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CM-06-05-104(BGMN) BROCKWAA GERSBACH, MCKINNON & NIEMEIER, P.C. CERTIFIED PUBLIC ACCOUNTANTS April 25, 2006 City of Round Rock Round Rock, TX We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the City of Round Rock, Texas. We will apply the agreed-upon procedures which the City has specified as inspection of the invoices and paid checks related to the developer reimbursable costs at Behrens Ranch in order to verify that the costs reported are supported and are related to those detailed in the agreement. This engagement is solely to assist the City in verification of the cost of the above named project. Our engagement to apply agreed-upon procedures will be conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described above either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of this engagement. Because the agreed-upon procedures do not constitute an examination, we will not express an opinion on the costs. In addition, we have no obligation to perform any procedures beyond those listed above. We will submit a report listing the procedures performed and our findings. This report is intended solely for the use of the City of Round Rock, Texas and should not be used by anyone other than these specified parties. Our report will contain a paragraph indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We plan to begin our procedures on approximately May 1, 2006 and, unless unforeseeable problems are encountered, the engagement should be completed by May 15, 2006. We estimate that our fees for these services will be approximately $1,500 to $ 2,500. The fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Ci\A-0,-05 104" st Office Box 4083 • Temple, Texas 76505-4083 • 254 773-9907 • Fax 254 773-1570 • www.templecpa.com City of Round Rock, Texas Page Two We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. If the need for additional services arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified parties of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of procedures. Sincerely, BROCKWAY, GERSBACH, MCKINNON & NIEMEIER, P.C. McKinnon, CPA 1 ef94 This lette` co ectly sets forth the understanding of the City of Round Rock, Texas By: Title: ( 1 Date: BLUE SHEET FORMAT DATE: May 4, 2006 SUBJECT: City Manager - May 5, 2006 ITEM: Consider a resolution authorizing the City Manager to execute an engagement letter with Brockway, Gersbach, McKinnon & Niemeier, P.C. for services related to developer reimbursable costs at Behrens Ranch. Department: Finance Department Staff Person: Cindy Demers, Finance Director Justification: The firm will inspect the invoices and paid checks related to the developer reimbursable costs at Behrens Ranch in order to verify that the costs reported are supported and are related to those detailed in the agreement. Funding: Cost: $1,500 to $2,500 Source of funds: General and Utility Operating Budgets Outside Resources: N/A Background Information: N/A Public Comment: N/A Blue Sheet Format Updated 01/20/04 Request for City Council/City Manager Action n City Council PI City Manager Submit completed form for all City Manager and City Council approvals. Department Name: Contact Person: Project Manager/Resource: Project Coordinator: Assigned Attorney: Finance Noelle Jones/Cheryl Delaney Cindy Demers Cindy Demers Council or City Manager Agenda Date: City Manager -- May 5, 2006 Blue Sheet Wording For Administration Use ONLY Tag #c)4 Documents Received: Return to: Return date: CC: Lynn Olsen Project Name: Audit Services for Behrens Ranch ContractorNendor: Brockway, Gersbach, McKinnon & Niemeier Funding Source: General and Utility Operating Budgets Amount: $1500 - $2500 CConsider a resolution authorizing the City Manager to execute an engagement letter with Brockway, Gersbach, McKinnon & Niemeier, P.C. for services related to developer reimbursable costs at Behrens Ranch. Finance Information Is Funding Required? Yes No Initial Construction Contract Construction Contract Amendment # Change Order Change in Quantity Unforeseen Circumstances Initial Professional Services Agreement Supplemental Professional Svcs. Agr. # Purchasing/Service Agreement Purchase Order Item(s) to be purchased: Amount 2,500.00 Q Other (Please clearly identify action on lines below) Finance Approval O Finance JFinance J Purchasing El Budget J. Galloway Cheryl Delaney Date Date Date Date 5/5/2006 5/5/2006 For Submission to City Manager Only Project Mgr. Signature: Dept. Director Signature: City Attorney Signature*: City Manager Signature: Date: Date: Date: S. Date: (-14P val is required for all items requesting City Manager's approval. Updated 3-9-05