STATEMENT OF THE ISSUE
Pronouncements of the GASB apply to financial reports of all state and local governmental entities. The calculations needed to implement this accounting standard are very complexed, therefore, an outside consultant is needed for services for providing an organized electronic platform. Lack of sufficient help for staff to implement GASB 96 by the FY2022-2023 Audit Report issuance will cause the City to have a “Qualified Opinion” on its Financial Statements, which could result in being out of compliance with GAAP (Generally Accepted Accounting Principles), which may cause financial risks for the City.
In order to obtain the necessary assistance to comply with the implementation of GASB Statement 96, City staff issued a Request for Proposal (RFP) in November 2023. The RFP was published in the Compton Bulletin, City website, and on the California Society of Municipal Finance Officer (CSMFO)’s RFP website, which is a website frequently reviewed by vendors who provide financial services to municipalities and local governments within California.
The RFP yielded three responses. The candidates were IGM Technology Corp (Gravity), DebtBook, and Cradle Inc. Staff conducted an apples-to-apples comparison for the proposed services and cost over a three-year period.
Their proposed cost are as follows:
1. IGM Technology Corp ($14,610 over three years)
2. DebtBook ($30,000 over three years)
3. Cradle Inc. ($21,000 over three years)
Please refer to Attachment “A” for comparison details
IGM Technology (Gravity) has provided the lowest responsible bid for Subscription-Based Information Technology Arrangements (SBITA) Software Services, which is a service the City needs to comply with GASB 96.
Currently, IGM Technology Corp (Gravity) is the firm which is providing services for the City to comply with GASB 87 for Lease Accounting Standard implementation. IGM Technology has performed at a satisfactory level and staff believes it is in the City’s best interest to engage their services to assist with the GASB 96 as well.
Staff is requesting authorization be given to enter into a multi-year agreement with IGM Technology Corp (Gravity) for Subscription-Based Information Technology Arrangements (SBITA) Software Services.
Staff Report – A Resolution Authorizing A Multi-Year Agreement and Purchase Order to IGM Technology (Gravity) For SBITA Implementation Software Services February 20, 2024
FISCAL IMPACT
The cost for these services is not to exceed Fourteen Thousand Six Hundred and Ten Dollars ($14,610) over a three-year period, per the proposal from IGM Technology Corp (Gravity).
A Purchase Order for Six Thousand Dollars ($6,000) for the first year of services is being requested for authorization. Funds have already been budgeted in the Controller Department’s FY2023-2024 budget and is to be issued out of the following account:
Account Code Account Name Amount
1001-650-000-4222 General Fund – City Controller Department $6,000 Software Account
The remaining funds will be budgeted in future years’ budgets.
Once the software and services are implemented, the accounting and financial reporting for SBITAs will be compliant with the Governmental Accounting Standard Board Statement 96.
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER FORWARDED TO CITY MANAGER
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON
AUTHORIZING THE CITY MANAGER TO ENTER INTO A MULTI-YEAR AGREEMENT WITH IGM TECHNOLOGY CORP (GRAVITY) ($14,610)
AND ISSUE A PURCHASE ORDER TO IGM TECHNOLOGY CORP
(GRAVITY) FOR SUBSCRIPTION-BASED INFORMATION
TECHNOLOGY ARRANGEMENTS (SBITA) IMPLEMENTATION
SOFTWARE SERVICES ($6,000)
WHEREAS, as of the completion of the audit for the fiscal year ending June 30, 2023, the City is required to implement GASB Statement Number 96 (GASB 96) which is a recent Governmental Accounting Standards Board (GASB) accounting pronouncement which provides guidance on the changes to accounting and financial reporting for Subscription-Based Information Technology Arrangements (SBITAs) for government end users (governments); and
WHEREAS, the objective of GASB 96 is to better meet the informational needs of financial statement users by improving accounting and financial reporting for SBITAs by governments; and
WHEREAS, GASB 96 requires reporting agencies to recognize a right-to-use subscription Information Technology (IT) asset (the intangible asset). GASB defines a SBITA as a contract that conveys control of the right to use another entity’s (a SBITA vendor’s) information technology software, alone or in conjunction with tangible capital assets. This conveyance of control is specified for a period of time in an exchange or exchange-like transaction. GASB 96 establishes a single model for SBITA accounting based on the foundational principle that SBITAs, like leases, are financings of the right to use an underlying asset; and
WHEREAS, pronouncements of the GASB apply to financial reports of all state and local governmental entities; and
WHEREAS, the calculations needed to implement this accounting standard are very complexed, therefore, an outside consultant is needed for services for providing an organized electronic platform; and
WHEREAS, lack of sufficient help for staff to implement GASB 96 by the FY2022- 2023 Audit Report issuance will cause the City to have a “Qualified Opinion” on its Financial Statements, which could result in being out of compliance with GAAP (Generally Accepted Accounting Principles); and
WHEREAS, in order to obtain the necessary assistance to comply with GASB Statement Number 96, City staff issued a Request for Proposal (RFP) in November 2023; and
WHEREAS, the RFP was published in the Compton Bulletin, City website, and on the California Society of Municipal Finance Officer (CSMFO)’s RFP website, which is a website frequently reviewed by vendors who provide financial services to municipalities and local governments within California; and
WHEREAS, the RFP yielded three responses. The candidates were IGM Technology Corp (Gravity), DebtBook, and Cradle Inc. Staff conducted an apples-toapples comparison for the proposed services and cost over a three-year period.
Resolution No. __________
2 Their proposed cost are as follows:
1. IGM Technology Corp ($14,610 over three years)
2. DebtBook ($30,000 over three years)
3. Cradle Inc. ($21,000 over three years)
WHEREAS, IGM Technology Corp (Gravity) has provided the lowest responsible bid for Subscription-Based Information Technology Arrangements (SBITA) Software Services, which is a service the City needs to comply with GASB 96; and WHEREAS, currently, IGM Technology Corp (Gravity) is providing services for the City to comply with GASB 87 Lease Accounting Standard. IGM Technology has performed at a satisfactory level and staff believes it is in the City’s best interest to engage their services to assist with the GASB 96 as well; and
WHEREAS, staff is requesting authorization be given to enter into a multi-year agreement with IGM Technology Corp (Gravity) for Subscription-Based Information Technology Arrangements (SBITA) Software Services; and
WHEREAS, the cost for these services is not to exceed Fourteen Thousand Six Hundred and Ten Dollars ($14,610) over a three-year period, per the proposal from IGM Technology Corp (Gravity); and
WHEREAS, a Purchase Order for Six Thousand Dollars ($6,000) for the first year of services is being requested for authorization. Funds have already been budgeted in the Controller Department’s FY2023-2024 budget and is to be issued out of the following account:
Account Code Account Name Amount
1001-650-000-4222 General Fund – City Controller’s Department $6,000 Software
WHEREAS, the remaining funds will be budgeted in future years’ budgets; and WHEREAS, once the software and services are implemented, the accounting and financial reporting for SBITAs will be compliant with the Governmental Accounting Standard Board Statement 96; and
WHEREAS, it is recommended that the City Council adopt the attached Resolution to approve the agreement and to authorize the City Manager to open a Purchase Order for IGM Technology Corp (Gravity) for Subscription-Based Information Technology Arrangements (SBITA) Software Services; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Manager is given authorization to enter into a three (3) year agreement along with authorization to extend the term of the agreement for two (2) additional years with IGM Technology Corp (Gravity) for an amount not-to-exceed Fourteen Thousand Six Hundred and Ten Dollars ($14,610) for Subscription-Based Information Technology Arrangements (SBITA) Implementation and Software Services.
SECTION 2. That the City Manager is hereby authorized to open a Purchase Order for Six Thousand Dollars ($6,000) for the first year of services provided by IGM Resolution No. __________
3 Technology Corp (Gravity) for Subscription-Based Information Technology Arrangements (SBITA) Implementation and Software Services for account 1001-650-000-4222.
SECTION 3. That the amount of Six Thousand Dollars ($6,000) Dollars will be available in the Fiscal Year 2023-2024 budget allocated from account number 1001-650- 000-4222 General Fund, Software account and that the remainder of the amount of the contract will be available in future years’ budgets.
SECTION 4. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.
SECTION 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
________________________________
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
____________________________________
CITY CLERK OF THE CITY OF COMPTON
Attachment A
Firm name Set-up Hosting, Support, Maintenance Additional Services (Included) Travel and Lodging Year 1 Fee Year 2 Fee Year 3 Fee Total Fee IGM (Gravity)
One-Time Cost: Includes
professional services data
migration, project management,
customization, interfacing and
conversion, initial training, direct
and implementation support.
Additionally, includes review,
classification and data extraction
services for up to 40 SBITA
Contracts.
$2,000
1 Year Access: Includes ongoing GASB 96
hosting reporting solutions and services, which
includes software licenses for up to 5 named
users, software maintenance, training, support,
updates and upgrades throughout the standard
licensing term.
$4,000
*(5% Maximum Annual Increase)
The Cloud service is available 24
hours per day all year long with a
monthly availability avage of 99.99%
unless there is an agreed upon
downtime for maintenance.
Proposer is able to certify that the
sufficiency of its security standards,
tools, technologies and procedures
in providing the cloud service will
meet statement-on-standards-forattestation-engagment (SSAE) 18 service organization controls (SOC)
2 Type ll audit results, and comply
with applicable with industry
standards and guidlines.
Online and/or in-person staff
training
$5,000.00
*$1,500.00
*$3,000.00
$3,000.00
No travel or lodging is
expected during
implemetation and/or
training. Training is
expected to be sufficient
remotely, but if in-person is
requested, travel and
lodging would be an
additional cost.
$6,000.00 $4,200.00 $4,410.00 $14,610.00
Cradle Inc.
Onboarding and Implementation
Fee
$7,500
(Optional)
This plan includes up to 40 agreements.
Each additional arrangement can be added at a
nominal cost of $9 per arrangement, per month.
$4,500
(No CPI)
In-person or remote training $7,500 No additional Cost for travel or lodging 12,000.00 4,500.00 4,500.00 21,000.00 DebtBook
Services include the Application
Services , the Onboarding
Services, the Support Services ,
and the Implementations
Services for up to 40
subscritptions.
Premium Implementation
$2,500
(100%discounted)
1 Year service- Debtbook's management
software-as-a-service application provided.
Includes upfront SBITAorganization and data
extraction, schedule creation, ongoing compliance,
project cost breakout, journal entries, and audit
notes.
$10,000.00
(Services are all inclusive, No CPI mentioned)
Client is provided a Dedicated Client
Success Manager and/or access to
a
in-application chat to a generic
email
to reach the Support Team.
Live group training
No option, no pricing
No additional Cost for
travel or lodging $10,000.00 $10,000.00 $10,000.00 $30,000.00 Optional Modules and Services
(Not included)
AP Reconciliation for SBITA's- Includes full set up of the reconciliation template and connection to the journal
entries. (One Time Fee)
ERP Integration Annual Rate- Includes full implementation of the module, setting up batch upload ETL for data from the EFP system, and setting up the reconciliation template and journal entries.(Valid only if IGM's Lease Management module is also being implemented; subjected to annual
price increase of 5%)
Debt Management Annual Rate- Access for 1 year.
Includes debt management services. software
maintenance, training, support, updates, and upgrades
throughout the standard licensing term. (Valid only if IGM's Lease Management module is also being implemented;
subjected to annual price increase of 5%)
Debt Management Implementation- Includes professional
services implementation (including initial data migration, project management, customization, interfacing, and
conversion), all initial training, and direct implementation support until go-live. (One time fee)
Onboarding and Implementation Fee
No options mentioned
(Services are all inclusive)
SaaS Services Agreement
PAGE 1
Services:
Access to Gravity (the “Service(s)”) for one year starting the commencement date of the contract.
Annual Service Fees – Year 1:
The Customer has the right to identify up to [5] Named Users to have Access to Gravity. The Service Capacity includes:
Item # Service Number of users Fee (USD)
470 Gravity SBITA Management
● GASB 96
5 $4,000
Total Service Fees – 12 months 5 $4,000
Service Fees for the first year are payable net 30 days after the Effective Date of this agreement Renewals
If the Customer chooses to renew its subscription to Gravity for additional years with the same Service Capacity, then the Service Fees for the following years will be:
Year Annual Services Fee (USD)
Year 2 $4,200
Year 3 $4,410
Service Fees in subsequent years will be governed by the terms and conditions of this SaaS Service Agreement. In subsequent years, Service Fees are payable net 30 days after the renewal date.
Customer: The City of Compton, CA Contact: Sharon Rahban Address: 205 South Willowbrook Ave
Compton, CA 90220
Title: City Controller
E-Mail: [email protected] Phone: (310) 605-5500
PAGE 2
Implementation Services:
Company will use commercially reasonable efforts to provide Customer the services described in the Statement of Work (“SOW”) attached as Exhibit A hereto (“Implementation Services”), and Customer shall pay Company the Implementation Fee in accordance with the terms herein.
Implementation Fee:
(one-time fee):
Service Fee (USD)
Gravity SBITA Management $2,000
● Includes data extraction for up to 40 SBITA contracts ● Measure the reporting requirements for GASB 96
Total Implementation Fees – 12 months $2,000
Implementation fees are payable net 30 days after the Effective Date of this agreement.
Company will use commercially reasonable efforts to provide Customer the services described in the Statement of Work (“SOW”) attached as Exhibit A hereto (“Implementation Services”), and Customer shall pay Company the Implementation Fee in accordance with the terms herein.This SaaS Services Agreement (“Agreement”) is entered into on this _______ day of ________________, 2024 (the “Effective Date”) between IGM Technology Corp. with a place of business at 77 McMurrich St Unit 318, Toronto, Ontario (“Company”), and the Customer listed above (“Customer”). This Agreement includes and incorporates the attached Terms and Conditions and contains, among other things, warranty disclaimers, liability limitations and use limitations. There shall be no force or effect to any different terms of any related purchase order or similar form even if signed by the parties after the date hereof.
IGM Technology Corp.: The City of Compton, CA
By: By:
Name: Name:
Title: Title:
PAGE 3
CITY OF COMPTON
Recommended for Approval:
By _______________________________ Dated: __________
Sharon Rahban Navizadeh, City Controller
City Controller Department
Approved by:
Dated: _______________ By____________________________
Willie A. Hopkins, Jr., City Manager
Approved as to form:
By _______________________________ Dated: __________
Eric Perrodin, City Attorney
ATTEST:
By _______________________________ Dated: __________
Vernell McDaniel, City Clerk
PAGE 4
TERMS AND CONDITIONS
1. SAAS SERVICES AND SUPPORT
1.1 Subject to the terms of this Agreement, Company will use commercially reasonable efforts to provide Customer the Services in accordance with the Service Level Terms attached hereto as Exhibit B.
1.2 Subject to the terms hereof, Company will provide Customer with reasonable technical support services in accordance with the Support Terms attached hereto as Exhibit C.
2. RESTRICTIONS AND RESPONSIBILITIES
2.1 Customer will not, directly or indirectly: reverse engineer, decompile, disassemble or otherwise attempt to discover the source code, object code or underlying structure, ideas, know-how or algorithms relevant to the Services or any software, documentation or data related to the Services (“Software”); modify, translate, or create derivative works based on the Services or any Software (except to the extent expressly permitted by Company or authorized within the Services); use the Services or any Software for timesharing or service bureau purposes or otherwise for the benefit of a third party; or remove any proprietary notices or labels.
2.2 Customer represents, covenants, and warrants that Customer will use the Services only in compliance with all applicable laws and regulations. Customer hereby agrees to indemnify and hold harmless Company against any damages, losses, liabilities, settlements and expenses (including without limitation costs and attorneys’ fees) in connection with any claim or action that arises from an alleged violation of the foregoing or otherwise from Customer’s use of Services.
2.3 Customer shall be responsible for obtaining and maintaining any equipment and ancillary services needed to connect to, access or otherwise use the Services, including, without limitation, modems, hardware, servers, software, operating systems, networking, web servers and the like (collectively, “Equipment”). Customer shall also be responsible for maintaining the security of the Equipment and the administrative and user passwords.
PAGE 5
3. CONFIDENTIALITY; PROPRIETARY RIGHTS
3.1 Each party (the “Receiving Party”) understands that the other party (the “Disclosing Party”) has disclosed or may disclose business, technical or financial information relating to the Disclosing Party’s business (hereinafter referred to as “Proprietary Information” of the Disclosing Party).
Proprietary Information of Company includes non-public information regarding features, functionality and performance of the Service. Proprietary Information of Customer includes nonpublic data provided by Customer to Company to enable the provision of the Services (“Customer Data”). The Receiving Party agrees: (i) to take reasonable precautions to protect such Proprietary Information, and (ii) not to use (except in performance of the Services or as otherwise permitted herein) or divulge to any third person any such Proprietary Information. The Disclosing Party agrees that the foregoing shall not apply with respect to any information after five (5) years following the disclosure thereof or any information that the Receiving Party can document (a) is or becomes generally available to the public, or (b) was in its possession or known by it prior to receipt from the Disclosing Party, or (c) was rightfully disclosed to it without restriction by a third party, or (d) was independently developed without use of any Proprietary Information of the Disclosing Party or (e) is required to be disclosed by law.
3.2 Customer shall own all right, title and interest in and to the Customer Data. Company shall own and retain all right, title and interest in and to (a) the Services and Software, all improvements, enhancements or modifications thereto, (b) any software, applications, inventions or other technology developed in connection with Implementation Services or support, and (c) all intellectual property rights related to any of the foregoing.
3.3 No rights or licenses are granted except as expressly set forth herein.
4. PAYMENT OF FEES
4.1 Customer will pay Company the then applicable fees described in the Order Form for the Services and Implementation Services in accordance with the terms therein (the “Fees”). If Customer’s use of the Services exceeds the Service Capacity set forth on the Order Form or otherwise requires the payment of additional fees (per the terms of this Agreement), Customer shall be billed for such usage and Customer agrees to pay the additional fees in the manner provided herein. Company reserves the right to increase the Service Fees to reflect inflation and ongoing enhancements applied to the software platform, to change the Fees or applicable charges and to institute new charges and Fees at the end of the Initial Service Term or then-current renewal term. If Customer believes that Company has billed Customer incorrectly, Customer must contact Company no later than 60 days after the closing date on the first billing statement in which the error or problem appeared, in order to receive an adjustment or credit. Inquiries should be directed to Company’s customer support department.
4.2 Company will bill through an invoice. Full payment for invoices issued in any given month must be received by Company within thirty (30) days after the mailing date of the invoice. Unpaid amounts are subject to a finance charge of 1.5% per month on any outstanding balance, or the maximum permitted by law, whichever is lower, plus all expenses of collection and may result in immediate termination of Service. Customer shall be responsible for all taxes associated with Services other than taxes based on Company’s net income.
PAGE 6
5. TERM AND TERMINATION
5.1 Subject to earlier termination as provided below, this Agreement is for the Initial Service Term as specified in the SaaS Services Agreement, and shall be automatically renewed for additional periods of the same duration as the Initial Service Term (collectively, the “Term”), unless either party requests termination at least thirty (30) days prior to the end of the then-current term.
5.2 In addition to any other remedies it may have, either party may also terminate this Agreement upon thirty (30) days’ notice (or without notice in the case of nonpayment), if the other party materially breaches any of the terms or conditions of this Agreement. Customer will pay in full for the Services up to and including the last day on which the Services are provided. Upon any termination, Company will make all Customer Data available to Customer for electronic retrieval for a period of thirty (30) days, but thereafter Company may, but is not obligated to, delete stored Customer Data. All sections of this Agreement which by their nature should survive termination will survive termination, including, without limitation, accrued rights to payment, confidentiality obligations, warranty disclaimers, and limitations of liability.
6. WARRANTY AND DISCLAIMER
6.1 Company shall use reasonable efforts consistent with prevailing industry standards to maintain the Services in a manner which minimizes errors and interruptions in the Services and shall perform the Implementation Services in a professional and workmanlike manner. Services may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by Company or by third-party providers, or because of other causes beyond Company’s reasonable control, but Company shall use reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption. HOWEVER, COMPANY DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR FREE; NOR
DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SERVICES. EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION, THE SERVICES AND IMPLEMENTATION SERVICES ARE PROVIDED “AS IS” AND COMPANY
DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.
PAGE 7
7. LIMITATION OF LIABILITY
7.1 NOTWITHSTANDING ANYTHING TO THE CONTRARY, EXCEPT FOR BODILY INJURY OF A
PERSON, COMPANY AND ITS SUPPLIERS (INCLUDING BUT NOT LIMITED TO ALL
EQUIPMENT AND TECHNOLOGY SUPPLIERS), OFFICERS, AFFILIATES,
REPRESENTATIVES, CONTRACTORS AND EMPLOYEES SHALL NOT BE RESPONSIBLE
OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS
AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY: (A) FOR ERROR OR INTERRUPTION OF USE OR FOR LOSS
OR INACCURACY OR CORRUPTION OF DATA OR COST OF PROCUREMENT OF SUBSTITUTE GOODS, SERVICES OR TECHNOLOGY OR LOSS OF BUSINESS; (B) FOR ANY INDIRECT, EXEMPLARY, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES; (C) FOR ANY MATTER BEYOND COMPANY’S REASONABLE CONTROL; OR (D) FOR ANY AMOUNTS
THAT, TOGETHER WITH AMOUNTS ASSOCIATED WITH ALL OTHER CLAIMS, EXCEED THE
FEES PAID BY CUSTOMER TO COMPANY FOR THE SERVICES UNDER THIS AGREEMENT IN THE 12 MONTHS PRIOR TO THE ACT THAT GAVE RISE TO THE LIABILITY, IN EACH
CASE, WHETHER OR NOT COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
8. MISCELLANEOUS
8.1 If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable. This Agreement is not assignable, transferable or sublicensable by Customer except with Company’s prior written consent. Company may transfer and assign any of its rights and obligations under this Agreement without consent. This Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements, communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both parties, except as otherwise provided herein. No agency, partnership, joint venture, or employment is created as a result of this Agreement and Customer does not have any authority of any kind to bind Company in any respect whatsoever. In any action or proceeding to enforce rights under this Agreement, the prevailing party will be entitled to recover costs and attorneys’ fees. All notices under this Agreement will be in writing and will be deemed to have been duly given when received, if personally delivered; when receipt is electronically confirmed, if transmitted by facsimile or e-mail; the day after it is sent, if sent for next day delivery by recognized overnight delivery service; and upon receipt, if sent by certified or registered mail, return receipt requested. This Agreement shall be governed by the laws of the State of California without regard to its conflict of law provisions. Customer agrees to reasonably cooperate with Company to serve as a reference account upon request.
SaaS Services Agreement
PAGE 8
EXHIBIT A
Statement of Work
The Company will provide the following services and comprehensive training:
● Gravity - Implementation Services for SBITA Management o Comprehensive On-Line Training
o IGM Consulting Services in setting up and using Gravity to measure and maintain the reporting requirement proposed for GASB 96
o Data extraction services for up to 40 SBITA contracts These Implementation Services will be provided to the Customer within six months of the Effective Date. Implementation Services required by the Customer after this time period could be provided by IGM at IGM’s standard consulting services rate.
PAGE 9
EXHIBIT B
Service Level Terms
The Services shall be available 99.9%, measured monthly, excluding holidays and weekends and scheduled maintenance. If Customer requests maintenance during these hours, any uptime or downtime calculation will exclude periods affected by such maintenance. Further, any downtime resulting from outages of third-party connections or utilities or other reasons beyond Company’s control will also be excluded from any such calculation. Customer's sole and exclusive remedy, and Company's entire liability, in connection with Service availability shall be that for each period of downtime lasting longer than one hour, Company will credit Customer 5% of Service fees; provided that no more than one such credit will accrue per day. Downtime shall begin to accrue as soon as Customer (with notice to Company) recognizes that downtime is taking place, and continues until the availability of the Services is restored. In order to receive downtime credit, Customer must notify Company in writing within 24 hours from the time of downtime, and failure to provide such notice will forfeit the right to receive downtime credit. Such credits may not be redeemed for cash. Company will apply any credits accumulated in the prior annual period, towards the Service Fees in the next annual period.
PAGE 10
EXHIBIT C
Support Terms
IGM will provide Technical Support to customer via both telephone and electronic mail Monday – Friday between 6am – 8pm Eastern Time (“Support Hours”).
Customer may initiate a helpdesk ticket during Support Hours by calling IGM’s customer support line or any time by emailing [email protected] Company will use commercially reasonable efforts to respond to all Helpdesk tickets within one (1) business day.
Emergency customer support is available outside of Support hours and can be initiated by calling IGM’s customer support line or emailing [email protected] February 20, 2024
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: CITY CONTROLLER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO AUTHORIZE AN AMENDMENT TO THE CITY CONTROLLER’S
DEPARTMENT FY2023-2024 BUDGET AND TO AUTHORIZE THE CITY
MANAGER TO OPEN A PURCHASE ORDER TO TANDYM GROUP LLC,
AND ROBERT HALF INTERNATIONAL INC. FOR ACCOUNTING TEMP
AGENCY SERVICES ($75,000 FOR ALL AGREEMENTS COMBINED)
SUMMARY
Adoption of the attached Resolution will authorize the amendment to the City Controller’s Department FY2023-20234 budget and to establish a Purchase Order of Seventy-Five Thousand Dollars ($75,000) for the combined services of Tandym Group LLC and Robert Half International Inc.
BACKGROUND
In order to achieve compliance with the State Auditor, State Controller, and External Auditor’s recommendations for continuous staffing of qualified personnel, the City Controller requested the use of a Temp Agency as it would be beneficial to have temporary staff available in the interim until the hiring process has been completed.
Resolution #25,879 authorized the City Manager to execute agreements with Helpmates Staffing Services LLC, Century Group, Tandym Group LLC, and Robert Half International Inc for accounting temp services. Staff was unable to commence services with Century Group and Helpmates Staffing Services due to the City not receiving the required documentation to commence services. Services, however, were commenced with Tandym Group LLC and with Robert Half.
The purpose of the Temp Agency was to provide a pool of staff to assist with maintaining sufficient, qualified staff in the Controller’s office so that operations can be maintained.
The term of the agreement was approved from July 25th, 2023 through July 31st, 2024. A Purchase Order was approved for Seventy-Five Thousand Dollars ($75,000) for the services. Funds for these services was expected to cover a three (3) month time span (August-October of 2023) while the Controller’s Department’s staffing vacancies were being filled. The approved Purchase Order funds have now been exhausted due to the use of the temp staffing services and the Controller’s office staffing levels are still a work in progress. A new purchase order is being requested at this time to meet the staffing needs of the Controller’s office.
12. Staff Report – A Resolution to amend the City Controller’s FY2023-2024 budget and open a new Purchase Order for Tandym Group LLC, and with Robert Half International INC for Accounting Temp Agency Services
February 20, 2024
2 STATEMENT OF THE ISSUE
The Accountant l, Accountant ll, and Accounting Specialist positions have not been completely filled and the original expected duration for the use of the Temp Agencies have expired.
In 2022, a recruitment for the Accounting Specialist position was successfully done, but due to a promotional advancement and temporary move-ups, there are remaining vacancies in the department. In November 2023, the recruitment for the Accounting ll position began, and we anticipate a positive outcome. The City Controller’s office has and will continue to work with Human Resources to fill these vacancies. The roles of these positions are needed as the City has new legal requirements for payroll, in which more Controller Accounting staffing resources will be needed to assist the Payroll Division. In adherence to the State of California Auditor’s deadlines, the roles of these positions are pivotal, and a delay in progress will not be in the best interest of the City, as timely and legally required payroll dates and vendor payments could be at risk if the staffing is not sufficiently maintained by the help of the temp agencies.
With the need to continue the use of the temp agencies for maintaining operations, the Controller’s office has attempted to meet with the Bargaining Unit of the said positions again, but was unsuccessful in arranging a meeting due to the lack of availability or nonresponse from most of the board members.
Staff is requesting for the approval of an amendment to the City Controller’s Department FY2023-20234 budget and to establish a new Purchase Order of Seventy-Five Thousand Dollars ($75,000) for the combined services of Tandym Group LLC and Robert Half International Inc, since the funds of the previous Purchase Orders have been exhausted.
FISCAL IMPACT
The cost for these services is not to exceed Seventy-Five-Thousand Dollars ($75,000). A budget amendment to the FY2023-2024 City Controller’s Department Budget is being requested for the following:
Decrease in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4101 General Fund, Controller’s Dept $75,000 Salaries - Permanent
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4262 General Fund, Controller’s Dept $75,000 Staff Report – A Resolution to amend the City Controller’s FY2023-2024 budget and open a new Purchase Order for Tandym Group LLC, and with Robert Half International INC for Accounting Temp Agency Services
February 20, 2024
3 Other Professional Services
A Purchase Order for Seventy-Five Thousand Dollars ($75,000) is also being requested to be authorized to be issued to either firm or to all firms with a total-combined, but notto-exceed the spending amount of Seventy-Five Thousand Dollars ($75,000), out of the following account:
Account Code Account Name Amount
1001-650-000-4262 Other Professional Services $75,000
RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution to authorize the City Manager to approve a budget amendment to the City Controller’s Department FY2023-20234 budget and to open a Purchase Order for Tandym Group LLC, and Robert Half International Inc. for Accounting Temp Agency Services.
SHARON RAHBAN NAVIZADEH
CITY CONTROLLER
APPROVED FOR FORWARDING:
WILLIE A. HOPKINS, JR.
CITY MANAGER
RESOLUTION NO. __________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON TO AUTHORIZE AN AMENDMENT TO THE CITY CONTROLLER’S
DEPARTMENT FY2023-2024 BUDGET AND TO AUTHORIZE THE CITY
MANAGER TO OPEN A PURCHASE ORDER TO TANDYM GROUP LLC,
AND ROBERT HALF INTERNATIONAL INC. FOR ACCOUNTING TEMP
AGENCY SERVICES ($75,000 FOR ALL AGREEMENTS COMBINED)
WHEREAS, in order to achieve compliance with the State Auditor, State Controller, and External Auditor’s recommendations for continuous staffing of qualified personnel, the City Controller requested the use of a Temp Agency, as it would be beneficial to have temporary staff available in the interim until the hiring process has been completed; and
WHEREAS, Resolution #25,879 authorized the City Manager to execute agreements with Helpmates Staffing Services LLC, Century Group, Tandym Group LLC, and Robert Half International Inc for accounting temp services.
WHEREAS, staff was unable to commence services with Century Group and Helpmates Staffing Services due to the City not receiving the required documentation to commence services; and
WHEREAS, the purpose of the Temp Agency was to provide a pool of staff to assist with maintaining sufficient, qualified staff in the Controller’s office, so that operations can be maintained; and
WHEREAS, the term of the agreement was approved from July 25th, 2023 through July 31st, 2024; and
WHEREAS, a Purchase Order was approved for Seventy-Five Thousand Dollars ($75,000) for the services; and
WHEREAS, the funds for these services was expected to cover a three (3) month time span (August-October of 2023) while the Controller’s Department’s staffing vacancies were being filled. The approved Purchase Order funds have now been exhausted, and the Controller’s office staffing levels are still a work in progress; and WHEREAS, the Accountant l, Accountant ll, and Accounting Specialist positions have not been completely filled and the original expected duration for the use of the Temp Agencies have expired; and
WHEREAS, in 2022, a recruitment for the Accounting Specialist position was successfully done, but due to a promotional advancement and temporary move-ups, there are remaining vacancies in the department; and
WHEREAS, in November 2023, the recruitment for the Accounting ll position began and we anticipate a positive outcome; and
WHEREAS, the City Controller’s office has and will continue to work with Human Resources to fill these vacancies; and
WHEREAS, the roles of these positions are needed as the City has new legal requirements for payroll, in which more Controller Accounting staffing resources will be needed to assist the Payroll Division; and
WHEREAS, in adherence to the State of California Auditor’s deadlines, the roles of these positions are pivotal, and a delay in progress will not be in the best interest of the City, as timely and legally required payroll dates and vendor payments could be at risk if the staffing is not sufficiently maintained by the help of the temp agencies; and Resolution No. __________
2 WHEREAS, with the need to continue the use of the temp agencies for maintaining operations, the Controller’s office has attempted to meet with the Bargaining Unit of the said positions again, but was unsuccessful in arranging a meeting due to the lack of availability or non-response from most of the board members; and WHEREAS, staff is requesting for the approval of an amendment to the City Controller’s Department FY2023-20234 budget and to establish a new Purchase Order of Seventy-Five Thousand Dollars ($75,000) for the combined services of Tandym Group LLC and Robert Half International Inc, since the last ones has been exhausted; and WHEREAS, the cost for these services is not to exceed Seventy-Five-Thousand Dollars ($75,000). A budget amendment to the FY2023-2024 City Controller’s Department Budget is being requested for the following:
Decrease in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4101 General Fund, Controller’s Dept $75,000 Salaries - Permanent
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4262 General Fund, Controller’s Dept $75,000 Other Professional Services
WHEREAS, a Purchase Order for Seventy-Five Thousand Dollars ($75,000) is also being requested to be authorized to be issued to either firm or to all firms with a totalcombined, but not-to-exceed the spending amount of Seventy-Five Thousand Dollars ($75,000), out of the following account:
Account Code Account Name Amount
1001-650-000-4262 Other Professional Services $75,000
WHEREAS, staff recommends that the City Council adopt the attached Resolution to authorize the City Manager to approve a budget amendment to the City Controller’s Department FY2023-20234 budget and to open a new Purchase Order for Tandym Group LLC, and Robert Half International Inc. for Accounting Temp Agency Services; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COMPTON DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Controller’s Department Fiscal Year 2023-2024 Budget is authorized to be amended as follows:
Decrease in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4101 General Fund, Controller’s Dept $75,000 Salaries - Permanent
Increase in Expenditure appropriations:
Account Code Account Name Amount
1001-650-000-4262 General Fund, Controller’s Dept $75,000 Other Professional Services
SECTION 2. That a new Purchase Order shall be issued to either firm or to all firms with a total combined, but not-to-exceed spending amount of Seventy-FiveThousand Dollars ($75,000), out of the following account:
Account Code Account Name Amount
1001-650-000-4262 Other Professional Services $75,000
Resolution No. __________
3 SECTION 3. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, and City Controller.
SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.
ADOPTED this ____________ day of _____________, 2024.
________________________________
MAYOR OF THE CITY OF COMPTON
ATTEST:
________________________________
CLERK OF THE CITY OF COMPTON
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF COMPTON )
I, Vernell McDaniel, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was adopted by the City Council of the City of Compton, signed by the Mayor and attested by the City Clerk at a regular meeting thereof held on this ___________ day of ________________, 2024.
That said Resolution was adopted by the following vote, to wit:
AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
____________________________________
CITY CLERK OF THE CITY OF COMPTON
Attachment A
Recommendations noted in the State of California State Audit report to the City in October of 2022 (page 4 and 6)
“By July 2023, direct the City Manager to make efforts to fully staff the human resources department and the City Controller’s office with qualified individuals to ensure that these departments can address Compton’s broader, chronic issues related to staffing and finances. The level of staffing in the departments should be sufficient for the successful performance of key tasks, including those listed in our recommendations”
“By July 2024, the City Council should ensure that the City has issued its audited financial statements for fiscal years 2020-21, 2021-22, and 2022-23. The Council should adopt a requirement that, for subsequent years, the City must issue complete audited financial statements by six months after the end of the fiscal year. To ensure that it has the ability to meet this requirement, the City should consider measure such as increasing staff in the City Controller’s office and training them on their responsibilities for preparing the financial statements.” “By December 2024, Compton should resolve all of the audit findings it has received that predate its fiscal year 2020-21 audited financial statements and any findings from subsequent audit reports, including findings related to improving financial controls.” The City has received 9 findings from the State Controller’s office and from Eadie and Payne LLP external audit firm during FY2018- FY2020 as follows:
2014-074B- Commitment to Competence (SD)
Recommendation: We recommend that the City implement a remedial action plan to adequately staff the departments. Most importantly, the City Controller’s Office should be staffed with qualified and experienced individuals who can contribute immediately to the performance of its accounting functions. In addition, we recommend that the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available. Inexperienced staff may cause material impact in the City’s operations in terms of incurring additional costs, delaying the processing of financial transactions, and failing to keep City Management and the City Council updated with accurate information. 2014-062A- Turnover and Lack of Consistent Leadership (MW) Recommendation: The SCO recommended that the City evaluate its hiring practices for its upper management positions. In addition, the SCO recommended that the City develop a succession plan that will help it to ensure continued leadership even during management turnover. 2014-064A- Lack of Adequate Staff Performing Critical Functions (MW) Recommendation: The SCO recommended that the City implement a remedial action plan to adequately staff the noted departments. Most importantly, the City Controller's Office should be staffed with qualified and experienced individuals who can contribute immediately to the performance of its accounting functions. In addition, the SCO recommended that the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available. Inexperienced staff may cause material impact in the City's operations in terms of incurring additional costs, delaying the processing of financial transactions, and failing to keep City Management and the City Council updated with accurate information.
2014-085B- Management Philosophy and Operating Style (SD) Recommendation: We recommend that the City implement a remedial action plan to adequately staff departments. Most importantly, the City Controller’s Office should be staffed with qualified and experienced individuals who can contribute immediately to the performance of its accounting functions. In addition, we recommend that the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available.
Inexperienced staff may cause material impact in the City’s operations in terms of incurring additional costs, delaying the processing of financial transactions, and failing to keep City Management and the City Council updated with accurate information. 2014-089B- Organizational Structure (MW)
Recommendation: We recommend that the City implement a remedial action plan to adequately staff departments that were affected by furloughs and reductions in the previous years. In addition, we recommend that the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available. 2014-091B- Organizational Structure (MW)
Recommendation: We recommend that the City implement a remedial action plan to adequately staff departments that were affected by furloughs and reductions in the previous years. In addition, we recommend that the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available. 2014-116B- Information (SD)
Recommendation: We recommend that the City assign a higher priority to, and direct more resources towards completing, its audited financial statements by the deadline of no later than six months after fiscal year-end.
2014-072B- Commitment to Competence (SD)
Recommendation: We recommend the City implement a remedial action plan to adequately staff the departments that are short on staff. In addition, we recommend the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available.
2014-073B- Commitment to Competence (SD)
Recommendation: We recommend the City implement a remedial action plan to adequately staff departments that were affected by furloughs and reductions in the previous years. In addition, we recommend the City implement policies to address the importance of experience and proper training of back-up staff when regular staff members are not available.
MEET AND CONFER
Thi>aQUf'i<?sti;On,is to conltw toat a, Meei aacl Confer 5oo.k place arnongsi: the City of Compion and AFSCP^lE 3947 on Thwrida.y February 9th, 2:C23 at S pm via Zoom to discuss the Controller's Office staffing needs.
Both parties agreed there is a need for temp, workers for vacant Accounting Specialist positions due to move up. or du.e to employde separation from City, ar\d one Accountant II position in the Controller's Department, it was o^reed that temp workers coulci he hired from a temp being inihategland underway by the HR department Additionally, it was agreed that a temp agency could be used such that rvot more than $2S,00,0 would be spent on payments to temporarily fill, each vacant position, unless the situation is reassessed through the. meet and confer process again. They also agreed to review- th? need for temp workers in three months' time. ncy while recruitments are
The City and the Union herepY agree:
0^y)ru/ra/i-- i-/Qi-SL2>
lupita. Conte? Duraa. President A.FSCM^ 3947
10. 2 3 4 ■
Jose Lo.za.no, Vice President AFSCWE 3947
. /
Sharon Rah^aa Cisty Controller
^£1
^L.ogam, deputy City Controller
City Manager, Thomas Thomas
6/3,^2022
Zoom