HomeMy WebLinkAboutFin Accounting & Financial ReportingCITY OF Agenda Item No: 3.b Meeting Date: March 21, 2016 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Mark Moses City Manager Approval: Finance Director TOPIC: PROFESSIONAL ACCOUNTING AND FINANCIAL REPORTING SUPPORT SERVICES SUBJECT: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH VAVRINEK, TRINE, DAY & CO, LLP FOR ACCOUNTING AND FINANCIAL REPORTING RELATED SERVICES RECOMMENDATION: ADOPT RESOLUTION BACKGROUND: The City's Finance Department has two authorized professional accounting staff: one Senior Accountant and one Accountant UII. These two positions are responsible for reviewing and generating entries to the City's accounting system, maintaining the integrity of the City's 42 funds, generating financial and audit reports, including the City's Comprehensive Annual Financial Report and State Controller's Reports. These two positions also double as budget support to departments, assisting them with budget development, as well as with the monitoring of their resources throughout the year. Between February and October 2015, the City lost both of its accounting staff: one to an outside promotional opportunity and the other to a planned retirement. Both of these employees were high -performing relative to their respective classifications. Despite multiple recruitment efforts that began in spring 2015 for the two professional accounting positions, the Finance Department has been successful only in replacing the Senior Accountant. The recruitment for an Accountant UII is ongoing; only 12 applications have been received since January 1, 2016, none of which resulted in serious consideration beyond initial screening interviews. Therefore, the timing of a positive outcome is uncertain. In April 2015, the City retained Vavrinek, Trine, Day & Co., (VTD), a regional government audit and accounting firm as a resource to assist the City in managing through the transition of core, professional accounting staff. The City's professional services agreement with VTD is scheduled to terminate on March 30, 2016. FOR CITY CLERK ONLY File No.: 4-3-587 Council Meeting: 03/21/2016 Disposition: Resolution 14085 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paye: 2 The purpose of this contract amendment is to address the City's accounting professional resource needs that continue in the absence of the Accountant VII. Staff discussed the Finance Department's staffing situation with the City Council Finance Committee at its meeting of March 17, 2016. ANALYSIS: In order to maintain continuity through the turnover of accounting staff, the Finance Department management considered a number of potential resources, including retired finance and accounting professionals, as well as firms that specialize in temporary accounting and finance staff placements. Due to the strong emphasis of the accounting positions on technical compliance with accounting rules (GASB and GAAP) and the implementation of the ProSystems financial reporting software (acquired in July 2014 to assist the City with internal production of its financial statements) and GASB 68, the City engaged VTD for technical accounting support. The City's annual operating and CIP budget schedules include the development of City-wide fund reporting updates in April and May, as well as consultation with departments as the preliminary budgets are finalized for the City's 42 funds. Throughout June and July, several important fiscal year-end close activities are scheduled in order to ensure that the annual audit can be completed within 90 days of fiscal year-end. In addition, the Community Services Department will require technical accounting support for the implementation of its new registration software system. Throughout this time, routine bank reconciliations and monthly journal entries need to be generated and reviewed. Accordingly, Staff recommends extending the term of the City's professional services agreement with VTD through December 31, 2016. The amended term of this contract will allow VTD to fill the staffing gap throughout the completion of the fiscal year 2016-2017 budget, fulfill monthly accounting tasks, provide critical support to the Community Services registration software implementation, and assist with the financial close and reporting process for fiscal year 2015-2016. The actual use of this contract and VTD's precise role will depend upon the timing of the filling of the vacant Accountant VII position, as well as the background, experience and aptitude of the future hire. FISCAL IMPACT: The proposed contract amendment increases the not -to -exceed compensation amount for the extended term of the agreement with VTD by $50,000 and is intended to cover the City's professional accounting and financial reporting needs through December 31, 2016. Staff will report to the City Council Finance Committee on the progress of the efforts to fill the accountant position. There are sufficient resources appropriated in the General Fund for these services, due to the accounting staff vacancy for which this contract is designed to backfill critical professional MATAKN-1 RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution RESOLUTION NO. 14085 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH VAVRINEK, TRINE, DAY & CO, LLP FOR ACCOUNTING AND FINANCIAL REPORTING RELATED SERVICES WHEREAS, the City of San Rafael's finance department has two authorized professional accounting positions whose purpose is to provide the central accounting, financial reporting and budget support functions for the City; and WHEREAS, the City has recently experienced turnover in both accounting positions and one position has been vacant since October 2015, notwithstanding ongoing efforts to fill the position; and WHEREAS, the City entered into a contract with of Vavrinek, Trine, Day & Co. on April 6, 2015, in order to ensure sufficient resources through the City's professional accountant staffing transition, and recommends the continued use of these services in order to fulfill City accounting and financial reporting requirements. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL HEREBY RESOLVES AS FOLLOWS: The City Council of the City of San Rafael hereby approves and authorizes the City Manager to execute an amendment to the professional services agreement between the City of San Rafael and Vavrinek, Trine, Day & Co. for the purpose of increasing the not -to -exceed compensation amount by $50,000, including expenses, and extending the contract term through December 31, 2016, in a form approved by the City Attorney's Office and effective upon contract execution. I, Esther C. Beirne, Clerk of the City of San Rafael, hereby certify that the foregoing Resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael City Council held on the 21 st day of March, 2016, by the following vote to wit: AYES: Councilmembers: Bushey, Colin, Gamblin and Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: McCullough ESTHER C. BEIRNE, City Clerk AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES FOR ACCOUNTING AND FINANCIAL REPORTING SERVICES THIS AMENDMENT to Agreement for Professional Services for Accounting and Financial Reporting Services is made and entered into the ,.?-/S7 day of lYsORW -, 2016, by and between the CITY OF SAN RAFAEL (hereinafter "CITY"), and VAVRINEK, TRINE, DAY & CO, LLP (hereinafter "CONTRACTOR"). RECITALS WHEREAS, on April 6, 2015, CITY and CONTRACTOR entered into an "Agreement for Professional Services for Accounting and Financial Reporting Services" (the "Agreement"), pursuant to which CONTRACTOR agreed to provide designated services to CITY through December 31, 2015; and WHEREAS, as provided in the Agreement, the term thereof was subsequently extended by 90 days, through March 30, 2016; and WHEREAS, CITY and CONTRACTOR wish to extend the term of the 2015 Agreement; AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: Section 4 of the Agreement, entitled " COMPENSATION" is hereby amended to increase the compensation amount under the Agreement by an additional $50,000, and as amended shall read in its entirety as follows: For the full performance of the services described herein by CONTRACTOR, CITY shall pay CONTRACTOR, pursuant to the schedule of CONTRACTOR'S fees which is included in attached Exhibit A, an amount not to exceed $110,000, including expenses. Payment will be made monthly upon receipt by PROJECT MANAGER of itemized invoices submitted by CONTRACTOR. 2. Section 5 of the Agreement, entitled "TERM OF AGREEMENT" is hereby amended to extend the term of the Agreement, and as amended shall read in its entirety as follows: The term of this Agreement shall be from the date of execution through December 3l, 2016. Upon written agreement of the PROJECT MANAGER and PROJECT DIRECTOR, the term of this Agreement can be extended for an additional period of up to the earlier of 120 days, or when the not -to -exceed limit of this contract is reached. 3. Except as specifically amended herein, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties have executed this Amendment as of the day, month and year first above written. CITY OF SAN RAFAEL CONTRACTOR 1 By: - JIM SC 1UT , City ana r Name: os���l� v► ty- ATTEST: ESTHER C. BEIRNE, City Clerk APPROVED AS TO FORM: �., • • •�lb 2 Title: At tti'0r PROFESSIONAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and Routing Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department Date 1 City Attorney Review, revise, and comment on draft agreement. 2 Contracting Department Forward final agreement to contractor for their signature. Obtain at least two signed 3/2 9'// originals from contractor. 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval /v 4 - necessary (as defined by City Attorney/City Ordinance*). 4 City Attorney Review and approve form of agreement; bonds, and insurance certificates and endorsements. 3I1ib 5 City Manager / Mayor / or Agreement executed by Council authorized Department Head official. 6 City Clerk City Clerk attests signatures, retains original agreement and forwards copies to theI��I contracting department. To be completed by Contracting Department: V ►�� z�a��� , ��iN� -. may Project Manager: SAA: N(os&s. Project Name: ACccwe"ti,5 <Qevx��'S' Agendized for City Council Meeting of (if necessary): FPPC: ❑ , check if required If you have questions on this process, please contact the City Attorney's Office at 485-3080. * Council approval is required if contract is over $20,000 on a cumulative basis. ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: 3/21/2016 From: Mark Moses Department: Finance Date: 3/10/2016 Topic: PROFESSIONAL ACCOUNTING AND FINANCIAL REPORTING SUPPORT SERVICES Subject: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH VAVRINEK, TRINE, DAY & CO, LLP FOR ACCOUNTING AND FINANCIAL REPORTING RELATED SERVICES Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: APPROVALS ® Finance Director Remarks: self -approved - MM ® City Attorney Remarks: LG -approved 3/10/16 ® Author, review and accept City Attorney / Finance changes Remarks: ® City Manager Remarks: