218,805 366,948 6,000 227,249 28,402 5,814 6,684 859,902 74,995 (47,579) 27,416 559,010 $ 1,518,067 $ 1,446,328 $ 15,597 1,830 3,189 20,616 15,944 36,560 1,070,323 411,184 1,481,507 $ 3,841 3,099 6,940 6,940 880,378 559,010 1,439,388 Total liabilities and net assets $ 1,518,067 $ 1,446,328 See accompanying notes to financial statements. 2 2000 1999 Change in unrestricted net assets $ 189,945 $ 130,853 Temporarily restricted net assets New Visions TV pledges, net of discount 8,904 318,603 Pledges released from time restrictions (156,730) (34,380) Change in temporarily restricted net assets (147,826) 284,223 Change in net assets $ 42,119 $ 415,076 3a YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Statements of Changes in Net Assets Years ended December 31, 2000 and 1999 Temporarily Unrestricted restricted Total Net assets at December 31, 1998 $ 749,525 $ 274,787 $ 1,024,312 Change in net assets 130,853 284,223 415,076 Net assets at December 31, 1999 880,378 559,010 1,439,388 Change in net assets 189,945 (147,826) 42,119 Net assets at December 31, 2000 $ 1,070,323 $ 411,184 $ 1,481,507 See accompanying notes to financial statements. 4 YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Statements of Cash Flows Years ended December 31, 2000 and 1999 2000 1999 Cash flows from operating activities Change in net assets Adjustments to reconcile change in net assets to net cash from operating activities Depreciation Changes in assets and liabilities Pledges receivable Grants receivable Other receivables Prepaid expenses Investments Accounts payable Accrued liabilities Net cash from operating activities Cash flows from investmg activities Equipment purchases Net change in certificates of deposit Net cash from investing activities Cash flows from fmancing activities Proceeds from long-term debt Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Supplemental disclosure of non-cash items Office equipment donation $ 42,119 $ 415,076 9,747 135,675 (33,523) (7,760) (38,043) 11,756 (1,269) 118,702 (35,884) (25 8,027) 9,414 (362,019) (809) 1,786 1,010 (2,179) (1,025) 61,254 (12,807) (59,555) (293,911) (72,362) 19,133 (156,076) (11,108) 218,805 229,913 $ 62,729 $ 218,805 $ 10,109 See accompanying notes to financial statements. 5 YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Notes to Financial Statements December 31, 2000 and 1999 Summary of Significant Accounting Policies Nature of Business Yakima County Development Association, Inc. (Association) is a Washington non-profit corporation formed April 9, 1985. The Association, also known as New Vision., has the following mission statement: "New Vision will improve the economic base of Yakima County through a public and private cooperative effort by retaining, expanding, and recruiting business and industry to our area. This will enhance the income, quality of life, and employment stability of Yakima County residents." The principal place of business is Yakima, Washington. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents For the purpose of the statements of cash flows, the Association considers checking, money market accounts, and all certificates of deposit purchased with an original maturity of three months or less to be cash equivalents. Concentration of Credit Risk The Association' financial' instruments that are exposed to concentrations of credit risk consist pnmarily of cash equivalents, certificates of deposit, and receivables. The Association has significant deposits in financial institutions and limits the amount of credit exposure to any one financial institution. Concentrations of credit risk with respect to receivables are limited due to the large number of contributors comprising the Association's contributor base and their dispersion across different industries. As of December 31, 2000 and 1999, the Association had no significant concentrations of credit risk. Depreciation Depreciation is computed under the straight-line method over the estimated useful lives of the assets. Federal Income Taxes The Association is recognized as a nonprofit organization under the Internal Revenue Service Code Section 501(c)(6) and, thus, is not subject to federal income taxes. The Association is not a private foundation. Pledge Revenue Recognition Unconditional pledges to give that are expected to be collected within one year are recorded at net realizable value. Unconditional pledges to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on those amounts are computed using an interest rate that approximates general market conditions near the date of the pledge. Amortization of the discounts is included in pledge revenue. Conditional pledges to give are not included as support until the conditions are substantially met. 6 (Continued) YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Notes to Financial Statements December 31, 2000 and 1999 All pledges are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted or permanently restricted support that increases those net asset classes. However, if a restriction is fulfilled in the same time period in which the pledge is received, the Association reports the support as unrestricted. Reclassifications Certam amounts have been reclassified in the pnor year toconform with the presentation in the current year. (2) Pledges Receivable New Visions IV Campaign Beginning in the fall of 1998, the Association initiated its New Vision IV capital campaign which is expected to conclude by December 31, 2004. Included in pledges receivable are the following unconditional promises to give at December 31: 2000 Unrestricted Government agencies $ 84,363 Other 183,189 Restricted to future periods Government agencies 181,175 Other 369,207 Total unconditional promises to give Less: unamortized discount Less: allowance for uncollectible amounts 817,934 (159,017) 658,917 (22,000) Net unconditional promises to give $ 636,917 Amounts due in Less than one year $ 267,552 One to five years 550,382 More than five years Total 1999 $ 67,415 194,214 217,410 536,096 1,015,135 (213, 876) 801,259 (15,000) $ 786,259 $ 261,629 753,506 $ 817,934 $ 1,015,135 The unamortized discount was computed using an annual rate of 8.0%. Government agencies customarily include language in their pledge commitments that states the pledge is subject to annual budget approval. The Association has recognized the entire pledge commitment for government agencies that have signed contracts. Management of the Association 7 (Continued) YAKIMA COUNTY DEVELOPMENT ASSOCIATION, INC. d/b/a New Vision Notes to Financial Statements December 31, 2000 and 1999 (3) believes that historical actions of and current relationships with government agencies support full recognition where signed contracts exist as past experience indicates that the chance of the annual budget expenditure not being approved is remote. In addition to the total unconditional promises to give of approximately $817,934 at December 31, 2000, the Association has also received conditional pledges that may be payable during the New Visions IV Campaign of approximately $131,550 at December 31, 2000. Long Term Debt The Association's long term debt consists of a note payable due to GMAC in monthly installments of $376 including annual interest at 12%, secured by a vehicle. (4) Lease Commitments (5) The Association leases office space under terms of a noncancelable operating lease that requires minimum monthly payments of approximately $2,900 through June 30, 2001. In June 2000, the Association entered into a five year lease agreement for office space located at 10 N 9th Street in Yakima. The lease begins with initial occupancy which is expected by May 1, 2001. The first year of rent has been prepaid m the amount of $36,000. Retirement Program The Association has committed to an annual contribution to a retirement savings program for its employees. The Association has elected to match 3% of each eligible employee's compensation, provided the employee defers at least 3% of compensation. If the employee defers less than 3% of compensation, the matching contribution is dollar for dollar. The total contributions from the Association and the individual are limited to a maximum of $6,000 per year. The total amount contributed by the Association to the retirement program was $3,487and $5,286 for the years ended December 31, 2000 and 1999, respectively. (6) Contract Commitments The Association is party to various service contracts that generally provide cancellation terms within thirty to sixty days. 8 LETTER TO THE BOARD OF DIRECTORS ALEGRIA ESCHBACH ROTHENBUELER WARNER & ANDERTON, P.S. CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors Yakima County Development Association, Inc. (d/b/a New Vision) Yakima, Washington Steven L. Alegria Scott E. Eschbach John K. Rothenbueler Barry J. Warner Matthew J. Anderton John F. DePew (Retired) James B. Shrader (1919-1990) Homer D. Engleman (1945-1990) We have audited the financial statements of the Yakima County Development Association, Inc. (d/b/a New Vision) (the Association) for the years ended December 31, 2000 and 1999, and have issued our report thereon dated January 23, 2001. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Generally Accepted Auditing Standards As stated m our engagement letter dated December 20, 2000, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material errors, fraud or other illegal acts may exist and not be detected by us. As part of our audit, we considered the internal control of the Association. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the Association are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing pohcies was not changed during 2000. We noted no transactions entered into by the Association during the years that were both significant and unusual, and of which, under professional standards, we are required to inform you, or transactions for which there is a lack of authoritative guidance or consensus. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. There are no accounting estimates at December 31, 2000 that are particularly sensitive because of their significance to the financial statements, or because of the possibility that future events affecting them may differ significantly from those expected. Significant Audit Adjustments For purposes of this letter, professional standards define a significant audit adjustment as a proposed correction of the financial statements that, in our judgment, may not have been detected except through our auditing procedures. These adjustments may include those proposed by us but not recorded by the Association that could potentially cause future financial statements to be materially misstated, even though MEMBER: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS The Shracler Building 811 Summitview, Suite 1 Yakima, Washington 98902 Phone 509-575-1065 Fax 509-575-1755 we have concluded that such adjustments are not material to the current financial statements. We proposed no audit adjustments that could, in our judgment, either individually or in the aggregate, have a significant effect on the Association's financial reporting process. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting pnnciple to the Association's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Independent Auditors We generally discuss a variety of matters, including the application of accounting prmciples and auditing standards, with management each year prior to retention as the Association's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Organizational Structure The size of the Association's accounting and administrative staff precludes certain internal controls that would be preferred if the office staff were large enough to provide optimum segregation of duties. For example, the President has the authority to approve expenditures, sign checks of unlimited amounts, and post such infoimation to the accounting records. This situation dictates that the Board of Directors remain mvolved in the financial affairs of the Association to provide oversight and independent review functions. This information is intended solely for the use of the Board of Directors and management of the Yakima County Development Association, Inc. (d/b/a New Vision) and should not be used for any other purpose. January 23, 2001 ITEM TITLE: SUBMITTED BY: BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. / For Meeting Of February 15, 2000 Authorization to contract with the Yakima County Development Association for Professional Services A � r illiam Cook, Director, Department of Community and Economic Development CONTACT PERSON/TELEPHONE: William Cook, 575-6113 SUMMARY EXPLANATION: The City Council budgeted $19,913 for a professional service contract with Yakima County Development Association (YCDA) during the 2000 budget cycle. As in the past, YCDA will continue to provide expertise in community economic development. YCDA will market and promote the City for prospective new non retail development. The contract period is for January 1, 2000 through December 31, 2003, provided the contract is renewed and compensation for services is authorized in the City's yearly budget. YCDA will provide quarterly written reports describing its accomplishments under the scope of the contract. Resolution_X_ Ordinance Other (Specify) Contract Mail to (name and address):__ Phone: Funding Source General Fund APPROVED FOR SUBMITTAL: diWr-Tir-/`7 City Manager STAFF RECOMMENDATION: Adopt resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: