CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
3/27/2023
1 SUBJECT:
Resolution approving the contract amendment with Regional Government Services for financial and system implementation 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 (RGS) for Financial Services at the estimated additional cost of up to $179,590 to cover additional services related to implementation of the new Financial and Human Resources ERP system.
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 Financial Services under the City Manager's authority in January 2022 to bring professional consulting expertise and provide technical services related to routine Financial Services activities, following the retirement of the City's tenured Finance Manager in December 2021. That vacancy created a significant gap in the City's already small Finance team, leaving holes in the Finance Department service level and institutional knowledge.
Due to continuing critical need for these services, as a result of recruitment challenges in filling the vacancy, the City Council approved the extension of this agreement with additional purchase authority of $30,000 in October 2022. In the meantime, the City had to open the Finance Manager recruitment multiple times until the position was reclassed to the Deputy Finance Director in FY 2022-23 budget, and subsequently filled a few months ago.
The services provided under the original contract were performed by Matt Pressey, who has extensive knowledge and years of experience serving and advising several California agencies on financial matters. include the annual audit assistance, preparation of journal entries, general ledger reconciliations and complex adjusting entries, bank reconciliations, quarterly closures, and reporting.
As the new Deputy Finance Director came onboard and other Finance Department vacancies are being filled, the scope of original work under this engagement is being gradually reduced and shifted towards the long-overdue project of ERP system selection and contract negotiation and preparation for the implementation of the new financial system.
As the City is now on the journey to have the new ERP system implemented in the next two Pacifica City Council 2
March 27, 2023
years, there is a dire need for a deep knowledge and expertise to move forward the project and fulfill the project management role during the implementation.
The FY 2022-23 Adopted budget included allocation for a two-year limited term ARPA-funded Sr. Accountant position at $179,590 annual cost to help with the ERP implementation. Due to ongoing recruitment challenges and the highly unique expertise and skillset requirement for the job in both municipal accounting and systems implementation, the City was not able to fill this vacancy.
With RGS proven track record in financial management and systems implementation and Mr.
Pressey’s knowledge, expertise and familiarity with the City’s chart of accounts, general ledger and current accounting system, it is only fitting to reallocate the unused funds budgeted for the Senior Accountant position towards the RGS contract to ensure a smooth ERP implementation which is estimated to take at least 18 months.
ALTERNATIVE ACTION:
The Council may choose not to approve the contract amendment and/or provide staff with alternative directions such as re-opening the recruitment for the Senior Accountant position.
However, exercising this option will result in delays in the ERP implementation and potentially lead to an increased backlog in the City's day-to-day financial operations.
FISCAL IMPACT:
There is no FY 2022-23 fiscal impact associated with this action. The requested amendment is estimated at an additional $179,590 already budgeted for the full year of the fully burdened cost of the Sr. Accountant position that remains unspent. Reallocating these one-time funds towards the contract cost for a consultant who is already familiar with City’s financial structure and chart of accounts would set this project for success and will potentially result in savings compared to the cost of a two-year Sr. Accountant position.
ORIGINATED BY:
City Manager's Office
ATTACHMENT LIST:
Pacifica City Council 3
March 27, 2023
RESOLUTION NO. ___-2023
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 INCLUDE ADDITIONAL
CONSULTING SERVICES RELATED TO ERP IMPLEMENTATION
WHEREAS, the City has entered, under the City Manager's purchasing authority, into an agreement with RGS to assist the City with routine financial services, including bank reconciliations, quarterly and year-end closures, audit work, and preparation of the Annual Comprehensive Financial Report (ACFR) due to several vacancies in the Finance Department; and
WHEREAS, the additional financial consulting services are needed to provide consulting services related to ERP implementation; and
WHEREAS, the FY 2022-23 Adopted budget includes unspent allocation due to the failed recruitment for a two-year limited term ARPA-funded Senior Accountant position created for the purpose of ERP implementation at a fully-burdened annual cost of $179,590; 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 and include additional services related to ERP system implementation, not exceeding the budget authority of $179,590.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 27th day of March, 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney