less than the Minimum Acreage. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of the Taxable Property to less than the Minimum Acreage will continue to be classified as Taxable Property, and will continue to be subject to Special Taxes accordingly.
Tax-exempt status will be assigned by the CFD Administrator in chronological order. If an Assessor's Parcel's classification is changed after the initial status is assigned, then its tax-exempt status will be revoked.
SECTION K
APPEALS
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor's Parcel(s) with the CFD Administrator, provided that the appellant is current in his/her payments of Special Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or before the payment date established when the levy was made. The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD Administrator shall take any of the following actions, in order of priority, in order to correct the error:
(i)
amend the Special Tax levy for the current Fiscal Year prior to the payment date; (ii) require the CFD to reimburse the taxpayer the amount of the overpayment to the extent of the available funds of CFD No. 2016-3; or
(iii) grant a credit against, eliminate or reduce the future Special Taxes levied on the taxpayer's property within CFD No. 2016-3 in the amount of the overpayment provided that the CFD Administrator can certify there are sufficient Special Taxes to pay for the Special Tax Requirements for Facilities.
SECTION L
MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2016-3 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
SECTION M
INTERPRETATIONS
The City Council may interpret this Rate and Method of Apportionment of Special Tax by ordinance or resolution for purposes of clarifying any vagueness or ambiguity. Any decision of the City Council shall be final and binding as to all persons.
4922-7396-4055v9/022599-0037
A -l3
4922-7396-4055v9/022599-0037
68L 1O P8t abed
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING
PROPOSED BOUNDARIES OF COMMUNITY FACILITIES
DISTRICT NO. 2016-3, CITY OF BEAUMONT, COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY
COUNCIL OF THE CITY OF BEAUMONT, RIVERSIDE COUNTY AT A
REGULAR MEETING THEREOF, HELD ON THE _ DAY OF
2016, BY RESOLUTION NO,
CITY CLERK
CITY OF BEAUMONT
FILED IN THE OFFICE OF THE CITY CLERK, CITY OF BEAUMONT, THIS DAY OF 2016
CITY CLERK
CITY OF BEAUMONT
RECORDED THIS DAY OF , 2016
AT THE HOUR OF _ O'CLOCK M IN BOOK
PAGE OF MAPS OF ASSESSMENT AND COMMUNITY
FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY
RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.
FEE', NO.',
PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY',
DEPUTY
VICINITY MAP
(NOT TO SCALE)
LEGEND
TOTS BOL0VDARY MAP CORRECTLY SHOWY Tit BOUNDARIES OF THE WEBBCONAE.,FACILITIES DISTRICT. PARCEL MANBERSARERIVERs➢E COM, ASSESSOR'S PARCEL MASHERS. FOR DETAILS COYCERNMG
s THE LINES AN'] DIMENSIONS OF LOTS Oi PACES PEFE, 10 THE _•-�-•—•�—� •�•��•—• CLLNIY ASSF�ORY hVWS FLF FLSCAL YFAP 2016-2011.
BOUNDARY MAP
COMMUNITY FACILITIES DISTRICT NO. 2016-3
CITY OF BEAUMONT
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
750 1,500 Feet
CFD BOUNDARY
PARCEL LINE
BEAUMONT CITYBOUNDARY
xRx xR-xxx ASSESSOR'S PAOCELNUMBER
SHEET 1 OF 1
APPENDIX B
CERTAIN ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING
The 2025 Bonds are not obligations of the City of Beaumont (the "City") or the County of Riverside (the "County") and do not represent a lien or charge against any funds or property of the City or the County.
The following information is provided only to give prospective investors an overview of the general economic condition of the City, the County and the State of California (the "State").
General
The City was incorporated in 1912 under the General Laws of the State. The City is located approximately 78 miles east of Los Angeles and encompasses an area of 30.9 square miles. The City currently has an estimated population of approximately 48,401 persons.
Population
The following table offers population figures for the City, the County and the State as of January 1 for the years 2020 through 2024.
Area 2020 2021 2022 2023 2024
City of Beaumont 53,275 53,920 54,208 56,275 57,416
County of Riverside 2,418,185 2,419,165 2,427,832 2,428,580 2,442,378 State of California 39,538,223 39,327,868 39,114,785 39,061,058 39,128,162 Source: California State Dep artment of Finance, Demographic Research Unit. M arch 2020 Benchmark.
Building Activity
The following tables provide summaries of the building permit valuations and the number of new dwelling units authorized in the City and County from 2019 through 2023.
BUILDING PERMIT VALUATIONS
City of Beaumont
2019-2023
2019 2020 2021 2022 2023
Valuation ($000):
Residential
Non-residential
Total*
Residential Units:
Single family
Multiple family
Total
$159,847 $73,829 $141,171 $159,166 $161,510
30.156 25.559 16448 993 97.862
S190.00i $99,3 38 $157,619 $160,159 $259,372
528 271 494 651 519
0 0 0 0 0
528 271 494 651 519
M ay not foot due to rounding
Source: Construction Industry Research Board.
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BUILDING PERMIT VALUATIONS
County of Riverside
2019-2023
2019 2020 2021 2022 2023
Valuation ($000):
Residential $2,275,405
Non-residential 1.285.856
Total* S3 561 261
Residential Units:
Single family
Multiple family
Total
$2,519,303 $2,262,642 $2,921,113 $3,306,086
1.155.968 1.543.998 1.701.618 1.676.498
$3,675,272 S3 306 640 S4 672 731 SL 982 5SL
6,563 8,443 7,360 8,863 8,894
1.798 723 1.126 2.861 6.428
8,361 9,166 8,486 11,724 15,322
May not foot due to rounding.
Source: Construction Industry Research Board.
Employment
The following table shows the largest employers located in the County as of fiscal year 2023.
LARGEST EMPLOYERS
County of Riverside
2023
Rank Name ofBusiness
1. County of Riverside
2. Amazon
3. March Air Reserve Base
4. Nestle UA
5. University of California, Riverside
6. State of California
7. Wal-Mart
8. Moreno Valley Unified School District
9. Kaiser Permanente Riverside Medical Center
10. Corona -Norco Unified School District
Employees
25,366
14,317
9,600
8,874
8,623
8,383
7,494
6,020
5,817
5,478
Type of Business
County Government
Online Retailer
Military Reserve Base
Food and Beverage Company
University
State Government
Supermarket
School District
Medical Center
School District
Source: County of Riverside Comprehensive Annual Financial Rep ort for the year ending June 30, 2023. 4922-7396-4055v9/022599-0037
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Employment and Industry
Employment data by industry is not separately reported on an annual basis for the City but is compiled for the Riverside -San Bernardino -Ontario Metropolitan Statistical Area (the "MSA"), which includes all of Riverside and San Bernardino Counties. In addition to varied manufacturing employment, the MSA has large and growing commercial and service sector employment, as reflected in the table below.
The following table represents the Annual Average Labor Force and Industry Employment for the County for the period from 2019 through 2023.
RIVERSIDE -SAN BERNARDINO-ONTARIO MSA
INDUSTRY EMPLOYMENT & LABOR FORCE - BY ANNUAL AVERAGE
2019 2020 2021 2022 2023
Civilian Labor Force
Civilian Employment
Civilian Unemployment
Civilian Unemployment Rate
2,071,600 2,091,700 2,120,600 2,148,700 2,171,500
1,987,500 1,885,400 1,964,300 2,058,400 2,068,800
84,000 206,200 156,300 90,200 102,700
4.1% 9.9% 7.4% 4.2% 4.7%
Total Farm 15,400 14,100 13,700 13,800 13,100
Total Nonfarm 1,552,700 1,495,800 1,575,100 1,659,800 1,679,800 Total Private 1,291,500 1,247,800 1,333,100 1,409,800 1,418,900 Goods Producing 209,700 202,200 207,700 216,300 216,100 Mining and Logging 1,200 1,300 1,400 1,500 1,500
Construction 107,200 104,900 110,100 114,700 115,700
Manufacturing 101,300 96,000 96,100 100,000 98,900
Service Providing 1,343,000 1,293,700 1,367,400 1,443,500 1,463,700 Trade, Transportation and Utilities 395,100 406,900 443,200 464,900 456,500 Wholesale Trade 67,700 65,600 67,400 69,500 68,700
Retail Trade 180,700 168,800 177,000 181,000 182,700
Transportation, Warehousing and Utilities 146,600 172,500 198,800 214,400 205,100 Information 14,100 12,400 12,500 13,000 13,300
Financial Activities 45,000 44,100 45,200 46,000 44,900 Professional and Business Services 155,300 152,100 166,600 173,900 164,800 Educational and Health Services 250,300 248,800 254,300 267,500 287,500 Leisure and Hospitality 175,900 141,300 160,200 180,900 186,500 Other Services 46,200 40,200 43,600 47,400 49,300
Government 261.200 248.000 242.000 250.000 260.900
Total, All Industries 1,568,100 1,509,900 1,588,800 1,673,500 1,692,900 Note: Does not include pmprietors, self-employed, unpaid volunteers or family workers, domestic workers in households and persons involved in labor-management trade disputes. Employment reported by place ofwork. Items may not add to total due to independent rounding The "Total, All Industries" data is not directly comparable to the employment data found in this Appendix C.
Source: State of California, Employment Development Department, March 2023 Benchmark. 4922-7396-4055v9/022599-0037
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The following table summarizes the labor force, employment and unemployment figures for the period from 2019 through 2023 for the City, the County, the State and the nation as a whole.
CITY OF BEAUMONT,
COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA AND UNITED STATES
Average Annual Civilian Labor Force, Employment and Unemployment Year and Area Labor Force
2019
Beaumont 23,700
Riverside County 1,108,100
State of California 19,409,400
United States 163,539,000
2020
Beaumont 23,900
Riverside County 1,121,100
State of California 18,931,100
United States 160,742,000
2021
Beaumont 24,200
Riverside County 1,130,500
State of California 18,923,200
United States 161,204,000
2022
Beaumont 24,600
Riverside County 1,145,700
State of California 19,398,200
United States 162,075,000
2023
Beaumont 24,900
Riverside County 1,157,900
State of California 19,308,300
United States 167,116,000
(1)
(2)
(3)
Employment")
23,000
1,061,500
18,612,600
157,538,000
21,800
1,008,000
16,996,700
147,795,000
22,700
1,047,700
17,541,900
152,581,000
23,700
1,097,200
18,582,800
155,761,000
23,900
1,102,300
18,388,300
158,772,000
Unemployment
Unemployment(2) Rate (%)(3)
800
46,600
796,800
6,001,000
2,100
113,000
1,934,500
12,947,000
1,500
82,800
1,381,200
8,623,000
800
48,500
815,400
6,314,000
1,000
55,600
920,000
6,080,000
3.2%
4.2 4.1
3.7 8.8%
10.1 10.2
8.1 6.3%
7.3 7.3
5.3 3.4%
4.2 4.2
3.9 4.0%
4.8 4.8
3.6 Includes persons involved in labor-management trade disputes.
Includes all persons without jobs who are actively seeking work.
The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table.
Source: California Employment Development Department, March 2023 Benchmark and U.S. Department of Labor, Bureau of Labor Statistics.
Personal Income
Personal Income is the income that is received by all persons from all sources. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation and capital consumption adjustments, rental income of persons with capital consumption adjustment, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance.
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The personal income of an area is the income that is received by, or on behalf of, all the individuals who live in the area; therefore, the estimates of personal income are presented by the place of residence of the income recipients.
Total personal income in Riverside County increased by 27.50% between 2019 and 2023. The following tables summarize personal income for Riverside County for 2019 through 2023.
PERSONAL INCOME
Riverside County
2019-2023
(Dollars in Thousands)
Annual
Year Riverside County Percent Change
2019 $104,647,288
2020 115,370,344
2021 126,493,256
2022 126,174,731
2023 133,968,557
N/A
10.25%
9.64 (0.25)
6.18 Source: U.S. Bureau of Economic Analysis, "CAINC1 County and M SA personal income summary: personal income, population, per capita personal income" (accessed Friday, February 14, 2025).
The following table summarizes per capita personal income for Riverside County, California and the United States for 2019-2023. This measure of income is calculated as the personal income of the residents of the area divided by the resident population of the area.
PER CAPITA PERSONAL INCOME
2019 through 2023
Riverside County, State of California and United States Year Riverside County State of California United States 2019
2020
2021
2022
2023
43,086
47,615
51,558
50,995
53,750
64,219
70,098
76,882
76,941
81,255
55,566
59,123
64,460
66,244
69,810
Note: Per capita personal income was computed using Census Bureau midyear population estimates. Estimates for 2019-2023 reflect county population estimates available as of March 2020.
Source: U.S. Bureau of Economic Analy sis, "CAINC1 County and M SA personal income summary : p ersonal income, population, per capita personal income" (accessed Friday, February 14, 2025). 4922-7396-4055v9/022599-0037
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Taxable Sales
The table below presents taxable sales for the years 2019 through 2023 for the City.
TAXABLE SALES
City of Beaumont
2019-2023
(Dollars in Thousands)
Year
2019
2020
2021
2022
2023
Permits Taxable Transactions
1,441
1,543
1,336
1,475
1,605
475,414
616,039
1,229,150
2,472,075
2,321,599
Source: Sales in California, California Department of Tax and Fee Administration for 2019-2023.
The table below presents taxable sales for the years 2019 through 2023 for the County.
Year
TAXABLE SALES
County of Riverside
2019-2023
(Dollars in Thousands)
Permits Taxable Transactions
2019 64,063
2020 69,284
2021 64,335
2022 66,738
2023 68,670
$40,626,998
42,313,474
55,535,196
62,117,153
61,094,594
Source: Taxable Sales in California, California Department of Tax and Fee Administration for 2019-2023. 4922-7396-4055v9/022599-0037
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APPENDIX C
FORM OF OPINION OF BOND COUNSEL
Upon issuance of the 2025 Bonds, Stradling Yocca Carlson & Rauth LLP, Bond Counsel, proposes to render its final approving opinion in substantially the following form:
[Closing Date]
City of Beaumont
City of Beaumont Community Facilities District No. 2016-3 (Sundance) Beaumont, California
Re: $ City of Beaumont Community Facilities District No. 2016-3 (Sundance) 2025 Special Tax Bonds
Ladies and Gentlemen:
We have examined the Constitution and the laws of the State of California, a certified record of the proc eedings of the City of Beaumont (the "City") taken in connection with the formation of the City of Beaumont Community Facilities District No. 2016-3 (the "District") and the authorization and issuance of the District's 2025 Special Tax Bonds in the aggregate principal amount of $ (the "Bonds") and such other information and documents as we consider necessary to render this opinion. In rendering this opinion, we have relied upon certain representations of fact and certifications made by the District, the City, the initial purchasers of the Bonds and others. We have not undertaken to verify through independent investigation the accuracy of the representations and certifications relied upon by us.
The Bonds have been issued pursuant to the Mello -Roos Community Facilities Act of 1982, as amended (comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California), a resolution adopted by the City Council of the City, acting in its capacity as the legislative body of the District (the "City Council") on , 2025 (the "Resolution"), and a Bond Indenture (the "Indenture") dated as of May 1, 2023, as amended and supplemented by that certain First Supplement to Bond Indenture, dated as of 1, 2025 (collectively, the "Indenture"), by and between the District and Zions Bancorporation, National Association, as successor trustee (the"Trustee"). All capitalized terms not defined herein shall have the meaning set forth in the Indenture.
Based upon our examination of the foregoing, and in reliance thereon and on all matters of fact as we deem relevant under the circumstances, and upon consideration of applicable laws, we are of the opinion that:
(1) The Bonds have been duly and validly authorized by the District and are legal, valid and binding limited obligations of the District, enforceable in accordance with their terms and the terms of the Indenture.
The Bonds are limited obligations of the District but are not a debt of the City, the State of California or any other political subdivision thereof within the meaning of any constitutional or statutory limitation, and, except for the Net Taxes, neither the faith and credit nor the taxing power of the City, the State of California, or any of its political subdivisions is pledged for the payment thereof. (2) The Indenture has been duly executed and delivered by the District. The Indenture creates a valid pledge of, and the Bonds are secured by, the Net Taxes and the amounts on deposit in certain funds and accounts established under the Indenture, as and to the extent provided in the Indenture. The Indenture is enforceable in accordance with its terms; provided, however, we express no opinion as to the enforceability of the covenant of the District contained in the Indenture to levy Special Taxes for the payment of Administrative C-1
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Expenses or as to indemnification, penalty, contribution, choice of law, choice of forum or w aiver provisions contained therein.
(3) Under existing statutes, regulations, rulings and judicial decisions, interest (and original issue discount) on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of calculating the federal alternative minimum tax imposed on individuals; however, it should be noted that, with respect to applicable corporations as defined in Section 59(k) of the Internal Revenue Code of 1986, as amended (the "Code"), interest (and original issue discount) with respect to the Bonds might be taken into account in determining adjusted financial statement income for purposes of computing the alternative minimum tax imposed on such corporations.
(4) Interest (and original issue discount) on the Bonds is exempt from State of California personal income tax.
(5) The difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of a maturity are to be sold to the public) and the stated redemption price at maturity with respect to such Bond constitutes original issue discount. Original issue discount accrues under a constant yield method, and original issue discount will accrue to a Bond Owner before receipt of cash attributable to suc h excludable income. The amount of original issue discount deemed received by a Bond Owner will increase the Bond Owner's basis in the applicable Bond.
(6) The amount by which a Bond Owner's original basis for determining loss on sale or exchange in the applicable Bond (generally the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable Bond premium which must be amortized under Section 171 of the Code; such amortizable Bond premium reduces the Bond Owner's basis in the applicable Bond (and the amount of tax- exempt interest received), and is not deductible for federal income tax purposes. The basis reduction as a result of the amortization of Bond premium may result in a Bond Owner realizing a taxable gain when a Bond is sold by the Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Owner.
The opinions expressed in paragraphs (3) and (5) above as to the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on the Bonds is subject to the condition that the District and the City comply with all requirements of the Code, that must be satisfied subsequent to the issuance of the Bonds to assure that such interest (and original issue discount) will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements of the Code might cause interest (and original issue discount) on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The District and the City have covenanted to comply with all such requirements. Except as set forth in paragraphs (3), (4), (5) and (6) above, we express no opinion as to any tax consequences related to the Bonds.
Certain agreements, requirements and procedures contained or referred to in the Indenture, the Tax Certificate executed by the District and the City and other documents related to the Bonds may be changed and certain actions may be taken or omitted, under the circumstances and subject to the terms and conditions set forth in such documents. We express no opinion as to the effect on the exclusion from gross income for federal income tax purposes of interest (and original issue discount) on any Bond if any such change occurs or action is taken or omitted upon advice or approval of bond counsel other than Stradling Yocca Carlson & Rauth LLP.
Our opinion is limited to matters governed by the laws of the State of California and federal law. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. We call attention to the fact that the rights and obligations under the Bonds, the Indenture and the Tax Certificate may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, by the application of equitable principles and the exercise of C-2
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judicial discretion in appropriate cases and by the limitations on legal remedies against public agencies in the State of California.
We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and expressly disclaim any duty to advise the Owners of the Bonds with respect to matters contained in the Official Statement or other offering material.
The opinions expressed herein are based upon an analysis of existing statutes, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities. Such opinions may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether such actions or events are taken (or not taken) or do occur (or do not occur).
Respectfully submitted,
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APPENDIX D
APPRAISAL REPORT
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APPENDIX E
SUMMARY OF THE INDENTURE
The following is a summary of certain provisions of the Indenture which are not described elsewhere.
This summary does not purport to be comprehensive and reference should be made to the Indenture for a full and complete statement of the provisions thereof.
DEFINITIONS
E-1
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APPENDIX F
FORM OF DISTRICT CONTINUING DISCLOSURE CERTIFICATE
THIS CONTINUING DISCLOSURE CERTIFICATE (this "Disclosure Certificate") dated as of 1, 2025 is executed and delivered by the City of Beaumont Community Facilities District No. 2016-3 (the "District") in connection with the issuance and delivery by the District of its $ 2025 Special Tax Bonds, (the "Bonds"). The Bonds are being issued pursuant to a Resolution of Issuance adopted on , 2025, by the City Council of the City of Beaumont, acting as the legislative body of the District, and the Bond Indenture, dated as of May 1, 2023, as amended and supplemented by that certain First Supplement to Bond Indenture, dated as of 1, 2025 (collectively, the "Indenture"), by and between the District and Zions Bancorporation, National Association, as successor trustee. The District covenants as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the District for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Indenture and the Rate and Method of Apportionment, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings:
"Annual Report" shall mean any Annual Report provided by the District pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income purposes.
"City" shall mean the City of Beaumont, County of Riverside, California. "Disclosure Representative" shall mean the City Manager of the City, or his or her designee, or such other officer or employee as the District shall designate in writing to the Dissemination Agent from time to time. "Dissemination Agent" shall mean, initially, Spicer Consulting Group, LLC, or any successor Dissemination Agent designated in writing by the District and which has filed with the then current Dissemination Agent a written acceptance of such designation. "District" shall mean the City of Beaumont Community Facilities District No. 2016-3 (Sundance). "EMMA" shall mean the Electronic Municipal Market Access System of the Municipal Securities Rulemaking Board, which can be found at www.emma.msrb.org , or any other repository of disclosure information that may be designated by the Securities and Exchange Commission in the future system of the MSRB.
"Financial Obligation" means a (i) debt obligation; (ii) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (iii) guarantee of (i) or (ii). The term Financial Obligation shall not include municipal securities as to which a final official statement has been provided to the MSRB consistent with the Rule. "Listed Events" shall mean any of the events listed in Section 5 of this Disclosure Certificate.
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"MSRB" shall mean the Municipal Securities Rulemaking Board or any other entity designated or authorized by the Securities and Exchange Commission to receive reports pursuant to the Rule. Until otherwise designated by the MSRB or the Securities and Exchange Commission, filings with the MSRB are to be made through the Electronic Municipal Market Access (EMMA) website of the MSRB, currently located at http://emma.msrb.org .
"Official Statement" shall mean that certain Official Statement for the Bonds dated , 2025. "Owners" shall mean the registered owners of the Bonds as set forth in the registration books maintained by the Trustee.
"Participating Underwriter" shall mean Stifel, Nicolaus & Company, Incorporated. "Rate and Method of Apportionment" shall mean that certain Rate and Method of Apportionment of Special Tax approved pursuant to the Resolution of Formation. "Resolution of Formation" shall mean the resolutions adopted by the City Council pursuant to which the City Council formed the District.
"Rule" shall mean Rule 15c2 -12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of California.
"Trustee" shall mean Zions Bancorporation, National Association or such other entity appointed by the District pursuant to the Indenture to act as the trustee under the Indenture.
Section 3. Provision of Annual Reports.
(a) Not later than February 10 of each year commencing February 10, 2026, the District shall, or shall cause the Dissemination Agent to provide to EMMA an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. If the Dissemination Agent is other than the District, then not later than 15 business days prior to the date referred to in the prior sentence hereof, the District shall provide the Annual Report (in a form suitable for filing with EMMA) to the Dissemination Agent. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the District, if any exist, may be submitted separately from and later than the balance of the Annual Report if they are not available by the date required above for the filing of the Annual Report. (b) In the event that the Dissemination Agent is an entity other than the District, then the provisions of this Section 3(b) shall apply. Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report, the District shall provide the Annual Report to the Dissemination Agent. If by fifteen (15) Business Days prior to the due date for an Annual Report the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the District to determine if the District will be filing the Annual Report in compliance with subsection (a). The District shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by it hereunder. The Dissemination Agent may conclusively rely upon such certification of the District and shall have no duty or obligation to review such Annual Report.
(c) If the Dissemination Agent is other than the District and if the Dissemination Agent is unable to verify that an Annual Report has been provided to EMMA by the date required in subsection (a), the Dissemination Agent shall send, in a timely manner, a notice to EMMA of the failure to file the Annual Report F-2
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in the form required by EMMA. If the District acts as its own Dissemination Agent, it shall file a notice with EMMA no later than the date specified in subsection (a) for filing an Annual Report if the District fails to file the Annual Report by that date.
(d) If the Dissemination Agent is other than the District, the Dissemination Agent shall:
(i) determine each year prior to the date for providing the Annual Report the name and address of the repository if other than the MSRB through EMMA; and (ii) promptly after receipt of the Annual Report, file a report with the District certifying that the Annual Report has been provided to EMMA and the date it was provided. (e) Notwithstanding any other provision of this Disclosure Certificate, all filings shall be made in accordance with the MSRB's EMMA system or in another manner approved under the Rule.
Section 4. Content of Annual Reports. The District's Annual Report shall contain or include by reference the following:
(a) Financial Statements. The audited financial statements of the District for the prior fiscal year, if any have been prepared and which, if prepared, shall be prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the District's audited financial statements, if any are prepared, are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available.
(b) Financial and Operating Data. The Annual Report shall contain or incorporate by reference the following information:
(i) the principal amount of the Bonds outstanding as of the September 2 preceding the filing of the Annual Report;
(ii) the balance in each fund under the Indenture as of the September 2 preceding the filing of the Annual Report;
(iii) the aggregate assessed valuation of the Taxable Property within the District; (iv) any changes to the Rate and Method of Apportionment of Special Tax for the District approved or submitted to the qualified electors for approval prior to the filing of the Annual Report; (v) a table setting forth the annual Special Tax delinquency rate within the District at June 30 of each fiscal year for which a delinquency exists, listing for each fiscal year, the total Special Tax levy, the amount delinquent and the percent delinquent; (vi) an update of the value -to -lien of the property within the District based on the assessed value and the Special Tax levy for the then current fiscal year, which update may be provided in a form simi ar to Table 2 in the Official Statement; provided that such update need not include overlapping special tax, assessment or general obligation indebtedness; and (vii) the status of any foreclosure actions being pursued by the District with respect to delinquent Special Taxes within the District.
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(c) Any or all of the items listed in (a) or (b) above may be included by specific reference to other documents, including official statements of debt issues of the District or related public entities, which have been submitted to EMMA or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the MSRB through EMMA. The District shall clearly identify each such other document so included by reference.
Section 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5, the District shall give, or cause the Dissemination Agent to give, notice to EMMA in a timely manner not in excess of ten (10) business days after the occurrence of any of the following events with respect to the Bonds:
1. principal and interest payment delinquencies;
2. unscheduled draws on debt service reserves reflecting fmancial difficulties;
3. unscheduled draws on credit enhancements reflecting financial difficulties;
4. substitution of credit or liquidity providers, or their failure to perform;
5. adverse tax opinions or the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds;
6. defeasances;
7. tender offers;
8. ratings changes; and
9. bankruptcy, insolvency, receivership or similar proceedings.
Note: for the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person.
10. default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the obligated person, any of which reflect financial difficulties.
(b) Additionally, the District shall give or cause the Dissemination Agent to give notice to EMMA in a timely manner not in excess of ten (10) business days after the occurrence of any of the following events with respect to the Bonds, if material:
1. mergers, consolidations, acquisitions, the sale of all or substantially all of the assets of the obligated persons or their termination;
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2. appointment of a successor or additional fiscal agent or the change of the name of a fiscal agent;
3. nonpayment related defaults;
4. modifications to the rights of Bondholders;
5. bond calls;
6. release, substitution or sale of property securing repayment of the Bonds; and
7. incurrence of a Financial Obligation of the obligated person, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the obligated person, any of which affect security holders. (c) In the event that the District's fiscal year changes, the District shall report or shall instruct the Dissemination Agent to report such change in the same manner and to the same parties as Listed Events would be reported pursuant to this Section.
(d) The District hereby agrees that the undertaking set forth in this Disclosure Certificate is the responsibility of the District, and the Dissemination Agent, if other than the District, shall not be responsible for determining whether the District's instructions to the Dissemination Agent under this Section comply with the requirements of the Rule.
Section 6. Termination of Reporting Obligation. The obligations of the District and the Dissemination Agent under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the District shall give notice of such termination in the same manner as for a Listed Event under Section 5.
Section 7. Dissemination Agent. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent, if other than the District, shall not be responsible in any manner for the content of any notice or report prepared by the District pursuant to this Disclosure Certificate. The initial Dissemination Agent shall be Spicer Consulting Group, LLC. The Dissemination Agent may resign by providing (i) thirty (30) days written notice to the District and the Trustee and (ii) upon appointment of a new Dissemination Agent hereunder.
Section 8. Amendment; Waiver.
(a) This Disclosure Certificate may be amended, by written agreement of the parties, without the consent of the Owners, and any provision of this Disclosure Certificate may be waived, if all of the following conditions are satisfied: (1) such amendment or waiver is made in connection with a change in circumstances that arises from a change in legal (including regulatory) requirements, a change in law, or a change in the identity, nature or status of the District or the type of business conducted thereby, (2) the undertakings in this Disclosure Certificate as so amended or waived would, in the opinion of a nationally recognized bond counsel, have complied with the requirements of the Rule as of the date of this Disclosure Certificate, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances, and (3) the amendment or waiver either (i) is approved by the Owners of the Bonds in the same manner as provided in the Indenture for amendments to the Indenture with the consent of Owners or (ii) does not, in the determination of the District, materially impair the interests of the Owners or Beneficial Owners of the Bonds. (b) To the extent any amendment to this Disclosure Certificate results in a change in the type of financial information or operating data provided pursuant to this Disclosure Certificate, the first Annual Report F-5
4922-7396-4055v9/022599-0037
provided thereafter shall include a narrative explanation of the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. (c) If an amendment is made to the basis on which financial statements are prepared, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. Such comparison shall include a quantitative and, to the extent reasonably feasible, qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the District chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the District shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the District or the Dissemination Agent to comply with any provision of this Disclosure Certificate, any Owner or Beneficial Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the District and/or the Dissemination Agent to comply with their respective obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the District or the Dissemination Agent to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. Where an entity other than the District is acting as the Dissemination Agent, the Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the District agrees to indemnify and save the Dissemination Agent and its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. Any Dissemination Agent shall be paid (i) compensation by the District for its services provided hereunder in accordance with a schedule of fees to be mutually agreed to; and (ii) all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it by the District pursuant to this Disclosure Certificate. The obligations of the District under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific performance of this Disclosure Certificate. The Dissemination Agent shall not be liable under any circumstances for monetary damages to any person for any breach under this Disclosure Certificate.
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Section 12. Notices. Any notices or communications to or among any of the parties to this Disclosure Certificate may be given as follows:
District:
Underwriter:
City of Beaumont Community Facilities District No. 2016-3 (Sundance) City of Beaumont
550 E. Sixth Street
Beaumont, CA 92223
Attn: City Manager
Stifel, Nicolaus & Company, Incorporated
2121 Avenue of the Stars, Suite 2150
Los Angeles, CA 90067
Attn: Public Finance Department
Any person may, by written notice to the other persons listed above, designate a different address or telephone number(s) to which subsequent notice or communications should be sent.
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the District, the Trustee, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 14. Merger. Any person succeeding to all or substantially all ofthe Dissemination Agent's business shall be the successor Dissemination Agent without the filing of any paper or any further act.
This Disclosure Certificate is executed as of the date and year first set forth above.
CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2016-3 (SUNDANCE)
By:
Disclosure Representative
4922-7396-4055v9/022599-0037
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APPENDIX G
BOOK -ENTRY ONLY SYSTEM
The information in this Appendix concerning DTC and DTC's book -entry only system has been obtained from sources that the District and the Underwriter believe to be reliable, but neither the District nor the Underwriter takes any responsibility for the completeness or accuracy thereof. The following description of the procedures and record keeping with respect to beneficial ownership interests in the City of Beaumont Community Facilities District No. 2016-3 (Sundance) 2025 Special Tax Bonds (the "Bonds"), payment of principal, premium, if any, accreted value and interest on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC.
The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds.
The Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such othername as may be requested by an authorized representative of DTC. One fully registered bond will be issued for each annual maturity of the Bonds, each in the aggregate principal amount of such annual maturity, and will be deposited with DTC.
DTC, the world's largest securities depository, is a limited -purpose trust company organized underthe New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants")deposit with DTC. DTC also facilitates the post trade settlement among Direct Participants of sales and other s ecurities trans actions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC systemis also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of "AA+." The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com .
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.
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Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the District or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Trustee, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Bond Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Trustee. The requirement for phy sical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Bonds to the Trustee's DTC account.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the District or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered.
The District may decide to discontinue use of the system of book -entry only transfers through DTC (or a successor securities depository). In that event, bonds will be printed and delivered to DTC.
THE TRUSTh:H, AS LONG AS A BOOK -ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE
OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY
BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE
VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE.
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APPENDIX H
SECURITIES AND EXCHANGE COMMISSION ORDER
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CITY OF BEAUMONT
COMMUNITY FACILITIES DISTRICT NO. 2016-3 (SUNDANCE)
FIRST AMENDMENT TO ACQUISITION AGREEMENT
THIS FIRST AMENDMENT TO ACQUISITION AGREEMENT (the "First Amendment") is entered into effective as of the day of , 2025, by and among the CITY OF BEAUMONT, acting for and on behalf of itself and the CITY OF BEAUMONT COMMUNITY FACILITIES DISTRICT NO. 2016-3 (SUNDANCE) (the "Community Facilities District" or "CFD") and TRI PINTE HOMES IE-SD, INC., a California corporation (the "Developer"), and amends that certain Acquisition Agreement, dated AS OF May 1, 2025 (the "Original Agreement" and together with this First Amendment, the "Agreement").
RECITALS:
WHEREAS, the City, the District and the Developer entered into the Original Agreement to provide for, among other matters, the financial and other obligations and responsibilities related to the formation of the Community Facilities District and the improvements to be financed by the Community Facilities District; and
WHEREAS, Section 9.12 of the Original Agreement provides that the parties thereto may amend the Original Agreement in writing signed by each Party thereto; and WHEREAS, such parties desire to amend Exhibit A to the Original Agreement as set forth herein to include certain additional improvements to be financed by the Community Facilities District; and.
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:
1. Recitals. Each of the above recitals is incorporated herein and is true and correct.
2. Amendment to Exhibit A. The Exhibit A to the Original Agreement is hereby amended and replaced in its entirety with the Exhibit A hereto:
3. Incorporation into Original Agreement. Except as expressly amended hereby, all provisions of the Original Agreement remain in full force and effect, and this First Amendment is incorporated as a part of the Original Agreement to comprise the Agreement in effect as of the date hereof.
4. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one instrument. 4924-5346-4867v2/022599-0037
CITY OF BEAUMONT
By:
Elizabeth Gibbs
City Manager
ATTESTED:
Deputy City Clerk
CITY OF BEAUMONT COMMUNITY FACILITIES
DISTRICT NO. 2016-3 (SUNDANCE)
By:
Elizabeth Gibbs
City Manager
ATTESTED:
Deputy City Clerk
4924-5346-4867v2/022599-0037
TRI POINTE HOMES IE-SD, INC.,
a California corporation
By:
Mike Taylor
Division President
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EXHIBIT A
DESCRIPTION OF FACILITIES AND DISCRETE COMPONENTS ELIGIBLE FOR
ACQUISITION FROM THE OWNER
1. City Park improvements — Estimated cost of $1,500,000
2. Planning Area 14 — retention/detention basin improvements — Estimated cost of $750,000
3. Brookside Avenue — engineering and road improvements — Estimated cost of $1,365,000
4. Oak Valley Parkway street improvements and rehabilitation — Estimated cost of $695,500
5. Oak Valley Parkway landscaping — Estimated cost of $176,500
6. Cherry Avenue Soft Costs — Estimated cost of $1,158,157
7. Storm Drain/Sewer improvements for Tournament Hills — Estimated cost of $1,180,000
8. Brookside Avenue — additional improvements/soft costs — Estimated cost of $1,365,000
9. Oak Valley Parkway — additional street improvements— Estimated cost of $600,000 A-1
4924-5346-4867v2/022599-0037
City of Beaumont
Community Facilities District No. 2016-3 ,�F�UMONT
(Sundance)
2025 Special Tax Bonds Wirc°''"ia
March 18, 2025
gLTFI Stradling
STIFEL
I in.11 1i Solution, Attorneys at Law
SPICER
CONSULTING GROUP
Table of Contents
Financing Overview
SEC Compliance, Items Subject to Council Approval
Financing Details and Tentative Schedule
Financing Overview
Project and Development Summary
City formed CFD 2016-3 in 2017
First series of bonds issued in 2023
Proposed 2025 Bonds will be on parity with 2023 Bonds
Final series of new money bonds to reimburse Tri-Pointe CFD consists of age -restricted (55+) single family homes known as 'Altis Beaumont' being developed by Tri-Pointe
CFD is a part of the 'Sundance' Master Planned Community Property in the CFD contains 704 Parcels
Development and ownership status as of January 17, 2025:
556 completed and conveyed to individual homeowners
11 completed model homes owned by developer
40 under construction
97 finished lots
Tri Pointe expects to complete and convey all remaining homes to individual homeowners by the second quarter of 2026
Financing Overview
Not to exceed par amount of $22,000,000 approved at formation $8,800,000 of 2023 Bonds previously issued
$7,500,000 not to exceed par amount for 2025 Bonds
Additional parity bonds for refunding purposes only
2025 Bonds will be structured so that special taxes will provide
1.10x coverage on the 2023 Bonds and 2025 Bonds debt service and expected administrative expenses
Bond proceeds will finance public improvements constructed by Tri-Pointe or certain Development Impact Fees (DIF)
Pursuant to a Settlement Agreement (discussed on next slide), the Developer agreed to pay/advance DIF to the City for construction of authorized facilities Select bond statistics provided on slide 11
5 Pardee Homes Settlement Agreement
Pardee Homes (now Tri Pointe) and the City entered into Development Agreements (DAs) for Sundance and Tournament Hills communities
The DAs required the City to form CFDs to finance facilities and fees In February 2017, the City and Pardee Homes entered into a Settlement Agreement to resolve certain disputes related to the infrastructure financing provisions of the DAs related to CFD 93-1 IA's 8, 8A, 8B, 8C, 8D, 8E, 8F, 17A, 17B, 17C and 17D
Per Settlement Agreement, the City agreed to form CFDs 2016-2 and 2016-3, issue bonds and release "pay -go" special taxes previously collected, to Pardee Homes
Pardee Homes agreed to advance DIF and/or build public
infrastructure for the City and release claims against City 2025 Bonds are being issued in accordance with the Settlement Agreement Page 515 of 789
SEC Compliance, Items Subject to
Council Approval
Securities and Exchange Commission Compliance
The Preliminary Official Statement and Official Statement contain SEC mandated disclosure related to the Cease and Desist Order and the Beaumont Financing Authority's compliance history with its continuing disclosure undertakings
The City has and will comply with its Disclosure Policies and the SEC Cease and Desist Order
The Official Statement was reviewed by the Financing Team City staff and City Council have received disclosure training
Items Subject to City Council Approval
City Resolution authorizing the issuance of bonds
Authorizing the 2025 Bonds in an amount not to exceed $7,500,000 Approving certain documents and taking certain other actions Preliminary Official Statement
First Supplement to Bond Indenture
Bond Purchase Agreement
Continuing Disclosure Agreement
Hire Financing Team
Compliance with Debt Issuance and Management Policy
Acknowledgment of Good Faith Estimates
City Resolution approving First Amendment to Acquisition Agreement
Financing Details and Schedule
Select Financing Statistics
Par Amount: $6,580,000*
True Interest Cost: 4.97%*
Final maturity: 2055
(30 -years)
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$o
Estimated Special Taxes and Debt Payments
dIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Ooh O�� OHO '>> O'�y O O'>h O';� O'�O O0y Ott OCh O0 ) O0 Ohy Ohm Ohh ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti
Special taxes collected
provide 1.10x coverage
on the 2023 Bonds and 2025 Bonds
r• Level payments; no escalation
2023 Bonds 2025 Bonds Projected Special Taxes
*All Numbers are Preliminary and Subject to Change. StatistiniipoyAmEpfad on Market Conditions as of February 24, 2025 11
Estimated Costs of Issuance
Issuance costs in line with past, similarly sized city CFD financings $8.8mm CFD 2016-3 (Sundance) 2023 bonds: $305,280
1 i
Estimated Issuance Costs
Role
Underwriter & Counsel
Bond/Disclosure Counsel
Municipal Advisor
Special Tax Consultant
Appraiser
Trustee
Printer
Contingency
Estimated Costs
Party
Stifel
Stradling
Urban Futures
Spicer
Integra
Wilmington
AVIA
Total
$97,055
85,000
47,500
25,000
20,000
5,100
2,500
4,900
$287,055
All Numbers are Preliminary and Subject to Change. StatisticpOps2artfricial on Market Conditions as of February 24, 2025 12
Tentative Schedule
Assuming City Council approval this evening, the bonds are expected to price next week and close two weeks later
Tuesday, March 18th
Wednesday, March 19th
Week of March 24th
Week of April 7th
Description
City Council Meeting to Approve Financing
Post Preliminary Official Statement
(Make Available to Prospective Investors)
Pricing of 2025 Bonds
Settlement of 2025 Bonds (Date of Issuance)
Preliminary and Subject to Change
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE March 18, 2025
SUBJECT: Sales Tax Working Group Update and Recommended Next Steps for Fiscal Sustainability Planning
Description The purpose of this report is to update the City Council on the latest developments regarding the League of California Cities (Cal Cities) Sales Tax Working Group and the potential fiscal impacts of proposed changes to the Bradley -Burns Sales Tax allocation, particularly regarding e -commerce sales tax distribution. Given the potential revenue implications for the City of Beaumont, this report also outlines recommended next steps, including engaging a consultant to assist with fiscal sustainability planning and public education efforts.
Background and Analysis:
In 2022, the Cal Cities Revenue and Taxation Committee formed the Sales Tax Working Group to develop policies for e -commerce sales tax in response to a 2021 proposed Cal Cities Conference Resolution to shift Bradley Burns 1°/0 Sales Tax from point -of -sale to 100% destination for E -Commerce transactions. The purpose of the Working Group is stated below:
"To convene a diverse and representative group of California city officials dedicated to examining local government sales tax issues and providing recommendations that:
• Equitable benefit to California cities
• Further Fiscal Sustainability; and,
• Strengthen the viability of the sales tax"
The CalCities Sales Tax Working Group has been evaluating changes to how e - commerce sales tax is allocated among cities. Currently, sales tax from online purchases is heavily weighted toward warehouse and fulfillment center locations, such as Beaumont. However, recent policy recommendations finalized in 2024, aim to redistribute a portion of these revenues to the jurisdictions where goods are delivered (destination -based taxation).
Proposed Changes to Sales Tax Allocation
In June 2024, the Working Group completed their recommendations for e -commerce Bradley 1°/0 Sales Tax. The CalCities Board is expected to consider this proposal in 2025. The Working Group has proposed the following adjustments to the current sales tax structure:
• In -State E -Commerce Sales Tax Allocation:
o Sales tax would be split 50% to the point -of -sale city and 50% to the destination city instead of being fully allocated based on point -of -sale location.
o A plus/minus 10% adjustment could be considered during legislative drafting.
o Would allow for a five-year* phase in to achieve proposed ratio split *Five-year phase in period would begin after CDTFA determines that it can make the appropriate changes to account for splitting the e -commerce taxes. • Out -of -State E -Commerce Sales Tax Allocation:
o Sales tax from out-of-state transactions would be allocated 100% to the destination city, instead of being pooled at the county level. o This marks a shift from current policy, which distributes these funds based on countywide taxable sales ratios.
• Sales Tax Rebate & Sharing Agreements:
o Future sales tax sharing agreements would be capped at an average* of 50% of tax revenue generated over the lifetime of the agreement. *Provides for greater flexibility for economic incentives. o Agreements would be limited to a maximum of 20 years, with no term extensions allowed.
• Other Policies Approved
o Cities must now report all sales tax -sharing agreements to a centralized location (CDTFA).
o Modify county pool calculations of the local Bradley Burns 1% sales tax to deduct sales tax rebated to a private business from pro -rata shares.
Potential Financial Impact to Beaumont
Sales tax is Beaumont's largest revenue source, and these proposed changes could significantly impact the City's financial outlook.
• If implemented, Beaumont could experience a notable reduction in sales tax revenue, particularly if the 50/50 split policy is adopted for in -state e -commerce transactions.
Page524of789
• While exact figures are still being analyzed, cities with a high concentration of distribution centers could see a revenue decline of 25% or more under the proposed framework.
• The modification to out-of-state e -commerce tax allocation could result in additional shifts in revenue distribution, with impacts dependent on consumer purchasing patterns and statewide implementation.
Timeline:
• Starting April 30, 2025, reporting sales tax rebate agreements to centralized repository (CDTFA).
• Possible bill in 2025/2026 on tax rebate policies (50% average with 20 -year term) — limited impact on City as this change only limits future extension option from City's existing rebate program.
• CalCities Board consideration of in state e -commerce recommendations in 2025, currently doing educational updates to CalCities members. • Potential for State bill or ballot measure for 2026 — this is likely a constitutional amendment.
Next Steps and Need for Proactive Planning
Given the uncertainty and potential revenue risks, it is critical for the City of Beaumont to take proactive steps to:
1. Assess the Financial Impacts — Conduct a detailed analysis of potential revenue losses under different policy scenarios.
2. Develop Policy & Revenue Strategies — Identify opportunities for revenue diversification and potential ballot measures to sustain fiscal stability.
3. Engage with State & Regional Policymakers — Participate in advocacy efforts to ensure that Beaumont's interests are represented in legislative discussions.
4. Educate & Engage the Public — Provide residents and businesses with transparent information about potential changes and gather feedback.
5. Support Economic Development Planning — Ensure that Beaumont remains competitive in attracting and retaining businesses despite changes to tax structures.
City staff recommends hiring a consultant to assist in determining the City's options for revenue strategies for sustainability. This would include a three-phase consulting effort to assist the City of Beaumont in researching, educating, and engaging the public on revenue and fiscal sustainability issues. The consultant will focus on analyzing the City's financial landscape, conducting public outreach, and, if needed, supporting legally permissible informational efforts should a revenue measure advance to the ballot. City
staff recommends starting with Phase 1 — Research, followed by a report back to City Council. City Council could then direct staff on whether or not to continue with the additional phases.
The phased approach is provided below:
Phase I — Research (60-90 Days)
• Conduct a political and financial assessment to evaluate revenue challenges and fiscal sustainability.
• Identify key community stakeholders for engagement efforts. • Collaborate with City Department Heads to analyze city revenues, services, and infrastructure needs to build a public education narrative. • Develop a decision matrix outlining potential revenue -generating options for City leadership.
Phase II — Outreach (6-9 Months)
• Develop a public information campaign to educate residents on fiscal issues in compliance with legal requirements.
• Create digital and print materials, including:
o Presentations, FAQs, fact sheets, and talking points. o Social media content, newsletters, and informational videos. o Press releases and community mailers.
• Conduct community meetings and town halls (optional), engaging civic and neighborhood groups.
• Design and distribute a community survey to gather public input. • Attend City Council meetings to provide updates and reports. • Optional: Assist the City in soliciting bids for public opinion polling.
Phase III — Post Referral (If a Revenue Measure is Placed on the Ballot) • Provide legally permissible informational materials, including fact sheets, mailers, and presentations.
• Respond to public inquiries within legal constraints. • Complete all post -referral materials within 30 days of City Council action.
Budget & Timeline
• Phase I: $5,500 per month for up to three months.
• Phase II: $5,500 per month for six to nine months ($7,500 per month if town halls are included).
• Phase III: $5,500 per month for one month, if applicable. • Public opinion polling, printing, and mailing costs are optional and billed separately.
The consultant's work will help position Beaumont to respond effectively to potential legislative changes and protect its long-term financial stability.
Fiscal Impact:
The City of Beaumont will see a loss in sales tax from e -commerce with a change in the sales tax allocation policy. The amount Beaumont's sales tax will decrease is unknown:
however, based on a quick analysis of FY24 actuals points to a potential estimated decrease of $9.4m.
The estimated cost to prepare this report is $250.
Recommended Action:
Receive and file the update on the Sales Tax Working Group; and Discuss and give direction to staff on engaging a consultant to assist in determining the City's options for revenue strategies for sustainability.
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
Darron Usher, Principal Management Analyst
DATE March 18, 2025
SUBJECT: Sponsorship Request for the 2025 Cherry Festival by the Cherry Festival Association
Description Consideration of a sponsorship request from the Cherry Festival Association (CFA) in the amount of $350,000 to support the 2025 Cherry Festival, which includes funding for free admission, discounted ticket prices, entertainment, community scholarships, and operational expenses.
Background and Analysis:
The Cherry Festival Association (CFA) has been organizing the annual Cherry Festival for over 100 years, fostering community engagement and providing significant economic benefits to the city of Beaumont. Historically, the City has supported the festival through financial sponsorships and logistical assistance when it was previously held at Stewart Park. This year, the CFA is requesting additional financial sponsorship from the City to ensure the festival remains accessible to all residents and continues to offer high -quality entertainment and community programs.
The requested sponsorship funds of $350,000 is proposed to be allocated as follows:
• $135,000 to provide one day of free admission — "Family Night on Thursday" as well as reduced ticket prices for Friday through Sunday, benefiting local families. • $100,000 to enhance the entertainment lineup, maintaining the festival's reputation and audience appeal.
• $65,000 for community scholarships and donations to student programs, small businesses, and service organizations.
• $50,000 for operational expenses, including security, ensuring a safe and family - friendly environment.
The CFA's estimated budget for 2025 is $685,000. The CFA has committed to reallocating any unused sponsorship funds toward additional community donations.
Since 2022, the City has requested that CFA perform a financial audit each year that the CFA requests a city sponsorship. The 2024 financial audit is attached (Attachment B). The audit shows that CFA has net assets of $337,006 for the year ended December 31, 2024. This balance is after a net loss of $225,930 from the same year's activities.
There were no reportable findings.
Fiscal Impact:
The cost of preparing this staff report is estimated to be $400.
The City Council approved an amount of $100,000 in the FY2025 budget for sponsorship of this event. If the request of $350,000 is granted, a budget amendment would be needed and that item would need to be brought back to Council at a future meeting. It should be noted that this amount exceeds available unprogrammed revenues, therefore, the budget adjustment would require using fund balance as the source of available.
Recommended Action:
Staff recommends City Council authorize $135,000 to sponsor the 2025 Cherry Festival and cover the costs of providing one day of free admission as well as reduced ticket prices for the remainder of the festival, benefiting local families; and, Direct staff to issue a purchase order to the Cherry Festival Association allocating $100,000 from 100-1050-7034-0000 and $35,000 from 100-1200-7900-0000, thereby avoiding using fund balance.
Attachments:
A. Sponsorship Request Letter from the Cherry Festival Association B. 2024 Cherry Festival Audit
Cherry Festival Association
951-663-0601 www.beaumontcherryfestival.org
1310 Oak Valley Pkwy. Beaumont, CA 92223
[email protected]
To the City of Beaumont's Council Members:
The Cherry Festival Association has been dedicated to bringing the community together through the Cherry Festival which has occurred for over 100 years. The assistance from the City of Beaumont, which has historically helped our group organize and execute this enjoyable event, is not an act that goes overlooked, and will always be appreciated. The partnership that has been formed between the Association and the City is one that our members would like to further explore.
The Directors of the CFA have been heavily discussing new ideas to establish more involvement within the community. Contribution towards programs and other organizations for the people of Beaumont, such as student scholarships, small and/or family -owned businesses, and local service groups, have always been a passionate mission for the Association. However, this calling has never been able to be truly fulfilled due to the outstanding and rising costs of organizing the Cherry Festival; but that mission could come alive in its entirety with the help of the City, whom we are so honored to acknowledge help keep the tradition of 105 years of festival fun standing strong.
The Association is reaching out to the City of Beaumont to ask for its assistance in implementing our mutual goal of benefiting the community by supporting this year's festival with a $350,000 sponsorship.
This sponsorship will allow the Association the opportunity to offer the following benefits to this year's festival as well as more involvement in the community throughout the year:
• $135k towards one day of free admission and discounted tickets for the 2025 Cherry Festival
Supporting this proposition allows the CFA to bring back "Family Night" on Thursday with a new incentive: "FREE ADMISSION TO ALL WHO ATTEND ON THURSDAY." Additionally, this will grant the CFA the opportunity to promote a new and reduced admission fee into the festival from Friday — Sunday, bringing the cost of an adult ticket from $18 to $10 and a child/senior ticket from $12 to $5.
• $100k towards 2025 Cherry Festival's entertainment department.
The City of Beaumont has always supported the importance of quality entertainment to drive a target audience to the Cherry Festival. Support in this proposition will allow the CFA to keep a reputable state with our patrons. • towards scholarships/donations throughout the year.
While the CFA has always felt passionate about becoming more involved in the community, expenses for yearly festivals have caused the Association to struggle in contributing financially. Supporting this proposition will allow us to budget into giving greater funds back to Beaumont, its students, groups and small owned businesses that give this growing City that "small town feel" everyone loves. • $50k toward expenses allocated for the 2025 Cherry Festival.
The CFA strives to make our festival a family -friendly event for all. Last year's decision to increase security resulted in quick decision making, immediate interference in altercations, and a feeling of being protected. Supporting this proposition will grant the CFA funds to contract security with that constant quality and allow a safer event for the Beaumont citizens and its surrounding neighbors.
Below shows the earmarked potential expenses for the 2025 festival with a starting Budget of $340,028:
Department
LY
Expense
2025
Budget
Department
LY
Expense
2025
Budget
Advertising/Marketing
$27,000
$20,000
Grounds (Rental Fee)
$25,000
$50,000
Cherry Pit
$5,000
$2,000
Grounds (Security)
$120,000
$70,000
Contractors (O.M.,
Rep, Attorney,
Auditor, CPA)
Insurance, Taxes,
Licenses, Permits
$32,000 $80,000 $20,000 $15,000
Beer
$22,000
$30,000
Office Expenses
$3,900
$2,000
Donations/Scholarships
$10,000
$75,000
Merch/Sponsorship
Intentives
$4,000
$6,000
Entertainment
$271,000
$225,000
Parade
$10,000
$10,000
Grounds (Fencing,
Toilets, etc.)
$44,000
S40,000
Misc. Fees
(Reimbursements,
Supplies, etc.)
$100,000
$60,000
Avg Total 2024 Expenses - $695,000 Tentative 2025 Budget Expenses - $685,000
The table you have reviewed is a depiction of our intentions of use with the requested funds. Should anything change and a department is not in need of the allocated budget, funds will be reassigned to a department in need of additional assistance. If no other departments are lacking in funds, the remaining of the requested sponsorship that has not been used will go towards additional donations back into the community.
Your commitment to "A City Elevated" aligns perfectly with our mission to bring our patrons a fun experience that doesn't burn a whole in their pockets. Your full support in our proposal will ensure that the legacy of 105 years of community fun continues. We appreciate your ongoing support to the CFA and hope that we can continue to expand our mutual mission and commitment to the community.
Thank you for you time and consideration.
The Cherry Festival Association
Board Members and Directors
CHERRY FESTIVAL ASSOCIATION
ANNUAL FINANCIAL STATEMENTS WITH REPORT OF
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
DECEMBER 31, 2024
JLG
Jeanette L. Garcia & Associates
CERTIFIED PUBLIC ACCOUNTANT
CHERRY FESTIVAL ASSOCIATION
TABLE OF CONTENTS
DECEMBER 31, 2024
PAGE
INTRODUCTORY SECTION
TABLE OF CONTENTS
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT
BASIC FINANCIAL STATEMENTS
Statement of Financial Position
Statement of Activities
Statement of Cash Flows
i
1 Exhibit A 3
Exhibit B 4
Exhibit C 5
NOTES TO FINANCIAL STATEMENTS 6
REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED
ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
9
JLG
J cancttc L. Garcia,
CPA
Member:
American
Institute of
Certified Public
Accountants
California
Society of
Certified Public
Accountants
Jeanette L. Garcia & Associates
202 East Airport Drive, Suite 160
San Bernardino, CA 92408
Phone: (909) 763-2100
Fax: (909) 763-2330
www.j1gcpa.net
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors,
Cherry Festival Association
Beaumont, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Cherry Festival Association, as of and for the year ended December 31, 2024, the statement of cash flows and the related notes to the financial statements, which collectively comprise the Cherry Festival Association's basic financial statements as listed in the table of contents.
In our opinion, based on our audit, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the Cherry Festival Association, as of December 31, 2024, and the results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Cherry Festival Association and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Cherry Festival Association's ability to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. 1
Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not guarantee that and audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exits. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate they would influence the judgement made by a reasonable user based on the fmancial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgement and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Cherry Festival Association's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Cherry Festival Association's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope of and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 4, 2024, on our consideration of the Cherry Festival Association's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Cherry Festival Association's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Cherry Festival Association's internal control over fmancial reporting and compliance.
San Bernardino, California
March 4, 2024
2
EXHIBIT A
CHERRY FESTIVAL ASSOCIATION
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2024
ASSETS
Cash (Note 2)
Accounts Receivable
Inventory
Total Current Assets
TOTAL ASSETS
LIABILITIES AND NET ASSETS
Liabilities
Other Liabilities
Total Liabilities
$ 335,866
740.00
400.00
337,006
$ 337,006
NET ASSETS
Without Donor Restrictions 337,006
TOTAL LIABILITIES AND
NET ASSETS
$ 337,006
The Notes to Financial Statements are an integral part of this statement. 3
EXHIBIT B
CHERRY FESTIVAL ASSOCIATION
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024
WITHOUT
DONOR
RESTRICTIONS
SUPPORT AND REVENUE
Program Revenue
Interest Income
Total Support and Revenue
EXPENSES
Accounting
Advertising
Beer Garden
Donations/Grants
Entertainment
Gate
Grounds
Insurance
Merchandise
Office
Parade
Permits
Rental Fees
Salary/Contracted Services
Sales Tax
Supplies
Other
Total Expenses
Change in Net Assets
Net Assets, January 1, 2024
Net Assets, December 31, 2024
$ 486,674
9,967
496,641
7,049
22,033
21,053
14,930
270,515
2,791
183,446
6,341
2,888
4,829
8,819
7,932
25,000
37,075
6,990
97,661
3,219
722,571
(225,930)
562,936
$ 337,006
The Notes to Financial Statements are an integral part of this statement. 4
EXHIBIT C
CHERRY FESTIVAL ASSOCIATION
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2024
Cash Flows from Operating Activities
Change in Net Assets
$ (237,037)
Cash Flows from Investing Activities
Interest Income 9,967
Net Increase in Cash
Cash - January 1, 2024
Cash - December 31, 2024
(227,070)
562,936
$ 335,866
5 CHERRY FESTIVAL ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cherry Festival Association is a charitable, nonprofit organization that provides community events for area residents and others. The community parade is attended by thousands of people and the Cherry Festival is attended by over 40,000 people over a four day period.
Cherry Festival Association is a not -for-profit organization exempt from federal income taxes under Section 501(c)(4) of the Internal Revenue Code. As such, it is also exempt from state income taxes, and contributions by the public are deductible for income tax purposes to the extent allowed by federal and state law.
On an ongoing basis, Cherry Festival Association is funded primarily by contributions from the general public, corporate sponsors and earnings from the festival.
CASH
Cash includes amounts on deposit in checking and savings accounts.
PUBLIC SUPPORT, REVENUE AND EXPENSES
Contributions received are recorded as without donor restrictions or with donor restrictions, depending on the existence and nature of any donor restrictions. All contributions are considered to be without donor restrictions unless specifically restricted by the donor or subject to legal restrictions.
Cherry Festival Association records contributions in the with donor restriction class of net assets if they are received with donor stipulations that limit their use through either purpose or time restrictions or both.
When donor restrictions expire — that is, when the purpose restriction is fulfilled or the time restriction expires — net assets with donor restrictions are reclassified to net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. It is Cherry Festival Association's policy to record donor -restricted contributions received and expended in the same accounting period as contributions with donor restrictions and as net assets released from restrictions. Contributions restricted to the purchase of property or equipment are considered to be met when the asset is placed in service.
Contributions are recorded when cash or unconditional promises -to -give have been received or ownership of donated assets to be used directly in the operations is transferred to Cherry Festival Association.
Other revenue is recorded when earned.
Expenses are recorded when incurred in accordance with the accrual basis of accounting.
USE OF ESTIMATES
The preparation of consolidated fmancial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 6
CHERRY FESTIVAL ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024
DONATED SERVICES
Many volunteers have contributed significant amounts of their time to activities of Cherry Festival Association. However, since those donated services neither create or enhance nonfinancial assets nor require specialized skills, the value of the contributed services is not recorded in the accompanying financial statements. Management has not quantified the amount or value of those donated services.
PROMISES -TO -GIVE
As of December 31, 2024, there were no unconditional promises -to -give. Therefore, no allowance for uncollectable receivables has been established.
NET ASSET CLASSIFICATIONS
Net assets, revenues, gains, and losses are classified based on the existence or absence of donor -imposed restrictions. Accordingly, the net assets of the Association and the changes therein are classified and reported as follows:
• Net Assets Without Donor Restrictions — Net assets without donor restrictions are net assets that are not subject to donor -imposed restrictions. All the Association's activities are included in this category. These assets may be designated for specific purposes by action of the Board of Directors for special programs, expenditures for plant and equipment, and/or general operating support.
• Net Assets With Donor Restrictions — Net assets with donor restriction are net assets that are subject to donor -imposed restrictions which can be fulfilled either by actions of the Association pursuant to those restrictions and/or expire with the passage of time. The Association does not have any restricted net assets at December 31, 2024.
2. DEPOSITS
Cash at December 31, 2024, consisted of the following:
Deposits:
Cash on Hand and in Banks
$ 335,866
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Association manages its exposure to interest rate risk by maintaining their cash in federally insured interest -bearing bank accounts.
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The Association does not have a formal investment policy that limits its investment choices other than the limitations of State law.
7
CHERRY FESTIVAL ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The Association does not place limits on the amount it may invest in any one issuer. At December 31, 2024, the Association had no concentration of credit risk.
Custodial Credit Risk - Deposits
This is the risk that in the event of a bank failure, the Association's deposits may not be returned to it.
However, the California Government code requires that a financial institution secure deposit made by State or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under State law (unless so waived by the governmental unit.) The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits.
Cash balances held in banks and in revolving funds are insured up to $250,000 by the Federal Depository Insurance Corporation (FDIC). All cash held by the fmancial institutions is fully insured or collateralized.
3. DATE THROUGH WHICH SUBSEQUENT EVENTS ARE EVALUATED
Cherry Festival Association has evaluated through March 4, 2024 whether there are any subsequent events that should be considered for inclusion in these financial statements. That date is when the financial statements are available to be issued.
8
JLG
Jeanette L. Garcia,
CPA
Member:
American
Institute of
Certified Public
Accountants
California
Society of
Certified Public
Accountants
Jeanette L. Garcia & Associates
202 East Airport Drive, Suite 160
San Bernardino, CA 92408
Phone: (909) 763-2100
Fax: (909) 763-2330
www.j1gcpa.net
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Independent Auditor's Report
To the Board of Directors
Cherry Festival Association
Beaumont, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities of the Cherry Festival Association as of and for the year ended December 31, 2024, and the related notes to the financial statements, which collectively comprise Cherry Festival Association's basic financial statements, and have issued our report thereon dated March 4, 2024.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Cherry Festival Association's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Cherry Festival Association's internal control. Accordingly, we do not express an opinion on the effectiveness of Cherry Festival Association's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses of significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material wealaiesses may exist that have not been identified.
9 Compliance and Other Matters
As part of obtaining reasonable assurance about whether Cherry Festival Association's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of fmancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide and opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
6714"411e -166-t eet:%, 45504:414-,
San Bernardino, California
March 4, 2024
10
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Elizabeth Gibbs, City Manager
Darron Usher, Principal Management Analyst
DATE March 18, 2025
SUBJECT: Recommendation for the City of Beaumont to Host the Cherry Festival Parade
Description Consideration of the City of Beaumont assuming responsibility for the coordination and orchestration of the Cherry Festival Parade, ensuring the continuation of a decades -long community tradition.
Background and Analysis:
The Cherry Festival Parade has been a long-standing tradition in the City of Beaumont, serving as the opening event to the annual Cherry Festival. Historically, the Beaumont - Cherry Valley Rotary Club and the Cherry Festival Association (CFA) have been responsible for the planning and execution of the parade, while utilizing volunteers and City resources. However, both organizations have formally notified the City that they will no longer be involved in organizing the event due to resource and capacity limitations.
On January 26, 2025, the Beaumont -Cherry Valley Rotary Club submitted a letter to the Cherry Festival Association stating that they can no longer orchestrate the parade as they feel threatened by the CYSC group along with the "lack of cooperation" between the City of Beaumont and the Cherry Festival Association (Attachment A).
On February 28, 2025, the Cherry Festival Association submitted a letter to the City, stating that they do not have the manpower, funding, or expertise to continue the tradition of hosting the parade (Attachment B). The letter also acknowledged the invaluable contributions of the Beaumont -Cherry Valley Rotary Club over the years and expressed hope that another organization would step forward to continue this cherished event. The Rotary Club, in a separate communication, has also confirmed its withdrawal from parade coordination.
Given the historical significance of the Cherry Festival Parade to the community, staff recommends that the City of Beaumont assume responsibility for organizing the event.
Page546of789
By taking over the parade, the City can ensure that this beloved tradition continues without interruption and remains a key highlight of the Cherry Festival.
The responsibilities of the City in hosting the parade would include:
• Coordinating with local organizations, schools, and businesses to participate in the parade.
• Securing permits, street closures, and public safety measures. • Allocating necessary funding to support logistics, security, and staffing. • Promoting the parade as an essential component of the Cherry Festival.
City staff will assess resource needs and explore potential partnerships with local organizations to assist in planning and execution.
Fiscal Impact:
The cost of preparing this staff report is estimated to be $400.
Estimated costs for facilitating the parade are $10,000 - $15,000. Costs include staff time, road closures, and marking for the event. Costs for the Community Services and Public Works Department are estimated to be $5,000 which would be for staff time to manage the event. The remaining $5,000 - $10,000 would be for Police Department staff support in ensuring a safe event.
If City Council approves hosting the parade, expenditures will be paid out of the respective departments' current operating budget. Moving forward, a budget line item will be included in the proposed FY2026 budget for Council consideration.
Recommended Action:
Staff recommends that City Council approve the City of Beaumont hosting the 2025 Cherry Festival Parade.
Attachments:
A. Rotary Club Letter
B. Cherry Festival Association Letter
Page547of789
Beaumont - Cherry Valley Rotary Club
R O. Box 3006 Beaumont, Ca. 92223
January 26, 2025
Cherry Festival Association
The Rotary Club is giving notice that we cannot put on the Cherry Parade. There are a number of reasons to not continue after fifty years.
First and foremost is the violent actions from the CYSC group.
Second, the lack of cooperation between the City of Beaumont and your Board. We were literally caught between both entities. Our integrity is worth more than that.
Finally, we really don't have the volunteer numbers to carry on.
Good luck with future endeavors.
David Hiss, Rotary President
Page548of789
Cherry Festival Association
1310 Oak Valley Pkwy, Beaumont Ca 92223
951-663-0601 [email protected]
www.beaumontcherryfestival.org
February 28, 2025
To the Mayor and Councilmembers of the City of Beaumont:
It is unfortunate that I must inform you that the Beaumont -Cherry Valley Rotary Club, for several reasons listed in the attached letter, will no longer be involved in organizing the Cherry Festival Parade.
The parade has been a staple event that went hand in hand with the Cherry Festival for many decades. The Cherry Festival Association will be forever grateful to the Beaumont -Cherry Valley Rotary Club and Its member's dedication to always putting on a memorable piece of this annual tradition for the community.
After much consideration, and with great respect for the Rotary Club and all other organizations that have so passionately worked alongside us all these years, we, the Board members of the Cherry Festival Association, regret to announce that we are unable to continue the tradition of the parade this year or in the future. The CFA simply does not have the knowledge and/or manpower to run such an event simultaneously with the festival; nor do we have the funding available to contract such an entity with that knowledge and manpower.
The CFA hopes that this will not be the end of an era with this hard decision. We welcome any organization to continue this community staple and look forward to what may come.
Thank you,
Dan Roush, President
Cherry Festival Association
Page549of789
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Brittany Navas, Grants Analyst
DATE March 18, 2025
SUBJECT: Proposed Projects for Congressional Appropriations Funding 2025 Description This report presents proposed projects for federal appropriations funding and seeks Council approval for submission.
Background and Analysis:
The City of Beaumont has an opportunity to pursue federal appropriations funding to support projects that address critical community needs, enhance infrastructure, and improve the overall quality of life for residents. Typical appropriations requests range between $1-5 million, although larger requests can be made. The most competitive applications are for projects that are already substantially funded and require additional resources to close a funding gap, ensuring that the funds will be used effectively and that the project is positioned for timely completion.
In January of this year, federal grant funding was temporarily frozen, creating some uncertainty regarding appropriations and funding availability. However, this freeze has since been lifted, and based on discussions with our legislative consultants, we have every reason to believe that federal appropriations and funding opportunities will continue. While federal priorities and selection criteria may shift under the new administration, opportunities for infrastructure and community investment remain a key focus.
Staff worked closely with our lobbyist, Jamie Jones, to refine and define the proposed projects to improve their alignment with federal priorities and enhance their competitiveness. Efforts were made to strategically diversify the funding requests across multiple accounts to maximize the City's chances of securing appropriations funding. While there are no guarantees, our consultant indicated that these projects are well -positioned based on their alignment with federal funding categories and the thoughtful approach taken to strengthen each request.
Federal appropriations are divided into 12 categories, each targeting specific priorities such as infrastructure, public safety, sustainability, and economic development. Within
these categories, there are multiple accounts that further refine project eligibility, allowing for strategic diversification of funding requests to maximize success. Because these projects align with different funding sources, they will not compete against one another.
Given this strategic approach and the guidance received from our lobbyist, staff believes these projects represent strong opportunities for federal appropriations funding.
Fiscal Impact:
The estimated cost to prepare this report is $212.
Recommended Action:
Staff recommends that City Council approve the proposed project list as presented and authorize staff to submit the identified projects for federal appropriations funding requests.
Attachments:
A. Detailed Project Descriptions
B. Overview of Appropriations Categories
Executive Summary: Priority Projects for Federal Funding Pennsylvania Avenue
Grade Separation
Project
> $5M Request
(Transportation/
CRISI)
The Pennsylvania Avenue Grade Separation Project aims to eliminate the at -grade railroad crossing at Pennsylvania Avenue in Beaumont, enhancing safety and mobility for both people and goods. By lowering the road and constructing a new rail bridge, the project will reduce traffic delays, improve access to Interstate 10, and support the city's economic growth.
City of Beaumont's
Downtown Economic
Revitalization
> $2M Request
(Transportation/EDI)
The Downtown Beaumont Economic Revitalization Project seeks funding to enhance the walkability, accessibility, and appeal of the city's historic downtown along 6th Street and Grace Street, connecting the City -owned Pass Area Business Resource Center and Restaurant Development Center. These improvements, including pedestrian streetlights, new sidewalks, outdoor dining buffers, and landscaping, will complement existing city investments in workforce development and small business growth. By enhancing public infrastructure and creating a vibrant economic hub, the project will drive increased foot traffic, attract new small businesses, and support local entrepreneurs in a historically significant area.
Beaumont Public Safety
and Cultural Complex
> $2M Request
(Interior)
The City of Beaumont seeks funding to develop a master plan for a transformative 30 -acre Civic and Community Campus, strategically located at the heart of the city. Anchored by a much -needed new Police Station, the campus will enhance public safety, improve emergency response times, and address critical traffic congestion near local schools. This visionary plan will integrate cultural, recreational, and nature -focused amenities, fostering community engagement while positioning Beaumont as a model for innovative and resilient urban development.
Beaumont Critical
Infrastructure Resilience
and Wildfire Mitigation
Project
➢ $5M Request
(Homeland Security)
The Beaumont Critical Infrastructure Resilience and Wildfire Mitigation Project is a transformative initiative to underground powerlines in a high -risk wildfire and PSPS zone, safeguarding the City of Beaumont's Wastewater Treatment Plant and the surrounding disadvantaged community. This strategic investment will mitigate wildfire risks, ensure uninterrupted sanitation services, and enhance public safety while serving as a model for resilience and sustainability in disaster -prone regions.
Clean Power for Clean
Water: Beaumont
Microgrid Project
> $2M Request
(Energy & Water)
The Wastewater Treatment Plant and Critical Facilities Microgrid Initiative is a forward -thinking investment in energy resilience, environmental sustainability, and community well-being. By safeguarding essential services and reducing reliance on grid power, this project will strengthen Beaumont's infrastructure, improve public safety, and promote regional energy leadership. 1
Overview of Appropriations Categories
Bill
Account
Purpose
Funding
Range
Local
Match
Transportation -
HUD
Highway Infrastructure
Programs (HIP)
Roads, bridges, bike paths, transit, and street rehabilitation. $1 M —$5M
20%
Transit Infrastructure Grants (TIG)
Transit projects under Chapter 53 of Title 49.
$1 M —$5M
20%
Consolidated Rail Infrastructure
and Safety Improvements (CRISI)
Rail grade separation projects.
$1 M —$5M
20%
Economic Development Initiative
(EDI)
Affordable housing, parks, seismic retrofits, community centers, economic development.
$1M —$4M
None
Homeland
Security
Emergency Operations Center
(FEMA)
Emergency operations center construction and upgrades.
*Project would required CaIOES letter of eligibility approval. $1M -$1.5M
25%
Pre -disaster Mitigation (FEMA)
Flood resilience, stormwater, property buyouts in flood zones.
Project would required CaIOES letter of eligibility approval. $1 M —$4M
25%
Interior-
Environment
State and Tribal Assistance
Grant (EPA)
Wastewater, stormwater, water treatment, and infrastructure. $1 M —$4M
20%
Save America's Treasures (NPS)
Historic preservation projects.
Up to $500K
50%
Energy and
Water
Corps of Engineers/Bureau of
Reclamation
Water infrastructure, energy security, and resilience.
Varies
o
50-75/o
Commerce-
Justice -
Science
COPS Technology and Equipment
(DOJ)
Camera systems, radios, body cameras, and communication technology.
$600K —$3M
None
Byrne Justice Assistance Grants
(DOJ)
Crime prevention, substance abuse, community policing.
$600K—$1 M
None
Financial
Services
Small Business Initiative (SBA)
Entrepreneur training, workforce development, research, facility acquisition.
$500K —$1.5M
None
Labor-HHS-
Education
Training and Employment
Services DOL
( )
Workforce and adult education programs under WIOA.
$250K-$1 M
10%
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Thaxton Van Belle, Director of Reclamation
Sunshine Sanchez, Management Analyst
DATE March 18, 2025
SUBJECT: Adopt a Resolution Approving the CaISIP Stream Gage Grant Description City Council approval is requested to adopt a resolution accepting the CaISIP Stream Gage Grant in the amount of $108,000 from the Department of Water Resources (DWR) and authorizing execution of the funding agreement.
Background and Analysis:
The City of Beaumont has been awarded a $108,000 grant through the California Stream Gage Improvement Program (CaISIP), administered by the Department of Water Resources (DWR). This funding will support the installation of four new stream gages in Cooper's Creek and San Timoteo Creek, providing essential data to monitor water flow and quality. The stream gages will play a critical role in the City's ongoing water resource management efforts, particularly in connection with the Adaptive Management and Mitigation Plan (AMMP). To accept this grant and execute the necessary funding agreement, City Council approval of the attached resolution is required.
As part of our long-term water resource strategy, the City of Beaumont is working to reduce the discharge of treated wastewater (recycled water) from the Beaumont Wastewater Treatment Plant (WWTP) into Cooper's Creek and redirect it for other beneficial uses. To support this effort, the City was advised to develop an AMMP to monitor potential environmental impacts and ensure compliance with regulatory requirements. The AMMP outlines monitoring requirements, adaptive triggers, and mitigation measures to address any potential effects of reduced discharge on Cooper's Creek and San Timoteo Creek.
The installation of four stream gages will provide real-time data to track water flow, quality, and levels, ensuring the effectiveness of the AMMP and compliance with environmental regulations. These gages will help assess hydrological changes, identify potential riparian habitat impacts, and trigger necessary mitigation actions if needed.
Page554of789
Additionally, the data collected will contribute to improving the statewide stream -gaging network, supporting California's broader water management efforts.
Through the CaISIP program, DWR is funding public agencies to upgrade, reactivate, or install new stream gages on natural waterways across the state. The Stream Gage Improvement Program, funded by the Budget Act of 2023 (Stats. 2023, Ch. 189, Section 43), aligns with recommendations in SB19 to strengthen the state's water data infrastructure. The awarded grant funding will be used to install four new stream gages at the following locations: San Timoteo Creek (081-2951-01), Yucaipa Valley Water District (081-2952-01), and Cooper's Creek (081-2953-01, 081-2954-01).
Fiscal Impact:
There is no fiscal impact to the General Fund. If the resolution is approved, staff will bring back an item for City Council to approve the agreement and a budget adjustment will be requested at that time.
The cost to prepare this staff report is estimated to be $250.
Recommended Action:
Waive the full reading and adopt by title only, "A Resolution of the City Council of the City of Beaumont Authorizing the Funding Request, Acceptance, and Execution for the CaISIP Stream Gage Grant".
Attachments:
A. Resolution
B. DWR Grant Approval Letter
RESOLUTION NO. [xxxx]
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT
AUTHORIZING THE FUNDING REQUEST, ACCEPTANCE, AND EXECUTION FOR THE CaISIP STREAM GAGE GRANT
WHEREAS, City of Beaumont proposes to implement CaISIP Stream Gage Grant; WHEREAS, CaISIP Stream Gage Grant is being implemented to support and improve the stream gage network within the State of California and is intended to: (1) provide publicly available data on natural surface waters; and (2) provide sound data that accurately informs water management decisions;
WHEREAS, City of Beaumont has the legal authority and is authorized to enter into a funding agreement with the State of California; and
WHEREAS, City of Beaumont intends to apply for funding from the California Department of Water Resources for the CaISIP Stream Gage Grant; WHEREAS, City of Beaumont intends to apply for funding from the California Department of Water Resources for the CaISIP Stream Gage Grant; THEREFORE, BE IT RESOLVED by the City Council of the City of Beaumont as follows:
1. That pursuant and subject to all of the terms and provisions of Budget Act of 2023, as amended (Stats. 2022, ch. 44, § 25), the City of Beaumont [Title of Authorized Representative], or designee is hereby authorized and directed to prepare and file a questionnaire for funding with the Department of Water Resources, and take such other actions as necessary or appropriate to obtain funding.
2. The City of Beaumont City Manager, or designee is hereby authorized and directed to execute the funding agreement with the Department of Water Resources and any amendments thereto.
3. The City of Beaumont City Manager, or designee is hereby authorized to utilize electronic signatures to execute agreements with the Department of Water Resources and any amendments thereto.
4. The City of Beaumont City Manager, or designee is hereby authorized and directed to submit any required documents, invoices, and reports required to obtain funding.
CERTIFICATION I hereby certify that the foregoing Resolution was duly and regularly adopted by the City Council of the City of Beaumont at the meeting held on March 18,
2025, motion by [member name] and seconded by [member name], motion passed by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Mike Lara
Mayor, City Council
Attest:
Nicole Wheelwright
Deputy City Clerk
Docusign Envelope ID: EB2819A4-D2FE-4B68-B717-A3E3081E2E2C
STATE OF CALIFORNIA -CALIFORNIA NATURAL RESOURCES AGENCY GAVIN NEWSOM, Governor
DEPARTMENT OF WATER RESOURCES
NORTHERN REGION OFFICE
2440 MAIN STREET
RED BLUFF, CA 96080-2356
February 20, 2025
City of Beaumont
550 E 5t" Street
Beaumont, California 92223
APPROVAL OF FUNDING FROM CALIFORNIA STREAM GAGE IMPROVEMENT PROGRAM —
CITY OF BEAUMONT NEW STREAM GAGE PROJECT
Congratulations. Your request for funding from the Department of Water Resources' (Department) California Stream Gage Improvement Program (Program) for the City of Beaumont New Stream Gage Project (Project) has been approved. The tentative level of funding is $108,000 and will be confirmed during the agreement process, which is the next step. Additionally, the term of funding will be from the time of agreement execution through March 2027.
This letter serves to inform you of this award and is a reminder that a resolution from your agency's governing body is needed before the agreement can be executed. To confirm you received this approval notification and to confirm your agency is intending on completing the agreement process, we request that you acknowledge receipt of this letter by signing and returning to Jessica Boyt by email at Jessica.Bovt(water.ca.gov within 10 business days.
The Stream Gage Improvement Program is funded by the Budget Act of 2023 (Stats. 2023, Ch. 189, Section 43). The intent of the Program is to improve the stream gaging network statewide following the recommendations in the SB19 recommendations (SB19 2022 Technical Report).
The funding award for this project is consistent with these recommendations and includes implementing the following items:
• Four new stream gages on San Timoteo Creek (081-2951-01), Yucaipa Valley Water District (081-2952-01), and Coopers Creek (081-2953-01, 081-2954-01).
A draft funding agreement is being developed and will be sent to you for review and ultimately your agency's execution. You may begin incurring costs once the agreement is fully executed. No reimbursement of Eligible Project Costs will be issued until after the funding agreement is executed.
Any costs incurred are at your own risk and liability until the funding agreement is executed. For guidance as to what are Eligible Project Costs and what type of documentation is required for reimbursement, please see the Guidelines for Funding Public Agencies under the California Stream Gage Improvement Program which may be found at: Stream Gage Improvement Program (ca.gov)..
Docusigri Envelope ID: EB2819M-D2FE-4B68-B717-A3E3081E2E2C February 20,2025
The Department is grateful for your participation in improving the stream gaging network and are hopeful this program helps inform your agency in surface water matters. If you have any questions or need additional information regarding the agreement, please contact Radley Ott by email at radlev.ot a7water.ca.cov or by phone at (530) 945-0985.
Sincerely,
Teresa Connor
Manager, Northern Region Office
Department of Water Resources
ACCEPT
Ini
Elizabeth Gibti, City Manager
Date:
BEAUMONT
O R N I A -
Staff Report
TO: City Council
FROM: Jennifer Ustation, CPFO, Finance Director
Lisa Leach, CPA, Assistant Finance Director
DATE March 18, 2025
SUBJECT: Approval of Contract for Financial Auditing Services Description Approve the 5 -year contract with Rogers, Anderson, Malody and Scott (RAMS).
Background and Analysis:
The City Council has assigned the Financial and Audit Committee the responsibility to prepare a request for proposal (RFP) and to recommend an auditor for the City's Annual Comprehensive Financial Statements (ACFR).
For the past five years, the City has contracted with Rogers, Anderson, Malody and Scott (RAMS) to perform both the independent audit of the City's ACFR and to complete the review of internal controls and a single audit report. The best practice for governmental entities is to secure competitive bids for financial auditors every six years.
This does not exclude the current auditor from bidding or serving as the next auditor, however, there must be a change in the partner after the 6th year.
The Financial and Audit Committee assigned two members, Jessica Voigt (member) and Ron Rader (member) to work with staff on the preparation of an RFP and evaluation of responses. The other two members of the RFP committee were Jennifer Ustation, Finance Director and Lisa Leach, Assistant Finance Director. The City issued an RFP on December 6, 2024. The RFP is included as Attachment A. Three CPA firms responded to the RFP as follows:
• Rogers, Anderson, Malody and Scott, LLP (RAMS)
• Eadie and Payne, LLP (EadiePayne)
• The PUN Group, LLP
Interviews were conducted on February 5, 2025, and Council Member Jessica Voigt recused herself from the interview by Eadie and Payne, out of caution to ensure no appearance of bias, as she knew one of the partners on the proposal. After
deliberation, the RFP committee recommended RAMS as the selection to present to the City Council.
Contributing factors to the recommendation that RAMS be selected include the following:
• RAMS has direct expertise with many cities that are similar in size to Beaumont. • RAMS has strong local connections with headquarters in San Bernardino and many clients in the Inland Empire and surrounding areas. • RAMS has a clear focus on governmental auditing and consulting with, constituting over 80% of their business activity.
• RAMS was able to demonstrate a strong background in community financing districts (CFDs), development impact fees (DIF) and other areas significant to our City.
• RAMS partners and staff contribute their time to the Government of Finance Officers as reviewers for the GFOA Award of Excellence in Financial Reporting, demonstrating expertise in governmental reporting.
A contract has been negotiated for audit services beginning with the audit of FY 2025 for five years with an option for one additional one-year extension subject to City Council approval — see Attachment B.
Fiscal Impact:
The contract amount (not to exceed) for the five-year period is as follows:
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
$64,920
$64,920
$67,020
$69,095
$71,170
This planned expenditure will be budgeted for the upcoming FY 2025/2026 and is contemplated to be an ongoing expenditure of the City as we are required to have an independent audit of our financial statements.
The estimated cost to prepare this report is $250.
Recommended Action:
Approve a five-year contract, a total of $337,125, with Rogers, Anderson, Malody and Scott, LLP to perform audit services and authorize the City Manager to sign the engagement letters for each year of the five-year contract.
Attachments:
A. RFP for City Audit Services issued on December 6, 2024.
B. Contract with Rogers, Anderson, Malody and Scott, LLP to perform audit services
C. Contract Exhibit A — RAMS RFP proposal
D. Contract Exhibit B — Audit Engagement Letter
E. Contract Exhibit C — SAS 114 Letter
F. Contract Exhibit D — Certificates of Insurance
Website:
www.beaumontca.gov
BEAUMONT
CALIFORNIA
Request for Proposals
For
Financial Auditing Services
Proposals Due By:
12:00 pm
January 17, 2025
Contact:
Jennifer Ustation, Director of Finance
550 E. 6th Street - Beaumont, California 92223
[email protected]
RFP Available
Planet Bids Portal at
https://vendors.planetbids.com/ Portal/66785/bo/bo-search Address:
550 E. 6th Street
Beaumont, CA 92223
Phone:
951.769.8520
City of Beaumont Financial Auditing Services
Request for Proposal BEAUMONT
Table of Contents
Request for Proposal
Introduction 3
Background 3
Additional responsibilities 4
Term 4
Proposal Requirements 5
Key Milestones for Deliverables 7
Response Submittal 9
Project Schedule 10
Confidentiality 10
Amendments to RFP .10
City of Beaumont Rights and Options 11
Conflict of Interest 12
Proposal Evaluation/Selection 12
Exhibit A
Scope of Services 15
Exhibit B
Cost Summary 20
Exhibit C
Professional Services Agreement 22
City of Beaumont
Request for Proposal
Introduction
BEAUMONT
r. n F JPN .,
Financial Auditing Services
The City of Beaumont is requesting qualified public accounting firms to submit proposals to audit the City's financial statements for the five (5) fiscal years beginning with the year ending June 30, 2025, with the option of extending the contract for one (1) additional one-year period, at the City's sole discretion. These audits are to be performed in accordance with generally accepted auditing standards, Governmental Auditing Standards issued by the Comptroller General of the United States, and U.S. Office of Management and Budget (OMB) Circular A-133 Audits of States, Local Governments, and Non -Profit Organizations. Additional information is found in the Scopes of Services (Exhibit A).
All services provided by the Consultant shall be performed by individuals who meet the qualifications, education, and certification/licensing requirements for the position. The successful Consultant shall also have the resources to provide cost-effective and timely services, including providing customer service to the CITY.
Qualified firms that submit a proposal will be evaluated in accordance with the requirements defined within this RFP. The City reserves the right to waive any irregularity in any proposal, withdraw or amend this RFP or reject any proposal that does not comply with this RFP or City policies.
Background
The City of Beaumont is a general law city incorporated in 1912 currently serving a population of approximately 57,000, located in Western Riverside County. The City operates under a council- manager format of government which consists of a Mayor, Mayor Pro-Tem, three Councilmembers and the City Manager. The positions of Mayor and Mayor Pro-Tem are rotated among the elected Councilmembers. A City Clerk and Treasurer are elected positions, each for a four-year term.
In addition to its function as the governing body of the City, the City Council acts as the governing body for other separate entities: Beaumont Financing Authority, Beaumont Public Improvement Authority, Beaumont Parking Authority, Beaumont Transit System, and Beaumont Utility Authority. There is no requirement for separate financial reporting for these separate entities with one exception (Beaumont Transit System).
Official accounting records are on -site in the Finance Department, while some supporting information may be located in other departments within the City. Beaumont uses the Tyler Incode 10 accounting software and Enterprise for Fees. Payroll is processed in house through Tyler Incode 10.
City of Beaumont Financial Auditing Services
Request for Proposal BEAUMONT
Relevant operational detail for conducting the independent financial audit is provided as follows:
1. The Finance Department consists of the Finance Director, and eight (8) staff members responsible for accounting and financial reporting, budgeting, grants, accounts payable, revenue recording, banking and treasury investment, purchase order and project accounting tracking. Revenues are collected at various locations throughout the City and recorded into Tyler Incode 10 by non -finance department personnel.
2. City Funds and Account Groups are as follows:
a. General Fund (1)
b. Internal Service Funds (1)
c. Special Revenue Funds (14)
d. Debt Service Fund (1)
e. Other Governmental Funds (14)
f. Capital Project Funds (2)
g. Enterprise Funds (2)
h. Agency Funds (4)
3. The City, organized into ten departments (Administration, Communications, Finance and Budget, IT, Economic Development, Risk and Human Resources, Community Development, Community Services, Public Safety, Public Works), provides a full range of municipal services. In addition, the City has component units including the Beaumont Utility Authority, Beaumont Financing Authority, Beaumont Public Financing Authority, Beaumont Parking Authority, and Beaumont Transit System. Public Safety Fire services are contracted with Cal Fire, but Animal Control, Code Enforcement, Police and Dispatch are performed by City employees.
4. The City's total expected payroll for the year ended June 30, 2025 is approximately $31.8 million, covering 247 budgeted full-time and part-time positions. The total municipal budget for the 2024-2025 fiscal year is approximately $96 million.
For further information, City's past two years ACFRs' and current and last year adopted budget are located on the City's website at: https://beaumontca.gov/921/Audits-and-Re-Dorts Rogers, Anderson, Malody and Scott, LLP served as the City's auditor in the past years.
Additional Responsibilities
The Consultant shall be responsible for completing the specified services in accordance with the CITY's Professional Services Agreement (PSA) by Independent Contractor, a sample of which is attached (Exhibit A).
City of Beaumont
Request for Proposal
Term
BEAUMONT
r.n F O PN .,
Financial Auditing Services
The term of the agreement shall be determined upon the need for services and consistent with the City's policies. The initial period of the contract is five (5) years, with one one-year extension as approved by the City Council, subject to agreement terms and the Beaumont Municipal Code.
Proposal Requirements
Proposals shall clearly address all the information requested and describe the methodology to be used to accomplish each of the project tasks. Please note: this RFP cannot identify each specific, individual task required to successfully and completely implement this project. The CITY relies on the professionalism and competence of the selected firm to be knowledgeable of the general areas identified in the scope of services. The CITY will not approve addenda to the selected firm's agreement which do not involve a substantial change from the general scope of work identified in this RFP.
The proposal shall clearly address all the information requested herein. To achieve a uniform review process and obtain the maximum degree of comparability, it is required that proposals be organized and contain all information as specified below.
A. Cover Letter: Maximum of two pages serving as an Executive Summary which shall include an understanding of the scope of services. The RFP shall be transmitted with a cover letter that must be signed by an official authorized to bind the consultant contractually. That letter accompanying the RFP shall also provide the name, title, address, and telephone number of individuals with the authority to negotiate and contractually bind the consultant. The cover letter constitutes certification by the consultant, under penalty of perjury, that the consultant complies with nondiscrimination requirements of the State and Federal Government. An unsigned proposal or one signed by an individual unauthorized to bind the consultant may be rejected.
B. Introduction/Information:
Firms must provide the following information regarding the organization:
• Name
• Street Address
• City, State, Zip Code
• Corporate Structure
• State/Country of Incorporation
• Website
• Contact Information
In addition, please include the size of the firm, the size of the firm's governmental audit staff,
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F r, N .,
Financial Auditing Services
and the location of the office from which the work on this engagement will be performed.
Firms should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards and the U.S. General Accounting Office's Government Auditing Standards (1994). Firms should provide an affirmative statement that the firm and all assigned key professional staff are properly licensed to practice in California.
Firms shall submit a copy of its most recent quality control review. Firms shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm with state regulatory bodies or professional organizations, as well as any pending or settled litigation, during the past three years.
C. Audit Approach: The proposal should set forth a detailed work plan, including an explanation of the audit methodology for providing the services required in this RFP.
Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.
D. City Staff Provide a detailed description of the firm's approach to communicating effectively with CITY staff and officials, other jurisdictional stakeholders, and the public, to facilitate successful delivery of assigned tasks. Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Services.
E. Specific Expertise Desired: The City has extensive use of Community Facility Districts (CFDs), Development Impact Fees (DIFs) and land secured bond issuances. Direct expertise in these areas is desired. Please provide your experience and knowledge in these areas.
F. Key Personnel: This section shall identify the Partner, Manager, and other key personnel and any subconsultants assigned to the services. Provide information on the training, government auditing experience, and specialized skills of each person and whether each person is licensed to practice as a certified public accountant in California. In addition to this summary, full resumes should be provided.
G. Disclosure - Please disclose any and all past or current business and personal relationships with any current Beaumont elected official, appointed official, City employee, or family member of any current Beaumont elected official, appointed official, or City employee.
Any past or current business relationship may not disqualify the firm from consideration.
H. References - For the firm's office that will be assigned responsibility for the audit, provide a list of the most significant engagements performed in the last five years that are similar to the engagement described in this Request for Proposal. Indicate the scope of work, dates, engagement partners, total hours and contact information for the client.
I. Overview and Scope of Services - Provide a description of the tasks, sub -tasks, and deliverables that will be provided. The Scope of Work should be presented in a logical format that can be easily attached to the Professional Services Agreement (PSA). The request for Proposals is for
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City of Beaumont Financial Auditing Services
Request for Proposal BEAUMONT
Professional Auditing Services as set forth in Exhibit A — Scope of Services.
J. Cost Summary - The Cost Summary should contain, itemized pricing for each of the five potential fiscal years. The total maximum annual price should contain all direct and indirect costs, including out-of-pocket expenses. Please use the Cost Summary (Exhibit B) to submit pricing. In your proposal, please indicate any specific costing elements such as footnote disclosures that impact the overall cost, such as preparation of Single Audit.
K. Hours - The proposal should include the anticipated number of hours and distribution by staff classification. The proposal should also include a schedule of rates by professional staff classifications for audit services and consulting services. Please indicate if your proposal includes a "not to exceed" quote.
L. Signature - The response shall be signed by an official authorized to bind the firm and shall contain a statement to the effect that the proposal is valid for ninety (90) days.
M. Special Considerations - The City will send its annual comprehensive financial report to the Government Finance Officers Association of the United States and Canada for review in their Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City of Beaumont to meet the requirements and time deadline of this program.
N. Timing Considerations — The selected audit firm must ensure the timely completion of all audits tasks and deliverables, adhering to the City's deadline of November 30th for final report submission to City Council.
O. Other - Any other information that should be considered, such as any special services or customer service philosophy, which defines your firm's practice.
P. Insurance: The firm will be required to have General liability insurance, professional liability insurance, worker's compensation, and vehicle coverage including comprehensive and collision insurance naming the CITY of Beaumont as additional insured. The proposal shall state whether such insurances will be in force at the time of contract execution.
Key Milestones for Deliverables
A. Entrance conference as soon as practicable after contract execution in 2025.
The purpose of this meeting will be to discuss any prior audit problems and the interim work to be performed. This meeting will also be used to establish overall liaison for the audit and to make arrangements for work space and other needs of the auditor. The auditor shall provide both a detailed audit plan and a list of all schedules to be prepared by the City of Beaumont for the interim audit.
A. Interim fieldwork between April and May.
B. Interim exit conference will occur on the last day of associated fieldwork.
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F r, N .,
Financial Auditing Services
The purpose of this meeting will be to summarize the results of the preliminary tests of the key internal controls and to discuss a written report of items of concern or other matters to be tested.
C. Detailed Audit Plan to be provided within two (2) weeks of conclusion of Interim audit.
The auditor shall provide both a detailed audit plan and a list of all schedules to be prepared by the City for the final phase of the audit.
D. Entrance conference to commence final audit work by October 6, 2025, and on or before the first week in October for subsequent years.
The purpose of this meeting will be to discuss prior audit problems and the audit work to be performed, and the accounting structure and system. This meeting will also be used to establish overall liaison for the audit and to make arrangements for work space and other needs of the auditor.
Progress conference with the Finance Director and staff will be held at least every two weeks starting when the auditors begin final audit fieldwork and continuing through issuance. An exit conference will also be held with the Finance Director and staff at the conclusion of field work to summarize the results of the field work and review significant findings
E. Fieldwork to commence the week of the entrance conference and is to conclude within three (3) weeks.
F. Exit conference to occur on final day of fieldwork.
The purpose of this meeting will be to summarize the results of the field work and to review significant findings. The auditor shall have drafts of the audit reports and recommendations to management available for review by the Finance Director and designees by this date.
Please also provide a listing of outstanding issues that have not been resolved during the audit.
G. Draft Reports to be reviewed by City Staff within three (3) weeks of fieldwork.
H. City to provide the following report edit to auditor within one (1) week of receipt of draft reports:
1. Report Draft changes
2. Management Discussion and Analysis
3. Transmittal Letter
4. Responses to all the outstanding items
I. Auditor provides all final reports to City two (2) weeks prior to issuance for final review.
J. Auditor to issue opinions for all the reports
1. Comprehensive Annual Financial Report — on or before November 30tH
2. Memorandum of Internal Control — concurrent with ACFR issuance each year
3. Required Communications — concurrent with ACFR issuance each year
4. Single Audit Report — on or before March 15th each year
5. Appropriation Limit AUP — concurrent with ACFR issuance each year
City of Beaumont
Request for Proposal
Response Submittal
BEAUMONT
r.n F O PN .,
Financial Auditing Services
A11 questions or requests for clarifications regarding this RFP shall be submitted on planetbids by 5:00 p.m. PST January 03, 2025. Responses to all questions will be posted on the same website to allow all users to review the City's responses to all questions within one (1) week of the question due date.
*DUE DATE FOR QUESTIONS IS, JANUARY 03, 2025 BY 5:00 P.M. * Submit one (1) digital copy of proposal and one (1) digital copy of the cost proposal in PDF format on Planetbids in accordance with the proposal submission deadline, which is 12:00 pm PST on JANUARY 17, 2025. Proposal must be titled "Proposal for professional auditing services" and the cost proposal must be titled "Cost proposal for professional auditing services" A11 costs associated with preparation of any proposal shall be the sole responsibility of the proposer. *DUE DATE FOR PROPOSALS IS JANUARY 17, 2025 BY 12:00 P.M. * By proposing on this project, you are indicating that you agree to all terms and conditions of the City's Professional Services Agreement, which is attached to this RFP as Exhibit A.
No RFC or questions will be accepted after 5:00 p.m. on January 03, 2025. All RFC responses will be posted on the CITY's Planet Bids Portal by January 10, 2025.
No postmarked proposals will be accepted. Once submitted, proposals, including the composition of the consulting staff, cannot be altered without prior written consent of the CITY.
If prior to the date fixed for submission of Proposals, a prospective Company discovers any ambiguity, conflict, discrepancy, omission or other errors in this RFP or any of its appendices, exhibits or attachments, the Company shall immediately notify the City of such error in writing and request modification or clarification of the document. Modifications shall be made by written Addenda to the RFP.
If a Company fails to notify the City, prior to the date fixed for submissions of Proposals, of an error in the RFP known to the Company, or an error that reasonably should have been known to the Company, the Company shall submit its Proposal at its own risk, and if the Company is awarded a Contract, it shall not be entitled to additional compensation or time by reason of the error or its later correction.
All communications regarding technical, scope, and/or project related questions and requests for clarifications, changes, exceptions, and deviations to the terms and conditions set forth in this RFP shall be submitted via "Q&A" through the City's Electronic Bidding System, Planetbids, before the deadline and according to these specifications herein. Any and all other bidding
City of Beaumont
Request for Proposal
BEAUMONT
communications shall only be with Raveena Chara, Procurement Contract Specialist, [email protected]
Financial Auditing Services
The Final day for receipt of questions from the Proposer shall be on or before the due date indicated in the RFP event schedule section below. To ensure fairness and avoid misunderstandings, all communications must be in written format and submitted only in the format set forth above. Any verbal communications will not be considered or responded to. All questions received by the due date will be logged and reviewed
RFP Project Schedule
Event
Date
RFP Issued
Friday, December, 6, 2024
Questions Due
Friday, January 3, 2025
Responses to questions provided by
Friday, January 10, 2025
Submittals Due
Friday, January 17, 2025, 12:00 p.m.
Staff Review
January 20,2025 to January 24, 2025
Presentations/Interview
Week of February 3, 2025
Contractor Selection
Monday, February 10, 2025
City Council review/approval
Tuesday, March 4, 2025
Interim Fieldwork begins
April or May 2025
Confidentiality
Prior to the proposal submittal deadline, all proposals will be designated confidential to the extent permitted by the California Public Records Act. After the proposal submittal deadline, all responses will be regarded as public records and will be subject to review by the public. Any language purported to render confidential all or portions of the proposals will be regarded as non- effective and will be disregarded.
Amendments to Request for Proposals
The CITY reserves the right to amend the RFP by addendum prior to the final proposal submittal date. The addenda will be posted on the CITY's Planet Bids Portal:
https://vendors.planetbids.com/porta1/66785/bo/bo-search Page of 789
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BEAUMONT
r.n F O PN .,
City of Beaumont Rights and Options
Financial Auditing Services
This RFP does not commit the City of Beaumont to award a contract or to pay any cost incurred with the preparation of a proposal or contract for services described herein. The City may, in its sole discretion and without any obligation to act reasonably, reject any and all proposals, waive informalities and minor irregularities in any proposal reviewed, negotiate with any qualified source submitting a proposal, extend deadlines, and/or request additional information.
Subsequent to negotiations, prospective trustees may be required to submit revisions to their proposals. The City may reject any proposal that does not conform to the instructions provided in this RFP. Additionally, the City reserves the right to negotiate all final terms and conditions of any proposal received before entering into final contract.
The City reserves the right to postpone selection for its own convenience, to withdraw this RFP at any time, and to reject any and all proposals without indicating any reason for such rejection.
As a function of the RFP process, the City of Beaumont reserves the right to remedy technical errors in response to the RFP and to modify the published scope of services and scope of work.
Proposals submitted in response to the RFP will not be returned.
The City of Beaumont reserves the right to reject any or all responses, to waive any informality in any responses, and to select the vendor that best meets the City's needs.
There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. Materials submitted by respondents are subject to public inspection under the California Public Records Act (Government Code Sec. 6250 et seq.) unless exempt. Any language purporting to render the entire proposal confidential or proprietary will be ineffective and will be disregarded.
All property rights, including publication rights of all reports produced by respondents in connection with services performed under this agreement will be vested in the City. In addition, respondents will not publish or release any of the results of its examination without the express written permission of the City.
Responses must be submitted no later than the date and time stated on this RFP. Responses shall be reviewed and rated as set forth in the Selection Process section of this RFP. The City will then determine which firm best meets the City's requirements.
During the evaluation process, the City reserves the right (where it may serve the City's best interest) to request additional information or clarification from respondents. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether the proposal was selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals, unless clearly and specifically
City of Beaumont
Request for Proposal
BEAUMONT
noted in the proposal as submitted and confirmed in the contract between the City and the firm selected.
Financial Auditing Services
The City reserves the right to negotiate final pricing with the most qualified firm. The City may invite selected firms to meet with the evaluation team on or around the week of February 10, 2025, at no additional cost to the City.
The City's standard Contract Services Agreement is included as Exhibit C. Upon award of the contract, it is expected that the successful proposer will accept the Agreement terms and conditions "as is" without modification. Any contract modifications are to be stated upfront, at the time of submittal.
Any costs incurred in the preparation of the response, presentation to the City, travel in conjunction with such presentations, or samples of items shall be the responsibility of the respondent. The City assumes no responsibility and no liability for costs incurred by respondents prior to issuance of a contract.
The proposer shall furnish the City with such additional information as the City may reasonably require.
Conflict of Interest
The Consultant shall disclose any personal or professional financial, business, or other relationships with the CITY that may have an impact on the outcome of this contract or any resulting project. The consultant shall also list current clients who may have a financial interest in the outcome of this contract.
Proposal Evaluation/Selection
Staff will review the proposals and make a recommendation to the City Council for review (tentatively scheduled for March 4, 2025). The City intends to evaluate the proposals based upon the data presented in response to the RFP. The following general selection criteria will be used to evaluate each proposal:
1. Ability to meet service requirements; understanding the needs and requirements of the City; scope and services offered.
2. Experience, qualifications and knowledge of key personnel; references for similar work completed within the last three years. (Particular emphasis will be placed in the area of customer support.)
3. Proposed pricing.
4. Completeness of responses to the Request for Proposals The CITY intends to engage the most qualified consultant available who demonstrates a thorough understanding of the CITY' s needs. CITY staff will use the following criteria to evaluate the proposals:
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F r, N .,
Financial Auditing Services
Criteria
Points
Understanding of the Scope of Services
15 Demonstrated Professional Skills and Credentials
25 Related Experience and Previous Projects
20 Proposed Approach to Performing the Services
15 Proposed Pricing
25 Total
100
The CITY may request a qualification interview with the highest -ranked consultant(s) prior to determining the final ranking. This selection will be conducted according to the CITY's adopted procedures. The CITY may select the top two firms and enter into negotiation. The CITY reserves the right to reject any and all proposals.
Exhibits
A. Scope of Services
B. Cost Summary
C. Sample Professional Services Agreement (PSA)
City of Beaumont
Request for Proposal
Financial Auditing Services
BEAUMONT
r. \ F r, N .,
END OF REQUEST FOR PROPOSAL
EXHIBITS TO FOLLOW
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F JPA .,
EXHIBIT "A"
SCOPE OF SERVICES
(insert behind this page)
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F JPA .,
EXHIBIT A
Scope of Services
Financial Auditing Services
The City's goal is to provide the public and its constituents with a financial statement that gives complete, accurate and understandable information about the City's financial condition. The selected independent auditor will be required to perform the following tasks:
1. Annual Comprehensive Financial Report - Audit the Basic Financial Statements of the City to obtain reasonable assurance about whether the financial statements are free from material misstatement. Express an opinion on the fair presentation of the City's governmental activities, business -type activities, each major fund, and the aggregate remaining fund information in conformity with generally accepted accounting principles.
The Auditor shall also be responsible for performing certain limited procedures involving management's discussion and analysis (MD&A) and the required supplementary information (RSI) required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards.
A draft shall be issued twenty (20) days prior to the final report issue date to be available for presentation to the Finance and Audit Committee. The auditors' staff shall be available to resolve areas of concern relative to the discussion draft and/or financial statements. The final report is to be delivered by November 30, with earlier issuance encouraged when possible.
2. Single Audit Act Report (if required) — The audit firm will perform a single audit on the expenditures of federal grants in accordance with the provisions of the Single Audit Act Amendments of 1996 and the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations and render the appropriate audit reports on Internal Control over Finance Reporting based upon the audit of the City's financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, and internal Control over Compliance. The single audit report prepared and publish by the audit firm will include appropriate schedule of expenditures and material weaknesses and follow up on prior audit findings where required. If the City does not meet the minimum requirements to necessitate a single audit, the fees shall be adjusted accordingly. Additionally, the audit firm will submit the required information to the Federal Audit Clearinghouse.
A draft shall be issued fifteen (15) days prior to the final report issue date. The auditors' staff shall be available to resolve areas of concern relative to the discussion draft and/or financial statements. The final report is to be delivered on or before March 15.
3. A report on compliance and internal control over financial reporting based on an audit of the financial statements.
a. In the required report[s] on compliance and internal controls, the auditor shall communicate any reportable conditions found during the audit. A
City of Beaumont
Request for Proposal
Financial Auditing Services
BEAUMONT
r. \ F r, N .,
reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements.
b. Reportable conditions that are also material weaknesses shall be identified as such in the report. Nonreportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report[s] on compliance and internal controls. c. The report shall include all material instances of noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance and internal controls. The management letter shall be address to the City Manager. Prior to its release, City staff shall be given an opportunity to review and comment.
4. Updates — The firm selected is expected to keep the City abreast of new developments affecting municipal finance and reporting, Government Accounting Standards Board pronouncements, procedural changes for grants, etc. The City is requesting the firm to provide continuing professional development, up to 10 hours, as part of keeping the City updated. The firm is also expected to provide advice to City staff related to the proper accounting treatment for transactions as needed and without additional costs.
5. Other —The firm selected may also be asked to examine other reports or perform other services as required. The scope and compensation for any such request would be negotiated between the City and the Auditor.
Auditing Standards to be Followed
To meet the requirements of this Request for Proposal, the audit shall be performed in accordance with:
• Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants
• The standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States
• The provisions of the Federal Single Audit Act
• The provisions of the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations Reports to be Issued
Following completion of the audit and preparation of the fiscal year's financial statements and special purpose audits, the Auditor shall issue:
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F r, N .,
Financial Auditing Services
1. Reports on the fair presentation of the financial statements in accordance with auditing standards generally accepted in the United States of America as listed below: a. Annual Comprehensive Financial Report b. Single Audit Report
2. A report based on the internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards.
3. A report on the compliance with requirements that could have a direct and material effect on each major program and internal control over compliance in accordance with OMB Circular A-133 and on the schedule of expenditures of federal awards. Also included would be a schedule of findings and questioned costs associated with federal awards.
4. A Management Letter setting forth recommendations (as applicable) for improvements in the City's internal control, accounting procedures, and any other significant observations.
5. Reports to and communication with those charged with governance, as required by auditing standards.
6. Auditors shall be required to make immediate, written notification to the City Council, City Manager, and City Attorney of all irregularities and illegal acts or indications of illegal acts of which they become aware.
7. Any other reports that may become required as a result of a change in accounting standards or new pronouncements that become effective during the term of the engagement.
Other Communications
The Auditor shall make all communications to the City required by the audit standards under which the engagement is performed. Those communications include, but are not limited to:
• The Auditor's responsibility under generally accepted auditing standards. • Significant accounting policies.
• Management judgment and accounting estimates.
• Significant audit adjustments.
• Other information in documents containing audited financial statements. • Disagreements with management.
• Management consultation with other accountants.
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• Major issues discussed with management prior to retention. • Difficulties encountered in performing the audit.
• Errors, irregularities, and illegal acts.
Financial Auditing Services
The Auditor must be available to present the audit plan prior to beginning field work. In addition, the Auditor must be available to present all final reports to City management and the City Council as requested at no additional costs.
Working Paper Retention and Access to Working Papers
All work papers and reports must be retained, at the auditor's expense, for a minimum of five years (or the retention timeframe established by the professional standards, whichever is longer) unless the firm is notified in writing by the City of the need to extend the retention period. The work papers are subject to review by Federal and State agencies and other individuals designated by the City. Accordingly, the work papers will be made available upon request.
In addition, the firm will respond to the reasonable inquiries of successor auditors and allow successor auditors to review work papers.
Additional Consulting Hours
It is expected that the selected proposer will keep the City informed of new state and national developments affecting municipal finance and reporting, standards and trends including changes in federal/state grant program accounting and reporting requirements. This shall include at least one formal updating session per year with financial/accounting staff.
The scope of the audit must also include consulting time on subjects that could affect financial reports such as reviewing official statements for bond sales or answering payroll taxation issues, (this is in addition to consultations on matters directly relating to the audit and reports).
Journal Entries
All adjusting journal entries made by the independent auditors must be discussed and explained to the designated Finance Department personnel prior to recording. They should be in a format that shows the lowest level of posting detail needed for data entry in the general ledger system.
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F JPA .,
EXHIBIT B
Cost Summary
(insert behind this page)
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F JPA .,
Financial Auditing Services
EXHIBIT B
Cost Summary
NOT TO EXCEED PRICE FOR PROPOSED SERVICES SCHEDULE
In accordance with the Request for Proposal for Audit Services issued by City of Beaumont, the firm referenced below hereby submits the following cost proposal:
Basic Reports to Be Issued
City Audit, including ACFR and Related Reports
Total
Additional Audit Reports To Be Requeted At City Option
Single Audit and Related Reports
Annual Report of City Financial Transactions to State Controller Total
Year Fnded June 30th
2025 2026 2027 2028 2029
Please include an hourly fee quotation and hours proposed for all positions to be assigned to the audit:
Hours Billing
Rate
Estimated Number of
Hours
Estimated Charges
Partners
Mangers
Senior Accountant
Staff Accountant
Clerical/Support Staff
Other
I hereby certify that the undersigned is authorized to represent the firm stated above, and empowered to submit this bid, and if selected, authorized to sign a contract with the City, for the services identified in the Request for Proposals.
Firm Name:
Signature:
Printed Name:
Title:
Date:
City of Beaumont Agreement #
C24-XX
EXHIBIT "C"
SAMPLE PROFESSIONAL SERVICES AGREEMENT (PSA)
(insert behind this page)
City of Beaumont Agreement #
O24-XX
AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR
THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR is made and effective as of the day of 20 , by and between the CITY OF BEAUMONT ("CITY") whose address is , Beaumont, California 92223 and, a , whose address is ("CONTRACTOR").
RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:
A. CITY desires to engage CONTRACTOR to provide ; and
B. CONTRACTOR has made a proposal ("Proposal") to the CITY to provide such professional services, which Proposal is attached hereto as Exhibit "A" and incorporated herein by this reference; and
C. CONTRACTOR agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to CITY that CONTRACTOR possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows:
1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall automatically terminate after one (1) year(s) unless extended by the parties with the approval of the City Council of the CITY.
2. Services to be Performed. CONTRACTOR agrees to provide the services ("Services") per Exhibit "A". All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. CONTRACTOR designates as CONTRACTOR'S professional(s) responsible for overseeing the Services provided by CONTRACTOR.
3. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services; provided, however, that CONTRACTOR shall not subcontract any of the Services without the written consent of CITY.
4. Compensation.
4.01 CONTRACTOR shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the CITY. Notwithstanding
City of Beaumont Agreement #
C24-XX
anything in this Agreement to the contrary, total fees and charges paid by CITY to CONTRACTOR under this Agreement shall not exceed
dollars ($ . ).
4.02 CONTRACTOR shall not be compensated for any Services rendered nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the CITY, in writing.
4.03 CONTRACTOR shall submit to CITY, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The CITY shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. CITY shall have the right to review and audit all invoices prior to or after payment to CONTRACTOR. This review and audit may include, but not be limited to CITY' s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If CITY determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, CITY shall either return the bill to CONTRACTOR with a request for explanation or adjust the payment accordingly, and give notice to CONTRACTOR of the adjustment.
4.04 If the work is satisfactorily completed, CITY shall pay such invoice within thirty (30) days of its receipt. Should CITY dispute any portion of any invoice, CITY shall pay the undisputed portion within the time stated above, and at the same time advise CONTRACTOR in writing of the disputed portion.
5. Obligations of CONTRACTOR.
5.01 CONTRACTOR agrees to perform all Services in accordance with the terms and conditions of this Agreement and the Proposal. In the event that the terms of the Proposal shall conflict with the terms of this Agreement or contain additional terms that purport to bind the CITY other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.
5.02 Except as otherwise agreed by the parties, CONTRACTOR will supply all personnel, materials and equipment required to perform the Services. CONTRACTOR shall provide its own offices, telephones, vehicles and computers and set its own work hours. CONTRACTOR will determine the method, details, and means of performing the Services under this Agreement.
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5.03 CONTRACTOR shall keep CITY informed as to the progress of the Services by means of regular and frequent consultations. Additionally, when requested by CITY, CONTRACTOR shall prepare written status reports.
5.04 CONTRACTOR is responsible for paying, when due, all income and other taxes, fees and withholding, including withholding state and federal taxes, social security, unemployment and worker's compensation, incurred as a result of the compensation paid under this Agreement. CONTRACTOR agrees to indemnify, defend and hold harmless CITY for any claims, costs, losses, fees, penalties, interest, or damages suffered by CITY resulting from CONTRACTOR's failure to comply with this provision.
5.05 In the event CONTRACTOR is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.
5.06 CONTRACTOR represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein. In the event CITY is required to obtain an approval or permit from another governmental entity, CONTRACTOR shall provide all necessary supporting documents to be filed with such entity.
5.07 CONTRACTOR shall be solely responsible for obtaining Employment Eligibility Verification information from CONTRACTOR's employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that CONTRACTOR's employees are eligible to work in the United States.
5.08 In the event that CONTRACTOR employs, contracts with, or otherwise utilizes any Ca1PERS retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the CITY and shall be subject to the CITY'S advance written approval.
5.09 Drug -free Workplace Certification. By signing this Agreement, the CONTRACTOR hereby certifies under penalty of perjury under the laws of the State of California that the CONTRACTOR will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug - free workplace.
5.10 CONTRACTOR shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder.
6. Insurance. CONTRACTOR hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal -OSHA.
Therefore, throughout the duration of this Agreement, CONTRACTOR hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached
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hereto as Exhibit "B" are copies of Certificates of Insurance and endorsements as required by Section 7.02. If existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.
CONTRACTOR shall provide the following types and amounts of insurance:
6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; CONTRACTOR agrees to have its insurer endorse the general liability coverage required herein to include as additional insured's CITY, its officials, employees and agents. CONTRACTOR also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.
6.02 Business Auto Coverage in an amount no less than $1 million per accident.
If CONTRACTOR or CONTRACTOR's employees will use personal autos in performance of the Services hereunder, CONTRACTOR shall provide evidence of personal auto liability coverage for each such person.
6.03 Workers' Compensation coverage for any of CONTRACTOR's employees that will be providing any Services hereunder. CONTRACTOR will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any workers' compensation will not limit the obligations of CONTRACTOR under this Agreement. CONTRACTOR expressly agrees not to use any statutory immunity defenses under such laws with respect to CITY, its employees, officials and agents.
6.04 Optional Insurance Coverage. Choose and check one: Required X /Not Required _; Errors and omissions insurance in a minimum amount of $2 million per occurrence to cover any negligent acts or omissions committed by CONTRACTOR, its employees and/or agents in the performance of any Services for CITY.
7. General Conditions
ertaining to Insurance Coverage
7.01 No liability insurance coverage provided shall prohibit CONTRACTOR from waiving the right of subrogation prior to a loss. CONTRACTOR waives all rights of subrogation against CITY regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do likewise.
7.02. Prior to beginning the Services under this Agreement, CONTRACTOR shall furnish CITY with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.
7.03. All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of "A:VII"). The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.
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7.04 Self-insurance does not comply with these insurance specifications.
CONTRACTOR acknowledges and agrees that that all insurance coverage required to be provided by CONTRACTOR or any subcontractor, shall apply first and on a primary, non- contributing basis in relation to any other insurance, indemnity or self-insurance available to CITY.
7.05 All coverage types and limits required are subject to approval, modification and additional requirements by CITY, as the need arises. CONTRACTOR shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect CITY's protection without CITY's prior written consent.
7.06 CONTRACTOR agrees to provide immediate notice to CITY of any claim or loss against CONTRACTOR or arising out of the Services performed under this Agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.
8. Indemnification.
8.01 CONTRACTOR and CITY agree that CITY, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by CONTRACTOR or any subcontractor or agent of either as set forth herein.
Accordingly, the provisions of this indemnity are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to CITY.
CONTRACTOR acknowledges that CITY would not enter into this Agreement in the absence of the commitment of CONTRACTOR to indemnify and protect CITY as set forth herein.
a. To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify and hold harmless CITY, its employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by CITY, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.
CONTRACTOR's obligation to defend, indemnify and hold harmless shall include any and all claims, suits and proceedings in which CONTRACTOR (and/or CONTRACTOR's agents and/or employees) is alleged to be an employee of CITY.
All obligations under this provision are to be paid by CONTRACTOR as they are incurred by CITY.
b. Without affecting the rights of CITY under any provision of this Agreement or this Section, CONTRACTOR shall not be required to indemnify and hold harmless CITY as set forth above for liability attributable solely to the fault of
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CITY, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction.
8A. Indemnification Design Professionals.
8A.01 In the event that CONTRACTOR is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, CONTRACTOR shall indemnify, and hold harmless the City, its officers, employees, trustees and members ("Indemnified Parties") from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney's and consultants' fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death ("Claim(s)"), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of CONTRACTOR, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties.
The cost to indemnify, hold harmless, and defend charged to CONTRACTOR shall not exceed CONTRACTOR'S proportionate percentage of fault.
9. Additional Services, Changes and Deletions.
9.01 In the event CONTRACTOR performs additional or different services than those described herein without the prior written approval of the City Manager and/or City Council of CITY, CONTRACTOR shall not be compensated for such services.
CONTRACTOR expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the CITY in writing.
9.02 CONTRACTOR shall promptly advise the City Manager and Finance Director of CITY as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of Services. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the CITY and/or City Council.
10. Termination of Agreement.
10.01 Notwithstanding any other provision of this Agreement, CITY, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days' written notice to CONTRACTOR.
10.02 In the event of termination, the payment of monies due CONTRACTOR for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement.
Immediately upon termination, CONTRACTOR agrees to promptly provide and deliver to CITY all original documents, reports, studies, plans, specifications and the like which are in the possession or control of CONTRACTOR and pertain to CITY.
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11. Status of CONTRACTOR.
11.01 CONTRACTOR shall perform the Services in CONTRACTOR's own way as an independent contractor, and in pursuit of CONTRACTOR's independent calling, and not as an employee of CITY. However, CONTRACTOR shall regularly confer with CITY's City Manager as provided for in this Agreement.
11.02 CONTRACTOR agrees that it is not entitled to the rights and benefits afforded to CITY's employees, including disability or unemployment insurance, workers' compensation, retirement, Ca1PERS, medical insurance, sick leave, or any other employment benefit. CONTRACTOR is responsible for providing, at its own expense, disability, unemployment, workers' compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.
11.03 CONTRACTOR hereby specifically represents and warrants to CITY that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of CITY and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services in the same geographic area where the CITY is located. Further, CONTRACTOR represents and warrants that the individual signing this Agreement on behalf of CONTRACTOR has the full authority to bind CONTRACTOR to this Agreement.
12. Ownership of Documents; Audit.
12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties and all other documents of any kind or nature prepared, developed or obtained by CONTRACTOR in connection with the performance of Services performed for the CITY shall become the sole property of CITY, and CONTRACTOR shall promptly deliver all such materials to CITY upon request. At the CITY'S sole discretion, CONTRACTOR may be permitted to retain original documents, and furnish reproductions to CITY upon request, at no cost to CITY.
12.02 Subject to applicable federal and state laws, rules and regulations, CITY shall hold all intellectual property rights to any materials developed pursuant to this Agreement. CONTRACTOR shall not such use data or documents for purposes other than the performance of this Agreement, nor shall CONTRACTOR release, reproduce, distribute, publish, adapt for future use or any other purposes, or otherwise use, any data or other materials first produced in the performance of this Agreement, nor authorize others to do so, without the prior written consent of CITY.
12.03 CONTRACTOR shall retain and maintain, for a period not less than four years following termination of this Agreement, all-time records, accounting records and vouchers and all other records with respect to all matters concerning Services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as CITY may deem necessary, CONTRACTOR shall make available to
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CITY's agents for examination all of such records and shall permit CITY's agents to audit, examine and reproduce such records.
13. Miscellaneous Provisions.
13.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by CONTRACTOR for CITY and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties.
13.02 CONTRACTOR shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of CITY. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.
13.03 CONTRACTOR shall timely file FPPC Form 700 Conflict of Interest Statements with CITY if required by California law and/or the CITY's conflict of interest policy.
13.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.
13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.
13.06 CONTRACTOR covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder.
CONTRACTOR further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.
13.07 CONTRACTOR has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. CONTRACTOR agrees that they are unaware of any financial or economic interest of any public officer or employee of the CITY relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the CITY may immediately terminate this Agreement by giving notice thereof. CONTRACTOR shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.
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13.08 Improper Consideration. CONTRACTOR shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the CITY in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by CITY. The CITY, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the CITY with respect to the proposal and award process of this Agreement or any CITY contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any CITY contract has been awarded. CONTRACTOR shall immediately report any attempt by any CITY officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from CONTRACTOR.
13.09 Severability. If any portion of this Agreement is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.
CITY: CONTRACTOR:
CITY OF BEAUMONT
By: By:
Print Name:
Title:
City of Beaumont
Request for Proposal
BEAUMONT
r. \ F r, N .,
Professional Auditing Services
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AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR
THIS AGREEMENT FOR PROFESSIONAL SERVICES BY INDEPENDENT CONTRACTOR is made and effective as of the 4th day of March, 2025, by and between the CITY OF BEAUMONT ("CITY") whose address is 550 E. 6th Street, Beaumont, California 92223 and, ROGERS ANDERSON MALODY & SCOTT LLP, whose address is 735 E.
Carnegie Drive, Suite 100 San Bernardino, CA 92408 ("CONTRACTOR").
RECITALS
This Agreement is entered into on the basis of the following facts, understandings and intentions of the parties to this Agreement:
A. CITY desires to engage CONTRACTOR to provide Financial Auditing services; and
B. CONTRACTOR has made a proposal ("Proposal") to the CITY to provide such professional services, which Proposal is attached hereto as Exhibit "B" and incorporated herein by this reference; and
C. CONTRACTOR agrees to provide such services pursuant to, and in accordance with, the terms and conditions of this Agreement, and represents and warrants to CITY that CONTRACTOR possesses the necessary skills, licenses, certifications, qualifications, personnel and equipment to provide such services.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and mutual covenants contained herein, CITY and CONTRACTOR agree as follows:
1. Term of Agreement. This Agreement is effective as of the date first above written and shall continue until terminated as provided for herein. Notwithstanding anything in this Agreement to the contrary, this Agreement shall continue for five (5) years, with an option to extend for one (1) one-year period by the parties with the approval of the of the City Council of the CITY.
2. Services to be Performed. CONTRACTOR agrees to provide the services ("Services") per Exhibit "B". All Services shall be performed in the manner and according to the timeframe set forth in the Proposal. CONTRACTOR designates Scott Manno as CONTRACTOR'S professional(s) responsible for overseeing the Services provided by CONTRACTOR.
3. Associates and Subcontractors. CONTRACTOR may, at CONTRACTOR's sole cost and expense, employ such competent and qualified independent associates, subcontractors and consultants as CONTRACTOR deems necessary to perform the Services; provided, however, that CONTRACTOR shall not subcontract any of the Services without the written consent of CITY.
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4. Compensation.
4.01 CONTRACTOR shall be paid at the rates set forth in the Proposal and shall not increase any rate without the prior written consent of the CITY. Notwithstanding anything in this Agreement to the contrary, total fees and charges paid by CITY to CONTRACTOR under this Agreement shall not exceed Three Hundred Thirty -Seven thousand One Hundred and Twenty-five dollars ($337,125).
4.02 CONTRACTOR shall not be compensated for any Services rendered nor reimbursed for any expenses incurred in excess of those authorized unless approved in advance by the CITY, in writing.
4.03 CONTRACTOR shall submit to CITY, on or before the fifteenth (15th) of each month, itemized invoices for the Services rendered in the previous month. The CITY shall not be obligated to pay any invoice that is submitted more than sixty (60) days after the due date of such invoice. CITY shall have the right to review and audit all invoices prior to or after payment to CONTRACTOR. This review and audit may include, but not be limited to CITY' s:
a. Determination that any hourly fee charged is consistent with this Agreement's approved hourly rate schedule;
b. Determination that the multiplication of the hours billed times the approved rate schedule dollars is correct;
c. Determination that each item charged is the usual, customary, and reasonable charge for the particular item. If CITY determines an item charged is greater than usual, customary, or reasonable, or is duplicative, ambiguous, excessive, or inappropriate, CITY shall either return the bill to CONTRACTOR with a request for explanation or adjust the payment accordingly, and give notice to CONTRACTOR of the adjustment.
4.04 CONTRACTOR shall receive payment by the CITY for the services provided as specified in Exhibit "B".
a. CONTRACTOR shall submit all invoices to the City of Beaumont's Accounts Payable at the email address listed below.
b. CONTRACTOR will send the original invoices to:
City of Beaumont
Attn: Finance Department -Accounts Payable
at
[email protected]
c. Each invoice shall contain a minimum of the following information:
invoice number and date; PO number (once issued by the CITY), remittance address; bill -to and ship -to addresses of ordering department/division; Agreement number (24-118), quantities; item descriptions, unit prices, extensions, sales/use tax if applicable, an invoice total, and any other
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information requested by the County.
4.04 If the work is satisfactorily completed, CITY shall pay such invoice within thirty (30) days of its receipt. Should CITY dispute any portion of any invoice, CITY shall pay the undisputed portion within the time stated above, and at the same time advise CONTRACTOR in writing of the disputed portion.
5. Obligations of CONTRACTOR.
5.01 CONTRACTOR agrees to perform all Services in accordance with the terms and conditions of this Agreement and the Proposal. In the event that the terms of the Proposal shall conflict with the terms of this Agreement or contain additional terms that purport to bind the CITY other than the Services to be rendered and the price for the Services, the terms of this Agreement shall govern and said additional or conflicting terms shall be of no force or effect.
5.02 Except as otherwise agreed by the parties, CONTRACTOR will supply all personnel, materials and equipment required to perform the Services. CONTRACTOR shall provide its own offices, telephones, vehicles and computers and set its own work hours. CONTRACTOR will determine the method, details, and means of performing the Services under this Agreement.
5.03 CONTRACTOR shall keep CITY informed as to the progress of the Services by means of regular and frequent consultations. Additionally, when requested by CITY, CONTRACTOR shall prepare written status reports.
5.04 CONTRACTOR is responsible for paying, when due, all income and other taxes, fees and withholding, including withholding state and federal taxes, social security, unemployment and worker's compensation, incurred as a result of the compensation paid under this Agreement. CONTRACTOR agrees to indemnify, defend and hold harmless CITY for any claims, costs, losses, fees, penalties, interest, or damages suffered by CITY resulting from CONTRACTOR's failure to comply with this provision.
5.05 In the event CONTRACTOR is required to prepare plans, drawings, specifications and/or estimates, the same shall be furnished in conformance with local, state and federal laws, rules and regulations.
5.06 CONTRACTOR represents that it possesses all required licenses necessary or applicable to the performance of Services under this Agreement and the Proposal and shall obtain and keep in full force and effect all permits and approvals required to perform the Services herein. In the event CITY is required to obtain an approval or permit from another governmental entity, CONTRACTOR shall provide all necessary supporting documents to be filed with such entity.
5.07 CONTRACTOR shall be solely responsible for obtaining Employment Eligibility Verification information from CONTRACTOR's employees, in compliance with the Immigration Reform and Control Act of 1986, Pub. L. 99-603 (8 U.S.C. 1324a), and shall ensure that CONTRACTOR's employees are eligible to work in the United
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States.
5.08 In the event that CONTRACTOR employs, contracts with, or otherwise utilizes any Ca1PERS retirees in completing any of the Services performed hereunder, such instances shall be disclosed in advance to the CITY and shall be subject to the CITY's advance written approval.
5.09 Drug -free Workplace Certification. By signing this Agreement, the CONTRACTOR hereby certifies under penalty of perjury under the laws of the State of California that the CONTRACTOR will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code, Section 8350 et seq.) and will provide a drug - free workplace.
5.10 CONTRACTOR shall comply with all applicable local, state and federal laws, rules, regulations, entitlements and/or permits applicable to, or governing the Services authorized hereunder.
6. Insurance. CONTRACTOR hereby agrees to be solely responsible for the health and safety of its employees and agents in performing the Services under this Agreement and shall comply with all laws applicable to worker safety including but not limited to Cal -OSHA.
Therefore, throughout the duration of this Agreement, CONTRACTOR hereby covenants and agrees to maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit "C" are copies of Certificates of Insurance and endorsements as required by Section 7.02. If existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.
CONTRACTOR shall provide the following types and amounts of insurance:
6.01 Commercial general liability insurance in an amount of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate; CONTRACTOR agrees to have its insurer endorse the general liability coverage required herein to include as additional insured's CITY, its officials, employees and agents. CONTRACTOR also agrees to require all contractors and subcontractors to provide the same coverage required under this Section 6.
6.02 Business Auto Coverage in an amount no less than $1 million per accident.
If CONTRACTOR or CONTRACTOR's employees will use personal autos in performance of the Services hereunder, CONTRACTOR shall provide evidence of personal auto liability coverage for each such person.
6.03 Workers' Compensation coverage for any of CONTRACTOR's employees that will be providing any Services hereunder. CONTRACTOR will have a state -approved policy form providing statutory benefits as required by California law. The provisions of any workers' compensation will not limit the obligations of CONTRACTOR under this Agreement. CONTRACTOR expressly agrees not to use any statutory immunity defenses under such laws with respect to CITY, its employees, officials and agents.
6.04 Optional Insurance Coverage. Choose and check one: Required X /Not Required _; Errors and omissions insurance in a minimum amount of $2 million per
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occurrence to cover any negligent acts or omissions committed by CONTRACTOR, its employees and/or agents in the performance of any Services for CITY.
7. General Conditions pertaining to Insurance Coverage
7.01 No liability insurance coverage provided shall prohibit CONTRACTOR from waiving the right of subrogation prior to a loss. CONTRACTOR waives all rights of subrogation against CITY regardless of the applicability of insurance proceeds and shall require all contractors and subcontractors to do likewise.
7.02. Prior to beginning the Services under this Agreement, CONTRACTOR shall furnish CITY with certificates of insurance, endorsements, and upon request, complete copies of all policies, including complete copies of all endorsements. All copies of policies and endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf.
7.03. All required policies shall be issued by a highly rated insurer with a minimum A.M. Best rating of "A:VII"). The insurer(s) shall be admitted and licensed to do business in California. The certificates of insurance hereunder shall state that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice has been given to CITY.
7.04 Self-insurance does not comply with these insurance specifications.
CONTRACTOR acknowledges and agrees that that all insurance coverage required to be provided by CONTRACTOR or any subcontractor, shall apply first and on a primary, non- contributing basis in relation to any other insurance, indemnity or self-insurance available to CITY.
7.05 All coverage types and limits required are subject to approval, modification and additional requirements by CITY, as the need arises. CONTRACTOR shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect CITY's protection without CITY's prior written consent.
7.06 CONTRACTOR agrees to provide immediate notice to CITY of any claim or loss against CONTRACTOR or arising out of the Services performed under this Agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.
8. Indemnification.
8.01 CONTRACTOR and CITY agree that CITY, its employees, agents and officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, defense costs, court costs or any other costs arising out of or in any way related to the performance of this Agreement by CONTRACTOR or any subcontractor or agent of either as set forth herein.
Accordingly, the provisions of this indemnity are intended by the parties to be interpreted
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and construed to provide the fullest protection possible under the law to CITY.
CONTRACTOR acknowledges that CITY would not enter into this Agreement in the absence of the commitment of CONTRACTOR to indemnify and protect CITY as set forth herein.
a. To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify and hold harmless CITY, its employees, agents and officials, from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, damages or costs of any kind, whether actual, alleged or threatened, actual attorneys' fees incurred by CITY, court costs, interest, defense costs, including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of, or in any way attributable actually, allegedly or impliedly, in whole or in part to the performance of this Agreement.
CONTRACTOR's obligation to defend, indemnify and hold harmless shall include any and all claims, suits and proceedings in which CONTRACTOR (and/or CONTRACTOR's agents and/or employees) is alleged to be an employee of CITY.
All obligations under this provision are to be paid by CONTRACTOR as they are incurred by CITY.
b. Without affecting the rights of CITY under any provision of this Agreement or this Section, CONTRACTOR shall not be required to indemnify and hold harmless CITY as set forth above for liability attributable solely to the fault of CITY, provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction.
8A. Indemnification Design Professionals.
8A.01 In the event that CONTRACTOR is a design professional under California Civil Code Section 2782.8 this Section 8A shall apply instead of Section 8. To the fullest extent permitted by California law and in accordance with California Civil Code section 2782.8, CONTRACTOR shall indemnify, and hold harmless the City, its officers, employees, trustees and members ("Indemnified Parties") from any and all actions, assessments, counts, citations, claims, costs, damages, demands, judgments, liabilities (legal, administrative or otherwise), losses, notices, expenses, fines, penalties, proceedings, responsibilities, violations, attorney's and consultants' fees and causes of action including, but not limited to those for, injury to property or persons, including personal injury and/or death ("Claim(s)"), to the extent that the Claim(s) arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of CONTRACTOR, its directors, officials, officers, employees and consultants arising out of, connected with, or resulting from the performance of the Services, the Project, or this Agreement. This indemnity excludes liability caused by the negligence or willful misconduct of any of the Indemnified Parties.
The cost to indemnify, hold harmless, and defend charged to CONTRACTOR shall not exceed CONTRACTOR'S proportionate percentage of fault.
9. Additional Services, Changes and Deletions.
9.01 In the event CONTRACTOR performs additional or different services than those described herein without the prior written approval of the City Manager and/or City
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Council of CITY, CONTRACTOR shall not be compensated for such services.
CONTRACTOR expressly waives any right to be compensated for services and materials not covered by the scope of this Agreement or authorized by the CITY in writing.
9.02 CONTRACTOR shall promptly advise the City Manager and Finance Director of CITY as soon as reasonably practicable upon gaining knowledge of a condition, event or accumulation of events which may affect the scope and/or cost of Services. All proposed changes, modifications, deletions and/or requests for additional services shall be reduced to writing for review and approval by the CITY and/or City Council.
10. Termination of Agreement.
10.01 Notwithstanding any other provision of this Agreement, CITY, at its sole option, may terminate this Agreement with or without cause, or for no cause, at any time by giving twenty (20) days' written notice to CONTRACTOR.
10.02 In the event of termination, the payment of monies due CONTRACTOR for undisputed Services performed prior to the effective date of such termination shall be paid within thirty (30) business days after receipt of an invoice as provided in this Agreement.
Immediately upon termination, CONTRACTOR agrees to promptly provide and deliver to CITY all original documents, reports, studies, plans, specifications and the like which are in the possession or control of CONTRACTOR and pertain to CITY.
11. Status of CONTRACTOR.
11.01 CONTRACTOR shall perform the Services in CONTRACTOR's own way as an independent contractor, and in pursuit of CONTRACTOR's independent calling, and not as an employee of CITY. However, CONTRACTOR shall regularly confer with CITY's City Manager as provided for in this Agreement.
11.02 CONTRACTOR agrees that it is not entitled to the rights and benefits afforded to CITY's employees, including disability or unemployment insurance, workers' compensation, retirement, Ca1PERS, medical insurance, sick leave, or any other employment benefit. CONTRACTOR is responsible for providing, at its own expense, disability, unemployment, workers' compensation and other insurance, training, permits, and licenses for itself and its employees and subcontractors.
11.03 CONTRACTOR hereby specifically represents and warrants to CITY that it possesses the qualifications and skills necessary to perform the Services under this Agreement in a competent, professional manner, without the advice or direction of CITY and that the Services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily applicable to an experienced and competent professional rendering the same or similar services in the same geographic area where the CITY is located. Further, CONTRACTOR represents and warrants that the individual signing this Agreement on behalf of CONTRACTOR has the full authority to bind CONTRACTOR to this Agreement.
12. Ownership of Documents; Audit.
City of Beaumont Agreement #
C25-03
12.01 All draft and final reports, plans, drawings, studies, maps, photographs, specifications, data, notes, manuals, warranties and all other documents of any kind or nature prepared, developed or obtained by CONTRACTOR in connection with the performance of Services performed for the CITY, except those items defined as audit documentation under professional standards promulgated by the American Institute of Certified Public Accountants (AICPA), which will be the property of CONTRACTOR, shall become the sole property of CITY, and CONTRACTOR shall promptly deliver all such materials to CITY upon request. At the CITY's sole discretion, CONTRACTOR may be permitted to retain original documents, and furnish reproductions to CITY upon request, at no cost to CITY. For the avoidance of doubt, the CITY shall retain exclusive ownership of the final audit report.
12.02 Subject to applicable federal and state laws, rules and regulations, CITY shall hold all intellectual property rights to any materials developed pursuant to this Agreement, except those items defined as audit documentation under professional standards promulgated by the AICPA, which will be the property of CONTRACTOR..- CONTRACTOR shall not such use data or documents for purposes other than the performance of this Agreement, nor shall CONTRACTOR release, reproduce, distribute, publish, adapt for future use or any other purposes, or otherwise use, any data or other materials first produced in the performance of this Agreement, nor authorize others to do so, without the prior written consent of CITY.
12.03 CONTRACTOR shall retain and maintain, for a period not less than four years following termination of this Agreement, all-time records, accounting records and vouchers and all other records with respect to all matters concerning Services performed, compensation paid and expenses reimbursed. At any time during normal business hours and as often as CITY may deem necessary, CONTRACTOR shall make available to CITY's agents for examination all of such records and shall permit CITY's agents to audit, examine and reproduce such records.
13. Miscellaneous Provisions.
13.01 This Agreement, which includes all attached exhibits, supersedes any and all previous agreements, either oral or written, between the parties hereto with respect to the rendering of Services by CONTRACTOR for CITY and contains all of the covenants and agreements between the parties with respect to the rendering of such Services in any manner whatsoever. Any modification of this Agreement will be effective only if it is in writing signed by both parties.
13.02 CONTRACTOR shall not assign or otherwise transfer any rights or interest in this Agreement without the prior written consent of CITY. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement.
13.03 CONTRACTOR shall timely file FPPC Form 700 Conflict of Interest Statements with CITY if required by California law and/or the CITY's conflict of interest policy.
City of Beaumont Agreement #
C25-03
13.04 If any legal action or proceeding, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which that party may be entitled.
13.05 This Agreement is made, entered into and shall be performed in the County of Riverside in the State of California and shall in all respects be interpreted, enforced and governed under the laws of the State of California. The parties agree that venue in any litigation between them shall be in Riverside County, California.
13.06 CONTRACTOR covenants that neither it nor any officer or principal of its firm has any interest, nor shall they acquire any interest, either directly or indirectly, which will conflict in any manner or degree with the performance of their Services hereunder.
CONTRACTOR further covenants that in the performance of this Agreement, no person having such interest shall be employed by it as an officer, employee, agent, or subcontractor.
13.07 CONTRACTOR has read and is aware of the provisions of Section 1090 et seq. and Section 87100 et seq. of the Government Code relating to conflicts of interest of public officers and employees. CONTRACTOR agrees that they are unaware of any financial or economic interest of any public officer or employee of the CITY relating to this Agreement. It is further understood and agreed that if such a financial interest does exist at the inception of this Agreement, the CITY may immediately terminate this Agreement by giving notice thereof. CONTRACTOR shall comply with the requirements of Government Code section 87100 et seq. and section 1090 in the performance of and during the term of this Agreement.
13.08 Improper Consideration. CONTRACTOR shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to, cash, discounts, services, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the CITY in an attempt to secure favorable treatment regarding this Agreement or any contract awarded by CITY. The CITY, by notice, may immediately terminate this Agreement if it determines that any improper consideration as described in the preceding sentence was offered to any officer, employee or agent of the CITY with respect to the proposal and award process of this Agreement or any CITY contract. This prohibition shall apply to any amendment, extension or evaluation process once this Agreement or any CITY contract has been awarded. CONTRACTOR shall immediately report any attempt by any CITY officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from CONTRACTOR.
13.09 Severability. If any portion of this Agreement is declared invalid, illegal or otherwise unenforceable by a court of competent jurisdiction, the entire balance of this Agreement not so affected shall remain in full force and effect.
City of Beaumont Agreement #
C25-03
IN WITNESS WHEREOF, the parties hereby have made and executed this Agreement to be effective as of the day and year first above written.
CITY: CONTRACTOR:
CITY OF BEAUMONT ROGERS ANDERSON MALODY &
SCOT ,LP.
By:
Mike Lara, City Mayor
Date:
ATTEST:
By:
Nicole Wheelwright, Deputy City Clerk
Date:
APPROVED AS TO FORM:
By:
John O. Pinkney, City Attorney
Date:
By:
Print Name: ✓Ge. `-W 044 Pt IA
Title: PA7/1A‘
Date: tvl ��
I
10
City of Beaumont Agreement #
C25-03
EXHIBIT "A"
REQUEST FOR PROPOSALS
(insert behind this page)
:=••••""*.--..........:1
BEAUMONT
CALIFORNIA
Request for Proposals
For
Financial Auditing Services
Website:
www.beaumontca.gov
htt
Proposals Due By:
12:00 pm
January 17, 2025
Contact:
Jennifer Ustation, Director of Finance
550 E. 6th Street - Beaumont, California 92223
'ustationna,beaumontca. 2,ov
3s://vendors.
RFP Available
Planet Bids Portal at
Dlanetbids.com/ Dorta1/66785/bo/bo-search
Address:
550 E. 6th Street
Beaumont, CA 92223
Phone:
951.769.8520
City of Beaumont
Request for Proposal
Table of Contents
Request for Proposal
BEAUMONT
-CALIFORNIA-
Financial Auditing Services
Introduction 3
Background 3
Additional responsibilities 4
Term 4
Proposal Requirements 5
Key Milestones for Deliverables 7
Response Submittal 9
Project Schedule 10
Confidentiality 10
Amendments to RFP .10
City of Beaumont Rights and Options 11
Conflict of Interest 12
Proposal Evaluation/Selection 13
Exhibit A
Scope of Services 15
Exhibit B
Cost Summary 20
Exhibit C
Professional Services Agreement 22
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
111Lruuuction
The City of Beaumont is requesting qualified public accounting firms to submit proposals to audit the City's financial statements for the five (5) fiscal years beginning with the year ending June 30, 2025, with the option of extending the contract for one (1) additional one-year period, at the City's sole discretion. These audits are to be performed in accordance with generally accepted auditing standards, Governmental Auditing Standards issued by the Comptroller General of the United States, and U.S. Office of Management and Budget (OMB) Circular A-133 Audits of States, Local Governments, and Non -Profit Organizations. Additional information is found in the Scopes of Services (Exhibit A).
All services provided by the Consultant shall be performed by individuals who meet the qualifications, education, and certification/licensing requirements for the position. The successful Consultant shall also have the resources to provide cost-effective and timely services, including providing customer service to the CITY.
Qualified firms that submit a proposal will be evaluated in accordance with the requirements defined within this RFP. The City reserves the right to waive any irregularity in any proposal, withdraw or amend this RFP or reject any proposal that does not comply with this RFP or City policies.
Background
The City of Beaumont is a general law city incorporated in 1912 currently serving a population of approximately 57,000, located in Western Riverside County. The City operates under a council- manager format of government which consists of a Mayor, Mayor Pro-Tem, three Councilmembers and the City Manager. The positions of Mayor and Mayor Pro-Tem are rotated among the elected Councilmembers. A City Clerk and Treasurer are elected positions, each for a four-year term.
In addition to its function as the governing body of the City, the City Council acts as the governing body for other separate entities: Beaumont Financing Authority, Beaumont Public Improvement Authority, Beaumont Parking Authority, Beaumont Transit System, and Beaumont Utility Authority. There is no requirement for separate financial reporting for these separate entities with one exception (Beaumont Transit System).
Official accounting records are on -site in the Finance Department, while some supporting information may be located in other departments within the City. Beaumont uses the Tyler Incode 10 accounting software and Enterprise for Fees. Payroll is processed in house through Tyler Incode 10.
Relevant operational detail for conducting the independent financial audit is provided as follows:
1. The Finance Department consists of the Finance Director, and eight (8) staff members responsible for accounting and financial reporting, budgeting, grants, accounts payable, revenue recording, banking and treasury investment, purchase order and project accounting tracking. Revenues are collected at various locations throughout the City and recorded into Tyler Incode 10 by non -finance department personnel.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
2. City Funds and Account Groups are as follows:
a. General Fund (1)
b. Internal Service Funds (1)
c. Special Revenue Funds (14)
d. Debt Service Fund (1)
e. Other Governmental Funds (14)
f. Capital Project Funds (2)
g. Enterprise Funds (2)
h. Agency Funds (4)
3. The City, organized into ten departments (Administration, Communications, Finance and Budget, IT, Economic Development, Risk and Human Resources, Community Development, Community Services, Public Safety, Public Works), provides a full range of municipal services. In addition, the City has component units including the Beaumont Utility Authority, Beaumont Financing Authority, Beaumont Public Financing Authority, Beaumont Parking Authority, and Beaumont Transit System. Public Safety Fire services are contracted with Cal Fire, but Animal Control, Code Enforcement, Police and Dispatch are performed by City employees.
4. The City's total expected payroll for the year ended June 30, 2025 is approximately $31.8 million, covering 247 budgeted full-time and part-time positions. The total municipal budget for the 2024-2025 fiscal year is approximately $96 million.
For further information, City's past two years ACFRs' and current and last year adopted budget are located on the City's website at: https://beaumontca.gov/921/Audits-and-Reports Rogers, Anderson, Malody and Scott, LLP served as the City's auditor in the past years.
Additional Responsibilities
The Consultant shall be responsible for completing the specified services in accordance with the CITY's Professional Services Agreement (PSA) by Independent Contractor, a sample of which is attached (Exhibit A).
Term
The term of the agreement shall be determined upon the need for services and consistent with the City's policies. The initial period of the contract is five (5) years, with one one-year extension as approved by the City Council, subject to agreement terms and the Beaumont Municipal Code.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
rrupusai requirements
Proposals shall clearly address all the information requested and describe the methodology to be used to accomplish each of the project tasks. Please note: this RFP cannot identify each specific, individual task required to successfully and completely implement this project. The CITY relies on the professionalism and competence of the selected firm to be knowledgeable of the general areas identified in the scope of services. The CITY will not approve addenda to the selected firm's agreement which do not involve a substantial change from the general scope of work identified in this RFP.
The proposal shall clearly address all the information requested herein. To achieve a uniform review process and obtain the maximum degree of comparability, it is required that proposals be organized and contain all information as specified below.
A. Cover Letter: Maximum of two pages serving as an Executive Summary which shall include an understanding of the scope of services. The RFP shall be transmitted with a cover letter that must be signed by an official authorized to bind the consultant contractually. That letter accompanying the RFP shall also provide the name, title, address, and telephone number of individuals with the authority to negotiate and contractually bind the consultant. The cover letter constitutes certification by the consultant, under penalty of perjury, that the consultant complies with nondiscrimination requirements of the State and Federal Government. An unsigned proposal or one signed by an individual unauthorized to bind the consultant may be rejected.
B. Introduction/Information:
Firms must provide the following information regarding the organization:
• Name
• Street Address
• City, State, Zip Code
• Corporate Structure
• State/Country of Incorporation
• Website
• Contact Information
In addition, please include the size of the firm, the size of the firm's governmental audit staff, and the location of the office from which the work on this engagement will be performed.
Firms should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards and the U.S. General Accounting Office's Government Auditing Standards (1994). Firms should provide an affirmative statement that the firm and all assigned key professional staff are properly licensed to practice in California.
Firms shall submit a copy of its most recent quality control review. Firms shall provide information on the circumstances and status of any disciplinary action taken or pending against
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
the firm with state regulatory bodies or professional organizations, as well as any pending or settled litigation, during the past three years.
C. Audit Approach: The proposal should set forth a detailed work plan, including an explanation of the audit methodology for providing the services required in this RFP.
Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.
D. City Staff: Provide a detailed description of the firm's approach to communicating effectively with CITY staff and officials, other jurisdictional stakeholders, and the public, to facilitate successful delivery of assigned tasks. Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Services.
E. Specific Expertise Desired: The City has extensive use of Community Facility Districts (CFDs), Development Impact Fees (DIFs) and land secured bond issuances. Direct expertise in these areas is desired. Please provide your experience and knowledge in these areas.
F. Key Personnel: This section shall identify the Partner, Manager, and other key personnel and any subconsultants assigned to the services. Provide information on the training, government auditing experience, and specialized skills of each person and whether each person is licensed to practice as a certified public accountant in California. In addition to this summary, full resumes should be provided.
G. Disclosure - Please disclose any and all past or current business and personal relationships with any current Beaumont elected official, appointed official, City employee, or family member of any current Beaumont elected official, appointed official, or City employee.
Any past or current business relationship may not disqualify the firm from consideration.
H. References - For the firm's office that will be assigned responsibility for the audit, provide a list of the most significant engagements performed in the last five years that are similar to the engagement described in this Request for Proposal. Indicate the scope of work, dates, engagement partners, total hours and contact information for the client.
I. Overview and Scope of Services - Provide a description of the tasks, sub -tasks, and deliverables that will be provided. The Scope of Work should be presented in a logical format that can be easily attached to the Professional Services Agreement (PSA). The request for Proposals is for Professional Auditing Services as set forth in Exhibit A — Scope of Services.
J. Cost Summary - The Cost Summary should contain, itemized pricing for each of the five potential fiscal years. The total maximum annual price should contain all direct and indirect costs, including out-of-pocket expenses. Please use the Cost Summary (Exhibit B) to submit pricing. In your proposal, please indicate any specific costing elements such as footnote disclosures that impact the overall cost, such as preparation of Single Audit.
K. Hours - The proposal should include the anticipated number of hours and distribution by
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
staff classification. The proposal should also include a schedule of rates by professional staff classifications for audit services and consulting services. Please indicate if your proposal includes a "not to exceed" quote.
L. Signature - The response shall be signed by an official authorized to bind the firm and shall contain a statement to the effect that the proposal is valid for ninety (90) days.
M. Special Considerations - The City will send its annual comprehensive financial report to the Government Finance Officers Association of the United States and Canada for review in their Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City of Beaumont to meet the requirements and time deadline of this program.
N. Timing Considerations — The selected audit firm must ensure the timely completion of all audits tasks and deliverables, adhering to the City's deadline of November 30th for final report submission to City Council.
O. Other - Any other information that should be considered, such as any special services or customer service philosophy, which defines your firm's practice.
P. Insurance: The firm will be required to have General liability insurance, professional liability insurance, worker's compensation, and vehicle coverage including comprehensive and collision insurance naming the CITY of Beaumont as additional insured. The proposal shall state whether such insurances will be in force at the time of contract execution.
Key Milestones for Deliverables
A. Entrance conference as soon as practicable after contract execution in 2025.
The purpose of this meeting will be to discuss any prior audit problems and the interim work to be performed. This meeting will also be used to establish overall liaison for the audit and to make arrangements for work space and other needs of the auditor. The auditor shall provide both a detailed audit plan and a list of all schedules to be prepared by the City of Beaumont for the interim audit.
A. Interim fieldwork between April and May.
B. Interim exit conference will occur on the last day of associated fieldwork.
The purpose of this meeting will be to summarize the results of the preliminary tests of the key internal controls and to discuss a written report of items of concern or other matters to be tested.
C. Detailed Audit Plan to be provided within two (2) weeks of conclusion of Interim audit.
The auditor shall provide both a detailed audit plan and a list of all schedules to be prepared by the City for the final phase of the audit.
D. Entrance conference to commence final audit work by October 6, 2025, and on or before the first week in October for subsequent years.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
The purpose of this meeting will be to discuss prior audit problems and the audit work to be performed, and the accounting structure and system. This meeting will also be used to establish overall liaison for the audit and to make arrangements for work space and other needs of the auditor.
Progress conference with the Finance Director and staff will be held at least every two weeks starting when the auditors begin final audit fieldwork and continuing through issuance. An exit conference will also be held with the Finance Director and staff at the conclusion of field work to summarize the results of the field work and review significant findings
E. Fieldwork to commence the week of the entrance conference and is to conclude within three (3) weeks.
F. Exit conference to occur on final day of fieldwork.
The purpose of this meeting will be to summarize the results of the field work and to review significant findings. The auditor shall have drafts of the audit reports and recommendations to management available for review by the Finance Director and designees by this date.
Please also provide a listing of outstanding issues that have not been resolved during the audit.
G. Draft Reports to be reviewed by City Staff within three (3) weeks of fieldwork.
H. City to provide the following report edit to auditor within one (1) week of receipt of draft reports:
1. Report Draft changes
2. Management Discussion and Analysis
3. Transmittal Letter
4. Responses to all the outstanding items
I. Auditor provides all final reports to City two (2) weeks prior to issuance for final review.
J. Auditor to issue opinions for all the reports
1. Comprehensive Annual Financial Report — on or before November 30th.
2. Memorandum of Internal Control — concurrent with ACFR issuance each year
3. Required Communications — concurrent with ACFR issuance each year
4. Single Audit Report — on or before March 15th each year
5. Appropriation Limit AUP — concurrent with ACFR issuance each year Response Submittal
All questions or requests for clarifications regarding this RFP shall be submitted on planetbids by 5:00 p.m. PST January 03, 2025. Responses to all questions will be posted on the same website to allow all users to review the City's responses to all questions within one (1) week of the question due date.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
*DUE DATE FOR QUESTIONS IS, JANUARY 03, 2025 BY 5:00 P.M. * Submit one (1) digital copy of proposal and one (1) digital copy of the cost proposal in PDF format on Planetbids in accordance with the proposal submission deadline, which is 12:00 pm PST on JANUARY 17, 2025. Proposal must be titled "Proposal for professional auditing services" and the cost proposal must be titled "Cost proposal for professional auditing services" All costs associated with preparation of any proposal shall be the sole responsibility of the proposer. *DUE DATE FOR PROPOSALS IS JANUARY 17, 2025 BY 12:00 P.M. * By proposing on this project, you are indicating that you agree to all terms and conditions of the City's Professional Services Agreement, which is attached to this RFP as Exhibit A.
No RFC or questions will be accepted after 5:00 p.m. on January 03, 2025. All RFC responses will be posted on the CITY's Planet Bids Portal by January 10, 2025.
No postmarked proposals will be accepted. Once submitted, proposals, including the composition of the consulting staff, cannot be altered without prior written consent of the CITY.
If prior to the date fixed for submission of Proposals, a prospective Company discovers any ambiguity, conflict, discrepancy, omission or other errors in this RFP or any of its appendices, exhibits or attachments, the Company shall immediately notify the City of such error in writing and request modification or clarification of the document. Modifications shall be made by written Addenda to the RFP.
If a Company fails to notify the City, prior to the date fixed for submissions of Proposals, of an error in the RFP known to the Company, or an error that reasonably should have been known to the Company, the Company shall submit its Proposal at its own risk, and if the Company is awarded a Contract, it shall not be entitled to additional compensation or time by reason of the error or its later correction.
All communications regarding technical, scope, and/or project related questions and requests for clarifications, changes, exceptions, and deviations to the terms and conditions set forth in this RFP shall be submitted via "Q&A" through the City's Electronic Bidding System, Planetbids, before the deadline and according to these specifications herein. Any and all other bidding communications shall only be with Raveena Chara, Procurement Contract Specialist, [email protected]
The Final day for receipt of questions from the Proposer shall be on or before the due date indicated in the RFP event schedule section below. To ensure fairness and avoid misunderstandings, all communications must be in written format and submitted only in the format set forth above. Any verbal communications will not be considered or responded to. All questions received by the due date will be logged and reviewed
RFP Project Schedule
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
Event
Date
RFP Issued
Friday, December, 6, 2024
Questions Due
Friday, January 3, 2025
Responses to cuestions provided by
Friday, January 10, 2025
Submittals Due
Friday, January 17, 2025, 12:00 p.m.
Staff Review
January 20,2025 to January 24, 2025
Presentations/Interview
Week of February 3, 2025
Contractor Selection
Monday, February 10, 2025
City Council review/approval
Tuesday, March 4, 2025
Interim Fieldwork begins
April or May 2025
Confidentiality
Prior to the proposal submittal deadline, all proposals will be designated confidential to the extent permitted by the California Public Records Act. After the proposal submittal deadline, all responses will be regarded as public records and will be subject to review by the public. Any language purported to render confidential all or portions of the proposals will be regarded as non- effective and will be disregarded.
Amendments to Request for Proposals
The CITY reserves the right to amend the RFP by addendum prior to the final proposal submittal date. The addenda will be posted on the CITY's Planet Bids Portal:
https://vendors.planetbids.com/porta1/66785/bo/bo-search City of Beaumont Rights and Options
This RFP does not commit the City of Beaumont to award a contract or to pay any cost incurred
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
with the preparation of a proposal or contract for services described herein. The City may, in its sole discretion and without any obligation to act reasonably, reject any and all proposals, waive informalities and minor irregularities in any proposal reviewed, negotiate with any qualified source submitting a proposal, extend deadlines, and/or request additional information.
Subsequent to negotiations, prospective trustees may be required to submit revisions to their proposals. The City may reject any proposal that does not conform to the instructions provided in this RFP. Additionally, the City reserves the right to negotiate all final terms and conditions of any proposal received before entering into final contract.
The City reserves the right to postpone selection for its own convenience, to withdraw this RFP at any time, and to reject any and all proposals without indicating any reason for such rejection.
As a function of the RFP process, the City of Beaumont reserves the right to remedy technical errors in response to the RFP and to modify the published scope of services and scope of work.
Proposals submitted in response to the RFP will not be returned.
The City of Beaumont reserves the right to reject any or all responses, to waive any informality in any responses, and to select the vendor that best meets the City's needs.
There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. Materials submitted by respondents are subject to public inspection under the California Public Records Act (Government Code Sec. 6250 et seq.) unless exempt. Any language purporting to render the entire proposal confidential or proprietary will be ineffective and will be disregarded.
All property rights, including publication rights of all reports produced by respondents in connection with services performed under this agreement will be vested in the City. In addition, respondents will not publish or release any of the results of its examination without the express written permission of the City.
Responses must be submitted no later than the date and time stated on this RFP. Responses shall be reviewed and rated as set forth in the Selection Process section of this RFP. The City will then determine which firm best meets the City's requirements.
During the evaluation process, the City reserves the right (where it may serve the City's best interest) to request additional information or clarification from respondents. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.
The City reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether the proposal was selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposals, unless clearly and specifically noted in the proposal as submitted and confirmed in the contract between the City and the firm selected.
The City reserves the right to negotiate final pricing with the most qualified firm. The City may invite selected firms to meet with the evaluation team on or around the week of February 10, 2025,
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
at no additional cost to the City.
The City's standard Contract Services Agreement is included as Exhibit C. Upon award of the contract, it is expected that the successful proposer will accept the Agreement terms and conditions "as is" without modification. Any contract modifications are to be stated upfront, at the time of submittal.
Any costs incurred in the preparation of the response, presentation to the City, travel in conjunction with such presentations, or samples of items shall be the responsibility of the respondent. The City assumes no responsibility and no liability for costs incurred by respondents prior to issuance of a contract.
The proposer shall furnish the City with such additional information as the City may reasonably require.
Conflict of Interest
The Consultant shall disclose any personal or professional financial, business, or other relationships with the CITY that may have an impact on the outcome of this contract or any resulting project. The consultant shall also list current clients who may have a financial interest in the outcome of this contract.
Proposal Evaluation/Selection
Staff will review the proposals and make a recommendation to the City Council for review
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
(tentatively scheduled for March 4, 2025). The City intends to evaluate the proposals based upon the data presented in response to the RFP. The following general selection criteria will be used to evaluate each proposal:
1. Ability to meet service requirements; understanding the needs and requirements of the City; scope and services offered.
2. Experience, qualifications and knowledge of key personnel; references for similar work completed within the last three years. (Particular emphasis will be placed in the area of customer support.)
3. Proposed pricing.
4. Completeness of responses to the Request for Proposals The CITY intends to engage the most qualified consultant available who demonstrates a thorough understanding of the CITY's needs. CITY staff will use the following criteria to evaluate the proposals:
Criteria
Points
Understanding of the Scope of Services
15 Demonstrated Professional Skills and Credentials
25 Related Experience and Previous Projects
20 Proposed Approach to Performing the Services
15 Proposed Pricing
25 Total
100
The CITY may request a qualification interview with the highest -ranked consultant(s) prior to determining the final ranking. This selection will be conducted according to the CITY's adopted procedures. The CITY may select the top two firms and enter into negotiation. The CITY reserves the right to reject any and all proposals.
Exhibits
A. Scope of Services
B. Cost Summary
C. Sample Professional Services Agreement (PSA)
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
END OF REQUEST FOR PROPOSAL
EXHIBITS TO FOLLOW
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
EXHIBIT "A"
SCOPE OF SERVICES
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Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
EXHIBIT A
Scope of Services
The City's goal is to provide the public and its constituents with a financial statement that gives complete, accurate and understandable information about the City's financial condition. The selected independent auditor will be required to perform the following tasks:
1. Annual Comprehensive Financial Report - Audit the Basic Financial Statements of the City to obtain reasonable assurance about whether the financial statements are free from material misstatement. Express an opinion on the fair presentation of the City's governmental activities, business -type activities, each major fund, and the aggregate remaining fund information in conformity with generally accepted accounting principles.
The Auditor shall also be responsible for performing certain limited procedures involving management's discussion and analysis (MD&A) and the required supplementary information (RSI) required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards.
A draft shall be issued twenty (20) days prior to the final report issue date to be available for presentation to the Finance and Audit Committee. The auditors' staff shall be available to resolve areas of concern relative to the discussion draft and/or financial statements. The final report is to be delivered by November 30, with earlier issuance encouraged when possible.
2. Single Audit Act Report (if required) — The audit firm will perform a single audit on the expenditures of federal grants in accordance with the provisions of the Single Audit Act Amendments of 1996 and the provisions of U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations and render the appropriate audit reports on Internal Control over Finance Reporting based upon the audit of the City's financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, and internal Control over Compliance. The single audit report prepared and publish by the audit firm will include appropriate schedule of expenditures and material weaknesses and follow up on prior audit findings where required. If the City does not meet the minimum requirements to necessitate a single audit, the fees shall be adjusted accordingly. Additionally, the audit firm will submit the required information to the Federal Audit Clearinghouse.
A draft shall be issued fifteen (15) days prior to the final report issue date. The auditors' staff shall be available to resolve areas of concern relative to the discussion draft and/or financial statements. The final report is to be delivered on or before March 15.
3. A report on compliance and internal control over financial reporting based on an audit of the financial statements.
a. In the required report[s] on compliance and internal controls, the auditor shall communicate any reportable conditions found during the audit. A
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements.
b. Reportable conditions that are also material weaknesses shall be identified as such in the report. Nonreportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report[s] on compliance and internal controls. c. The report shall include all material instances of noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance and internal controls. The management letter shall be address to the City Manager. Prior to its release, City staff shall be given an opportunity to review and comment.
4. Updates — The firm selected is expected to keep the City abreast of new developments affecting municipal finance and reporting, Government Accounting Standards Board pronouncements, procedural changes for grants, etc. The City is requesting the firm to provide continuing professional development, up to 10 hours, as part of keeping the City updated. The firm is also expected to provide advice to City staff related to the proper accounting treatment for transactions as needed and without additional costs.
5. Other —The firm selected may also be asked to examine other reports or perform other services as required. The scope and compensation for any such request would be negotiated between the City and the Auditor.
Auditing Standards to be Followed
To meet the requirements of this Request for Proposal, the audit shall be performed in accordance with:
• Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants
• The standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States
• The provisions of the Federal Single Audit Act
• The provisions of the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations Reports to be Issued
Following completion of the audit and preparation of the fiscal year's financial statements and special purpose audits, the Auditor shall issue:
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
1. Reports on the fair presentation of the financial statements in accordance with auditing standards generally accepted in the United States of America as listed below: a. Annual Comprehensive Financial Report b. Single Audit Report
2. A report based on the internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards.
3. A report on the compliance with requirements that could have a direct and material effect on each major program and internal control over compliance in accordance with OMB Circular A-133 and on the schedule of expenditures of federal awards. Also included would be a schedule of findings and questioned costs associated with federal awards.
4. A Management Letter setting forth recommendations (as applicable) for improvements in the City's internal control, accounting procedures, and any other significant observations.
5. Reports to and communication with those charged with governance, as required by auditing standards.
6. Auditors shall be required to make immediate, written notification to the City Council, City Manager, and City Attorney of all irregularities and illegal acts or indications of illegal acts of which they become aware.
7. Any other reports that may become required as a result of a change in accounting standards or new pronouncements that become effective during the term of the engagement.
Other Communications
The Auditor shall make all communications to the City required by the audit standards under which the engagement is performed. Those communications include, but are not limited to:
• The Auditor's responsibility under generally accepted auditing standards. • Significant accounting policies.
• Management judgment and accounting estimates.
• Significant audit adjustments.
• Other information in documents containing audited financial statements. • Disagreements with management.
• Management consultation with other accountants.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
• Major issues discussed with management prior to retention. • Difficulties encountered in performing the audit.
• Errors, irregularities, and illegal acts.
The Auditor must be available to present the audit plan prior to beginning field work. In addition, the Auditor must be available to present all final reports to City management and the City Council as requested at no additional costs.
Working Paper Retention and Access to Working Papers
All work papers and reports must be retained, at the auditor's expense, for a minimum of five years (or the retention timeframe established by the professional standards, whichever is longer) unless the firm is notified in writing by the City of the need to extend the retention period. The work papers are subject to review by Federal and State agencies and other individuals designated by the City. Accordingly, the work papers will be made available upon request.
In addition, the firm will respond to the reasonable inquiries of successor auditors and allow successor auditors to review work papers.
Additional Consulting Hours
It is expected that the selected proposer will keep the City informed of new state and national developments affecting municipal finance and reporting, standards and trends including changes in federal/state grant program accounting and reporting requirements. This shall include at least one formal updating session per year with financial/accounting staff.
The scope of the audit must also include consulting time on subjects that could affect financial reports such as reviewing official statements for bond sales or answering payroll taxation issues, (this is in addition to consultations on matters directly relating to the audit and reports).
Journal Entries
All adjusting journal entries made by the independent auditors must be discussed and explained to the designated Finance Department personnel prior to recording. They should be in a format that shows the lowest level of posting detail needed for data entry in the general ledger system.
Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
-CALIFORNIA-
EXHIBIT B
Cost Summary
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Financial Auditing Services
City of Beaumont
Request for Proposal
BEAUMONT
C A L I F O R N I A
EXHIBIT B
Cost Summary
NOT TO EXCEED PRICE FOR PROPOSED SERVICES SCHEDULE
In accordance with the Request for Proposal for Audit Services issued by City of Beaumont, the firm referenced below hereby submits the following cost proposal:
Basic Reports to Be Issued
City Audit, including ACFR and Related Reports
Total
Additional Audit Reports To Be Requeted At City Option
Single Audit and Related Reports
Annual Report of City Financial Transactions to State Controller Total
Year 1%ded June 30th
2025 2026 2027 2028 2029
Please include an hourly fee quotation and hours proposed for all positions to be assigned to the audit:
Hours Billing
Rate
Estimated Number of
Hours
Estimated Charges
Partners
Mangers
Senior Accountant
Staff Accountant
Clerical/Support Staff
Other
I hereby certify that the undersigned is authorized to represent the firm stated above, and empowered to submit this bid, and if selected, authorized to sign a contract with the City, for the services identified in the Request for Proposals.
Firm Name:
Signature:
Printed Name:
Title:
Date:
City of Beaumont Agreement #
C25-03
EXHIBIT "B"
VENDOR'S PROPOSAL
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M
S
JANUARY 17, 2025
CITY OF BEAUMONT
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
FOR THE FISCAL YEARS ENDING JUNE 30, 2025 THROUGH 2029
(WITH THE OPTION FOR A ONE-YEAR EXTENSION)
CONTACT PERSONS:
SCOTT MANNO, CPA, CGMA
[email protected]
PREPARED BY
ROGERS ANDERSON MALODY & SCOTT, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, CA 92408
BRIANNA SCHULTZ, CPA, CGMA
[email protected] LICENSE #2596
FEIN 95-2662063
909.889.0871
City of Beaumont
Proposal for Professional Auditing Services
Table of Contents
Page
Transmittal letter i
Firm qualifications and experience 1
Firm information
License to practice in California
Independence
About our firm
Range of services
Governmental Audit Quality Center
Housing Authority and Successor Agency experience
Single audit experience
ACFR preparation
Engagement quality control
Equal opportunity employer
External quality control review
Disciplinary action
Specific audit approach 5
Engagement approach
Audit approach and proposed audit segmentation
Level of staff and approximate number of hours assigned to each segment Sample sizes (including for compliance testing)
Intelligent audit technology
Analytical procedures
Auditing in a remote environment
Commitment to client collaboration
Proposed audit timing
City staff 12
Specific tasks required from City staff
Respective roles
Specific expertise desired 14
Key personnel 15
Quality of service and engagement team
Partner and supervisory staff involvement
Partner, supervisory, and staff qualifications and experience 15 Staff continuity
Continuing professional education
Assigned personnel
Engagement team resumes
Disclosure 23
References 23
Overview and scope of services 25
Services to be provided
CERTIFIED PUBLIC ACCOUNTANTS
January 17, 2025
City of Beaumont
550 E. 6th Street
Beaumont, CA 92223
We are pleased to respond, on behalf of Rogers, Anderson, Melody & Scott, LLP (RAMS), to your request for a proposal regarding professional auditing services. As a recognized industry leader and innovator for over 77 years, our goal has been to provide honest, high -quality, and objective results to all our clients, including governmental organizations such as yours. This dedication has fueled our firm's tremendous organic growth while ensuring personalized, client -focused services, with some clients being with us for over 25 years.
At RAMS, we are committed to achieving the highest quality audit in the most effective manner possible. We understand the complexities of performing governmental audits, which is why we have a dedicated team of auditors with specialized knowledge and experience to ensure our audits are planned and executed efficiently and effectively, providing you with the highest quality services.
We understand that the City of Beaumont (the City) will review other proposals during this process, but we believe that RAMS is the exceptional choice for your audit for the following reasons:
Reputation: We have an established reputation in the governmental and not -for-profit accounting and auditing community for providing excellent, timely service with high -quality reporting.
Advanced Tools: We utilize Teammate Analytics, a suite of over 200 Computer Aided Audit Tools (CAATs), empowering our audit teams to perform powerful data analysis that enhances our substantive audit procedures and helps identify transactions or amounts indicative of potential fraud.
Risk -Based Approach: Our intelligent, risk -based audit allows us to focus on key audit areas, increasing efficiency and resulting in a higher quality audit at a reasonable fee.
Experience: We currently provide auditing services to over 70 governmental agencies and not -for-profit organizations, including over 30 cities with enterprise activities and over 35 special districts.
Remote Capabilities: We have developed a comprehensive remote working environment for our audits. All our staff are equipped to work remotely effectively and efficiently, ensuring a quality audit.
Commitment to Deadlines: We are committed to meeting all reporting/auditing deadlines, resolving any issues encountered during your audit, and providing you with quality audit services.
Minimizing Stress: We understand the audit process can be stressful for you and your staff. We strive to make the audit process as trouble -free as possible by comprehensively planning and utilizing our staff and audit technologies efficiently and effectively while minimizing disruptions and miscommunications.
Personable Team: Our audit team members are personable and easy to work with, yet focused on the audit.
Through open and responsive communication, we aim to minimize operational distractions for your staff while maximizing quality service.
Quality Control: We have an extensive internal quality control review process to ensure your financial reports meet the highest standards. Each report prepared by the engagement team is reviewed by the engagement manager, and thoroughly examined by two partners and at least one professional proofreader.
Award -Winning Assistance: We have assisted many clients with the preparation of their Annual Comprehensive Financial Reports. All our clients who submitted reports for GFOA award have received them.
Our participation as a GFOA reviewer also indirectly benefits our clients in the quality review process.
Tel. 909-889-0871 I www.ramscpa.net j ?35 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408
Value for Investment: Our fee estimate provides a fair and reasonable investment, commensurate with the level of service provided and the experience of the audit team members. While we may not be the lowest bidder, our focus is on delivering the best value and high -quality services, pricing our engagements accordingly.
Local Presence: As a Southern California firm, our employees live, work, and shop in the region, allowing local cities to benefit from our sales and property taxes.
Our proposal is prepared clearly, concisely, and in accordance with the request for proposal. We believe our firm, staff, and reputation as a leader in governmental auditing exceed the need for the typical excessive information found in other proposals.
Rogers, Anderson, Malody & Scott, LLP is properly licensed to practice in California, including all the professional staff assigned to this engagement. Mrs. Brianna Schultz, Partner and Mr. Manno, Partner, are authorized to represent the firm, submit the bid, and sign a contract with the City. We understand the work to be done as listed in the section of this proposal titled "Services to be Provided," and we are committed to meeting any agreed -upon time frames. This proposal is a firm and irrevocable offer for ninety (90) days.
Thank you for the opportunity to present our proposal to the City. We are committed to exceeding your expectations of an auditor and believe this proposal provides you with comprehensive information about our firm, service team members, and our customized audit approach. We look forward to establishing a long and mutually beneficial relationship with the City. Please feel free to contact us if you have any questions regarding this proposal.
Respectfully yours,
ROGERS, ANDERSON, MALODY & SCOTT, LLP
Scott Manno, CPA, CGMA
Partner
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City of Beaumont
Proposal for Professional Auditing Services
Firm qualifications and experience
Firm information
Name:
Address:
City, State, Zip Code:
Corporate Structure:
State/County of Incorporation:
Website:
Contact Information:
License to practice in California
Rogers, Anderson Malody & Scott, LLP
735 E. Carnegie Drive, Suite 100
San Bernardino, CA 92408
Limited Liability Partnership
California/San Bernardino
www.ramscpa.net
Scott Manno, CPA, CGMA, Partner, smanno(@ramsci a.net,
909.889.0871
Rogers, Anderson, Malody & Scott, LLP is licensed to practice in the State of California. Our key professional staff, which includes the partners, managers, and supervisors, are all certified public accountants licensed to practice in the State of California and follow all applicable Board of Accountancy standards.
Independence
Rogers, Anderson, Malody & Scott, LLP is independent of the City and any component units, as defined by general standard number two of the generally accepted auditing standards, and by the second general standard for government auditing in the U.S. Government Accountability Office's Government Auditing Standards.
About our firm
We are a local firm, established in 1948, located at 735 E. Carnegie Drive, Suite 100, San Bernardino, California. As a comprehensive accounting firm, we offer a full spectrum of services. With over 75 years of public practice experience, we are one of the oldest, most trusted, and respected CPA firms in Southern California, specializing in auditing, accounting, and management advisory services for governmental agencies and not -for-profit organizations. Annually, we dedicate over eighteen thousand hours to our audit practice, encompassing cities, redevelopment successor agencies, water districts, other special districts, not -for-profit corporations, and joint power authorities. Our focus on government accounting and auditing is a primary commitment, ensuring we deliver top-quality services to local governments.
We recognize the importance of engaging auditors with a deep understanding of the complex and ever - evolving accounting and compliance issues that governments face today. Our firm boasts a rich history in governmental accounting and auditing, equipping us with invaluable experience, in-depth knowledge, and the technical expertise necessary to conduct high -quality governmental audits. This expertise enables us to provide exceptional service and effective solutions at competitive fees, reflecting our value to clients.
Furthermore, our active participation in various industry associations ensures we stay updated on the latest issues in governmental accounting, auditing, and operations. We promptly share any valuable insights with our clients to enhance their benefit.
Our firm has a total staff of fifty-four people, which includes sixteen certified public accountants. The staff consists of six partners, six managers, sixteen supervisors/senior accountants, twenty-two staff accountants, and four support staff. The audit staff consists of thirty-five members who devote over 80% of their time to municipal engagements. The engagement team assigned to the City's engagement will consist of the following full-time staff: one audit partner, one audit manager, one audit supervisor/senior, and two to three staff auditors. All personnel are out of our San Bernardino office. �•` AICPA
GAQC Member
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City of Beaumont
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
Range of services
In addition to auditing services for governmental entities, our firm offers a wide range of other services, including:
• SB 341 compliance (Successor Agencies)
• Internal control agreed -upon procedures
• Finance director and accounting support services
• Studies and evaluations of financial condition and fiscal policies • Transient Occupancy Tax agreed -upon procedures
• Franchise (refuse, cable) agreed -upon procedures
• Development and review of accounting policies and procedures • Cash management studies
• Assistance with financing and public bond offerings
• Support with franchise agreements (ambulance, cable, television, refuse, etc.) Additionally, we provide accounting, auditing, attest, and consulting services to both for-profit and not -for- profit entities. Our services also include tax preparation and consulting for individuals, corporations, and partnerships. We offer complimentary tax consultation services to our municipal audit clients.
Governmental Audit Quality Center
As a member of the American Institute of CPAs Governmental Audit Quality Center (GAQC), we at RAMS are dedicated to maintaining the highest quality standards. Our commitment to the GAQC membership requirements includes designating a partner responsible for the quality of our governmental audit practice, establishing rigorous quality control programs, conducting annual internal inspections, and publicly sharing our peer review report findings. Our goal is to continually enhance our quality initiatives to provide the highest quality audit services possible.
Being a part of the GAQC also grants us access to comprehensive resources that further improve the quality of your audit. Our membership ensures we receive timely information on technical, legislative, and regulatory matters, which we apply to your audit to ensure compliance with current standards and regulatory changes, benefiting our clients.
Housing Authority and Successor Agency experience
Over the past five fiscal years, the firm has audited the Housing Authorities and Successor Agencies for the following entities:
City of South Pasadena
City of Thousand Oaks
City of San Marcos
City of Moorpark
City of Fillmore
City of Sierra Madre
City of El Cajon
Town of Yucca Valley
City of Poway
!•`r
AICPA
GAQC Member
City of San Bernardino
City of La Verne
City of San Jacinto
City of Twentynine Palms
City of La Mesa
City of Rosemead
City of Hawthorne
City of West Covina
City of Claremont
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City of Beaumont
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
Single audit experience
Many of our municipal clients, as well as other governmental and not -for-profit clients, require audits in accordance with Uniform Guidance. Recently, we have conducted single audits for numerous entities.
Our specialized Single Audits Team is led by Partners and Managers who hold Intermediate and Advanced Single Audit Certifications from the AICPA, ensuring a successful and thorough engagement.
ACFR preparation
We have extensive experience in preparing Annual Comprehensive Financial Reports (ACFR). For the past several years, our team prepared over between 20-30 ACFRs per year, with each entity receiving the Certificate of Achievement for Excellence in Financial Reporting from the GFOA. Additionally, we have assisted many cities and special districts in developing their first -year reports for submission. Four of our audit partners and five of our managers/supervisory staff serve as technical reviewers for the GFOA award program.
We ensure all ACFRs comply with the GFOA certificate program checklist and address any prior year comments to guarantee thorough and compliant reports.
Engagement quality control
Our internal quality control review process ensures your audit meets the highest standards. Financial reports prepared by a senior member of the engagement team undergo multiple levels of review: first by the engagement manager/supervisor, followed by the engagement partner, and finally a technical review by the engagement Quality Control partner. Additionally, all reports are proofread by at least one professional staff member. All audit workpapers are reviewed by the in -charge auditor and the partner in charge of the engagement.
Equal opportunity employer
Our firm is an equal opportunity employer committed to providing employment opportunities to all qualified individuals, regardless of race, color, sex, religion, national origin, or disability. Our diverse staff represents a wide range of cultures and ethnic backgrounds. We offer advancement opportunities based on ability, skill, and desire to progress within the firm.
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AICPA
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GAQC Member
City of Beaumont
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
External quality control review
As a member of the AICPA Private
Companies Practice Section, our
firm has actively participated in the
"Peer Review" program since 1993.
Every three years, an independent
firm of certified public accountants
conducts an external review of our
firm. This participation ensures that
our engagements, firm policies, and
audit procedures consistently meet
the standards set by the AICPA, the
Yellow Book, and the California
State Board of Accountancy.
Notably, throughout our
participation in this program, our
firm has consistently received pass
ratings from the peer reviewers.
During each peer review, an
independent firm assesses our
policies and procedures and
inspects a representative sample of
engagement workpapers and
reports, including those related to
governmental entities and
engagements subject to the
Uniform Guidance. For the year
ended November 30, 2020, our firm
received a pass rating. This rating
indicates that our auditing practices
are suitably designed and complied
with, providing reasonable
assurance of performing and
reporting in accordance with
applicable standards. The results
affirm that our custom audit
approach and procedures are
technically sound and compliant
with all relevant standards.
Disciplinary action
Grant Bennett Associates
A MIOFESSICMIALCORPOAATON
Report on the Firm's System of Chalky Control
lune 4, 2021
To the Partners of Rogers Mdersor4 Malady & Scott LLP, and the Peer Review Committee of the California Society of CPAs
We have reviewed the system of quality control for the accounting and auditing practice of Rogers. Anderson Melody & Scott, LLP (the firm) in effect for the year ended November 30, 2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews estabdshed by the Peer Review Board of the American Institute of Certified Public Accountants (Standards)_ A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpamJJprsummary . The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Rum's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the fiem with reasonable assurance of performing and reporting in conformity with applicable professional standards in an material respects The firm is also responsible for evaluating actions to promptly r emed-rale engagements deemed as not performed or reposed in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control if any_ Peer RsvinINWS Responsibility
Oct responsisildy is to express an opinion on the design of the system of quality control and the fktth's compliance therewith based on our review.
Raguired Selections and Camideratiors
Engagements selected for review included engagements performed under GovemmentAckd i ng Standards, Including a conicXIance audit under the Single Audit Act arid an audit of an employee benefit plan.
As a pan of our peer review, we considered reviews by regulatory entities as communicated by the firm. If applicable in determining the nature and extent of our procedures CiOnlaa
In our opinion, the system of quality control for the accounting and auditing practice of Rogers, Mdersan, Melody & Scott, LLP In effect for the year ended November 30, 2020. has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in aIF material respects. Finns can receive a rating of peas, pass wen dertcierxy fi s) or >itiL Roger, Anderson, Malady & Scott LLP has received a peer review rating of pass
GRANT BENNETT ASSOCIATES
A PROFESSIONAL CORPORATION
Certified Public Accountants
GBA
C R
--
10850 Gold Center Drive. Suite 260
Rancho Cordova, CA 95670
916/922-5109 FAX 916/641-5200
Princeville, HI 96722
888/769-7323
Our firm has a spotless record with no disciplinary actions taken or pending against it by state regulatory bodies or professional organizations. Additionally, there has never been any pending or settled litigation, nor any civil or criminal investigations. We are also not aware of any federal or state desk reviews or field reviews of our audits in the last three years.
Our firm has no record of substandard work.
In addition to external quality control reviews, our firm conducts annual in-house monitoring procedures that mirror the external peer review processes, ensuring ongoing compliance and quality in our audit and attest engagements.
`6` AICPA
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