Agenda packet — Dublin City Council, March 21, 2023 (part 2 of 2)

Agenda Item 4.8
DATE: March 21, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Agreement with Badawi & Associates for Financial Auditing Services Prepared by: Wendy Lam, Senior Accountant
EXECUTIVE SUMMARY:

The City Council will consider approving an agreement with Badawi & Associates for annual financial auditing services.

STAFF RECOMMENDATION:

Adopt the Resolution Approving a Consulting Services Agreement with Badawi & Associates for Financial Auditing Services.

FINANCIAL IMPACT:

The total cost for five years will not exceed $284,870, which includes a base amount of $264,870 and $20,000 in contingency funds for potential special program audits. The first year's contract cost is included in Fiscal Year 2022-23 Adopted Budget, while future costs will be included in each respective annual budget.

DESCRIPTION:

The City's current auditor, Badawi & Associates, located in Berkeley, has provided audit services to the City of Dublin for the past five years. The City has been well-served by Badawi's team of professionals and has produced complete, accurate, award-winning annual financial reports.

However, best practices established for public agency finance recommend that agencies periodically review the provision of these professional services.

A Request for Proposal (RFP) for professional auditing services was issued on November 1, 2022.

The RFP was published on the City website and the California Society of Municipal Finance Officers website. The City received proposals from the following four qualified firms:
 Badawi & Associates
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 Lance, Soll & Lunghard, LLP
 Maze & Associates
 Vasquez & Company LLP
The proposals were reviewed by an Evaluation Committee comprising City Staff. The evaluation and selection of the audit firm was based on the following criteria:
 Responsiveness of the proposal in clearly stating and understanding of the work to be performed
 Technical experience of the firm
 Qualification of the audit team
 Size and structure of the firm
 Quality and completeness of the proposal
 Proposed hours and costs
Based on the evaluation process, Staff recommends continuing to contract with Badawi & Associates. To provide for a fresh review of the City’s finances, the partner who oversaw and managed the City’s past five-year contract will be rotated to another assignment and an alternate partner will be assigned to the City’s new contract.

As part of the audit engagement, the following scope of services will be provided by Badawi & Associates on an annual basis:
 Annual Comprehensive Financial Report (ACFR)
 Single Audit Report (if the City has expenditures from Federal resources that exceed $750,000)
 Special Purpose Audits (Required by Alameda County Transportation Commission)  Appropriation (Gann) Limit Report
 State Controller's Cities Financial Transactions Report  Dublin Financing Authority’s State Controller’s Report  State Controller's Annual Street Report
 Other Auditor Reports ("Management Letter" that includes recommendations for improvements in internal control and accounting procedures) Badawi & Associates has presented a total not-to-exceed cost proposal which begins at $49,930 in the first year and would reach $56,095 in the fifth year. The following table displays the components of the fees proposed. In the case of Single Audit, if the City does not meet the expenditure threshold requirement, the cost would not be incurred. All other work is expected to occur on an annual basis.

Annual Audit Work Cost
Service FY2023 FY2024 FY2025 FY2026 FY2027
City Audit and related reports (ACFR) $31,220 $32,275 $33,055 $33,980 $34,945 Single Audit (if required) 3,100 3,200 3,295 3,400 3,380 165

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Special Purposes Audit Related Reports
(Measure B, Measure BB, and VRF)
10,020 10,170 10,500 10,755 11,145
GANN Limit Agreed-upon Procedures 600 640 670 705 745
State Controller’s Report 2,070 2,015 2,130 2,160 2,165 Dublin Financing Authority’s State
Controller’s Report
1,630 1,735 1,835 1,940 2,060
State Controller’s Street Report 1,290 1,375 1,460 1,550 1,655 Total $49,930 $51,410 $52,945 $54,490 $56,095
STRATEGIC PLAN INITIATIVE:

None.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted.

ATTACHMENTS:
1) Resolution Approving a Consulting Services Agreement with Badawi & Associates for Financial Auditing Services
2) Exhibit A to the Resolution - Consulting Services Agreement Between the City of Dublin and Badawi & Associates
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Attachment 1
Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 1 of 2 RESOLUTION NO. XX – 23

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF DUBLIN

APPROVING A CONSULTING SERVICES AGREEMENT

WITH BADAWI & ASSOCIATES FOR FINANCIAL AUDITING SERVICES WHEREAS, the City desires to annually have an independent audit of its financial reports; and
WHEREAS, best practices in municipal finance recommend that periodically agencies should evaluate options available for the provision of audit service; and WHEREAS, the City issued a Request for Proposals and received four responses; and WHEREAS, a committee comprising City staff review ed the proposals and recommended awarding the contract to Badawi & Associates, the City’s most recent audit firm; and
WHEREAS, Badawi & Associates provided a not-to-exceed fee proposal of $264,870 to complete City audits and specified financial reporting for a five-year period (one three- year agreement with two oneyear extensions); and
WHEREAS, City Staff recommends an additional $20,000 in contingency for additional audit programs not listed in the scope of services.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby authorize the City Manager to execute the agreement with Badawi & Associates and up to two one-year extensions to this agreement (attached hereto as Exhibit A), in a contract amount not to exceed $2 84,870 for a five-year period, which will be paid in annual increments described in Exhibit A.
{Signatures on the following page}
167
Reso. No. XX-23, Item X.X, Adopted XX/XX/2023 Page 2 of 2 PASSED, APPROVED AND ADOPTEDthis 21st day of March 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
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City of
Dublin

TECHNICAL PROPOSAL
For Professional Auditing Services for
the City of Dublin
For fiscal years ending June 30, 2023 through 2027.

November 30, 2022
Contact Person:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Phone: ( 510) 768- 8244
Fax: ( 510) 768- 8249
E-mail: abadawi@b- acpa. com
Exhibit D
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 188
City of Dublin
Table of Contents
Page
Letter of Transmittal ......................................................................................................................................... 1 Firm Qualifications and Experience ................................................................................................................ 3 Insurance ....................................................................................................................................................... 3 License to Practice in California .................................................................................................................... 3 Firm Qualifications ......................................................................................................................................... 3 Technical Approach ....................................................................................................................................... 4 Firm Experience ............................................................................................................................................. 5 Additional Activities ........................................................................................................................................ 5 Client Training Seminar ................................................................................................................................. 6 GASB 68 Firm Developed Tools and Assistance .......................................................................................... 6 Flowcharting Documentation ......................................................................................................................... 6 Quality Control Review .................................................................................................................................. 6 Federal or State Desk Reviews ..................................................................................................................... 9 Disciplinary Action .......................................................................................................................................... 9 Litigations ....................................................................................................................................................... 9 Partner, Supervisory, and Staff Qualifications and Experiences .............................................................. 10 Similar Engagements with Other Governmental Entities ........................................................................... 15 Understanding of Services to be Provided .................................................................................................. 19 Specific Audit Approach ................................................................................................................................ 20 Objectives of Our Services .......................................................................................................................... 20 Audit Approach ............................................................................................................................................ 20 Technical Approach ..................................................................................................................................... 21 Use of Technology in the Audit ..................................................................................................................... 24 Audit Schedule ................................................................................................................................................ 26 Discussion of Relevant Accounting Issues ................................................................................................. 29 Comprehensive Cost Bid ............................................................................................................................... 30 Conclusion ...................................................................................................................................................... 31 Appendix A ...................................................................................................................................................... 32 References ................................................................................................................................................... 32 Appendix B ...................................................................................................................................................... 33 Exceptions to the Contract ........................................................................................................................... 33 DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 189
Letter of Transmittal
November 30, 2022
Wendy Lam
Senior Accountant
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Dear Wendy Lam:

Badawi & Associates ( B&A), Certified Public Accountants ( the “Firm”) is pleased to have the opportunity to respond to your request for a proposal to provide external audit services and to submit its qualifications to perform an independent audit of the financial statements of the City of Dublin ( the “City”) for the fiscal years ending June 30, 2023 through 2027. The objective of our audits is to issue opinions regarding the fairness of presentation of the financial position of the City in accordance with generally accepted accounting principles.

These audits are to be performed in accordance with generally accepted auditing standards, the standards set forth for financial audits in the Government Accountability Office’s (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act of 1984, as amended in 1996, and the Uniform Guidance, Audits of States, Local Governments and Non- Profit Organizations, Uniform Administrative Requirements, as well as any other applicable federal, state, local or programmatic audit requirements.

We will also perform the following as part of our engagement:

Single Audit
Measure B Audit
Measure BB Audit
Measure F Audit
GANN Limit Agreed- upon Procedures
City' s State Controller' s Report
Dublin Financing Authority' s State Controller' s Report Annual Street Report
We will also apply limited audit procedures to Management’ s Discussion and Analysis ( MD& A) and required supplementary information. In addition, we will prepare the management letter containing comments and recommendations regarding our review and evaluation of the systems of internal control and accounting procedures.

This proposal will highlight the background of the partners and staff assigned to the engagement, summarize our experience in the governmental area, and describe our approach to auditing the City.

This proposal demonstrates our ability to render the quality examination and to perform the necessary accounting and auditing services requested by the City on a timely basis.

As a partner of the Firm, I will be the primary contact for negotiation of the contract. Additionally, I have been authorized to legally bind the Firm. You may contact me at the following address and phone number:

Ahmed Badawi, CPA
Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkeley, CA 94705
Telephone: ( 510) 768- 8244
E-mail: abadawi@b- acpa. com
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 190
Wendy Lam
Senior Accountant
City of Dublin

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2 We are committed to performing the required work, completing the audit, and issuing the necessary auditors’ reports.

We believe we are the best qualified to perform the audit because our audit staff includes individuals well versed in municipal auditing and reporting requirements. We have performed auditing and consulting engagements for numerous cities throughout California. We will be responsive to the needs of the City, we understand the City’s operational environment, and pledge to you our complete commitment to providing a quality product that meets the City’s requirements.

The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s office operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate “ surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies and disruptions are kept to a minimum. In addition, we perform almost half of the audit tasks during the interim phase to minimize any unforeseen delays during the year- end phase and to ensure a smooth and timely audit process.

The Firm maintains liability insurance coverage for professional liability, Workers’ Compensation, Comprehensive General Liability and Auto as part of our comprehensive insurance policy.

The Firm is an Equal Opportunity employer and complies with all Federal and State hiring requirements. The Firm also supports Affirmative Action philosophies and works hard to provide disadvantaged groups with opportunities for self enhancement.

This proposal is a firm and irrevocable offer for 180 days.

We are confident that you will find our organization offers the required expertise, technical knowledge, and business understanding to perform an audit of the City. Our past experience provides us with a thorough understanding of the needs and requirements of the City, as well as the technical knowledge to perform such services in accordance with the accounting and auditing guidelines as published by the various authoritative entities.

We welcome your inquiries and look forward to further discussions with you.

Sincerely,
Ahmed Badawi
Partner
Badawi & Associates
Certified Public Accountants
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 191
City of Dublin Technical Proposal
3 Independence
The Firm is independent of the City of Dublin as defined by the GAO’s Standards for Audit of Governmental Organizations, Programs, Activities and Functions, and the AICPA and California State Society of Certified Public Accountants as promulgated in various auditing and professional standards.

Insurance
The Firm maintains professional liability insurance and other coverage as part of our comprehensive insurance policy. Upon selection as the City’s independent auditor, the Firm and our insurance provider will provide a certificate of insurance to the City which shows the minimum requirements identified by City have been met.

License to Practice in California
The Firm and all key professional staff assigned to the City’s audit are properly licensed to practice as Certified Public Accountants in the State of California and comply with GAO Government Auditing Standards.

The Firm is registered with the California State Board of Accountancy. Its State number is COR6823.

The Firm has met all required State and local laws, rules, and regulations.

Firm Qualifications
Badawi & Associates was founded by Mr. Ahmed Badawi. Mr. Badawi has over 20 years of experience working with state and local government with a special focus on cities. Prior to founding B&A, Mr. Badawi was a partner with several local and national firms, where he headed their government practice in Northern California. Mr. Badawi founded Badawi & Associates to serve the fast- paced needs of California' s local governments. The goal is to build a proactive, client- focused culture from the ground up and to eliminate the entrenched bureaucratic culture and intrinsic limitations of the big audit firms.

Located in Berkeley, CA, the Firm serves a variety of cities and towns throughout California as well as conducting financial related services for numerous special districts and authorities.

Names and phone numbers of several of our current and past clients and other references are provided for your inquiries. We encourage you to contact these individuals to obtain information on the quality of the audit and the ability of the audit staff.

Our Berkeley office will be the Engagement Office assigned to the City.

In addition to specific City financial statements, the Firm members have also audited numerous redevelopment agencies, public financing authorities, hospitals, housing authorities, transportation authorities, special districts, water districts, OCJP grants, self- insurance pools, joint power authorities and has also performed numerous compliance audits in accordance with the Single Audit Act, childcare regulations, TOT regulations, AQMD regulations, franchise requirements.

The Engagement Partner assigned to the City will be Mitesh Desai, CPA. Mr. Desai’s background includes fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit Certificate offered by the AICPA.

The professional staffs assigned to the Engagement are qualified and experienced. Each individual of the Engagement Team has several years of experience and has conducted or participated in numerous municipal audits of various sizes. Their understanding of governmental operations and the various authoritative guidelines will provide the where- with- all to perform the audit in an efficient and effective manner with minimal disruption to the City’s finance department.

Firm
Qualifications
and Experience
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City of Dublin Technical Proposal
4 Technical Approach
The approach to the audit has been designed to meet the audit requirements of the various authorities with the least disruption to the City’s operations. The foundation of the audit approach is based on communication coupled with a strong knowledge of City operations and detailed planning at the initial stages of the audit. Open communication lines with all parties of the Engagement Team and City Management and staff throughout the engagement eliminate surprises”. Initial planning and proper assignment of duties to experienced personnel provide for an effective and efficient audit process. Consequently, inefficiencies, disruptions, and lack of understanding are kept to a minimum.

The audit approach will consist of four phases:
1) Initial Planning Meeting:

The Engagement Partner will meet with City Management to discuss the audit approach, identify specific needs of City Management, and familiarize themselves with City policies and practices.
2) Interim:

The Engagement Team members including the Engagement Team Partner will perform the internal control reviews, test transactions, evaluate compliance with Single Audit Act requirements, identify potential audit issues that need to be addressed, perform limited confirmation procedures, and develop a clear understanding between the Engagement Team and City Management of the year- end audit responsibilities and assignments. In addition, we strive to complete many of the year- end audit tasks during the interim phase to ensure a smoother audit process. We will work with the City on providing a list of those tasks that we will target to complete during interim and work with the City on how to complete them to minimize the amount of effort and time needed at year- end which in turn will assist the City in meeting its goal of issuing the Annual Comprehensive Financial Report.
3) Year- end:

The Engagement Team members including the Engagement Team Partner will conduct validation procedures on general ledger account balances, complete confirmation procedures, perform analytical procedures on revenue and expenditures, perform search for unrecorded liabilities, complete compliance work on Federal Assistance, and wrap up audit field work.
4) Reporting:

Auditor’s reports for all City reporting entities and compliance requirements will be finalized along with Single Audit Reports and Management Letter comments. The Partner will be available to make presentations to the City Council and/ or designated bodies.

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City of Dublin Technical Proposal
5 Firm Experience
The Firm is located in Berkeley and provides a full range of accounting services to governmental agencies throughout California, including audit, tax and accounting. The Firm’s professional staff members provide the financial background and specific experience to meet the City’s operational needs. Additionally, this situation provides the City with an auditing firm that has depth in capabilities to address any financial issue the City may need assistance with, and the quality audit approach that you expect.

Our Berkeley office will be the Engagement Office assigned to the City.

Firm policy requires that the Engagement Partner, during the first year of the engagement, be actively involved in the daily fieldwork. This means to the City that Mr. Badawi will actually be on- site during the audit coordinating the audit process, supervising the audit staff, gaining a hands- on understanding of City processes, and benefiting the City with his broad municipal experience. We have found that this effort benefits the City and the Firm through developing a thorough knowledge of the City’s practices and issues and establishing a close working relationship with the City’s Management. Additionally, continuity of audit personnel is assured because of the hands on involvement of the Partner.

We are committed to providing appropriate and related experience, personal involvement, and a broad business perspective to produce a quality end product within the time frames required.

The Firm provides financial and compliance auditing services to governmental agencies throughout California. We are a governmental agency auditing firm and our professional staff members have been performing these services for many years. As a result, we have performed financial and compliance audits on most, if not all, types of governmental agencies and operations including:

Cities
Redevelopment
Agencies
Financing
Authorities
Housing Authorities
Special Districts
Water Districts
Waste Management
Authorities and
Operations
Pension Plans
Child Care
Operations
Joint Power
Authorities
Investment Activities
Landfills
Enterprise Funds
Airports
Transportation
Operations
Federal and State
Grants
Additional Activities
We offer a full range of accounting and finance services to the governmental sector. These services include:

Financial audits
Compliance audits
Tax advice
Development of financial and
accounting policies and procedures
Investment review and compliance
evaluation
Operational reviews
Technical guidance on existing and
upcoming accounting issues
Training seminars
Pension/ profit- sharing plans
Performance audits
Business consulting
Consequently, Firm personnel are well qualified to perform the services expected by the City.

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City of Dublin Technical Proposal
6 Client Training Seminar
The Firm hosts an annual update on recent technical accounting and finance issues affecting the governmental area. This all day session reviews new and anticipated pronouncements from GASB, discusses future issues under consideration by GASB, reviews accounting treatment of various transactions where issues may arise, and provides a general overview of state and federal compliance issues. All of our clients are invited to attend, free of charge. The one day session qualifies for CPE under the rules of the State Board of Accountancy and is held in the Bay Area.

GASB 68 Firm Developed Tools and Assistance
The Firm has developed tools to assist our clients with preparation of GASB 68 journal entries for the CalPERS’ Cost Sharing Plans ( for which individualized actuarial valuations are no longer prepared) and the CalPERS’ Agent Multiple Employer Plans. In addition to providing our clients with these tools and instructions on how to use them, we are available to answer any questions on how to prepare and complete the GASB 68 journal entries.

Flowcharting Documentation
As part of our risk assessment procedures, we prepare flowcharts for documenting our understanding of the City’s significant accounting and financial processes. Flowcharts are updated annually for any changes in the City’s processes and copies can be provided upon request for the City’s internal use. Flowcharted processes may include:

Financial Reporting, Closing, and Manual Journal Entries Cash Receipts, Billing, and Accounts Receivable/ Revenues Cash Disbursements, Purchasing, and Accounts Payable/ Expenditures Payroll and Human Resources
Quality Control Review
According to Government Auditing Standards, firms who perform audits under the Yellow Book are required to have a peer review once every three years. We received a report with a rating of pass with no deficiencies which we attached for your review.

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City of Dublin Technical Proposal
7 DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 196 City of Dublin Technical Proposal
8 DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 197 City of Dublin Technical Proposal
9 The Firm has policies and procedures to ensure it hires only qualified people, that it properly supervises them and provides professional training, that it advances them to responsibilities they are capable of handling, and that it provides them with necessary technical resources. All members of the Firm are very familiar with the stringent quality control standards established by the AICPA.

The Firm is a member of the AICPA Government Audit Quality Center.

The Firm is a member of the AICPA Private Companies Practice Section.

Federal or State Desk Reviews
The Firm has had no negative federal or state reviews in the past three ( 3) years.

Disciplinary Action
There has not been any state or federal disciplinary actions taken or pending against the Firm nor any findings to report.

Litigations
The Firm has not experienced any lawsuits or legal actions that have been resolved or are currently pending in the prior five years.

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City of Dublin Technical Proposal
10 The Engagement Team will normally consist of six individuals who provide a broad business perspective and significant experience in governmental auditing. This team will provide access to a wide range of technical capabilities which will provide the City with not only the technical support necessary to perform the audit, but also the broad business background to interpret findings and observations to offer effective solutions to issues, and the personal involvement of the Engagement and Compliance Partners of the Firm.

The Engagement Team will be led by Mitesh Desai, CPA. Mr. Desai’s background includes fourteen years of experience in municipal auditing. Mr. Desai has participated in the audits of numerous governmental agencies, assisted in their efforts to publish their Annual Comprehensive Financial Reports in compliance with GASB 34, and a volunteer member of the GFOA Special Review Committee. Mr. Desai has also achieved the Advanced Single Audit Certificate offered by the AICPA.

The second member of the Engagement Team will Edward Peszewski, CPA. Mr. Peszewski’ s background includes seven years of accounting and auditing experience. He has participated in the audits of numerous governmental entities and assisted in their efforts to publish their financial statements in compliance with various regulations, and is a volunteer member of the GFOA Special Review Committee. Mr. Peszewski will be the Audit Senior of this engagement.

The third member of the Engagement Team will be Monica Singhai, CPA. Mrs. Singhai’s background includes over seventeen years of experience in municipal auditing. She has participated in the audits of numerous governmental agencies and assisted in their efforts to publish their financial statements in compliance with various regulations. Mrs. Singhai will be the Engagement Quality Reviewer of this engagement.

Each member of the Engagement Team participates in continuing education programs offered by the AICPA and California State Society of Certified Public Accountants, and each has met the continuing education requirements for municipalities. In addition, the firm offers at least 60 hours of in-house CPE annually focused mainly on municipal audits.

Engagement Partner
Mitesh Desai
CPA
Engagement Quality
Reviewer
Monica Singhai
CPA
Audit Senior
Edward Peszewski
CPA
Professional
Audit Staff
Professional
Audit Staff
Professional
Audit Staff
Partner,
Supervisory,
and Staff
Qualifications
and Experiences
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 199
City of Dublin Technical Proposal
11 Professional Development:

The Firm maintains a comprehensive training program targeted at appropriate professional staff levels. It utilizes in-house developed educational programs, AICPA and California CPA Foundation educational programs, and on- the- job training.

The Firm’s annual training schedule which officially begins in April for all professional staff and administrative staff includes comprehensive in-house training sessions on such topics as:

Review of principles of accounting and financial reporting for state and local governments
Review of governmental fund types and account groups
Review of newly issued generally accepted auditing standards and GAO auditing standards
Review of Internal Control evaluation approaches including COSO principles Updates on recent governmental accounting and reporting guidelines Review of Single Audit requirements and approaches
Review of financial audit approaches
Overview of audit and internal control work paper techniques Review of GASB reporting requirements
Review of current issues facing the governmental community During the year, professional staff members are sent to various educational sessions sponsored by the AICPA and California State Society of CPAs, as considered appropriate for the level and need of the individual. These classes include, among others:

Governmental Financial Reporting Standards and Practices Yellow Book: Government Auditing Standards
Financial Accounting Standards: Comprehensive Review
Single Audit
Governmental Auditing & Accounting Update
Governmental Accounting Principles
Comprehensive Review of Generally Accepted Auditing Standards The result of the Firm’s training program is the production of a highly educated and competent municipal audit group capable of performing an efficient and effective audit for the City.

The Engagement Team members will continue their professional development efforts.

Staff Retention and Continuity:

The Firm' s policy on providing service to our clients includes a commitment to maintaining continuity of audit personnel. We cannot guarantee that our staff will remain with the Firm.

However, to encourage our staff to remain with us, we pay competitive wage rates; offer promotional opportunities; provide state- of-the- art equipment and excellent working conditions; and offer various benefits, such as retirement plans, medical plans, profit sharing programs, educational benefits, and other such benefits. We can also guarantee that the partner will be involved in future years. Continuity of audit staff is of prime concern to us and because of the hands- on involvement of the partner; we can assure you that future years’ audits will be conducted in an efficient and effective manner with qualified and experienced professionals.

Resumes of each member of the Engagement Team follow.

DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 200
City of Dublin Technical Proposal
12 Mitesh Desai, Certified Public Accountant – Engagement Partner Length of Career
Fourteen years experience in municipal auditing with a special focus on cities Certified Public Accountant for the State of California Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
BS Degree in Business Economics with an emphasis in Accounting from University of California, Santa Barbara
Professional Activities
Member, American Institute of Certified Public Accountants Member, California Society of Certified Public Accountants Volunteer Member, GFOA Special Review Committee
Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local universities including:

Governmental Financial Reporting Standards and Practices Yellow Book: Government Auditing Standards
Municipal Accounting
Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Dublin X X X
Albany X
Antioch X X X
Azusa X X X X
Berkeley X X X X X
Buena Park X X X X
Calimesa X X X
Crescent City X X X X X
East Palo Alto X X X X
El Cerrito X X X X X
Foster City X X X X X
Fremont X X X X X
Lemon Grove X X
Lindsay X X X
Menlo Park X X X
Millbrae X X X X X
Newark X X X X
Oakdale X X X X
Pittsburg X X X X X
Placerville X X X X
Rio Vista XXXX
San Mateo X X X X X
Sebastopol X X X X
Solvang X X
Susanville X
Turlock XXX
Union City XX XX
Vacaville XXXX X
Waterford XXXX
Yountville XXX
Yuba City XX XX
Child Care Programs:

Menlo Park Child Care XX
Stanislaus County Childcare XX
Non- profits:

Housing Endowment and Regional Trust X
Special Districts and Other:

Castro Valley Sanitary District X
Cosumnes Community Services District X
Marin Municipal Water District X
West County Wastewater District XX
XX
Services Provided
Contra Costa Child Development Programs
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 201
City of Dublin Technical Proposal
13 Edward Peszewski, Certified Public Accountant – Professional Audit Senior Length of Career
Nine years of experience in auditing.

Certified Public Accountant for the State of California.

Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits, PFA audits, Transportation Development Act audits, and housing audits
Education
BA, University of California, Santa Barbara
Certificate in Accounting from University of California, Berkeley - Extension Professional Activities
Member, American Institute of Certified Public Accountants.

Volunteer Member, GFOA Special Review Committee.

Continuing Education
Various municipal accounting courses offered by the California Society of CPAs and local universities including:

Albany X X X
Barstow X X X
Berkeley X X X
Buena Park
Dublin X X X X
East Palo Alto X X X
El Cerrito X X X
Folsom X X
Foster City X X X X
Guadalupe X X
Lindsay X X X
Merced X X X
Oakdale X X X
Ontario X X X X
Petaluma X
Pinole X X
Scotts Valley X X
Sebastopol X X X
Susanville X X
Yuba City X X X
Towns:

Yountville X X X
Special Districts:

Aptos/ La Selva Fire Protection District X
Cosumnes Community Services District X
Elk Grove Water District X
Hayward Area Recreation and Park District X
Marin County Parks X
Monterey Bay Unified Air Pollution
Control District
X
Sutter Animal Services Authority X
Sutter Butte Flood Control Agency X
Non- profits:

Building Industry Association of
the Bay Area X
Girls Incorporated of Alameda County X
Services Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 202
City of Dublin Technical Proposal
14 Monica Singhai, Certified Public Accountant – Engagement Quality Reviewer Length of Career
Seventeen years of experience in auditing with special focus on municipalities.

Certified Public Accountant for the State of California.

Professional Experience
Has performed numerous financial audits, Single Audits, RDA audits and PFA audits Education
Bachelor of Science in Accounting from Jabalpur University, India.

Professional Activities
Member, California Society of Certified Public Accountants.

Member, Institute of Chartered Accountants of India.

Continuing Education
Various local governments and not for profit accounting courses offered by the California Society of CPAs and AICPA including:

Governmental Financial Reporting Standards and Practices Yellow Book: Government Auditing Standards
Single Audit
Has met the current CPE educational requirements to perform audits on governmental agencies.

Financial Single RDA PFA Enterprise
Audit Audit Audit Audit Fund Other
Cities:

Berkeley XX X
East Palo Alto XX
Menlo Park XX X
Redwood City XX X
Special District:

Alameda County Fire District X
Alameda County Law Library X
Burbank Sanitary District XX
Lions Gate Community Service District X
Los Medanos Community Health Care District X
Oakland- Alameda County Coliseum Authority X
School District:

Bayshore Elementary School District X
Belmont- Redwood Shores School District XX X
Brisbane School District X
Jefferson Elementary School District XX
La Honda- Pescadero Unified School District XX X
Pacifica School District XX
Ravenswood City School District XX X
Redwood City School District XX
San Mateo- Foster City School District XX X
Charter schools:

Oakland Military Institute College Preparatory
Academy XX
Sacramento Valley Charter School X
West Sacramento College Prep Charter School X
First 5:

First 5 Alameda County XX
First 5 Inyo County X
First 5 Marin County X
First 5 Monterey County X
First 5 Santa Cruz County X
Others:

Alameda County Housing Community
Development Agency X X X
Alameda County Redevelopment Agency X X
Alameda County Successor Agency X
City of Oakland - Measure C X
City of Oakland - Measure Y X
City of Oakland - Child Care and
Development Program X
City of Oakland - Wildfire Prevention
Assessment District X
Services Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 203
City of Dublin Technical Proposal
15 The tables below and on the following page are a partial listing of our clients similar to the City, and illustrates the many different types of components involved in each audit engagement that present very difficult and complex auditing and accounting challenges ( in order of audit hours).

Indicates cities with population over 50, 000
Indicates cities with governmental revenues over $ 100 million and population over 50, 000 Ci
t
y
Cl
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n
t
S
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c
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H
o
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s
En
g
a
g
e
m
e
n
t
P
a
r
t
n
e
r
Principal Contact
An
n
u
a
l
C
o
m
p
r
e
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e
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s
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Fi
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a
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t
GF
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TD
A
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Ch
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A
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En
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F
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s
Pe
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F
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d
Richmond 2020 3, 160 Ahmed
Badaw i
Delmy Cuellar
Finance Manager
510) 620- 6790
Delmy_ Cuellar@ci. richmond. ca. us

X XXX X XXX
Berkeley 2008 1, 850 Mitesh
Desai
Henry Oyekanmi
Finance Director
510) 981- 7300
hoyekanmi@ci. berkeley. ca. us

X XXXX X XX
Ontario 2021 1, 012 Ahmed
Badaw i
Jialuan Ning
Acting Accounting Manager
909) 395- 2096
JNing@ontarioca. gov

XX X XX XX
Union City 2006 850
Mitesh
Desai
Jackie Acosta
Finance Director
510) 675- 5345
jackiea@unioncity. org

X XXXX X
Folsom 2019 807 Ahmed
Badaw i
Stacey Tamagni
Finance Director
916) 461- 6712
stamagni@folsom. ca. us

XX X XX X
Petaluma 2019 691 Ahmed
Badaw i
Corey Garberolio
Finance Director
707) 778- 4357
cgarbero@cityofpetaluma. org

X X XXXXX
San Luis
Obispo
2019 638 Ahmed
Badaw i
Brigitte Elke
Finance Director
805) 781- 7125
belke@slocity. org

X X XXXX
Antioch 2005 586 Mitesh
Desai
Dawn Merchant
Finance Director
925) 779- 6135
dmerchant@ci. antioch. ca. us

X XXXXXX X
Lafayette 2020 586
Ahmed
Badaw i
Tracy Robinson
Administrative Services Director
925) 299- 3227
trobinson@lovelafayette. org
XXX X
East Palo Alto 2014 560 Mitesh
Desai
Tomohito Oku
Finance Director
650) 853- 3122
toku@cityofepa. org

X XXX X X
Dublin 2018 546 Ahmed
Badaw i
Lisa Hisatomi
Director of Finance & Admin. Services
925) 833- 6640
Lisa. Hisatomi@dublin. ca. gov
XX XX
Similar
Engagements
with Other
Governmental
Entities
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 204
City of Dublin Technical Proposal
16 Ci
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Cl
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En
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m
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P
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n
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r
Principal Contact
An
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C
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p
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h
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s
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Fi
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GF
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A
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A
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A
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En
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F
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s
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F
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Azusa 2017 540 Ahmed
Badaw i
Talika Johnson
Administrative Services Director
626) 812- 5202
tjohnson@AzusaCa. Gov

X XXX XX X
Millbrae 2015 524
Ahmed
Badaw i
Mike Sung
Finance Director
650) 259- 2433
msung@ci. millbrae. ca. us

X XXX XX X
Yuba City 2017 450
Ahmed
Badaw i
Spencer Morrison
Finance Director
530) 822- 4615
smorrison@yubacity. net

X XXX XX X
Wasco 2021 428 Ahmed
Badaw i
Isarel Perez- Hernandez
Finance Director
661) 758- 7230
isperez@cityofwasco. org
XXXXX
Pinole 2018 419 Ahmed
Badaw i
Markisha Guillory
Finance Director
510) 724- 9823
MGuillory@ci. pinole. ca. us

XXX X X
Larkspur 2019 382 Ahmed
Badaw i
Cathy Orme
Administrative Services Director
415) 927- 5019
Finance@cityoflarkspur. org
XXX
Atwater 2021 380
Ahmed
Badaw i
Kellie Jacobs- Hunter
Finance Director
209) 357- 6347
kjacobshunter@atw ater. org

XX XX X
Waterford 2018 311 Ahmed
Badaw i
Tina Envia
Finance Manager
209) 874- 2328 Ext: 104
tenvia@cityofw aterford. org
XXXX
Solvang 2019 308 Ahmed
Badaw i
Xenia Bradford
City Manager
805) 688- 5575
xeniab@cityofsolvang. com
XX XX
Oakdale 2016 306 Ahmed
Badaw i
Albert Avila
Finance Director
209) 845- 3584
aavila@ci. oakdale. ca. us

XXXXX X
Guadalupe 2017 303 Ahmed
Badaw i
Lorena Zarate
Finance Director
805) 356- 3895
ccooper@ci. guadalupe. ca. us

XX XX X
Sebastopol 2017 275
Mitesh
Desai
Ana Kwong
Finance Director
707) 824- 4879
akwong@cityofsebastopol. org

XXX XX X
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 205
City of Dublin Technical Proposal
17 Ci
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P
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n
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Principal Contact
An
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p
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Fi
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GF
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A
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Ch
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C
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A
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Cotati 2020 265 Ahmed
Badaw i
Angela Courter
Director of Administrative Services
707) 665- 4236
acourter@cotaticity. org

XX XX X
Crescent City 2014 227
Mitesh
Desai
Linda Leaver
Finance Director
707) 464- 7483 x224
lleaver@crescentcity. org

XX XX XX
Scotts Valley 2019 202 Ahmed
Badaw i
Selina Andrew s
Finance Manager
831) 440- 5614
sandrews@scottsvalley. org
XXX X
Calimesa 2013 193 Mitesh
Desai
Bonnie Johnson
City Manager
909) 795- 9801 ext 231
bjohnson@cityofcalimesa. net
X
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 206
City of Dublin Technical Proposal
18 The table below lists all special district engagements ( in order of audit hours):

Special District
C
l
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Pa
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n
e
r
Principal Contact
An
n
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C
o
m
p
r
e
h
e
n
s
i
v
e
Fi
n
a
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c
i
a
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R
e
p
o
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t
GF
O
A
A
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a
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Si
n
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l
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A
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En
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e
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p
r
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F
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d
s
Florin Resource Conservation District/
Elk Grove Water District 2015 350
Mitesh
Desai
Patrick Lee
Finance Manager / Treasurer
916) 685- 3556
plee@egwd. org
Yes Yes X
Solano County Water Agency 2020 243
Ahmed
Badawi
Roland Sanford
General Manager
707) 455- 1103
rsanford@scwa2. com
No N/ A
Alameda County Waste Management
Authority (StopWaste) 2018 154 Ahmed
Badawi
Jennifer Luong
Finance Services Manager
510) 891- 6500
jluong@stopwaste. org
No N/A
San Gabriel Valley Council of Governments 2021 618 Ahmed Badawi
Rey Alimoren,
Director of Finance
626) 962- 9292
ralimoren@sgvcog. org
No N/A X X
County of Contra Costa Community
Services Bureau Child Development
Program
2013 450 Mitesh
Desai
Nancy Benavides
Fiscal Officer
925) 681- 4268
nbenavidas@ehsd. cccounty. us
No N/A
Hayward Area Recreation
and Park District 2017 350 Ahmed
Badawi
Anne Maze
Interim Finance Manager
510) 881- 6707
maza@haywardrec. org
No N/A
Amador County
Transportation Commission 2019 260 Ahmed
Badawi
John Gedney
Executive Director
209) 267- 2282
john@actc- amador. org
No N/A
San Mateo Mosquito and
Vector Control District
2018 228
Ahmed
Badawi
Richard Arrow
Finance Director
650) 344- 8592
rarrow@smcmvcd. org
Yes Yes
Monterey Bay Unified Air
Pollution Control District 2016 200 Mitesh
Desai
Rosa Rosales
Administrative Services Manager
831) 718- 8019
rrosales@mbard. org
No N/A
Southern Marin Fire
Protection District
2020 160
Ahmed
Badawi
Alyssa Schiffmann
Finance Manager
415) 388- 8182
aschiffmann@smfd. org
No N/ A
Port of San Luis
Harbor District
2017 150
Ahmed
Badawi
Kristen Stout
Business Manager
805) 595- 5413
kristens@portsanluis. com
Yes Yes X
Aptos La Selva
Fire District
2016 150
Mitesh
Desai
Nancy Dannhauser
Finance Director
831) 685- 6690
nancyd@centralfpd. com
No N/A
Central County
Fire Department 2012 150 Mitesh
Desai
Jan Cooke
Finance Director
650) 375- 7408
jcooke@hillsborough. net
Yes Yes
Central Fire Protection District of
Santa Cruz County
2018 150
Mitesh
Desai
Nancy Dannhauser
Finance Director
831) 479- 6842
nancyd@centralfpd. com
No N/ A
Resource Conservation
District of Santa Cruz
County
2017 150 Mitesh
Desai
Sharon Corkrean
Director of Finance
scorkrean@rcdsantacruz. org
No N/A X
Santa Cruz
Regional 9 - 1 - 1 2016 150
Mitesh
Desai
Dennis Kidd
General Manager
831) 471- 1038
dennis. kidd@scr911. org
No N/A
Zayante Fire
Protection District 2017 150 Mitesh
Desai
John Stipes
Fire Chief
831) 335- 5100
chief2401@cwncast. net
No N/A
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 207
City of Dublin Technical Proposal
19 The City desires an audit of the financial records for the City and an expression of an opinion in accordance with generally accepted accounting principles on the fairness of presentation of financial statements for the fiscal years ending June 30, 2023 through 2027.

The Firm will:

Express an opinion on the fair presentation of its basic financial statements which includes but is not limited to the financial statements of governmental activities, the business- type activities, each major fund and all aggregate remaining fund information in conformity with generally accepted accounting principles in the United States of America.

Express an in- relation- to opinion on the fair presentation of its combining and individual non- major and fiduciary fund financial statements and schedules in conformity with generally accepted accounting principles. The Firm will provide an “in- relation- to” report on the supporting schedules contained in the Annual Comprehensive Financial Report based on the auditing procedures applied during the audit of the basic financial statements and schedules.

Provide an “in-relation- to” report on the schedule of expenditures of federal awards based on the auditing procedures applied during the audit of the financial statements.

Perform the audit in accordance with generally accepted auditing standards accepted in the United States of America, applicable to the financial audit contained in the Government Auditing Standards issued by the Comptroller General of the United States and the provisions of the Uniform Guidance, Audits of States, Local Governments and Non- Profit Organizations.

Perform limited procedures on supplementary information required by the Government Accounting Standards Board.

Issue the following reports, following the completion of the audit of the fiscal year’s financial statements:

Independent Auditor’s Report on Financial Statements and Schedule of Expenditure of Federal Awards
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 on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance with the Uniform Guidance
Schedule of Findings and Questioned Costs
Auditor’s Communication with Those Charged with Governance Annual Comprehensive Financial Report following the requirements and guidelines of the GFOA award program
Measure B Audit
Measure BB Audit
Measure F Audit
GANN Limit Agreed- upon Procedures
City' s State Controller' s Report
Dublin Financing Authority' s State Controller' s Report Annual Street Report
Provide special assistance to the City as needed.

Retain all working papers and reports at the audit firm’s expense for a minimum of 7 years. In addition, make working papers available to the City and/ or any government agency as appropriate.

Should any conditions be discovered requiring corrective action, the Firm will provide a detailed description of the findings and recommended actions as to their resolution.

Understanding
of Services to be
Provided
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 208
City of Dublin Technical Proposal
20 The Firm will submit a report to the City’s Council and management detailing auditor’s responsibility under generally accepted auditing standards, significant accounting policies, management judgments and accounting statements, significant audit adjustments, other information in documents containing audited financial statements, disagreements with management, management consultations with other accountants, major issues discussed with management prior to retention, difficulties encountered during the audit, and any significant deficiencies or material weaknesses found during the audit. Non- material instances of noncompliance will be reported in a separate management letter, if appropriate, along with any other observations or recommendations determined to be informative to City Management.

The Firm will be available to provide advice and counsel regarding significant matters during the year.

The Firm’s Partner and Staff welcome the opportunity to make presentations to the City Council and will be ready to respond to questions from the Council and citizens of the City.

Objectives of Our Services
The basic objective of our audit of the City is to conduct an examination of the financial statements in accordance with generally accepted auditing standards and to express our opinion on the fairness of presentation of such financial statements in conformity with generally accepted accounting principles.

Additionally, we believe that another real value of our audit lies in meeting other objectives at no additional cost. The following are other objectives of our services that have important benefits to the City:

To offer substantive observations and recommendations relating to accounting and operating control policies and procedures.

To identify opportunities for operating efficiencies and isolate candidate activities for cost reduction opportunities.

To perform a professional audit in an efficient and effective way to minimize disruption to the office operations.

To offer ongoing advisory services to assist in the running of the operation and implementation of improved operating procedures.

The engagement will be conducted within the framework of the Firm' s quality control program which includes the use of audit programs, careful planning, use of computerized audit software and internal control evaluation and documentation software, and objective review procedures.

On- site staff will use Firm supplied portable computers and printers.

Audit Approach
The specific audit approach has been designed to efficiently and effectively address the audit requirements of the City, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

The audit will be conducted in accordance with:
1) Generally accepted auditing standards established by the AICPA 2) The standards contained in Government Auditing Standards issued by the GAO 3) Provisions of the Single Audit Act and the Uniform Guidance 4) Requirements issued by the California State Controller’ s office 5) Other requirements as required
Specific Audit
Approach
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 209
City of Dublin Technical Proposal
21 We will conduct the necessary audit steps to perform:

Planning of the engagement
Evaluation of the existing internal control environment to determine degree of risk of material misstatement
Determination of degree of compliance with laws, regulations, grant provisions, and City approved policies
Assessment of potential fraudulent issues
Validation of account balances
Verification of reasonableness of management estimates
Technical Approach
We use an industry specific audit approach tailored to governmental entities. Our governmental audit approach addresses the special risks and circumstances of local governments. As a result, the audit is conducted efficiently and effectively with minimal disruption to your staff.

The core of our governmental technical audit approach can be summarized as follows:

1. Planning, Understanding and Communication:

Based on our previous audit experience, using the budget, organizational charts, manuals and other financial information systems and our knowledge of how governments work, we will obtain an insight to the specific concerns and sensitivities of the City. Our understanding is updated continuously through our year- round contact and communication efforts. We will agree on common audit objectives and expectations with management before audit work begins and, throughout the audit, will meet regularly with management to discuss audit issues and to gather feedback.

2. In- Depth Review of Systems and Controls:

We have developed diagnostic reviews which enable us to evaluate your systems and controls, and to provide management with constructive feedback. Combined with our knowledge of the City and understanding and experience with the City’s accounting software, our control review will form the basis of our audit risk assessment. We will utilize the COSO approach in our evaluation of the City’s internal processes to identify potential control deficiencies. In future years, we will update our understanding through similar procedures.

3. Risk- Based Customized Testing Program:

Our audit approach is tailored to governmental applications. We will use audit programs specifically designed to address the operational environment of governmental entities. Our approach will identify potential control risks and the opportunities for risk of material misstatements and fraud. We will evaluate the various risk assessments and identify the potential risks relating to the:

Balance Sheets / Statement of Net Position
Statement of Revenues and Expenditures / Statement of Activities Presentation
Disclosure
Our audit procedures will then be developed to address these risk areas.

4. Expanded Interim Fieldwork:

Timeliness and audit efficiency is enhanced by performing extensive interim work.

Partners, managers and senior staff work with City staff to identify and resolve potential audit issues early. Accordingly, the amount of audit work to perform at year end is minimized. Because our audit staff is familiar with the operations before year- end fieldwork begins, disruption of accounting staff is minimized.

DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 210
City of Dublin Technical Proposal
22 5. Smooth Transition:

Our testing program focuses on audit risks identified by our understanding of the City’s operations. We will work with the accounting staff to identify the most effective ways to address our objectives. Communication between the members of the audit engagement team and City staff will be fluid and continuous.

6. Sample Size and Sampling Techniques:

Our audit approach will include sampling activities. Population size and the level of assurance to be derived from a particular test will dictate the sample size. We use sampling in our audit approach to compliment skilled judgment and knowledge of the particular situation. Our sample size will range normally from 25 to 60 items.

7. Automated Systems:

We will evaluate controls over the IT functions to assess control risk. We intend to test controls for purposes of reliance. Our review procedures will evaluate controls over:

Security Management
Logical and Physical Access
Configuration Management
Segregation of Duties
Contingency Planning
In addition, we will review controls over:

Input, processing, output, master data
Application interface
Data management system interface

8. Analytical Procedures:

We use analytical procedures in several aspects of our audit. Extensive knowledge and industry background are required for effective analytics, and our staff possesses the appropriate experience and knowledge for the City to benefit from these procedures.

9. Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work:

We continuously refer to specific regulations, compliance supplements, state guidelines and contracts currently in force. We perform the procedures required related to laws and regulations, using inquiries, observations and sampling techniques. Some of the laws and regulations that we believe may be applicable to the City are the requirements of the California Public Utilities Commission, Single Audit Act and other applicable laws and regulations, including the California Government Code, provisions of applicable Grant guidelines, California Constitution GANN Limit requirements, requirements of local measures, Child Care Program compliance requirements, etc.

10. Report Format:

We will meet with City Management to review report formats. Any report format changes will be made in conjunction with approval from the City Management.

11. Work Plans:

The detailed work plans will be designed to efficiently and effectively address the audit requirements of the City in accordance with generally accepted auditing standards, to perform the audit of the City’s financial records in a timely manner with minimal disruptions to office operations, and to meet the City’s timeline.

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City of Dublin Technical Proposal
23 12. Adjusting Journal Entries:

We will discuss and explain proposed audit adjusting entries with the City’s designated Finance Department personnel prior to recording. Audit adjusting entries will be provided in a format showing the lowest level of posting detail needed for data entry on the City’s general ledger system.

13. Listing of Schedules and Tables ( anticipated to be prepared by the City):

Based on preliminary inquiries made with management and City staff and review of documents, we will tailor a list of schedules, tables, and other reconciliations required for the audit. We will take into account as much as possible reconciliations already prepared by the City for day to day operations and reporting, as well as any reports that are system generated to limit the need for additional City staff hours.

The following is a listing of some of the significant reconciliations and schedules that we would normally expect the City to provide to us in assisting us in conducting our fieldwork.

Trial Balance
Annual Comprehensive Financial
Report Account Roll Up
Schedules
Budget to Actual Reports
Bank Reconciliations
Listing of manually prepared
journal entries posted
Summary of Investments held by
the City
Capital Asset Schedules
Long Term Debt Schedules
Debt amortization schedules &
Calculations of deferred amounts
Calculations of any debt
covenants amounts or
percentages
Schedule of Leases
Schedule of Expenditures of
Federal Awards
Analysis of Deferred Inflows of
Resources and Deferred
Outflows of Resources
Reconciliation of Receivables to
subsidiary ledgers
Calculations for estimate of
allowance for uncollectible
accounts
Loans Receivable Schedules
Reconciliation of Significant
Revenue Accounts
Fee schedules
Compensated Absences
Schedules and Copies of Related
Policies
Claims Payable Schedules
Pension and OPEB Roll Forward &
Supporting Schedules
GASB 54 Fund Balance Roll
Forward Schedule
Interfund Transaction Schedules
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City of Dublin Technical Proposal
24 The Firm maintains a variety of specialized software packages during the audit that enable us to perform an efficient, thorough, and timely audit and keeping time demands on City staff to a minimum.

Trial Balance Management and Financial Statement Preparation ProSystem Fx Engagement allows us to import and manage multiple years of trial balance data including budgetary information, create multiple account groupings, generate reports, post journal entries proposed during the audit ( including GASB 34 conversion entries), and link information directly to the financial statements. This gives us the ability to:

Generate immediate trend and other comparative analysis of trial balance and budget data prior to the start of the audit. This allows us to identify potential issues and make inquiries early in the audit
Link the financial statements and footnotes prior to the start of the audit allowing us to have majority of the financial statements ( including budgetary comparison schedules and other supplementary information) prepared at the time the trial balance is uploaded
Audit adjustments or City adjustments provided during the audit are automatically reflected in the financial statements
Audit Request Management and Document Exchange
CCH Engagement Organizer (“ Organizer”) is a virtual “ Prepared by Client ( PBC) List” that streamlines the process of requesting, receiving, and keeping track of documents. The Organizer is an integrated cloud- based request list that helps to facilitate the engagement through more seamless collaboration between the Firm and our clients. By utilizing the Organizer, the City can do all of the following in one secure virtual environment:

Attach files of any type to document requests
Easily track the status of document requests that are either pending, completed by the City, accepted by us, or rejected by us
Access templates and documents from us that require completion Have multiple City staff get involved and assist in the audit process Participate in a dialog with us for questions and notes Especially with having to perform a large part of the audit remotely in 2020, and anticipated for the upcoming year, we have found that the use of the Organizer has helped our clients be always informed as to the status of their audit, and not be surprised with new requests or follow up on outstanding requests previously provided.

Computer Aided Audit Tools ( CAATs)
The Firm’s data analytics software enables our Engagement Team to perform more than 150 Computer Aided Audit Tools ( or “CAATs”). CCH Teammate Analytics gives us the ability to perform advanced data analysis and increase efficiency. By utilizing this software, we can:

Immediately visualize and analyze 100% of account populations with graphs, charts and statistics to identify anomalies
Make fewer sample selections that are targeted to problematic areas Quickly analyze transactional data for:
o Duplicate records
o Missing transactions
o Transaction sequence
o Unusual items
Compare excel worksheets for changes or differences
Generate immediate testing samples
Perform regression analysis
Filter and extract data from City reports
Use of
Technology in
the Audit
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City of Dublin Technical Proposal
25 Audit Planning, Risk Assessment, and Audit Programs
Our firm utilizes CCH Knowledge Coach, which is an expert system that adapts and customizes our audit approach specifically based on the City’s structure, operating environment, specific transactions, and identified risks or matters to be addressed in the audit.

The software is frequently updated for new industry trends and audit requirements. Included in the software is a continuous diagnosis of audit forms that identifies missing information, procedures, or any conflicts that need to be addressed prior to issuance of the audit report.

We have found that this audit tool greatly benefits our audit clients in the following ways:

Removal of standardized audit steps and procedures that do not add value to the audit Targeted audit procedures focusing on risks and accounts specific to the City’s operations
Audit is always performed in accordance with audit standards especially the risk assessment standards
Maximizing audit efficiency having less City staff time dedicated to gathering information or responding to inquiries by focusing on material issues Automatic self- diagnostics ensure no audit steps are missed, guaranteeing a quality audit
Research Tools
We maintain multiple research software packages that are always kept up to date to ensure compliance with accounting and auditing standards, and are also a resources for us to provide guidance to our clients. In addition to accounting and audit literature, we have access to interactive disclosure checklists that include sample footnote disclosures and financial statements.

DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 214
City of Dublin Technical Proposal
26 2023
Period Audit Tasks
April - May Planning and Administration
The entrance conference shall be held with City staff. The purpose of this meeting will be to discuss prior audits and the interim work to be performed. This meeting will also be used to establish overall liaison for the audits and to make arrangements for work space and other needs
Review and evaluate the City' s accounting and financial reporting.

Prepare an overall memo of recommendations, potential issues, and suggestions for improvements
Prepare overall memo to the City confirming audit procedures, timing, and assistance
Prepare detailed audit work plan and audit programs, audit budget and staffing schedule, and list of schedules to be prepared by the City staff
Send the Organizer to the City that will include all request items considered to be necessary for the audit
May Internal Control Evaluation
Meeting with City Manager and Department Heads of other departments with large operating budgets or which have significant federal grant expenditures
Attending City Council meetings
Meeting with off- site locations
Meeting with key Finance Department personnel
Obtain and document understanding of key internal control systems through walk- throughs, interviews of staff, and review of supporting documentation
o General ledger system
o Budgeting system
o Revenue, accounts receivable, and cash collections
o Purchasing, expenditures, accounts payable, and cash
disbursements
o Payroll
o Federal Financial Assistance
o Other systems
Identify control risks
Evaluate IT control environment
Perform testing of the internal control system and evaluate the effectiveness of the City’s systems. Select large dollar and random samples of transactions in key operating systems. Sample size to meet required level for determined degree of risk. Review supporting documentation of selected transactions, evaluate adequacy of support and approvals, and conclude on degree of adherence to accuracy and compliance with City policies Conduct fraud assessment procedures
Assess degree of risk for material misstatement
Provide to the City’s management a memo concerning
management letter points and identify issues, if any
Audit Schedule
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City of Dublin Technical Proposal
27 2023
Period Audit Tasks
May Other Tasks
Review minutes of City Council meetings and other key committees Perform preliminary substantive procedures, which would include tests of:
o Vendor and contractor payments
o Payroll expense
o Pension and OPEB testing
o Capital asset acquisitions
o Journal entries
o Retrospective review of accounting estimates
Financial statement database management and other setup, in addition to drafting of all necessary report templates
Preliminary Single Audit and other compliance testing
Coordinate with City staff and prepare of all appropriate confirmation requests including:
o Bank accounts
o Investment pool accounts
o Accounts receivable
o Federal grants
o Revenue from governmental agencies
o Bond and other debts
o Pension plan
o Attorney letters
o Others, as required
Update the Organizer with any additional requests that will be needed for the City' s audit
Provide the City with audit plan and list of year- end audit schedules Hold progress conference with City Management
Hold exit conference with City Management
October Final Fieldwork
Entrance conference with City Management
Follow- up on all outstanding confirmations
Verify and validate account balances by reviewing supporting documentation including invoices, vouchers, council resolutions, minutes, and other documents, as required
Perform analytical review of revenue and expenditures. Determine reason for material differences between budget and actual Perform a search for unrecorded liabilities by reviewing disbursements subsequent to June 30, testing terms of contractual obligations, and interviewing City staff
Perform review of subsequent events by discussions with City Management and update all minutes of City Council and key committees
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 216
City of Dublin Technical Proposal
28 2023
Period Audit Tasks
Single Audit Compliance
Entrance conference with City Management
Obtain Federal Financial Assistance Schedule
Determine grants to be considered as major programs including clusters
Perform audit tests of major grant programs and compliance with Federal Law and Regulations
Review grant documents, select sufficient number of transactions to test for compliance of Federal Requirements
Coordinate Single Audit efforts with the Financial Audit efforts Communicate findings to City Management
Other Compliance
November Audit Reports
Complete drafts of City’s Annual Comprehensive Financial Report Prepare draft of Single Audit Reports concerning internal control structure, compliance with laws and regulations, and administering of federal financial assistance programs
Prepare other reports as required
Provide revised final drafts of all required reports to the City for approval no later than 11/ 13/ 2023
December Final City Audit Reports, Financial Statements, Single Audit Reports, and other reports delivered no later than 12/ 4/2023.

Presentation to Audit Committee and Council
January 2024 State Controller’ s Reports delivered and submitted Single Audit Report package submitted to Federal Audit
Clearinghouse
Estimated Hours by Audit Phase
Position Planning
Interim
Fieldwork
Year End
Fieldwork Reporting Total
Partner 9 24 16 5 54
Audit Senior 21 75 80 10 186
Professional Audit Staff - 128 117 15 260
Administrative Assistant 6 10 - 11 27 Total 36 237 213 41 527
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 217
City of Dublin Technical Proposal
29 Identification of Anticipated Potential Audit Problems We do not anticipate that there will be any audit problems at the City. However, the following are some areas that we will carefully investigate and monitor during our audit procedures:

Financial Reporting:

Review and evaluate that the City’s Annual Comprehensive Financial Report are in compliance with current reporting and disclosures requirements issued by the GASB and GFOA.

Review the Annual Comprehensive Financial Report for financial reporting conformance awards issued by CSMFO and GFOA.

Review and evaluate degree of compliance with the various GASBs in effect.

Review degree of compliance with infrastructure obligations and regulatory provisions.

Internal Control Structure:

Review and evaluate the City’s internal control functions and ascertain compliance with proper internal control philosophies.

Review computer system processes and controls and evaluate adequacy of the control environment.

Several new GASB pronouncements will become effective over the time period of this proposal. As such, specific attention will be provided to determine the proper implementation of these new pronouncements. A list of known new pronouncements with implementation dates that fall within this proposal period are as follows:
2023
Statement 91 – Conduit Debt
Statement 94 – Public- private Partnerships
Statement 96 – Subscription- Based Information Technology Arrangements 2024
Statement 100 – Accounting Changes and Error Corrections— an amendment of GASB Statement No. 62
2025
Statement 101 – Compensated Absences
Discussion of
Relevant
Accounting
Issues
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City of Dublin Technical Proposal
30 Schedule of Professional Fees

AUDIT WORK COST PROPOSAL FORM

CERTIFICATION
I, the undersigned, certify that I am duly authorized to represent Badawi & Associates, CPAs and am empowered to submit this bid. In addition, I certify I am authorized to contract with the City of Dublin on behalf of Badawi & Associates, CPAs
Print Name Ahmed Badawi Signature
Tittle President Date November 30, 2022

ESTIMATE OF COST
Print Name Ahmed Badawi Signature
Tittle President Date November 30, 2022
Service
2023
Hours 2023 2024 2025 2026 2027
City Audit and Related Reports 330 31, 220$ 32, 275$ 33, 055$ 33, 980$ 34, 945$ Single Audit and Related Reports 33 3,100 3,200 3,295 3,400 3,380 Measure B Audit 35 3,340 3,390 3,500 3,585 3,715
Measure BB Audit 35 3,340 3,390 3,500 3,585 3,715
Measure F Audit 35 3,340 3,390 3,500 3,585 3,715
GANN Limit Agreed- upon Procedures 6 600 640 670 705 745 City' s State Controller' s Report 22 2,070 2,015 2,130 2,160 2,165 Dublin Financing Authority' s State
Controller' s Report 17 1,630 1,735 1,835 1,940 2,060
Annual Street Report 14 1,290 1,375 1,460 1,550 1,655
Total 527 49, 930$ 51, 410$ 52, 945$ 54, 490$ 56, 095$
Hours Rates Hours Rates Hours Rates Hours Rates Hours Rates Partner 54 160$ 50 170$ 49 170$ 48 $ 170 47 $ 170 Audit Senior 186 100 181 100 177 115 171 125 165 130
Professional Audit Staff 260 80 254 90 245 90 239 95 231 105 Administrative Assistant 27 70 26 75 26 85 25 90 24 100 Total Hours 527 511 497 483 467
Total Cost 56, 095$
20272023 2024 2025 2026
Position
49, 930$ 51, 410$ 52, 945$ 54, 490$
Comprehensive
Cost Bid
DocuSign Envelope ID: EBB930E7-4839-427C-A559-18DA8B474EDE 219
City of Dublin Technical Proposal
31 Manner of Payment:

Each Engagement Team member maintains detailed time sheets describing work performed, date of work, and amount of time spent on each task for the Engagement. The Firm will bill the City after completion of each phase of the audit and bill the City up to a maximum of 90%. The remaining 10% of the proposal amount will not be due until all final reports are delivered and accepted by the City. The City can anticipate three billings as follows:

Work Performed
of Proposal
Amount
For interim work 45%
For year- end work 45%
At presentation and acceptance of final reports 10%
Total 100%
Rates for Additional Professional Services:

Any services outside the scope of our engagement will be promptly identified before the services are rendered. Upon mutual agreement, the out- of- scope services will be separately billed at our standard hourly rates. While it can be difficult to simply state hourly rates, as often times the needs of the client and the specific tasks directly impact the billing rates for our services, we want to provide the following information regarding our published billing rates:

Position Hourly Rate
Partner $ 200
EQR 200
Manager 150
Senior 125
Staff 100
Admin. 75
Our Standard Hourly Rates are adjusted annually by 3% for Cost of Living and Inflation Adjustments
A client relationship with the City will be of great value to our Firm and we welcome the opportunity to develop a long- term relationship with the City. We are committed to:

Rendering the highest standard of service
Developing a long- term working relationship dedicated to meeting the needs of the City Assisting the City in operational issues
Producing a quality end- product
We have the technical qualifications and experience to provide the level of service desired and expected by the City and stand ready to provide our knowledge and experience for the benefit of your organization.

We would like to express our appreciation to the City and to its Staff for allowing us the opportunity to submit a proposal to perform professional auditing services. We are available, at your convenience, to discuss any aspects of our proposal.

Thank you for allowing us to present our Firm to you.

Conclusion
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City of Dublin Technical Proposal
32 References
1) City of Berkeley
Scope of Work: Annual Comprehensive Financial Report, Gann Limit, SAS114, Measure B ( Alameda County), Vehicle Registration Fee Audit ( Alameda County), Due Diligence Reviews for the RDA Successor Agency
Engagement Partner: Ahmed Badawi ( 2008 – 2019), Mitesh Desai ( 2020- Present) Address: 2180 Milvia Street, Berkeley, CA 94704
Principal Contact:

Henry Oyekanmi
Finance Director
510) 981- 7332
hoyekanmi@ci. berkeley. ca. us
2) City of Antioch
Scope of Work: Annual Comprehensive Financial Report, SAS 114, GANN Limit, Single Audit, Antioch Public Financing Authority, Antioch Area Public Facilities Financing Agency Engagement Partner: Ahmed Badawi ( 2005 – 2019), Mitesh Desai ( 2020- Present) Address: 200 H Street, Antioch, CA 94509
Principal Contact:

Dawn Merchant
Finance Director
925) 779- 6135
dmerchant@ci. antioch. ca. us
3) City of San Luis Obispo
Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, SAS114, Whale Rock Commission
Engagement Partner: Ahmed Badawi ( 2019 – Present)
Address: 990 Palm Street, San Luis Obispo, CA 93401
Principal Contact:

Brigitte Elke
Finance Director
805) 781- 7125
belke@slocity. org
4) City of Petaluma
Scope of Work: Annual Comprehensive Financial Report, Transportation Development Act Fund, SAS 114
Engagement Partner: Ahmed Badawi ( 2019 – Present)
Address: 11 English St, Petaluma, CA 94952
Principal Contact:

Corey Garberolio
Finance Director
707) 778- 4357
cgarbero@cityofpetaluma. org
5) City of Lafayette
Scope of Work: Annual Comprehensive Financial Report, Single Audit, Gann Limit, TDA, Lamorinda Fee and Finance Authority Report, Lamorinda School Bus Transportation Agency Report
Engagement Partner: Ahmed Badawi ( 2020 – Present)
Address: 3675 Mount Diablo Blvd., # 210, Lafayette, CA 94549 Principal Contact:

Tracy Robinson
Administrative Services Director
925) 299- 3227
trobinson@lovelafayette. org
Appendix A
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City of Dublin Technical Proposal
33 Exceptions to the Contract
With regard to the Standard Consulting Services Agreement, we would like the following items to be edited:

Appendix A, Consulting Services Agreement, Section 9. Keeping and Status of Records,

9.1 Records Created as Part of Consultant’ s Performance, we would like to edit the paragraph as follows:

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’ s Performance. Unless such property is proprietary in nature, all reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City.

Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both Parties.

Appendix B
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STAFF REPORT

CITY COUNCIL

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Agenda Item 7.1
DATE: March 21, 2023
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SUBJECT: Update on the Dublin Boulevard Extension Project and Funding Plan Prepared by: Colleen Tribby, Assistant City Manager and Pratyush Bhatia, Transportation and Operations Manager
EXECUTIVE SUMMARY:

The City Council will receive an update on the Dublin Boulevard Extension Project and potential funding sources. The City of Dublin, in cooperation with the City of Livermore, Alameda County Transportation Commission, and Alameda County, proposes to extend Dublin Boulevard approximately 1.5 miles eastward through unincorporated Alameda County and connect to North Canyons Parkway in Livermore, from its current terminus at Fallon Road. The extension is planned to have four to six travel lanes, a Class I trail on the north side, buffered bike lanes, sidewalks, traffic signals, streetlights, utilities, and landscaping.

STAFF RECOMMENDATION:

Receive the report and provide direction on advancing funds to cover future impact fees that will be allocated to the project.

FINANCIAL IMPACT:

There is no financial impact associated with the receipt of this report. The total cost of Dublin’s share of the right-of-way acquisition and project construction is estimated at $124 million.

Funding sources include the East Dublin Traffic Impact Fee (EDTIF) fund ($63 million) and the Tri-Valley Transportation Development Fee ($13.5 million), with the remaining $47.5 million unidentified. Staff plans to pursue grants to cover this balance.

Because EDTIF funds are collected when development happens and are not currently available to spend on the project, the City would need to advance that portion of funding to keep the project on track. Staff’s recommendation regarding the advance is discussed in the body of this Staff Report. 223

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DESCRIPTION:

Background
The Dublin Boulevard Extension Project proposes to extend the roadway approximately 1.5 miles from Fallon Road to North Canyons Parkway in the City of Livermore, through an unincorporated portion of Alameda County. The preliminary cost estimate for the project is currently $151.5 million, which includes right-of-way, environmental mitigation, and construction costs. It is expected that Dublin’s share will be approximately $124 million, and Livermore’s share will be approximately $27.5 million, based on the roadway length in each jurisdiction and a split of the portion of the roadway in unincorporated Alameda County.

The Alameda County Transportation Commission (Alameda CTC) is the implementing agency for the final design phase in cooperation with Dublin, Livermore, and Alameda County. On May 19, 2020, the City Council approved a Cooperative Agreement with Alameda CTC and Livermore for the design phase of the project (Resolution No. 38-20).

Project Status
Currently, the design phase is in the 65% plans, specifications, and estimate (PS&E) review by the City of Dublin, City of Livermore, Alameda County, Dublin San Ramon Services District (DSRSD), and the Zone 7 Water Agency. The 65% PS&E review is the midpoint in a typical 35-65-95 design and review process (some designers and projects refer to a 30-60-90 process). The 65% design includes plans showing typical cross-sections, right-of-way, utilities including drainage/stormwater details, sanitary sewer and water, signing and striping, traffic signals, signal interconnect, streetlighting, landscaping, storm water treatment, and Cottonwood Creek bridge details. It is during the 65% stage where all major design elements are decided, and the extent of the project right-of-way should be determined. Upon completion of the 65% review, the right-of- way appraisal process and acquisition typically gets started. Table 1 shows the project schedule by phase.

Table 1 - Project Schedule
Project Phase Start Date Anticipated Completion
65% Design In Process Summer 2023
95% Design Summer 2023 Summer 2024
Right of Way and Utilities Summer 2023 Summer 2025
Final Design Summer 2024 Winter 2024
Environmental Permitting Fall 2024 Spring 2025
Construction TBD – Funding Dependent TBD
Before the project moves into the construction phase, permits are needed from regulatory agencies due to the project’s direct and indirect impacts. To receive permits, the project must mitigate these impacts. On February 7, 2023, the City Council approved an agreement with RES Environmental Operating Company, LLC for environmental mitigation services for the project (Resolution No. 09-23). The Environmental Permitting phase will begin near the end of the design 224

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phase and is anticipated to be complete by Spring 2025. Construction is anticipated to take 18 months and will not begin until all funding is secured, right-of-way is acquired, and all resource agency permits are issued.

Project Funding and EDTIF Advance
On December 21, 2021, the City Council adopted the update to the EDTIF, which includes this project (Resolution No. 144-21). As development occurs in the East Dublin program area, fees will be collected and will be allocated to the project up to the amount of approximately $63 million.

Since EDTIF funding is not expected to be available by the time the construction phase starts but will be collected over the full buildout duration of Eastern Dublin, Staff has been exploring ways of advancing this funding so the project can proceed. Financing the advance through a bond sale or other means has been determined to be too costly, however Staff has evaluated internal funding sources and has identified a list of sources that can be accessed to fund the advance without impacting City operations and with preserving the City’s current cash flow reserve level.

Table 2 provides Staff’s recommended funding sources over three years, followed by a brief description of each source.

Table 2 – Funding Sources for EDTIF Advance
Funding Sources FY 22-23 FY 23-24 FY 24-25 TOTAL
GF Assigned Reserve Balance $6,257,441 $6,257,441
Economic Stability Reserve $8,000,000 $8,000,000
One-Time Initiatives (Capital) $4,500,000 $4,500,000
Dublin Crossing Fund $9,000,000 $9,000,000
CFD Reimbursement $11,906,472 $11,906,472
GF Surpluses $10,000,000 $7,000,000 $6,400,000 $23,400,000 $37,757,441 $7,000,000 $18,306,472 $63,063,913
 General Fund Assigned Reserve – In August 2022, the City Council approved the setting aside of $20 million for the project to fund the environmental mitigation costs via the contract with RES. There is roughly $6.3 million remaining in that reserve that can be allocated to the EDTIF advance.
 Economic Stability Reserve (ESR) – This reserve was established over eight years ago to allow for a balanced budget in the event of economic uncertainty. Since then, the General Fund undesignated/cash flow reserve has grown to about 85% of the budget, making the ESR not as critical in the short term.
 One-Time Initiatives (Capital) Reserve - This is another long-term reserve that has been utilized for a variety of technological needs. It was last used this fiscal year for citywide signal communications upgrades.
 Dublin Crossing Fund – This fund balance accounts for development agreement fees from the Dublin Crossing development. It is not currently appropriated to any program or project.
 Community Facilities District (CFD) Reimbursement – Staff is working on a CFD 225

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mechanism with the East of Fallon property owners that will reimburse the City for indirect mitigation costs paid to RES totaling $11.9 million. This amount could then be included in the EDTIF advance.
 General Fund (GF) surpluses – Staff anticipates GF operating surpluses over the next three years that could be set aside to advance to the EDTIF.

City Council Direction Needed
Staff is seeking the City Council’s direction and ultimate commitment to utilize internal funding sources to advance the EDTIF funds for the Dublin Boulevard Extension. While the money will not be spent until the construction phase, it is critical to have a funding plan in place to put the City in an advantageous position in seeking outside grant funding for the balance of the project costs. In fact, Dublin, Livermore, and Alameda CTC staff have been working together to identify local, regional, and federal funding sources for the project. By committing local funds for right-of-way, environmental permitting, and construction, the City can demonstrate project readiness, which will make the project more attractive to and competitive for grants such as the Alameda CTC 2026 Comprehensive Investment Plan. The notice of funding opportunity and call for projects for the 2026 Comprehensive Investment Plan is anticipated to be announced in Fall 2024.

Additionally, development of the road is a critical factor in the East of Fallon properties coming online, which will have great value to the City. Economic Development staff are currently working with a consultant to develop a fiscal analysis on the economic impact this area will have on the City based on the current plans, but it is anticipated that the project will bring benefits in the form of property tax, potential sales tax, and creation of jobs, as well as closing a gap in the existing local roadway network connecting Dublin and Livermore.

STRATEGIC PLAN INITIATIVE:

None.

NOTICING REQUIREMENTS/PUBLIC OUTREACH:

The City Council Agenda was posted.

ATTACHMENTS:

None.
226
Update on Dublin Boulevard Extension
and Funding Plan
March 21, 2023
227
The Project
• 1.5 miles extension
• 6 lanes in Dublin to
• 4 lanes in Livermore
• Bike Lanes
• Sidewalk
• Landscaping
• Street Lighting
• Utilities
228
Project Status
• CEQA completed – EIR w/ MMRP ,Aug 2019
• NEPA completed – EA w/ FONSI, Feb 2021
• Cooperative Agreement with Livermore & Alameda CTC
• MOA Design Review ($300,330 Dublin; $127,770Livermore) • Design Phase began in May 2021
• 65% design in process
• All major design elements and extent of right-of-way determined. • RES Agreement for Environmental Mitigation approved byCity Council, Feb 2023
229
Project Schedule
230
Project Costs
• Project Cost (2020 preliminary engineering level estimate) : $151.5M • Divided between Dublin and Livermore based on roadway length. • Unincorporated Alameda County costs are split evenly
– Dublin: $124 M
– Livermore: $27.5M
• Dublin’s identified funding sources include EDTIF ($63M), TVTD ($13M)
– Staff will seek grant funding for the remainder
231
EDTIF Advance
• Use GF reserves to advance EDTIF
• Repayment expected in roughly 10 years
232
EDTIF Advance
• Significant piece to funding plan in order to compete for grant funding opportunities
• Potential Alameda CTC Comprehensive Investment Plan (CIP) 2026 Funding
– if congestion relief funds are included in the Fall 2024 call for projects. • RFP out for grant writing services
233
Next Steps
• Continue to work with Zone 7 and Alameda County –review of Cottonwood Creek, bridge and improvements
• Continue to work with City of Livermore, Alameda County, Zone 7 – review of the PS&E
• Environmental Permitting towards end of Design Phase
• Right-of-way Acquisition, and continue to work with private property owners
• Funding Plan for Construction Phase
– State, Federal Grants, and Measure BB
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Revenue
Thank You
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Dublin City CouncilMarch 21, 2023

Dublin City Council
March 21, 2023