CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
10/10/2022
1 SUBJECT:
Resolution approving the contract amendment with Regional Government Services for Financial consulting services
RECOMMENDED ACTION:
Move to approve a resolution authorizing the City Manager to extend the Consultant Services Agreement between the City of Pacifica and Regional Government Services for Financial Services at the estimated additional cost of up to $80,000 to cover services through the end of the current fiscal year.
STAFF CONTACT:
Yulia Carter, Assistant City Manager
(650) 501-6004
[email protected]
BACKGROUND/DISCUSSION:
RGS serves exclusively public sector agencies with its team of public sector experts to provide a customized solution to a variety of unique organizational needs.
The City entered into an agreement with RGS for Economic Development Services under the City Manager's authority in January 2022 following the retirement of the City's tenured Finance Manager in December 2021. This vacancy created a significant gap in the City's already small Finance team, leaving holes in the Finance Department service level and institutional knowledge. In addition, due to the recruitment challenges, the City had to open this recruitment multiple times. The Council recently approved the reclassification of the Finance Manager to the Deputy Finance Director position to help attract qualified candidates to this opportunity.
In the meantime, staff engaged with RGS to bring professional consulting expertise to provide technical services related to routine Financial Services activities. These services are led by Matt Pressey, who has extensive knowledge and years of experience serving and advising several California agencies on financial matters. The services provided under this contract include the annual audit assistance, preparation of journal entries, general ledger reconciliations and complex adjusting entries, bank reconciliations, quarterly closures and reporting. Over the next few months, the Finance staff will finalize the audit field work and produce the complex Annual Comprehensive Financial Report (ACFR) that requires specialized expertise and focus that RGS can provide to this project. Finance is currently recruiting for the Accounting Technician, Sr. Accountant, and Deputy Finance Director positions. This contract also helps comply with the internal control requirements given the finance department's nearly 50% current vacancy rate.
Although staff is planning to continue using the RGS knowledge and expertise in the remainder of the fiscal year, the scope of work is expected to be gradually reduced once the Deputy Finance Director is hired and trained and routine accounting procedures are established and documented, and Finance staff is up-to-speed on the internal financial procedures, required mandates and best practices.
Pacifica City Council 2
October 10, 2022
Once the vacancies are filled, the contract with RGS will be reduced to onboarding assistance to the new Deputy Finance Director and limited on-demand special projects, including the prior year's reconciliations, policy/procedure development, etc. In the meantime, RGS is temporarily backfilling some of the Deputy Finance Director duties as described above while the recruitment is underway and interviews are being scheduled.
ALTERNATIVE ACTION:
The Council may choose not to approve the contract amendment and/or provide staff with alternative directions. However, exercising this option will result in delays in ACFR production and an increased backlog in the City's financial operations.
FISCAL IMPACT:
The requested amendment is estimated at an additional $80,000 for the remainder of FY 2022-
23. This is a conservative estimate assuming that the Deputy Finance Director position will take a few more months to fill and on-board. The projected salary savings from the Deputy Finance Director position will fully offset this additional cost, so staff is not requesting a budget amendment at this time. However, staff will re-evaluate this at the mid-year budget review for any necessary adjustments to the FY 2022-23 budget.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Pacifica City Council 3
October 10, 2022
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING
AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY AND
REGIONAL GOVERNMENT SERVICES (RGS) TO CONTINUE PROVIDING FINANCIAL
CONSULTING AND GENERAL ACCOUNTING SERVICES
WHEREAS, the City's Finance Manager position became vacant in December 2021 and remains vacant despite the reclass to the Deputy Finance Director classification (recruitment is underway); and
WHEREAS, the City has entered, under the City Manager's purchasing authority, into an agreement with RGS to assist the City with bank reconciliations, quarterly and year-end closures, audit work, and preparation of the Annual Comprehensive Financial Report (ACFR) in compliance with Government Accounting Standards; and
WHEREAS, the additional financial consulting services are needed to backfill some duties of the Deputy Finance Director, assist the City with the mandated financial reporting, prepare FY 2021-22 ACFR report, quarterly bank reconciliations and closures, and develop and implement financial best practices, policies, and accounting procedures; NOW, THEREFORE, be it resolved by the City Council of the City of Pacifica, California, to authorize the City Manager to execute the necessary amendments to extend the existing contract with RGS for additional financial consulting and accounting services, not exceeding the budget authority of $80,000.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on held on the 10th day of October 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
____________________________
Mary Bier, Mayor
ATTEST: APPROVED AS TO FORM:
___________________________ __________________________
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney