04-16-19 - Item 10 - Consideration of Approval of Amendment of Financial Consultant Services Agreement (VTD)AGENDA ITEM NO. 10
AGENDA STAFF REPORT
City of West Covina | Office of the City Manager
DATE:April 16, 2019
TO:Mayor and City Council
FROM:David Carmany
Interim City Manager
SUBJECT:CONSIDERATION OF APPROVAL OF AMENDMENT OF FINANCIAL
CONSULTANT SERVICES AGREEMENT (VTD)
RECOMMENDATION:
It is recommended that the City Council authorize the Interim City Manager to execute the Third
Amendment to the Professional Services Agreement with Vavrinek, Trine, Day & Co., LLP.
BACKGROUND:
This item was carried over from the April 2, 2019 City Council Meeting.
DISCUSSION:
The City of West Covina has experienced significant turnover in the Finance Department over the
last few years, and consulting services are essential to being able to provide segregation of duties to
ensure adequate controls in financial operations of the City. City staff has an excellent rapport with
the consultants from VTD, and as positions are once again vacant in the Finance Department, it
would be a hardship to go through the RFP process to procure services from another vendor at this
time. Consultants from this firm have been working with the City since July 3, 2018, and as such
have more historical knowledge than many of the full-time employees and subsequently have been
training many of the newer employees as well.
Since last year's budget process, the City has lost one accounting manager, two accountants, a senior
level management analyst and transitioned through two Finance Directors and two Interim Finance
Directors. In addition, the majority of Finance Department staff has less than two years of
experience in West Covina and/or city government. Currently, there is a vacant Accounting
Technician and a vacant permament Finance Director position.
The VTD agreement includes two senior level consultants at 32 hours per week each. One
consultant handles accounting duties, and training and support of accounting staff. Without
consultant services for the Finance Department, staff cannot complete necessary accounting duties to
ensure operations continue. In addition, the City's Fiscal Year 2019-20 Budget will not be
completed before June 30, 2019, if a consultant's services are not utilized.
OPTIONS:
The City Council has the following options:
1.Approve staff's recommendation; or
2.Provide alternative direction.
Prepared by: Nikole Bresciani, Assistant City Manager/Public Services Director
Additional Approval: Robbeyn Bird, Interim Finance Director
Fiscal Impact
FISCAL IMPACT:
Approval of the third amendment with VTD for financial consultant services requires an
appropriation from General Fund fund balance in the amount of $100,000 for Fiscal Year 2018-19,
which was done at the April 2, 2019 City Council Meeting through adoption of the budget
amendment, Resolution No. 2019-17. An appropriation during the Fiscal Year 2019-20 Budget
Adoption of $234,000 will need to be made accordingly.
Attachments
Attachment No. 1 - VTD Third Amendment
Attachment No. 2 - VTD Second Amendment
Attachment No. 3 - VTD First Amendment
Attachment No. 4 - Original Agreement VTD