HomeMy WebLinkAbout2017 CON Pun Group - Auditing Services - Amendment #2SECOND AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL
AND THE PUN GROUP, LLP
THIS SECOND AMENDMENT TO THE AGREEMENT is entered into this 20th day of
June, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the
"CITY"), and THE PUN GROUP, 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 19, 2016, the City Council adopted Resolution No. 2016-52,
authorizing the CITY to accept the CONSULTANT's business name change to "The Pun Group,
LLP" and to execute the First Amendment to the Agreement to extend the term for a one-year
period ending June 30, 2017, to provide independent auditing services for the fiscal year ending
June 30, 2016, as set forth in the attached Exhibit "A", for the not -to -exceed amount of $63,000
and a total not -to -exceed agreement amount of $243,000.
WHEREAS, the CITY and the CONSULTANT desire to amend the Agreement to extend
the term for a one-year period ending June 30, 2018, to provide independent auditing services for
the fiscal year ending June 30, 2017, as set forth in the attached Exhibit "A", for the not -to -exceed
amount of $66,150 and a total not -to -exceed agreement amount of $309,150.
AGREEMENT
NOW, THEREFORE, the CITY and the CONSULTANT agree as follows:
1. This Amendment extends the term of the Agreement for a one-year period ending
June 30, 2018, to provide independent auditing services for the fiscal year ending
June 30, 2017, for a not -to -exceed amount of $66,150 and a total agreement not -to -
exceed amount of $309,150; and
2. 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 Second Amendment on
the date and year first above written.
CITY OF NATI NAL CITY THE PUN GROUP, LLP
By: �._— By: l�•H• �L'
II ----
on Morrison, Mayor (Name)
"IE7fs t> . ,u•J
(Print)
hy4444/a6 P.4 Ai.,1GA--
(Title)
APPROVED AS TO FORM:
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 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 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. 2017 — 109
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE SECOND 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, 2018, FOR THE NOT -TO -EXCEED
AMOUNT OF $66,150 AND A TOTAL NOT -TO -EXCEED AGREEMENT
AMOUNT OF $309,150, TO PROVIDE AUDITING SERVICES
FOR THE FISCAL YEAR ENDING JUNE 30, 2017
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, from 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 through 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 19, 2016, the City Council adopted Resolution No.
2016-52, authorizing the City to accept Pun & McGeady, LLP's business name change to "The
Pun Group, LLP" and to execute the First Amendment to the Agreement to extend the term for a
one-year period ending June 30, 2017, to provide independent auditing services for the fiscal
year ending June 30, 2016, for the not -to -exceed amount of $63,000 and a total not -to -exceed
Agreement amount of $243,000; and
WHEREAS, the City and The Pun Group, LLP, desire to enter into a Second
Amendment to the Agreement to extend the term for a one-year period ending June 30, 2018, to
provide independent auditing services for the fiscal year ending June 30, 2017 for the not -to -
exceed amount of $66,150 and a total not -to -exceed Agreement amount of $309,150.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement
between the City of National City and The Pun Group, LLP, to extend the term of the Agreement
for one year, ending June 30, 2018, to provide independent auditing services for the fiscal year
ending June 30, 2017 for the not -to -exceed amount of $66,150 and a total not -to -exceed
Agreement amount of $309,150.
PASSED and ADOPTED this 20th day of June,
on Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
MicaeI R. Dalla, ity Clerk
YI
AeArAY
A ngil' -+o is- ones
City A or' ey
Passed and adopted by the Council of the City of National City, California, on June 20,
2017 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
City City National City, California
rk of the i
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2017-109 of the City of National City, California, passed and
adopted by the Council of said City on June 20, 2017.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
C zap-3j
MEETING DATE: June 20, 2017 AGENDA ITEM NO. 9
TEM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute the Second
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, 2018, for the not -to -exceed amount of
$66,150 and a total not -to -exceed agreement amount of $309,150, to provide auditing services for the
fiscal year ending June 30, 2017.
'REPARED BY: Javier Carcamo, Financial Services Officer DEPARTMENT: Finance
PHONE: 619-336-4331 APPROVED BY: L11144 , 'a
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
years 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.
On April 19, 2016, The City Council of the City of National City approved the First Amendment to the
Agreement to accept Pun & McGeady, LLP's business name change to "The Pun Group, LLP" and to
exercise the first one (1) year option extension.
Staff now seeks approval to exercise the second one (1) year option extension. This Amendment would
extend the Agreement for a one-year term ending June 30, 2018 for auditing services for the fiscal year
,nding June 30, 2017.
ILINANCIAL STATEMENT:
APPROVED: `yl',r ,/ _. Finance
ACCOUNT NO. APPROVED: MIS
001-417-045-201-0000 $46,855
502-419-462-201-0000 $ 3,859
Morgan & Kimball Enterprise Funds $15,436
ENVIRONMENTAL REVIEW:
This is not a project and, therefore, not subject to environmental review.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the resolution, authorizing the Mayor to execute the Second Amendment to the Agreement by and between
the City of National City and Pun Group, LLP, to extend the term of the Agreement for one year, ending June 30,
2018, for the not -to -exceed amount of $66,150 and a total not -to -exceed agreement amount of $309,150.
BOARD / COMMISSION RECOMMENDATION:
NA
ATTACHMENTS:
. Contract Amendment
2. Resolution
R�cor,v�ro moo. rdo‘ root,
SECOND AMENDMENT TO THE AGREEMENT
BY AND BETWEEN THE CITY OF NATIONAL
AND THE PUN GROUP, LLP
THIS SECOND AMENDMENT TO THE AGREEMENT is entered into this 20t1i day of
June, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the
"CITY"), and THE PUN GROUP, 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 19, 2016, the City Council adopted Resolution No. 2016-52,
authorizing the CITY to accept the CONSULTANT's business name change to "The Pun Group,
LLP" and to execute the First Amendment to the Agreement to extend the term for a one-year
period ending June 30, 2017, to provide independent auditing services for the fiscal year ending
June 30, 2016, as set forth in the attached Exhibit "A", for the not -to -exceed amount of $63,000
and a total not -to -exceed agreement amount of $243,000.
WHEREAS, the CITY and the CONSULTANT desire to amend the Agreement to extend
the term for a one-year period ending June 30, 2018, to provide independent auditing services for
the fiscal year ending June 30, 2017, as set forth in the attached Exhibit "A", for the not -to -exceed
amount of $66,150 and a total not -to -exceed agreement amount of $309,150.
AGREEMENT
NOW, THEREFORE, the CITY and the CONSULTANT agree as follows:
1. This Amendment extends the term of the Agreement for a one-year period ending
June 30, 2018, to provide independent auditing services for the fiscal year ending
June 30, 2017, for a not -to -exceed amount of $66,150 and a total agreement not -to -
exceed amount of $309,150; and
2. 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 Second 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:
Angil P. Morris -Jones
City Attorney
(Print)
(Title)
Services
City Audit, including CAFR
Single Audit
GANN Limit
Annual State Controllers Report
EXHIBIT A
OPTIONAL YEARS
FY 13 FY 14 FY 15 FY 16 FY 17
$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.
RESOLUTION NO. 2017 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE THE SECOND 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, 2018, FOR THE NOT -TO -EXCEED
AMOUNT OF $66,150 AND A TOTAL NOT -TO -EXCEED AGREEMENT
AMOUNT OF $309,150, TO PROVIDE AUDITING SERVICES
FOR THE FISCAL YEAR ENDING JUNE 30, 2017
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, from 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 through 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 19, 2016, the City Council adopted Resolution No.
2016-52, authorizing the City to accept Pun & McGeady, LLP's business name change to "The
Pun Group, LLP" and to execute the First Amendment to the Agreement to extend the term for a
one-year period ending June 30, 2017, to provide independent auditing services for the fiscal
year ending June 30, 2016, for the not -to -exceed amount of $63,000 and a total not -to -exceed
Agreement amount of $243,000; and
WHEREAS, the City and The Pun Group, LLP, desire to enter into a Second
Amendment to the Agreement to extend the term for a one-year period ending June 30, 2018, to
provide independent auditing services for the fiscal year ending June 30, 2017 for the not -to -
exceed amount of $66,150 and a total not -to -exceed Agreement amount of $309,150.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement
between the City of National City and The Pun Group, LLP, to extend the term of the Agreement
for one year, ending June 30, 2018, to provide independent auditing services for the fiscal year
ending June 30, 2017 for the not -to -exceed amount of $66,150 and a total not -to -exceed
Agreement amount of $309,150.
PASSED and ADOPTED this 20th day of June, 2017.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Angil P. Morris -Jones
City Attorney
TIIE
PUN GROUP
ACCOUNTANTS & ADVISORS
June 22, 2017
Mr. Javier Carcamo, Financial Services Officer
City of National City
1243 National City Blvd
National City, CA 91950
Dear Javier:
Enclosed please find three (3) signed copies of the first amendment to the agreement per your request. Once
signed, if you could please email a copy to me at charlene.scaltreto(a)pungroup.com it would be greatly
appreciated.
Should you have any questions, please do not hesitate to contact us.
Sincerely,
The Pun Groun LLP
Charlene Scaltreto
Administrative Assistant
200 East Sandpointe Avenue, Suite 600, Santa Ana, California 92707
Tel: 949-777-8800 • Fax: 949-777-8850
www.pungroup.com
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950
619-336-4228
Michael R. Dalla, CMC - City Clerk
July 11, 2017
Mr. Kenneth Pun
The Pun Group, LLP
200 Sandpointe Avenue
Santa Ana, CA 92707
Dear Mr. Pun,
On June 20th, 2017, Resolution No. 2017-109 was passed and adopted by the City
Council of the City of National City, authorizing execution of a Second Amendment to an
Agreement with The Pun Group, LLP.
We are enclosing for your records a certified copy of the above Resolution and a fully
executed original Amendment.
Michael R. Dalla, CMC
City Clerk
Enclosures