Agenda packet — Finance & Governance Committee, June 13, 2023

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AGENDA

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Council Chambers, 305 West Third Street
June 13, 2023
Regular Meeting - 5:00 to 6:30 PM

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1 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
June 13, 2023 - Page 2

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A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA

A person may address the legislative body only on matters not appearing on the agenda and within the subject matter jurisdiction of the legislative body. Speaker requests shall be submitted as set forth on the first page of this agenda. Speakers are limited to three minutes. After 30 minutes, if all speakers have not had the opportunity to speak, the remaining speakers will be given an opportunity to speak prior to adjournment of the meeting. The legislative body cannot enter into a detailed discussion or take action on any items presented during public comments at this time. Such items may only be referred to the City Manager/Executive Director/Secretary for administrative action or scheduled on a subsequent agenda for discussion. Persons wishing to speak on public hearing items should do so at the time of the hearing.

C. CONSENT AGENDA

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the May 23, 2023 regular meeting as presented.

Contact: Rose Chaparro, (805) 385-7805
D. REPORTS

1. Human Resources Department
SUBJECT: Third Amendment to Agreement for Recruitment Services with Gallagher Benefit Services, Inc. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to execute a Third Amendment to Agreement No. 9338- 21-HR with Gallagher Benefit Services, Inc. for recruitment services to extend the term to September 30, 2025, and increase the total amount by $155,000 to $355,000.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/ooTmplzm-vQ
Contact: Steve Naveau, (805) 385-7947

2. Information Technology Department
SUBJECT: Third Amendment to Agreement A-8011 with Superion LLC, a CentralSquare Company, for Information Technology Software and Services. (10 minutes) 2 OXNARD CITY COUNCIL: FINANCE & GOVERNANCE COMMITTEE
June 13, 2023 - Page 3

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a Third Amendment to Software License Agreement A-8011 with Superion LLC, a CentralSquare Company, in the amount of $612,476 for FY23-24 with a new not-to-exceed total agreement amount of $2,070,981 for information technology software and services.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/BlaBdiL5UZQ
Contact: Robert Ruben, (805)385-7554

3. Public Works Department
SUBJECT: Fiscal Year 2023-24 Utility Ratepayers Assistance Program (Project Assist) Update. (15 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council:

1. Adopt a resolution for the Utility Ratepayers Assistance Program (Project Assist) for Fiscal Year 2023-24 to assist eligible Oxnard residents and authorize staff to grant financial relief equal to a monthly $25.00 maximum credit per utility bill charged to residential customers who meet the eligibility requirements discussed in this staff report up to the amount funded for Fiscal Year 2023- 24; and

2. Authorize staff to fund Project Assist in Fiscal Year 2023-24 by utilizing $241,500 that has been paid to the City for late penalties charged to City utility customers.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/z8ZLTrGGF_A
Contact: Michael Wolfe, (805) 385-8055

4. Public Works Department
SUBJECT: Audit Services with Eadie & Payne, LLP for the City’s Golf Operations Audit. (10 minutes)

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve an amount not to exceed $20,000 for Eadie & Payne, LLP to perform an audit of the City’s golf operations.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/eVY0YWUzIl0
Contact: Michael Wolfe, (805) 385-8055
E. ITEMS FOR FUTURE AGENDAS

F. ADJOURNMENT

3 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

CONSENT AGENDA
AGENDA ITEM NO. C.1

DATE: June 13, 2023

TO: Finance & Governance Committee

FROM: Rose Chaparro, City Clerk, (805) 385-7805, [email protected]

SUBJECT: Approval of Minutes.

RECOMMENDATION

That the Finance & Governance Committee approve the minutes of the May 23, 2023 regular meeting as presented.

BACKGROUND

Approval of Minutes.

STRATEGIC PRIORITIES

This agenda item is a routine operational item.

FINANCIAL IMPACT

There is no financial impact.

Prepared by: Rose Chaparro, City Clerk

ATTACHMENTS

1. MINUTES 05 23 2023 Finance & Governance

4 MINUTES

OXNARD CITY COUNCIL

FINANCE AND GOVERNANCE COMMITTEE
Regular Meeting
May 23, 2023

A. ROLL CALL, POSTING OF AGENDA, FLAG SALUTE
At 5:02 p.m., Chair John C. Zaragoza called to order the regular meeting of the Oxnard City Council Finance and Governance Committee in the City Hall Council Chambers at 305 W. Third Street, Oxnard, California. The City Clerk called the roll and announced the posting of the agenda. Chair Zaragoza , Member Gabriela Basua; and Member Gabriel (Gabe) Teran were present in person.

Member Basua joined the meeting at 5:05 p.m.

Staff members present in person were Alexander Nguyen, City Manager; Ashley Golden, Assistant City Manager ; Shiri Klima, Deputy City Manager; Stephen M.

Fischer, City Attorney; Michelle (Elle) McCarron, Assistant City Attorney ; Denise Morehouse, Assistant Chief of Police ; Luis McArthur, Police Commander ; Alexander Hamilton, Fire Chief ; Mark Sewell, Assistant Chief Financial Officer ; Beth Vo, Assistant Chief Financial Officer; V ictor Zambrano, Budget Manager ; Michael Wolfe, Public Works Director ; Brian Yanez, Assistant Public Works Director ; Steve Howlett, Assistant Public Works Director ; Joseph Marcinko, Assistant Public Works Director ; Omar Castro, Water Division Manager ; Eric L. Storrie, CPRP , Special Districts Manager; Anthony Miller, Special Districts Project Manager ; Juanita Guzman, Administrative Services Manager ; Emilio Ramirez, Housing Director ; Albert Ramirez, Assistant Housing Director ; Maureen Tamuri, Interim Community Development Director; Helen Miller, Chief Information Officer; Gary Krumian, IT Programmer Analyst; Steve Naveau, Human Resources Director ; Terrel Harrison, Cultural & Community Services Director ; Eden Alomeri, Revenue & Licensing Director & Assistant City Treasurer; Dee Lai, Assistant City Clerk and Rose Chaparro, City Clerk.

Denise Olson, Interim Chief Financial Officer participated via videoconference.

Consultants Christian Sprunger, Assistant Vice President, NHA Advisors and Amanda Welker, Financial Analyst, NBS Local Government Consultants also participated via videoconference.

Consideration of Teleconference Participation pursuant to Assembly Bill 2449.

B. PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Public comments were received from Douglas Partello (water rates).

C. CONSENT AGENDA

5 MAY 23, 2023 OXNARD CITY COUNCIL PAGE 2

FINANCE & GOVERNANCE COMMITTEE

1. City Clerk Department
SUBJECT: Approval of Minutes.

RECOMMENDATION: That the Finance & Governance Committee approve the minutes of the May 9, 2023 regular meeting as presented.

It was moved by Memb er Teran, seconded by Member Basua, to approve the Information/Consent item as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-0.

D. REPORTS

1. Public Works Department

SUBJECT: Fiscal Year 2023-24 Landscape Maintenance Districts Initiation of Proceedings to Levy Assessments, Approval of a Consolidated Engineers Report and Declaration of Intention to Levy Assessments.

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council acting as the legislative body of the City of Oxnard Landscape Maintenance Districts (LMDs):

1. Adopt “A Resolution of the City Council of the City of Oxnard, California, initiating proceedings to levy assessments against real property for fiscal year 2023- 24 in connection with the city’s landscape maintenance districts”; and

2. Adopt “A Resolution of the City Council of the City of Oxnard, California, approving a consolidated engineer’s report regarding assessments against real property for fiscal year 2023-24 in connection with the city’s landscape maintenance districts”; and

3. Adopt “A Resolution of the City Council of the City of Oxnard, California, declaring its intention to levy assessments against real property for fiscal year 2023- 24 in connection with the city’s landscape maintenance districts.” Michael Wolfe, Public Works Director introduced Eric L. Storrie, CPRP , Special Districts Manager who presented and answered the Committee’s questions. Public comments were received from Douglas Partello. Discussion ensued among the Committee and staff.

It was moved by Member Teran , seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 2. Public Works Department
SUBJECT: Fiscal Year 2023-24 Special Tax Levy for Community Facility Districts Numbers 1, 2, 3, 4, 5 and 2000-3.
6 MAY 23, 2023 OXNARD CITY COUNCIL PAGE 3

FINANCE & GOVERNANCE COMMITTEE

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council acting as the legislative body for Community Facilities Districts (CFD) No. 1, 2, 3, 4, 5 and 2000-3:

1. Adopt a resolution setting a special tax rate within CFD No. 1 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

2. Adopt a resolution setting a special tax rate within CFD No. 2 (Westport at Mandalay Bay) for Fiscal Year 2023-24; and

3. Adopt a resolution setting a special tax rate within CFD No. 3 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

4. Adopt a resolution setting a special tax rate within CFD No. 4 (Seabridge at Mandalay Bay) for Fiscal Year 2023-24; and

5. Adopt a resolution setting a special tax rate within CFD No. 5 (Riverpark) for Fiscal Year 2023-24; and

6. Adopt a resolution setting a special tax rate within CFD No. 2000-3 (Oxnard Boulevard/Highway 101 Interchange) for Fiscal Year 2023-24; and

7. Authorize the Public Works Director, or designee, to execute an agreement for Billing of Direct Assessments with the Ventura County Auditor-Controller to provide the service of placement of direct assessments on the Ventura County Secured Tax Roll.

Eric L. Storrie, CPRP , Special Districts Manager ; Anthony Miller, Special Districts Project Manager; Terrel Harrison, Cultural & Community Services Director ; Denise Morehouse, Assistant Chief of Police ; and Luis McArthur, Police Commander presented and answe red the Committee’s questions. Public comments were received from Henry (city public parks restroom maintenance). Discussion ensued among the Committee and staff.

It was moved by Member Teran , seconded by Member Basua, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 3. Public Works Department
SUBJECT: Fiscal Year 2022-23 Budget Appropriation for Community Facilities District Number 7, Wagon Wheel.

RECOMMENDATION: That the Finance and Governance Committee recommend that the City Council approve a Fiscal Year 2022-23 budget appropriation from the available fund balance in the amount of $100,399 to the Special Districts Fund (120) for reimbursement of Fiscal Year 2022-
23 authorized Developer reimbursements from
the Wagon Wheel Community Facilities District.

Anthony Miller, Special Districts Project Manager presented and answered the Committee’s questions. No public comments were received . Discussion ensued among the Committee and staff.

7 MAY 23, 2023 OXNARD CITY COUNCIL PAGE 4

FINANCE & GOVERNANCE COMMITTEE

It was moved by Member Basua, seconded by Chair Zaragoza, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 4. Information Technology Department
SUBJECT: Renewal of Purchase Order 8022 with CompuWave, Inc. for the Purchase of Information Technology Goods and Services.

RECOMMENDATION:

That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to renew Purchase Order 8022 for information technology goods and services with CompuWave, Inc., pursuant to a piggyback agreement from the County of Ventura Contract No. 8926, for an additional two-year term expiring June 30, 2025, and increasing the not to exceed amount from $1,600,000 to $2,600,000.

Helen Miller, Chief Information Officer presented and answered the Committee’s questions.

No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Member Basua, seconded by Member Teran, to approve the recommended action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 5. Finance Department
SUBJECT: Public Safety Property Tax Assessment FY 2023-24.

RECOMMENDATION: That the Finance and Governance Committee review and recommend to City Council the adoption of a resolution establishing the FY 2023-24 tax rates on property in the City of Oxnard for the payment of voter-approved obligations related to public safety personnel.

Shiri Klima, Deputy City Manager presented and answered the Committee’s questions. No public comments were received. Discussion ensued among the Committee and staff.

It was moved by Chair Zaragoza, seconded by Member Basua, to approve the recommende d action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 6. Finance Department
SUBJECT: Annual Delegation of Investment Authority.

RECOMMENDATION: That the Finance and Governance Committee recommend the City Council adopt a resolution delegating investment authority to the City Treasurer for FY 2023-24.

8 MAY 23, 2023 OXNARD CITY COUNCIL PAGE 5

FINANCE & GOVERNANCE COMMITTEE

Shiri Klima, Deputy City Manager presented and was available to answer the Committee’s questions. No public comments were received . Discussion ensued among the Committee and staff.

It was moved by Member Basua, seconded by Member Teran, to approve the recommende d action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 7. Finance Department

SUBJECT: Recommend City Council authorize a Resolution Declaring the Intent of the City to be Reimbursed from Potential Bond Proceeds for Expenditures Made Towards Street and Alleyway Improvements.

RECOMMENDATION: That the Finance and Governance Committee recommend the City Council approve and authorize a resolution declaring the intent of the City to be reimbursed for certain capital expenditures from the proceeds of indebtedness.

Shiri Klima, Deputy City Manager introduced Christian Sprunger, Assistant Vice President, NHA Advisors who presented and answered the Committee’s questions. Publ ic comments were received from Brian Rodriguez. Discussion ensued among the Committee and staff.

It was moved by Member Basua, seconded by Member Teran, to approve the recommende d action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. 8. Finance Department
SUBJECT: Proposed Fiscal Year 2023-24 Budget.

RECOMMENDATION: That the Finance and Governance Committee recommend that City Council and Housing Authority Board conduct a public hearing on the Fiscal Year (FY) 2023-24 proposed budget on June 6, 2023, for the City of Oxnard and Oxnard Housing Authority and provide staff direction regarding any adjustments to the proposed budget, in preparation for final budget adoption on June 20, 2023.

Ashley Golden, Assistant City Manager introduced Victor Zambrano, Budget Manager who presented and answered the Committee’s questions. C ity Manager Nguyen provi ded comments. Publ ic comments were received from Dougla s Partello a nd B rian Rodr iguez.

Discussion ensued among the Committee and staff.

It was moved by Member Teran, seconded by Member Basua, to approve the recommende d action as presented. VOTE: Basua, Teran, and Zaragoza voted in favor; the motion carried 3-

0. E. ITEMS FOR FUTURE AGENDAS (No requests were made.)

9 MAY 23, 2023 OXNARD CITY COUNCIL PAGE 6

FINANCE & GOVERNANCE COMMITTEE

F. ADJOURNMENT
There being no further business on the agenda, and without objection, Chair Zaragoza adjourned the meeting at 7:00 p.m.

ROSE CHAPARRO JOHN C. ZARAGOZA
City Clerk Chair

10 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.1

DATE: June 13, 2023

TO: Finance & Governance Committee

FROM: Steve Naveau, Human Resources Director, (805) 385-7947, [email protected]

SUBJECT: Third Amendment to Agreement for Recruitment Services with Gallagher Benefit Services, Inc. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council approve and authorize the Mayor to execute a Third Amendment to Agreement No. 9338-21-HR with Gallagher Benefit Services, Inc. for recruitment services to extend the term to September 30, 2025, and increase the total amount by $155,000 to $355,000.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/ooTmplzm-vQ

BACKGROUND

In July 2021, the City entered into Agreement No. 9338-21-HR with Gallagher Benefit Services, Inc. for $70,000 for recruitment services for executive searches and hard-to-fill positions. A first amendment was approved in April 2022 to extend the term to December 31, 2022, and add an additional $30,000 for a total agreement of $100,000. On July 28, 2022, City Council approved a second amendment, which extended the agreement to June 30, 2023, and added an additional $100,000 to increase the total agreement to $200,000.

This Third Amendment is being sought to increase the contract by $155,000 and extend the term to September 30, 2025. This is being requested in order to complete two existing recruitments for approximately $55,000 and to allow staff to continue to engage Gallagher for executive searches and hard-to-fill positions' recruitments.

STRATEGIC PRIORITIES

This agenda item supports the Organizational Effectiveness strategy. The purpose of the Organizational Effectiveness strategy is to reinforce, stabilize, improve, and strengthen the organizational foundation of the City in order to build a modern, high-functioning City government that effectively and efficiently supports the operating departments in providing high-quality services and programs for our residents and businesses.

FINANCIAL IMPACT

Funds from the FY 2022-23 operating budget are available from various departments to cover the cost of this amendment. No additional appropriation is necessary.

Prepared by: Mike More, Human Resources Manager
11 ATTACHMENTS

1. Attachment 1- Third Amendment to Agreement 9338-21HR

2. Attachment 2 -Agreement 9338-21-HR and Prior Amendments

3. Attachment 3 - FGC Presentation Gallagher Benefits (1)

12 Agreement No. 9338-21-HR

THIRD AMENDMENT TO AGREEMENT FOR PROFESSIONAL SERVICES
This Third Amendment ("Third Amendment") to the Agreement for Professional Services ("Agreement") is made and entered into in the County of Ventura, State of California, this 20th day of April, 2023, by and between the City of Oxnard, a municipal corporation ("City"), and Gallagher Benefits Services, Inc. ("Consultant"). This Third Amendment amends the Agreement entered into on July 20, 2021, by City and Consultant. The Agreement was previously amended on April 7, 2022 by a First Amendment and on June 20, 2022 by a Second Amendment.

City and Consultant agree as follows:

I. The date in Section 5 of the Cover Page of the Agreement is hereby amended to September 30, 2025.

2. The amount $200,000 in Section 6 of the Cover Page of the Agreement is hereby amended to "$355,000."

3. As so amended, the Agreement remains in full force and effect. [Signatures on next page]
TIIIRD AMENmlENT TO PROFESSIONAL SERVICES
13 Agreement No. 9338-21-HR
IN WITNESS WHEREOF, the parties hereto have executed the Amendment on the date first written above.

CITY OF OXNARD
□ ..bhn C. Zaragoza. M ayor Date
D Alexander Nguyen, City Manager
□ Jennifer Yates, Purchasing Manager
□-----' Buyer
ATTEST:

Rose Chaparro, City Clerk
(only if Mayor signs)
APPROVED AS TO FORM:

Date
,,,t___ s//)PL}
Stiphen M. Fischer, City Date
Attorney (always required)
THIRD A\·IENDMENT TO PROFESSIONAL SERVICES
GALLAGHER BENEFIT SERVICES, INC.
�S.l!J>� April 24, 2023
GorgS. Krammer -= Date
Managing Director
�
April 24, 2023
Catherine B. Kaneko Date
Managing Director
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 29
30 31
32 33

THIRD AMENDMENT TO AGREEMENT

FOR RECRUITMENT SERVICES WITH
GALLAGHER BENEFIT SERVICES, INC.

Presented to the Finance and Governance Committee
Lisa Baker, Assistant Director of Human Resources
June 13, 2023
34 That the Finance and Governance Committee recommend
that the City Council approve and authorize the Mayor to execute a Third Amendment to Agreement No. 9338-21-HR
with Gallagher Benefit Services, Inc. for recruitment services to extend the term to September 30, 2025 and increase the total amount by $155,000 to $355,000.

RECOMMENDATION
2 35
• In July 2021, the City entered into Agreement No. 9338-21-HR with Gallagher Benefit Services, Inc. for $70,000 for recruitment services for executive searches and hard-to-fill positions. • A first amendment was approved in April 2022 to extend the term to December 31, 2022, and add an additional $30,000 for a total agreement of $100,000.
• City Council approved a second amendment on July 28, 2022, which extended the agreement to June 30, 2023, and added an additional $100,000 to increase the total agreement to $200,000. • This Third Amendment is being sought to increase the contract by $155,000 and extend the term to September 30, 2025 in order to complete two recruitments and ensure our ability to do any additional executive searches and “hard-to-fill” recruitments that may arise.

BACKGROUND
3 36
That the Finance and Governance Committee recommend
that the City Council approve and authorize the Mayor to execute a Third Amendment to Agreement No. 9338-21-HR
with Gallagher Benefit Services, Inc. for recruitment services to extend the term to September 30, 2025 and increase the total amount by $155,000 to $355,000.

Financial Impact
• None in the current fiscal year.
• Funds from the FY 2022-23 operating budget are available from various departments to cover the cost of this
amendment. No additional appropriation is necessary.

RECOMMENDATION
4 37

QUESTIONS
38 FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.2

DATE: June 13, 2023

TO: Finance & Governance Committee

FROM: Robert Ruben, Interim Chief Information Officer, (805)385-7554, [email protected]

SUBJECT: Third Amendment to Agreement A-8011 with Superion LLC, a CentralSquare Company, for Information Technology Software and Services. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that City Council approve and authorize the Mayor to execute a Third Amendment to Software License Agreement A-8011 with Superion LLC, a CentralSquare Company, in the amount of $612,476 for FY23-24 with a new not-to-exceed total agreement amount of $2,070,981 for information technology software and services.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/BlaBdiL5UZQ

BACKGROUND

For the past three decades, the City of Oxnard has been using the SunGard HTE Enterprise Resource Planning (ERP) system as its main core operational business system to handle functions such as accounts payable, purchasing, financial reporting, utility billing, and licensing. Over the years, the HTE system was acquired by companies such as Superion and, most recently, CentralSquare. Despite the City’s transitioning of the financial portion of its ERP to Tyler Munis starting in October 2022, the HTE/Naviline system is still in use for certain functions such as payroll, utility billing and business licensing. As the implementation of the Tyler Munis system moves into new phases, use of the HTE system will continually go down. However, during this transitional period, HTE needs to be maintained and licensed while its functions get integrated into the Tyler Munis system.

CentralSquare also provides additional systems and services to the City. For example, the Click2Gov module is used to modernize the functionality of business licensing and permits to provide better service to residents and businesses. Systems such as Cognos and Analytics NOW are used by the Finance Department to aid in financial report creation and management. The Police Department uses the CryWolf system to track burglar alarms throughout the City. Furthermore, as the functionality of the Tyler Munis system is expanded, new technology solutions and programming services are needed throughout the multi-year phased transition to the Tyler ERP. In a departure from past agreements and despite attempts by staff to have this vendor provide City with a multi-year agreement, the third amendment is for a one-year term, which is CentralSquare’s standard agreement term.

With the second amendment to this agreement of June 21, 2022, Council approved an amount of $80,000 for professional services related to the Tyler Munis ERP upgrade and change costs. In FY 22-23, City staff 39 negotiated a separate professional services contract with CentralSquare setting a limit on the annual increase that the vendor can charge for its rendered services to 3% or less. Approximately $25,000 of this amount has been committed so far to projects related to water meter upgrade project data sharing and integration for Public Works. Such projects will continue to be required, and thus, it is necessary to have the authorization for such expenditures. With each year of Tyler Munis implementation, the type of software and services from CentralSquare related to the HTE system is expected to change according to business needs. Thus, as these changes occur, staff will bring future renewals to Council for approval. This will also allow staff to update Council on major milestones and achievements and retirement of the HTE system.

For FY23-24, the following outlines expected costs for the City from CentralSquare:

TABLE - CentralSquare Estimated Costs, FY 23-24

Description FY 23-24 Estimated Cost
HTE/Naviline ERP license and support $213,255
Click2Gov for licensing, permitting, employee self service $24,333 Various third party systems including CryWolf (Police), Public Administrator (Utilities), Cognos (Finance)
$40,000
Programming and consulting services $255,000
Contingency (15%) $79,888
Total $612,476

A 15% contingency is included for unforeseen remediation or emergency needs, anticipated annual increases for third party software renewals, and flexible capacity to support City departments and CentralSquare’s business requirements through June 30, 2024.

STRATEGIC PRIORITIES

FINANCIAL IMPACT

Appropriations are included in the proposed FY2023-24 Information Technology Operating Fund budget to cover all but $24,000 of this contract, which is included in the proposed FY2023-24 General Fund Police Department budget.

Prepared by: Gary Krumian, Programmer Analyst

ATTACHMENTS

1. A-8011 - Superion CentralSquare Agreement

2. A-8011 - Superion CentralSquare First Amendment

3. A-8011 - Superion CentralSquare Second Amendment

4. A-8011 - Superion CentralSquare Third Amendment
40 5. Presentation - F&GC CentralSquare June 13, 2023

41 42
43 44
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47 48
49 50
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 Agreement No. A-8011

THIRD AMENDMENT TO SOFTWARE LICENSE AGREEMENT

This Third Amendment (“Amendment”) to the Software License Agreement (“Agreement”) is made and entered into in the County of Ventura, State of California, this 24th day of May 2023, by and between the City of Oxnard, a municipal corporation (“City”), and Superion, LLC, a CentralSquare Company (“CentralSquare”, “Superion” or “Vendor”). This Third Amendment amends the Second Amendment to the Software License Agreement entered into on May 24, 2022, which itself amended the First Amendment entered into on April 22, 2020. The First Amendment amended the Agreement entered into on October 3, 2017 by City and Vendor.

RECITALS

WHEREAS, Vendor continues to provide City with access to the HTE/Naviline ERP system under the Agreement for the period ending June 30, 2024.

NOW Therefore City and Vendor agree as follows:

1. Exhibit C is added to this Agreement, and is incorporated herein by this reference.

2. The total value of the Agreement for Agreement A-8011 shall not exceed $2,070,981.

3. The Parties agree that this Agreement may be transmitted and signed by electronic signature by either/any or both/all parties, and that such signatures shall have the same force and effect as original signatures, in accordance with California Government Code section 16.5 and Civil Code section 1633.7.

4. As so amended, the Agreement remains in full force and effect.

DocuSign Envelope ID: 8D160959-3212-47AC-9C80-BDBEF698B374 72 IN WITNESS WHEREOF, the parties hereto have executed the Agreement on the date first written above.

CITY OF OXNARD CENTRAL SQUARE TECHNOLOGIES LLC

John C. Zaragoza, Mayor Date Ron Anderson, Chief Sales Officer Date

Barry Medintz, General Counsel Date

ATTEST:

Rose Chaparro, City Clerk Date

APPROVED AS TO FORM:

Stephen M. Fischer, City Date
Attorney

DocuSign Envelope ID: 8D160959-3212-47AC-9C80-BDBEF698B374 73 EXHIBIT C

CentralSquare Estimated Costs, 7/1/2023 through 6/30/2024

Description FY 23-24
Expected Cost
HTE/Naviline ERP license and support $213,255
Click2Gov for licensing, permitting, employee self service $24,333 Various third party systems including CryWolf (Police), Public Administrator (Utilities), Cognos (Finance)
$40,000
Programming and consulting services $255,000
Contingency (15%) $79,888
Total $612,476

DocuSign Envelope ID: 8D160959-3212-47AC-9C80-BDBEF698B374 74 Third Amendment to Superion LLC, a
CentralSquare Company Software License
Agreement A-8011 for Information
T echnology Software & Services
Finance and Governance Committee
June 13, 2023
Gary Krumian, IT Department
75 That the Finance and Governance Committee
recommend that City Council approve and authorize the
Mayor to execute a Third Amendment to Software
License Agreement A-8011 with Superion LLC, a
CentralSquare Company, in the amount of $612,476 for
Fiscal Year 23-24 with a new not-to-exceed total
agreement amount of $2,070,981 for information
technology software and services.

RECOMMENDATION 2
76 • Annual maintenance cost for HTE and related services is ~$215k/year for use, support, and maintenance of the HTE system.
• Although HTE is currently in the process of being replaced by Tyler Munis ERP, the City continues to require additional services from the vendor, estimated to not exceed $612,476 over the next 12 month period ending June 30, 2024.
• This estimated amount includes:
• Other CentralSquare software used by other City departments • Projects related to the Tyler ERP implementation
• A 15% contingency amount to cover unforeseen needs
NEEDS AND DETAILS 3
77 NEEDS AND DETAILS – Estimated Costs 4
Description FY 23-24
estimated
HTE/Naviline ERP license and support $213,255
Click2Gov for licensing, permitting, employee self service $24,333 Various third party systems including CryWolf (Police), Public Administrator (Utilities), Cognos (Finance) $40,000 Programming and consulting services $255,000
Contingency, 15% $79,888
Total $612,476
Contingency examples: unforeseen remediation or emergency needs, anticipated annual increases for third party software renewals, flexible capacity to meet City departments and CentralSquare business requirements through 6/30/2024.
78 • This amendment supports continued and uninterrupted use of the vendor, CentralSquare, for delivering resident services and sustaining City department operations.
• Funds for this expenditure will be budgeted in IT’s FY 23-24 budget as well as in other department or project specific budgets, as applicable.

FINANCIAL IMPACT 5
79 That the Finance and Governance Committee
recommend that City Council approve and authorize the
Mayor to execute a Third Amendment to Software
License Agreement A-8011 with Superion LLC, a
CentralSquare Company, in the amount of $612,476 for
Fiscal Year 23-24 with a new not-to-exceed total
agreement amount of $2,070,981 for information
technology software and services.

RECOMMENDATION 6
80 QUESTIONS
7 81

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.3

DATE: June 13, 2023

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Fiscal Year 2023-24 Utility Ratepayers Assistance Program (Project Assist) Update. (15 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council:

2. Authorize staff to fund Project Assist in Fiscal Year 2023-24 by utilizing $241,500 that has been paid to the City for late penalties charged to City utility customers.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/z8ZLTrGGF_A

BACKGROUND

Project Assist is the City of Oxnard’s utility rate assistance program for eligible solid waste, water and wastewater residential utility customers. This program was initially approved by City Council in May 2017 and has continued to be renewed by City Council annually. For Year 6, Fiscal Year 2022-23, the Project Assist budget was $145,000 and the financial relief per customer was $15.00, allowing for a total of 805 applicants.

COVID impacts reduced the amount of revenue collected in penalties in FY 2020-21 and FY 2021-22. As such, in the prior two years staff has not recommended a change in the program. With the re-establishment of assessing late penalties on applicable accounts post-pandemic, there is an opportunity to expand the program assuming a reasonable collection of late penalties occurs in FY 2023-24.

It should be noted that in both the Water Cost of Service study and the Wastewater Cost of Service study a portion of the late fees (approximately $610,000 total) is considered in the rate setting. As such, $610,000 of penalty revenue is used each year by these two utilities to fund operations.

Upon initial approval of Project Assist in 2017, Council requested staff to return annually with an update on the program. Program outreach in English and Spanish has relied on a multi-faceted social media approach including utility bill inserts, City website posting, press releases and word-of-mouth. Project Assist participant 82 demographics are diverse and range from age 18 to 101. If customers participate in the program one year and remain eligible for the next year, they are still required to submit an application. This is to ensure that participants remain eligible each program year.

The following are some statistics related to applications for Fiscal Year 2022-23 (Year 6):
• Project Assist has accepted and enrolled 784 Oxnard residents during the first 10 months from July 2022 through May 18, 2023
• New applicants account for 20% while returning enrollees account for 80%

DISCUSSION

For Year 7, Fiscal Year 2023-24, staff is requesting to direct $241,500 from late penalty revenues to fund the Project Assist Program. A $241,500 budget allocation for Year 7 would continue to allow for approximately 805 eligible residential utility customers to participate in the program for Fiscal Year 2023-24, but increase the monthly credit from $15 to $25.

Table 1 reflects the annual funding and participation rates for Project Assist. Below is a history of eligible participants, funds expended for Project Assist, and the penalty amount collected since the inception of Project Assist.

Table 1.

Fisca
l
Year
Actual
Participan
ts
Max
Month
ly
Credit
Participa
nt Cap
**Actual
Utility
Rate
Assistance
Allocate
d Budget
Utility
Penalties
FY
17-
18 392 $10 832 $29,520 $100,0
00 $1.14M/
yr
FY
18-
19 548 $10 832 $37,290 $100,0
00 $1.34M/
yr
FY
19-
20 531 $15 805 $77,490 $145,0
00 $1.01M/
yr
FY
20-
21 764 $15 805 $116,14
5 $145,0
00 $1.29M/
yr
FY
21-
22 740 $15 805 $117,87
0 $145,0
00 $0.00
Covid-
No late
83 fees
collecte
d
FY
22-
23 784* $15 805 $111,16
5*
$145,0
00 $1.16M/
yr
estimate
d
*Actual utility rate assistance through May 17, 2023
** Reflects actual expenditures from the General Ledger, based upon participant’s effective start date

Alternatively, should the Council decide to expand the number of applicants to over 805, either a smaller monthly credit (less than the proposed $25/month) would be needed or an increase in the proposed annual budget would be needed. Staff does not think expanding the number of applicants is necessary since in the past years of this program, there have not been any applicants placed on a waiting list due to the limits of the funding.

Given the unpredictable amount of penalties collected since this is driven by customer behavior, staff does not recommend going beyond a $25/month credit. This will ensure sufficient funds accounted for in the Water and Wastewater costs of service analysis (i.e. approximately $610,000 per year) remains available in FY 2023-24.

Assuming that late penalties are collected in roughly the same amount as the current pace, there will be sufficient penalty revenue to fund programs such as Project Assist in FY 2023-24. Late charges incurred by utility customers for failure to timely pay their utility bills are not governed by article XIII D of the California Constitution, because they are not considered as an incident of property ownership for purposes of Proposition 218. Late charges are imposed to regulate conduct, by encouraging prompt payment of utility bills. These are not considered a property based fee or charge to be used for the cost of providing utility service. Accordingly, the late charges collected by the utility can be used for purposes unrelated to utility service. The City’s utilities may use the late charges to fund the Project Assist Program.

ELIGIBILITY FOR PROJECT ASSIST

Eligibility is determined by the applicants’ acceptance into the Southern California Edison (SCE) or the SoCalGas Company’s California Alternate Rates for Energy (CARE) programs. Project Assist requirements mirror the CARE income guidelines shown in Table 2 which are effective from June 1, 2022 to May 31, 2023:

Table 2.

Household Size Income Eligibility Upper Limit
1-2 $36,620
3 $46,060
4 $55,500
5 $64,940
6 $74,380
7 $83,820
84 8 $93,260
Each Additional Person $9,440
Source: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/care-fera-program

Since its inception, the availability of the program is capped by the total amount of funding approved by City Council each year. Applicants are screened annually on a first-come, first-served basis. Customers can file applications in English or Spanish via email, in person or through the U.S. Mail any time throughout the program year. Year 7 of Project Assist will be implemented July 1, 2023.

The following information is provided as context related to other agencies’ similar rate-assist programs and recent active and completed State/Federal funded programs for utility customers as one-time recovery programs related to the pandemic.

OTHER MUNICIPAL UTILITY RATEPAYERS ASSISTANCE PROGRAMS

Staff tracked one other jurisdiction in California that is currently using penalty revenues to fund a utility ratepayers assistance program. The City of Ventura directs $50,000 annually from penalties to fund a residential Water Customer Assistance Program. The Ventura program currently has a cap of 600 customers per year. After eligibility is determined, the discount is dependent on the size of the meter at the property.

Discounts are 50% of the cost shown on the water bill as a service charge up to approximately $100 annually.

The cities of Port Hueneme, Camarillo, Davis, and Tracy have utility ratepayers assistance programs but are not funded by late payment penalties. The City of Port Hueneme funds their utility rate assistance program from an interest rate revenue fund. The City of Camarillo funds their utility ratepayers assistance program from a voter approved special assessment fund. The City of Davis funds their utility ratepayers assistance program from a roundup amount donation option from a utility bill fund. The City of Tracy funds their utility ratepayers assistance program from their general fund.

FEDERAL AND STATE PROGRAMS

California has prioritized funding to support the immediate financial needs of low-income individuals and families through utility assistance payments. The Low Income Home Energy Assistance Program (LIHEAP) utility assistance provides one-time payments to households struggling to pay their bills. Governor Gavin Newsom signed Executive Order 75-20 on August 24, 2020 to provide additional flexibility to the California Department of Community Services & Development (CSD) to ensure that CARES Act funds for LIHEAP are maximized to benefit Californians in need.

In addition to LIHEAP, the California Low Income Household Water Assistance Program (LIHWAP) is also available for low income Oxnard residents who are struggling financially to apply for financial assistance to pay for water and wastewater bills (https://www.csd.ca.gov/lihwap). LIHWAP will offer a one-time payment to help customers with their past due water or wastewater bills, up to a maximum of $2,000 per account. This program will help pay overdue bills which accrue during any time frame; in other words, there are no date restrictions on the bill relief period. Assistance with LIHWAP residents can contact Community Action Ventura County at 805-436-4000,

The following resources provide further, detailed information on the state and federal programs described herein; visit www.csd.ca.gov or call 1-866-675-6623.

STRATEGIC PRIORITIES

85 This agenda item supports the Quality of Life strategy. The purpose of the Quality of Life strategy is to restore and increase quality services and programs that enrich Oxnard's diverse community, promotes safe neighborhoods, encourages community engagement, and supports our residents in their efforts to improve their quality of life.

FINANCIAL IMPACT

The fiscal impact of approving the Utility Rates Assistance Program (Project Assist) for Year 7 in Fiscal Year 2023-24 is $241,500 from late penalty revenues. While no late penalties were assessed to customers during the pandemic, there are sufficient funds from prior year penalties collected to fund Year 7 of Project Assist.

Prepared by: Brian Yanez, Assistant Public Works Director

ATTACHMENTS

1. Project Assist Resolution FY 2023-24

2. Presentation

86 CITYCOUNCILOFTHECITYOFOXNARD
RESOLUTIONNO.

ARESOLUTIONOFTHECITYCOUNCILOFTHECITYOFOXNARDADOPTINGARATEPAYERSASSISTANCEPROGRAMFORFISCALYEAR2023-24 WHEREAS,theCityofOxnardprovideswater, wastewater, andsolidwasteservicestoresidentsandbusinesseswithinthecommunity;and WHEREAS,cleanwaterandgoodsanitationareessentialtopublichealthandsafetyandimprovethequalityoflifeofresidents;and WHEREAS,theCitydesirestoassisteligiblelow-incomeutilitycustomerswithfinancialassistancetohelppaytheirmonthlyutilitybills;and WHEREAS,ratepayersmustmeetthecertaineligibilitycriteriatoreceivethefinancialassistancefromtheCity;and WHEREAS,theCitymayfunda ratepayersassistanceprogramusinglatefeepayments;and WHEREAS,theCityCounciladopteda ratepayersassistanceprogramin2017andnowdesirestoextendthisassistanceavailabletoeligibleratepayersforFiscalYear2023-24.

NOW, THEREFORE,theCityCounciloftheCityofOxnardresolves:

1. Theforegoingrecitalsaretrueandcorrect.

2. AdoptionofProgram.TheRatepayersAssistanceProgram(Program)thatis furtherexplainedin ExhibitA,whichis attachedheretoandincorporatedhereinbythisreference,isherebyadopted.TheCityManageris authorizedtotakealladministrativeactionsnecessarytoimplementtheProgramandtomakenon-substantivemodificationsthatmaybenecessaryfortheProgram’soperation.

3. If anysection,sentence,clauseor phraseof thisResolutionor exhibittheretoisdeterminedtobeinvalid,illegalorunconstitutionalbyadecisionororderofanycourtoragencyof competentjurisdiction,thensuchdecisionor orderwillnot affectthe validityandenforceabilityof theremainingportionsof thisResolution.TheCityCouncildeclaresthatitwouldhaveadoptedtheResolution,andeachexhibit,section,sentence,clauseorphrasethereof,regardlessofthefactthatanyoneormoresections,subsections,sentences,clauses,orphrasesbedeclaredinvalidorunconstitutional.

4. CEQA.Accordingto Section15378of Title 14 of the CaliforniaCodeofRegulations,theCaliforniaEnvironmentalQualityAct(CEQA)definesa “project”as “thewholeofanaction,whichhasa potentialforresultingineithera directphysicalchangeintheenvironment,orareasonablyforeseeableindirectphysicalchangeintheenvironment.”Thetermdoesnotapplyto generalpolicyandproceduremakingthatdoesnothavethepotentialforresultingina direct,ora reasonablyforeseeableindirect,physicalchangeintheenvironment.TheProgramisa policyandproceduremakingthatdoesnothavethepotentialforresultingina 87 ResolutionNo.RatepayersAssistanceProgramforFiscalYear2023-24Page2 direct,ora reasonablyforeseeableindirect,physicalchangeintheenvironmentasit doesnotbuild,install,demolishor otherwiseaffectlanduse.Sincethisis notconsidereda “project”underCEQA,nofurtherenvironmentalreviewisrequired.

5.ResolutionNo.15,578,whichadoptedtheProgramforFiscalYear2022-23,isherebyrepealedasofJuly1,2023.

PASSEDANDADOPTEDthis__dayofJUNE2023,bythefollowingvote:

AYES:

NOES:ABSENT:ABSTAIN: _____________________________________JohnC.Zaragoza,Mayor ATTEST:

RoseChaparro,CityClerk
APPROVEDASTOFORM:

StephenM.Fischer, CityAttorney
88 ResolutionNo.RatepayersAssistanceProgramforFiscalYear2023-24Page3

EXHIBITA
RatepayersAssistanceProgram(Program)

1. ProgramDescription.The Cityshallprovidethe RatepayersAssistanceProgram(Program)toeligibleratepayersintheformoffinancialassistancetobeapplieddirectlytotheratepayers'monthlybill.

TheproposedfinancialassistanceamountissubjectonlytotherestrictionsofadequateProgramfunding.

Funding.Approvea RatesAssistanceProgramforUtilityBillstoassistOxnardresidentsandauthorizestaff tograntfinancialreliefequalto$25.00ofthemonthlyCityofOxnardutilitybillchargeforcustomersmeetingtheeligibilityrequirementsdescribedhereineffectiveJuly1,2023;Authorizestaff todirect$241,500annuallyfrompenaltyfeestofundtheUtilityRateAssistanceProgramforUtilityBillsFiscalYear2023-24(July1, 2023– June30,2024)to assist805residentialcustomers.

2.Notices.CommunityoutreacheffortswillbeusedtonotifythepublicabouttheProgramandthepositiveimpactit willhaveonthecommunitybyhelpingtoensuretheeligibleratepayershaveaccesstothisvitalresource.

3.Application.EligibleratepayerswishingtoparticipateintheProgrammustcompleteawrittenapplicationanddeclarationof eligibility. Basedonthisapplication,Citystaff willdeterminewhethertheratepayeriseligibletoparticipateintheProgram.

4.Eligibility. FundsshallonlybeappliedtoutilityaccountswiththeCityonbehalfofratepayerswhomeetallthefollowingcriteria.

5.Eachhouseholdorsingleratepayermaybeeligibleforfinancialassistanceequalto$25.00ofthemonthlyutilitychargeforcustomerswhoqualifyforfinancialassistance.

EligibilityRequirements
ConditionsforParticipation:EligibilityintheCARE(CaliforniaAlternateRatesforEnergy)ProgramwithSouthernCaliforniaEdisonorSouthernCaliforniaGas ●
Theutilitybillmustbeinthenameoftheratepayerandtheaddressoftheratepayermustbetheprimaryaddress. ●
Thecustomercannotbeclaimedasadependentonanotherperson’sincometaxreturnotherthanaspouse. ●
Acustomermustrecertifyanapplicationwhenrequested.
89 ResolutionNo.RatepayersAssistanceProgramforFiscalYear2023-24Page4 ●
AcustomermustnotifytheCityofOxnardwithin30daysifnolongerqualifiesforassistance. ●
AcustomermaybeaskedtoverifyeligibilityforCARE,theratepayers’assistanceprogram. ●
MostrecentCityofOxnardutilitybill.
●
MostrecentSouthernCaliforniaGasCompanybillorSouthernCaliforniaEdisonbillshowingCAREeligibility. ●
ProjectAssistapplicationform
●
Onlyonediscountshallbeappliedperhousehold.
●
First-come,first-served.TheCitywillapplyexistingfundingforthisProgramonafirst-come,first-servedbasis.TheCitycannotguaranteethatat anytimetherewillbeadequatefundsforalleligibleapplicants. ●
AnnualReview. TheProgramandallapplicationsshallbereviewedonanannualbasisforcontinuedfundingresourcesandeachratepayer’seligibilitystandards.

Eligibilityisdeterminedbytheapplicants’acceptanceintotheSouthernCaliforniaEdison(SCE)orTheGasCompany’sCaliforniaAlternateRatesforEnergy(CARE)programs.ProjectAssistrequirementsmirrortheCAREincomeguidelinesshowninthebelowtablewhichareeffectivefromJune1,2022toMay31,2023:

HouseholdSize IncomeEligibilityUpperLimit
1-2 $36,6203 $46,0604 $55,5005 $64,9406 $74,3807 $83,8208 $93,260EachAdditionalPerson $9,440Source:https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/care-fera-program 90 Utility Rates Assistance Program (Project Assist)
Update
Finance and Governance CommitteeJune 13, 2023City Council June 29, 2023
Brian Yanez, Assistant Public Works Director
Public Works Department
91 That the Finance and Governance Committee recommend that the City Council:

2. Authorize staff to fund Project Assist in Fiscal Year 2023-24 by utilizing $241,500 that has been paid to the City for late penalties charged to City utility customers.

RECOMMENDA TION 2
92 That the City Council:

2. Authorize staff to fund Project Assist in Fiscal Year 2023-24 by utilizing $241,500 that has been paid to the City for late penalties charged to City utility customers.

RECOMMENDA TION 3
93 • The program is for eligible solid waste, water and wastewater residential utility customers
• Initially approved by City Council in May 2017 and
renewed annually by City Council
• For Year 6, Fiscal Year 2022-23, the Project Assist budget was $145,000 and the financial relief per customer was
$15.00, allowing for a total of 805 applicants
• Project Assist has accepted and enrolled 784 Oxnard
residents during the first 10 months from July 2022 through May 18, 2023
BACKGROUND 4

PROJECT ASSIST
94 • For Year 7, Fiscal Year 2023-24, staff is requesting:
• Increase the monthly credit amount from $15.00 to
$25.00
• Utilize $241,500 from late penalty revenues
• Continue to allow for 805 eligible residential utility customers to participate
• Year 7 of this program will be implemented July 1, 2023 if approved by Council
DISCUSSION 5
95 • Staff does not think expanding the number of applicants is necessary since in the past years of this program, there have not been any applicants placed on a waiting list due to the limits of the funding• Given the unpredictable amount of penalties collected since this is driven by customer behavior, staff does not recommend going beyond a $25/month credit• Staff has confirmed there’s sufficient funds accounted for in the Water and Wastewater costs of service analysis (i.e. approximately $610,000 per year) remains available in FY 2023-24 from late penalties DISCUSSION 6
96 DISCUSSION 7
History of Funding and Participation for Project Assist ●
*Actual utility rate assistance through May 17, 2023
** Reflects actual expenditures from the General Ledger, based upon participant’s effective start date Fiscal
Year
Actual
Participants
Max
Monthly
Credit
Participant
Cap
**Actual
Utility Rate
Assistance
Allocated
Budget
Utility Penalties
FY
17-18
392 $10 832 $29,520 $100,000 $1.14M/yr
FY
18-19
548 $10 832 $37,290 $100,000 $1.34M/yr
FY
19-20
531 $15 805 $77,490 $145,000 $1.01M/yr
FY
20-21
764 $15 805 $116,145 $145,000 $1.29M/yr
FY
21-22
740 $15 805 $117,870 $145,000 $0.00 Covid-
No late fees
collected
FY
22-23
784* $15 805 $111,165* $145,000 $1.16M/yr
estimated
97 • Since its inception, the availability of the program is capped by the total amount of funding approved by Council each year • Applicants are screened on a first-come, first-served basis and must apply each program year to ensure participants remain eligible • Customers can file applications via email or through the U.S. Mail any time throughout the program year DISCUSSION 8
98 • Penalties for late payment of utility bills are imposed to regulate conduct (i.e., to encourage prompt payment of utility bills) and not as an incident of property ownership to pay for the cost of providing utility service.
• Therefore, those penalties are not fees or charges that are subject to article XIII D of the California Constitution (Proposition 218) and can be used for purposes other than operating expenses.
• Accordingly, the late charges collected by the utility can be used for purposes unrelated to utility service. The City’s utilities may use the late charges to fund the Project Assist Program.

DISCUSSION 9
99 DISCUSSION 10

ELIGIBILITY FOR PROJECT ASSIST
Eligibility is determined by the applicants’ acceptance into the Southern California Edison (SCE) or the
SoCalGas Company’s California Alternate Rates for
Energy (CARE) programs
100
Discussion 11

ELIGIBILITY FOR PROJECT ASSIST
●
Project Assist requirements mirror the CARE income
guidelines shown in table below which are effective from June 1, 2022 to May 31, 2023
Household Size Income Eligibility Upper Limit
1-2 $36,620
3 $46,060
4 $55,500
5 $64,940
6 $74,380
7 $83,820
8 $93,260
Each Additional Person $9,440
Source: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/care-fera-program 101

OTHER ASSISTANCE PROGRAMS
BACKGROUND 12
● California Low Income Household Water Assistance
Program (LIHWAP) is also available at
○ www.csd.ca.gov/lihwap
○ Assistance with LIHWAP, call Community Action
Ventura County at 805-436-4000
● Information on the state, federal and local programs at www.csd.ca.gov or call 1-866-675-662
102
The fiscal impact of approving the Utility Rates
Assistance Program (Project Assist) for Year 7 in Fiscal Year 2023-24 is $241,500 from late penalty revenues.

While no late penalties were assessed to customers
during the pandemic, there are sufficient funds from
prior year penalties collected to fund Year 7 of Project Assist. No budget adjustment is necessary.

FINANCIAL IMPACT 13
103

QUESTIONS
14 104

FINANCE AND GOVERNANCE COMMITTEE

AGENDA REPORT

REPORTS
AGENDA ITEM NO. D.4

DATE: June 13, 2023

TO: Finance & Governance Committee

FROM: Michael Wolfe, Public Works Director, (805) 385-8055, [email protected]

SUBJECT: Audit Services with Eadie & Payne, LLP for the City’s Golf Operations Audit. (10 minutes)

RECOMMENDATION

That the Finance and Governance Committee recommend that the City Council approve an amount not to exceed $20,000 for Eadie & Payne, LLP to perform an audit of the City’s golf operations.

Please click the following link to view the required Measure M pre-recorded presentation video: https://youtu.be/eVY0YWUzIl0

BACKGROUND

The City of Oxnard owns the River Ridge Golf Club that is under the supervision of the Public Works Department and managed by American Golf Corporation (“AGC”). AGC was awarded the management agreement (“Agreement”) beginning July 1, 2019 and will expire on June 30, 2024. The golf operations have been profitable during AGC’s management and for FY 2022-23; both golf courses are projecting combined revenues of $5.9 million with expenditures of $4.9 million. Included in the golf operations are food and beverage services, meeting and event rental, golf instruction, and merchandise sales.

DISCUSSION

AGC has been managing the golf operations for four years. The Golf Course Agreement with AGC includes a provision for an audit. Section 6.9 of the Agreement states, “Manager shall, if requested by Owner, hire an independent certified public accounting firm selected by Owner to audit the financial statements required under this Agreement and/or all other records or written materials used by Manager in generating the financial statements or perform agreed upon procedures requested by Owner. All fees and charges of the accounting firm shall be an Operating Expense of the Facility, unless the audit determines that an error of greater than five percent (5%) was made by Manager, in which case the costs of the audit will be paid by Manager and not as an Operating Expense of the Facility.” Staff has requested an audit per this section of the Agreement.

Therefore, in April of 2023, City staff solicited proposals from qualified firms to perform an audit of the Golf Operations. Eadie & Payne was the only firm to submit a proposal. Since Eadie and Payne, LLP is currently providing consulting services for the Finance Department, staff is confident in their ability to audit the golf operations. In accordance with section 6.9 of the Golf Management Agreement, City staff (representing Owner) has selected Eadie & Payne to be the firm that AGC (Manager) hires to perform the audit. The audit will be paid as an operating expense by the golf operations under management of AGC.

105
In compliance with the City’s purchasing ordinance for all vendors who exceed $200,000 per year for contract services, staff is bringing this item to City Council for approval. Since this proposed contract for $20,000 will be paid by the golf operations, but would cumulatively put Eadie & Payne over the City’s $200,000 threshold, the approval of this action is recommended for consistency with the intent of the City’s procurement procedures.

STRATEGIC PRIORITIES

This agenda item is a routine operational item or does not relate to the five strategic priorities adopted by City Council on March 16, 2021.

FINANCIAL IMPACT

The total cost for the audit of the City’s golf operations with Eadie & Payne shall not exceed $20,000 and sufficient appropriations are included in the FY 2023-24 proposed budget within the Golf operating Fund.

There is no impact to the General Fund.

Prepared by: Steve Howlett, Assistant Public Works Director

ATTACHMENTS

1. Proposal - 2023 Golf Course Operations Audit

2. Presentation

106
Proposal

CITY OF OXNARD
2023 Golf Course Operations Audit
MAY 18, 2023

PREPARED BY
EadiePayne
3880 Lemon St., Suite 300
Riverside, CA 92501

POINTS OF CONTACT
Brandon Ferrell Eden C. Casareno
Office: 951.241.7814 Office: 951-241-7805
Mobile: 909.767.3011 Mobile: 909-809-7662
[email protected] [email protected]
WWW.EADIEPAYENLLP.COM
107

TABLE OF CONTENTS
T r a n s m i t t a l L e t t e r ............................................ 1 R e f e r e n c e s ............................................... 2 Proposed Fee .............................................. 4 EadiePayne Team ............................................ 5 Approach to the Engagement ...................................... 3 108
3880 Lemon St., Ste. 300
Riverside, CA 92501
P.O. Box 1529
Riverside, CA 92502-1529
951-241-7800
www.eadiepaynellp.com
May 18, 2023
Jennifer Yates
City of Oxnard
[email protected]
RE: 2023 GOLF COURSE OPERATIONS AUDIT
Dear Ms. Yates,
On behalf of Eadie and Payne, LLP (EadiePayne), we are enthusiastic about the opportunity to continue to serve the City Council, Oxnard management team, and Oxnard community.

EadiePayne has worked together with the City on many challenges that have transpired over the last eight years. We are pleased to have been part of the City’s success to increase transparency, improve internal controls, and build trust. We want to continue working with the City through the 2023 Golf Course Operations Audit.

We understand that the City-owned municipal golf course is operated by American Golf Corporation since July 2019.

While the golf course operations have been profitable since then, the City seeks to evaluate AGC’s compliance with the terms of the contract and ensure that all revenue is properly accounted for, recorded and received by the City. We applaud the City for its efforts to hold the contractor accountable.

We believe EadiePayne is the best qualified firm to assist the City in this projec t:
1) We are aware of the history the City has had in the operations of the municipal golf course. In 2015, we reported deficiencies in the City’s contract with the previous operator, resulting in non-renewal of that contract. 2) Our team is familiar with the City’s policies and procedures, having been involved in the past in identifying internal control issues and recommending solutions that worked. We base our recommendations on the City’s internal and external conditions and co-develop them with City personnel, ensuring success in the implementation. 3) We draw upon our experience with a diverse set of clients, not only government agencies. EadiePayne has had experience auditing governmental agencies that operated m unicipal golf courses. Our firm has audited and provided other services to private golf course operations as well. The diversity of our auditing and other accounting related services with private companies as well as government agencies give us a well-rounded perspective on this project.

We are committed to meet your expected completion date of September 30, 2023.

We appreciate the opportunity to share our credentials and look forward to working with you and your team on this audit.

Sincerely,
Brandon Ferrell, Partner Eden C. Casareno, Partner
Office: 951-241-7814 | Mobile: 909-767-3011 Office: 951-241-7805 | Mobile: 909-809-7662 [email protected] [email protected]
109
2 References
City of Compton
2014 - Present
Sharon Rahban, Controller
(310) 801-4588 | [email protected]
205 S. Willowbrook Avenue, Compton, CA
90220
Financial audits; single aud its; preparation of
GAAP financial statement s; assistance with
GASB 68 & 75; assistance with corrective action
plan; agreed-upon procedures for Federal Transit
Administration requirement; involvement with
bond disclosures and issuance
Inland Empire Resource Conservation
District
2017 - Present
Mandy Parkes, District Manager
(909) 799-7407 | [email protected]
25864-K Business Center Drive, Redlands,
CA 92374
Financial audits, preparation of GAAP financial
statements
Twentynine Palms Water District
2018 - Present
Matt Shragge, General Manager
(760) 367-7546 | [email protected]
Cindy Byerrum, Outside Accountant
(
909) 204-8858 | [email protected]
72401 Hatch Road, Twentynine Palms, CA
92277
Financial audits, preparation of GAAP financial
statements, assistance with implementation of
GASB 87, and SCO report preparation
Riverside County Regional Park and Open
Space District
2022 - Present
Michael Alferez
(951) 539-6064
| [email protected]
4600 Crestmore Rd., Jurupa Valley,
CA
92509
Financial audits, preparation of GAAP financial
statements, and SCO report preparation
110
3 Approach to the Engagement
We plan to conduct an Agreed-Upon Procedures engagement (AUP) in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 19. We believe an AUP is best suited to this type of engagement because we will be able to co-develop with the City the procedures we will conduct during the course of the engagement. This will also allow us to focus on certain transactions that are important to you (such as compliance with contract requirements and revenue transactions).

Taking your recommended methodology into consideration, below is our planned procedures, along with the staff level required and estimated time needed:

Procedure** Staff Estimated
Hours
Kick-off meeting with City and AGC. Partner/Manager 1
Review Contract between City and American Golf. Document relevant provisions.

Partner/Manager 1
Review City policies, organization chart, procedures and directives related to Golf Operations. Document relevant information.

Partner/Manager 1
Review American Golf policies, organization chart, procedures and directives related to Golf Operations. Document relevant information.

Manager/Senior 2
Observe and document relevant Pro Shop and Restaurant Operations.

Conduct Interviews with Golf Operations management at the course (American Golf), including Pro shop, Restaurant, Mainten ance and Other employees as necessary (total of 5 individuals).

Review and document compliance to best practice internal controls related to all sales transactions at the Golf Course.

We will conduct the observation, interviews and walkthroughs at the same time.

Document all procedures performed and results of procedures.

Manager/Senior 14
Conduct interviews with City Public Wo rks administrative staff, and any other City staff as necessary.

We will conduct interviews with Finance Department staff as well.

Manager 5
Review and confirm and sales transactions, including conducting Cash Audits including register counts and golfer tee sheet audits to satisfaction that all appropriate fees have been charged correctly.

Analyze Point of Sale used at the Golf Course, identifying any issues regarding security or integrity of the information contained within the system.

We will select a sample of sales transactions and examine supporting documentation, tracing the transaction from Point of Sa le to bank deposits, general ledger posting and reporting to the City. We will also conduct surprise cash counts.

Depending on the condition of accounting re cords, we may utilize Data Analytics to compare POS data with general ledger posting and bank deposits.

Senior/Staff 20
Agreed Upon Procedures (AUP) is a type of engagement in which an independent auditor performs specific procedures agreed upon with the client. These procedures are designed to meet the client’s particular needs and are tailored to address specific areas of concern. 111
4 Approach to the Engagement (continued)
Procedure** Staff Estimated
Hours
Examine revenue and expense summaries, bank information and City General Ledger reports to identify accurate reporting of revenues and expenses to the City.

Analyze the revenues and expenses recor ded by the City, tracing to supporting documentation provided by AGC.

Senior/Staff 8
Determine whether Incentive Management Fee paid to American Golf was adequately supported by American Golf’s records and calculated in accordance with the terms of the Contract.

Obtain AGC’s records for all months (July 1, 2021 – March 31, 2023), trace to supporting documentation, and recalculate based on contract terms.

Senior/Staff 8
Determine whether American Golf complied with certain other financial provisions of the Contract, such as timely and accurate reports to the City, market prices for goods and services from American Golf affiliate s (if any) and prior written approval of any potential material conflict of interests as to purchases (if any).

Examine reports provided to the City for timeliness and accuracy. Select a sample of purchases to test for pricing, approvals and conflict of interest issues.

Senior/Staff 10
Prepare and review the AUP report and doc umentation. Present the report to management and City Council/committee as requested.

Manager/Partner 25
**Procedures in italics are EadiePayne’s proposed procedures.

Proposed Fee
Our fees are based on the amount of time required at various levels of responsibility and inclu de all
expenses such as administration, travel and other costs.

Level of Staff* Hours Rate Fee
Partner 15 $300 $4,500
Manager 30 $250 $7,500
Senior 25 $150 $3,750
Staff 25 $130 $3,250
95 $19,000
Out of Pocket Expenses $1,000
Total Fee $20,000
*Please refer to EadiePayne team members’ resumes for their qualifications. 112
5 EadiePayne Team
We assembled the following professionals to be the City’s engagement team. Their resumes provide information on their government auditing experience, continuing professional education (CPE) and membership in professional organizations.

Key personnel will be available to the extent proposed for the duration of the project. We acknowledge that no person designated as “key” to the project s
hall be removed or replaced without the prior written
concurrence of the City. All personnel will be available for on-site work activities as needed.

Brandon Ferrell, CPA
Engagement Partner
16 Years of Experience
Principal point-of-contact for the Manager
(AGC), Finance Department and City; lead
the team in assessing potential risks and
developing solutions; overall commitment of
timely delivery of service.

Eden C. Casareno, CPA
Technical Review Partner
21 Years of Experience
Provide an objective evaluation of the
significant judgments the engagement team
made and the conclusions reached.

Amber Powell, CPA
Manager
22 Years of Experience
Principal point-of-contact for the Manager
(AGC) personnel; responsible for planning,
supervising, and reviewing procedures.

Ashley Jones
Senior Accountant
Assign and review the work performed by
staff auditors; identify and resolve potential
audit issues; propose recommendations for
improvements.

Lesly Escalante
Staff Accountant
113
6 BRANDON FERRELL, CPA
Engagement Partner
Office: 951.241.7814 | Mobile: 909.767.3011| [email protected] Mr. Ferrell leads in the planning, organization and execution of attest engagements. He has strong interpersonal, communication , and project management skills, which are necessary to meet your service expectations. Mr. Ferrell is able to apply technical accounting and auditing knowledge to real-life situations of the clients he serves. He is committed to exceeding his clients’ expectations by providing quality and timely service in an ever-changing environment.

Mr. Ferrell works closely with management to ensure that EadiePayne is being responsiv e to the reporting needs within the time frame developed by management. Additionally, Mr. Ferrell performs top level review of project work.

Mr. Ferrell served the following clients:
 Cedarpines Park Mutual Water Company  Inland Empire Resource Conservation District  City of Compton  Inland Valley Development Agency
 City of Moreno Valley  Law Library of San Bernardino County  City of Oxnard  Legal Aid Society of San Bernardino, Inc.  City of Riverside  Riverside County Law Library
 City of Stockton  Riverside Highland Water Company
 County of Riverside  San Bernardino Regional Emergency Training Center  Fontana Union Water Company  San Bernardino County Special Districts  Fort Mojave Tribal Utilities Authority  San Gorgonio Pass Water Agency  Hesperia Recreation and Park District  Twentynine Palms Water District  Inland Empire Latino Lawyers Association Inc  Wrightwood Community Services District

EDUCATION
BS Degree in Business Administration with emphasis in Accounting, University of La Verne Leaderology Academy, 2019

PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
- Inland Empire Chapter, Director
National Society of Accountants for Cooperatives
- Program Committee
California Special Districts Association
- Fiscal Committee
- Audit Committ
ee

COMMUNITY ORGANIZATIONS
Riverside Chamber of Commerce
- Downtown Council
- Military Affairs Council
- Leadership Riverside Class of 2021
Optimist International

RECENT RELEVANT CPE
CalCPA The CARES Act: How it Impacts Government and Public Agencies: 2021 AICPA Preparing for your Single Audit: 2021
AICPA Compliance Supplement and Single Audit Update: 2021 EP New SAS, SSARS and SSAE: 2021
CalCPA Risk Assessment Compliance Standards: 2021
AICPA Government Audit Quality Center Update: 2022, 2021, 2020, 2019 AICPA CPA Best Practices for Working Remotely: 2020
Wolters Kluwer Government Accounting & Auditing Update: 2022, 2021, 2020 Wolters Kluwer Common Deficiencies: Audits Under Gov’t Auditing Standards and the Single Audit Act: 2020, 2021 Wolters Kluwer Government Auditing Standards and Foundations: 2020 EP A&A Matters Related to COVID: 2020
CSMFO Annual Conference 2023, 2022, 2020, 2019
EP GASB 87-Leases: 2020
Wolters Kluwer 2022 Govt Entities and Cyber Fraud
Wolters Kluwer GASB 87 leases one last look 2022
114
7 EDEN C. CASARENO, CPA
Technical Review Partner
Office: 951.241.7805 | Mobile: 909.809.7662 | [email protected] Ms. Casareno joined EadiePayne in 2002 as a staff accountant and became a partner in 2009. She was appointed head of attest and governmental services in 2016. She has been the quality control partner since 2019. As head of attest and governmental services, Ms. Casareno leads the EadiePayne team in providing attest and consulting services to cities and municipalities, special districts, JPAs and former redevelopment agencies.

As technical reviewer, Ms. Casareno will act as a second se t of eyes to ensure that the engagement has been performed in accordance with Government Auditing Standards, AICPA’s attestation standards, and firm policies.

Based on her experience providing similar services to governmental clients, Ms. Casareno offers valuable insight on internal controls, ensuring successful identification of findings and development and implementation of solutions.

Ms. Casareno served the following clients:
 Big Bear Valley Recreation and Park District  Fort Mojave Tribe / Avi Kwa Ame Farms  Bloomington Recreation and Park District  Hesperia Recreation and Park District  Big Bear Municipal Water District  Inland Empire Resource Conservation District  City of Compton  Inland Valley Development Authority  City of Huntington Park  Law Libra ry for San Bernardino County  City of Industry  Orange County Public Law Library
 City of Montebello  Riverside County Law Library
 City of Moreno Valley  Riverside County Transportation Commission  City of Oxnard  San Bernardino County Service Areas
 City of Riverside  San Bernardino County Special Districts  City of Stockton  San Gorgonio Pass Water Agency
 Community Action Partnership Riverside County  Twentynine Palms Water District  County of Riverside
ED

UCATION
BS Degree in Business Administration, emphasis in Accounting, University of California, Riverside Leadership Excellence Summit, Brainard Strategy Leadership Academy Single Audit Certificate – AICPA

PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
California Society of Municipal Finance Officers
California Special Districts Association

RECENT RELEVANT CPE
AICPA Auditor Considerations: The Coronavirus State and Local Fiscal: 2022 Recovery Funds Program: 2022
AICPA 2022 Compliance Supplement and Single Audit Update: 2022 CSMFO Annual Conference: 2023, 2022, 2021
AICPA GAQC Update: 2022, 2021, 2020
AICPA Annual Update for Accountants and Auditors: 2021
CCH 2021 GAAP, GAAS & SSARS Update: 2021
AICPA OMB Compliance Supplement and Covid-19 Audit Implications: 2021 EP GASB 84 & 87: 2021
EP Audit & Accounting Matters Related to Covid-19: 2020 EP GASB 87-Leases: 2020
CCH Common Frauds in Governmental Entities: 2020
CalCPA Government Auditing and Accounting Conference: 2020 AICPA 2020 State and Local Government Audit Planning Considerations: 2020 CSMFO Impact of Covid-19 on Financial Reporting and Single Audit: 2020 115
8 AMBER POWELL, CPA
Manager
Office: 951.241.7829 | Mobile: 909.557.3421| [email protected] Ms. Powell joined EadiePayne as audit manager in 2023. Ms. Powell has served a highly diverse client base with a long history of providing quality audit services for over 20 year s. Here at EadiePayne Ms. Powell leads in the planning, organization and execution of attest engagements.

Ms. Powell’s audit services include financial, governmental, non-for-profit, and compliance auditing. Beyond audit services Ms. Powell has consulted on strategic planning, operational efficiencies, fund accounting and management.

Ms. Powell’s experience allows her to provide exceptions professional judgment, sound and decisive decisions, and strong project management and interpersonal skills.

EDUCATION
BS Degree in Accounting, University of La Verne, La Verne, CA Licensed Certified Public Accountant
Licensed Certified Global Management Accountant

PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
California Society of Certified Public Accountants
116
9 ASHLEY JONES
Senior Accountant
Office: 951.241.7815 | Mobile: 909.809.7064 | [email protected] Ms. Jones joined EadiePayne in August 2021. She exhibits a strong work ethic and a good understanding of all aspects of GAAP accounting and financial reporting. Since joining EadiePayne, she has provided audit, review and tax services for a diverse set of clients, assisting not only in audit and tax engagements but also forensic and consulting services.

Ms. Jones has been a key team member on the following audits:
 Cal-Bean and Grain Coop Inc.  Inland Valley Development Agency  C
edarpines Park Mutual Water Company  Legal Aid So
ciety of San Bernardino, Inc.
 City
of Compton  Riverside Hig
hland Water Company
 City of Oxnard  San Berna
rdino County Special Districts
 He
speria Recreation and Park District  Spring
board CDFI
 Inland Empire IBEW-NECA Labor Management
Coo
peration Committee
 Treatment and Development Inc.
 Twent
ynine Palms Water District
 Inland Empire Latino Lawyers Association  Ultimate Internet Access  Inland Empire Re
source Conservation District

EDUCATION
BS Degree in Business Administration with emphasis in Finance (Cum Laude), California State University, San Bernardino, CA
MBA Degree in Accounting, California State University, San Bernardino, CA

PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
California Society of Certified Public Accountants

RECENT RELEVANT CPE
Audits of State and Local Government: 2022
Auditing Pension and OPEB (GASB 68 And 75): 2022
GASB 87: 2022
Auditwatch University: Experienced Staff Training: 2022 Accountant’s Liability: Balancing Risk and Reward: 2022 How to Become A Rock Star Auditor: 2021
Financial Statement Audits for New Auditors Series: Audit Planning: 2021 Basic Staff Training: Auditing Accounts Receivable & Revenue: 2021 Basic Staff Training: Auditing Accounts Payable: 2021
How Accounting Works and Reporting Guidelines: 2021
Auditing Excel Spreadsheets: 2021
Basic Accounting Procedures: Part I: 2021
Basic Accounting Procedures: Part II: 2021
Basic Staff Training: Audit Fixed Assets: 2021
Auditing Procedures & Practices: Audit Documentation: 2021 117
10 LESLY ESCALANTE
Staff Accountant
Office: 951.241.7832 | Mobile: 909.557.8385| [email protected] Ms. Escalante joined EadiePayne in May 2022. She has a st rong understanding of all as pects of GAAP accounting and financial reporting and has proven to be a key team member in audit and tax engagements where she efficiently performs substantive procedures and effectively communicates impor tant matters to the engagement team. Since joining EadiePayne, she has provided audit, review and tax services for clients ranging from government and not for profit entities, to privately owned businesses and individuals.

Ms. Escalante has been a key team member on the following audits:
 Cal-Bean and Grain Coop Inc.  Inland Valley Development Agency  C
edarpines Park Mutual Water Company  Legal Aid So
ciety of San Bernardino, Inc.
 City
of Compton  Riverside Hig
hland Water Company
 City of Oxnard  San Berna
rdino County Special Districts
 He
speria Recreation and Park District  Spring
board CDFI
 Inland Empire IBEW-NECA Labor Management
Coo
peration Committee
 Treatment and Development Inc.
 Twent
ynine Palms Water District
 Inland Empire Latino Lawyers Association  Ultimate Internet Access  Inland Empire Re
source Conservation District

EDUCATION
Master of Science in Accountancy, and a Bachelor of Arts in Administration with an Accounting concentration, California State University, San Bernardino, CA

PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
California Society of Certified Public Accountants

RECENT RELEVANT CPE
Audits of State and Local Government: 2022
Auditing Pension and OPEB (GASB 68 And 75): 2022
GASB 87: 2022
Auditwatch University: Experienced Staff Training: 2022 Accountant’s Liability: Balancing Risk and Reward: 2022 How to Become A Rock Star Auditor: 2021
Financial Statement Audits for New Auditors Series: Audit Planning: 2021 Basic Staff Training: Auditing Accounts Receivable & Revenue: 2021 Basic Staff Training: Auditing Accounts Payable: 2021
How Accounting Works and Reporting Guidelines: 2021
Auditing Excel Spreadsheets: 2021
Basic Accounting Procedures: Part I: 2021
Basic Accounting Procedures: Part II: 2021
Basic Staff Training: Audit Fixed Assets: 2021
Auditing Procedures & Practices: Audit Documentation: 2021 118
Audit Services with Eadie & Payne, LLP for the
City’s Golf Operations Audit
Finance & Governance Committee
June 13, 2023
Steve Howlett
Assistant Public Works Director
119
That the Finance and Governance Committee recommend that the City Council approve an amount not to exceed $20,000 for Eadie & Payne, LLP to perform an audit of the City’s golf operations.

RECOMMENDATION 2
120
• The City of Oxnard owns the River Ridge Golf Club that is under the supervision of the Public Works Department and managed by American Golf Corporation (“AGC”).
• AGC was awarded the management agreement (“Agreement”) beginning July 1, 2019 and will expire on June 30, 2024. • The golf operations have been profitable during AGC’s management and for FY 2022-23; both golf courses are projecting combined revenues of $5.9 million with expenditures of $4.9 million.

BACKGROUND 3
121
• AGC has been managing the golf operations for four years. • Staff decided to audit the golf operations per section 6.9 of the Golf Management Agreement that states, “Manager shall, if requested by Owner, hire an independent certified public accounting firm selected by Owner to audit the financial statements required under this Agreement and/or all other records or written materials used by Manager in generating the financial statements or perform agreed upon procedures requested by Owner. All fees and charges of the accounting firm shall be an Operating Expense of the Facility, unless the audit determines that an error of greater than five percent (5%) was made by Manager, in which case the costs of the audit will be paid by Manager and not as an Operating Expense of the Facility.” DISCUSSION 4
122
• In April of 2023, City staff solicited proposals from qualified firms to perform an audit of the Golf Operations.
• Eadie & Payne was the only firm to submit a proposal. Since Eadie and Payne, LLP is currently providing consulting services for the Finance Department, staff is confident in their ability to audit the golf operations.
• In accordance with section 6.9 of the Golf Management Agreement, City staff (representing Owner) has selected Eadie & Payne to be the firm that AGC (Manager) hires to perform the audit. The audit will be paid as an operating expense by the golf operations under management of AGC.

DISCUSSION 5
123
• In compliance with the City’s purchasing ordinance for all vendors who exceed $200,000 per year for contract services, staff is bringing this item to City Council for approval.
• Since this proposed contract for $20,000 will be paid by the golf operations, but would cumulatively put Eadie & Payne over the City’s $200,000 threshold, the approval of this action is recommended for consistency with the intent of the City’s procurement procedures.

DISCUSSION 6
124
• The total cost for the audit of the City’s golf operations with Eadie & Payne shall not exceed $20,000 and will be paid through the Golf Enterprise Fund.
• There is no impact to the General Fund.

FINANCIAL IMPACT 7
125

QUESTIONS
8 126

Finance & Governance CommitteeJune 13, 2023

Finance & Governance Committee
June 13, 2023