For City Council Meeting [February 12, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Sean Grayson, Interim City Administrator
FROM: Jessica Brown, Finance Director
Title
Request City Council to Authorize a Purchase Order Change Notice (2019-1059) with Robert Half International, Office Team in the amount of $98,000 to Provide Audit Accounting Services in the Finance Department for Fiscal Year 2018-19, increasing the Purchase Order to a total of $130,000, for a total aggregate amount of $193,412 and Approve Budget Resolution No. 7469.
(ACTION)
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BACKGROUND:
Beginning in fiscal year 2017-18 and into 2018-19, the Finance Department (Department) has experienced significant staff turnover. This combined with a decrease of four positions over the last five years has resulted in key financial tasks not being completed thus impacting the 2017-18 yearend close and financial audit.
As a result, in July 2018, the Department procured temporary staff support services for the Payroll Division from Robert Half International, Accountemps, in the amount of $14,412.02 (Purchase Order 2019-0649) to assist with payroll processes due to a vacant Payroll Analyst position. In October 2018, the Department procured temporary audit accounting services from Robert Half International, Office Team in the amount of $15,000 (Purchase Order 2019-1059) to assist with the completion of financial tasks in support of the 2017-18 year end close and financial audit. On January 8, 2019, the Council approved a $17,000 purchase order change notice increasing Purchase Order 2019-1059 to a total of $32,000 to continue temporary audit accounting services through February 2019 -- the estimated completion of the audit. On January 22, 2019, the Council approved a second purchase order change notice in the amount of $49,000 increasing Purchase Order 2019-1059 to a total of $81,000 for accounting services due to the vacancy of the Department’s only Accountant position. The aggregate total for both purchase orders is $95,412.
All approved purchase orders currently executed with Robert Half International are listed below:
ANALYSIS/DISCUSSION:
Due to unforeseen circumstances regarding the timely completion of the 2017-18 audit requiring additional staff resources, the Department requests a third purchase order change notice with Robert Half International, Office Team in the amount of $98,000. The change notice is requested to continue temporary audit accounting services and accounting staff support through June 2019 to complete the 2017-18 yearend close and financial audit as well as fiscal year 2018-19 routine financial tasks to ensure the City’s financial records are up-to-date and accurate. The City will terminate these services at 2018-19 fiscal yearend.
In addition to these services, the Department requests temporary budget analyst services from Robert Half International, Office Team. The Department will be engaging in the 2019-20 budget cycle and due to dedication of staff resources to the 2017-18 yearend close and financial audit as well as fiscal year 2018-19 routine financial tasks, the Department will require temporary budget analyst services to provide needed Department budget analysis support.
The requested Purchase Order Change Notice of $98,000 includes $35,000 to extend the temporary audit accounting services and accounting staff support through fiscal year 2018-19, and $63,000 to acquire temporary budget analyst services through the budget process. After the change notice is processed, the total for Purchase Order 2019-0159 will be $130,000.
ENVIRONMENTAL IMPACT:
Pursuant to Section 15378 of the California Environmental Quality Act, the proposed request is not a project. 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. A project does not include the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment or 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
The total cost associated with the approval of this item for the Purchase Order Change Notice for Purchase Order 2019-0159 is $98,000 for a total amount of $130,000. This Purchase Order Change Notice brings the total authorization for Robert Half International to $193,412 for fiscal year 2018-19. Temporary staff from Robert Half International is charged at $48.79 per hour for an Audit Accountant and Accountant and $75.39 for a Budget Analyst. An appropriation of General Fund reserves is necessary in account number 010-500-2151-2011 in the amount of $98,000. Resolution 5169 set General Fund reserves at a minimum level of 50% of the operating budget. The appropriation further lowers General Fund reserves to 35% from 36% defined during the FY 2018-19 budget process.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Prior to execution of the Professional Service Agreement/Purchase Order/Construction Contract, the vendor shall submit a business license application and pay a Business License tax at the rate of $212.00, as well as Administration and State fees.
RECOMMENDATION:
Staff recommends that the City Council Authorize a Purchase Order Change Notice (2019-1059) with Robert Half International, Office Team in the amount of 98,000 to provide temporary audit accounting services in the Finance Department through February 2019, increasing the total Purchase Order to $130,000, for a total aggregate amount of $193,412 and Approve the Budget Resolution.