AGENDA
REGULAR CITY COUNCIL MEETING
COUNCIL CHAMBERS
5000 CLARK AVENUE
LAKEWOOD, CALIFORNIA
April 8, 2025, 7:30 p.m.
CALL TO ORDER
INVOCATION: Wanda Thomas, Spiritual Assembly of the Baháʼís of Lakewood PLEDGE OF ALLEGIANCE: Scout Troop 247
ROLL CALL: Mayor Todd Rogers
Vice Mayor Cassandra Chase
Council Member David Arellano
Council Member Steve Croft
Council Member Jeff Wood
ANNOUNCEMENTS AND PRESENTATIONS:
Presentation by Los Angeles County Department of Public Works Staff Regarding L.A. County Consolidated Sewer Maintenance District Proposed Sewer Rate Increase
PUBLIC COMMENT ON ITEMS IN THE AGENDA
ROUTINE ITEMS:
All items listed within this section of the agenda are considered to be routine and will be enacted by one motion without separate discussion. Any Member of Council may request an item be removed for individual discussion or further explanation. All items removed shall be considered immediately following action on the remaining items.
RI-1 PERSONNEL TRANSACTIONS - It is recommended City Council approve report of personnel transactions.
RI-2 REGISTERS OF DEMANDS - It is recommended City Council approve registers of demands.
RI-3 TRANSITION TO BY-DISTRICT APPOINTMENTS FOR CITY COMMISSION MEMBERS, RESOLUTION NO. 2025-12 - It is recommended City Council adopt the proposed resolution.
RI-4 SELECTION OF INDEPENDENT AUDIT SERVICES PROVIDER - It is recommended City Council approve The Pun Group LLC as the City’s independent auditor and authorize staff to enter into an agreement for Fiscal Years 2024-25 through 2026-27, with an option to extend the term through FY 2028-29.
REPORTS:
3.1 IMPLEMENTING THE BUILDING PERMIT MODULE FOR OPENGOV - It is recommended City Council direct the City Manager to sign the order form with OpenGov for implementation of the building permit software.
In compliance with the Americans with Disabilities Act, if you are a qualified individual with a disability and need an accommodation to participate in the City Council meeting, please contact the City Clerk’s Office, 5050 Clark Avenue, Lakewood, CA, at 562/866-9771, ext. 2200; or at [email protected] at least 48 hours in advance to ensure that reasonable arrangements can be made to provide accessibility to the meeting.
Agenda items are on file in the Office of the City Clerk, 5050 Clark Avenue, Lakewood, and are available for public review during regular business hours. Any supplemental material distributed after the posting of the agenda will be made available for public inspection during normal business hours in the City Clerk’s Office. For your convenience, the agenda and the supporting documents are available in an alternate format by request and are also posted on the City’s website at www.lakewoodcity.org City Council Agenda
April 8, 2025
AGENDA
LAKEWOOD HOUSING SUCCESSOR AGENCY
1. REGISTER OF DEMANDS - It is recommended Housing Successor Agency approve register of demands.
ORAL COMMUNICATIONS:
ADJOURNMENT
1 PROPOSED AGREEMENT FOR AUDIT SERVICES
This Agreement is made and entered into as of the 8th day of April, 2025, by and between the City of Lakewood, a municipal corporation ("City") and The Pun Group, LLP ("Auditor").
RECITALS
A. Auditor is specially trained, experienced and competent to perform the services as presented in the Request for Proposal and Proposer’s Response, which will be required by this Agreement; and
B. Auditor possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.
C. City desires to retain Auditor to render professional auditing services as set forth in this Agreement.
AGREEMENT
1. Scope of Services. The Auditor shall furnish the following services in a professional manner. Auditor shall perform the services described on Exhibit A, which is attached hereto and incorporated herein by reference. Auditor shall provide said services at the time, place, and in the manner specified in Exhibit A.
2. Time of Performance. The services of Auditor are to commence upon execution of this Agreement and shall continue until all authorized work is approved by the City. All such work shall be completed as stated in the Request for Proposal for Audit Services, Section IV, B.
Anticipated Audit Schedule and C. Date Reports Are Due.
3. Compensation. Compensation to be paid to Auditor shall be in accordance with the Schedule of Charges set forth in Exhibit B, which is attached hereto and incorporated herein by reference. In no event shall Auditor's compensation exceed the amount agreed to of $60,000 FY 2025, $63,000 FY 2026, and $66,152 FY 2027, without additional authorization from the City.
Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.
4. Method of Payment. Auditor shall submit billings to City describing the work performed. Auditor's bills shall include a brief description of the services performed and the date the services were performed. Progress payments will be made on the basis of hours of work completed during the course of the engagement in accordance with the firm’s dollar cost bid proposal. Interim billings shall cover a period of not less than a calendar month. Final payment will be made after delivery of the firm’s final reports.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
2 5. Extra Work. At any time during the term of this Agreement, City may request that Auditor perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Auditor shall not perform, nor be compensated for, Extra Work without written authorization from the City.
6. Termination. This Agreement may be terminated by the City immediately for cause or by either party without cause upon sixty days’ written notice of termination. Upon termination, Auditor shall be entitled to compensation for services performed up to the effective date of termination.
7. Ownership of Documents. All reports, documents and other writings prepared by and for Auditor, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Auditor for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Auditor or to any other party. Auditor shall, at Auditor's expense, provide such reports, documents and other writings to City upon written request.
8. Auditor's Books and Records.
a. Auditor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of seven (7) years, or for any longer period required by law, from the date of final payment to Auditor to this Agreement.
b. Auditor shall retain all working papers and reports at the auditor's expense for a minimum of seven (7) years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available to the City or any government agencies included in the audit of federal grants. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Treasurer (Director of Finance & Administrative Services), or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Auditor's address indicated for receipt of notices in this Agreement.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
3 d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Auditor's business, City may, by written request by any of the named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Auditor, Auditor's representatives, or Auditor's successor-in-interest.
9. Independent Contractor. It is understood that Auditor, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the City. Auditor shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Auditor hereby expressly waives any claim it may have to any such rights. City shall not reimburse Auditor for business expenses or supplies and shall not provide Auditor with vacation, pension, insurance, or sick leave. City shall only be required to make its facilities accessible to Auditor as required for Auditor’s performance of its services as specified in the Request For Proposal. Auditor shall provide Auditor’s own office, tools and supplies and shall be free to engage in contracts with other persons or agencies, either public or private.
10. Interest of Auditor. Auditor (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Auditor's services hereunder. Auditor further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
Auditor is not a designated employee within the meaning of the Political Reform Act because Auditor:
a. will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)
11. Professional Ability of Auditor. City has relied upon the professional training and ability of Auditor to perform the services hereunder as a material inducement to enter into this Agreement. Auditor shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Auditor under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Auditor's field of expertise.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
4 12. Compliance with Laws. Auditor shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations.
13. Licenses. Auditor represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Auditor to practice its profession. Auditor represents and warrants to City that Auditor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Auditor to practice its profession. Auditor shall maintain a City of Lakewood business license.
14. Indemnity. Auditor agrees to defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therein), arising out of and to the extent caused by the Auditor’s negligent acts, errors, or omissions in the performance of this Agreement or its failure to comply with any of its obligations contained in this Agreement, except for any such claim arising out of the sole negligence or misconduct of the City, its officers, agents, employees or volunteers.
15. Insurance Requirements.
a. Auditor, at Auditor's own cost and expense, shall, procure and maintain, for the duration of the contract, the following insurance policies. i. Workers' Compensation Coverage. Auditor shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Auditor shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non-renewal of all Workers' Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Auditor for City.
ii. General Liability Coverage. Auditor shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.
iii. Automobile Liability Coverage. Auditor shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Auditor arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
5 of not less than one million dollars ($1,000,000) combined single limit for each occurrence.
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language:
i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Auditor, including materials, parts or equipment furnished in connection with such work or operations.
ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents.
v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City's option, Auditor shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance. Auditor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.
16. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
6 If to City: City of Lakewood
P.O. Box 220
Lakewood, CA 90714
Attention: Director of Finance & Administrative Services If to Auditor: The Pun Group, LLP
200 East Sandpointe Avenue, Suite 600
Santa Ana, CA 92707
Attention: Sophia Kuo, CPA, MBA
17. Entire Agreement. This Agreement constitutes the complete and exclusive statement of Agreement between the City and Auditor. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.
18. Amendments. This Agreement may be modified or amended only by a written document executed by both Auditor and City and approved as to form by the City Attorney.
19. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Auditor. Assignments of any or all rights, duties or obligations of the Auditor under this Agreement will be permitted only with the express consent of the City. Auditor shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the City. If City consents to such subcontract, Auditor shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.
20. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.
21. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
22. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Los Angeles.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
7 23. Litigation Expenses and Attorneys' Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys' fees.
24. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and shall divide the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS Foundation ("JAMS") or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.
25. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.
26. Authority to Enter Agreement. Auditor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
27. Prohibited Interests. Auditor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Auditor, to solicit or secure this Agreement. Further, Auditor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Auditor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
28. Equal Opportunity Employment. Auditor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age.
Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Auditor shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
8 IN WITNESS HEREOF, the parties have caused this Agreement to be executed on the date first written above.
CITY OF LAKEWOOD: AUDITOR:
________________________________________ By:
Todd Rogers, Mayor
Print Name: Sophia Kuo
ATTEST: Title: Engagement Partner, CPA, MBA
Address: 200 East Sandpointe Ave. Suite 600
_______________________________ Santa Ana, CA 92707
Jo Mayberry, City Clerk
Telephone No: 949-777-8809
APPROVED AS TO FORM: Business License #
____________________________________
City Attorney
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
9 EHXIBIT – A
Attached and incorporated by reference to Exhibit A:
• Lakewood Request for Proposal (RFP)
• The Pun Group Proposal in response to the above RFP
City of Lakewood CA
PROFESSIONAL AUDITING SERVICES AGREEMENT
10 EXHIBIT – B
Attached and incorporated by reference to Exhibit B:
• Lakewood Request for Proposal (RFP)
• The Pun Group Proposal in response to the above RFP
OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
Order Form Number: Q-06171 Prepared By: Isabel Zarrow
Created On: 03/26/2025 Email: [email protected]
Order Form Expiration: 04/30/2025 Contract Term: 25 Months Subscription Start Date: 06/01/2025
Subscription End Date: 06/30/2027
Customer Information:
Customer: City of Lakewood, CA Contact Name: Michael Jenkins Bill To/Ship To: 5050 Clark Avenue Email: [email protected] Lakewood, California Phone: 562-866-9771
90712
United States
Order Details:
Billing Frequency: Prepaid
Payment Terms: Net 30 Days
SOFTWARE SERVICES:
Product Name Start Date End Date Annual Fee
Permitting and Licensing - Building Permits &
Inspectional Services Additional Service Area 06/01/2025 06/30/2025 $2,969.34 Permitting and Licensing - Building Permits &
Inspectional Services Additional Service Area 07/01/2025 06/30/2026 $37,413.71 Permitting and Licensing - Building Permits &
Inspectional Services Additional Service Area 07/01/2026 06/30/2027 $39,284.39 PROFESSIONAL SERVICES:
Product Name Start Date Description Fee
Professional Services
Deployment - Prepaid 06/01/2025 Custom Deployment from OpenGov Professional Services team. Scope-dependent. $16,200.00 Professional Services Total: $16,200.00
Customer Billing/Service Periods:
Period: Total:
06/01/2025 $19,169.34
07/01/2025 $37,413.71
07/01/2026 $39,284.39
Order Form Legal Terms:
This Order Form incorporates the OpenGov Master Services Agreement ("MSA") between Customer and OpenGov dated April 23, 2024.
The "Agreement" consists of the Order Form(s), MSA, and, if Professional Services are purchased, the Statement of Work.
Unless otherwise specified above, fees for the Software Services and Professional Services shall be due and payable, in advance, 30 days from receipt of the invoice.
By signing this Order Form, Customer acknowledges that it has reviewed, and agrees to be legally bound by the Agreement. Each party’s acceptance of this Agreement is conditional upon the other’s acceptance of the Agreement to the exclusion of all other terms.
City of Lakewood, CA: OpenGov, Inc.
Signature:
____________________________
Signature:
____________________________
Name:
____________________________
Name:
____________________________
Title:
____________________________
Title:
____________________________
Date:
____________________________
Date:
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