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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:
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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: