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Home My WebLink AboutCC Resolution 14257 (Accounting & Financial Reporting Services) (unsigned)RESOLUTION NO. 14257 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, on April 6, 2015, the City entered into a professional services agreement with Vavrinek, Trine, Day & Co., and on March 21, 2016, amended that agreement in order to ensure sufficient resources through the City's professional accountant staffing transition; and WHEREAS, the term of the professional services agreement, as so amended, expires on December 31, 2016; and WHEREAS, the City continues to require the services of Vavrinek, Trine, Day & Co. 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 the "Second Amendment to Agreement for Professional Services for Accounting and Financial Reporting Services" between the City of San Rafael and Vavrinek, Trine, Day & Co., attached hereto as "Attachment A" and incorporated herein, in a final form approved by the City Attorney's Office. 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 19th day of December, 2016, by the following vote to wit: AYES: Councilmembers: Bushey, Gamblin & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: Colin and McCullough cae� -e 012,&W ESTHER C. BEIRNE, City Clerk SECOND AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES FOR ACCOUNTING AND FINANCIAL REPORTING SERVICES THIS SECOND AMENDMENT to Agreement for Professional Services for Accounting and Financial Reporting Services is made and entered into the day of , 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, on March 21, 2016, the term thereof was further extended through December 31, 2016 pursuant to an "Amendment to Agreement for Professional Services for Accounting and Financial Reporting Services"; and WHEREAS, CITY and CONTRACTOR wish to extend the term of the Agreement as amended; AGREEMENT NOW, THEREFORE, the parties hereby agree as follows: 1. Section 4 of the Agreement, entitled " COMPENSATION" is hereby amended to increase the compensation amount under the Agreement by an additional $60,000, 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 $170,000, 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 1 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 31, 2017. 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 90 days, or when the not -to -exceed limit of this contract is reached. 3. Exhibit A is amended in accordance with the attached engagement letter dated December 2, 2016. 4. Except as specifically amended herein, all other terms and conditions of the Agreement, as amended on March 21, 2016, shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day, month and year first above written. CITY OF SAN RAFAEL CONTRACTOR JIM SCHUTZ, City Manager ATTEST: ESTHER C. BEIRNE, City Clerk APPROVED AS TO FORM: ROBERT F. EPSTEIN, City Attorney 2 Un Name: Title: Exhibit A Urr Vavrinek, Trine, Day & Co., LLP Certified Public Accountants December 2, 2016 Attn: Mark Moses City of San Rafael 1400 Fifth Avenue San Rafael, CA 94915 Re: Financial and Accounting Services Dear Mark: This engagement letter is to update our agreement for non -audit services with the City of San Rafael (the "City"). The standards to which Vavrinek Trine Day & Co., LLP ("VTD") will conform are intended to maintain objectivity and independence for both audit work and for non -audit work with government audit clients. The standard for non -audit services for government audit clients is based on two overarching principles: ■ Auditors (VTD) should not perform management functions or make management decisions; and ■ Auditors (VTD) should not audit their own work or provide non -audit services in situations where the amounts or services involved are significant / material to the subject matter of the audit. Based upon these principles, VTD may not be considered to be independent for the purposes of performing attest work (auditing) for the City covering fiscal years 2016-17 and 2017-18. OBJECTIVE OF ENGAGEMENT The firm of Vavrinek Trine Day & Co., LLP is available to assist you with financial consulting and accounting services covering your accounting records. Our firm is ready to begin work on this project whenever your City is ready to commence. SCOPE OF WORK Specific services to be provided follow. • Assist in preparing for interim audit work • Assist City in preparing government -wide updates and adjustments • Assist City in drafting note disclosures for annual financial statements • Assist City in populating financial information for fiscal year ending • Assist City in developing variance reports for analytical review at year end • Work with City staff in segregating output reports between its regular accounting software (EDEN) and its report writer software (ProSystems) • Assist the City in preparing note disclosures on pensions and other reporting changes • Assist with federal, state and local financial reporting • Assist in drafting financial statements and preparing reconciling adjustments • We will provide accounting assistance in closing the City's books each month • Assist the City in enhancing its financial procedures and controls. 2151 River Plaza Drive, Suite 308 Sacramento, CA 95833 Tel: 916.570.1880 www.vtdopa.com Fax: 916.570.1875 CLIENT RESPONSIBILITIES The work will be non -audit services as defined by Governmental Auditing Standards issued by the Comptroller General of the United States. Our work will not constitute an audit or review of transactions and should not be relied upon as such. The City is responsible for the appropriate recording and reporting of financial transactions and management decisions. Accordingly, all work will be conducted at your direction, the direction of the Director of Finance, to insure that the work meets the City's objectives. The Director of Finance will be responsible for reviewing and accepting any work product directly prepared by VTD, including any adjustments to the accounting records that may be proposed by VTD, or reports drafted by VTD during the engagement. Governmental Auditing Standards require that the City be responsible for the substantive outcomes of VTD work and be in a position in fact and appearance to make an informed judgment on the results of the non -audit services and that the City of San Rafael: • Designate a knowledge management level individual to be responsible and accountable for overseeing the non -audit services • Establishes and monitors the performance of the non -audit services to ensure that it meets management's objectives. • Makes any decisions that involve management functions related to the non -audit services and accepts full responsibility for such decisions. • Evaluates the adequacy of the services performed and any findings that result. STAFFING Vavrinek, Trine, Day & Co., LLP has owners that are not licensed as certified public accountants as permitted under Section 5079 of the California Business and Professions Code. It is not anticipated that any of the non -licensee owners will be performing audit services for the agency. FEES We estimate a price of $60,000 unless otherwise agreed to by the City in writing. Invoices will be submitted monthly and are due upon receipt. Hourly rates are effective through December 31, 2017. VTD Staff Hourly Rate__ Partner $195 Manager $165 Accounting Supervisor $145 Senior Accountant $98 Staff Accountant $85 TERMINATION OF ENGAGEMENT The engagement may be terminated by either party without cause. INDEPENDENT CONTRACTOR We are an independent contractor as defined by Federal and State taxing authorities. INSURANCE We maintain current worker compensation and liability insurance policies. If this letter correctly sets forth your understanding of the terms and objectives of the engagement, please so indicate by signing in the space provided below. Agreed to by: 114 �Z— Signature: Joseph Aguilar Print Name Of Vavrinek Trine Day & Co., LLP Of City of San Rafael Date: Date: