110111 lakeport city council - consent agenda

8/3/2019 110111 Lakeport City Council - Consent Agenda

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MINUTESLAKEPORT CITY COUNCIL AND

LAKEPORT REDEVELOPMENT AGENCY

REGULAR MEETINGSeptember 20, 2011

I. WORKSHOP: Mayor/Chairperson Lyons opened the workshop at 5:00 p.m.

Redevelopment Director Knoll gave an overview of the Phase 2 of the

Downtown Improvement Project. The following members of the public

spoke: George Spurr, Carol Hayes, and Nancy Ruzicka. A motion was mad

by Council/Agency Member Engstrom, seconded by Council/Agency Mem

Mattina, and carried, with Council/Agency Members Parmentier and Rum

absent and Mayor Lyons voting no, that the project include concentrating

Main Street, doing the widened sidewalks, putting in trees with grates,

moving the street lights out, doing the patterned intersections and

crosswalks, and doing the street reconstruction.

II. CALL TO ORDER:

ROLL CALL:

Mayor/Chairperson Lyons called the regular meeting of the City Council of

the City of Lakeport and Lakeport Redevelopment Agency to order at

6:04 p.m. with Council/Agency Members Stacey Mattina, and Tom Engstro

present. Council/Agency Members Roy Parmentier and Robert Rumfelt

were absent.

III. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by George Spurr.

IV. ACCEPTANCE OF AGENDA: A motion was made by Council/Agency Member Engstrom, seconded by

Council/Agency Member Mattina, and carried by voice vote, with Council

Members Parmentier and Rumfelt absent, to accept the agenda as

presented.V. CONSENT AGENDA:

A. Ordinances Waive reading except by title, of any ordinances under consideration at th

meeting for either introduction or passage per Government Code 36934.

B. Warrants Approve warrants as listed on Warrant Register dated September 20, 201

C. Minutes Approve minutes of the regular City Council meeting of August 16, 2011, a

the special meeting of August 30, 2011.

D. Building Permit Report Receive and file Building Permit Report for August, 2011.

E. Application 2011-18 Approve Application No. 2011-18 from Lakeport Elementary School for th

annual Halloween Parade to be held October 28, 2011, from 12:30

1:15 p.m.

Vote on Consent Agenda A motion was made by Council/Agency Member Mattina, seconded by

Council/Agency Member Engstrom, and carried by voice vote, with

Council/Agency Members Parmentier and Rumfelt absent, to approve the

Consent Agenda as posted.

VI. PUBLIC PRESENTATIONS/ REQUESTS:

A. Citizen Input Wilda Shock addressed the Council. She would like to give an update on t

Lake Center of Mendocino College at our next meeting.

B. Thank you Presentations Police Chief Rasmussen thanked the Nice Amateur Radio Club and the Lak

County Amateur Radio Club for their assistance with the Lake County Fair

this year and provided certificates to each club.

C. Lake County TV-8 Joyce Overton, the Mayor of the City of Clearlake and PEG Board Member

gave a presentation regarding the Lake County Television 8 PEG channel.

Joel Moore, the head of market for TV 8 also addressed the Council. Ther

was Council consensus to direct staff to bring back a resolution to support

1 percent pass-through to be paid by cable TV users to support the channe


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Minutes of the Lakeport City Council and Redevelopment Agency Meeting of 09/20/2011 Page

D. KPFZ Radio George Spurr and Steve Elias addressed the Council regarding KPFZ radio

request to hook up equipment to broadcast some of our City Council

meetings. This item will be brought back for discussion at a future meetin

VII. PUBLIC HEARING:

A. Voluntary Alternative

Redevelopment Project Ordinance

A motion was made by Council/Agency Member Mattina, seconded by

Council/Agency Member Engstrom, and carried, with Council/Agency

Members Parmentier and Rumfelt absent, to continue the public hearing

regarding proposed Ordinance determining that the Agency will comply w

the Voluntary Alternative Redevelopment Project pursuant to Part 1.9 ofDivision 24 of the Health and Safety Code, as provided in AB1X27 to the fi

meeting in December 6, 2011, at 6:00 p.m.

VIII. LAKEPORT REDEVELOPMENT AGENCY BUSINESS:

A. Resolutions Authorizing the

Execution of a Conditional

Community Remittance Funding

Agreement

A motion was made by Council/Agency Member Engstrom, seconded by

Council/Agency Member Mattina, and carried, with Council/Agency

Members Parmentier and Rumfelt absent, to adopt resolutions authorizin

the execution of a Conditional Community Remittance Funding Agreemen

IX. COUNCIL BUSINESS:

A. City Engineer:

1. Ordinance EstablishingSpeed Limits Per Speed Zone

Survey

A motion was made by Council/Agency Member Mattina, seconded byCouncil/Agency Member Engstrom, and carried, with Council/Agency

Members Parmentier and Rumfelt absent, to introduce an ordinance

establishing speed limits and set a public hearing to consider adoption

thereof for the October 18, 2011, City Council Meeting.

2. Parking Around City Hall A motion was made by Council/Agency Member Mattina, seconded by


Members Parmentier and Rumfelt absent, to adopt the proposed Resolut

designating Two-Hour Parking Zones in the City of Lakeport.

B. Community Development Director:

1. Contract with CDS A motion was made by Council/Agency Member Engstrom, seconded by

Council/Agency Member Mattina, and carried, with Council/AgencyMembers Parmentier and Rumfelt absent, to approve Community

Development Services for the City Business Loan Program delivery and

general administration of the City Business Loan Program under HCD Gran

09-EDEF-6531 and authorize the City Manager to execute the Consultant

Agreement.

2. Abandoned Vehicle

Abatement Services Authority



Members Parmentier and Rumfelt absent, to approve a Resolution which

will allow the Citys continued participation in the Lake County Abandoned

Vehicle Abatement Service Authority.

C. City Clerk:

1. Delegate VotingLeague of

California Cities Conference



Members Parmentier and Rumfelt absent, to approve direction to the vot

delegate to support all of the resolutions, with the exception of Resolutio

No. 5.


Mayor/Chair Lyons, and carried, with Council/Agency Members Parmentie

and Rumfelt absent and Council/Agency Member Engstrom voting no, to

approve direction to the voting delegate to support Resolution No. 5.


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Minutes of the Lakeport City Council and Redevelopment Agency Meeting of 09/20/2011 Page

X. CITY COUNCIL COMMUNICATIONS:

A. Miscellaneous Reports: The City of Lakeport, in conjunction with Mendo-Mill will be coordinating

Disaster Fair to be held October 15.

City Attorney Brookes reported that the towing of the motorhome on the

Witt property is a continuing saga on which he has been working.

City Manager Silveira reported that October 7 will be Employee Appreciat

Day. There will be a lunch at the Yacht Club. Council indicated that they

would be willing to serve the lunch.Council Member Mattina reported that the Police Department put on an

Emergency Plan seminar. The APC has dedicated the funds for the projec

on South Main Street.

Council Member Mattina suggested that we try to decorate some our emp

store fronts for the holidays.

Council Member Engstrom will be gone for three weeks and will miss both

October meetings.

Mayor Lyons reported that the Invasive Species Council did not meet

Monday. CLAS will meet Friday at 9:00 p.m.

XI. CLOSED SESSION: The meeting was adjourned to a closed session at 7:17 p.m. pursuant toGovernment Code 54956.9(b), anticipated litigation (one case).

XII. REPORT FROM CLOSED SESSION: The meeting reconvened to open session at 7:40 p.m. The Mayor reporte

that staff was given direction.

XIII. ADJOURNMENT: Mayor Lyons adjourned the meeting at 7:41 p.m.

ATTEST APPROVED

____________________________________ __________________________

JANEL M. CHAPMAN, City Clerk SUZANNE LYONS, Mayor


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I. CALL TO ORDER & ROLL CALL: Mayor/Chairperson Lyons called the regular meeting of the City Council of the City

Lakeport and Lakeport Redevelopment Agency to order at 6:03 p.m. with

Council/Agency Members Stacey Mattina, Robert Rumfelt, and Roy Parmentier

present. Council/Agency Member Tom Engstrom was absent.

II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Carol Hays.

III. ACCEPTANCE OF AGENDA: A motion was made by Council/Agency Member Parmentier seconded by

Council/Agency Member Rumfelt and carried by voice vote, with Council/Agency

Member Engstrom absent, to accept the agenda as presented.IV. CONSENT AGENDA:

A. Ordinances: Waive reading except by title, of any ordinances under consideration at this meetin

for either introduction or passage per Government Code Section 36934.

B. Warrants: Approve warrants as listed on Warrant Register dated October 18, 2011.

C. Minutes: Approve minutes of the regular City Council meeting of October 4, 2011, and the

special City Council meetings of September 28, 2011, and October 12, 2011.

D. Building Permit Report Receive and file Building Permit Report for September, 2011.

E. Application No. 2011-20 Approve Application No. 2011-20 for the Lakeport Christian Center to hold a Fall Fe

free community event featuring activities to be held Saturday, October 22, from

11:30 a.m. to 5:00 p.m. Applicant requests closure of South Forbes Street between

and D Streets.

F. Redevelopment Pass-Through

Payments to Local Taxing Agencies

Approve disbursements to the affected local taxing agencies and the Redevelopme

Low-Moderate Housing Fund 219.

G. Proclamation Approve proclamation supporting National Health Education Week.

Vote on Consent Agenda A motion was made by Council/Agency Member Rumfelt seconded by

Council/Agency Member Parmentier, and carried by voice vote with Council/Agenc

Member Engstrom absent, to approve the Consent Agenda as posted. The

Proclamation was read by Mayor/Chair Lyons.

V. PUBLIC PRESENTATIONS/REQUESTS:

A. Citizen Input: Carol Hays, Executive Director of Lakeport Main Street Association gave an update

the association including upcoming projects. The association conducted an online

survey regarding perceptions of downtown merchants which she provided to the C

Council/Agency.

VI. PUBLIC HEARING:

A. Continue Public Hearing Regarding

Speed Limits

A motion was made by Council/Agency Member Rumfelt, seconded by

Council/Agency Member Mattina and carried by voice vote, with Council/Agency

Member Engstrom absent, to continue the public hearing of the proposed speed zo

ordinance to November 1, 2011, at 6:00 p.m.

B. Continue Public Hearing Regarding A motion was made by Council/Agency Member Rumfelt seconded by

Council/Agency Member Mattina and carried by voice vote, with Council/Agency

Member Engstrom absent, to continue public hearing regarding anInitialStudy/Mitigated Negative Declaration of the Proposed 197 Acre South Main

Street/Soda Bay Road Annexation to November 1, 2011, at 6:00 p.m.

MINUTESLAKEPORT CITY COUNCIL AND

LAKEPORT REDEVELOPMENT AGENCY

REGULAR MEETINGTuesday, October 18, 2011


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Minutes of the Lakeport City Council and Redevelopment Agency Meeting of 10/18/2011 Page 2

VII. COUNCIL BUSINESS:

A. City Clerk:

1. Poster Contest A motion was made by Council/Agency Member Mattina seconded by

Council/Agency Member Parmentier and carried by voice vote, with Council/Agenc

Member Engstrom absent, to approve poster language as presented and invite

contestants to presentation at the November 1, 2011, City Council meeting.

B. Public Works Director:

1. Lakeport Boulevard

Overlay Project

A motion was made by Council/Agency Member Parmentier, seconded by

Council/Agency Member Rumfelt, and carried by voice vote, with Council/Agency

Member Engstrom absent, to authorize the City Manager to sign contract with the

low bidder for the Lakeport Boulevard Overlay Project.

VIII. CITY COUNCIL COMMUNICATIONS:

A. Miscellaneous Reports, if any: Chief Rasmussen reported that a $4,100 grant was received for equipment and he

thanked Greg Scott for over 160 hours of volunteering for the disaster fair.

Richard Knoll updated the Council on the change in ownership and upcoming

renovations at the Anchorage Inn.

Dan Buffalo reported on activities of the Investment Advisory Committee.

Councilmember Mattina reported that both the Oktoberfest and the disaster fair

were excellent events.

Mayor Lyons commented on the disaster fair, reported on a potential event that

would like to come to Lakeport and announced several upcoming meetings. She

further asked about communication efforts with residents.

Councilmember Rumfelt spoke about upcoming meetings, commented on complai

about a fireworks display and suggested the city look into a reverse 911 system.

Councilmember Parmentier reported on upcoming meetings.

Scott Harter commented that the PG&E shut downs were not relayed to the City in

advance and staff has made calls to PG&E regarding the situation. The contractor ocertain road closures and detours fell short on communicating with affected

residents. Staff has made adjustments to the process.

IX. ADJOURNMENT: Mayor Lyons adjourned the meeting at 6:46 p.m.

ATTEST APPROVED

____________________________________ _____________________________

KELLY BUENDIA, Deputy City Clerk SUZANNE LYONS, Mayor


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Meeting Date: 11/01/2011 Page 1 Agenda Item #V.D.

CITY OF LAKEPORTCity Council

Lakeport Redevelopment AgencyCity of Lakeport Municipal Sewer District

STAFF REPORTRE: Auditor Selection and Professional Services Agreement MEETING DATE: 11/01/2011

SUBMITTED BY: Daniel Buffalo, Finance Director

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The Council is being asked to authorize the City Manager to sign the attached Professional Services

Agreement with JJACPA for independent auditing services.

BACKGROUND:

In June, 2011, staff issued a request for proposal (RFP) for professional auditing services. The City receiveda positive response to the RFP. Nine CPA firms with governmental auditing experience responded withformal proposals, of which one was a local vendor out of Kelseyville, Pehling and Pehling, CPA. AnAuditor Selection Committee comprised of the City Manager, Finance Director, Utilities Director,Redevelopment Director, and an outside accounting consultant reviewed the nine proposals, selected fourto interview, and ultimately chose JJACPA out of Pleasanton. The associated Professional ServicesAgreement has been reviewed by the City Manager and the City Attorney and finalized. It is ready forsignature.

The City has utilized a single audit firm for the last three years. Best management practices and industrystandards typically involve performing an RFP every three to five years to ensure the City receives the bestpossible auditing services at the best possible price.

DISCUSSION:

In selecting an auditor, the committee placed significant emphasis on experience, particularly in city andRDA auditing, when the final selection was made. Recent changes in the Finance Department prompted itto seek out a firm that could thoroughly review the City's accounting records, provide an independent,unbiased assessment of the its condition and the presentation of the financial statements prepared by staff,and assist department staff in bringing the books into proper order, if necessary.

During the interview process, the selection committee met with the principal audit team, which included thePresident/CEO, Joseph Arch, CPA. Their presentation was impressive, demonstrating a thoroughunderstanding of governmental accounting and auditing, as well as a unique familiarity of the accountingsoftware used by the City, FundBalance. JJACPA specializes in governmental auditing, accounting, andfinancial reporting. Current and former clients include the cities of Rocklin, Citrus Heights, San Bruno,South San Francisco, Pacifica, and Arcata, as well as numerous special districts similar to CLMSD.

The auditor shall perform annual financial audits of the City, the Redevelopment Agency, and CLMSD,beginning the fiscal year ending June 30, 2011, including a single audit of federal monies received. Thecontract term is for three years with a City option for two additional years. Services shall also include a


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Meeting Date: 11/01/2011 Page 2 Agenda Item #V.D.

presentation of the audited Annual Financial Report, as prepared by staff, to the City Council as well asavailability by phone to answer questions or assist staff with financial matters when needed or requested.

The independence of the auditor means that the firm does not work for the City but, rather, is contracted toprovide an expert, objective opinion on its financial condition, as presented in the financial statements, andto provide advice to staff regarding generally accepted accounting principles (GAAP), promulgated by theGovernmental Accounting Standards Board (GASB). The auditor also is charged with identifying any fraudor malfeasance and reporting that to the next highest level of authority up to, and including, the CityCouncil. Furthermore, the auditor will be available to the City Council to answer any questions.

The cost proposal by JJACPA was relatively low compared to the other firms. Fees for first year audit willnot exceed $23,825. This includes time, materials, and travel costs for two weeks of on-site field work. As apoint of reference, the City, RDA, and CLMSD spent $30,000 combined for the 2010 audit, which did notinclude a single audit report. This was the amount budgeted for audit services in the current fiscal year.

The total amount of the three-year contract shall not exceed $69,722.00. In the event the City exercises itsoption for two additional years, the total cost of the agreement shall not exceed an additional $48,034.00, agrand five-year total of $117,806. The City Manager shall be responsible for exercising the additional two-year option.

Audit work is tentatively scheduled to begin in early December. The final report shall be furnished to theCity by December 15, with presentation of the audit to the Council in early 2012.

OPTIONS:

1. Approve and authorize the City Manager to sign the attached Professional Services Agreement withJJACPA, Inc. for independent auditing services.

2. Do not approve but provide direction to staff.

FISCAL IMPACT:

None $$117,806 Account Number: 110-1041-930.000, 212-1041-930.000, 219-1041-930.000, 501-1041-930.000, 601-1041-930.000

SUGGESTED MOTIONS:

Approve and authorize the City Manager to execute the Professional Services Agreement with JJACPA forindependent auditing services, and authorize the City Manager to exercise the option of two additional years,at her discretion, if determined to be appropriate and beneficial to the City.

Attachments: Professional Services Agreement with JJACPA with"Auditor's Proposal Included as "Exhibit A"

RFP for Professional Auditing Services, June 2011


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AGREEMENT FOR SERVICES

with

JJACPA, INC.

regarding

INDEPENDENT PROFESSIONAL AUDITING SERVICES

THIS AGREEMENT ("Agreement") made and entered into this [INSERT DATE], isbetween the City of Lakeport, a general law city in the State of California (hereinafter referred toas "City") and JJACPA, Inc., and professional services corporation, duly qualified to conductbusiness in California, whose principal place of business is 349 Main Street, Suite 204,Pleasanton, CA, 94566-6663 (hereinafter referred to as "Auditor").

WITNESSETH

WHEREAS, City has determined that is necessary to obtain Auditor to provide independent,professional auditing services; and

WHEREAS, Auditor has represented to City that it is specially trained, experienced, expert, andcompetent to perform the special services required hereunder, and City has determined to relyupon such representations; and

WHEREAS, it is the intent of the parties hereto that such services be in conformity with allapplicable federal, state, and local laws; and

WHEREAS, City has determined that the provisions of such services provided by Auditor are inthe public's best interest and are more economically and feasibly performed by outsideindependent Auditors.

NOW, THEREFORE, City and Auditor mutually agree as follows:


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AGREEMENT

INCORPORATION OF RECITALS. The recitals set forth above, and all defined terms set forthin such recitals and in the introductory paragraph preceding the recitals, are hereby incorporatedinto this Agreement as if set forth herein in full.


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1. SCOPE OF SERVICES.

(a) Services to be Furnished. Auditor shall perform the services set forth in ExhibitA, Proposal to Provide Annual Financial Audit,Sections 8-10, attached hereto and incorporatedherein by reference.

(b) Schedule for Performance. Auditor shall perform the services identified inExhibit A, Section 11, and on an annual basis in each year this contract is in effect, as defined inSection 5 herein. Auditor shall complete services defined therein and provide City with finalprinted reports annually no later than December 15 of the year in which services are performed.

(c) Standard of Quality. All work performed by Auditor under this Agreement shallbe in accordance with all applicable legal requirements and shall meet the standard of qualityordinarily to be expected of competent professionals in Auditor's field of expertise.

(d) Compliance with Laws. Auditor shall comply with all applicable federal, state,and local laws, codes, ordinances, regulations, orders, and decrees. Auditor represents and

warrants to City that Auditor shall, at its own cost and expense, keep in effect or obtain at alltimes during the term of this Agreement any licenses, permits, insurance, and approvals that arelegally required for Auditor to practice its profession or are necessary and incident to the due andlawful prosecution of the services it performs under this Agreement. Auditor shall maintain aCity business license unless granted exception by the City. Auditor shall at all times during theterm of this Agreement, and for one year thereafter, provide written proof of such licenses,permits, insurance, and approvals upon request by City. City is not responsible or liable forAuditor's failure to comply with any or all of the requirements contained in this paragraph.

2. COMPENSATION.(a) Schedule of Payment. The compensation to be paid by City to Auditor for theservices rendered hereunder shall be on a time and materials basis based upon the rate schedule

in Appendix B of Exhibit A.

(b) Total Compensation. The total compensation under this Agreement shall notexceed $69,772.00 for the first three (3) years. If the City elects to exercise its right to extend theAgreement, pursuant to Section 5 herein, total compensation under this Agreement shall notexceed an additional $48,034.00 for a grand total amount of $117,806.00.

(c) Additional Services. City shall make no payment to Auditor for any extra,further, or additional services unless such services and payment have been mutually agreed toand this Agreement has been formally amended in accordance with Section 7. Auditor shall notcommence any work exceeding the Scope of Services in Section 2 without prior writtenauthorization from City.

(d) Invoicing and Payment. Auditor shall submit periodic invoices following thesubmission and acceptance of the basic reports identified in Appendix B of Exhibit A for theyear in which services were provided. City shall approve or disapprove the invoice within fifteen(15) calendar days following receipt thereof and shall pay all approved invoices and billingswithin thirty (30) calendar days. City reserves the right to withhold payment of disputed specific


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items and shall give notice to the Auditor, pursuant to Section 12, of all such disputed specificitems within fifteen (15) business days following receipt of an invoice. The parties shall exercisegood faith and diligence in the resolution of any disputed invoice amounts.

3. FISCAL CONSIDERATIONS. The parties understand and acknowledge that the City issubject to the provisions of Article XVI, section 18 of the California Constitution and othersimilar fiscal and procurement laws and regulations and may not expend funds for products,equipment, or services not budgeted in a given fiscal year. It is further understood that in thenormal course of City business, City will adopt a proposed budget prior to a given fiscal year,but that the final adoption of a budget does not occur until after the beginning of the fiscal year.

Notwithstanding any other provision of this Agreement to the contrary, City shall give notice ofcancellation of this Agreement in the event of adoption of a proposed budget that does notprovide for funds for the services, products, or equipment subject herein. Such notice shallbecome effective upon the adoption of a final budget that does not provide funding for thisAgreement. Upon the effective date of such notice, this Agreement shall be automaticallyterminated and City released from any further liability hereunder.

In addition to the above, should the City Council during the course of a given year for financialreasons reduce, or order a reduction, in the budget for any City department for which serviceswere contracted to be performed, pursuant to this paragraph in the sole discretion of the City, thisAgreement may be deemed to be canceled in its entirety subject to payment for servicesperformed prior to cancellation.

4. PRODUCT REVIEW AND COMMENT. Auditor shall provide City with five (5) copiesof each product described in Exhibits A and C. Upon the completion of each product, Auditorshall be available to meet with City. If additional review and/or revision is required by City,City shall conduct reviews in a timely manner.

5. TERM OF AGREEMENT. This Agreement shall be effective upon final signature andshall remain in effect until December 31, 2013. At the discretion of City, the Agreement may beextended up to an additional two (2) years, effective to December 31, 2015. City shall notifyAuditor in writing if such extension is exercised no later than June 30, 2013.

6. TERMINATION.(a) DEFAULT. Upon the occurrence of any default of the provisions of this

Agreement, a party shall give written notice of said default to the party in default. If the party indefault does not cure the default within ten (10) days of the date of notice (time to cure), thensuch party shall be in default. The time to cure may be extended in the discretion of the partythat gave notice. Any extension of time to cure must be in writing, prepared by the party indefault for signature by the party giving notice and must specify in writing the reason(s) for theextension and the date in which the extension of time to cure expires.

Notice given under this section shall specify the alleged default and the applicable Agreementprovision and shall demand that the party in default perform the provisions of this Agreementwithin the applicable period of time. No such notice shall be deemed a termination of this


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Agreement unless the party giving notice so elects in this notice, or the party giving notice soelects in a subsequent written notice after the time to cure has expired.

(b) BANKRUPTCY. This Agreement, at the option of the City, shall be terminablein the case of Auditor's bankruptcy, whether voluntary or involuntary, or insolvency.

(c) CEASING PERFORMANCE. City may terminate this Agreement in the eventAuditor ceases to operate as a business or otherwise becomes unable to substantially perform anyterm or condition of this Agreement.

(d) TERMINATION WITHOUT CAUSE. City shall have the right to terminate thisAgreement for any reason, at any time, by serving upon Auditor thirty (30) calendar daysadvance written notice of termination. The notice shall be deemed served and effective for allpurposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressedto Auditor at the address indicated in Section 12.

(e) If City issues a notice of termination:(i) Auditor shall immediately cease rendering services pursuant to this

Agreement;

(ii) Auditor shall deliver to City copies of all writings, whether or notcompleted, which were prepared by Auditor, its employees, or its subcontractors, if any, pursuantto this Agreement and for which Auditor has been paid in accordance with Section 7(b)(iii). Theterm writings shall include, but not be limited to, handwriting, typewriting, computer files andrecords, drawings, blueprints, printing, photostatting, photographs, and every other means ofrecording upon any tangible thing, any form of communication or representation, includingletters, words, pictures, sounds, symbols, or combinations thereof. City reserves the right to take

over and complete the work by contract or other means;

(iii) City shall pay Auditor for work actually performed up to the effective dateof the notice of termination, subject to the limitations prescribed by Section 3 of this Agreement,less any compensation to City for damages suffered as a result of Auditor's failure to complywith the terms of this Agreement. Such payment shall be in accordance with Section 2.However, if this Agreement is terminated because the work of Auditor does not meet the termsor standards specified in this Agreement, then City shall be obligated to compensate Auditoronly for that portion of Auditor's services that are of benefit to City.

7. AMENDMENTS. This Agreement may be amended by mutual consent of the parties.Said amendments shall become effective only when in writing and fully executed by dulyauthorized officers of the parties.

8. NONDISCLOSURE OF CONFIDENTIAL INFORMATION. Auditor shall not, eitherduring or after the term of this Agreement, disclose to any third party any confidentialinformation relative to the work of City without the prior written consent of City.


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9. INSPECTION. City representatives shall, with reasonable notice, have access to thework and work records of Auditor, including time records, for purposes of inspecting same anddetermining that the work is being performed in accordance with the terms of this Agreement.

10. INDEPENDENT CONTRACTOR. In the performance of the services in thisAgreement, Auditor is an independent contractor and is not an agent or employee of City.Auditor, its officers, employees, agents, and subcontractors, if any, shall have no power to bindor commit City to any decision or course of action, and shall not represent to any person orbusiness that they have such power. Auditor has and shall retain the right to exercise full controlof the supervision of the services and over the employment, direction, compensation, anddischarge of all persons assisting Auditor in the performance of said service hereunder. Auditorshall be solely responsible for all matters relating to the payment of its employees, includingcompliance with social security and income tax withholding, workers' compensation insurance,and all other regulations governing such matters.

11. NOTICE. Any notices or other communications to be given to either party under thisAgreement shall be in writing, shall be delivered to the addresses set forth below, and shall be

effective, as follows:

(a) by personal delivery, effective upon receipt by the addressee;(b) by facsimile, effective upon receipt by the addressee, so long as a copy is

provided by certified U.S. mail, return receipt requested, postmarked the same day as thefacsimile;

(c) by certified U.S. mail, return receipt requested, effective 72 hours after deposit inthe mail.

(d) Notices to City shall be in duplicate.CITY: CITY OF LAKEPORT

225 Park StreetLakeport, CA 95453Attn: Daniel Buffalo, Finance DirectorPhone: (707) 263-5615Fax: (707) 263-8584

AUDITOR: JJACPAAttn: Joseph Arch, President/CEO349 Main Street, Ste 204Pleasanton, CA 94566-6663Phone : (925) 462-6400Fax: (510) 217-5930

Either party may change its address for notices by complying with the notice proceduresin this Section.


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12. OWNERSHIP OF MATERIALS. Auditor is the owner of all records and informationcreated, produced, or generated as part of the services performed under this Agreement. At anytime during the term of this Agreement, at the request of City, Auditor may deliver to City allwritings, records, and information created or maintained pursuant to this Agreement and forwhich Auditor has been paid in accordance with this Agreement and under the Freedom of

Information Act.

13. ASSIGNMENT; SUBCONTRACTING; EMPLOYEES.(a) Assignment. Auditor shall not assign, delegate, or transfer its duties,

responsibilities, or interests in this Agreement without the prior express written consent of City.Any assignment without such approval shall be void and, at City's option, shall terminate thisAgreement and any license or privilege granted herein.

(b) Subcontracting. Auditor shall not subcontract or otherwise assign any portion ofthe work to be performed under this Agreement without the prior express written consent of City.If City consents to Auditor's hiring of subcontractors, all subcontractors are deemed to be

employees of Auditor, and Auditor agrees to be responsible for their performance. Auditor shallgive its personal attention to the fulfillment of the provisions of this Agreement by all of itsemployees and subcontractors, if any, and shall keep the work under its control.

14. BINDING AGREEMENT. This Agreement shall bind the successors of City andAuditor in the same manner as if they were expressly named herein.

15. WAIVER.(a) Effect of Waiver. Waiver by either party of any default, breach, or condition

precedent shall not be construed as a waiver of any other default, breach, or condition precedent

or any other right under this Agreement.

(b) No Implied Waivers. The failure of either party at any time to requireperformance by the other party of any provision hereof shall not affect in any way the right torequire such performance at a later time.

16. NONDISCRIMINATION.(a) Auditor shall not discriminate in the conduct of the work under this Agreement

against any employee, applicant for employment, or volunteer because of race, color, creed,religion, national origin, sex, age, marital status, sexual orientation, medical condition, orphysical or mental disability.

(b) Auditor shall comply with all federal and state anti-discrimination and civil rightslaws.

(c) Auditor agrees to post in conspicuous places, available to all employees andapplicants for employment, notices that Auditor shall provide an atmosphere for employees,clients, and volunteers that is free from harassment or discrimination on the bases set forth insubsection 17(a).


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17. INDEMNITY.(a) To the fullest extent permitted by law, Auditor shall defend (with legal counsel

reasonably acceptable to the City Attorney), indemnify, and hold harmless City and its officers,agents, departments, officials, representatives, and employees (collectively "Indemnitees") fromand against any and all claims, loss, cost, damage, injury (including, without limitation, injury toor death of an employee of Auditor or its subcontractors), expense, and liability of every kind,nature and description (including, without limitation, fines, penalties, incidental andconsequential damages, court costs, attorneys' fees, litigation expenses, and fees of expertAuditors or expert witnesses incurred in connection therewith, and costs of investigation), thatarise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of Auditor,any subcontractor, anyone directly or indirectly employed by them, or anyone that they control(collectively "Liabilities"). Such obligations to defend, hold harmless, and indemnify anyIndemnitee shall not apply to the extent that such Liabilities are caused by the sole negligence,active negligence, or willful misconduct of such Indemnitee.

(b) To the extent there is an obligation to indemnify under this Section 18, Auditorshall be responsible for incidental and consequential damages resulting from Auditor'snegligence, recklessness, or willful misconduct.

(c) Auditor agrees to obtain executed indemnity agreements with provisions identicalto those set forth in this Section from each and every subcontractor or any other person or entityinvolved by, for, with, or on behalf of Auditor in the performance of this Agreement. If Auditorfails to obtain such indemnity obligations from others as required, Auditor shall be fullyresponsible for all obligations under this Section. City's failure to monitor compliance with thisrequirement imposes no additional obligations on City and will in no way act as a waiver of anyrights hereunder. The obligation to indemnify and defend City as set forth herein is binding onthe successors, assigns, or heirs of Auditor and shall survive the termination of this Agreement or

Section.

18. INSURANCE.(a) Required Coverage. Auditor, at its sole cost and expense, shall obtain and

maintain in full force and effect throughout the entire term of this Agreement the followingdescribed insurance coverage. This coverage shall insure not only Auditor, but also, with theexception of workers' compensation and employer's liability insurance, shall name as additionalinsureds City, its officers, agents, employees, and volunteers, and each of them, but only insofaras the operations under this Agreement are concerned:

Policy Minimum Limits of Coverage(i) Workers' Compensationand Employer's Liability

Statutory and $1,000,000 per accident forbodily injury or disease, respectively.


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(ii) ComprehensiveAutomobile Insurance ServicesOffice, form #CA 0001 (Ed 1/87covering auto liability code 1(any auto)

Bodily Injury/Property Damage $1,000,000each accident.

(iii) General LiabilityInsurance Services OfficeCommercial General Liabilitycoverage on an occurrence basis(occurrence form CG 0001)

$2,000,000 per occurrence. If CommercialGeneral Liability Insurance or other form witha general aggregate limit shall apply separatelyto this Project or location, the generalaggregate limit shall be twice the requiredoccurrence limit.

(iv) Errors and Omissions/Professional's Liability, errorsand omissions liabilityinsurance appropriate to the

Auditor's profession.

$1,000,000 per occurrence.

If Auditor maintains higher limits then the minimum shown above, City shall be entitledto coverage for the higher limits maintained by Auditor.

(b) Deductibles and Self-Insured Retentions. Any deductibles or self-insuredretentions must be declared to and approved by City. At the option of City, either: the insurershall reduce or eliminate such deductibles or self-insured retentions as respect City, or Auditorshall provide a financial guarantee satisfactory to City guaranteeing payment of losses andrelated investigations, claim administration, and defense expenses.

(c) Required Provisions. The general liability and automobile liability policies are tocontain, or be endorsed to contain, the following provisions:

(i) For any claims related to this Project, Auditor's insurance coverage shallbe primary insurance as respects City, its officers, officials, employees, and volunteers. Anyinsurance or self-insurance maintained by City, its officers, officials, employees, or volunteersshall be in excess of Auditor's insurance and shall not contribute with it;

(ii) Any failure to comply with reporting or other provisions of the policiesincluding breaches of warranties shall not affect coverage provided to City, its officers, officials,

employees, or volunteers;

(iii) Auditor's insurance shall apply separately to each insured against whomclaim is made or suit is brought, except with respect to the limits of the insurer's liability;

(iv) Each insurance policy required by this Section shall be endorsed to statethat coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in


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limits except after giving City 30 days' prior written notice by certified mail, return receiptrequested.

(d) Acceptability of Insurers. Auditor shall place insurance with insurers that have acurrent A.M. Best's rating of no less than A:VII unless Auditor requests and obtains City'sexpress written consent to the contrary.

(e) Verification of Coverage. Auditor must provide complete, certified copies of allrequired insurance policies, including original endorsements affecting the coverage required bythese specifications to the City Attorney. The certificate of insurance must provide that theinsurer will not cancel the insured's coverage without thirty (30) days prior written notice to City.The endorsements are to be signed by a person authorized by Auditors insurer to bind coverageon its behalf. All endorsements are to be received and approved by City before workcommences. However, failure to do so shall not operate as a waiver of those insurancerequirements. City reserves the right to require complete, certified copies of all requiredinsurance policies, including endorsements affecting the coverage required by thesespecifications at any time.

(f) Continual Coverage. Auditor agrees that the insurance required above shall be ineffect at all times during the term of this Agreement. In the event said insurance coverageexpires at any time(s) during the term of this Agreement, Auditor agrees to provide at least thirty(30) days prior to said expiration date, a new certificate of insurance evidencing insurancecoverage as provided for herein for not less than the remainder of the term of the Agreement, orfor a period of not less than one (1) year. New certificates of insurance are subject to theapproval of the City Attorney, and Auditor agrees that no work or services shall be performedprior to the giving of such approval. In the event Auditor fails to keep in effect at all timesinsurance coverage as provided herein, City may, in addition to any other remedies it may have,terminate this Agreement upon the occurrence of such event.

(g) Additional Provisions.(i) Any failure to comply with the reporting provisions of the policies shall

not affect coverage provided to the City, its officers, officials, employees, or volunteers.

(ii) Auditor's obligations shall not be limited by the foregoing insurancerequirements and shall survive expiration of this Agreement.

(iii) The insurance companies shall have no recourse against the City, itsofficers or employees or any of them for payment of any premiums or assessments under anypolicy issued by any insurance company.

(iv) In the event Auditor cannot provide an occurrence policy, Auditor shallprovide insurance covering claims made as a result of performance of this Agreement for not lessthan three (3) years following completion of performance of this Agreement.

(v) The certificate of insurance shall meet such additional standards as may bedetermined by the contracting City department either independently or in consultation with theCity Attorney, as essential for protection of the City.


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19. WORKERS' COMPENSATION.(a) Covenant to Provide. Auditor warrants that it is aware of the provisions of the

California Labor Code that require every employer to be insured against liability for workers'compensation or to undertake self-insurance in accordance with the provisions of that code.Auditor further agrees that it will comply with such provisions before commencing theperformance of the work under this Agreement.

(b) Waiver of Subrogation. Auditor and Auditor's insurance company agree to waiveall rights of subrogation against City, its elected or appointed officials, agents, and employees forlosses paid under Auditors workers' compensation insurance policy that arise from the workperformed by Auditor for City.

20. FINANCIAL RECORDS. Auditor shall retain all financial records, including but notlimited to documents, reports, books, and accounting records which pertain to any work ortransaction performed pursuant to this Agreement for three (3) years after the expiration of thisAgreement. City or any of its duly authorized representatives shall, with reasonable notice, have

access to and the right to examine, audit, and copy such records.

21. TAXPAYER IDENTIFICATION/ FORM W-9. Auditor shall provide to City a fullyexecuted Department of the Treasury Internal Revenue Service Form W-9, "Request forTaxpayer Identification Number and Certification."

22. CALIFORNIA RESIDENCY (FORM 590). Auditor shall file a State of California Form590, certifying its California residency or, in the case of a corporation, certifying that it has apermanent place of business in California. Auditor shall be required to submit a Form 590 priorto execution of this Agreement, or City shall withhold seven (7) percent of each payment madeto Auditor during the term of this Agreement. This requirement applies to any agreement

exceeding One Thousand Five Hundred Dollars ($1,500.00).

23. CONFLICT OF INTEREST. Both parties have read and are aware of the provisions ofGovernment Code Section 1090 et seq. and Section 87100 et seq. relating to conflicts of interestof public officers and employees. Auditor attests that it has no current business or financialrelationship with any City employee(s) that would constitute a conflict of interest with provisionof services under this Agreement and will not enter into any such business or financialrelationship with any such employee(s) during the term of this Agreement. Auditor shallexercise reasonable care and diligence to prevent any actions or conditions that could result in aconflict with City's interest. During the term of this Agreement, Auditor shall not accept anyemployment or engage in any consulting work that creates a conflict of interest with City or in

any way compromises the services to be performed under this Agreement. Auditor shallimmediately notify City of any and all violations of this Section upon becoming aware of suchviolation. City represents that it is unaware of any financial or economic interest of any publicofficer or employee of Auditor relating to this Agreement. If such a financial interest does existat the inception of this Agreement, either party may immediate terminate this Agreement bygiving written notice to the other.


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24. TIME OF THE ESSENCE. AUDITOR understands and agrees that time is of theessence in the completion of the work and services described in Section 2. Auditor shall ensurethat all reports, statements, and work to be completed annually, pursuant to Appendix B ofExhibit A, shall be ready, prepared, and submitted to City no later than December 15 of the yearin which services were performed.

25. SEVERABILITY. If any court of competent jurisdiction or subsequent preemptivelegislation holds or renders any of the provisions of this Agreement unenforceable or invalid, thevalidity and enforceability of the remaining provisions, or portions thereof, shall not be affected.

26. GOVERNING LAW AND CHOICE OF FORUM. This Agreement shall beadministered and interpreted under California law as if written by both parties. Any litigationarising from this Agreement shall be brought in the Superior Court of Lake County. Any disputeresolution action arising out of this Agreement, including mediation or arbitration, shall bebrought in the City of Lakeport and shall be resolved in accordance with the laws of the State ofCalifornia.

27. MEDIATION/ARBITRATION If a dispute arises out of or relates to this agreement, orthe breach thereof, and if the dispute cannot be settled through negotiation, the parties agree firstto try in good faith to settle the dispute by mediation administered by the Lake County SuperiorCourt Mediation Program before resorting to arbitration or some other mutually agreed disputeresolution procedure. If they do not reach such solution within a period of 60 days fromappointment of a mediator, then, upon notice by either party to the other, all disputes, claims,questions, or differences shall be finally settled by binding arbitration administered by anarbitrator jointly selected by the parties or if no such agreement is reached then according to theAmerican Arbitration Association in accordance with the provisions of its CommercialArbitration Rules. Binding mediation shall be the sole remedy of last resort and is deemed by theparties to be a material part of this agreement.

28. VENUE For all proceedings initiated to resolve disputes between the parties it is agreedthat venue for all purposes shall lie in exclusively in Lake county California.

29. COSTS AND ATTORNEYS' FEES. If either party commences any legal action againstthe other party arising out of this Agreement or the performance thereof, the prevailing party insuch action may recover its reasonable litigation expenses, including court costs, expert witnessfees, discovery expenses, and attorneys' fees.

30. AUTHORITY. The parties to this Agreement warrant and represent that they have thepower and authority to enter into this Agreement in the names, titles, and capacities herein stated

and on behalf of any entities, persons, estates or firms represented or purported to be representedby such entity(s), person(s), estate(s), or firm(s) and that all formal requirements necessary orrequired by any state and/or federal law in order to enter into this Agreement have been fullycomplied with. Further, by entering into this Agreement, neither party hereto shall havebreached the terms or conditions of any other contract or agreement to which such party isobligated, which such breach would have a material effect hereon.


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31. FORCE MAJEURE. Except as otherwise provided in this Agreement, if the performanceof any act required by this Agreement by either City or Auditor is prevented or delayed byreason of any act of God, strike, act of terrorism, lockout, labor trouble, inability to securematerials, restrictive governmental laws or regulations or any other cause not the fault of theparty required to perform the act, the time for performance of the act will be extended for a

period equivalent to the period of delay and performance of the act during the period of delaywill be excused.

32. ADMINISTRATOR. The City officer or employee with responsibility for administeringthis Agreement is Daniel Buffalo, Finance Director, or his successor.

33. INTEGRATION. This Agreement and the documents referred to herein or exhibitshereto represent the entire understanding of City and Auditor as to those matters contained hereinand supersedes all prior negotiations, representations, or agreements, both written and oral. ThisAgreement may not be modified or altered except in accordance with Section 8.

Executed by City and Auditor on the date shown next to their respective signatures. The

effective date of this Agreement shall be the date of execution by City as shown below.

AUDITOR

By: ______________________________________ Date: __________________Joseph Arch, President/CEOJJACPA, Inc.

CITY OF LAKEPORT

By: ______________________________________ Date: __________________Margaret Silveira, City ManagerCity of Lakeport

Approved as to form:

By: ______________________________________ Date: __________________Steven Brookes, City AttorneyCity of Lakeport


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EXHIBIT A

PROPOSAL TO PROVIDE ANNUAL FINANCIAL AUDIT

FOR THE FISCAL YEARS ENDING JUNE 30, 2011 THROUGH JUNE 30, 2015


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CITY OF LAKEPORT

REQUEST FOR PROPOSALS FOR PROFESSIONAL AUDITINGSERVICES

JUNE 2011


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Contents1. Introduction ......................................................................................................................... 1

2. City of Lakeport ................................................................................................................... 1

3. Proposal Deadline and Contact Information ........................................................................ 2

4. Selection Schedule ............................................................................................................. 2

5. Scope of Services ............................................................................................................... 2

6. Auditor Requirements ......................................................................................................... 4

(a) Working Paper Retention and Access ...................................................................... 4

(b) Providing an Audit Work Schedule ........................................................................... 5

(c) Miscellaneous Auditor Opinions ............................................................................... 5

(d) Additional Provisions ................................................................................................ 5

7. City Provisions .................................................................................................................... 5

8. Term of Service................................................................................................................... 6

9. Service Agreement ............................................................................................................. 6

10. Required Proposal Content ............................................................................................. 6

Exhibit A - List of Initial Known Independent Audit Firms ...........................................................10

Exhibit B Standard Professional Services Agreement ............................................................11

Exhibit C Cost Estimate Worksheet ........................................................................................28

Exhibit D - Non-Inclusive List of Local Lodging and Accommodations .......................................29


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City of Lakeport June 2011RFP for Professional Auditing Services

225 Park Street P a g e | 1Lakeport, CA 95453707.263.5615

1. IntroductionThe City of Lakeport is seeking proposals from certified public accounting firms for professional

auditing services. This includes auditing the basic financial statements of its general

government and component units, financial compliance requirements (including single audit

requirements), and internal financial controls.

2. City of LakeportThe City of Lakeport is a small city located just north of Napa County in Northern California. It

resides on the western shore of Clear Lake, the largest natural lake located entirely within the

state. Proximity to the lake makes Lakeport the premier tourist and recreation destination in

Lake County during spring, summer, and early fall. Local government, professional services,

and tourism/recreation are the primary industries in the region.

Incorporated in 1888, Lakeport is a general law, partial service city with a population of

approximately 5,100 residents; however, it serves as the county seat for the County of Lake

and, as such, serves a trade area of roughly 30,000. It provides basic municipal utility, police,

administrative, planning, parks, and public works services. It does not administer functions

related to fire protection, library, or recreation with the exception of operating a public

swimming pool during the summer. The City does administer an active redevelopment agency,

the project area of which encompasses approximately 40% of the city boundary. Sewer

enterprise services are administered by a special district, which is staffed by City personnel and

governed by the same five-member board that comprises the City Council. Lakeport employs

approximately 45 regular, full-time positions.

The Finance Department for the City performs and manages regular accounting, investment

activities, payroll, utility billing, accounts payable and receivable, financial management,

reporting, and purchasing functions. The Department has undergone significant restructuring

over the last 12 months to better align its activities with the needs and available resources of the

City. This has prompted Department and City management to conduct a thorough evaluation of

existing policies, procedures, and historical activities to determine their effectiveness and

appropriateness compared to best management practices. The Citys accounting software is

FundBalance, a Tyler Technology product. The department is staffed with four positions, the

Finance Manager serving as the department head.

For fiscal year, 2010-2011, the City maintained a general fund and a separate general fundreserve, 32 special revenue funds (this number has been reduced significantly in FY 2011-

2012), 5 enterprise funds for water and sewer, 3 trust and agency funds, and 4 redevelopment

agency funds. The City Council appropriated an operating budget of over $14 million for FY


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2010-2011. A copy of the adopted budget can be found on the Citys website under the Finance

Department page,www.cityoflakeport.com/Finance.

3. Proposal Deadline and Contact InformationAll interested parties should submit proposals no later than 5:00 PM Friday, July 1, 2011.

Submitted proposals should include five (5) bound copies and be addressed to the following:

City of LakeportAttn: Daniel Buffalo, Finance Manager225 Park StreetLakeport, CA. 95453

All inquiries related to this RFP should be directed to the Finance Manager at the addressabove or by means below:

Phone: (707) 263-5615 Ext. 16Fax: (707) 263-8584Email: [email protected]

4. Selection ScheduleThe following includes the tentative schedule for Auditor selection, contract execution, and

desired audit commencement.

RFP Submittal Deadline July 1, 2011Proposal Review July 8, 2011Top Three Interviews July 22, 2011

Auditor Selection July 29, 2011Contract Execution August 19, 2011Audit Commencement October 3, 2011

5. Scope of ServicesThe Auditor shall perform and provide the following for the City of Lakeport and its blended

component units, including the City of Lakeport Redevelopment Agency and the City of

Lakeport Municipal Sewer District.

(a) Examination of all funds and account groups.

(b) Examination of the Citys basic financial statements for the primary government and the

aforementioned component units, in accordance with GASB 34 and all other relevant

generally accepted accounting principles. The City prefers the use ofgenerally

accepted government auditing standards (GAGAS), but will accept proposals using
http://www.cityoflakeport.com/Financehttp://www.cityoflakeport.com/Financehttp://www.cityoflakeport.com/Financehttp://www.cityoflakeport.com/Finance


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generally accepted auditing standards(GAAS). The proposal must state which standard

will be used.

(c) Examination of the Single Audit Report.

(d) Examination of the Redevelopment Agencys annual budget, Statement ofIndebtedness, and all other statutorily required reports, documents, and statements, in

accordance with the State Controllers Guidelines for Compliance Audits of California

Redevelopment Agencies and Suggested Auditing Procedures for Accomplishing

Compliance Audits of California Redevelopment Agencies.

(e) Preparation of a Management Letter addressed to the City Manager and Finance

Manager/CFO which will include findings, statements, observations, opinions,

comments, or recommendations with regards to:

(i) Results of the examinations listed in items 1-4 above (unless presented in

separate reports at the Auditors discretion).

(ii) Systems of internal control.

(iii) Accounting systems, functions, procedures, and processes.

(iv) Purchasing systems, functions, procedures, and processes.

(v) Compliance with laws, rules, and regulations, including the Citys regulatory

compliance with the Single Audit requirement and the Red Flag Rule.

(f) Attendance at a minimum of two City meetings each year, for the purpose of discussingthe audit and the management letter with staff and the City Council.

(g) Auditor shall provide:

(vi) Two (2) unbound reproducible masters of the Independent Auditor Report of

items 1-4 above, management letter, and all audited financial statements in their

entirety.

(vii) Fifteen (15) bound copies of the entire package referenced in item E above.

(h) Auditors shall ensure that the City is informed of each of the following:

(viii) The Auditors responsibility under generally accepted auditing standards

(ix) Significant accounting policies

(x) Management judgments and accounting estimates


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(xi) Other information in documents containing audited financial statements

(xii) Disagreements with management

(xiii) Management consultation with other accountants

(xiv) Major issued discussed with management prior to retention

(xv) Difficulties encountered in performing the audit

(i) If the Auditor finds indications of defalcation or other circumstances requiring an

extension of procedures beyond the scope of the examination, which would be sufficient

under ordinary circumstances, the Auditor will make an immediate, written report of all

irregularities and illegal acts or indications of illegal acts of which they become aware.

The report shall be made to:

Margaret Silveira, City Manager

Steven Brookes, City Attorney

Daniel Buffalo, Finance Manager/CFO

If all of the named individuals above are involved in the defalcation, the Auditor shall

report to the City Council and the District Attorney.

6. Auditor RequirementsIn addition to performing the Scope of Services above, the Auditor will be required to comply

with the following:

(a) Working Paper Retention and Access

All work papers and reports must be retained, at the Auditors expense, for the minimum of

three (3) years, unless the firm is notified in writing by the City of Lakeport of the need to extend

the retention period. The Auditor may be required to make working papers available, upon

request, to parties specifically designated by the City as reasonable.

In addition, the firm shall respond to the reasonable inquiries of successor Auditors and allow

successor Auditors to review work papers.

The Citys most recent audit was conducted by Marcello and Company, Certified PublicAccountant, Sacramento, CA. The work papers of the previous audits are the property of the

previous Auditor and may be reviewed by the successful proposer.


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(b) Providing an Audit Work Schedule

The selected Auditor shall provide the City with a work schedule for the first year audit in the

proposal and must adhere to that schedule unless mutually agreed to in advance by both the

Auditor and the City. The Auditor must submit subsequent year audit schedules to the City no

later than May 30 of the audit year.

(c) Miscellaneous Auditor Opinions

The City may prepare one or more official statements in connection with the sale of debt

securities which will contain the general purpose financial statements and the Auditors opinion

thereon. The Auditor shall be required, if requested by the fiscal advisor and/or underwriter, to

issue a consent and citation of expertise as the Auditorand any necessary comfort letters at

no additional cost.

(d) Additional Provisions

The Auditor may not assign or transfer this agreement, any interest therein or claim thereunder

without the prior written approval of the City.

News releases pertaining to this RFP or to the award of this contract shall not be made without

prior approval of the City. Likewise all information concerning the Financial Reports and

Management Letter must first be reviewed by the City of Lakeport.

The City shall not reimburse any potential Auditor for costs associated with preparation of this

proposal.

The Auditor who is awarded the contract is required to procure a City of Lakeport Business

License as a contract Auditor.

The City reserves the right to reject any and all proposals submitted. Award of the contract willbe made to the independent audit firm who, based on evaluation of all responses and criteria, is

determined to be the best qualified to perform the audit.

7. City ProvisionsCity staff will provide the following assistance to the Auditor:

(a) City staff will perform year-end close of the audited fiscal year

(b) City staff shall prepare the basic financial statements and single audit report for the City

and its blended component units, including government-wide financial statements, fund

financial statements, and accompanying notes to the financial statements.

(c) City staff and responsible management personnel will be available during the audit to

assist the Auditor by providing information, documentation, and explanations.


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(d) City staff will prepare the management discussion and analysisto be incorporated into

the financial statements.

(e) City staff will prepare a list of all requisite schedules requested by the Auditor. The

Auditors shall provide a list of all schedules to be provided by the City (including

confirmations) to the Audit Manager by June 1st of each year.

8. Term of ServiceThe contracted audit periods shall cover the three (3) fiscal years ending June 30, 2011, 2012

and 2013, with the option to extend the contract an additional two (2) fiscal years ending 2014

and 2015.

Fees shall include bids for a five-year engagement. An itemized cost analysis shall be

submitted for the amount of time anticipated for the Principal and his/her staff. The City requires

that total cost be stated on a not to exceed basis. However, a quote of hourly fees is also

requested in the event that the Auditors must perform other tasks not specifically associated

with the audit. Prior written approval must be granted by the City Manager and the Finance

Manager/Director for performance of any services to be billed as additional cost above the

contracted amount.

Fees for services may be billed as the work progresses but not more often than once a month.

An hourly distribution of work is required for payment, as well as separate billings for City of

Lakeport, the City of Lakeport Redevelopment Agency, and CLMSD. Ten percent (10%) of the

total fee will be withheld until all audit work is completed and accepted by the City Council.

9. Service AgreementThe selected Auditor will be required to enter into a City of Lakeport Professional Service

Agreement, attached hereto as Exhibit B. The final terms of the Agreement shall be negotiated

by the City and the selected Auditor. If final terms cannot be agreed upon, the City maintains

the right to cancel further negotiations with that Auditor, reject the proposal, and begin

negotiations with the next highest-ranked independent Auditor. Any later revisions,

modifications, or changes to that Agreement shall be made by written amendment to the

Agreement, mutually agreed to and signed by both parties.

10. Required Proposal ContentAll participating Consultants are requested to provide the following information in their response.

(a) A Title page showing the firms name; the name, address and telephone number of the

contact person; and the date of the proposal.


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(b) A signed letter of transmittal briefly stating that the firm submitting the proposal a.) is

properly licensed to practice in California (including all of the assigned professional staff

to the engagement); b.) agrees to perform all of the work outlined in the City's RFP

within the time periods established by the City and c.) understands that the firm's

proposal is a firm and irrevocable offer through at least August 31, 2011. The letter must

contain a certification that the person signing the proposal is entitled to represent the

firm, empowered to submit the bid, and authorized to sign a contract with the City.

(c) The audit approach and methodology to be used to perform the services (either GAAS

or GAGAS). This may include a discussion of the approach to selection of sample size,

use of specialized software, analytical procedures, approach to internal control structure,

approach to determining laws/regulations subject to audit test work, identification of any

anticipated problems or special assistance required from City Staff, and the format of the

report.

(d) A report on its most recent external quality review, any findings discovered as part of

that review and actions taken to correct those findings. The firm also must disclose

information on the circumstances and status of any disciplinary action taken or pending

against the firm during the past three (3) years with state regulatory bodies or

professional organizations, as well as any pending or settled litigation within the past

three (3) years.

(e) Provide a description of the size of the firm's governmental staff and the firm's

experience with cities of a similar nature and scope. Emphasis should be placed on

assignments undertaken within the past three years and on engagements undertaken by

the personnel proposed to be assigned to this agreement.

(f) Identify all personnel who will be assigned to work on this project and the firms office in

which they are each located. Include resumes or brief summaries of their background

(including if they hold a current CPA license) and experience in auditing cities as well as

their assigned responsibilities under the proposal.

(g) An affirmative statement that engagement partners, managers, other supervisory staff

and specialists may be changed if those personnel leave the firm, are promoted or are

assigned to another office. These personnel may also be changed for other reasons

only with the express prior written permission of the City. However, in either case, theCity retains the right to approve or reject replacements. Other audit personnel may be

changed at the discretion of the firm submitting the proposal, provided that replacements

have substantially the same or better qualifications or experience.


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(h) Provide an indication of the time required for the completion of each major phase of the

audit. Any assumptions regarding turnaround time for City Staff or City Council review

should be clearly noted. Also provide a calendar as to when the firm will commit to

completing work described in this proposal. Please note that Auditor is responsible for

identifying required review times for City input and must account for printing and

distribution within any timelines identified in the Scope of Work.

(i) Provide a listing of all cities for which the firm has performed audits during the last three

years.

(j) Provide three references for your most representative projects including the following:

A. Name of Public Agency

B. Name and Title of contact person

C. Telephone Number of contact person

D. Size of General Fund Budget for the year most recently auditedE. Size of Agency Finance Department Staff

F. Brief description of the scope of the audit performed

(k) Indicate the cost of providing the services outlined in Section 5, including an hourly fee

quotation for all positions to be assigned. Identify an estimate of any reimbursable,

ancillary, or non-direct costs, which would be applicable to the completion of the work.

Identify proposed method of adjustment, if any, in the cost of services through

subsequent years of the engagement. The cost worksheet provided as Exhibit C may be

used to outline these costs; however, the proposal does not need to include this

worksheet if the Auditor has a comparable or superior cost sheet to provide.

(l) Hard copies of the proposal should be prepared on standard 8 x 11 letter size,

recycled paper, printed double-sided and bound on the long side.

All proposals, with the exception of Item 9 below, will be scored on a 100 point scale. The

following represent the principal selection criteria which will be considered during the evaluation

process.

(a) Experience The firm and the performing Auditors recent experience (within the last

five years) in governmental auditing of cities in the State of California.

(b) Peer Review The firm is requested to submit a copy of its most recent peer review with

a statement whether the review included an examination of specific government

engagements. The firm shall state whether it has been the subject of any disciplinary

action within the last three years, or if any such action is pending by state regulatory


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bodies or professional organizations. If such conditions exist, information is to be

provided as to the circumstances and status of the disciplinary action.

(c) Education- The qualifications of personnel who will be actually working on and

coordinating the audit, including the firms on-going efforts to keep its staff current and

knowledgeable in governmental accounting practices.

(d) ReferencesThe firms general experience and reputation in the local government

auditing/accounting field. Please include a minimum of three references.

(e) Personnel Policies The firms demonstrated interest in maintaining continuity of

auditing staff assigned to clients over time.

(f) Price Provide a price breakdown for each of the functions and reports the Auditor

proposes to perform, inclusive of the tasks previously listed in the Scope of Service.

(g) Indemnification Auditor has the professional skills necessary to perform the work

agreed to be performed. Acceptance by the City of Lakeport of the work performed does

not operate as a release of said Auditing Firm from such professional responsibility. The

Auditor shall indemnify the City of Lakpeport and its agents from any personal injury,

property damage, violation of any law or ordinance or other cause in connections with

the activities of Auditing Firm and/or its agents.

(h) Agreement The consultant selected will be required to enter into a Professional

Services Agreement with the City. A sample agreement is included.

(i) Local Vendor PreferenceThe Lakeport City Council has adopted a local vendor

preference policy for the procurement of goods and services. All proposals will be

scored on a 100 point scale regardless of an Auditors business location; however, local

Auditorsthose will locations within City limits or the Citys Sphere of Influence shall

be entitled to an extra 10 points, giving them a total possible of 110 points.

If necessary, the City may hold interviews with the three firms receiving the three highest

scores. The interviews will be conducted with the Consultant Selection Board (CSB)

comprised of the City Manager, Redevelopment Director, Utilities Director (water and sewer),

and the Finance Manager. The format of the interview will be a ten minute period for the firm to

present their objectives for the project and to introduce their staff. The opening presentation isexpected to be informal and attended by those staff members that will be directly involved in the

project. The interview process is to allow a two way communication for the firms approach to

the project and any clarifications required by the CSB.


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Exhibit A - List of Initial Known Independent Audit Firms

COMPANY NAME ADDRESS CITY

STAT

E ZIP

CONTACT

PERSON

Moss, Levy & Hartzhelm 9107 Wilshire Blvd, Ste 320 Beverly Hills CA 90210 R. Moss, CPA

Lance, Soll & Lunghard, LLP 203 North Brea Blvd., Ste. 203 Brea CA 92821 Donald Parker

Pehling and Pehling, CPAs 2888 Marina View Drive Kelseyville CA 95451

Carpenter and Carpenter,CPAs 00 N Main St # C Lakeport CA 95453

Gary Moran, CPA 140 9th Street Lakeport CA 95453

Lynn Dodson, CPA 401 North Main Street Lakeport CA 95453

Peggy Campbell, CPA 401 N. Main Street Lakeport CA 95453

Robertson and Associates 55 1st St # G Lakeport CA 95453

Davis Hammon & Co. 2080 Myers St Oroville CA 95966

Nicholson & Olson 729 Sunrise Ave. Ste 103 Roseville CA 95661

GILBERT ASSOCIATES,INC.

2880 Gateway Oaks Dr, Ste100 Sacramento

CA 95833 Peggy VandeVooren

Macias Gini & O'Connell LLP 3000 S St Ste 300 Sacramento CA95816-7014

Mann, Urreutia, Nelson,CPA's

2515 Venture Oaks Way, Ste135 Sacramento CA 95833 Michelle Nelson

Marcello & Company, CPAs 2701 Cottage Way, Suite 30 Sacramento CA 95821 Ralph Marcello

Richardson & Co. CPA 550 Howe Ave. Ste 210 Sacramento CA 95825

Oum & Company, LLP 465 California St., 7th Flr.SanFrancisco

CA 94104S. Miller

RJ Ricciardi INC, CPA 1000 Fourth Street, Suite 400 San Rafael CA 94901 Michael O'Conner

Moss Adams, LLP

3700 Old Redwood Hwy, Ste

200 Santa Rosa

CA 95403

Derek Rampone

Pisenti & Brinker, LLP3550 Round Barn Blvd, Ste100 Santa Rosa

CA 95403B. Robotham

Terry Krieg, CPA 50 Old Courthouse Sq. #603 Santa Rosa CA 95404
http://www.calcpa.org/MemberNet/Members/FirmProfile.aspx?FirmID=68638http://www.calcpa.org/MemberNet/Members/FirmProfile.aspx?FirmID=68638


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Rev. Date 12.2009

Exhibit B Standard Professional Services Agreement

AGREEMENT FOR SERVICES

withVENDOR NAME

regardingSERVICES

THIS AGREEMENT ("Agreement") made and entered into this 2nd day of November 2009, isbetween the City of Lakeport, a general law city in the State of California (hereinafter referred toas "City") and __________________, duly qualified to conduct business in California, whoseprincipal place of business is _________________________ (hereinafter referred to as"Consultant").

WITNESSETH

WHEREAS, City has determined that is necessary to obtain Consultant to provide_______________;and

WHEREAS, Consultant has represented to City that it is specially trained, experienced, expert,and competent to perform the special services required hereunder, and City has determined torely upon such representations; andWHEREAS, it is the intent of the parties hereto that such services be in conformity with allapplicable federal, state, and local laws; and

WHEREAS, City has determined that the provisions of such services provided by Consultantare in the public's best interest and are more economically and feasibly performed by outsideindependent consultants.

NOW, THEREFORE, City and Consultant mutually agree as follows:


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Rev..Date: 12. 2009 P a g e | 12

AGREEMENT

INCORPORATION OF RECITALS. The recitals set forth above, and all defined terms set forth

in such recitals and in the introductory paragraph preceding the recitals, are hereby incorporated

into this Agreement as if set forth herein in full.


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Rev..Date: 12. 2009 P a g e | 13

1. SCOPE OF SERVICES.

Services to be Furnished. Subject to such policy direction and approvals as City through its staff

may determine from time to time, Consultant shall perform the services set forth in Exhibit A,

attached hereto and incorporated herein by reference.

Schedule for Performance. Consultant shall perform the services identified in E

110111 lakeport city council - consent agenda

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