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HomeMy WebLinkAboutAgenda - 01-24-2005-5nORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 24, 2005 Action Agenda Item No. i SUBJECT: Aareement with Robert Seaal CPA Firm for Countv Efficiencv Assessment DEPARTMENT: Manager PUBLIC HEARING: (YIN) No ATTACHMENT(S): INFORMATION CONTACT: Approved Letter of Agreement Rod Visser, ext 2300 TELEPHONE NUMBERS: Hillsborough 732 -8181 Chapel Hill 968 -4501 Durham 688 -7331 Mebane 336 - 227 -2031 PURPOSE: To authorize the Chair, Manager, and staff to develop agreements, as needed, with the Robert Segal CPA firm for assessment of efficiencies and operational comparisons involving Orange County government and the two school systems. BACKGROUND: As was discussed during the Board's of Commissioners annual planning retreat on January 22, 2005, the County engaged the Robert Segal CPA firm in Fall 2004 to examine County operations for possible revenue enhancements and expenditure reductions. Both school systems have entered into similar agreements with the Segal firm. Segal is reimbursed for their work by retaining a portion of the document savings they obtain on behalf of their clients, as recognized and agreed to by the client. A copy of this signed agreement between the County and Segal is attached. The Board also has expressed interest in having the Segal firm identify other opportunities for operational efficiencies and observations about resource deployment that it may identify during the course of its assessment of County and school operations. This body of work is of interest to the BOCC particularly in the context of the ongoing examination by a UNC School of Education research team regarding the educational resources that are available to the County's two school systems, Since this body of work does not lend itself to reimbursement of the Segal firm through a portion of operational savings, staff proposes that the Board authorize the Manager and staff to work with the Chair to develop and execute appropriate agreement(s) with the Segal firm as the need arises. Such agreements would provide reimbursement to the Segal firm at an appropriate market -based hourly rate to be negotiated between the County and Segal as opportunities are noted. 2 FINANCIAL IMPACT: Funding for any work performed by the Segal firm that would not involve remuneration as a portion of identified savings would be provided through appropriations in the existing 2004 -05 Orange County budget. RECOMMENDATION(S): The Manager recommends that the Board authorize the Manager and staff to work with the Segal firm to develop and execute appropriate agreements, as described in this abstract, subject to final review by staff and the County Attorney. ROBERTS. SEGAL, CPA PA 3 EXPENSE REDUCTION & REVENUE ENHANCEMENT 1912 EASTCHESTER DRIVE SUITE 206 HIGH POINT, NC 27265 336.886 -2100 FAX 336. 886 -2101 www.segalcpa.com LETTER OF AGREEMENT Robert S. Segal, CPA, PA (SEGAL) and county of orange (CLIENT) hereby enter into this Letter of Agreement whereby SEGAL shall serve as a consultant to CLIENT to examine and analyze the following listed expenses /revenues of CLIENT and to make recommendations to achieve savings, credits, refunds or additional revenues, hereafter referred to as funds, in these areas: Any and all revenues and expenses SEGAL will furnish CLIENT with a written report as to recommendations that may be made in the above areas, CLIENT will then determine which (if any) of these recommendations CLIENT wishes to implement. SEGAL will then assist in the implementation of these recommendations to achieve the funds. Future savings and revenues are computed on a per unit basis. CLIENT agrees to pay SEGAL on each recommendation for funds which is implemented, a fee equal to fifty (50) cents of every dollar saved, credited, refunded or additional revenues during the 24 month period immediately following full implementation of the recommendation, This fee will be paid quarterly following the date of full implementation of the particular recommendation. SEGAL AGREES TO MAINTAIN IN STRICT CONFIDENCE ALL INFORMATION RECEIVED FROM CLIENT CONCERNING ITS EXPENSES AND METHODS OF DOING BUSINESS. FURTHERMORE, SEGAL ACTS AS A CONSULTANT ONLY AND DOES NOT RECEIVE ANY COMMISSIONS OR REMUNERATION OF ANY KIND FROM ANY VENDORS OR SERVICE PROVIDERS. The persons signing below are authorized to do so on behalf of their respective organizations. This Letter of Agreement shall be binding upon the parties hereto, their heirs, successors and assigns. This Letter of Agreement is entered into effective as of 19th day of October, 2004 CLIENT: 0 Title: