For City Council Meeting [November 13, 2018]
TO: Honorable Mayor and City Council
APPROVAL: Ahmad R. Ansari, Interim City Administrator
FROM: Lucy M. Garcia, Director of Human Resources & Risk Management
Title
Request City Council to Approve an increase to Purchase Order No. 2019-0861 with the Law Office of Kathy M. Gandara in the amount of $17,655.92 for a total of $22,655.92 in the current fiscal year for personnel investigative services.
(ACTION)
Body
BACKGROUND:
On September 26, 2017, an Attorney-Client Agreement was entered into and signed between the City of Rialto and the Law Office of Kathy M. Gandara to provide independent personnel investigative services related to employee grievances. On June 12, 2018, the City Council approved an increase to Purchase Order No. 2018-0725 to cover investigation costs incurred to a total not to exceed $74,500.
ANALYSIS/DISCUSSION:
Due to the nature of the most current investigation, increases in time and expenses were incurred because of additional interviews needed and subsequent costs (preparation for interviews, summaries, travel expenses) to complete the City’s most recent investigative report. On August 14, 2018, staff requested an amendment to Purchase Order No. 2018-0725 by $22,000 (for a total of $96,500) to enable final payments to the investigator for services rendered as agreed within scope per the Director of Human Services and Risk Management under the Attorney-Client Agreement. Under the City’s Administrative Policies and pursuant to Section 2.04.170 of the Municipal Code, it is the duty of the City to investigate complaints. The Council did not approve the $22,000 amendment request pending additional information regarding the extent of the investigative services, including the final invoices.
The original estimate of $96,500 in investigative costs was meant to encompass four personnel-related investigations throughout the fiscal year. In reality, because the last invoices must apply to the new fiscal year, the increase to Purchase Order 2018-0725 is no longer necessary. Rather, Purchase Order 2019-0861 was created and would need to be amended by $18,057.35 to pay the final outstanding invoice.
The total actual expenditures and purchase orders between the two fiscal years can be represented as follows:
|
Purchase Order |
PO Limit |
Paid |
PO Balance |
|
2018-0725 |
$74,500 |
$70,043.20 |
$4,456.80 |
|
2019-0861 |
$5,000 |
$4,155.92 |
$844.08 |
|
TOTAL |
$79,500 |
$74,199.12 |
5,300.88 |
|
Outstanding Invoice |
Amount |
Balance Available from PO 2019-0861 |
PO Amendment Needed |
|
323 |
$18,901.43 less $401.43= $18,500 |
$844.08 |
$17,655.92 |
The most recent investigation represents a total cost of $63,144.21 (with invoice no. 323 included). The investigative report, including the exhibits and transcripts subject to this final investigation, was received on Monday, August 6, 2018; hence, no additional costs from the investigator will result.
Staff recommends increasing Purchase Order No. 2018-0725 by $17,655.92 (approximately $4,344.08 less from the previous purchase order amendment request) for a total paid not to exceed $22,655.92 in the 2018-19 fiscal year. With the two fiscal years combined, the total paid to Ms. Gandara will be $92,699.12.
It should be noted that one of the four cases handled by Ms. Gandara shall receive a reimbursement from the City’s previous insurance authority-Employment Risk Management Authority-- in the amount of $9,204.82, which represents the amount above the City’s self-insurance retention limit for one specific case. As a as result of the reimbursement, the total financial impact to the City from Ms. Gandara’s services is $83,494.30.
ENVIRONMENTAL IMPACT:
Not a “Project” as defined in the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney has reviewed and approved this staff report.
FINANCIAL IMPACT:
Operating Budget Impact
Funding in the amount of $17,655.92 is budgeted and available in the General Liability Fund, Account No. 730-500-2148-2010.
Capital Improvement Budget Impact
There is no capital improvement budget impact.
Licensing
Completion of a Business License Renewal Application and payment for the Business License Tax, Administrative Fee and State Fee at the Professional Service rate in the amount of $264.90. The Business License fee has been paid.
RECOMMENDATION:
Staff recommends that the City Council approve an increase to Purchase Order No. 2019-0861 with the Law Office of Kathy M. Gandara in the amount of $17,655.92 for a total of $22,655.92 in the current fiscal year for personnel investigative services.