HomeMy Public PortalAbout06_7E_Eide Bailly_Staff Report -Seventh Amendment to Agreement with Eide BaillyADMINISTRATIVE SERVICES DEPARTMENT
MEMORANDUM
DATE: April 20, 2021
TO: City Council
FROM: Bryan Cook, City Manager
By: Susan Paragas, Administrative Services Director
SUBJECT: APPROVAL OF SEVENTH AMENDMENT TO THE AGREEMENT WITH
EIDE BAILLY, LLP FOR PROFESSIONAL AUDIT SERVICES
RECOMMENDATION:
The City Council is requested to authorize a seventh amendment to the agreement for
professional audit services with Eide Bailly, LLP, extending their independent audit
services for Fiscal Year (FY) 2020-2021 (see Attachment “A”).
BACKGROUND:
1.On January 6, 2016, the City requested proposals from qualified Certified Public
Accounting (CPA) firms for a three-year contract to audit its financial statements
beginning with the fiscal year ended June 30, 2016, with the option to renew the
contract for an additional two fiscal years, for a total of 5 years.
2.On April 5, 2016, the City Council authorized the City Manager to enter into an
agreement for professional audit services (“Agreement”) with Vavrinek, Trine, Day &
Company, LLP (VTD) for FY 2015-2016.
3.On April 4, 2017, the City Council authorized the City Manager to enter into a first
amendment to the Agreement for professional audit services with VTD for FY 2016-
2017.
4.On April 17, 2018, the City Council authorized the City Manager to enter into a second
amendment to the Agreement for professional audit services with VTD for FY 2017-
2018.
5.On January 2, 2019, the City Council authorized the City Manager to enter into a third
amendment to the Agreement for professional audit services with VTD for the FY
2017-2018 GASB 75 accounting entries and related note disclosures.
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
AGENDA
ITEM 7.E.
City Council
April 20, 2021
Page 2 of 4
preparation and submission of the FY 2017-2018 State Controller’s Office Cities
Financial Transactions Report.
7. On May 7, 2019, the City Council authorized the City Manager to enter into a fifth
amendment to the Agreement for professional audit services with VTD for FY 2018-
2019. This is the first of two one-year extensions.
8. On May 17, 2019, VTD joined Eide Bailly, thus, was renamed Eide Bailly.
9. On March 4, 2020, the City Council authorized the City Manager to enter into a sixth
amendment to the Agreement for professional audit services with Eide Bailly for FY
2019-2020. This is the second of two one-year extensions.
10. On March 13, 2020, the City Council adopted Resolution No. 20-5457, declaring a
local state of emergency which gave authority to the City Manager in his role as
Director of Emergency Services to implement measures in line with state and county
health officials’ recommendations to slow the spread of COVID-19 while not impacting
critical services.
11. On March 18, 2020, in an abundance of caution for the health and safety of City staff
and patrons, the City indefinitely closed City buildings to the public and modified
services. On the same day, the United States Senate passed the Families First
Coronavirus Response Act (Act) with President Trump signing the bill into law shortly
thereafter.
12. On March 19, 2020, to mitigate the spread of COVID-19, state and county officials
ordered residents to stay home or at their place of residence. On the same day, with
the authorization granted by the declaration of local emergency, the City Manager
ordered some staff to work from home, though essential office workers are to come to
the office if needed and if sufficient distancing is maintainable, and essential field staff
are to practice all safety and social distancing related to such work in the field.
13. On July 20, 2020, City Hall was opened for appointment only to the public subject to
health protocols and measures. Adhering to strict health and safety guidelines,
measured occupancy levels, staff report at City Hall on a staggered schedule. Field
staff report to City and Park Maintenance yards and adhere to strict health and safety
guidelines.
14. Effective on November 25, 2020 to December 20, 2020, the County of Los Angeles
Health Officer issued a revised temporary Safer at Home order that includes that all
persons who can telework or work from home should continue to do so as much as
possible. Thus, the City returned to its March 19, 2020 operating status but included
limited hours for essential field employees.
15. On December 19, 2020 to December 27, 2020, the County of Los Angeles Health
Officer issued a revised temporary targeted Safer at Home order that includes that all
persons who can telework or work from home should continue to do so as much as
City Council
April 20, 2021
Page 3 of 4
possible.
16. On March 19, 2021, the Audit Standing Committee approved a one-year auditing
services agreement extension with Eide Bailly for the FY ending on June 30, 2021.
ANALYSIS:
FY ending on June 30, 2020 was the last audit year on Eide Bailly’s audit services
agreement. A request for proposal (RFP) was planned to be issued with the audit of the
FY ending on June 30, 2021. If a new firm was selected as a result of the RFP, it would
mean that City employees will need to work closely with the new auditors on site as certain
City sensitive files and information will need to be accessed.
Currently, the City of Temple City employees continue to telework due to the COVID-19
surge in Los Angeles County deaths and positive cases that began in November 2020.
Entry to City facilities are limited and carefully monitored. The City continues its efforts to
keep City staff and patrons safe and healthy.
Therefore, due to the City’s continued mitigation of the spread of COVID-19 and because
Eide Bailly’s auditing services have been satisfactory, it is proposed that a one-year
extension be approved to audit City financials for the FY ending on June 30, 2021. The
estimated cost is an increase of a 2% CPI which is a total not to exceed $65,400. Because
Eide Bailly has all of the necessary City files and information acquired on their first year
of auditing City financials, their auditors will not be required to be on site which is what
occurred for the audit of FY ending on June 30, 2020.
Once the pandemic has been controlled and the City can safely operate normally, a
request for proposal for auditing services will be issued, possibly, for the FY ending on
June 30, 2022 in the Winter/Spring of 2022.
CONCLUSION:
As a result of the continued mitigation by the City due to the pandemic and Eide Bailly’s
satisfactory auditing services, it is recommended that the City Council authorize the City
Manager to enter into a seventh amendment, a one-year auditing services agreement
extension, with Eide Bailly, LLP for the FY ending on June 30, 2021.
FISCAL IMPACT :
There is no fiscal impact with this action for the current FY 2020-2021. The amount of
$65,400 will be proposed during the FY 2021-2022 budget process.
City Council
April 20, 2021
Page 4 of 4
ATTACHMENT:
A. Seventh Amendment to Agreement with Eide Bailly, LLP
Page 1 of 7
SEVENTH AMENDMENT TO AGREEMENT FOR SERVICES
by and between
the
CITY OF TEMPLE CITY
and
EIDE BAILLY, LLP
(formerly VAVRINEK, TRINE, DAY & COMPANY, LLP)
Dated April 16, 2021
ATTACHMENT A
Page 2 of 7
SEVENTH AMENDMENT TO AGREEMENT FOR SERVICES
This Seventh Amendment to the Agreement for Services (“Seventh Amendment”), which
is dated for reference as indicated on the cover page, is hereby entered into by and between the
CITY OF TEMPLE CITY, a California charter city (“City”), and Eide Bailly, LLP (formerly
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 audit its financial statements beginning
with the fiscal year ending June 30, 2016, with the option to renew the contract for an
additional two fiscal years, for a total of 5 years.
B. On April 5, 2016, the City Council authorized the City 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 the Agreement for professional audit services with VTD for the FY 2016-
17.
D. On April 17, 2018, the City Council authorized the City Manager to enter into a second
amendment to the Agreement for professional audit services with VTD for the FY 2017-
18.
E. On January 2, 2019, the City Council authorized the City Manager to enter into a third
amendment to the Agreement for professional audit services (“Third Amendment”) with
VTD to include the preparation of the required GASB 75, Accounting and Financial
Reporting for Postemployment Benefits other than Pensions, accounting entries and
disclosures for the FY ended June 30, 2018.
F. 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 Cities Financial Transactions
Report.
G. On May 7, 2019, the City Council authorized the City Manager to enter into a fifth
amendment to the Agreement (“Fifth Amendment”) for professional audit services with
VTD for the FY 2018-19 City financial statements.
H. On March 3, 2020, the City Council authorized the City Manager to enter into a sixth
amendment to the Agreement (“Sixth Amendment”) for professional audit services with
Service Provider for the FY 2019-20 City financial statements.
Page 3 of 7
I. On April 16, 2021, the City Council authorized the City Manager to enter into a seventh
amendment to the Agreement (“Seventh Amendment”) for professional audit services with
Service Provider for the FY 2020-21 City financial statements.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the promises made and recited herein, the
parties do hereby enter into this Seventh Amendment, which modifies and amends the Agreement
as follows:
1. AMENDMENT. The Agreement is hereby modified and amended as follows:
1.1 Section 1. Section 1 is hereby modified and amended as follows:
Subject to the provisions of Section 20 “Termination of
Agreement” of this Agreement, the Term of this Agreement is for
12 months commencing on the date when the Seventh Amendment
is properly executed by the appropriate authorities of the City and
Service Provider.
1.2 Section 2 of the Agreement is hereby amended as follows:
The Service Provider will prepare the California State Controller’s
Office (SCO) Cities Financial Transactions Report to be submitted
to the SCO by the deadline stated in the SCO’s letter for the FY
2020-2021 financial data.
1.3 Section 4 of the Agreement is hereby amended as follows: The
third sentence of Section 4, subparagraph (a) of the Agreement is
amended to read as follows:
The total all-inclusive maximum fee for the FY 2020-21 audit shall
be a not-to-exceed of: Sixty-Five Thousand Four Hundred Dollars
($65,400). Amount not to change unless additional compensation is
approved in writing by the City Council or City Manager.
2. GENERAL PROVISIONS.
2.1 Remainder Unchanged. Except specifically modified and amended in
this Seventh Amendment and previous amendments, First, Second, Third, Fourth, Fifth and
Sixth Agreements remain in full force and effect and binding upon the parties.
2.2 Integration. This Seventh Amendment consists of pages 1 to page 7
inclusive, which constitute the entire understanding and agreement of the parties and
Page 4 of 7
supersedes all negotiations or previous agreements between the parties with respect to all or
any part of the transaction discussed in this Seventh Amendment.
2.3 Effective Date. This Seventh Amendment is effective on the date it
was formally approved by the City Council and executed by the appropriate authorities of
the City and Service Provider.
2.4 Applicable Law. The laws of the State of California shall govern the
interpretation and enforcement of this Seventh Amendment.
2.5 References. All references to the Agreement include all their
respective terms and provisions. All defined terms utilized in this Seventh Amendment have the
same meaning as provided in the Agreement, unless expressly stated to the contrary in this Seventh
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Seventh Amendment
to the Agreement on the date and year first written above.
CITY:
THE CITY OF TEMPLE CITY
By: __________________________________
Bryan Cook, City Manager
ATTEST:
________________________________
Peggy Kuo, City Clerk
APPROVED AS TO FORM
________________________________
Gregory M. Murphy, City Attorney
Page 5 of 7
SERVICE PROVIDER:
Eide Bailly, LLP
By: _______________________________
Name: _________________________
Title: __________________________
By: _______________________________
Name: _________________________
Title: __________________________
Page 6 of 7
NOTE: SERVICE PROVIDER’S SIGNATURES SHALL 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 ____________________, 21__, before me, , Date Name and Title of Officer (e.g. “Jane 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(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though this section is optional, completing this information can deter alternation of the document or fraudulent
reattachment of this form to an unintended document.
CAPACIT(IES) CLAIMED BY SIGNER(S) DESCRIPTION OF ATTACHED DOCUMENT
Signer's Name:
¨ Individual ¨ Corporate Officer
Title(s) Title or Type of Document
¨ Partner(s) ¨ Limited
¨ General
¨ Attorney-In-Fact Number of Pages
¨ Trustee(s)
¨ Guardian/Conservator
¨ Other:
Signer is representing:
Name of Person(s) or Entity(ies)
Date of Document
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity
of that document.
Page 7 of 7
NOTE: SERVICE PROVIDER’S SIGNATURES SHALL 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 ____________________, 21__, before me, , Date Name and Title of Officer (e.g. “Jane 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(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf
of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though this section is optional, completing this information can deter alternation of the document or fraudulent
reattachment of this form to an unintended document.
CAPACIT(IES) CLAIMED BY SIGNER(S) DESCRIPTION OF ATTACHED DOCUMENT
Signer's Name:
¨ Individual ¨ Corporate Officer
Title(s) Title or Type of Document
¨ Partner(s) ¨ Limited
¨ General
¨ Attorney-In-Fact Number of Pages
¨ Trustee(s)
¨ Guardian/Conservator
¨ Other:
Signer is representing:
Name of Person(s) or Entity(ies)
Date of Document
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity
of that document.