CITY OF HUNTINGTON PARK
Finance Department
City Council Agenda Report
August 15, 2023
Honorable Mayor and Members of the City Council
City of Huntington Park
6550 Miles Avenue
Huntington Park, CA 90255
Dear Mayor and Members of the City Council:
CONSIDERATION AND APPROVAL OF PROFESSIONAL SERVICE AGREEMENT
AND FIRST AMENDMENT TO THE ACCOUNTING/FINANCE SERVICES
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF HUNTINGTON
PARK AND HERRERA & ASSOCIATES
IT IS RECOMMENDED THAT CITY COUNCIL:
1. Approve the Resolution authorizing an agreement with Herrera & Associates, a municipal CPA firm, to provide Financial Consultant, namely John Herrera, CPA; and
2. Approve an appropriation in the amount not to exceed of $22,500 a month for 12 months from account(s):
33% from No. 111-3010-415.56-41
33% from No. 787-8914-499.56-41
33% from No. 111-9050-419.43-15
3. Authorize the City Manager to execute the Professional Services Agreement and the first amendment to the agreement.
BACKGROUND
The city has been rebuilding the financial records from Fiscal Year 2020 through the current year utilizing Mr. Herrera’s services in various capacities. Additionally, other staffing agencies have provided staff to support the efforts of the ROAR project including Kajiwara Communications and MuniTemps. Kajiwara Communications contract ended in June 2023 and MuniTemps has continued to provide support to the ROAR project, which includes audit support.
The city is midway through the successful reconstruction of accounting records project and is embarking on the implementation a new ERP system, namely Tyler Munis Financial System, that will require input and direction from the finance department and finance staff.
CONSIDERATION AND APPROVAL ACCOUNTING/FINANCE SERVICES
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF HUNTINGTON
PARK AND HERRERA & ASSOCIATES
August 15, 2023
PURPOSE/JUSTIFICATION OF RECOMMENDED ACTION
Due to the rebuilding of the ROAR project and the related Tyler Munis Financial System implementation project currently underway it is recommended that the City of Huntington Park enter into a Professional Services Agreement with Herrera & Associates to help strengthen current staff understanding process and provide accounting/finance assistance to the Finance Department. Services to be provided in the scope of services is attached to Exhibit “A” in the contract.
Herrera & Associates has provided high quality accounting/finance assistance to the Municipalities, assisting the Finance Departments with completing critical financial services. Mr. John Herrera has 34 years of municipal accounting/finance experience covering all aspects of finance support.
At this time, staff recommends approving the Professional Services Agreement (PSA) so there is no disruption of critical accounting/financial functions of the City.
FISCAL IMPACT/FINANCING
Requesting $22,500 a month appropriated to the Fiscal Year 2023-2024 Operating Budget.
CONCLUSION
Upon City Council approval, the City Manager will execute the Professional Service Agreement and the First Amendment to the Professional Service Agreement.
Respectfully submitted,
RICARDO REYES
City Manager
CONSIDERATION AND APPROVAL ACCOUNTING/FINANCE SERVICES
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF HUNTINGTON
PARK AND HERRERA & ASSOCIATES
August 15, 2023
JEFF JONES, MBA
Director of Finance
ATTACHMENT(S)
A. Resolution authorizing an agreement with Herrera & Associates, a municipal CPA firm, to provide Financial Consultant, namely John Herrera, CPA B. Professional Services Agreement between the City of Huntington Park and Herrera & Associates and Exhibit A. Proposal
ATTACHMENT “A”
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RESOLUTION NO. 2023-XX
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON PARK, CALIFORNIA,
AUTHORIZING AN AGREEMENT WITH HERRERA
& ASSOCIATES TO PROVIDE TEMPORARY
STAFFING SERVICES AND APPROVING AN
APPROPRIATION IN THE AMOUNT OF $22,500
PER MONTH FOR FISCAL YEAR 2023-24
WHEREAS, The Finance Director is seeking approval from the City Council for an agreement commencing on August 16, 2023 for Fiscal Year 2023-24 with Herrera & Associates and authorize an appropriation in the amount of $22,500 per month to fulfill the terms of the agreement; and
WHEREAS, Due to Herrera & Associates specialized knowledge in the field of municipal finance and experience in providing consulting services for municipalities, the Finance Director requests that the City Council make the necessary findings to exercise its authority to procure these services.
WHEREAS, the amounts set forth in Exhibit A, are equal to or less than the cost of providing the services for which the fees are charged.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON PARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council of Huntington Park hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
SECTION 2. The Huntington Park City Council finds, by this Resolution adopted that it is appropriate to procure Herrera & Associates consulting services due to their specialized knowledge in the field of finance and experience in providing consulting services for municipalities.
SECTION 3. The City Council authorizes the City Manager to enter into an agreement with Herrera & Associates on August 16, 2023 and to approve an appropriation in the amount of $22,500 per month for Fiscal Year 2023-24 to fulfill the terms of the agreement, approved as to form by the City Attorney.
SECTION 4. The City Council authorizes the Mayor to execute the agreement for and on behalf of the City of Huntington Park. The Mayor is also authorized to execute this Resolution.
SECTION 5. This Resolution shall become effective immediately upon its adoption.
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PASSED, APPROVED AND ADOPTED this 15th day of August, 2023 Marilyn Sanabria,
Mayor
ATTEST:
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Eduardo Sarmiento,
City Clerk
ATTACHMENT “B”
1 AGREEMENT NO.______________
AGREEMENT
This Agreement is made and entered into Between the City of Huntington Park, a municipal corporation (hereinafter referred to as “CITY”), and Herrera & Associates, a DBA for Juan “John” Herrera (hereinafter referred to as (CONSULTANT”).
WITNESSETH
WHEREAS, CITY desires to retain the services of an interim Financial Consultant to improve the efficiency, effectiveness, and quality and timeliness of key projects and initiatives of the CITY’s Finance Department, as described in Exhibit “A” (Consultant Proposal) attached hereto and incorporated herein; and
WHEREAS, CONSULTANT is duly licensed under the laws of the State of California and is fully qualified to supply an Financial Consultant to provide specialized consulting services in the areas of municipal accounting, staff training, and related activities to support the CITY’s Finance Department contemplated by this Agreement; NOW, THEREFORE, the parties hereto hereby agree as follows:
1. Designation of Financial Consultant. CONSULTANT hereby designates and assigns John Herrera as FINANCIAL CONSULTANT for the CITY. CONSULTANT ensures that John Herrera meets the requirements of the Financial Consultant services set forth in the Consultant’s proposal as shown in Exhibit “A”.
2. Scope of Services. General Financial Consultant services to be provided pursuant to this Agreement are as set forth in Exhibit “A”. 2 3. Time and Order of Work. The CONSULTANT is being hired for his municipal finance expertise and his 33 years working in City government. The format of the work approach and work plan and number of hours of work shall be as mutually agreed upon by John Herrera and CITY’s Finance Director. John Herrera shall complete all work and services as assigned by CITY’s Finance Director in a timely and workmanlike manner.
4. Compensation. Services included in the scope of services (Exhibit “A”) authorized by the CITY and agreed to by John Herrera will be billed at a fixed monthly bill rate of $22,500.
John Herrera shall not be reimbursed for any other expenses related to the services to be provided, and all other indirect expenses of doing business shall be the responsibility of CONSULTANT and/or John Herrera. John Herrera, however, shall be provided access to CITY’s computer system directly and via VPN connection, and copy machines, paper and supplies which are only to be utilized on projects for the CITY.
Notwithstanding the foregoing, John Herrera may be reimbursed for mileage traveled outside the County of Los Angeles on behalf of and as approved by the CITY, at the CITY’s approved mileage reimbursement rate. In addition, John Herrera will be provided, by the CITY, an office, and or office space, and phone for use by CONSULTANT when working at CITY offices.
5. Billing Procedures and Monthly Statements.
a. CONSULTANT shall submit to CITY, within ten (10) days after the end of each calendar month, an invoice for the $22,500 fixed monthly bill rate. The parties acknowledge that payment of all monthly billing statements is expected to be made within thirty (30) days of CONSULTANT’s invoice date.
6. Additional Consulting Services.
3 a. CONSULTANT is associated with a separate temporary staffing division doing business in Huntington Park under the name of MuniTemps – Municipal Staffing Solutions. CITY understands that MuniTemps may also provide staffing services, upon independent authorization from the City Manager or his designee. CONSULTANT may provide these staffing services upon review and approval of the City Manager or his designee.
7. Term of the Agreement. This Agreement shall have an effective date as of August 1, 2023 and shall be and remain in full force and effect until terminated in accordance with the provisions of Section 8 hereof.
8. Termination of the Agreement. CITY has the right to terminate CONSULTANT’s services at any time, without cause, subject to an obligation to give advance notice in writing to CONSULTANT on the first of the month, at least thirty (30) days prior to termination.
9. Files. All files and records pertaining to CITY shall be and remain the property of CITY.
10. Modifications to the Agreement. Unless otherwise provided for in this Agreement, modifications relating to the nature, extent or duration of CONSULTANT’s and/or John Herrera’s professional services to be rendered hereunder shall require the prior written approval of the City Manager, or his designee, CONSULTANT. Any such written approval shall be deemed to be a supplement to this Agreement and shall specify any changes in the Scope of Services.
11. Independent Contractor. No employment relationship is created by this Agreement. CONSULTANT and/or John Herrera shall, for all purposes, be considered as independent contractors of CITY. In performing the services required under this 4 Agreement, CONSULTANT and/or John Herrera will never act as an agent of CITY.
However, should agency be unwittingly established, John Herrera shall be entitled to the same immunities and protections as any other government employee exercising discretion under all applicable statutes, regulations and judicial and administrative precedent.
Notwithstanding the foregoing, CONSULTANT and/or John Herrera shall not be entitled to receive any other employee benefits from CITY and shall not have the authority to independently authorize expenditures or disbursement of CITY’s funds.
12. Nondiscrimination. In the performance of this Agreement, CONSULTANT shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, national origin, sexual orientation or medical condition. CONSULTANT shall take affirmative action to ensure that applicants are employed, and that employees are treated during their employment, without regard to their race, religion, color, sex, national origin, sexual orientation or medical condition. Such actions shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training.
13. Assignment and Subcontractors. This Agreement contemplates the personal professional services of John Herrera and this Agreement and the assignment of John Herrera as CITY’s Financial Consultant, or any portion thereof, shall not be assigned to another person without the prior written consent of the City Manager or Finance Director of the CITY or his designee. CONSULTANT shall be responsible for the acts, errors or omissions of its employees and subcontractors.
14. Indemnity of CITY. CONSULTANT and/or John Herrera shall indemnify and hold harmless CITY, its agents, officers, employees, representatives and/or affiliates against any and all claims, demands, liabilities, damages or injury to any person, or damage or loss of any property, including reasonable attorney’s fees and costs, arising from any negligent act or omission of CONSULTANT and/or John Herrera, its 5 subcontractors, officers, agents, employees, representatives, and/or affiliates while performing services pursuant to this Agreement, except for damages or injuries which are caused by the sole negligence of CITY.
15. Indemnity of CONSULTANT. CITY shall indemnify and hold harmless CONSULTANT, its agents, officers, employees, representatives and/or affiliates against any and all claims, demands, liabilities, damages or injury to any person, or damage or loss of any property, including reasonable attorney’s fees and costs, arising from any negligent act or omission of CITY, its subcontractors, officers, agents, employees, representatives, and/or affiliates other than CONSULTANT and/or John Herrera pursuant to this Agreement, except for damages or injuries which are caused by the negligence of CONSULTANT and/or John Herrera.
16. Standard of Care. In the performance of his professional services, CONSULTANT and/or John Herrera will use that degree of care and skill ordinarily exercised under similar conditions in similar localities and no other warranties, express or implied, are made or intended in any of John Herrera’s proposals, contracts or reports.
CONSULTANT and/or John Herrera shall be entitled to rely upon the accuracy of data and information provided by CITY or others without independent review or evaluation unless provided otherwise in each specific authorization. John Herrera shall perform his services in connection with applicable laws, rules, regulations and standards that are in effect as of the date of this agreement.
17. Severability. Should any provision herein be found or deemed to be invalid, this Agreement shall be construed as not containing such provision, and all other provisions which are otherwise lawful shall remain in full force and effect, and to this end the provisions of this Agreement are declared to be severable.
18. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
6 19. Insurance.
a. CONSULTANT shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the services hereunder by CONSULTANT, its agents, representatives, employees or subcontractors. With respect to general liability and errors and omissions, liability coverage should be maintained for a minimum of three (3) years after the end of this Agreement.
CONSULTANT shall maintain the following limits on the following types of insurance:
1. General Liability Insurance in the sum of $1,000,000.00 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability Insurance in the sum of $1,000,000.00 per accident for bodily injury and property damage.
3. Worker’s Compensation Insurance as required by the State of California. b. Any deductibles or self-insured retentions must be declared to and approved by CITY.
c. CONSULTANT agrees to increase the limits of its General Liability Insurance or its Automobile Liability Insurance if the CITY should require a higher insurance 7 limit for the General Liability Insurance or the Automobile Liability Insurance during the term of this Agreement.
d. The General Liability and Automobile Liability policies are to contain, or be endorsed to contain, the following provisions:
1. CITY, its officers, officials, employees and designated volunteers are to be covered as insured with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of CONSULTANT; and with respect to liability arising out of work or operations performed by or on behalf of CONSULTANT, including materials, parts, or equipment furnished in connection with such work, services or operations.
2. For any claims related to this Agreement, CONSULTANT’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents and designated volunteers. Any insurance or selfinsurance maintained by CITY, its officers, officials, employees, agents or designated volunteers shall be excess of CONSULTANT’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by the Insured except after thirty (30) days prior written notice given to CITY.
4. General Liability Insurance cannot be on a claims-made basis.
5. Insurance is to be placed with insurers with a current AM best rating of no less than A if admitted. If Error and Omissions coverage is not available from an admitted insurer, the coverage may be written by a non-admitted 8 insurance coverage. A non-admitted insurance company shall have an AM best rating of A or higher.
6. CONSULTANT shall furnish CITY with endorsements affecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. Endorsements are to be on forms provided by CITY, unless the insurance company will not use CITY form. Endorsements are to be received and approved by CITY before work commences. As an alternative to CITY’s forms, CONSULTANT’s insurer may provide complete copies of all required insurance policies, including endorsements affecting the coverage required by the specifications provided for herein.
7. CONSULTANT shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. Coverages for subcontractors shall be subject to all the requirements stated herein.
20. Attorney’s Fees. If any action at law or inequity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this Agreement, the prevailing party will be entitled to reasonable attorney’s fees, which may be assessed by the court in the same action or a separate action brought for that purpose, in addition to any other relief to which that party may be entitled.
21. Compliance with all Laws. CONSULTANT and John Herrera agree to comply with all federal, state and local laws, while providing services to CITY under this Agreement.
9 22. Entire Agreement. This Agreement shall constitute the full and complete agreement and understanding of the parties and shall be deemed to supersede all other written or oral statements of either party relating to the subject matter hereof.
23. CITY agrees that it will not hire associates or employees of CONSULTANT, as a CITY employee or contractor, directly or indirectly through any person or other firm, without the advance written approval of CONSULTANT, either during the temporary staffing assignment or within 183 days after the end of assignment, or be subject to a recruiting fee of 29% of annualized salary for the CONSULTANT’s associate assigned to CITY. If CITY retains CONSULTANT’s associate on the temporary staffing assignment a minimum of 980 hours, CITY shall have the option to hire the CONSULTANT’s associate for a recruiting fee of 18% of annual salary.
CITY agrees not to change the job classification or related scope of work on this assignment without CONSULTANT’s advance written approval. No provision of this Agreement may be amended or waived unless agreed to in writing and signed by both parties. All CONSULTANT’s associates shall be under CITY’s supervision and CITY shall have final approval on any and all decisions by CONSULTANT’s associates assigned to CITY.
IN WITNESS WHEREOF, the duly authorized representatives of the parties have caused this Agreement to be executed as of the dates indicated below.
CITY OF HUNTINGTON PARK
DATED: By: ____________________________
RICARDO REYES, City Manager
HERRERA & ASSOCIATES
10 DATED: By: ___________________________
John Herrera, Financial Consultant
APPROVED AS TO FORM:
________
Arnold Alvarez-Glasman, City Attorney
HERRERA & ASSOCIATES
Municipal Accounting Services 14241 E. Firestone Blvd, Ste. 400 La Mirada, CA 90638
(800) 691-3120 Toll Free Phone
[email protected]
June 23, 2023
Ricardo Reyes
City of Huntington Park
6550 Miles Avenue
Huntington Park, CA 90255
Dear Mr. Reyes:
City of Huntington Park – Monthly / Hourly Financial Consultant Services Herrera & Associates is a municipal CPA firm led by John Herrera, CPA who has for decades served City organizations in Los Angeles (including Huntington Park) as interim Finance Director and consultant. As the City hires a permanent Finance Director, the City can retain John Herrera, CPA as a Financial Consultant to provide seamless transition.
The following is a partial list of the consulting services provided by John Herrera:
1. ROAR Project: Leadership, direction, and support to keep the ROAR project on schedule with City Manager and Council goals.
2. Trainer (Finance Staff): Provide ongoing training to Finance staff, from Accounting Technician, to Accountant, and including Finance Director.
3. Investments Support: Support the City Treasurer / Finance Director to maximize investment yields while ensuring that all trades are in compliance with the safety and liquidity goals of investment policy.
4. Lease Revenue Financing: Work with City staff and the bond financing team to ensure financial data is timely provided to keep the project moving, and to dot I’s and cross T’s to minimize the borrowing costs and maximize proceeds for construction of Aquatics project.
5. Contracts Negotiation: Be available to assist the City as needed.
6. Special Projects: Support any special projects of City Manager or Council to help bring them to fruition on schedule.
It has been a pleasure serving the City as Finance Director during the past seven months. We have worked well as a team to return the trust and integrity of the Finance Department, although there is still much work to do.
HERRERA & ASSOCIATES
Financial Consultant Proposal – Huntington Park
FEE PROPOSAL:
John Herrera, CPA has 34 years’ experience and a strong track record in City government and municipal finance. He has a specialized skill set in municipal finance that allows him to partner with the City to create high-impact solutions, which can create high value for the organization and the community.
Here are the two fee options for the City to consider in hiring John Herrera, CPA:
• Option I – Fixed fee monthly consulting contract of $22,500, which will ensure John Herrera is available to the City as needed to support the list of seven (7) consulting services list above. However, there is no specific hour requirement, other than a commitment to work on specific projects under the direction of City staff. The fixed fee contract guarantees the City first priority on all work performed by John Herrera.
• Option II – Hourly rate of $275, which is billed in minimum ½ hour increments.
Most of the work performed by John Herrera will be remotely, however, he will make himself available for key meetings and special projects via Zoom, Teams, or in person as needed to advance the most important initiatives of the City.
If this proposal is accepted by the City, a separate consulting contract will be drafted and sent to the City for approval as this service is through my CPA firm of Herrera & Associates with an effective date of August 16, 2023.
Our firm appreciates the opportunity to work with the City of Huntington Park and we look forward to continuing this relationship to meet the City’s needs for financial management and any other municipal accounting needs.
Sincerely,
John Herrera, CPA
Herrera & Associates
License Number 1655 (California Board of Accountancy)