HomeMy Public PortalAbout11) 7D Approval of Fifth Amendment to the Agreement with Vavrinek, Trine, Day and CompanyAGENDA
ITEM 7.0.
ADMINISTRATIVE SERVICES DEPARTMENT
DATE:
TO:
FROM :
MEMORANDUM
May 7 , 2019
The Honorable City Council
Bryan Coo k, City Ma nager CH
By : Susan Paragas , Administrative Services Director .,
SUBJECT: APPROVAL OF A FIFTH AMENDMENT TO THE AGREEMENT WITH
VAVRINEK, TRINE, DAY & COMPANY, LLP FOR PROFESSIONAL
AUDIT SERVICES
RECOMMENDATION:
The City Council is reques ted to authorize the City Manager to enter into a f ifth
amendment t o the agreeme nt for profess io na l aud it services w ith Vavrine k , Trin e , Day
& Company , LLP (VTD ) extend ing their services for Fiscal Year (FY ) 20 18-2019
(Attachment "A ").
BACKGROUND:
1. On January 6 , 2016 , the City requested p roposals from qua l ified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financia l statements
beginning with the fisca l year ending June 30 , 2016 , wi t h the option to renew the
contract for an additional two f iscal years , f or a total of 5 years .
2 . On Ap ril 5 , 2016 , the C ity Council authorized the C ity Manager to en te r into an
agreement for professional audit services ("Agreement") with VTD for FY 2015-16.
3 . On April 4 , 2017, the City Council authorized t he City Manager to enter into a f i rst
amendment to the Agreemen t for profess ional audit services with VTD for FY 2016-
17.
4. On April 17 , 2018 , the C ity Council authorized the City Manager to ente r into a
second amendment to the Agreement for p rofessional aud it services with VTD for
FY 2017-18.
5 . On January 2 , 2019 , the City Council authorized the City Manager to enter into a
third amendment to the Ag reement for professional audit services w ith VTD f or the
FY 2017-18 GASB 75 accounting entries and related note disclosures .
City Council
May 7 , 2019
Page 2 of 2
6 . On February 5 , 2019, the City Council authorized the City Manager to enter into a
fourth amendment to the Agreement for professional audit services with VTD for the
preparation and submission of the FY 2017-18 State Controller's Office Cit ies
Financ ia l Transactions Report.
ANALYSIS:
In April 2016 , the City entered into the Agreement with VTD for profess iona l aud it
services commencing with FY 2015-16 . The Agreement is for three (3 ) years with the
ability to extend it for two (2) one-year agreements , which would be through FY 2019-
20 . Th is request applies to the first of the 2 one-year extension . It is anticipa ted that
the City w i ll extend VTD 's Agreement for FY 2019-20 . Subsequently , a request for
proposal will be issued to sol icit firms to provide aud it services .
VTD's aud it services were satisfactory for FY 2017-18 and as a result , it is request ed
that the City Council authorize the City Manager to enter into the Fifth Amendment with
VTD to perform the annual independent audit for FY 2018-2019 . The scope of services
is also amended to include the preparation of the GASB 75 Other Post-Employment
Benefits accounting entries and related note disclosures for the City 's fi nancial
statement at an additional cost of $2 ,500 .
CITY STRATEGIC GOALS:
Actions contained in this report al ign with the City's strategic goa l of good governance.
FISCAL IMPACT:
There is no fiscal impact for FY 2018-2019 as the audit costs will be budgeted in FY
2019-20 . The total estimated FY 2019-20 costs , with the Fifth Amendment , shall not
exceed $58 ,730 .
ATTACHMENT(S):
A . Fifth Amendment to Agreement with VTD
ATTACHMENT A
FIFTH AMENDMENT TO AGREEMENT FOR SERVICES
by and between
the
CITY OF TEMPLE CITY
and
VAVRINEK, TRINE, DAY & COMPANY, LLP
Dated May 7, 2019
Pa ge I of l 3
ATTACHMENT A
FIFTH AMENDMENT TO AGREEMENT FOR SERVICES
This Fifth Amendment to the Agreement for Services ("Fifth Amendment"), which is dated
for reference as indicated on the cover page, is hereby entered in to by and between the CITY OF
TEMPLE CITY, a Cali fornia charter city ("City"), and Vavrinek, Trine, Day & Company, LLP
("Service Provider"), as follows:
RECITALS
A. On January 6, 2016, the City requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to a udit its financial statements beginning
with the fiscal year ending June 30, 20 16 , with the option to renew the contract for an
additional t wo fiscal years, for a total of 5 yea rs .
B. On April 5, 20 16 , the C ity Council authorized the C ity Manager to enter into an agreement
("'Agreement") for professional audit services with VTD for Fiscal Year ('·FY'.) 2015 -16.
C. On April 4 , 2017, the City Council authorized the City Manager to enter into a first
amendment to th e Agreement fo r professiona l audit services with VTD for the FY 2016 -
17.
D. On Apr il 17 , 2018, the City Counci l authorized the City Manager to enter into a second
amendment to the Agreement fo r professional audit services with VTD for the FY 2017-
18.
E. On January 2, 20 19 , the City Counc i l authorized the City Manager to enter into a third
amendment to the Agreement for professional a udit services ("Third Amendment") with
VTD to include the preparation of th e req uired GASB 75, Accounting and Finandal
Reporting for Poslemploymenl Benefits other than Pensions , accounting entri es and
disclosures fo r the FY ended June 30, 2018.
F. On February 5, 2019 the C ity Council authorized the City Manager to enter into a fourth
amendment to the Agreement for profess ional audit services with VTD for the preparation
and submi ssion of the FY 2017-18 State Contro ll e r 's Office Cities Financial Transactions
Report.
G. On May 7, 20 19 , the City Council authorized the City Manager to enter into a fifth
amendment to the Agreement ("Fifth Amendment") for professional audit services with
V TD fo r FY 20 18-1 9.
OPERATIVE PROVISION
OW, THEREFORE, in considerat ion of the promises made and recited herein , the
parties do hereby e nter into thi s Fifth Amendment, which modifies and amends the Agreement as
follows:
Page 2 of 13
ATTACHMENT A
I. AMENDMENT. The Agreement is hereby modified and amended as follows:
1.1 Section I . Secti on I is he reb y modifi ed and amended as follows:
Subject to th e prov isions of Section 20 "Termination of
Agreement"' of th is Agreement, the Term ofthis Agreement is for
12 months commencing on the date when the Fifth Amendment is
properly executed by the appropriate authorities of the City and
Service Provider.
1.2 Section 2 of the Agreement is he reby amended as follows:
T he Service Provider wi ll prepare th e GASB 75 Other Post-
Employment Benefits accounting entries and related note
disclosures for the City 's financ ial statement in addition to the
services included in the Agree ment.
1.3 Section 4 of the Agreement is hereby amended as follows: The
third sentence of Sect ion 4 , s ubparag raph (a) of the Agreement is
amended to read as follows:
The tota l a ll-in clusive m aximum fee for FY 2018 -19 audit sha ll be:
Fifty-Eight Thousand Seven Hundred and Thirt y Dollars ($58 ,730).
Amount not to c hange unless additional compensation is approved
in writing by the City Council or City Manager.
2 . GENERAL PROVISIONS.
2.1 Remainder U nch a n ged. Exce pt specifically modified and amended in
th is Fifth Amendment and previous amendments, First, Second, Third and Fourth
Agreements remain in full force and effect and binding upon the part ies.
2.2 Integration. T hi s Fifth Amendment consists of pages I to page 6
inclusive, which constitute the entire understanding and agreement of the parties and
supersedes all negotiations or previous agreements between th e parties with respect to all or
a ny part of the transaction discussed in thi s Fifth Amend ment.
2.3 Effective Date. T hi s Fifth Amendm ent is effective on the date it was
formally approved b y the City Co uncil and executed by the appropriate authorities of the
City and ervice Provider.
2.4 Applicable Law. The laws of the State of Ca li forn ia shall govern the
interpretation and enforce m e nt of this Fir st Amendmen t.
Page 3 of 13
ATTACHMENT A
2.5 References. All references to the Agreement include all their
respective terms and provisions. All defined terms utili zed in this First Amendment have the same
meaning as provided in the Agreement, unl ess expressly stated to the contrary in this Fi rst
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed thi s Fifth Amendment to
the Agreement on the date and year first wri tten above.
CITY:
THE C ITY OF TEMPLE ClTY
By: _________________________ __
Bryan Cook, City Manager
ATTEST:
Peggy Kuo , City C lerk
APPROVED AS TO FORM
Gregory M . Murphy, C ity Attorney
SERV ICE PROVID E R :
Vavrinek, Trine , Day & Company, LLP
By: ________________________ _
N ame: __________________ _
T itl e:
By: ________________________ _
Name: ____________________ _
T itl e:-----------------
Pa ge 4 of 13
ATTACHMENT A
A notary public or other officer completing this ce rtificate verifies only the identity of the ind ivid ual who
signed the document to which th is certificate is attached , and not the t ru thfulness , accuracy, or vali dity
of that document.
NOTE: SERVICE PROVIDER'S SIGNATURES S HALL BE DULY NOTARIZED, AND
APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE
REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER
RULES OR REGULATIONS APPLICABLE TO SERVICE PROVIDER'S
BUSINESS ENTITY.
ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
On -------.~=------''L-.!2::..:0::.__, before me, --,rr:;-;:;;-;:;-:~rr:l~"'T"r=;:;;-/=.......-r.=""T"'";:;~=~!T.'":l:=.,.---Date Name And Iitle Of Offi cer (e .g . "Ja ne Doe, Notary Public")
personally appeared-------------------------------
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person (s) whose
name(s) is /are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity (i es), and that by
his/her/their signature(s) on the instrument the person (s), or the ent ity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the l aws of the State of California that
the forego ing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Th ough this section is optiona l, completing th is informati on can deter alternation of the document or fra udu lent
reattachment of this form to an unintended document.
CAPACIT(IES) CLAIMED BY SIGNER(S)
Signer's Name :
Individual
Corporate Officer
DESCRIPTION OF ATTACHED DOCUMENT
Title(s) Title or Type of Document
Partner(s) Limited
Ge neral
Attorney-In-Fa ct Number Of Pages
Trustee(s)
Guardian /Conserv ator
Other:
Date Of Document
Signer is represent ing :
Name Of Person(s) Or Entity (ies )
Pa ge 5 of 13
ATTACHMENT A
E XHIBIT A
SCOPE AN D SER VI CES
ection 5 -Audit Plan / cope of Work
,\. O u r P ro p o ~e d udit P lan
Our cng..lgcmcnt a pproa h lor the Cll~ ol I em pic C i t~ ..1ud11 h~ "cll-dct.t i h:d go.tb b~ "hich the cr ·~.tgcmcnt
partner an mo:a~u r e prog rc '· Our nutl 1t pl an mdmk-, trc-tuent contact he t\\ cen the partnl'r and the
e ngage ment tea m to a urc thJt objeCt I\ c:' ..1rc aliJmc:d J l.'l rdm • to th e J Utllt chcduk:. Jntl th.ll problem:. Me
ommunicated and dea lt "ith on a tim e!~ ba~is Our o:nga gc mcnt approJch bene lit) I rum our long
<tc cum uiJtc:d e\J)I:n c m:e d ur ing "h1 h ou r li n n hJ 1d c n111icd 1-c., .trc a:. ol lin.tnl'IJ I .tnd ,, ·countmg con~· ern 111
thl' audit pnxc\\. \.i o rr important I~. tht:' approac h pr o\ 1dc' lor a l'O mpktr rc '"'l'''lllcnt (lt the rn rmrccnwnt
and con trol en ' ir mn cnl in c.tch) c.sr'' aud it ~uu.J thu' 1' ~...tp.thlc ut rc,~mtl1n~ to t:h<.~ngc' and "sll cn\urc th<~t
tlc.r dl inc:. arc met in bsumg the annu..1l tinanci:~l '>la tcmc nh.
r he I.e~ d tJri.ll. h:ri ti of our cngJt; ·mcnt .1pproad1 Jrc
• All lll!t'dl!t (If iht' ('II\' II/ r.mplt· ('1111111.1 \WIIl<lr l'llfl(/l'\ \\c h.t\C: C\ten i\C C\('Crtcn ,c Juditing
I! 1crnmcntal cn t1tic "malar to th\.· t it~ I hs ~·,pcricm.c cnat-k.., u ... to pe rform J more dtio.11:n t
.tudit .111J 1tlcn 11 t} I.e) au~..ht ri-.1-.,
• Cmt ,•lft'dlll'/11!.1 '· Our c:\pcrscnccd aud i t or ~ lo" pc r.:cnt J gc o f tu rno' c1 rc du(c yo ur l'O~t
• '""'''Ill•'', \\<c t ~sl..c dcatllmc!!>. both} o ur .111d our-. \cnou~l ).
• /',trill<'' mtliiUR<'r ulln/\,'lll<'flf Deci di ng on audit ~tr,Hcgi c~ n:qu trc~ "c a o nc d JUd _m.:nt Our
p.trtn~·r, and m .tn ,I~Cr\ h o~ c lxcn hc,l\ rl~ llld ~o:lm t muou'>l) Ill\ nh c~l 111 g1H cmmc;nt.tl auJII,
1-urtht'mlorc. > uu 11 til be Jbk to con )ult 1\ ith 'en or tcJm member' 11 hcnt'\ cr necJcJ thruu ·hout th e
> cJr. \\ c .trc al'asl,tbk durmg the 1 c.1r to r an~ tddltlllfl JI c n ultatron that ma~ an'-C ard 'pcdtic:J m
the rc qu e..,t for propo al.
Protl'U ,\l mm:s•mt•nt Ot era /I , llu/11
Our audit plan for each of th c fi nl }ear-iO\ol~ocs o;i\ (61 t .t~c~ for each audll. I hc'c )tagc' rtrc·
'tagc I. Plan ni ng
'tage ~. Ri 1.. A:. c ~m c nt
. ta •c 1. Pn :pa ration ofthc \Crull udi t PIJ n
tJgc .t . t on du ctsng tht:' lntcnm \ud st
tagc 5. Condu ting the I rn.ll \udit
;,tagc 6 R ·port ing
I he'" '>t.tl c' 11 ill lx appl ied to the Ci t ~·, C J\ I R audit '" "ell ,,., the uth.:r Juthh I he .rudll appr~•J ~o. 'l "til ~t'
tarlorcd to the rr 1-ol ead1 rndr~o 1du.1l c:nllt\ .md the ~e.tk "111 .al'o be .ttlJu tl·d ,,, no:O.:l'".t~ to en un: that each
l'ntrt) · tinancial 'tatc menh arc fa 1r l ~ 'tatcJ
.\'ta gr> /, PI 111111ng
1 D will meet wi th 1-e) :.tun to plan thl' Jud it '>l'TI i<.:l· tor th e >car. I hcse meet ings 11 all di cus all ,au dit
i~ 'tiC'> and the proposed in terim ''llfl.. plan . Ounn • th1~ phJ~c. 11e "ill a co m plr h
• ltlcntlf) ing the 1-c) pcr-,onncl an d lOill.t eh in the l·mJ illC D.:p.trtmcnt Jlld oth ·r depart ment
• ldenllf) the Ci t} o l I cmp h: lit\ sgnslitJnt cla'w' lll tmn~.1ct t on and bu me rr<Xt:'~'e'
• Clht :un .ln uncicl"\tnndsnf of audit rl'il-.1rc.t'
• Oc1 clopmg .m umlcr-.tandm~o of unu,ual tran">.ldlon' or C\ ent'> th at h..11 ~ o urrcd dunnl th~ ti~ al
'car
• I ormJiumg log b ti s.
• hnalrti ng the timdrJ mc lor rntc ru n ticld\\O r 1..
Pa ge 6 of 13
----------~--
ATTACHMENT A
cction 5 -Audit Plan / cope of\ ork
\. Our Pro p o~ctl •\u ll il Pl a n. (C o n t inul'd )
.I"' I \111<'/11
th~ mlom1ati n ohtam.:J tn the: pl.mnant-nw.:t n •:. \'I D "til pcrlorm a n!> J:.~ 'mem J')
required b) tatenll~n l ' on i\udlltng tandanh ( \ ) to b\.' u c:d tn the pr'rlJr • .tlton o f the 01 ..:rail audn plan
\.,part oltht' rt l J '>t.::. mc:nl \\C: '"II p.:rlorm the loiiOI\1111:!
I. Obtai ar ndc:~tand m~,; ol the cnttl) and th en' tronmcnt and 11 rt b and mmcrial ""rnpltlUh.t.:
n:qlmcll'cnh \ I D '"II refer to the Cit~\ pd{•r ll'ar Comprcheno;iH: Annual J inan .. s.sl Rcpc•rt . nnual
buJ~d di.Xumc:m. rnuntdpal ode and other rdc:1 a 11 do .. urm:nt.lt ton to a 1 1 "111'> our undc:r andtn • ul
the C. I} bu tnt::.'> t.:ll \ tronrnen t and ri)l..' \ ID "sll al o wndu 1 mqutf) "nh le~ md11 tdu al "tthtn the
Ctt> '' ho .m: rc pon i ble lor c\ccuttnt; the Cit)':. Mratcgt" pl.m.
, O btam an undcro;tanding ol the cnttl) ' mtcrn.t l "ontmh \ I 0 '"II n:lcr to the 'it~ ' orguntz.tl wrl.ll
l.harh. bud .. •ct. "lllh:n poh-.re:. .111 J pru~ocJ ure . li n.m~otal a .. ~.:ounltn • 1 .ten~'> tu a i!.t ..., llh uur
unJ.:r:.tand rtf ol tntcrnal control \ I I> 1\11 tho rcrtom1 inquif). oh t.:r•al on 111 f)l:d ton. and \\ 111..-
thr~ u:;h' <1! l..e~ mtcmal .. ontrol 1 .. ur.: th.: le~ ~.ontroh ~re proper. ,,k t_!OcJ and tmpkm nt.:J
".: 1 "I "" I control c~ \.'1.:' if'ldud
R«:1 enuc (. ollc..tton Btlhng
Pr urcmen t Cash lJt'>bU ~I!m cnh
ln'e'tment ma nage me nt
IJr.:bt m.m,sgc:m t:n l
I manc tal rc:po rt mg
Year eml ·lo~in g
Budl!c.'ltng
Rt-.1.. lllJnagemcnt
II 1ma n Rt.::.;)Ur 1.' Pa) rtlll
II C ontro l . relating tu .til ,l')~l:h vi thc ,IUdll
l \t.:r ace'"
. .:~·u rit)
Uad. up and recu' Cl)
·) ~t r.:m intr.:rf.Jct.:'>
I raud l'n:1 cntton Program
(,rJnh 1\l an.tgc:ment
3 PrdsmmJf) J nal~ ti~·al rc1 It:". tktc:nnm.Jiton ul pn:luninJf) rn.Jl'rtJitt~ lo:1eb .
~ •\nJI) '' ol l..ml" mt tatc:mcnt . tl an)
'i Cun idcr.ll ton (I I rt\1.. of ma tenal lllh'IIJICIIlt.:lll .tt the tndll tdual JC ·ou nt n.tiJn ·.:. d..t'' nl trJn,<ll..ll011'> anJ
d 1 do urc: k1 cl.
6 .,.,l'~'>lllg the ri')b ol matc rialmt"!Jtemr.:ut a t both th e linath.ta l !>latem r.:nt and rdc,ant lh t:rtton lc,.:h.
7 c the n 1.. ol materi al n ncornp li ancc "ith Ia "., and rcgulatton tha t h.11 c •' dtrcct ond mall nal ·llr.:l.l
on the fin anci al tatcmcn ts .
8 Fvaluall on oi l he: C it)' tnlonnalton t c:chnolog~ and ~enera l mlunnatt on ll:c.hnolng) conttol,
"JX~...:...LI~'r~rll=.:T~cJIIU II uj th .: Q\t rail Audtl /'1(111
Once the planning a nd ri 1.. a r,:,.,rnt.:nt procc:.,, are ctlmplct.: an m emil audll plan ''ill · pre par ·d The plan
\\Ill ~df ) eJc.h audtl ta~l. -.tallin_ a !!Otnen t . tnnclm.:' .mJ Juc d.ltc I he plan ''til .tho brt.: t do11 n the
"or I.. a ... -.il nmc:nh ~l\\l.'Cn rnteril'l and final .usdit Iundin..:' 1 hc .tud it plar "ill induJc the Iran .td on
l) de' '' hn:h ha1 c: b~n ek~.ll:d hn mh:m.sl ~.ontwl te~tmc and th , ... lllr '' htc. h unl~ tic J~·t..s leJ "all..
through ''all b\.' pcrfunnt.:d
\\ c: ''til .tho prcp.~rc ·
1 hc prc ltmtnal) ma t c r ial it~ gutdclmc~. the a udit pro gram ,. mduding con.,idcra t tOn of:
IJcnlllic.tllun ul .trca "ht.:rc '>pcual .tud llc.om•Jc:r-Jitllll' .trc nc:c.c.,,.tr~
o.:~tgn lll further .tudi t proc.ed urc Ill r ·Juc.c ri-.1-tl ..:un,idcred ncc l' ~31}.
o I hc Jc:, dupmcnl ol C\pcdaltc.ln' l~'r an.tll lt1.JI ptl)~.cJun: . 11111cltnc . and a rgnmcnt ut Jll tUdit
n:,pon,thtltti .,
Page7 ofl 3
ATTACHMENT A
Section 5 -Audit Plan/Scope of Work
f\, O u r Propo cd A udit Plan . (Co ntinued )
Stm:t• -1 tiro! lntrnm A ud11
Our intcnm tield ,,orl-. date "ill nonnall occ ur during. th~ l.1r1.h-1\l a) t1mel rame. I he !~pcci lk '~ed.:. "ill
be determined dunn g the planni ng meetin g and preparat ion of the audit plan pro c .
\\ ~ ''ill obtain an undcr.tunding of the dc,ign <tn d impkm~ntution of th~o: fina nc1 al reponing -;~ qcm to
umkr!ltand th e lollo" o l informatio n tor
I . l:.tch d a ol tran !l ac tio n that~~ l!!lll li t:.m tto the tin.tn 1J I !l lah:ment !>.
, 1 he procedu re s "it hin both au toma ted and manu al \, ·tern . b) "hich tho~l· t ran~.1 c t i on!> arc initia ted .
aut ho rw.:d. re corded. pro C!l ~·d . and reported in th e ti nan ·ia l statement!>
J . I h ·re lated oceount ing record~. "h ·ther in clcet roniL or man ual c;up poning infumm t io n. an d spc ific
d{'Coun t in the financi a l tatc mcn t Ill\ oh cd m 111 ltl..ttmg. a uth ori11 n~. r ·cordi ng. pr{X:c: ~i n • lllld
rep on in g trnn oction
.t . llo" the mfo rmat ion ) tern!~ captures ev ent!> .mJ ~·o ndiuon!> other than cl.l!t!>e~ ot tr.tn!>Jl iiOil!> that
are 1gnificant to the finan ia l ~tate m enl\.
I he finan 1al repon ing pro cs u!>e d to prepare the II) s financial !>latement . tn ludm{! 'ig111ti ant
accountmg es timat e and d1 to urc ..
Sta ge 5. th~ Fmal .ltulu
\\ l' '~ill c:om mcn c o ur final fic:ld\\or~ a soon as Cit} of I em pie Cit} ha uffi c1e nt l) d o ed the1r a count in •
r\: o rd . \\ c C'\pcct final fi eldwork to tal..c pla ce du n ng cpte mber -Octobe r
During th i ph a'>~. \H.: "iII pc rfimn ub t.m t i' e :nrdit prlX:ed ure~ on the } car-end ta tcment o f m:t po'111 on and
fund ba lu n c . rc' enuc and e'\pend1turc c'\pcn c n count \ c will u C' n 'a net) o f audi t proc edure "hic h
ma) in ·ludc ou t ide con lirmat lllll\, .tati:-.11 ul \amp ling. anJ de t,nlcd tc lin g of chedulc~. an..t l) 11 ·al rc\ te".
inquny. and ob en all n Ounng th1 ph a c \\C "ill draft the financia l '>l ~llem cnh .
. \'tag. 6, tht• R.po rllll!! Jllul\•'
\tthc: c:nd o lthc audit pr<.K:C '''c ''Ill meet '''t h l..c ,t,tlt Ill \.Q \CI the l ollo"rn ~
• D1 cu 1m proq:mcnt lo r u~c:que n t ~ca r au d1 t plan .
• \1 eet with the udit Com mitte.: or ou nci lto pre en t the rcwlts ol'thc audit .
• Commun ic ate "ith thu c ch,rrgcd "1th go' crnam:c .
• \l.,'e "ill prepare [)raft udit Rc po rb "1th mana geme nt letter comnu:nt to m.magemcnt pnor to the:
agreed upon ~~ uancc da te.
• \\'e "ill prepJre Fin al Dmtl ud it Rcpo n ~ and mana gement lcttc1 eommc nb lor pn::.en tat ion to th e Cit)
pri or to the a g ree d upon 1 ua n c da te .
• ig nilica nt deli icn c 1c and materia l \\c:al..ne ~.: lll an~ J rdcn t itied dunng the l "O U r!IC or the audit
Pro fcs 10na l ~IUnd ard ~ requ ire: \Hillen c mmumc .111 n to ma nagement and tho c charged "tth
go,emance, o f signi fi cant dcticu.~n u: o r mutcnal \\C,I~nc ~c. ide nti fi ed Junng the .llldit.
• Ot h~:r mattc n. that \\e bdie \C to be of potential benefit to the ma nage ment ot the t 11 ~. !>U h a!l
recommen datton for opemllonal or .tdmint,tra th c c:lficicnc~. or lor impro' ing c '\istin g internal contro l
Page 8 o f 13
ATTACHMENT A
ection 5-Audit Plan / cope o f Wo rk
\. Our l'ropo~e d A ud it l'la n, (Co nt inued )
C o mm u n icat io n
We do not belle\ c in !.urp ri e~. Alth ough the reportm g ph~e in voh·cs a rc a p of the proce
con~tant communi a tio n re garding the eac h a!.pcct of the aud it throughout th e en tire procc <;~.
huvc an y urpri!>cs a t the c nu o f the auJ11 .
\\C "ill be in
You ''iII not
Ll . U e of Compute r A ss i ted Aud iti ng Tec hniq u e~ ~o ft \\ a r r in the E n gage m en t
c.
1111: kc } members ass igne d to the C 11 ~ · ~:ng a gcmcnt team ar c ex pc n.:nc.ed 111 ''o rking '' ith mun 1 1p.sl
ml urma ti on s~!>t cm uch U) un J.ird Ornc k . Peopk oft. 11-i\''1 . SA J>. ,rc.tt Pl,1in ... I-IJ I·'· an d 11'\RRI ~
Ut dlt)' IJilhn g ) t.:m~. I hcrelorc mullmJI .un uu nt o t Cit) lllnc \\O uld lx necc Jr) tutr.un our tea m m hu"
to mo:.t cl1 h.1cntl ) ac ·c ~ Cit )' tr.sn >.s..:tio lh Jnd Jm:urncnt-. lur tho: au dit .
I o a '"' m our a c<; mcnt ol the II em Iron men t under the CO'iO .md CC Btl trnm c"orl... the: cngagcmcnt
team Wi ll Ullh/c o ur I I peciah t: \1 . Jc.sn nc I uk cn . P.srtlll:r. C PA. Cl A. II r. C<.BIA. \Ill,\. r urthcr
in lo nnation on ~h Loken and her C\pc ric ncc b incl ud ·J m the rc umc s cc t io n o f the propo .. al
En g a gem e nt Timclin e
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Page 9 of 13
ATTACHMENT A
E XHIBIT B
C O MP ENSATI ON
Co t Propo al (A IIInclu ivc M a x in1um Price)
\\ e arc linnl) comm itt ed to pro..,iding the Ci t) of I cmplc Ci t) ( it) \\ ith th up.:rior lc\cl o f pro fcs. ional
.. en 1ce~ th .u the (.i t) ha s come to c tx<t:t I rum II'> Inde penden t Judllor-We \In' e to pro ' 1de e\<.eptmnJI t.tl l.
qua l it). anJ 'Jluc at thl' lo \\ c 1 p<>\\thk k.:'> llln\J\tcnt '' ith thee P'=c lati "' ol the II) Our mtc~ .1re
om JX tt tl\ c. '\C O "1th our de pt h ol '\pert ·r ~c .mJ \:umnut ment to quJIII)
II O\\C\Cr ''e do not ''Jnt lee ,tlunc to be.-an ob t.1dc m the(. '' clc<.tton ol \ JHillcl. I nne. IJ.I\ !. (o. 1.1 .1'.
\\ l' \\UUid tX' h.tpp) Ill JJ\CU \and Ol'gllt iatl.' 'Ul h lee 1\\UC'> JnJ rl'>p<lO tbtfll te\ \qth )llU
201~2016 2016-2017 201 7-20..!!._!018-20 19 2019-1020
<. 11~ u l I cmplc 11~ I R Audll
1 llk:luJc , '\' I •mil AFP) ~~~ ()0() ~11 .11()() I ~00 ~~II I
:! '-lm¥1c uJ11 Rcpl..lrl
I '"'UIIII. uno. lll.Jft•r JlW!:.fJill) I ll 1 (1()0 1.000
Ql01 EO IIOLRI.\ RATE
201~2016 2016-201 201 .. ·2018 20 18-2019 201 9 -2020
Pi.lnn~r :!:!11 ::::o :!::!'7 :!1> ::!.t u I
\ l .m.• ·~·r I 0 I u I 5 1111 1'17
',upcn 1 11r I II 1.11 I I II IM
'-lt:ll l\lr 1111 140 Ill 1411 I 53
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l'.ar.Jl'n•k"u ~ (1'\ (,'\ (1 7 hll 71
Pa ge 10 of 13
ATTACHMENT A
EXHIBIT C
INSURANCE
A. Insurance Requirements. Service Provider shall provide and ma intain
insurance , acceptable to the City, in full force and effect throughout the term of this
Agreement , against claims for injuries to persons or damages to property wh ich may arise
from or in connection with the performance of the Services by Service Provider , its agents ,
representatives or employees . Insu rance is to be placed with insurers with a current A.M .
Best's rating is an assigned policyholders ' Rating of A (or higher) and Financia l Size
Category Class VII (or larger).
Only the following "marked " requirements are applicable and Service Prov ider shall
provide the following scope and limits of insurance :
1. Minimum Scope of Insurance . Coverage shall be at least as broad
as :
x Commercial Gene ral Liability. Insuran ce Services Office form Commercial
General Liability coverage (Occurrence Form CG 0001 ).
x Automobile Liability. Service provider shall maintain automob ile insurance at least
as board as Insurance Services Office form CA 00 01 covering bod il y injury and
property damage for all activities of the Service Prov ider arising out of or in
connection with work to be performed under this Agreement, i nclud ing coverage
for any owned , hired , non-owned or rented veh i cles .
x Workers ' Compensation . Workers ' Compensation Insurance (Statutory Limits)
and Employer's Liability Insurance as required by the Labor Code of State of
California covering all persons provid ing Services on behalf of the Service Prov ider
and all risks to such persons under this Agreement.
x Professional (Errors and Omissions ) Liability. Profess ion al liab ility in surance
appropriate to the Service Provider's profession . Th is coverage may be written on
a "claims made" bas is, and must include coverage for contractual li ab il ity. The
insurance must be maintained for at least three (3) consecutive years fo llowi ng the
complet ion of Serv ice Provider's services or the te rm i nation of th is Agreement.
During this additional three (3) year period , Serv ice Provider shall annua ll y and
upon request of the C ity submit written evidence of th is continuous coverage .
Service Provider shall maintain professional liability insurance that covers the
Services to be performed in connection with this Agreement. Any pol icy i nception
date , co ntinuity date , or retroactive date must be before the effective date of th is
agreement and Serv ice Provider agrees to maintain continuous coverage through
a period of no less than three years after completion of the services requ i red by
th is agreement.
Page II of 13
ATTACHMENT A
1. Minimum Limits of Insurance . Service Provider shall maintain limits
of insurance no less than :
(1) Commercial General Liability . $1 ,000 ,000 per occurrence ,
$2 ,000 ,000 general aggregate for bodily injury, personal injury and property damage.
(2) Automobile Liability . No less than $1 ,000 ,000 combined
single limit for each accident.
(3) Workers' Compensation . Workers ' Compensation as required
by the Labor Code of the State of California of not less than $1 ,000 ,000 per occurrence
and Emp loyer's Liability Insurance with limits of at least $1 ,000 ,000 .
(4) Professional Liability . $1 ,000 ,000 per claim and in the
aggregate .
B. Other Prov isions . Insurance policies required by th is Agreement shall
contain the following provisions :
1. All Pol ic ies . Each insurance policy required by this Agreement shall
be endorsed and state the coverage shall not be suspended , voided, cancelled by the
in surer or either Party to this Agreement, reduced in coverage or in limits except after 30
days' prior written notice by certified mail , return receipt requested , has been given to
City.
2 . Commercial General Liability and Automob ile Liability Coverages .
(1) City , and its respective elected and appo inted officers,
officials , and employees and volunteers are to be covered as additional insureds as
respects : liability arising out of activities Service Provider performs ; products and
completed operations of Service Provider; premises owned, occupied or used by Service
Prov ider ; or automobiles owned , leased , hired or borrowed by Service Provider. The
coverage shall contain no special limitations on the scope of protection affo rded to City ,
and their respective elected and appointed officers , officials , or employees .
(2) Serv ice Provi der's insurance sha ll apply separately to each
ins ured against whom claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
(3) Requirements of specific coverage features or limits
contained in this Section are not intended as a l imitation on coverage , limits or other
requirements , or a waiver of any coverage normally provided by any insurance . Specific
reference to a given coverage feature is for purposes of clarification only as it pertains to
a given issue and is not intended by any party or in sured to be all inclusive , or to the
exclusion of other coverage , or a waiver of any type . If the Vendor mainta ins higher limits
than the minimums shown above , the Agency requires and shall be entitled to coverage
for the higher limits ma intained by the Vendor. Any avai lab le insurance proceeds in
Page 12 of 13
ATTACHMENT A
excess of the specified minimum li mits of insurance and coverage shall be available to
the Agency.
(4) Coverage provided by the CONTRACTOR shall be primary
and any insurance or self-i nsurance or maintained by Agency shall not be requi red to
contribute to it. The limits of insurance required herein may be satisfie d by a combination
of primary and umbrella or excess insurance . Any umbre ll a or excess ins urance shall
contain or be endorsed to contain a provision that such coverage shall also apply on a
primary and non -contributory basis for the benefit of Agency before the Agency's own
insurance or self-insurance shall be called upon to protect is as a named in sured .
(5) Any f a il ure to comply w ith the report in g or other provisions of
the insurance policies , including breaches of warranties , shall not affect coverage
provided to City , and its respective elected and appointed officers , officials , employees or
volunteers .
3. Workers ' Compensation Coverage . Un less the City Manager
otherwise agrees in writing , the i nsurer shall agree to wa ive all rights of subrogation
against City , and its respect ive elected and appointed officers , officials , employees and
agents for losses arising from work performed by Service Provider.
C . Other Requirements . Service Provider agrees to deposit with City , at or
before the effective date of this Agreement, certificates of insurance necessary to satisfy
City that the insurance prov isions of this contract have been complied with . The City may
require that Service Provider furnish City with copies of origin al endorsements effecting
coverage required by this Exhibit "C". The certificates and endorsements are to be s igned
by a person authorized by that i nsurer to bind coverage on its behalf. City reserves the
right to inspect complete , certified copies of all req uired insurance policies , at any time .
1. Service Provider shall furnish certificates and endorsements from
each subcontractor identical to those Service Provider provides .
2 . Any deductibles or self-insured retentions must be declared to and
approved by City . At the option of City, either the insurer shal l reduce or eliminate such
deductibles or self-insured retentions as respects City or its respect ive elected or
appointed officers , officials , employees and volunteers or the Service Provider shall
procure a bond guarantee in g payment of losses and related investigations , claim
administration , defense expenses and claims .
3 . The procuring of such required policy or policies of insurance shall
not be construed to limit Service Provid er's lia bility hereunder nor to fu lfill the
indemnification provisions and requirements of this Agreement.
Page 13 of 13