HomeMy WebLinkAbout2016 CON Pun Group - Auditing Services - Amendment #1FIRST AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL
AND THE PUN GROUP, LLP
(FORMERLY PUN & MCGEADY, LLP)
THIS FIRST AMENDMENT TO THE AGREEMENT is enter into this 19th day of April,
2016, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"),
and THE PUN GROUP, LLP, (formerly PUN & MCGEADY, LLP) (the "CONSULTANT"), an
independent auditing firm.
RECITALS
WHEREAS, on July 2, 2013, the City Council adopted Resolution No. 2013-110,
authorizing the CITY to enter into a three-year Agreement with Pun & McGeady, LLP (the
"Agreement") for the period of July 9, 2013 through June 30, 2016, wherein Pun & McGeady,
LLP agreed to provide independent auditing services for the fiscal years ending June 30, 2013
thru June 30, 2015, for an amount not to exceed $60,000 per year for a total agreement amount
of $180,000 with an option for the City to extend the term of the Agreement under the same
terms and conditions for up to two (2) additional one-year terms beyond the initial contract
expiration date; and
WHEREAS, effective April 1, 2016, the Pun & McGeady's legal business name was
changed from "Pun & McGeady, LLP" to "The Pun Group, LLP" to reflect the
CONSULTANT's expansion and service to a variety of industries; and
WHEREAS, the CITY and the CONSULTANT desire to amend the Agreement to
extend the term for a one-year period ending June 30, 2017, to provide independent auditing
services for Fiscal Year 2016, as set forth in the attached Exhibit "A", for the do not exceed
amount of $63,000, for a total do not exceed agreement amount of $243,000.
AGREEMENT
NOW, THEREFORE, the CITY and the CONSULTANT agree as follows:
1. The Agreement dated July 2, 2013, is amended as of April 19, 2016 to change the
name of the Consultant from Pun & McGeady, LLP, to The Pun Group, LLP; and
2. This Amendment extends the term of the Agreement for a one-year period ending
June 30, 2017, to provide auditing services for the fiscal year ending June 30,
2016, for a not to exceed amount of $63,000, for a total Agreement do not exceed
amount of $243,000; and
3. The CITY and the CONSULTANT agree that each and every term and provision
of the Agreement dated July 2, 2013, not specifically amended, shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment on the
date and year first above written.
CITY OF NATIONAL CITY
By:
THE PUN GROUP, LLP
By: -N. I �--
Morrison, Mayor (Name)
APPROVED AS TO FORM:
audia
City Atto
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(Print)
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(Title)
EXHIBIT A
OPTIONAL YEARS
Services FY 13 FY 14 FY 15 FY 16 FY 17
City Audit, including CAFR $30,000 $30,000 $30,000 $31,500 $33,075
Single Audit 8,000 8,000 8,000 8,400 8,820
GANN Limit No Charge No Charge No Charge No Charge No Charge
Annual State Controllers Report 4,500 4,500 4,500 4,725 4,961
Financial and Compliance Audit of the CDC, 7,000 7,000 7,000 7,350 7,718
including Kimball Towers
Separate HUD -required A-133 single audit of 7,000 7,000 7,000 7,350 7,718
Morgan Towers
Commission A-133 single audit of federal 3,500 3,500 3,500 3,675 3,859
grants allocable to Housing Choice
REAC electronic submission to HUD and No charge No charge No charge No Charge No Charge
related attestations
Total not to exceed
$60,000 $60,000 $60,000 $63,000 $66,150
Included in the above costs are the following services, in accordance with the Request for Proposal ("RFP") for Audit Services:
■ serve as a resource and provide training to professional accounting staff on preparation of financial statements, best practices in
conformance with applicable laws, and governmental accountingstandards;
• prepare a management letter to the City Manager containing comments and recommendations regarding the auditor's evaluation
of the City's system of internal controls and accountingprocedures;
■ make an immediate report to the Audit Committee of the City of National City, City Council, City Manager, City Attorney, and
Director of Finance of all indications of irregularities or illegal acts of which they become aware, if any.
RESOLUTION NO. 2016 — 52
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
ACCEPTING THE NAME CHANGE OF PUN & MCGEADY, LLP TO
THE PUN GROUP, LLP, AND AUTHORIZING THE MAYOR TO EXECUTE
THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN
THE CITY OF NATIONAL CITY AND THE PUN GROUP, LLP, TO EXTEND
THE TERM OF THE AGREEMENT FOR ONE YEAR, ENDING JUNE 30, 2017,
FOR THE DO NOT EXCEED AMOUNT OF $63,000, FOR A TOTAL
DO NOT EXCEED AMOUNT OF $243,000, TO PROVIDE AUDITING
SERVICES FOR FISCAL YEAR ENDING JUNE 30, 2016
WHEREAS, on July 2, 2013, the City Council adopted Resolution No. 2013-110,
authorizing the CITY to enter into a three-year Agreement with Pun & McGeady, LLP for the
period of July 9, 2013 through June 30, 2016, wherein Pun & McGeady, LLP agreed to provide
independent auditing services for the fiscal years ending June 30, 2013 thru June 30, 2015, for
an amount not to exceed $60,000 per year for a total agreement amount of $180,000 with an
option for the City to extend the term of the Agreement under the same terms and conditions for
up to two (2) additional one-year terms beyond the initial contract expiration date; and
WHEREAS, effective April 1, 2016, the Pun & McGeady's legal business name
was changed from "Pun & McGeady, LLP" to "The Pun Group, LLP" to reflect their expansion
and service to a variety of industries; and
WHEREAS, the City and The Pun Group, LLP, desire to amend the Agreement
to extend the term for a one-year period ending June 30, 2017, to provide independent auditing
services for Fiscal Year 2016 for the do not exceed amount of $63,000, for a total do not exceed
Agreement amount of $243,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby accepts the name change of Pun & McGeady, LLP, to The Pun Group,
LLP, and authorizing the Mayor to execute the First Amendment to the Agreement between the
City of National City and The Pun Group to extend the term of the Agreement for one year,
ending June 30, 2017, to provide independent auditing services for Fiscal Year 2016 for the not
to exceed amount of $63,000, for a total not to exceed amount of $243,000.
PASSED and ADOPTED this 19th day of April, 20
on Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, Ci Clerk
_de f
dia -ci a Silv
City Attor
Passed and adopted by the Council of the City of National City, California, on April 19,
2016 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
MICHAEL R. DALLA
City Clerk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2016-52 of the City of National City, California, passed and adopted
by the Council of said City on April 19, 2016.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA c a 0' S - 2 i
COUNCIL AGENDA STATEMENT
MEETING DATE: April 19, 2016
AGENDA ITEM NO. 6
ITEM TITLE:
Resolution of the City Council of the City of National City accepting the name change of Pun &
McGeady, LLP to The Pun Group, LLP, and authorizing the Mayor to execute the First Amendment to
the Agreement by and between the City of National City and The Pun Group, LLP, to extend the term of
the Agreement for one year, ending June 30, 2017, for the do not exceed amount of $63,000, for a total
do not exceed amount of $243,000, to provide auditing services for fiscal year ending June 30, 2016.
PREPARED BY: Javier Carcamo, Financial Services Officer DEPARTMENT: Finaiye, �,
PHONE: 619-336-4331 APPROVED BY: UN
EXPLANATION:
On July 2, 2013, the City Council of the City of National City approved an agreement between the City of
National City and Pun & McGeady, LLP to perform independent auditing services for the City for the
period of July 9, 2013 through June 30, 2016, corresponding to auditing services provided for the fiscal
year ending June 30, 2013 to June 30, 2015, with an option for the City to extend the agreement under
the same terms and conditions for up to two (2) additional years beyond the initial contract expiration
date.
Pun & McGeady, LLP changed its firm's legal business name to "The Pun Group, LLP," effective April 1,
2016 to reflect the CONSULTANT's expansion and service to a variety of industries.
Staff now seeks approval to exercise the first one (1) year option extension. This Amendment would extend
the Agreement for a one-year term ending June 30, 2017 to provide auditing services for fiscal year ending
lune 30, 2016.
FINANCIAL STATEMENT:
ACCOUNT NO.
001-417-045-201-0000
502-419-462-201-0000
$44,625
$ 3,675
Morgan & Kimball Enterprise Funds $14,700
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, not subject to environmental review.
APPROVED:kV/C". Finance
APPROVED: MIS
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the resolution, authorizing the Mayor to execute the First Amendment to the Agreement by and
between the City of National City and Pun & McGeady, LLP and to change the consultant's legal
business name.
BOARD / COMMISSION RECOMMENDATION:
NA
ATTACHMENTS:
. Contract Amendment
2. Name Change Letter
3. Resolution
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FIRST AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL
AND THE PUN GROUP, LLP
(FORMERLY PUN & MCGEADY, LLP)
THIS FIRST AMENDMENT TO THE AGREEMENT is enter into this 19`'' day of April,
2016, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY")
and THE PUN GROUP, LLP, (formerly PUN & MCGEADY, LLP) (the "CONSULTANT"), an
independent auditing firm.
RECITALS
WHEREAS, on July 2, 2013, the City Council adopted Resolution No. 2013-110,
authorizing the CITY to enter into a three-year Agreement with Pun & McGeady, LLP (the
"Agreement") for the period of July 9, 2013 through June 30, 2016, wherein Pun & McGeady,
LLP agreed to provide independent auditing services for the fiscal years ending June 30, 2013
thru June 30, 2015, for an amount not to exceed $60,000 per year for a total agreement amount
of $180,000 with an option for the City to extend the tern of the Agreement under the same
terms and conditions for up to two (2) additional one-year tens beyond the initial contract
expiration date; and
WHEREAS, effective April 1, 2016, the Pun & McGeady's legal business name was
changed from "Pun & McGeady, LLP" to "The Pun Group, LLP" to reflect the
CONSULTANT's expansion and service to a variety of industries; and
WHEREAS, the CITY and the CONSULTANT desire to amend the Agreement to
extend the term for a one-year period ending June 30, 2017, to provide independent auditing
services for Fiscal.Year 2016, as set forth in the attached Exhibit "A", for the do not exceed
amount of $63,000, for a total do not exceed agreement amount of $243,000.
AGREEMENT
NOW, THEREFORE, the CITY and the CONSULTANT agree as follows:
1. The Agreement dated July 2, 2013, is amended as of April 19, 2016 to change the
name of the Consultant from Pun & McGeady, LLP, to The Pun Group, LLP; and
2. This Amendment extends the term of the Agreement for a one-year period ending
June 30, 2017, to provide auditing services for the fiscal year ending June 30,
2016, for a not to exceed amount of $63,000, for a total Agreement do not exceed
amount of $243,000; and
3. The CITY and the CONSULTANT agree that each and every term and provision
of the Agreement dated July 2, 2013, not specifically amended, shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment on the
date and year first above written.
CITY OF NATIONAL CITY THE PUN GROUP, LLP
By: By:
Ron Morrison, Mayor (Name)
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
(Print)
(Title)
Services
City Audit, including CAFR
Single Audit
GANN Limit
Annual State Controllers Report
EXHIBIT A
OPTIONAL YEARS
FY13 FY14 FY15 FY16 FY17
$30,000 $30,000 $30,000 $31,500 $33,075
8,000 8,000 8,000 8,400 8,820
No Charge No Charge No Charge No Charge No Charge
4,500 4,500 4.500 4,725 4,961
Financial and Compliance Audit of the CDC, 7,000 7,000 7.000 7.350 7,718
including Kimball Towers
Separate HUD -required A-133 single audit of 7,000 7,000 7.000 7,350 7,718
Morgan Towers
Commission A-133 single audit of federal 3,500 3,500 3,500 3,675 3,859
grants allocable to Housing Choice
REAC electronic submission to HUD and No charge No charge No charge No Charge No Charge
related attestations
Total not to exceed $60.000
$60.000 $60.000
$63,000 $66,150
Included in the above costs are the following services, in accordance with the Request for Proposal ("RFP") for Audit Services:
• serve as a resource and provide training to professional accounting staff on preparation of financial statements, best practices in
conformance with applicable laws, and governmental accounting standards;
• prepare a management letter to the City Manager containing comments and recommendations regarding the auditor's evaluation
of the City's system of internal controls and accounting procedures;
• make an immediate report to the Audit Committee of the City of National City, City Council, City Manager, City Attorney, and
Director of Finance of all indications of irregularities or illegal acts of which they become aware, if any.
THE
PUN GROUP
ACCOUNTANTS & ADVISORS
March 18, 2016
City of National City
Mark Roberts
Director of Finance
1243 National City Boulevard
National City, CA 91950-4301
RE: Name Change
Dear Mark:
We are excited to share some important news about our company's evolution and how the City of
National City may benefit.
Effective April 1, 2016, Pun & McGeady LLP will become The Pun Group, LLP to better align with our
expansion to include a group of talented partners to serve a variety of industries. As of today, we have 5
Partners (Kenneth H. Pun, Gary M. Caporicci, Jack F. Georger, Paul Kaymark, and Lisa Lombard) and
over 30 other professionals serving the Governmental Sector in dealing with the ongoing challenges
includes implementation of New GASB pronouncements, assisting in increasing operating efficiencies,
recommending in improvement of internal controls.
Please let me know if you need further infonnation.
Sincerely,
The Pun Group, LLP
(Formerly Pun & McGeady LLP)
Kenneth H. Pun
Managing Partner
200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 *Toll Free: 855-276-4272 • Fax: 949-777-8850
www.pungroup.com
RESOLUTION NO. 2016 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
ACCEPTING THE NAME CHANGE OF PUN & MCGEADY, LLP TO
THE PUN GROUP, LLP, AND AUTHORIZING THE MAYOR TO EXECUTE
THE FIRST AMENDMENT TO THE AGREEMENT BY AND BETWEEN
THE CITY OF NATIONAL CITY AND THE PUN GROUP, LLP, TO EXTEND
THE TERM OF THE AGREEMENT FOR ONE YEAR, ENDING JUNE 30, 2017,
FOR THE DO NOT EXCEED AMOUNT OF $63,000, FOR A TOTAL
DO NOT EXCEED AMOUNT OF $243,000, TO PROVIDE AUDITING
SERVICES FOR FISCAL YEAR ENDING JUNE 30, 2016
WHEREAS, on July 2, 2013, the City Council adopted Resolution No. 2013-110,
authorizing the CITY to enter into a three-year Agreement with Pun & McGeady, LLP for the
period of July 9, 2013 through June 30, 2016, wherein Pun & McGeady, LLP agreed to provide
independent auditing services for the fiscal years ending June 30, 2013 thru June 30, 2015, for
an amount not to exceed $60,000 per year for a total agreement amount of $180,000 with an
option for the City to extend the term of the Agreement under the same terms and conditions for
up to two (2) additional one-year terms beyond the initial contract expiration date; and
WHEREAS, effective April 1, 2016, the Pun & McGeady's legal business name
was changed from "Pun & McGeady, LLP" to "The Pun Group, LLP" to reflect their expansion
and service to a variety of industries; and
WHEREAS, the City and The Pun Group, LLP, desire to amend the Agreement
to extend the term for a one-year period ending June 30, 2017, to provide independent auditing
services for Fiscal Year 2016 for the do not exceed amount of $63,000, for a total do not exceed
Agreement amount of $243,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby accepts the name change of Pun & McGeady, LLP, to The Pun Group,
LLP, and authorizing the Mayor to execute the First Amendment to the Agreement between the
City of National City and The Pun Group to extend the term of the Agreement for one year,
ending June 30, 2017, to provide independent auditing services for Fiscal Year 2016 for the not
to exceed amount of $63,000, for a total not to exceed amount of $243,000.
PASSED and ADOPTED this 19th day of April, 2016.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950-4397
619-336-4228 phone / 619-336-4229 fax
Michael R. Dalla, CMC - City Clerk
THE PUN GROUP
Amendment #1
Auditing Services
Javier Carcamo (Finance) Forwarded
Copy of Agreement to The Pun Group