CONTRACT 4838 CLOSEDAgreement No. 4838
PROFESSIONAL SERVICES AGREETAE11T
BETWEEN
THE CITY OF EL SEGUNDO AND
VAVRINEK, TRINE, DAY & CO., LLP
This AGREEMENT is entered into this 16 1h day ♦ April, 2015, by and between t
CITY OF EL SEGUNDO, a municipal corporation and general law city ("CITY") and
VAVRINEK, TRINE, DAY & CO., LLP, a LIMILTED LIABILITY PATNERSHIP
("CONSULTANT").
A. As partial consideration, CON SULTANT agrees to perform the work listed in the
SCOPE OF SERVICES, below;
additional consideration, CONSULTANT and CITY agree to abide by the
terrns and conditions contained in this Agreement;
2. SCOPE OF SERVICES.
A. CONSULTANT will perform services listed in the attached Exhibit "A," which is
incorporated by reference.
Agreement No. 4838
5. NON-APPROPRIATION OF FUNDS. Payments due and payable to CONSULTANT for
current services are within the current budget available, unexhausted and
unencumbered appropriation of the CITY. In the event the CITY has not appropriated sufficient
funds for payment of beyond the current fiscal Agreement
wi I I cover only those costs incurred up to the conclusion of the current fiscal year.
A. CITY's city manager _ Manager's •
discretion, that. CONSULTANT must perform additional work ("Additional
Work") to complete the Scope of Work. If Additional Work is needed, the
Manager will give written authorization 1 CONSULTANT to perform
specific Additional Work.
B, If CONSULTANT believes Additional Work is needed to complete the Scope of
Work, CONSULTANT will provide the Manager with written notification that
contains a description of the proposed Additional Work,
Additional Work, and a detailed proposal regarding cost.
C, Payments over $.11,500.00 for Additional Work must be approved by CITY's city
council. All Additional Work will be subject to all other terms and provisions of
this Agreement,
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Carefully investigated and considered the scope of services to be
performed:
Understands and restrictions attending
performance of the services un
involve B. If services • rk upon any site, CONSULTANT that
CONSULTANT or • is or acquainted
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Agreement No. 4838
with the conditions before commencing
Should CONSULTANT discover / wn conditio
materially affect the performance services, #
immediately inform CITY of such fact and will not proceed except at
own risk until written w from CITY.
8. TERM. The term of be
following Unless
otherwise determined by written amendment bletween the parties, this Agreement will terminate
in the
f 1 1 ♦ f r f
! w f
i. CONSULTANT furnishes proof of insurance as required under Section 23
of this Agreement; and
B. Should CONSULTANT begin work on any phase in advance of + written
authorization proceed, any such professional services are
own risk.
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any conflicting provisions. Any inconsistency between the Exhibits will be resolved in the ord
in which the Exhibits f'S' below:
A, Exhibit A: Agreed -Upon Procedures (AUP) Engagement Letter and Scope of
Work.
order 12. CHANCES. CITY may changes in the services within the general scope of
Agreement, consisting of additions, deletions,
contract time will be f accordingly. All such changes be authorized in writing,
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Agreement No. 4838
16. TERMINATION.
A. Except as otherwise provided, CITY may terminate this Agreement at any time
with or without cause.
B. CONSULTANT may terminate this Agreement at any time with CITY's mutual
consent. Notice will be in writing at least thirty (30) days before the effective
terminatio- 1 11 . .
E. Should the Agreement be terminated pursuant to this Section, CITY may procur(.�
• its own terms services similar to those terminated.
F, By executing this document, CONSULTANT waives any and all claims for
damages that might otherwise arise from CITY's termination under this Section.
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Agreement No. 4838
B. For purposes of this section "CITY" includes CITY's officers, officials,
employees, agents, representatives, and certified volunteers.
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Agreement No. 4838
C. It is expressly understood and agreed that the foregoing provisions will survive
termination of this Agreement.
20. ASSIGNABILITY. This Agreement is for CONSULTANT's professional service
CONSULTANT's attempts to assign the benefits or burdens of this Agreement without CITY
written approval are prohibited and will be null and void. I
23. INSURANCE,
A. Before commencing performance under this Agreement, and at all other times this
Agreement is effective, CONSULTAN'r will procure and maintain the following
types of insurance with coverage limits complying, at a minimum, with the limits
set forth below:
I
Y'llp'01, Insuranecl: Limits
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Agreement No. 4838
Workers compensation Statutory requirement
D. Automobile coverage will be written on ISO Business Auto Coverage Form CA
00 0 1 06 92, including symbol I (Any Auto).
E. CONSULTANT will furnish to CITY duly authenticated Certificates of Insurance
evidencing maintenance of the insurance required under this Agreement and such
other evidence of insurance or copies of policies as may be reasonably required
by CITY from tirne to time, Insurance must be placed with insurers with a current
A.M. Best Company Rating equivalent to at least a Rating of "A:Vll."
F Should CONSULTANT, for any reason, fail to obtain and maintain the insurance
required by this Agreement, CITY may obtain such coverage at
CONSULTANT's expense and deduct the cost of such insurance from payments
due to CON SULTANT under this Agreement or terminate pursuant to Section 16,
24. USE OF SUBCONTRACTORS. CONSULTANT must obtain CITY's prior written
approval to use any consultants while performing any portion of this Agreement. Such approval
must approve of the proposed consultant and the terms of compensation.
25. INCIDENTAL TASKS. CONSULTANT will meet with CITY monthly to provide the
status on the project, which will include a schedule update and a short narrative description of
progress during the past month for each major task, a description of the work remaining and a
description of the work to be done before the next schedule update.
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Agreement No. 4838
0-'6. NOTICES. All communications to either party by the other party will be deemed made
when received by such party at its respective name and address as follows:
Vavrinek, Trine, Day & Co., UP
8270 Aspen Street
Rancho Cucamonga, CA 91730
Attention: Phil XYVAc----
momm
City of El Segundo
350 Main Street
El Segundo, CA 90245
Any such written communications by mail will be conclusively deemed to have been received
the addressee upon deposit thereof in the United States Mail, postage prepaid and proper
addressed as noted above. In all other instances, notices will be deemed given at the time
Yetual delivery. Changes may be made in the names or addresses of persons to whom notices a]
to be given by giving notice in the manner prescribed in this paragraph.
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411
29. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is
generally for the exclusive benefit of CONSULTANTand CITY and not for the benefit of any
other party. There will be no incidental or other beneficiaries of any of CONSULTANT's or
CITY's obligations under this Agreement.
30. INTERPRETATION. This Agreement was drafted in, and will be construed in accordan
with the laws of the State of California, and exclusive venue for any action involving thl
agreement will be in Los Angeles County.
3 1. COMPLIANCE WITH LAW. CONS ULTANTagrees to comply with all federal, state,
and local laws applicable to this Agreement.
32. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire
understanding of the parties. There are no other understandings, terms of other agreements
expressed or implied, oral or written. There are one (1) Attachment to this Agreement. This
Ap.,reement will bind and inure to the benefit of the 32arties to this Agwezwp"m,,�Un�i-�iruint
successors and assigns.
In
Agreement No. 4838
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Agreement No. 4838
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year
first hereinabove written.
CITY ( V DC
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t "i��ra��c:;,
A' TEST.,
City Clerk
APPROVED AS TO FORM:
MARK D I I 1 "° "N s 1 l "Y City Attorney
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By: �.
David H. K i g(_
Assistant City Attorney
Insurance reviewed by:
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VAVRINEK, TRINE, DAY & CO., LLP
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Phil White,
Partner
Taxpayer ID No. 95- 264 -8289
UT,r,4..1 Vavrinek, Trine, Day & Co., LLP
Certified Public Accountants
April 15, 2015
City Council
City of El Segundo, California
Agreement No. 4838
We are pleased to confirm our understanding of the nature and limitations of the services we are to provide for the
City of El Segundo (the City).
We will apply the agreed -upon procedures which the City Council and management of the City has specified,
listed in the attached schedule, to the City's payroll records. This engagement is solely to assist the City in
determining that payroll paid agrees, for the sample noted, to the underlying supporting documentation. Our
engagement to apply agreed -upon procedures will be conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely
the responsibility of those parties specified in the report. Consequently, we make no representation regarding the
sufficiency of the procedures described in the attached schedule either for the purpose for which this report has
been requested or for any other purpose. If, for any reason, we are unable to complete the procedures, we will
describe any restrictions on the performance of the procedures in our report, or will not issue a report as a result of
this engagement.
Because the agreed -upon procedures listed in the attached schedule do not constitute an examination, we will not
express an opinion on the balance, amounts, or on compliance with applicable policies, regulations, requirements
or statues. In addition, we have no obligation to perform any procedures beyond those listed in the attached
schedule.
We will submit a report listing the procedures performed and our findings. This report is intended solely for the
use of the City Council and management of City, and should not be used by anyone other than these specified
parties. Our report will contain a paragraph indicating that had we performed additional procedures, other matters
might have come to our attention that would have been reported to you.
The City is responsible for compliance with all policies, regulations, requirements, and statues and is responsible
for selecting the criteria for testing and for determining that such criteria are appropriate for your purposes.
Phillip White is the engagement partner and is responsible for supervising the engagement and signing the report
or authorizing another individual to sign it.
We plan to begin our procedures in April 2015 and, unless unforeseeable problems are encountered, the
engagement should be completed in May 2015. At the conclusion of our engagement, we will require a
representation letter from management that, among other things, will confirm management's responsibility for the
compliance with all applicable policies and statues in accordance with those standards.
We estimate that our fees for these services will be $11,500. The fee estimate is based on anticipated cooperation
from your personnel and the assumption that unexpected circumstances will not be encountered during the
engagement. These fees are also based upon the assumption that the City will have all of the detail ready for each
sample selected for the specified procedures noted in the Scope of Work for the team upon arrival (a prepared by
client listing (PBC) will be provided). If significant additional time is necessary, we will discuss it with you and
arrive at a new fee estimate before we incur the additional costs.
8270 Aspen Street Rancho Cucamonga, CA 91730 Tel: 909466.4410 Fax: 909.466.4431 www.vtdcpa.com
FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO
Agreement No. 4838
City Council
City of El Segundo, California
2014 Payroll AUP
April 15, 2015
Page 2 of 4
We appreciate the opportunity to assist you and believe this letter accurately summarizes the significant terms of
our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as
described in this letter, please sign the enclosed copy and return it to us. If the need for additional procedures
arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an
addendum to this letter. If additional specified parties of the report are added, we will require that they
acknowledge in writing their responsibility for the sufficiency of procedures.
Very truly yours,
i* W�L
Phillip White, Partner
Vavrinek, Trine, Day & Co., LLP
PMW:gbl
150279
Attachment
RESPONSE:
This letter correctly sets forth the understanding of the City of El Segundo.
LI-A
Title:
Date:
Agreement No. 4838
City Council
City of El Segundo, California
2014 Payroll AUP
April 15, 2015
Page 3 of 4
Scone of Work
Perform an agreed upon procedures engagement (AUP) to assist the City in determining that the payroll paid, for
the sample noted, to the underlying supporting documentation. The work will be performed as noted below:
Pei -fot -m the following procedures:
Review current Salary and Class Listing, Memorandum of Understanding (MOUs) for the City's 6 labor groups
and the Agreement with the City's Management Confidential and Executive Groups covering all City employees
for the period December 2014 and January 2015 and trace payroll paid to supporting documentation.
Test a sample of employees in each bargaining unit. The total sample of 46 employees (18.4% of all City
employees). For the selected sample trace the following to current published class and salary listing,
MOU /Agreements and change order as presented from Human Resources:
PSSEA (Total number of members= 10)
0 1 Police Service Officer I or II
0 1 Police Assistant
i, 20.0% Tested
CEA (Total number of members= 63)
a 1 Crime Scene Investigator
0 1 Park Maintenance Worker
• 1 Public Works Inspector I or II
• 4 additional positions selected randomly
a 11.1 % Tested
POA (Total number of members= 53)
• 4 Officers
0 2 Motor Officer
2 Detective
4 Sergeants
0 22.6% Tested
FFA (Total number of members= 40)
3 Firefighters
0 2 Paramedics
3 Engineers
3 Captains
• 27.5% Tested
Agreement No. 4838
City Council
City of El Segundo, California
2014 Payroll AUP
April 15, 2015
Page 4 of 4
SPEA (Total number of members= 35)
0 1 Crime Prevention Analyst
0 1 Fire Marshal
• 1 Principal Environmental Specialist
0 1 Recreation Supervisor
0 11.4% Tested
PMA (Total number of members= 8)
• 2 Lieutenants
• 2 Captains
• 50.0% Tested
Management Confidential (Total number of members= 32)
2 Managers
1 Mid -level Manager
0 1 Analyst level
12.5% Tested
Executives (Total number of members= 8)
2 Department Heads
* 25.0% Tested
Testing Procedgres;
A. Verify pay rate, Special Compensation and overtime in the City's payroll system to MOU or Agreement
and Class and Salary Listing
B. Tie to a properly approved Change Order
C. Verify and recalculate any cash outs, over accrual payments and stipends during test period per MOU or
Agreement
D. Agree to payroll register and verify compliance with Fair Labor Standards Act
E. Review the City's calculation of PERS (employee and employer)