Title
Recommendation to Authorize the City Manager to Execute a Second Amendment to the Agreement with Kevin Harper CPA and Associates, in an Amount Not to Exceed $25,000 for a Total Compensation Not to Exceed $99,499, and to Extend the Contract to October 31, 2021, for Financial Services in the Finance Department. (Finance 2410)
Body
To: Honorable Mayor and Members of the City Council
EXECUTIVE SUMMARY
After the resignation of the City’s Finance Director, in March 2020, the City of Alameda (City) retained Kevin Harper CPA and Associates (Kevin Harper) to provide consulting services in an amount not to exceed $74,499. The proposed amendment will extend the contract for an additional eight months and increase the compensation by an additional $25,000, for a not to exceed amount of $99,499.
BACKGROUND
After the resignation of the City’s Finance Director in March of 2020, the City retained Kevin Harper to provide financial support to the City’s Finance department in an amount not to exceed $74,499. Kevin Harper has assigned retired Finance Director, Olivier Flewellen, to lead the work with the City. While the City has hired a new Finance Director, Annie To, the Finance Department continues to need additional support during the implementation of the Enterprise Resource Planning system (ERP) and to ensure the department is timely in meeting financial reporting requirements.
DISCUSSION
The City contracted with Kevin Harper to provide support and direction to the Finance Department in the absence of a Finance Director. While the City has now filled this position, there are a number of areas on which Kevin Harper is working with the City that will require continued focus. This additional assistance from Kevin Harper will allow the Finance Director to focus on completing the implementation of the new ERP.
Under the Agreement as amended, there are two primary areas in which Kevin Harper will be providing support to the City:
• Completion of the Fiscal Year (FY) 2019-2020 Year-End Activities - Kevin Harper is assisting the City in preparing to close FY 2019-20. It is important this work be completed in a timely manner so the City is prepared to close FY 2019-20;
• Preparation and Completion of the Final Audit - Because of staff shortages the City has been unable to finalize required audits within the desired time-frames. The goal is to ensure all audits requirements are met in a timely manner; and
• Technical Accounting Support - The Finance Department has several new accounting staff. The consultant will assist with training the new staff.
FINANCIAL IMPACT
This amendment will increase the cost of the agreement by $50,500. The Finance Department has sufficient funding in its budget to cover this additional cost.
|
Contract |
Contract Approval Date |
Authorized Amount |
|
Original Contract |
04/16/2020 |
$ 50,000 |
|
1st Amendment |
11/03/2020 |
$ 24,499 |
|
2nd Amendment |
Pending |
$ 25,000 |
|
Total |
|
$ 99,499 |
ALTERNATIVES
• Approve the recommended Amendment to the Agreement
• Approve an Amendment to the Agreement but for a lesser amount or term
• Do not approve the Amendment to the Agreement
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
ENVIRONMENTAL REVIEW
This activity is not a project under California Environmental Quality Act (CEQA) and is therefore exempt pursuant to section 15378(b)(4) of the CEQA Guidelines, (governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment is not a project).
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Authorize the City Manager to execute an Amendment to the Agreement with Kevin Harper CPA and Associates, Inc., in an amount not to exceed $25,000, for a total compensation not to exceed $99,499, and to extend the contract to October 31, 2021, for financial services in the Finance Department.
CITY MANAGER RECOMMENDATION
The City Manager concurs with the staff recommendation to authorize a $25,000 amendment for an amount not to exceed $99,499 with Kevin Harper CPA and Associates.
Respectfully submitted,
Annie To, Finance Director
Exhibits:
1. Original Contract
2. First Amendment
3. Second Amendment
cc: Eric Levitt, City Manager