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R2009-081 - 2009-05-18RESOLUTION NO. R2009-81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A CONTRACT FOR AUDIT SERVICES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That engagement letter for audit services, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest an engagement letter for audit services. PASSED, APPROVED and ADOPTED this the 18th day of , A.D., 2009. ATTEST: /.7 ✓/ r Y t NG Lir' i t ?�'' C/ r Y SE ETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY TOM REID MAYOR To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 9 of 9 Null Lairson, P.C. RESPONSE: This letter correctly sets forth the understanding of the City of Pearland, Texas. By: Title: Date: May 18, 2009 /.TL Neu I��asixa°ca/r �r� May 5, 2009 To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas Exhibit "A" Resolution No. R2009-81 We are pleased to confirm our understanding of the services we are to provide the City of Pearland, Texas (the "City") for the year ending September 30, 2009. We will audit the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, which collectively comprise the entity's basic financial statements, of the City as of and for the year ending September 30, 2009 . It should be noted our audit of the financial statements does not relieve you or management of your responsibilities. The document we submit to you will include the following supplementary information required by generally accepted accounting principles that will be subjected to certain limited procedures, but will not be audited: 1. Management's Discussion and Analysis 2. Budgetary comparison schedules, 3. GASB -required supplementary pension information Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the financial statements upon which we will provide an opinion in relation to the basic financial statements: 1. Combining statements, 2. Individual fund statements 3. Supporting schedules 4. Schedule of Expenditure of Federal Awards The document will also include the following additional information that will not be subject to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will disclaim an opinion. 1. Introductory Section 2. Statistical Section To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 2 of 9 Audit Objectives The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken as a whole. The objective also includes reporting on: • Internal control related to the financial statements and compliance with laws, regulations and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards • Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A- 1 33, Audits of States, Local Governments, and Non -Profit Organizations. The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the city council, audit committee, management, specific regulatory bodies, federal awarding agencies, and if applicable, pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-1 33, and will include tests of accounting records, a determination of major program(s) in accordance with Circular A-133, and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of applicable laws, regulations, contracts, agreements and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal award To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 3 of 9 programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal awards, but the responsibility for the financial statements remains with you. Further, you are responsible for designating a qualified management -level individual to be responsible and accountable for overseeing these services The City's audit is a checking function that does not envision the making of adjustments to the accounting records. As part of our engagement, we may propose standard, adjusting or correcting journal entries to align your financial statements with generally accepted accounting principles. The number of journal entries needed to align a set of fmancial statements with generally accepted accounting principles is a direct reflection of the quality of the accounting records which in turn has a direct effect on the time required to perform the audit and thus the cost of it. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud affecting the government involving (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws and regulations. With regard to using the auditor's report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 4 of 9 With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Additionally, as required by OMB Circular A-133, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. As part of the audit, we will prepare a draft of your financial statements and related notes. In accordance with Government Auditing Standards, you will be required to review and approve those financial statements prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those financial statements. Further, you are required to designate a qualified management -level individual to be responsible and accountable for overseeing our services. We will prepare the general ledger trial balance for use during the audit. Our preparation of the trial balance will be limited to formatting information in the City's general ledger into a working trial balance. Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-1 33, our audit will include tests of transactions related to major federal award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform the appropriate level of management and/or the audit committee of any material errors and any fraudulent financial reporting or misappropriation of assets that comes to our attention. We will also inform the appropriate level of management (to include the city council and/or audit committee as applicable) of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. We will include such matters in the reports required for a Single To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 5 of 9 Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Identifying and ensuring that the City complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Procedures -Internal Controls In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on the City's financial statements and on its compliance with requirements applicable to major programs. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Tests of controls relative to the financial statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by OMB Circular A-133, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 6 of 9 An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. However, we will inform the city council and the audit committee of any matters involving internal control and its operation that we consider to be significant deficiencies under standards established by the American Institute of Certified Public Accountants. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A deficiency in design exists when (a) a control necessary to meet the control objective is missing or (b) an existing control is not properly designed so that even if the control operates as designed, the control objective is not always met. A deficiency in operation exists when a properly designed control does not operate as designed or when the person performing the control does not possess the necessary authority or qualifications to perform the control effectively. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by Government Auditing Standards and OMB Circular A-133. In addition, to the extent they are applicable, we will communicate to you certain other matters related to the conduct of the audit, as applicable, including: • Our views about your significant accounting practices, including accounting policies, accounting estimates and financial statement disclosures. • Significant difficulties, if any, encountered during the audit • Uncorrected misstatements, other than those the auditor believes are trivial, if any • Disagreements with management, if any, • Material, corrected misstatements that were brought to the attention of management as a result of audit procedures (recommended adjustments to financial statements). • Representations we are requesting from management. • Management's consultations with other accountants • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management • Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to you regarding your oversight of the financial reporting process. To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 7 of 9 Audit Procedures -Compliance Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the OMB Circular A-133 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major programs. The purpose of those procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to OMB Circular A-133. Audit Administration, Fees, and Other We expect to begin our audit in June and to issue our reports no later than the Following January. Christopher L. Breaux, CPA will be designated as the engagement partner and will be responsible for supervising the engagement and signing the report. We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. The audit documentation for this engagement is the property of Null Lairson, P.C. and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Null Lairson, P.C. personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $63,000. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work To the Honorable Mayor, Members of City Council and Audit Committee City of Pearland, Texas May 5, 2009 Page 8 of 9 progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. 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. You may request that we perform additional services not contemplated by this engagement letter. If this occurs, we will communicate with you regarding the scope of the additional services and the estimated fees. We also may issue a separate engagement letter covering the additional services. In the absence of any other written communication from us documenting such additional services, our services will continue to be governed by the terms of this engagement letter. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarizes our audit findings. It is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and a corrective action plan) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass-through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the engagement, we will provide information to management as to where the reporting packages should be submitted and the number to submit. Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Attached to this letter is our latest (2007) peer review report We appreciate the opportunity to be of service to the City 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. Very truly yours, '7„,,,avs, Davis, Kinard & Co., P.C. Certified Public Accountants June 6, 2008 To the Shareholders of Null Lairson, P.C. and the Center for Public Company Audit Firms Peer Review Committee First Financial Bank Building 400 Pine Street, Suite 600 Abilene, Texas 79601-5138 Office (325) 672-4000 FAX (325) 672-7049 1-800-588-2525 We have reviewed the system of quality control for the accounting and auditing practice of Null Lairson, P.C. (the firm) applicable to non -SEC issuers in effect for the year ended December 31, 2007. The firm has informed us that it did not audit SEC issuers for the year ended December 31, 2007. A system of quality control encompasses the firm's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of complying with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (the AICPA). The design of the system, and compliance with it, are the responsibilities of the firm. Our responsibility is to express an opinion on the design of the system, and the firm's compliance with that system based on our review. Our review was conducted in accordance with standards established by the Peer Review Committee of the Center for Public Company Audit Firms and included procedures to plan and perform the review that are summarized in the attached description of the peer review process. Our review would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it since it was based on selective tests. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, the system of quality control for the accounting and auditing practice applicable to the non -SEC issuers of Null Lairson, P.C. in effect for the year ended December 31, 2007, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the A1CPA, and was complied with during the year then ended to provide the firm with reasonable assurance of complying with applicable professional standards. DAVIS, KINARD & CO., P.C. AMENDMENT NO. D2 TO LEASE AGREEMENT This Amendment No. 2 to Lease Agreement ("Amendment No. D2") is entered into as of October 28, 2009 by the City of Pearland, Texas, a home -rule municipality of the State of Texas ("Landlord"), and the University of Houston System, an agency and institution of higher education of the State of Texas ("Tenant"). RECITALS WHEREAS, Landlord and Tenant entered into that certain Lease Agreement, dated as of March 2, 2009 (as amended from time to time, the "Lease Agreement"), whereby Landlord agreed to Lease Agreement the Leased Premises to Tenant. WHEREAS, the Building being constructed by Landlord pursuant to the Lease Agreement is being completed based upon the Plans as described on Exhibit C attached to the Lease Agreement. AGREEMENTS NOW 'THEREFORE, for good and valuable consideration, the receipt and sufficiency are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1. Definitions. All capitalized terms used herein but not defined herein shall have the meaning ascribed thereto in the Lease Agreement. 2. Amendment D2 . The Lease Agreement is hereby amended as follows: In accordance with Section 5C of the Lease Agreement, Tenant shall pay to Landlord $51,405.00 for the scope of work described in the document attached hereto dated September 30, 2009. This scope of work shall be included in the Plans for construction of the building. 3. Amendment to Schedule 2. Not Applicable. 4. Tenant Delay. The number of days of Tenant Delay in connection with Tenant's Request that necessitated this Amendment No. D2 is zero and the sum of all Tenant Delay days caused by Tenant's Request (inclusive of the number of days of Tenant Delay set forth. immediately above) as of the date of this Amendment D2 is zero. 5. No Other Amendments. Except as specifically provided in Amendment No. DI and this Amendment No D2, no other amendments, revisions or changes are made or permitted hereby to the Lease Agreement. All other terms and conditions of the Lease Agreement remain in full force and effect and apply fully to this Amendment No. D2. 6. Conforming References. Upon the effectiveness of this Amendment No D2, each reference in the Lease Agreement to "this Lease Agreement," "thereunder," HOU:2798218.10 "hereto," "herein," or words of like import, shall mean and be a reference to the Lease Agreement as amended hereby. 7. Counterparts. This Amendment No. D2 may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by Landlord and Tenant and delivered to each of them. 8. Applicable Law. This Amendment No. D2 and all rights and liabilities of the parties hereto with respect to the Lease Agreement shall be governed by the laws of the State of Texas. WITNESS THE EXECUTION hereof as of the date first above written. Landlord: City of Pearland, Texas ,a OFFICE oFTaE GENERAL COUNSEL, UNIVERSITY OF HOUSTON SYSTEMS HOU:2798218.10 By: Name: Title: Tenant: Unive ouston System By: C G.r ` Ca( 4 ks..ec.t Name: ` r Title: - cc -- \lc c. C-bantelk.o{/&fC..cc,iciVick Aapitkr\ 2 CONSTRUCTION, ILC. UHCL - PEARLAND CAMPUS SCOPE OF WORK - REQUEST FOR CHANGE (SECURITY WORK) The following additions to the security system are based on ADDED work to the initial costs generated by a clarification made by Palmer Construction dated 6-26-08, item 15. Added costs are also a result of the request by UHCL to utilize Stanley Security Systems to accommodate their security needs at the Pearland Campus similar to that of the Clear Lake campus. The below itemized scope of work was the result of a meeting with Palmer Construction, Studio Red Architects, Stanley Security and Jeff Gehman of UHCL on Friday Sept 18, 2009. 1 ACCESS CONTROL Sept. 30, 2009 ORIGINAL BASES FOR PRICING Hirsch Access System w/ 11 card readers on ext doors, Velocity software w/ Dell PC ($36,285) ACCESS CONTROL SYSTEM AS REQUESTED BY UHCL UTILIZING STANLEY SECURITY SYSTEMS AND PER DISCUSSIONS WITH JEFF GEHMAN ON SEPT 18, 2009 1 ea Hirsch Velocity Software Version 3.0 3 ea Hirsch Model 8 System Controllers 5 ea Hirsch Alarm 8 Input Boards 16 ea Hirsch Access Keypads 29 ea Connections to electric locks 38 ea Door Contacts 43 ea Line Modules 1 It Plenum Cabling 1 It Installation 6 ea Roll up Door Contacts 1 ea Motion Detector in Cash Office 4 ea Panic Buttons 1 It High performance PC work station 1 It Flash memory for (15) existing access controllers at UHCL campus to be compatible to be compatible with Hirsch Velocity 3.0 System 1 It Added hardware - electric locksets and existing devices $72,270 BALANCE OF INCREASED SCOPE OF WORK $35.985 2 CCTV SYSTEM AND CAMERAS AND INTRUSION SYSTEM ORIGINAL BASES FOR PRICING - CCTV SYSTEM AND CAMERAS Petco CCTV system w/ 5 exterior and 5 interior fixed cameras ORIGINAL BASES FOR PRICING - INTRUSION SYSTEM DMP Intrusion System w/ 10 motion detectors, 25 door contacts 35 glass break detectors and 2 key pads ($34,708) CCTV SYSTEM AND CAMERAS AS REQUESTED BY UHCL UTILIZING STANLEY SECURITY SYSTEMS AND PER DISCUSSIONS WITH JEFF GEHMAN ON SEPT 18, 2009 1 It CCTV/Camera system w/ alarm integration of interior Corridor Camera 3 ea ADD Camera's 1 ea ADD UPS to DVR INTRUSION SYSTEM AS REQUESTED BY UHCL UTILIZING STANLEY SECURITY SYSTEMS AND PER DISCUSSIONS WITH ]EFF GEHMAN ON SEPT 18, 2009 1 ea Cellular Radio Back up Device 1 ea Device Power Supply 1 ea Motion Detectors (Cash Office) 48 ea Glass Break Detectors (Perimeter Protection) 1 ea Indoor Siren 1 ea Outdoor Horn Strobe 1 ea Interconnnecting Plenum Cabling 1 ea Installation 1 ea Special Hirsch Panel to accommodate (48) glass breaks $20,000 $4,500 $780 $19,900 BALANCE OF INCREASED SCOPE OF WORK $10,472 NOTE: Excludes interface to Fire Alarm System, assuming that all electrified hardware shall have free mechanical egress (no magnetic locks or fail-safe locks). Please also note that the above criteria shall supersede the original HZ design criteria and currently shown on SBA's drawings and specifications. Changes will be made via ASI format once security work is approval by COP and UHCL. TOTAL INCREASE - SCOPE OF WORK $46,457 TOTAL INCREASE - DESIGN COSTS $2,500 Palmer Construction markup for changes - 5% $2,448 TOTAL CHANGE $51,405 Sign off for Approval and to proceed with design of scope items Leona .d Carth n Hui Ilars, Inc. an ./l iov- ity stop Clear Lake 3/2r/z date -3%2f/0 date date -J/niveity of Houst -e eal r Lake date