CITY OF PITTSBURG
Demographic and Economic Statistics
Last Ten Fiscal Years
Per Capita Contra Costa * Pittsburg
Fiscal City * Total ** Personal Unemployment*** County Population Year Population Personal Income Income Rate (%) Population % of County 2014 66,695 1,461,822,000$ 21,918$ 9.7% 1,094,000 6.10% 2015 68,140 1,548,229,000 22,721 5.9% 1,111,339 6.13% 2016 69,424 1,534,225,000 22,099 5.8% 1,126,745 6.16% 2017 70,679 1,589,374,000 22,487 5.0% 1,135,127 6.23% 2018 72,141 1,684,104,000 23,345 3.7% 1,147,439 6.29% 2019 72,437 1,859,890,000 25,676 3.7% 1,150,215 6.30% 2020 72,588 1,991,949,000 27,442 16.8% 1,153,526 6.29% 2021 76,416 2,140,660,000 28,013 8.8% 1,165,927 6.55% 2022 76,544 2,303,530,000 30,649 3.9% 1,161,413 6.59% 2023 77,572 2,482,707,000 33,187 4.3% 1,156,966 6.70% Source: * www.census.gov
** from HdL Coren Report
*** www. homefacts.com
5.50%
5.75%
6.00%
6.25%
6.50%
6.75%
2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population as a % of County Population
0.00%
2.50%
5.00%
7.50%
10.00%
12.50%
15.00%
17.50%
2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate (%)
$0
$500
$1,000
$1,500
$2,000
$2,500
2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total ** Personal Income
$0
$5
$10
$15
$20
$25
$30
$35
2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Per Capita Personal Income
215
395
2022-23 *
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Ran k Employment Employees Rank Employment Pittsburg Unified School District 1,271 1 3.5% 1,172 1 3.2% Los Medanos Community College 934 2 2.6% 472 3 1.3%
Dow Chemical Company 370 3 1.0% 350 4 0.9%
City of Pittsburg 295 4 0.8% 222 6 0.6%
Walmart 250 5 0.7% 250 5 0.7%
Ramar Foods 198 6 0.6% 132 10 0.4%
Target 163 7 0.5% - - -
Home Depot 153 8 0.4% - - -
WinCo Foods 151 9 0.4% 134 9 -
Safeway 117 10 0.3% - - -
Angelica Corporation (Laundry) - - - 185 7 0.5% USS - Posco Industries - - - 700 2 1.9% Mi Pueblo Foods - - - 137 8 0.4% Subtotal 3,902 10.9% 3,754 10.5%
Employees in the City of Pittsburg 35,879 *** 37,098 **
Source: * Telephone Survey by Finance Staff
**2013-14 data from CAFR
*** www.uscensusbureau.com
2013-14 **
CITY OF PITTSBURG
Principal Employers
Current Year and Nine Years Ago
216
396
CITY OF PITTSBURG
Actual Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 42 42 45 45 43 46 44 43 44 46
Public Safety (Police) 89 95 98 96 101 109 107 109 114 113 Public Works 23 31 33 35 37 35 49 48 55 78
C o m m u n i t y D e v e l o p m e n t 2 93 33 73 73 73 74 94 85 23 5 R e c r e a t i o n 888999 1 2 1 5 2 0 1 6
W a t e r 2 62 52 52 42 32 12 42 72 73 0
W a s t e w a t e r 5576676 1 0 1 46
Total 222 239 253 252 256 264 291 300 326 324
Source: City of Pittsburg
0 100
200
300
400
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FTE's
Fiscal Year
Wastewater
Water
Recreation
Community
Development
Public Works
Public Safety
(Police)
General
Government
217
397
2014 2015 2016 2017
Function/Program
Public safety:
Police:
*** Police calls for Service 77,569 76,346 72,426 80,631 Law violations:
*** Part I and Part II crimes 7,725 7,729 7,286 7,663 *** Ph ysical arrests (adult and juvenile) 3,225 3,287 2,805 3,329 *** Traffic violations (VC14601 & VC12500) 920 1,032 706 1,193
(Fire Protection is Contra Costa County)
Public works
Street Re-surfacing (Miles) 13.41 1.55 0.80 -
Streets Repaired (square feet) 24,404 46,905 52,503 44,795 Recreation Services:
**** * Aquatic Participants 2,320 3,100 1,600 * * * 2,379 Sport Participants 850 731 590 650
Small World Park Gate Attendance 25,780 28,420 27,666 25,050 Senior Services Participants 19,339 ** 22,423 20,014 11,305 Water
Number of Meters Served 17,880 18,094 18,359 18,574
Water Main Breaks 59 71 80 46
Average Daily Consumption (millions of gallons) 8.2 7.8 7.3 8.6 Wastewater
Miles of Sewer Line (Excluding line operated by Delta Diablo District 7-A) 177 171 176 178 Solid Waste
Refuse Landfilled (tons per year) 53,753 51,564 63,500 59,559 Recyclables Processed (tons per year) 44,213 39,313 48,500 48,500 ** FY 2014 Number corrected. Prior ACFR reported number of classes, updated to reflect number of Participants. *** FY 2016 Numbers corrected.
**** For Public Safety effective FY2020 all numbers restated to calendar years to be in line with the DOJ - FBI Uniform Crime Report publication. ***** For Police effective 2022 the stats for Part I and II Crimes are no longer reported on the ACFR.
Source: City of Pittsburg Divisions & Prior Year ACFR's
CITY OF PITTSBURG
Operating Indicators by Function/Program
Last Ten Fiscal Years
218
398
2018 2019 2020 2021 2022 2023
80,133 87,517 75,865 *** 74,050 70,794 -
7,778 8,579 6,046 *** 6,309 ***** *****
2,808 4,127 2,382 *** 2,221 2,285.00 -
908 1,754 1,339 *** 648 532 -
0.97 0.25 0.25 1.50 5.57 14.82
48,305 40,028 70,890 60,514 66,095 87,388
2,301 2,335 6,042 12,129 29,307 31,040
616 750 - 312 773 1,514
22,839 22,999 14,108 - 12,558 18,449
16,000 17,210 36,344 11,420 10,566 13,450
18,759 18,767 19,028 19,233 19,733 19,459
32 27 44 60 49 42
8 8.1 8.1 8.9 8.4 8.7
179 180 180 180 172 175
70,982 94,092 80,347 90,570 83,021 80,225
42,811 54,940 50,306 58,462 52,794 47,818
219
399
CITY OF PITTSBURG
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017
Function/Program
Public works
Miles of streets (Center Line) 165.35 163.79 164.63 169.90 Street lights (Total) 4,331 4,358 4,287 4,287
Traffic Signals 61 61 63 63
Culture and recreation:
Community services:
City Parks 23 24 24 24
City parks acreage 145 147 147 147
Roadway landscaping acreage 20 22 22 22
Regional park acreage 56 56 56 56
Regional park facilities:
Golf courses (18 holes) 1 1 1 1
Marina Fuel Station 1 1 1 1
Community Civic Center 1 1 1 1
Senior centers 1 1 1 1
Swimming pools 1 1 1 1
Tennis courts 3 3 3 3
Water
Storage capacity (millions of gallons) 19.3 19.3 19.3 19.3 Miles of Water Mains 227 229 224 ** 227
Wastewater
Miles of Storm Drains 95 101 101 103
Note: n/a denotes information is not available.
** In 2016, the City remeasured all water lines using the new GIS System Source: City of Pittsburg Staff & Prior Year ACFR's
220
400
2018 2019 2020 2021 2022 2023
169.90 169.90 169.90 169.90 169.90 175
4,287 4,287 4,287 4,348 4,495 4,594
63 63 63 64 64 64
26 26 26 26 26 26
322 322 322 322 322 322
22 22 22 22 22 22
56 56 56 56 56 56
11111 1
11111 1
11111 1
11111 1
11111 1
33333 3
19.3 19.3 19.3 19.3 19.3 19.3
227 227 227 229 229 232
104 104 104 106 106 110
`
221
401
CITY OF PITTSBURG
Annual Comprehensive Financial Report
June 30, 2023
402
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2023-2024 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of Pittsburg, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet) of the City of Pittsburg, California, for the year ended June 30, 2024. The City’s management is responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of these procedures, which were s uggested by the League of California Cities and presented in their Article XIIIB Appropriations Limi tation Uniform Guidelines, were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all user s of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings are as follows:
A. We obtained the Workshee t and determined that the 2023-2024 Appropriations Limit of $210,069,618 and annual adjustment factors were adopted by Resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council.
B. We recomputed the 2023-2024 Appropriations Limit by multiplying the 2022-2023 Prior Year Appropriations Limit by the Total Growth Factor . We recomputed the Total Growth Factor by multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor, City Popula tion Factor and County Population Factor to California State Department of Finance Worksheets.
We were engaged by the City to perform this ag reed-upon procedures enga gement and conducted our engagement in accordance with atte station standards established by th e American Institute of Certified Public Accountants. We were not engaged to and di d not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information a nd use of management and th e City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
March 25, 2024
403
CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2023
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CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control ......................................................................................................................... 1
Status of Significant Defi ciency ..................................................................................................................... 3
Schedule of Other Matters.............................................................................................................................. 5
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407
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Pittsburg, California
In planning and performing our audit of the financial statements of the City of Pittsburg (City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing our auditing proc edures that are appropriate in th e circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the li mited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefor e material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we id
entified a deficiency in internal control that we
consider to be a significant deficiency.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable po ssibility that a material misstatement of the City’s financial statements will not be prevente d, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combinati on of deficiencies, in internal control that is less severe than a material weakness, yet important en ough to merit attention by those charged with governance. We consider the deficiency in internal control included on the Schedule of Significant Deficiency to be a significant deficiency.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the acco mpanying Schedule of Significant Deficiencies and Schedule of Other Ma tters. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
1 408
This communication is intended solely for the information and use of management , City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
March 25, 2024
2 409
CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCY
2023-01: Timely Bank Reconciliations
Criteria: The City should ensure that bank reconciliations are prepared and reviewed in a timely matter, within 30 to 45 days after receipt of the respective month’s bank statement.
Condition: During our fiscal year 2023 audit, we noted that the City’s bank reconciliations for the months from October 2022 through June 2023 were no t prepared and reviewed until December 2023 and January 2024, respectively.
Cause: Due to delays related to a new Housing software implementation that occurred during fiscal year 2023 combined with staff shortages within the Finance and Housing departments.
Effect: Without timely preparation and review of ba nk reconciliations, the risk of unauthorized transactions, errors, material misstatements or potential fraud increases.
Recommendation: We recommend that the City develop proced ures to ensure that bank reconciliations are prepared and reviewed in a timely manner, within 30 to 45 days after receipt of the respective month’s bank statement.
Management’s Response: The City agrees with the finding and the recommendation for timely Bank Reconciliations. Management will review the internal control process and staffing allocations of duties to make sure Bank Reconciliations are completed, revi ewed and approved on a timely matter, within 30- 45days.
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411
CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements ta king affect in the next few years. We cite them here to keep you informed of developments:
EFFECTIVE FISCAL YEARS 2022, 2023 and 2024:
GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The pr actice issues addressed by this Statement are as follows:
• Classification and reporting of derivative inst ruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument • Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a s hort term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives • Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determinati on of the public-private and public-public partnership (PPP) term and (b ) recognition and measurement of installment payments and the transfer of the underlying PPP asset
• Clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based inform ation technology arrangement (SBITA) term, classification of a SBITA as a short term SBITA, and recognition and measurement of a subscription liability
• Extension of the period during wh ich the London Interbank Offere d Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt • Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)
• Disclosures related to nonmonetary transactions
• Pledges of future revenues when resources are not received by the pledging government • Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements
5 412
CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 99 – Omnibus 2022 (Continued)
• Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position • Terminology used in Statement 53 to refer to resource flows statements.
The Requirements of this Statement are Effective as Follows:
The requirements in paragraphs 26–32 related to exte nsion of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary trans actions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance.
The requirements in paragraphs 11–25 related to leas es, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
The requirements in paragraphs 4–10 related to financ ial guarantees and the cl assification and reporting of derivative instruments within th
e scope of Statement 53 are effectiv e for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by individual topic.
How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. Consistent authoritative literature enables gove rnments and other stakeholders to more easily locate and apply the correct accounting and financial repo rting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will impr ove as a result of this Statement. Better consistency and comparability improv e the usefulness of information for users of state and local government financial statements.
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CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhanc e accounting and financial reporting requirements for accounting changes and error correctio ns to provide more understandable , reliable, relevant, consistent, and comparable information for making decisions or assessing accountability This Statement defines accounting changes as changes in accounting prin ciples, changes in accounting estimates, and changes to or within the financial repo rting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, fo r (1) certain changes in accounting principles and (2) certain changes in accounting es
timates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement al so addresses corrections of errors in previously issued financial statements.
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prio r periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning ba lances of the current period, and (c) changes in accounting estimates be reported pr ospectively by recognizing the chan ge in the current period. The requirements of this Statement for changes in account ing principles apply to the implementation of a new pronouncement in absence of specific transition provi sions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
This Statement requires disclosure in notes to fina ncial statements of descriptive information about accounting changes and error corrections, such as th eir nature. In addition, information about the quantitative effects on beginning balances of each acc ounting change and error correction should be disclosed by reporting unit in a tabu lar format to reconcile beginning ba lances as previously reported to beginning balances as restated.
Furthermore, this Statement addresses how informat ion that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than thos e included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles.
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CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information need s of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurem ent guidance under a unified model and by amending certain previously required disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensate d absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncas h means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a gove rnment should consider relevant factors such as employment policies related to compensated absenc es and historical inform ation about the use or
payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefi ts should not be included in a liability for compensated absences.
This Statement requires that a li ability for certain types of compen sated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of co mpensated absences not be recognized until the leave is used.
This Statement also establishes gu idance for measuring a liability fo r leave that has not been used, generally using an employee’s pay rate as of the date of the financial st atements. A liability for leave that has been used but not yet paid or settled should be measured at th e amount of the cash payment or noncash settlement to be made. Ce rtain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statemen ts prepared using the current fina ncial resources measurement focus, this Statement requires that expenditures be recognize d for the amount that norm ally would be liquidated with expendable available financial resources.
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no l onger required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. 8 415
CITY OF PITTSBURG
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately refl ects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimat e of the amount of compen sated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
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CITY OF PITTSBURG
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED JUNE 30, 2023
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CITY OF PITTSBURG
REQUIRED COMMUNICATIONS
For The Year Ended June 30, 2023
Table of Contents
Page
Required Communications ........................................................................................................................... 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices .............................................................................. 1
Difficulties Encountered in Performing the Audit ...................................................................... 3
Corrected and Uncorrected Misstatements ................................................................................. 3
Disagreements with Management ............................................................................................... 3
Management Representations ....................................................................................................... 3
Management Consultations with Other Independent Accountants ............................................ 4
Other Audit Findings or Issues ..................................................................................................... 4
Other Ma tters ....................................................................................................................................... 4
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REQUIRED COMMUNICATIONS
To the City Council of
the City of Pittsburg, California
We have audited the basic financial statements of the City of Pittsburg for the year ended June 30, 2023.
Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scop e and timing of our audit. We have communicated such information orally with the Ma
yor during our discussion on May 24, 2023. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are desc ribed in Note 1 to the financial statements. No new accounting policies were adopt ed, and the application of existing policies was not changed during the year, except as follows:
GASB 96 – Subscription Based Information Technology Arrangements This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a correspond ing subscription liabi lity; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standard s established in Statement No. 87, Leases, as amended.
A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, al one or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.
The subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the govern ment or SBITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset— an intangible asset—and a corresponding subscrip tion liability. A government should recognize the subscription liability at the commencement of the subscripti on term, —which is when the subscription asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected to be made during the subscription term. 1 422
Future subscription payments sh ould be discounted using the in terest rate the SBITA vendor charges the government, which may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A government should recogn ize amortization of the discount on the subscription liability as an outflow of resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3) capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the commencement of the subscription term. A government should recognize amortization of the subscription asset as an outflow of resources over the subscription term.
The pronouncement became effectiv e, and as disclosed in Note 1S to the financial statements required a prior period restatement for the cumulative effect on the financial statements.
The following pronouncements became effective, but did not have a ma terial effect on the financial statements:
GASB 91 – Conduit Debt Obligations
GASB 94 – Public-Private and Public-Public Pa rtnerships and Availability Payment Arrangements
GASB 99 – Omnibus 2022, paragraphs 11-25
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidan ce or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are par ticularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most se nsitive estimate(s) affecting the City’s financial statements were:
Estimated Fair Value of Investments: As of June 30, 2023, the City held approximately $268.9 million of cash and investments as measured by fa ir value as disclosed in Note 2 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2023. These fair values are not required to be adjusted for changes in ge neral market conditions oc curring subsequent to June 30, 2023.
Estimated Net Pension Liabilities and Pensi on-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 12 to the fina ncial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the ke y factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.
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Estimated Net OPEB Liabilities and OPEB–Related Deferred Outflows and Inflows of Resources:
Management’s estimate of the net OPEB liabilities and deferred outflows/inflows of resources are disclosed in Note 13 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluate d the key factors and assumptions used to develop the estimate and determ ined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimated Liability for Claims Payable: Management’s estimate of the liability for claims payable is disclosed in Note 11 to the financial statements and is based on actuarial studies determined by a consultant, which is based on the claims experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determ ined that it is reasonable in relation to the basic financial statements taken as a whole.
Estimate of Depreciation: Management’s estimate of the depreci ation is based on useful lives determined by management. These lives have be en determined by management based on the expected useful life of assets as disclosed in No te 1 to the financial stat ements. We evaluated the key factors and assumptions used to develop the depreciation estima te and determined that it is reasonable in relation to the basic financial statements taken as a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such miss tatements. The following material misstatements detected as a result of audit procedures were corrected by management: to adjust GASB 75 OPEB related balances for all enterprise funds and to adjust accretion related to the 1999 Successor Agency Bonds at June 30, 2023.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from ma nagement that are incl uded in a management representation letter dated March 25, 2024.
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Management Consultations with Other Independent Accountants In some cases, management may d ecide to consult with other account ants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City ’s financial statements or a determ ination of the type of auditor’s opinion that may be expressed on those statements , our professional standards require the consulting accountant to check with us to determine that the consultant has all the re levant facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional re lationship and our response s were not a condition to our retention.
Other Matters
We applied certain limited procedures to the requir ed supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and compari
ng the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary in formation. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial statements, but are not required supplementary information. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
March 25, 2024
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OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Receive and File Single Audit Report, for Fiscal Year Ended June 30, 2023
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
The Single Audit is required for all recipients of federal financial assistance programs and focuses on compliance with federal funding guidelines described in the OMB Circular A-133 Compliance Supplement. The City of Pittsburg completed its Single Audit in March 2024 and has received an unqualified or “clean opinion” from the City’s audit firm, Maze and Associates, Certified Public Accountants (“Maze”) in March 2024.
FISCAL IMPACT
There is no fiscal impact to accept the Single Audit Report, report for fiscal year ended June 30, 2023.
RECOMMENDATION
Receive and file the Single Audit Report for fiscal year ended June 30, 2023.
BACKGROUND
The City completed its annual audit in March 2024. The Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2023, will be presented to the City Council at the May 6, 2024 meeting. The Single Audit is required for all recipients of federal financial assistance programs and focuses on compliance with federal funding guidelines. The Single Audit was concluded in March 2024.
In the audit of the City’s consolidated financial statements, Maze concluded that the consolidated financial statements were fairly presented, in all material respects, and is conformed with U.S. Generally Accepted Accounting Principles. 426
SUBCOMMITTEE FINDINGS
This item was briefly mentioned during the April 26, 2024 Finance Management Subcommittee.
STAFF ANALYSIS
Maze has conducted a compliance audit according to the OMB Circular A-133 supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The audit concluded that the City complied, in all material respects, with the compliance requirements in accordance with the auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133.
Two programs were audited in Fiscal Year 2022/23. The US Department of Treasury - American Rescue Plan Act, (ARPA) and The Department of Housing and Urban Development – Housing Choice Voucher program, (HCV). Maze has identified one significant deficiency in the Single Audit Report for the HCV program. A significant deficiency in internal control is less severe than material weakness, yet important enough to merit attention from those charged with governance.
During the current year, the City underwent a monitoring review by the grantor related to the Voucher Management System (VMS), data submitted by the City to HUD for the City’s Housing Choice Voucher Program for the time period of December 1, 2021 through November 30, 2022. The purpose of the review was to validate the Unit Months leased (UML) and related Housing Assistance payment (HAP) certified as accurate by the Public Housing Authority (PHA).
The grantor issued a letter detailing the results of the review. Multiple HAP and unit months leased (UML) categories could not be validated, affecting validation of total HAP and total UML. This matter was attributed to understaffing at the Housing Authority during fiscal years 2022 and 2023. Furthermore, the Housing Authority converted its Housing software during fiscal year 2022 and the new software had systemic reporting errors that adversely impacted the reporting during fiscal year 2023.
City Management and staff will be reviewing and revising policies and procedures, where applicable, to ensure that all VMS reporting is in compliance with the grant requirements and CFR. In addition, City Management will ensure adequate staffing allocations for the HVC program for the VMS filing and staff will continue to work with HUD to ensure compliance.
ATTACHMENTS: Single Audit Report for the Fiscal Year ended June 30, 2023 Report Prepared By: Laura Mendez, Finance Reporting Manager Reviewed By: Paul Rodrigues, Finance Director
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CITY OF PITTSBURG
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2023
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CITY OF PITTSBURG
SINGLE AUDIT REPORT
For The Year Ended June 30, 2023
TABLE OF CONTENTS
Page
Schedule of Findings and Questioned Costs .............................................................................. 1 Section I – Summary of Auditor’s Results ......................................................................... 1 Section II – Financial Statement Findings .......................................................................... 2 Section III – Federal Award Findings and Questioned Costs ............................................. 2 Schedule of Expenditures of Federal Awards ............................................................................ 4 Notes to the Schedule of Expenditures of Fede
ral Awards ....................................................... 5 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................... 7 Independent Auditor's Report on Compliance for Each Major Program and on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ...... 9 430
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CITY OF PITTSBURG
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended June 30, 2023
SECTION I – SUMMARY OF AUDITOR’S RESULTS
SECTION I—SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified? X Yes
None
Reported
Noncompliance material to financial statements noted? Yes X No Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified? X Yes
None
Reported
Type of auditor’s report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? X Yes No
Identification of major program(s):
Assistance
Listing
Number(s) Name of Federal Program or Cluster
14.871 Section 8 Housing Choice Voucher Cluster
21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and type B programs: $1,076,658 Auditee qualified as low-risk auditee? X Yes No
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SECTION II – FINANCIAL STATEMENT FINDINGS
Our audit disclosed a significant deficiency, but no material weaknesses or instances of noncompliance material to the basic financial statements. We have also issu ed a separate Memorandum on Internal Control dated March 25, 2024 which is an integral part of our audits and should be read in conjunction with this report.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit disclosed the following findings and questione d costs required to be re ported in accordance with Uniform Guidance.
Finding SA2023-001: Department of Housing and Urban Deve lopment Voucher Management System (VMS) Monitoring Review Findings
Assistance Listing Number: 14.871
Assistance Listing Title: Section 8 Housing Choice Vouchers Cluster Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification Number and Year: CA060VO (2023) Criteria: 24 CFR Section 982 requires recipi ents of Section 8 Housing Choi ce Vouchers to submit data on monthly leasing activities and costs for the program via mandatory Public Housing Authority (PHA) reporting through the Voucher Management System (VMS). The Department of Housing and Urban Development (HUD) reviews VMS data and uses the data for a variety of major functions, including budget formulation, utilization analysis and funding allocations.
Condition: During the current year, the City underwent a monitoring review by the grantor related to the VMS data submitted by the City to HUD for the City’s Section 8 Housing Choice Voucher Program (Program) for the time period of December 1, 2021 through November 30, 2022. The purpose of the review was to validate the Unit Months Leased (UML) and related Housing Assistance Payment (HAP) expenses certified as accurate by the PHA. The grantor issued a letter dated March 6, 2023 detailing the results of the review.
The monitoring review results included one finding and three concerns:
• Finding 1: Multiple HAP and unit months leased (UML) categories could not be validated, adversely affecting validation of total HAP and total UML.
• Concern 1: The portable vouchers administered UML and HAP could not be validated. • Concern 2: Vouchers issued but not under HAP contract on the last day of the month could not be validated.
• Concern 3: The PHA did not report the number of project-based vouchers (PBVs) under an agreement to enter into a HAP contract and not under a HAP contract. • Concern 4: The number of PBVs under HAP contract and leased/not leased; and the total PBV HAP expenses could not be validated.
Effect: The Housing Authority is not in compliance with the requirements set forth by 24 CFR Section 982 regarding VMS reporting.
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SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (Continued) Finding SA2023-001: Department of Housing and Urban Deve lopment Voucher Management System (VMS) Monitoring Review Findings (Continued)
Cause: The above was due to understaffing at the Hous ing Authority during fiscal years 2022 and 2023.
Furthermore, the Housing Authority converted its H ousing software during fiscal year 2022 and the new Housing software had systemic reporting errors that adversely impacted the reporting during fiscal year 2023.
Recommendation: Although the City responded to the findings in its April 6, 2023 lette r to the grantor with corrective action plans, the City should revise its policies and procedures, where applicable, to ensure that all VMS reporting is in compliance with th e grant requirements and CFR. In ad dition, the City should continue to work with HUD to ensure complia nce with all goals identified in the corrective action plan provided to HUD.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
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CITY OF PITTSBURG
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2023
Federal
Assistance Pass-Through
Federal Grantor/ Listing Identifying Pass-Through To Federal Pass-Through Grantor/Program or Cluster Title Number Number Subrecipients Expenditures US Department of Housing & Urban Development Direct Programs:
Community Development Block Grants/Entitlement Grants Cluster 14.218 Entitlement Program $118,056
Subgrants $500,970 500,970
COVID-19 - CDBG-CV 180,529
Subtotal Community Development Block Grants/Entitlement Grants Cluster 799,555 Housing Voucher Cluster
Section 8 Housing Choice Voucher Program 14.871 23,276,273 Total Department of Housing and Urban Development 24,075,828 Department of Justice Direct Program:
Edward Byrne Memorial Justice Assistance Grant Program 16.738 33,623 Total Department of Justice 33,623
Department of Transportation Pass-Through Programs From:
California Department of Transportation
Highway Planning and Construction Program (Federal-Aid Highway Program) 2019-01 Traffic Signal Improvements 20.205 HSIPL-5127(037) 130,378 Stoneman Avenue Intersection Improvements 20.205 HSIPL-5127(034) 154,409 Metropolitan Transportation Commission
One Bay Area Grants (OBAG) Program
2018-03 BART Pedestrian & Bicycle Connectivity 20.205 CML-5127(036) 29,994 Pavement Improvement/Rehabilitation Program 20.205 STPL-5127(041) 61,069 Subtotal Highway Planning and Construction Program 375,850 State of California-Office of Traffic Safety
Minimum Penalties for Repeat Offenders for Driving While Intoxicated Selective Traffic Enforcement Program 20.608 PT22056 72,532 Total Department of Transportation 448,382
US Department of Homeland Security Pass-Through Program From:
California Governor's Office of Emergency Services
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 FEMA-4482-DR-CA 32,781 Department of the Treasury Direct Program:
COVID-19 Coronavirus State and Local Fiscal Recovery Funds 21.027 11,049,215 US Environmental Protection Agency Direct Programs:
Brownfields Assessment and Cleanup Cooperative Agreements 66.818 45,389 Brownfields Multi-Purpose Cooperative Program 66.818 203,380 Subtotal US Environmental Protection Agency Direct Program 248,769 Total Expenditures of Federal Awards $500,970 $35,888,598 See Accompanying Notes to Schedule of Expenditures of Federal Awards 4 435
CITY OF PITTSBURG
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2023
NOTE 1 – REPORTING ENTITY
The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Pittsburg, California (City) an d its component units as disclosed in the notes to the Basic Financial Statements.
The City was incorporated under the General Laws of the State of California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City uses the Council/Man ager form of government.
The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and si gnificance of their relationship with the primary government are such that exclusion would cause the re porting entity’s financial statements to be misleading or incomplete.
Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component un its can be other organizations for which the primary government’s exclusion would cause the reporting en tity’s financial statements to be misleading or incomplete.
The following component units are included in the basic financial statements of the City:
o Housing Authority
o Public Infrastructure Financing Authority
o Pittsburg Power Company
o Pittsburg Arts & Community Foundation
o Southwest Pittsburg GHAD II
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statemen ts, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting . The proprietary and fiduciary fund fina ncial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
NOTE 3 – INDIRECT COST ELECTION
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 5 436
CITY OF PITTSBURG
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2023
NOTE 4 – LOAN AND/OR LOAN GUARANTEE PROGRAM
NOTE 4 – LOAN
The following loan program balance and transaction relating to these pr ograms are included in City’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023 consists of the following:
Assistance
Listing
Number Program Name
Outstanding
Balance
at June 30, 2023
14.218 Community Development Block Grant/Entitlement Grants $235,800 6 437
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Pittsburg, California
We have audited, in accordance with the auditing st andards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the fina ncial statements of the governmental activities, the business-type activities, each major fund, and the aggr egate remaining fund information of the City of Pittsburg as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statem ents, and have issued our report thereon dated March 25, 2024. Our report included an emphasis of a matter paragraph disclosing the implementation of new accounting principles.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we cons idered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expr essing our opinions on the financial statements, but no t for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to preven t, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or det ected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is le ss severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limite d purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, duri ng our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiency in internal control that we consider to be a significant deficien cy as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated March 25, 2024, which is ai integral part of our audit and should be read in conjunction with this report. 7 438
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and ma terial effect on the financial statements. However, providing an opinion on complian ce with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of no ncompliance or other matters that are required to be reported under Government Auditing Standards.
We have also issued a separate Memo randum on Internal Control dated Ma rch 25, 2024, which is an integral part of our audit and should be read in conjunction with this report.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited pr ocedures on the City’s response to the findings identified in our audit and described in our separately issu ed Memorandum on Internal Control dated March 25, 2024, which is an inte gral part of our audit and should be read in conjunction with this report.
The City’s response was not subjected to the other audi ting procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opini on on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and co mpliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
March 25, 2024
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INDEPENDENT AUDITOR'S REPORT
ON COMPLIANCE FOR EACH MAJOR PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Members of the City Council
City of Pittsburg, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Pittsburg’s (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results sec tion of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards app licable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States ( Government Auditing Standards); and the audit requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Unifor m Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provis ions of contracts or grant agreements applicable to the City’s federal programs.
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Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncom pliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forger y, intentional omissions, misrepresent ations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influen ce the judgment made by a reasonable user of the report on comp liance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards , and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risk s. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal cont rol over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal c ontrol over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying Schedule of Findings and Questioned Costs as item SA2023 -001. Our opinion on each major federal program is not modified with respect to these matters.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our audit descri bed in the accompanying Sc hedule of Findings and Questioned Costs. The City’s response was not subjected to the other auditi ng procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. 10 441
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be materi al weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, as discussed below, we did identify a deficiency in internal control over compliance that we consider to be a significant deficiency.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal cour se of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in intern al control over compliance is a deficiency, or a combination of deficiencies, in inte rnal control over compliance, such th at there is a reasonable possibility that material noncompliance with a type of comp liance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies , in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance desc ribed in the accompanying Schedule of Findings and Questioned Costs as item SA2023-001 to be a significant deficiency.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the internal control over compliance findings identified in our audit desc ribed in the accompanying Schedule of Findings and Questioned Costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
The purpose of this report on internal control over compli ance is solely to describe the scope of our testing of internal control over compliance and the results of th at testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the go vernmental activities, the business-type activities, each major fund, and the aggregate remaini ng funds information of the City as of and for the year ended June 30, 2023, and the related notes to the fi nancial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated Marc h 25, 2024, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purpose s of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information ha s been subjected to the a uditing procedures applied in the audit of the basic financial statements and certain additional procedures , including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statem ents themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. 11 442
In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects in relation to the basic financial statements as a whole.
Pleasant Hill, California
March 25, 2024
12 443
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Accepting Project 5080 – HDPE Water Main Reducer Emergency Repair as Complete and Authorizing the City Engineer to File a Notice of Completion
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
Project 5080 - HDPE Water Main Reducer Emergency Repair (the “Project”) repaired a section of water main pipe that failed at the intersection of Buchanan Road and Quercus Lane. This resolution will accept the construction contract as complete and authorize the City Engineer to file a Notice of Completion.
FISCAL IMPACT
The Project was funded with $110,000 of Water Operations Funds (Fund 501) (Resolutions No. 23-14318 and 23-14401) for a total approved budget of $110,000.
After payment of all expenditures for design, construction, release of retention, and project close out, the total anticipated expenditures for the Project are $110,000.
An estimated Project Budget Summary is attached.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution accepting the Project as complete and authorizing the City Engineer to execute a Notice of Completion.
BACKGROUND
On August 25, 2023, proposals for construction of the Project were received, and Gold Coast Pipelines, Inc. was the lowest, most qualified bidder with a base bid in the amount of $84,810.
444
On June 19, 2023, the City Council adopted Resolution No. 23-14318 adopting the Five- Year Capital Improvement Program for Fiscal Years 2023/24 through 2027/28 allocating $65,300 from Fund 501 to the Project.
On November 6, 2023, the City Council adopted Resolution No. 23-14401 allocating $44,700 from Fund 501 to the Project, accepting the plans and specifications, and awarding a construction contract to Gold Coast Pipelines, Inc. in the amount of $84,810.
On February 22, 2024, the contractor reached substantial completion.
SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.
STAFF ANALYSIS
The Project was critical to repair a failed section of the City’s water service. The segment of pipe that was replaced included a reducer which transitions the water main from a 20-inch diameter pipe to an 18-inch diameter pipe.
During construction, there was a total of one contract change order issued in the amount of $18,189.14 for a total contract amount of $102,999.14.
ATTACHMENTS: Resolution
Budget Summary
Report Prepared by: Gabriel Piña, Associate Engineer
445
Budget Summary
Project 5080 — HDPE Water Main Reducer Emergency Repair Project Funding
Water Operations Fund (Reso 23-14318) $65,300
Water Operations Fund (Reso 23-14401) $44,700
Funding Total $110,000
Project Expenditures:
(Code 2122) Design Consultant $4,375
Subtotal $4,375
Miscellaneous:
(Code 1399) Advertising $0
Subtotal $0
Construction: Construction $103,000
Subtotal $103,000
Staff Time:
(Code 1101) Staff Costs $2,533
Subtotal $2,533
Admin:
(Code 2372) Overhead Costs $92
Subtotal $92
Estimated Total Expenditures $110,000
446
Resolution No. 24- Page 1 of 2 May 6, 2024
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Accepting Project 5080 - HDPE Water )
Main Reducer Emergency Repair As ) RESOLUTION NO. 24-
Complete and Authorizing the City )
Engineer to File a Notice of Completion )
WHEREAS, Project 5080 - HDPE Water Main Reducer Emergency Repair (the “Project”) replaced a failed section of water main pipe at the intersection of Buchanan Road and Quercus Lane; and
WHEREAS, on August 25, 2023, proposals for construction of the Project were received, and Gold Coast Pipelines, Inc. was the lowest, most qualified bidder with a base bid in the amount of $84,810; and
WHEREAS, on June 19, 2023, the City Council adopted Resolution No. 23-14318 adopting the Five-Year Capital Improvement Program for Fiscal Years 2023/24 through 2027/28, allocating $65,300 of Water Operations Funds (Fund 501) to the Project; and WHEREAS, on November 6, 2023, the City Council adopted Resolution No. 23- 14401, allocating $44,700 from Fund 501 to the Project, accepting the plans and specifications, and awarding a construction contract to Gold Coast Pipelines, Inc. in the amount of $84,810; and
WHEREAS, there was one contract change order in the amount of $18,189.14 for a total contract amount of $102,999.14; and
WHEREAS, on February 22, 2024, the contractor reached substantial completion; and
WHEREAS, the total anticipated expenditures for the Project, including design, construction, and staff costs are $110,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby accepts the Project as complete and authorizes the City Engineer to execute a Notice of Completion and file said document with the Office of the Recorder of the County of Contra Costa, State of California, within 10 days from the date hereof. 447
Resolution No. 24- Page 2 of 2 May 6, 2024 PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
Juan Antonio Banales, Mayor
ATTEST BY:
Alice E. Evenson, City Clerk
448
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Directing the City Engineer to Prepare and File an Annual Report for Citywide Landscaping and Lighting Assessment District 1988-01 for FY 2024/25
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
Directing the City Engineer as the Engineer of Work to prepare and file the Engineer’s Report is the first of three steps in the annual renewal process for the Citywide Landscaping and Lighting Assessment District 1988-01. Upon receipt and approval of the Engineer’s Report, the City Council may order assessments to be placed on the county tax roll.
Revenue collected through this district is necessary to fund citywide landscaping and lighting operations.
FISCAL IMPACT
The fiscal impact of levying FY 2024/25 assessments will be determined during the Engineer’s Report review.
RECOMMENDATION
City Council approve the attached resolution directing the City Engineer to prepare and file the FY 2024/25 report for Citywide Landscaping and Lighting Assessment District 1988-01.
BACKGROUND
In June 1988, the City Council confirmed the Engineer's Report, ordered improvements, and levied the first annual assessment for District 1988-01. 449
The funds collected annually support landscaping and lighting operations citywide. Services include the following:
Street median and right-of-way landscaping maintenance; Park and street tree maintenance;
Sidewalk repair related to street tree damage; and
Streetlight maintenance and energy costs.
SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.
STAFF ANALYSIS
State statute mandates an annual renewal of assessments in District 1988-01. The first step is for the City Council to direct the City Engineer to prepare and file an annual report. The report will be submitted for City Council consideration in June.
Following preparation of the annual Engineer’s Report, the City Council will consider adoption of a resolution of intention to levy and collect assessments within the district. In July, the City Council will hold a public hearing prior to considering confirming the district and levying the annual assessments.
ATTACHMENTS: Resolution
Report Prepared By: Sharon Paz, Administrative Analyst ll 450
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Directing the City Engineer to Prepare )
and File an Annual Report for the Citywide ) RESOLUTION NO.24- Landscaping and Lighting Assessment )
District 1988-01 for FY 24/25 )
WHEREAS, in June 1988, the City Council adopted Resolution No. 88-7324, accepting the Engineer’s Report, ordering improvements, and levying the first annual assessment for the Citywide Landscaping and Lighting District 1988-01; and WHEREAS, the funds collected annually support landscaping and lighting operations throughout the city. Services include street median and right-of-way landscaping maintenance, park and street tree maintenance, sidewalk repair related to street tree damage, street light maintenance and energy costs; and WHEREAS, Section 22622 of the California Streets and Highways Code requires the City Council to annually adopt a resolution generally describing proposed new improvements or any substantial changes in existing improvements to be included for the determination of annual assessments levied for any existing assessment district created under the Landscaping and Lighting Act of 1972; and
WHEREAS, Section 22622 further requires that the City Council order the preparation of an Engineer’s Report prior to declaring their intention to levy annual assessments for any district.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby directs John Samuelson, City Engineer, to prepare and file with the City Clerk an annual report in accordance with Section 22622 of the Act.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_________________________________
Juan Antonio Banales, Mayor
ATTEST:
_________________________________
Alice E. Evenson, City Clerk
451
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Directing the City Engineer to Prepare and File an Annual Report for the Oak Hills Landscaping and Lighting Assessment District 1988-02 for FY 2024/25
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
Directing the City Engineer as the Engineer of Work to prepare and file the Engineer’s Report is the first of three steps in the annual renewal process for the Oak Hills Landscaping and Lighting Assessment District 1988-02. Upon receipt and approval of the Engineer’s Report, the City Council may order assessments to be placed on the county tax roll.
Revenue collected through this district is necessary to fund landscaping and lighting operations in the Oak Hills area.
FISCAL IMPACT
The fiscal impact of levying Fiscal Year (FY) 2024/25 assessments will be determined during the Engineer’s Report review.
RECOMMENDATION
City Council approve the attached resolution directing the City Engineer to prepare and file the FY 2024/25 report for the Oak Hills Landscaping and Lighting Assessment District 1988-
02. BACKGROUND
In June 1988, the City Council adopted Reso. No. 88-7322, accepting the Engineer’s Report, ordering improvements, and levying the first annual assessment for the Oak Hills Landscaping and Lighting District 1988-02.
452
Services include the following:
Street median and right-of-way landscaping maintenance; Park and street tree maintenance;
Sidewalk repair related to street tree damage; and
Street light maintenance and energy costs.
SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.
STAFF ANALYSIS
State statute mandates an annual renewal of assessments in District 1988-02. The first step is for the City Council to direct the City Engineer to prepare and file an annual report. A preliminary report will be submitted for City Council consideration in June.
Following presentation of the annual Engineer’s Report, the City Council will consider adoption of a resolution of intention to levy and collect assessments within the district. In July, the City Council will hold a public hearing prior to considering confirming the district and levying the annual assessments.
ATTACHMENTS: Resolution
Report Prepared By: Sharon Paz, Administrative Analyst ll 453
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Directing the City Engineer to Prepare )
and File an Annual Report for the Oak Hills ) RESOLUTION NO.24- Landscaping and Lighting Assessment )
District 1988-02 for FY 2024/25 )
WHEREAS, in June 1988, the City Council adopted Resolution No. 88-7322, accepting the Engineer’s Report, ordering improvements, and levying the first annual assessment for the Oak Hills Landscaping and Lighting District 1988-02; and WHEREAS, the funds collected annually support landscaping and lighting operations in the Oak Hills District. Services include street median and right-of-way landscaping maintenance, park and street tree maintenance, sidewalk repair related to street tree damage, street light maintenance and energy costs; and WHEREAS, Section 22622 of the California Streets and Highways Code requires the City Council to annually adopt a resolution generally describing proposed new improvements or any substantial changes in existing improvements to be included for the determination of annual assessments levied for any existing assessment district created under the Landscaping and Lighting Act of 1972; and
WHEREAS, there are no proposed new improvements or any substantial changes in the existing improvements to the Oak Hills Landscaping and Lighting Assessment District 1988-02; and
WHEREAS, Section 22622 further requires that the City Council order the preparation of an Engineer’s Report prior to declaring their intention to levy annual assessments for any district.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby directs John Samuelson, City Engineer, to prepare and file with the City Clerk an annual report in accordance with Section 22622 of the Act.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
________________________
Juan Antonio Banales, Mayor
ATTEST:
_________________________________
Alice E. Evenson, City Clerk
454
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Authorizing the Execution of a Memorandum of Agreement Between the City of Pittsburg and the San Francisco Bay Area Transit District
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
As part of Project 2019 – BART Pedestrian & Bicycle Connectivity Project, the City and the San Francisco Bay Area Transit District (BART) have developed an agreement regarding the parking area located on California Avenue. Terms of the agreement include allowing BART to utilize the Treasury Dedicated Parking Area to collect revenue from the Pittsburg Center BART Station. Staff recommends the City Council adopt the Memorandum of Agreement (MOA) as part of the project.
FISCAL IMPACT
No fiscal impact with this action.
RECOMMENDATION
City Council approve the attached resolution to authorize the City Manager or his designee to execute the MOA.
BACKGROUND
The City and the San Francisco Bay Area Transit District (BART) prepared a MOA to designate the Treasury Dedicated Parking Area to BART. Project 2019 - BART Pedestrian & Bicycle Connectivity, identified in the MOA, is for the construction of pedestrian and bicycle trails and bicycle lanes around the Pittsburg Center BART Station to provide better access.
Once the Project is completed, the City will allow the Treasury Dedicated Parking Area to be utilized by BART.
455
Staff requests that the City Council authorize the City Manager or his designee to authorize the execution of the MOA.
SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.
STAFF ANALYSIS
California Department of Transportation (Caltrans) will be fully relinquishing part of their right-of-way to the City of Pittsburg as part of Project 2019 - BART Pedestrian & Bicycle Connectivity. Part of the relinquishment includes the Treasury Dedicated Parking Area located on California Avenue.
The MOA establishes that upon completion of the Project, the City will continue to maintain and allow BART to utilize the Treasury Dedicated Parking Area located on California Avenue. Adoption of this resolution will authorize the execution of the MOA between BART and the City.
ATTACHMENTS: Resolution
Memorandum of Agreement
Report Prepared By: Khristin Labao, Associate Engineer 456
MEMORANDUM OF AGREEMENT BETWEEN
THE SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
AND
THE CITY OF PITTSBURG
FOR BART
PITTSBURG CENTER STATION
TREASURY DEPARTMENT DEDICATED PARKING AREA
457
This Memorandum of Agreement (“Agreement”) Between the City of Pittsburg, a municipal corporation (“City”), and San Francisco Bay Area Rapid Transit District, a transit district (“BART”) is made and entered into this ___ day of ________, 2024 by and between BART and the City (individually, “Party” or collectively, “Parties”).
RECITALS
A. The BART Pedestrian and Bicycle Connectivity Project consists of a Class I multipurpose path and a buffered Class II pedestrian and bicycle pathway. a. The Class I multipurpose path
is anticipated to be constructed at the
following areas:
i. South side of California Avenue between Railroad Avenue and Harbor Street.
ii. West side of Railroad Avenue between Delta De Anza Regional Trail and State Route 4.
iii. North of adjacent properties on Bliss Avenue between Railroad Avenue and BART Pittsburg Center parking lot, adjacent to State Route 4.
b. The buffered Class II will be constructed on Railroad Avenue from California Avenue to E 17th Street.
B. The City of Pittsburg, with federal/state grants and local funding, intends to fund the construction of the BART Pedestrian & Bicycle Connectivity Project and Treasury Department Parking Area. The dedicated parking area will be visually designated as BART employee reserved parking (Special Sign “BART OFFICIAL PARKING ONLY”).
C. The Treasury Department Dedicated Parking Area is intended to be established on property Caltrans will be fully relinquishing to the City of Pittsburg consisting of a Class I bikeway south of California Avenue between Railroad Avenue and Harbor Street and subjected to a forty (40) foot wide Pacific Gas & Electrical Corporation (“PG&E”) utility easement as shown in Exhibit A once the project has been completed.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
SECTION I: CITY AGREEMENTS
A. The City agrees to allow BART to utilize the Treasury Department Dedicated Parking Area to collect revenue from the Pittsburg Center Station.
458
SECTION II: BART AGREEMENTS
A. The Treasury Dedicated Parking Area shall be used and occupied by BART Treasury Department employees only and exclusively for the purpose of a BART vehicle parking and for no other purpose whatsoever without obtaining prior written consent from the City.
SECTION III: MUTUAL AGREEMENTS
A. This Memorandum of Agreement shall remain in effect for a period of five (5) years from the date of the signed agreement and can be renewed if both parties agree.
B. No amendment, alteration, or variation of the terms of this Agreement shall be valid unless made in writing and signed by the Parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the Parties hereto.
C. Any notice or communications that may be required under this Agreement shall be in writing. They shall be hand delivered as well as electronically delivered to each Party to this Agreement as follows:
CITY BART
John Samuelson, City Engineer Joseph Basuino, Director City of Pittsburg Real Estate & Property
Management
65 Civic Avenue 2150 Webster Street, 9th Fl.
Pittsburg, CA 94565 Oakland, CA 94612
Office Phone: (925) 252-4930 Office Phone: (510) 464-6852 Email: [email protected] Email: [email protected]
D. The Recitals set forth above are incorporated herein as part of the Agreement as if fully set forth herein.
E. Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the matters addressed herein and supersedes any prior negotiations. All prior or contemporaneous agreements, understandings, 459
representation, and statements are merged into this Agreement and are of no further force or effect. Every provision of this Agreement is held invalid, illegal or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.
F. BART shall indemnify, defend, and hold harmless City, its elected representatives, officers, employees, agents, and volunteers from and against any and all claims, demands, actions, losses, liabilities, damages, and costs, including payment of reasonable attorney’s fees, arising out of or resulting from the construction of the BART Pedestrian and Bicycle Connectivity Project, or other duties required by this Agreement, caused in whole or in part by any negligent or intentional act of omission of BART, its officers, directors, agents, employees, subcontractors, volunteers or anyone directly or indirectly acting on behalf of BART, except to the extent that such liability is caused in whole or in part by an negligent or intentional act or omission of the City, its elected representatives, officers, employees, agents, and volunteers, including contractors and any subcontractor, employee, agent, or anyone directly or indirectly acting on their behalf.
G. Upon completion of the Work, the Treasury Department Dedicated Parking Area shall be owned and maintained by the City.
This Agreement is made and entered into as of the date set forth above.
460
CITY OF PITTSBURG
By: _________________________________
John Samuelson, Public Works Director/City Engineer
SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
By: _________________________________
Joseph M. Basuino, Director, Real Estate and Property Management
Approved as to form:
By: _________________________________
Office of General Counsel
.
461
EXHIBIT A
462
463
464
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Authorizing the Execution of a )
Memorandum of Agreement )
Between the City of Pittsburg and ) RESOLUTION NO. 24- The San Francisco Bay Area )
Transit District )
WHEREAS, the City of Pittsburg and the San Francisco Bay Area Transit District (“BART”) prepared a Memorandum of Agreement (MOA) to designate the Treasury Dedicated Parking Area to BART; and
WHEREAS, Project 2019 - BART Pedestrian & Bicycle Connectivity (the “Project”), identified in the MOA, is for the construction of pedestrian and bicycle trails and bicycle lanes around the Pittsburg Center BART Station to provide better access; and WHEREAS, once the Project is completed, the City will allow the Treasury Dedicated Parking Area to be utilized by BART; and
WHEREAS, the City and BART have developed an MOA which defines the roles and responsibilities of each party regarding the Treasury Dedicated Parking Area; and WHEREAS, staff requests that the City Council authorize the City Manager or his designee to authorize the execution of the MOA.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager or his designee be authorized to execute an MOA between the City and BART.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_____________________________
Juan Banales, Mayor
ATTEST:
________________________________
Alice E. Evenson, City Clerk
465
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Accepting Project 3333 – California Theater Marquee and Below Stage Modification Phase I as Complete and Authorizing the City Engineer to File a Notice of Completion
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
Project 3333 - California Theater Marquee and Below Stage Modification Phase I (the “Project”) replaced the existing marquee sign at the California Theater with a new digital marquee sign. This resolution will accept the construction contract as complete and authorize the City Engineer to file a Notice of Completion.
FISCAL IMPACT
The Project was funded by a $400,000 California Natural Resources Agency Grant (Resolution No. 21-14033) for a total approved budget of $400,000.
After payment of all expenditures for staff time, construction, release of retention, and project close out, the total anticipated expenditures for the Project are $151,000. Any unspent funds should remain in the project account for the construction of Phase II of the Project.
An estimated Project Budget Summary is attached.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution accepting the Project as complete and authorizing the City Engineer to file a Notice of Completion.
BACKGROUND
On December 20, 2021, City Council adopted Resolution No. 21-14033 accepting the $400,000 California Natural Resources Agency Grant.
466
On August 24, 2023, the City received proposals for project construction, and Square Signs LLC was the lowest, most qualified bidder with a base bid in the amount of $95,051.75.
On October 2, 2023, City Council adopted Resolution No. 23-14381 accepting the plans and specifications and awarding a construction contract to Square Signs LLC in the amount of $95,051.75.
During construction, there was a total of one contract change order issued in the amount of $48,910.25 for a total contract amount of $143,962.
On March 22, 2024, the contractor reached substantial completion.
SUBCOMMITTEE FINDINGS
This item was not reviewed by a subcommittee.
STAFF ANALYSIS
Phase I of the Project was for the upgrade of an existing theater marquee sign. The new marquee sign improves the aesthetic of the theater façade and draws the attention of citizens passing by. The new marquee sign will increase interest in shows at the California Theater and will increase ticket sales.
City staff is working on a feasibility study for Phase II of the project, which would be the installation of an ADA compliant restroom backstage.
ATTACHMENTS: Resolution
Budget Summary
Report Prepared by: Gabriel Piña, Associate Engineer
467
Budget Summary
Project 3333 — California Theater Marquee Sign
Project Funding
California Natural Resources Agency Grant $400,000
Funding Total $400,000
Project Expenditures:
Design:
(Code 2122) Design $0
Subtotal $0
Miscellaneous:
(Code 1399) Advertising
Subtotal $0
Construction:
(Code 2281) Construction $143,962
Subtotal $143,962
Staff Time:
(Code 1101) Staff Costs $3,519
Subtotal $3,519
Admin:
(Code 2372) Overhead Costs $3,519
Subtotal $3,519
Estimated Total Expenditures $151,000
468
Resolution No. 24- Page 1 of 2 May 6, 2024
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Accepting Project 3333 – California )
Theater Marquee and Below Stage )
Modification Phase I As Complete and ) RESOLUTION NO. 24- Authorizing the City Engineer to File a )
Notice of Completion )
WHEREAS, Project 3333 - California Theater Marquee and Below Stage Modification Phase I (the “Project”) replaced the existing marquee sign at the California Theater with a new digital marquee sign; and
WHEREAS, on December 20, 2021, City Council adopted Resolution No. 21-14033 accepting the $400,000 California Natural Resources Agency Grant; and WHEREAS, on August 24, 2023, the City received proposals for project construction, and Square Signs LLC was the lowest, most qualified bidder with a base bid in the amount of $95,051.75; and
WHEREAS, on October 2, 2023, City Council adopted Resolution No. 23-14381 accepting the plans and specifications and awarding a construction contract to Square Signs LLC in the amount of $95,051.75; and
WHEREAS, there was one contract change order in the amount of $48,910.25 for a total contract amount of $143,962; and
WHEREAS, on March 22, 2024, the contractor reached substantial completion; and WHEREAS, the total anticipated expenditures for the Project, including design, construction, and staff costs are $151,000, and the estimated remaining balance will remain in the project account for the construction of Phase II of the Project.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby accepts the Project as complete and authorizes the City Engineer to file a Notice of Completion and file said document with the Office of the Recorder of the County of Contra Costa, State of California, within 10 days from the date hereof. 469
Resolution No. 24- Page 2 of 2 May 6, 2024 PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
Juan Antonio Banales, Mayor
ATTEST BY:
Alice E. Evenson, City Clerk
470
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Adoption of a City Council Resolution Authorizing the City to Participate in the Green Empowerment Zone for the Northern Waterfront Area of Contra Costa County
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
Assembly Bill (AB) 844 authorized the establishment of the Green Empowerment Zone (GEZ) for the Northern Waterfront area of Contra Costa County. As a member city pursuant to AB 844, the City must adopt a resolution authorizing participation in the GEZ, and shall appoint a representative to a two-year term.
FISCAL IMPACT
There is no fiscal impact associated with this action.
RECOMMENDATION
City Council adopt a resolution authorizing the City to participate in the Green Empowerment Zone for the Northern Waterfront Area of Contra Costa County.
BACKGROUND
AB 844, authored by Assembly Member Timothy Grayson and signed into law in 2021, authorized the establishment of the GEZ for the Northern Waterfront area of Contra Costa County. The geography of the GEZ extends to the territory of the City of Pittsburg, as well as the cities of Antioch, Benicia, Brentwood, Concord, Hercules, Martinez, Oakley, and Vallejo, and the unincorporated areas of Contra Costa County north of State Route 4.
The GEZ Board has met two times to date. The first meeting was held on December 7, 2023. At this meeting, Contra Costa County Supervisor John Gioia, as elected Chair of the Governing Board, bylaws were adopted and the regular meeting schedule was set for the third Friday of every other month at 9:30 am (which may change as needed). The second meeting was held on February 16, 2024, at which time, two Deputy Chairs were elected, and the City of Richmond was added as a participating jurisdiction. 471
SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.
STAFF ANALYSIS
The purpose of the GEZ is to build upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, loan programs, workforce training programs, and private investment in the renewable energy sector.
If authorized, the City would occupy one seat on the GEZ Governing Board for the duration of the GEZ’s existence. Staff would return at a future meeting with an item requesting appointment of a City Councilmember to the two-year term, as well as an alternate.
ATTACHMENTS: Resolution
Report prepared by: Jordan Davis, Director of Community and Economic Development 472
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Authorizing the City to Participate in the Green )
Empowerment Zone for the Northern ) RESOLUTION NO. 24-
Waterfront Area of Contra Costa County )
WHEREAS, Assembly Bill (AB) 844 authorized the establishment of the Green Empowerment Zone for the Northern Waterfront area of Contra Costa County; and WHEREAS, the purpose of the Green Empowerment Zone is to build upon the comparative advantage provided by the regional concentration of highly skilled energy industry workers by prioritizing access to tax incentives, grants, loan programs, workforce training programs, and private investment in the renewable energy sector; and WHEREAS, the geography of the Green Empowerment Zone extends to the territory of the City of Pittsburg, as well as the cities of Antioch, Benicia, Brentwood, Concord, Hercules, Martinez, Oakley, and Vallejo, and the unincorporated areas of Contra Costa County north of State Route 4; and
WHEREAS, Government Code section 7599.100 authorizes these cities to participate in the Green Empowerment Zone upon the adoption of a resolution by the legislative body of each city.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Pittsburg hereby authorizes the City of Pittsburg to participate in the Green Empowerment Zone; and
BE IT FURTHER RESOLVED that the City’s representative and an alternate member shall be appointed as the City’s representative on the Green Empowerment Zone Board of Directors, pursuant to Government Code section 7599.101(b)(1), by a separate minute order.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
________________________________
Juan Antonio Banales, Mayor
ATTEST:
______________________________
Alice E. Evenson, City Clerk
473
OFFICE OF THE CITY MANAGER/EXECUTIVE DIRECTOR
65 Civic Avenue
Pittsburg, CA 94565
TO: Mayor and Council Members
FROM: Garrett Evans, City Manager
SUBJECT: Authorizing City Manager to Execute Consulting Services Agreement with Badawi & Associates
MEETING DATE: May 6, 2024
EXECUTIVE SUMMARY
It is common practice among municipalities to solicit requests for proposals from audit firms every few years for the purpose of fee comparison or acquiring a different accounting and financial perspective, and for the varied audit experience and approach. A rotational policy applied to audit firms can also increase management’s confidence with the City’s internal control practices, financial systems and procedures. To that end, after going through the proposal process and interviews, it is recommended that a contract be executed with Badawi & Associations for the City’s audits for the next three (3) fiscal years with an option for an additional two (2) years.
FISCAL IMPACT
Badawi & Associates come in with proposed a total fee of $257,090 for the Fiscal Years 2023/24 through 2025/26 and $184,55 for the extended option years, fiscal years 2026/27 and 2027/28. Their fees were reasonable compared to the rest of the bids. These total fees are inclusive of the citywide audit, the Transit Review Report (TDA), the audit of Federal Awards audit (Single Audit), Gann Limit Report audit and the three State Controllers Reports. Funds for the audit services will be allocated accordingly in the upcoming budget year 2024/25 operating budget.
RECOMMENDATION
Staff recommends that the City Council approve the services of Badawi & Associates for financial audit and consulting services for the three fiscal years ending June 30, 2024, June 2025 and June 30, 2026, with the option to renew during the next two consecutive years. 474
BACKGROUND
For the past nine years, the audit firm Maze and Associates has provided professional municipal audit services to the City of Pittsburg. It is common practice among municipalities to explore changing audit firms every few years for the purpose of reducing costs or acquiring a different accounting and financial perspective. A rotational policy applied to audit firms can also increase management’s confidence with the City’s internal control practices, financial systems and procedures.
SUBCOMMITTEE FINDINGS
This item was briefly presented during the April 26, 2024 Finance Management Subcommittee.
STAFF ANALYSIS
In January 2024, staff posted on the City’s website requests for proposals (RFP) for audit services, which were due to the City by 5:00 pm on February 29, 2024. Six solicited firms responded with proposals. Out of the six (6), one (1) proposal was postmarked late and thus disqualified. The remaining five (5) responders were evaluated based upon the requirements in the RFP. City staff along with the City Treasurer reviewed and evaluated the proposals and determined that two (2) firms will be asked to participate in the interview process. The panel consisted of the Finance Director and two (2) finance managers using standardized questions.
Based on the panel members evaluations, Badawi & Associates had the best overall presentation and was determined to be the most qualified applicant, along with their offer was reasonable priced as compared to the rest of the proposals with a cost savings of $140,105 as compared to the highest bidder for the first three (3) fiscal years.
Badawi & Associates is a local audit firm that is located in Berkely, California. Badawi & Associates has over 25 years of experience in auditing governmental agencies such as cities, special district, and authorities.
Staff recommends the City Council approve the attached resolution and award the contract to Badawi & Associates.
ATTACHMENTS: Resolution
Consulting Services Agreement between the City of Pittsburg and Badawi & Associates
Report Prepared By: Laura Mendez, Finance Reporting Manager Paul Rodrigues, Finance Director
475
BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter of:
Authorizing City Manager to Execute )
Consulting Services Agreement with ) RESOLUTION NO. 24- Badawi & Associates )
WHEREAS, the contract with Maze and Associates the City’s financial auditors expired after the Fiscal Year 2022/23 audit was completed and issued; and WHEREAS, on January 22, 2024, staff issued a Request for Proposals (RFP) for professional auditing services with a deadline of February 29, 2024; and WHEREAS, six (6) responsive service providers submitted proposals to the City for consideration, one (1) firm was disqualified due to late postmark; and WHEREAS, five firms (5) were elevated based on the criteria in the RFP and two (2) firms were asked to participate in an interview process; and WHEREAS, after careful review of all the proposals, staff recommend the City Council award the contract to Badawi & Associates for a period of three (3) years with two (2) one-year options to extend the contract.
NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager to execute the agreement for the Financial Auditing Services.
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 6th day of May 2024, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
_____________________________
Juan Antonio Banales, Mayor
ATTEST:
______________________________
Alice E. Evenson, City Clerk
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CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF PITTSBURG AND
BADAWI & ASSOCIATES
THIS Agreement (“Agreement”) for consulting services is made by and between the City of Pittsburg (“City”) and Badawi & Associates, a California (“Consultant”) (together referred to as the “Parties”) as of May 6, 2024 (the “Effective Date”).
Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A, and incorporated herein, at the time and place and in the manner specified therein.
1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 2027 or the date the Consultant completes the services specified in Exhibit A, whichever occurs first, unless the term of the Agreement is otherwise terminated or extended, as referenced herein.
1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.
1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, requests in writing the reassignment of any such persons to ensure Consultant performs services in accordance with the Standard of Performance, Consultant shall, immediately upon receiving City’s request, reassign such persons.
1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided herein above and to satisfy Consultant’s obligations hereunder.
Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed Four Hundred Forty Thousand and Six Hundred Forty Five Dollars $(441,645), as set forth in Exhibit B, attached hereto and incorporated herein for services to be performed and reimbursable expenses incurred under this Agreement. This dollar amount is not a guarantee that the City will pay that full amount to the Consultant, but is merely a limit of potential City expenditures under this Agreement. 477
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Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.
2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date.
Invoices shall contain the following information, unless waived by the City Manager, or his or her designee:
Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
The beginning and ending dates of the billing period; A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion; At City’s option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;
The Consultant’s signature.
2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall pay undisputed invoices that comply with the above requirements within 30 days from the receipt of the invoice.
2.3 Final Payment. Consultant shall submit its final invoice within 60 days of completing its services. Consultant’s failure to submit its final invoice within this 60 day period shall constitute Consultant’s waiver of any further billings to, or payments from, City.
2.4 Reimbursable Expenses. Reimbursable expenses, if any, are specified in Exhibit B and included in the total compensation referenced in Section 478
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2. Expenses not listed in Exhibit B are not chargeable to, or reimbursable by, City.
2.5 Payment of Taxes. Consultant is solely responsible for the payment of all federal, state and local taxes, including employment taxes, incurred under this Agreement.
2.6 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a written authorization from the City Manager, or his or her designee.
Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement Section 4. INSURANCE REQUIREMENTS. Before beginning any services under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance specified herein and maintain that insurance throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant’s bid or proposal. Consultant shall be fully responsible for the acts and omissions of its subcontractors or other agents.
4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant in the amount required by applicable law. The requirement to maintain Statutory Workers’ Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Consultant is a sole proprietor and does not have any employees and will not have any employees during the term of this Agreement.
4.2 Commercial General and Automobile Liability Insurance.
4.2.1 General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than $2,000,000 per occurrence and $4,000,000 aggregate, combined single limit coverage for risks associated with the work contemplated by this Agreement.
4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis. 479
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Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (most recent edition) covering any auto (Code 1), or if Consultant has no owned autos, hired (code 8) and non-owned autos (Code 9). No endorsement shall be attached limiting the coverage.
4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The Commercial General and Automobile Liability Insurance shall cover on an occurrence basis.
b. City, its officers, officials, employees, agents, and volunteers shall be covered as additional insureds for liability arising out of work or operations on behalf of the Consultant, including materials, parts, or equipment furnished in connection with such work or operations; or automobiles owned, leased,
hired, or borrowed by the Consultant. Coverage can be
provided in the form of an endorsement to the Consultant’s insurance at least as broad as CG 20 10 11 85, or both CG 20 10 10 01 and CG 20 37 10 01.
c. For any claims related to this Agreement or the work hereunder, the Consultant’s insurance covered shall be
primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the
Consultant’s insurance and non-contributing.
d. The policy shall cover inter-insured suits and include a “separation of Insureds” or “severability” clause which treats each insured separately.
e. Consultant agrees to give at least 30 days prior written notice to City before coverage is canceled or modified as to scope or amount.
4.3 Professional Liability Insurance.
4.3.1 General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than 480
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$1,000,000 per occurrence or claim covering the Consultant’s errors and omissions.
4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement or the work.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must purchase an extended period coverage for a minimum of five (5) years after completion of work under this Agreement. d. A copy of the claim reporting requirements must be
submitted to the City for review prior to the commencement of any work under this Agreement.
4.4 All Policies Requirements.
4.4.1 Submittal Requirements. Consultant shall submit the following to City prior to beginning services:
a. Certificate of Liability Insurance in the amounts specified in this Agreement; and
b. Additional Insured Endorsement as required for the General Commercial and Automobile Liability Polices.
4.4.2 Acceptability of Insurers. All insurance required by this Agreement is to be placed with insurers with a Bests' rating of no less than A:VII.
4.4.3 Deductibles and Self-Insured Retentions. Insurance obtained by the Consultant shall have a self-insured retention or deductible of no more than $100,000.
4.4.4 Wasting Policies. No policy required herein shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense). 481
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4.4.5 Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from Consultant by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant, its employees, agents, and subcontractors.
4.4.6 Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are covered as additional insured on all coverages.
4.4.7 Excess Insurance. If Consultant maintains higher insurance limits than the minimums specified herein, City shall be entitled to coverage for the higher limits maintained by the Consultant.
4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: 1) obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; 2) order Consultant to stop work under this Agreement and withhold any payment that becomes due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof; and/or 3) terminate this Agreement.
Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.
5.1 General Requirement. To the fullest extent permitted by law, Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers (collectively, “Indemnitees”) from and against any and all liability, loss, damage, claims, expenses, and costs, including without limitation, attorney’s fees, costs and fees of litigation, (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the services under this Agreement, or its failure to comply with any of its obligations contained in this Agreement, or its failure to comply with any 482
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applicable law or regulation, except such Liability caused by the sole negligence or willful misconduct of City.
Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damage or claims for damages whether or not such insurance policies shall be determined to apply.
5.2 PERS Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.
Section 6. STATUS OF CONSULTANT.
6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City.
6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.
Section 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. Consultant shall also, to the extent required by the California Labor Code, pay not less than the latest prevailing wage rates as determined by the California Department of Industrial Relations.
7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have, and 483
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will maintain at their sole cost and expense, all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City.
7.4 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, genetic information, marital status, sex, sexual orientation, gender or gender identity, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.
Section 8. TERMINATION AND MODIFICATION.
8.1 Termination. Upon ten days’ prior written notice, City may cancel this Agreement at any time and without cause upon such written notification to Consultant. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.
8.2 Amendments. The parties may amend this Agreement only by a writing signed by the parties hereto.
8.3 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.
Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the City Manager, or his or her designee. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the 484
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subcontractors noted in the proposal, without prior written approval of the City Manager, or his or her designee.
8.4 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant, including but not limited to the provisions of Section 5, shall survive the termination of this Agreement.
8.5 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:
8.5.1 Immediately terminate the Agreement;
8.5.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;
8.5.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or
8.5.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.
8.5.5 The remedies mentioned in this Agreement are not exclusive of any other right, power or remedy permitted by law. The City’s failure or delay in exercising any remedy shall not constitute a waiver of such remedy or preclude the further exercise of City’s rights.
Section 9. KEEPING AND STATUS OF RECORDS.
9.1 Records Created as Part of Consultant’s Performance. All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City.
Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement, and the City may use, reuse or otherwise dispose of the documents without Consultant’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily 485
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suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential drafts and will not be released to third parties by Consultant without prior written approval of City.
9.2 Consultant’s Books and Records. Consultant shall maintain any and all records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Pursuant to Government Code Section 8546.7, the Agreement may be subject to the examination and audit of the State Auditor for a period of 3 years after final payment under the Agreement.
Section 10 MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.
10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in Contra Costa County or in the United States District Court for the Northern District of California.
10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.
10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.
10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.
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10.6 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.
Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.
10.7 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.
10.8 Notices. Any notice, demand, request, consent or approval that either party is required to give the other pursuant to this Agreement, shall be in writing and may be given by either (i) personal service, or (ii) certified United States mail, postage prepaid, return receipt requested. Notice shall be effective upon personal delivery or delivery to the addresses specified below, as reflected on the receipt of delivery or return receipt, as applicable.
Consultant : Badawi & Associates
Certified Public Accountants
2855 Telegraph Avenue, Suite 312
Berkely, CA 94705
Attn: Ahmed Badawi, CPA
City: City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
ATTN: City Manager
10.9 Professional Seal. Where applicable in the determination of the City Manager, or his or her designee, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility.”
10.10 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A and B represents the entire and integrated agreement between City and Consultant and supersedes all 487
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prior negotiations, representations, or agreements, either written or oral.
To the extent there are any inconsistences between this Agreement, the Exhibits, and Consultant’s proposal, the Agreement shall control To the extent there are any inconsistences between the Exhibits and the Consultant’s Proposal, the Exhibits shall control.
Exhibit A Scope of Services
Exhibit B Compensation Schedule
10.11 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.12 Construction of Agreement. Each party hereto has had an equivalent opportunity to participate in the drafting of the agreement and/or to consult with legal counsel. Therefore, the usual construction of an agreement against the drafting party shall not apply hereto.
10.13 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the parties hereto, with no intent to benefit any third parties.
The Parties have executed this Agreement as of the Effective Date.
CITY OF PITTSBURG CONSULTANT
____________________________ ______________________________ Garrett Evans, City Manager Ahmed Badawi, CPA
Approved as to Form:
____________________________
Donna Mooney, City Attorney
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EXHIBIT A
SCOPE OF SERVICES
The City of Pittsburg requires Financial Statements for the City of Pittsburg to be prepared by the independent auditor and be fully compliant with current GASB requirements for each year of the agreement with the City.
The selected independent auditor will be required to perform the following tasks for each fiscal year:
The audit firm shall perform an audit of all of the funds of the City of Pittsburg. The City’s Financial Statement shall be prepared and processed by the audit firm. The audit firm shall render their auditor’s report on the basic financial statement which will include both Government-wide Financial Statements and Fund Financial Statements. The audit firm shall also apply limited audit procedures to Management’s Discussion and Analysis (MD&A) and required supplementary information pertaining to the General Fund and each major fund of the City.
The audit firm shall perform a single audit on the expenditures of federal grants in accordance with OMB Circular A-133.
The audit firm shall perform agreed-upon auditing procedures pertaining to the City’s GANN Limit (Appropriation Limit) and render a letter annually to the City regarding compliance.
The audit firm shall issue a separate “management letter” that includes recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be non-reportable conditions.
Management letters shall be addressed to the City Manager.
In addition, the audit firm shall prepare Financial Statements for the following:
ACFR and Management Letter (including report preparation), including Successor Agency and Housing Activities included in the ACFR
Transportation Development Act Report
Single Audit (3 Programs as directed by City)
GANN Limit Review (Proposition 4 Appropriations Limit Increment, as modified by Proposition 111)
Annual SCO Cities Report and other SCO reports as necessary (up to three additional reports)
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The audit firm shall prepare and edited all required reports. The audit firm will also be responsible for the printing and binding of at least 25 copies of each of the aforementioned reports. In addition, the audit firm will provide an electronic version and a camera ready pdf version of each report.
B. Auditing Standards
The audit shall be performed in accordance with all applicable and generally accepted auditing standards including but not limited to:
1. Generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants;
2. The standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States;
3. The provisions of the Single Audit Act as amended; and
4. The provisions of U. S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and Non-Profit Organizations.
C. Working Paper Retention
All working papers and reports must be retained at the auditor's expense for a minimum of seven (7) years, unless the firm is notified in writing by the City of a longer retention period. The auditor shall make working papers available to the City or to other government agencies included in the audit of federal grants upon request from the City. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.
D. Irregularities and Illegal Acts
Auditors shall make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties:
City Manager; City Attorney; and the Assistant City Manager. 490
Consulting Services Agreement between 05/06/2024
City of Pittsburg and Badawi & Associates Page 3 of 4
EXHIBIT B
COMPENSATION SCHEDULE
Service 2023-24 2024-25 2025-26 Optional
Year
2026-27
Optional
Year
2027-28
City Audit and
Related Reports
$87,825 $87,640 $89,220 $91,060 $91,940
Single Audit Act
Report
$10,625 $10,770 $10,915 $10,685 $11,015
Appropriations Limit
Review
$950 $1,005 $1,050 $1,100 $1,145
TDA Report $3,075 $3,280 $3,290 $3,445 $3,595
City’s State
Controllers Report
$6,800 $6,930 $6,860 $7,180 $7,345
City of Pittsburg
Financing Authority
State Controllers
Report
$3,725 $3,840 $3,805 $3,590 $3,750
Pittsburg Power
State Controllers
Report
$3,725 $3,840 $3,840 $3,590 $3,750
Total $116,725 $117,305 $118,965 $120,650 $122,540
Discount ($33,565) ($31,635) ($30,705) ($29,735) ($28,900) Total for Fiscal Year
(not-to exceed)
$83,160 $85,670 $88,260 $90,915 $93,640
491
Consulting Services Agreement between 05/06/2024
City of Pittsburg and Badawi & Associates Page 4 of 4
CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
CONSULTANT
By:
Title:
2784980.1
492