Sample Agreement - Annual Auditing Services.pdf

Disclaimer: This Sample Agreement is for informational purposes only.

TOWN OF CASTLE ROCK SERVICES AGREEMENT

(Annual Audit)

DATE: November 1, 2025 (the “Execution Date”).

PARTIES: TOWN OF CASTLE ROCK, a Colorado municipal corporation, 100 N. Wilcox Street, Castle Rock, Colorado 80104 (“Town”).

(insert name of Consultant) , (insert state of formation and entity type), (insert business address) (“Consultant”).

RECITALS:

A. Section 9-18 of the Town Charter states that the Town Council shall provide for an independent annual audit of all Town accounts by a certified public accountant or firm of such accountants who have no direct personal interest in the fiscal affairs of the Town government, or of any Councilmember, or of any other officer of the Town.

B. The Town Council may, without requiring competitive bids, designate such accountant or firm annually or for a period not exceeding three years, provided that the designation for any particular fiscal year shall be made no later than 30 days after the beginning of such fiscal year.

C. The Government Finance Officers Association guidance and industry standards recommend that municipalities enter into multi-year agreements when obtaining services of independent auditors to allow for greater continuity and to help minimize the potential for disruption in connection with the independent audit.

D. The Town has issued a Request for Proposals from qualified firms with expertise in providing independent audit services to local governments.

E. Town staff has evaluated the proposals submitted and recommends that the Town retain Consultant to conduct the annual audit for the fiscal year.

F. Accordingly, the Town wishes to engage Consultant to provide the services more fully described in the following Agreement and Exhibits.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the Town and Consultant hereby agree and covenant as follows:

Section 1. Scope of Services. Consultant shall provide all of the services as set forth on Exhibit 1 (the “Services”). Consultant shall complete the Services in accordance with Section 3 of this Agreement.

Section 2. Payment. Consultant shall invoice Town upon completion of the Services rendered in accordance with the rate and fee schedule set forth in Exhibit 2. Town shall remit payment to Consultant within 30 days of receipt of such invoice. In no event shall payment exceed $____________________ unless authorized in writing by Town.

Section 3. Term. The term of this Agreement shall commence on the Execution Date and expire on October 31, 2028 (the “Term”). The Town shall have an option to renew this Agreement for two (2) additional one (1)-year periods under the same terms and conditions by a written amendment to this Agreement executed prior to the expiration of the Term. Consultant shall devote adequate resources to assure timely completion of the Services in accordance with the standards specified in this Agreement. Consultant shall perform the Services under this Agreement using a standard of care, skill and diligence ordinarily used by reputable professionals performing under circumstances similar to those required by this Agreement.

Section 4. Termination. Town shall have the right to terminate this Agreement with or without cause at any time with thirty (30) days’ written notice to Consultant. The Town’s only obligation in the event of termination shall be payment of fees and expenses incurred up to and including the effective date of termination. Upon termination, Consultant shall immediately turn over all work product, materials, and/or deliverables created up to the point of termination.

Section 5. Subconsultants. Consultant may utilize subconsultants to assist with specialized services as necessary to complete the Services. Consultant will submit any proposed subconsultant and the description of subconsultant services to the Town for its prior approval.

Section 6. Annual Appropriation. The continuance of this Agreement in future fiscal years is contingent upon the appropriation of funds to fulfill the requirements of the Agreement by the Town. If the Town fails to appropriate sufficient monies to provide for the continuance of the Agreement, the Agreement shall terminate on the final day preceding the date of the beginning of the first fiscal year for which funds are not appropriated. The Town’s only obligation in the event of termination shall be payment of fees and expenses incurred up to and including the effective date of termination.

Section 7. Assignment. This Agreement shall not be assigned by Consultant without the written consent of the Town.

Section 8. Notice. Any notice required or permitted by this Agreement shall be in writing and shall be deemed to have been sufficiently given for all purposes if sent by certified mail or registered mail, postage and fees prepaid, addressed to the party to whom such notice is to be given at the address set forth on the first page of this Agreement, or at such other address as has been previously furnished in writing to the other party. Such notice shall be deemed given when deposited in the United States mail.

Section 9. Insurance.

A. General Conditions. Consultant agrees to secure, at or before the time of execution of this Agreement, the following insurance covering all Services provided pursuant to this Agreement. Consultant shall keep the required insurance coverage in force at all times during the term of the Agreement, including any extension thereof. The required insurance shall be underwritten by an insurer licensed or authorized to do business in Colorado and rated by A.M.

Best Company as “A-VII" or better. Each policy shall require notification to the Town in the event any of the required policies be canceled or non-renewed before the expiration date thereof. Such written notice shall be sent to the parties identified in the Notice section of this Agreement. Such notice shall reference the Town. Said notice shall be sent thirty (30) days prior to such cancellation or non-renewal unless due to non-payment of premiums for which notice shall be sent ten (10) days prior. If such written notice is unavailable from the insurer, Consultant shall provide written notice of cancellation, non-renewal and any reduction in coverage to the Town by certified mail, return receipt requested within three (3) business days of such notice by its insurer(s). Consultant shall be responsible for the payment of any deductible or self- insured retention. The insurance coverages specified in this Agreement are the minimum requirements, and these requirements do not lessen or limit the liability of the Consultant. The Consultant shall maintain, at its own expense, any additional kinds or amounts of insurance that it may deem necessary to cover its obligations and liabilities under this Agreement. All commercial and automobile liability policies shall have the following additional provisions:

(i) Severability of interests or separation of insureds provision;

(ii) Provision that coverage is primary and non-contributory with other coverage maintained by the Town;

(iii) The underlying Agreement is an “insured contract” under the policy; and

(iv) Defense costs shall be outside the policy limits for liability coverage.

B. Proof of Insurance. Consultant may not commence services or work relating to this Agreement prior to placement of coverages required under this Agreement. Consultant certifies that the certificate of insurance attached as Exhibit 3, preferably an ACORD form, complies with all insurance requirements of this Agreement. The Town’s acceptance of a certificate of insurance or other proof of insurance that does not comply with all insurance requirements set forth in this Agreement shall not act as a waiver of Consultant’s breach of this Agreement or of any of the Town’s rights or remedies under this Agreement. Each certificate shall identify the Project. Consultant agrees to provide written notice to the Town if coverage afforded under the policies is cancelled, terminated or materially changed within thirty (30) days following such event. If the words “endeavor to” appear in the portion of the certificate addressing cancellation, those words shall be stricken from the certificate by the agent(s) completing the certificate. The Town may require additional proof of insurance, including but not limited to policies and endorsements. Renewal certificates of insurance must be provided to the Town for up to three (3) years after completion of Services

C. Additional Insureds. For Commercial General Liability and Automobile Liability, Consultant and subconsultant’s insurer(s) shall include the Town, its elected and appointed officials, officers, employees, agents and volunteers acting within the course and scope of their duties for the Town as additional insured.

D. Waiver of Subrogation. For all coverages required under this Agreement except

Professional Liability Insurance, Consultant’s insurer shall waive subrogation rights against the Town, its elected and appointed officials, officers, employees, agents and volunteers acting within the course and scope of their duties for the Town.

E. Subconsultants. Consultant shall confirm and document that all subconsultants (including independent consultants, suppliers or other entities providing Services required by this Agreement) procure and maintain coverage as approved by the Consultant and appropriate to their respective primary business risks considering the nature and scope of services provided.

F. Workers’ Compensation and Employer’s Liability Insurance. Consultant shall maintain the coverage as required by statute for each work location and shall maintain Employer’s Liability insurance with limits of $100,000 per occurrence for each bodily injury claim, $100,000 per occurrence for each bodily injury caused by disease claim, and $500,000 aggregate for all bodily injuries caused by disease claims.

G. Commercial General Liability. Consultant shall maintain a Commercial General Liability insurance policy with minimum limits of $1,000,000 for each occurrence and $2,000,000 products and completed operations aggregate, and $2,000,000 general aggregate (per project). The policy shall provide coverage for all claims for bodily injury, property damage (including loss of use), products and completed operations, and contractual liability.

H. Automobile Liability. Consultant shall maintain Automobile Liability with minimum limits of $1,000,000 combined single limit applicable to all owned, hired and non-owned vehicles used in performing services under this Agreement.

I. Professional Liability (Errors & Omissions). Consultant shall maintain coverage in an amount not less than $1,000,000 per claim insuring claims and damages arising from the provision of Services and all deliverables associated therewith and, to the extent applicable, including coverage for intentional and unintentional disclosure of confidential information. The policy shall be kept in force, or a Tail policy placed, for up to three (3) years after the completion of the Services and the retroactive date for the claims-made policy shall be provided on the certificate of insurance.

Section 10. Colorado Governmental Immunity Act. The parties understand and agree that the Town is relying on, and does not waive or intend to waive by any provision of this contract, the monetary limitations or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S., as from time to time amended, or otherwise available to Town, its officers, or its employees.

Section 11. Indemnification. The Colorado State Constitution prohibits the Town from the practice of indemnifying any party, public or private. Therefore, the Town is prohibited from entering into any agreement that requires indemnification of Consultant by the Town and any such language herein is null and void. Consultant expressly agrees to indemnify and hold harmless the Town or any of its officers, agents, or employees from any and all claims, damages, liability, or court awards, including reasonable attorney’s fees, that are or may be awarded as a result of any loss, injury or damage sustained or claimed to have been sustained by anyone, including, but not limited to, any person, firm, partnership, or corporation, to the extent caused by the negligent acts, errors or omissions of Consultant or any of Consultant’s officers, employees or agents in performing Services pursuant to this Agreement. In the event that any such suit or action is brought against Town, Town will give notice to Consultant within ten (10) days of the Town being served. These defense and indemnification obligations shall survive the expiration or termination of this Agreement.

Section 12. Delays. Any delays in or failure of performance by any party of the obligations under this Agreement shall be excused if such delays or failure are a result of acts of God, fires, floods, strikes, labor disputes, accidents, regulations or orders of civil or military authorities, shortages of labor or materials, or other causes, similar or dissimilar, which are beyond the control of such party.

Section 13. Additional Documents & Entire Agreement. The parties agree to execute any additional documents or take any additional action that is necessary to carry out this Agreement. Further, this Agreement represents the entire agreement between the parties and there are no oral or collateral agreements or understandings. This Agreement may be amended only by an instrument in writing signed by the parties. If any other provision of this Agreement is held invalid or unenforceable, no other provision shall be affected by such holding, and all of the remaining provisions of this Agreement shall continue in full force and effect.

Section 14. Time of the Essence. If any payment or any other condition, obligation, or duty is not timely made, tendered or performed by either party, then this Agreement, at the option of the party who is not in default, may be terminated by the non-defaulting party, in which case, the non-defaulting party may recover such damages as may be proper, subject to Section 15 of this Agreement.

Section 15. Default and Remedies. In the event either party should default in performance of its obligations under this Agreement, and such default shall remain uncured for more than ten (10) days after notice of default is given to the defaulting party, the non-defaulting party shall be entitled to pursue any and all legal remedies (subject to the following limitations on damage) and recover its reasonable attorney’s fees and costs in such legal action. No party will be entitled to lost profits, or incidental, consequential, punitive or exemplary damages in the event of a default.

Section 16. Waiver. A waiver by any party to this Agreement of the breach of any term or provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party.

Section 17. Venue, Choice of Law and Disputes. Venue for all legal actions shall lie in the District Court in and for the County of Douglas, State of Colorado, and shall be governed by the laws of the State of Colorado as well as the Charter and Municipal Code, rules, regulations, Executive Orders, and fiscal rules of the Town.

Section 18. Americans with Disabilities Act. Consultant agrees to ensure that any deliverables, work, services, or equipment developed, designed, constructed or produced pursuant to this Agreement, to include website design services, will comply with all requirements of the Colorado Anti-Discrimination Act, Title II of the Americans with Disabilities Act and, where applicable, Section 504 of the Rehabilitation Act and the Architectural Barriers Act. To the extent any deliverables, work, services, or equipment developed, designed, constructed or produced pursuant to this Agreement fail to comply with the requirements of this Section, Consultant shall indemnify the Town in accordance with the terms or this Agreement and, at the Town’s option, shall re-vise, re-construct, or similar, the non-compliant deliverable, work, service, or equipment, or reimburse the Town for the cost associated with bringing the non-compliance deliverable, work, service or equipment into compliance.

Section 19. No Discrimination in Employment. The Town is a governmental agency and, therefore, in connection with the performance of the Services under this Agreement, Consultant shall not refuse to hire, discharge, promote or demote, or to discriminate in matters of compensation against any person otherwise qualified, solely because of race, color, religion, national origin, gender, age, military status, sexual orientation, gender identity or gender expression, marital status, or physical or mental disability, or any other protected class under Federal or State law; and Consultant shall insert the foregoing provision in any subcontracts hereunder.

Section 20. Title VI Compliance. To the extent applicable, Contractor shall ensure its current and future compliance with Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d et seq., as amended, which prohibits the exclusion from participation, denial of the benefits of, or subjection to discrimination under programs and activities receiving federal financial assistance, of any person in the United States on the ground of race, color, or national origin.

Section 21. Digital Accessibility. Consultant shall be responsible for ensuring that all deliverables, work, services, or equipment developed, designed, constructed or produced pursuant to this Agreement comply with Colorado law governing digital accessibility, including but not necessarily limited to at a minimum conforming with the current Web Content Accessibility Guidelines followed by the State of Colorado. To the extent any deliverables, work, services, or equipment developed, designed, constructed or produced pursuant to this Agreement fail to comply with the requirements of this Section, Consultant releases, defends, indemnifies and holds harmless Town, its officers, agents, and employees from any and all claims, damages, suits, costs, expenses, liabilities actions or proceedings of any kind or nature whatsoever, of or by anyone whomsoever, in any way resulting from, or arising out of, directly or indirectly, said failure. These defense and indemnification obligations shall survive the expiration or termination of this Agreement

Section 22. Advertising and Public Disclosure. Consultant shall not include any reference to this Agreement or Services provided pursuant to this Agreement in any of Consultant’s advertising or public relations materials without first obtaining the written approval of the Town.

Nothing herein, however, shall preclude the transmittal of any information to officials of the Town, including without limitation, the Town Attorney, Town Manager, and the Town Council.

Section 23. Ownership of Documents, Open Records, and Copyright. Any work product, materials, and documents produced by the Consultant pursuant to this Agreement shall become property of the Town upon delivery and shall not be made subject to any copyright or made confidential or protected in any manner unless authorized by the Town. Other materials, methodology and proprietary work used or provided by the Consultant to the Town not specifically created and delivered pursuant to the Services outlined in this Agreement may be protected by a copyright held by the Consultant and the Consultant reserves all rights granted to it by any copyright. However, Consultant acknowledges and understands that the Town is subject to the Colorado Open Records Act, C.R.S. § 24-72-201, et seq. The Town shall not reproduce, sell, or otherwise make copies of any copyrighted, confidential or protected material, subject to the following exceptions: (i) for exclusive use internally by Town staff and/or employees; or (ii) pursuant to a request under the Colorado Open Records Act, C.R.S. § 24-72-201, et seq., to the extent that such statute applies; or (iii) pursuant to law, regulation, or court order. The Consultant waives any right to prevent its name from being used in connection with the Services.

Consultant warrants that all Services performed under this Agreement shall comply with all applicable patent, trademark and copyright laws, rules, regulations and codes of the United States. Consultant shall not utilize any protected patent, trademark or copyright in performance of the Work or Services unless Consultant has obtained proper permission and all licenses, releases and other necessary documents. Consultant releases, defends, indemnifies and holds harmless the Town, its officers, agents, and employees from any and all claims, damages, suits, costs, expenses, liabilities actions or proceedings of any kind or nature whatsoever, of or by anyone whomsoever, in any way resulting from, or arising out of, directly or indirectly, the performance of Services under this Agreement which infringes upon any patent, trademark or copyright protected by law.

Section 24. Authority. The individuals executing this Agreement represent that they are expressly authorized to enter into this Agreement on behalf of the Town and Consultant and bind their respective entities. This Agreement is executed and made effective as provided above.

Section 25. Independent Consultant. Consultant and the Town hereby represent that Consultant is an independent contractor for all purposes hereunder. Consultant is not covered by any worker’s compensation insurance or any other insurance maintained by Town except as would apply to members of the general public. Consultant shall not create any indebtedness on behalf of the Town.

Section 26. No Third-Party Beneficiaries. It is expressly understood and agreed that enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to Town and Consultant, and nothing contained in this Agreement shall give or allow any such claim or right of action by any other third party on such Agreement. It is the express intention of the parties that any person other than Town or Consultant receiving services or benefits under this Agreement shall be deemed to be an incidental beneficiary only.

Section 27. Counterparts & Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall be deemed to constitute one and the same instrument. Each of the parties hereto shall be entitled to rely upon a counterpart of the instrument executed by the other party and sent by electronic mail. Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Agreement or such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

Section 28. Licenses/Taxes. Consultant affirms it is licensed to do business in the State of Colorado and is in good standing. Further, Consultant shall be solely responsible for paying all applicable taxes associated with or rising out of this Agreement.

Section 29. Confidentiality. Consultant agrees that it shall treat as confidential all information provided by the Town regarding the Town’s business and operations. All confidential information provided by the Town hereto shall be used by Consultant solely for the purposes of rendering Services pursuant to this Agreement and, except as may be required in carrying out the terms of this Agreement, shall not be disclosed to any third party without the prior consent of the Town. The foregoing shall not be applicable to any information that is publicly available when provided or which thereafter becomes publicly available or which is required to be disclosed by any regulatory authority in the lawful and appropriate exercise of its jurisdiction over a party, any auditor of the parties hereto, by judicial or administrative process or otherwise by applicable law or regulation.

Section 30. Priority of Provisions. In the event that any terms of this Agreement and any Exhibit, attachment, or other referenced document are inconsistent, the following order of priority shall control: (i) this Agreement; (ii) Exhibit containing Certificate of Insurance; and (iii) Exhibit containing Services and Fee Schedule.

ATTACHED EXHIBITS:

EXHIBIT 1 – SCOPE OF SERVICES

EXHIBIT 2 – FEE SCHEDULE

EXHIBIT 3 – CONSULTANT’S CERTIFICATE OF INSURANCE

(Remainder of Page Intentionally Left Blank)

TOWN:

ATTEST: TOWN OF CASTLE ROCK

Lisa Anderson, Town Clerk Jason Gray, Mayor

Approved as to form: Approved as to content:

Michael J. Hyman, Town Attorney Trish Muller, CPA, Finance Director

CONSULTANT:

(insert name of Consultant)

(insert name and title of authorized signator)

EXHIBIT 1

SCOPE OF SERVICES

(to be inserted)

EXHIBIT 2

FEE SCHEDULE

EXHIBIT 3

CERTIFICATE OF INSURANCE