(11)AR 040709 Contract - Laserfiche WebLink

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ITEM #11 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING OF APRIL 7, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: APPROVE EMPLOYMENT AGREEMENT WITH THERESA JALLORINA FOR ACCOUNTING SERVICES FROM APRIL 2009 - JUNE 2010 NOT TO EXCEED $75,000 DATE: MARCH 25, 2009 BACKGROUND The Finance Department has two Senior Accountant positions budgeted at the present time to provide a wide variety of accounting services. These tasks require technical skills in order to meet the accounting standards set by the Government Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB). DISCUSSION/ ANALYSIS In January 2007 due to the sudden passing of a Sr. Accountant a position has been vacant and has been filled using contracts with an audit firm and beginning April 2008 through Theresa Jallorina. On April 1, 2008 the Council approved a contract with Theresa Jallorina to perform higher level accounting tasks for which the Finance Department had no staff in place to assign to. Due to the depleted pool of qualified candidates with governmental accounting experience, staff feels this contract will enable the department to have quality higher level accounting services at a lower cost than a full-time Sr. Accountant. A full-time Sr. Accountant with benefits at the current pay rate would top out at approximately $94,300 per year. Staff has negotiated a 10% reduction in the billing rate from Ms. Jallorina and the cost of services under this contract at the new rate of $50 per hour would generate savings of approximately $20,000 per year. The previous contract as approved was at $55 per hour and expired March 31st 2009. As a contractor she is not entitled to any benefits including medical, vacation, sick or holiday pay. The City will not make contributions to PERS on behalf of the contractor. CMC Section 3.08.140 provides that the City Manager, for contracts up to $100,000, may dispense with public bidding for Professional Services Agreements when it is in the best interests of the City and its administrative operations. Therefore, City staff respectfully requests that City Council ratify the City Manager's waiver of competitive bidding, and approve the Professional Services Agreement with Theresa Jallorina for $75,000 for accounting services for the period of April 2009 through June 30, 2010 with the option to renew annually for two additional one year periods. FINANCIAL IMPACT This contract if approved by the City Council will go into effect April 11th will have a cost of approximately $15,000 for fiscal year 2008-09 and a cost of $60,000 for fiscal year 2009-10. The funds for the fiscal year 2008-09 portion of the contract is available in account 100-6040-6041-2350 and the account's funding status is noted in the table below. The portion of the contract for fiscal year 2009-10 is not depicted in a table format as the budget for that year is a work in progress at this time. Budget Year-to-date FY 2008-09 Expenditures Open Encumbrances Available Funds $ 158,500 $ 127,412 $ - 1 $ 31,088 ENVIRONMENTAL IMPACT None