For City Council Meeting November 12, 2024
TO: Honorable Mayor and City Council
FROM: G. Michael Milhiser, Interim City Manager
AUTHOR: Mark Alvarado, Interim Finance Director
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Request City Council to Approve the Professional Services Agreement, Amendment #2, between the City and Eide Bailly, LLP, for Financial Services, for a maximum amount not to exceed $75,000.
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RECOMMENDATION
Staff recommends that the City Council the City Council Approve Professional Services Agreement, Amendment #2, (Exhibit A) by and between the City of Rialto and Eide Bailley, LLP, to provide financial services for an amount not to exceed $75,000, increasing the total contract to a not to exceed amount of $175,000.
BACKGROUND
In February 2024, the City approved a contract with Eide Bailly to provide accounting services to support the implementation of the new Enterprise Financial System, specifically the firm was brought on to correct errors in the new payroll system and assisted in correcting 2023 employee W-2 information, all federal and state reporting information, and providing support for 2024 payroll data on an ongoing basis.
At this point in time, additional support is needed to continue to provide support for the 2024 calendar year payroll information that is being generated for employees, as well as the payroll data that is being generated and sent to CalPERS. In addition, Eide Bailley provides financial services related to general ledger support. This general ledger support will assist the Finance Department in closing the books for the 2023-24 fiscal year, which will enable the City to complete the year-end audit in a timely manner.
ANALYSIS/DISCUSSION
The implementation of the new financial software system in the summer of 2023 brought many challenges with it. The resources necessary for a 100% successful implementation were not in place during the implementation phase (i.e., training, testing), and the months right after the software went “live”. Eide Bailley has already been providing resources specific to payroll issues that have surfaced over the last year. In addition, staff within the Finance Department have had to devote more time to learning and troubleshooting the new software system. The additional support from Eide Bailley will provide expertise in payroll reporting from professionals who specialize in government payroll and CalPERS reporting. An addition, Eide Bailley has CPA’s on staff who can assist the Finance Department with general ledger accounting to help close the 2023-24 fiscal year.
If approved, this proposed Amendment #2, which is a $75,000 increase to the Professional Services Agreement between the City and Eide Bailley, LLP, will bring the contract total to $175,000.
ENVIRONMENTAL IMPACT
The request is not a Project as defined by Section 15378 of the California Environmental Quality Act (CEQA). 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. By definition, a Project does not include: The creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment according to Section 15378 (b)(4) of CEQA.
GENERAL PLAN CONSISTENCY
Complies with the following Rialto General Plan Guiding Principle:
Our 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's Office has reviewed the staff report.
FINANCIAL IMPACT
Operating Budget Impact
Funds from the Finance Department, in the amount of $75,000, are available to pay for this additional cost. The available funds are due to salary savings of vacant positions within the department.
Capital Improvement Budget Impact
There is no impact on the Capital Improvement Budget.
Licensing
Eide Bailley has a current business license with the city.