City Council/Successor Agency/Public Finance Authority

CITY OF AVENAL “Pistachio Capital of the World®” SPECIAL CITY COUNCIL/SUCCESSOR AGENCY MEETING “VIA ZOOM” THURSDAY, NOVEMBER 5, 2020; 5:00 P.M. AVENAL THEATER & EVENT CENTER/233 E. KINGS STREET AVENAL, CA 93204 (Due to gathering limits and social distancing requirements, the City Council and limited City Staff will attend at this location) VIA ZOOM VIDEO/WEB CONFERENCING: (PLEASE DOWNLOAD THE ZOOM APPLICATION TO YOUR COMPUTER OR SMART DEVICE) Web Link: bit.ly/AvenalCouncil Meeting ID to Join: 126 696 761 Or call +1 669 900 6833 Study Session – None. ___ LAST ORDINANCE: 2020-05 CITY LAST RESOLUTION: 2020-53 PFA LAST RESOLUTION: 2020-02 AGENDA 1. CALL TO ORDER: 2. ROLL CALL: CITY CLERK: Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency. 3. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES: Any person may directly address the Council/Agency at this time on any item on the agenda or on any other items of interest to the public that is within the subject matter jurisdiction of the City Council/Successor Agency. State Law prohibits any member of the Council/Agency from commenting or acting on matters not on the agenda. Three (3) minutes are allowed per person. 4. NEW BUSINESS: A. Consider Consulting Agreement with Esther O. Strong for Limited-Duration Support Services to Finance Department: (Discussion/Action). B. Consider Declaring Local Emergency Due to Anticipated Water Allocation Shortage, and Adoption of Tier III Water Conservation Rules: : (Discussion/Action). C. Consider Extending the Agreement with Sotomayor & Associates LLP: : (Discussion/Action). 5. CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS: 1) Correspondence/Announcements/Information; 2) Upcoming/Future Agenda Items to Consider; 3) Council Successor Agency/City Manager/City Attorney.  6. ADJOURNMENT: 1) In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office (559) 386-5766. Location: Avenal Recreation Center, 717 Monterey Street, Avenal, CA 93204. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting [28 CFR 35.02.35.1044 AA Title II]. 2) Materials related to an item on this Agenda submitted to the [Council/Authority] after distribution of the agenda packet are available for public inspection in the [City Clerks] office at 919 Skyline Blvd., Avenal, CA 93204 during normal business hours. I certify this Agenda of the City of Avenal City Council workshop is to be posted at the following locations: 1) City Council Chambers, Avenal Theater 233 E. Kings St.; 2) City Hall 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; 4) T&T Market, 801 Skyline Blvd.; and, 5) Avenal Recreation Center, 717 Monterey Street, Avenal CA 93204 on August 24, 2020. /s/ Maria Ortiz Maria Ortiz, City Clerk VIA ZOOM VIDEO/WEB CONFERENCING: (PLEASE DOWNLOAD THE ZOOM APPLICATION TO YOUR COMPUTER OR SMART DEVICE) Web Link: bit.ly/AvenalCouncil Meeting ID to Join: 126 696 761 Or call +1 669 900 6833  CIUDAD DE AVENAL "Pistachio Capital del Mundo®" REUNIÓN ESPECIAL DEL AYUNTAMIENTO/AGENCIA DE LA AGENCIA DE LOS "VIA ZOOM" JUEVES, 5 DE NOVIEMBRE DE2020; 55:00 P.M. CENTRO DE TEATRO Y EVENTOS DE AVENAL/233 E. KINGS STREET AVENAL, CA 93204 (Debido a los límites de reunión y los requisitos de distanciamiento social, el Ayuntamiento y el personal limitado de la ciudad asistirán en este lugar) VIA ZOOM VIDEO/CONFERENCIA WEB: (POR FAVOR, DESCARGUE LA APLICACIÓN ZOOM A SU COMPUTADORA O DISPOSITIVO INTELIGENTE) Enlace web: bit.ly/AvenalCouncil Identificación de la reunión a unir: 126 696 761 O llame al +1 669 900 6833 Sesión de estudio – Ninguno. ___ ÚLTIMA ORDINANCE: 2020-05 CIUDAD ÚLTIMA RESOLUCIÓN: 2020-53 PFA ÚLTIMA RESOLUCIÓN: 2020-02 Agenda 7. LLAMADA A PEDIDO: 8. LLAMADA DE ROLL: CLERK DE LA CIUDAD: Código de Gobierno Sección 54952.3: Los miembros del Ayuntamiento/Agencia Sucesora tienen derecho a recibir un total de $300.00 mensuales debido a ser elegidos para el Ayuntamiento. No reciben ninguna otra compensación por sentarse como miembro de la Agencia Sucesora. 9. COMENTARIO/ANUNCIOS PUBLICOS Y APPEARANCESNO PROGRAMADOS: Cualquier persona podrá dirigirse directamente al Consejo/Agencia en este momento sobre cualquier punto del orden del día o sobre cualquier otro tema de interés para el público que esté dentro de la jurisdicción del Ayuntamiento/Agencia Sucesora. La Ley estatal prohíbe a cualquier miembro del Consejo/Agencia comentar o actuar sobre asuntos que no están en el orden del día. Se permiten tres (3) minutos por persona. 10. NUEVO NEGOCIO: D. Considere la posibilidad de consultar un acuerdo con Esther O. Fuerte para los Servicios de Apoyo a Duración Limitada al Departamento de Finanzas:(Discusión/Acción). E. Considere la posibilidad de declarar una emergencia local debido a la escasez prevista de asignación de agua y la adopción de las reglas de conservación del agua de nivel III: : (Discusión/Acción). F. Considere la posibilidad de ampliar el acuerdo con Sotomayor & Associates LLP: : (Discusión/Acción).  11. CORRESPONDENCIA/ANUNCIOS/COMENTARIOS DE CIERRE: 4) Correspondencia/Anuncios/Información; 5) Próximos/Futuros Puntos del Orden del Día a considerar; 6) Agencia Sucesora del Consejo/Manejador de la Ciudad/Abogado de la Ciudad. 12. APLAZAMIENTO: 3) En cumplimiento con la Ley de Estadounidenses con Discapacidad, si necesita asistencia especial para participar en esta reunión, comuníquese con la Oficina del Secretario de la Ciudad (559) 386- 5766. Ubicación: Avenal Recreation Center, 717 Monterey Street, Avenal, CA 93204. La notificación 24 horas antes de la reunión permitirá a la ciudad hacer arreglos razonables para garantizar la accesibilidad a esta reunión [28 CFR 35.02.35.1044 AA Título II]. 4) Los materiales relacionados con un punto de este orden del día presentado al [Consejo/Autoridad] después de la distribución del paquete de la agenda están disponibles para su inspección pública en la oficina [de los Secretarios de la Ciudad] en 919 Skyline Blvd., Avenal, CA 93204 durante el horario comercial normal. Certifico esta Agenda del Taller del Ayuntamiento de la Ciudad de Avenal se publicará en las siguientes ubicaciones: 1) Cámaras del Ayuntamiento, Teatro Avenal 233 E. Kings St.; 2) Ayuntamiento 919 Skyline Blvd.; 3) Avenal Lumber, 600 Skyline Blvd.; 4) T&T Market, 801 Skyline Blvd.; y, 5) Avenal Recreation Center, 717 Monterey Street, Avenal CA 93204 el 24 de agosto de 2020. /s/ María Ortiz María Ortiz, Secretaria de la Ciudad VIA ZOOM VIDEO/CONFERENCIA WEB: (POR FAVOR, DESCARGUE LA APLICACIÓN ZOOM A SU COMPUTADORA O DISPOSITIVO INTELIGENTE) Enlace web: bit.ly/AvenalCouncil Identificación de la reunión a unir: 126 696 761 O llame al +1 669 900 6833 TO: The Honorable Mayor and City Council FROM: Antony V. López, City Manager DATE: November 5, 2020 RE: Consider Consulting Agreement with Esther O. Strong for Limited-Duration Support Services to Finance Department BACKGROUND: On October 19th 2020, the City’s Director of Administrative Services, Dawn Perkins, tendered her letter of resignation – effective November 3rd 2020. A vacancy in a top management position during a time of transition for the City should not be left open for a long period given the crucial role of the Director of Administrative Services served as manager of Finance, Personnel, and Risk Management. The City has a few options in regard to filling these essential services. 1) Promote from within the Finance/Utility Departments 2) Post the vacancy and recruit for the position 3) Hire a consultant who can assist and train existing staff to fulfill necessary duties for a limited time. Understanding the current circumstances and challenges facing the City, options 1 and 2 are not currently viable. A recruitment for a new employee could take a few weeks between posting, interviewing, and onboarding, before having someone ready to fill the role. Current Finance/Utility staff have indicated a willingness to perform more duties, but a need for direction and assistance regarding the City’s finance system, audit, and other procedures. With this in mind, the City Manager and Finance/Utility staff discussed the best course of action being to solicit the City’s former Administrative Analyst, Esther O. Strong, to assist the City during this time in the capacity of consultant for day-to-day tasks, and trainer to the Finance/Utility staff who will actually execute said work and duties. Over time, promoting from within to fill the Director of Administrative Services, may become a more viable option. INFORMATION Esther was employed by the City for over 25 years until her retirement in 2014 and served in various capacities such as City Clerk and later Administrative Analyst. She is credited for designing and building the Finance Department and Utility Billing system the City currently uses. Esther is fondly remembered by a majority of City Staff and would be assisting staff she formerly supervised. Attached is a professional services consulting agreement for the City to enter into an agreement with Esther O. Strong. The agreement will allow Esther to assist the City Manager, as needed, with institutional information, staff development and training, professional support services and/or special projects which may be assigned by the City Manager. The agreement will last approximately nine (9) months, unless otherwise terminated or extended by both parties. RECOMMENDATION: By Resolution, authorize the Mayor to sign the professional consulting services agreement with Esther O. Strong  BEFORE THE CITY COUNCIL OF THE CITY OF AVENAL IN THE MATTER OF: Approval of Professional Consulting RESOLUTION 2020- Services Agreement with Esther O. Strong. WHEREAS, the Finance Director of the City of Avenal (“City”) recently resigned to accept employment with another public agency; WHEREAS, retired Administrative Analyst Esther O. Strong formerly served the City for decades and throughout that time gained extensive institutional knowledge, experience and skill in the successful administration of the City’s finances, risk management and human resources and related administrative processes; WHEREAS, the City Council desires and believes that the public will benefit from temporarily retaining Esther O. Strong as a professional independent consultant; and WHEREAS, the City Council desires to enter into an agreement with Esther O. Strong under which she will assist the City Manager, as needed, with institutional information, staff development and training, professional support services and/or special projects which may be assigned by the City Manager. UPON MOTION OF COUNCIL MEMBER , SECONDED BY COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL SPECIAL MEETING HELD ON November ___, 2020, BY THE FOLLOWING VOTE: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Alvaro Preciado, Mayor MARIA A. ORTIZ, City Clerk CITY OF AVENAL CITY OF AVENAL ****************** NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL: 1 of 2  1. Found the foregoing recitals to be true, correct and incorporated herein; 2. Authorized the Mayor to sign the professional consulting services agreement with Esther O. Strong, which was presented to the City Council in connection with this resolution; and 3. Ordered and authorized the Mayor and relevant City staff to carry out the terms and conditions of this resolution and to take all steps reasonably necessary, proper and/or convenient and/or incidental thereto. ****************** 20200916 - Avenal - Resolution Appointing City Attorney-v1.doc 2 of 2  PROFESSIONAL SERVICES CONSULTING AGREEMENT I. INTRODUCTION THIS AGREEMENT, is entered into as of October 27, 2020, between the CITY OF AVENAL, referred to as CITY, and Esther O. Strong, referred to as CONSULTANT, with reference to the following: II. RECITALS A. WHEREAS, the CONSULTANT is the former and retired Administrative Analyst of CITY, previously served the CITY in the capacity of an employee for decades and has extensive knowledge and experience with a multitude of upcoming issues with the CITY’s accounting system other advanced administrative functions; B. WHEREAS, the CITY’s Finance Director recently resigned to accept a position with another public agency; C. WHEREAS, the CITY initiated discussions with CONSULTANT about the potential to enter into an agreement under which CONSULTANT would assist the City Manager, as needed, with institutional information, staff development and training, professional support services and/or special projects which may be assigned by the City Manager; and D. WHEREAS, the CITY and CONSULTANT desire to enter into an agreement under which CONSULTANT will assist the City Manager, as needed, with institutional information, staff development and training, professional support services and/or special projects assigned by the City Manager. ACCORDINGLY, IT IS AGREED: III. SPECIFIC TERMS 1. TERM: This Agreement shall become effective as of October 27, 2020 and shall expire at 11:59 PM on July 29, 2021 unless otherwise terminated as provided in this Agreement. 2. SERVICES TO BE PERFORMED: See attached EXHIBIT A. 3. PAYMENT FOR SERVICES: See attached EXHIBIT B. IV. GENERAL TERMS 1 of 11 4. INDEPENDENT CONTRACTOR STATUS: (a) This Agreement is entered into by both parties with the express understanding that CONSULTANT will perform all services required under this Agreement as an independent contractor. Nothing in this Agreement shall be construed to constitute the CONSULTANT or any of its agents, employees or officers as an agent, employee or officer of CITY. (b) CONSULTANT agrees to advise everyone it assigns or hires to perform any duty under this agreement that they are not employees of CITY. Subject to any performance criteria contained in this Agreement, CONSULTANT shall be solely responsible for determining the means and methods of performing the specified services and CITY shall have no right to control or exercise any supervision over CONSULTANT as to how the services will be performed. As CONSULTANT is not CITY's employee, CONSULTANT is responsible for paying all required state and federal taxes, as applicable. In particular, CITY will not: 1. Withhold FICA (Social Security) from CONSULTANT's payments. 2. Make state or federal unemployment insurance contributions on CONSULTANT's behalf. 3. Withhold state or federal income tax from payments to CONSULTANT. 4. Make disability insurance contributions on behalf of CONSULTANT. 5. Obtain unemployment compensation insurance on behalf of CONSULTANT. 6. Make any contribution to any retirement plan for CONSULTANT or CONSULTANT’s employees, including without limitation contributions to CalPERS. 7. Provide any other employment benefits to CONSULTANT or CONSULTANT’s employees, including without limitation medical, dental, vision or other similar health insurance. (c) Notwithstanding this independent contractor relationship, CITY shall have the right to monitor and evaluate the performance of CONSULTANT to assure compliance with 2 of 11  this Agreement. 5. TERMINATION: (a) Without Cause: Either party may terminate this Agreement by providing prior written notice of termination to the other party at least sixty (60) days before the effective date of termination. (b) With Cause: This Agreement may be terminated by either party should the other party: (1) be adjudged a bankrupt, or (2) become insolvent or have a receiver appointed, or (3) make a general assignment for the benefit of creditors, or (4) suffer any judgment which remains unsatisfied for 30 days, and which would substantively impair the ability of the judgment debtor to perform under this Agreement, or (5) materially breach this Agreement, or (6) material misrepresentation, either by CONSULTANT or anyone acting on CONSULTANT’s behalf, as to any matter related in any way to CITY’s retention of CONSULTANT, or (7) other misconduct or circumstances which, in the sole discretion of the CITY, either impair the ability of CONSULTANT to competently provide the services under this Agreement, or expose the CITY to an unreasonable risk of liability. CITY will pay to the CONSULTANT the compensation earned for work performed and not previously paid for to the effective date of termination. The payment of such compensation is subject to the restrictions on payment of compensation otherwise provided in this Agreement, and is conditioned upon receipt from CONSULTANT of any and all plans, specifications and estimates, and other documents prepared by CONSULTANT by the date of termination in accordance with this Agreement. CITY will not pay lost anticipated profits or other economic loss, nor will the CITY pay compensation or make reimbursement to cure a breach arising out of or resulting from such termination. (c) Effects of Termination: Expiration or termination of this Agreement shall not terminate any obligations to indemnify, to maintain and make available any records pertaining to the Agreement, to cooperate with any audit, to be subject to offset, or to make any reports of pre-termination contract activities. (d) Suspension of Performance: Independent of any right to terminate this Agreement, the authorized representative of CITY for which CONSULTANT’s services are to be performed, may immediately suspend performance by CONSULTANT, in whole or in part, in response to health, safety or financial emergency, or a failure or refusal by CONSULTANT to comply with the provisions of this Agreement, until such time as the cause for suspension is resolved, or a notice of termination becomes effective. 6. COMPLIANCE WITH LAW: CONSULTANT shall provide services in accordance 3 of 11 with all applicable federal, state and local laws, regulations and directives. With respect to CONSULTANT’s employees, CONSULTANT shall comply with all laws and regulations pertaining to wages and hours, state and federal income tax, unemployment insurance, Social Security, disability insurance, workers' compensation insurance, and discrimination in employment. 7. GOVERNING LAW: This Agreement shall be interpreted and governed under the laws of the State of California without reference to California conflicts of law principles. The parties agree that this contract is made in and shall be performed in the City of Avenal, California. 8. CONFLICT OF INTEREST: (a) CONSULTANT agrees to, at all times during the performance of this Agreement, comply with the law of the State of California regarding conflicts of interests and appearance of conflicts of interests, including, but not limited to Government Code section 1090 et seq., and the Political Reform Act, Government Code section 81000 et seq. and regulations promulgated pursuant thereto by the California Fair Political Practices Commission. The statutes, regulations and laws previously referenced include, but are not limited to, prohibitions against any public officer or employee, including CONSULTANT for this purpose, from making any decision on behalf of CITY in which such officer, employee or consultant/contractor has a direct or indirect financial interest. A violation can occur if the public officer, employee or consultant/contractor participates in or influences any CITY decision which has the potential to confer any pecuniary benefit on CONSULTANT or any business firm in which CONSULTANT has an interest, with certain narrow exceptions. (b) CONSULTANT agrees that if any facts come to its attention which raise any questions as to the applicability of conflicts of interests laws, it will immediately inform the CITY designated representative and provide all information needed for resolution of this question. 9. FORM DE-542: CONSULTANT acknowledges that this Agreement is subject to filing obligations pursuant to Unemployment Insurance Code section 1088.8. Accordingly, CITY has an obligation to file a report with the Employment Development Department, which report will include the CONSULTANT’s full name, social security number, address, the date this contract was executed, the total amount of the contract, the contract’s expiration date or whether it is ongoing. CONSULTANT agrees to cooperate with CITY to make such information available and to complete Form DE-542. Failure to provide the required information may, at CITY’s option, prevent approval of this Agreement, or be grounds for immediate termination by CITY, other terms hereof notwithstanding. 10. NOTICES: (a) Except as may be otherwise required by law, any notice to be given shall be written and shall be either personally delivered, sent by facsimile transmission or sent by first class mail, postage prepaid and addressed as follows: 4 of 11  CITY: With A Copy To: Antony Lopez, City Manager Moses Diaz, City Attorney CITY OF AVENAL CENTRAL VALLEY LEGAL SERVICES 919 Skyline Boulevard A Professional Corporation Avenal, California 93204 121 East Main Street, Suite 202 559-386-5782 Visalia, California 93291 559-386-0629 – Fax 559-900-3500 559-900-3555 – Fax CONSULTANT: Esther O. Strong _______________________ _______________________ Phone: _________________ (b) Notice personally delivered is effective when delivered. Notice sent by facsimile transmission is deemed to be received upon successful transmission. Notice sent by first class mail shall be deemed received on the fifth day after the date of mailing. Either party may change the above address by giving written notice pursuant to this paragraph. 11. ASSIGNMENT/SUBCONTRACTING: Unless otherwise provided in this Agreement, CITY is relying on the personal skill, expertise, training and experience of CONSULTANT and no part of this Agreement may be assigned or subcontracted by CONSULTANT without the prior written consent of CITY. 12. DISPUTE RESOLUTION: If a dispute arises out of or relating to this Agreement, or the breach thereof, and if said dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by non-binding mediation before resorting to litigation or some other dispute resolution procedure, unless the parties mutually agree otherwise. The mediator shall be mutually selected by the parties, but in case of disagreement, the mediator shall be selected by lot from among two nominations provided by each party. All costs and fees required by the mediator shall be split equally by the parties, otherwise each party shall bear its own costs of mediation. If mediation fails to resolve the dispute within thirty (30) days, either party may pursue litigation to resolve the dispute. 13. FURTHER ASSURANCES: Each party will execute any additional documents and perform any further acts which may be reasonably required to effect the purposes of this Agreement. 5 of 11 14. CONSTRUCTION: This Agreement reflects the contributions of all undersigned parties and accordingly the provisions of Civil Code section 1654 shall not apply to address and interpret any alleged uncertainty or ambiguity. 15. HEADINGS: Section headings are provided for organizational purposes only and do not in any manner affect the scope, meaning or intent of the provisions under the headings. 16. NO THIRD-PARTY BENEFICIARIES INTENDED: Unless specifically set forth, the parties to this Agreement do not intend to provide any other person or entity other than a signatory hereto with any enforceable legal or equitable benefit, right or remedy. 17. WAIVERS: The failure of either party to insist on strict compliance with any provision of this Agreement shall not be considered a waiver of any right to do so, whether for that breach or any subsequent breach. The acceptance by either party of either performance or payment shall not be considered to be a waiver of any preceding breach of the Agreement by the other party. 18. EXHIBITS AND RECITALS: The recitals and the exhibits to this Agreement are fully incorporated into and are integral parts of this Agreement. 19. CONFLICT WITH LAWS OR REGULATIONS/SEVERABILITY: This Agreement is subject to all applicable laws and regulations. If any provision of this Agreement is found by any court or other legal authority, or is agreed by the parties to be, in conflict with any code or regulation governing its subject matter, only the conflicting provision shall be considered null and void. If the effect of nullifying any conflicting provision is such that a material benefit of the Agreement to either party is lost, the Agreement may be terminated at the option of the party whose material benefit(s) is adversely affected. In all other cases the remainder of the Agreement shall continue in full force and effect. 20. ENTIRE AGREEMENT REPRESENTED: This Agreement represents the entire agreement between the parties hereto as to its subject matter and no prior oral or written understanding shall be of any force or effect. No part of this Agreement may be modified without the written consent of both parties. 21. ASSURANCES OF NON-DISCRIMINATION: CONSULTANT shall not discriminate in employment or in the provision of services on the basis of any characteristic or condition upon which discrimination is prohibited by state or federal law or regulation. 22. COUNTERPARTS: This Agreement may be executed in two or more counterparts, and by facsimile, all of which shall be considered one and the same agreement. THE PARTIES, having read and considered the above provisions, indicate their agreement by their authorized signatures below. 6 of 11  [SIGNATURES ON NEXT PAGE] // 7 of 11  CONSULTANT: ___________________________________ Esther O. Strong (date) CITY: APPROVED AS TO FORM: ___________________________________ ___________________________________ Alvaro Preciado, Mayor (date) Moses Diaz, City Attorney (date) ATTEST: __________________________________ ________________ (date) ___________________________________ Maria A. Ortiz, City Clerk (date) 8 of 11  EXHIBIT A SCOPE OF SERVICES SECTION A-1: CONSULTANT shall be available to provide the CITY with consulting services as is reasonably requested by the CITY. It is understood and acknowledged by the parties that the CONSULTANT as a contractor and non-employee shall utilize best efforts to render these services in good faith, upon request of the City Manager of CITY, but shall not be obligated to spend any specific or pre-set amount of time in performing these duties other than an amount of time reasonably sufficient to complete assigned task(s). To the extent needed by CITY, special professional services rendered hereunder to the CITY shall include, but are not limited to, timely assistance with: 1) Providing institutional, background and other information, including file review and research, if necessary; 2) Primarily training and assisting relevant City staff with understanding and completing: a. Processing CalPERS retirement paperwork, payments, etc.; b. Payroll; c. Risk/claims process with insurance carriers and City Attorney; d. Reconciliations; e. City’s side of outside annual audit; f. Warrant register / Financial Report for Council meetings; 3) New Accounting Software System: a. Investigating and researching potential accounting solutions/options for City, including features and pricing; b. Assisting vendor and City staff with successful set up and migration/transition from old accounting system to new one; c. Learning how to use new accounting system and training all relevant staff. 4) Support services and consultations to the City Manager, including training on and assistance with personnel recruitments, if needed; 5) Special projects assigned by the City Manager, within the scope of CONSULTANT’s existing professional skills and municipal experience; and 6) Any other assigned task which is necessary and proper to carry out, at the request of the City Manager, to satisfy the requirements of any CITY ordinance, resolution, rule, regulation, policy or other Council decision. SECTION A-2: The services to be provided hereunder by CONSULTANT shall not include the authority to: 1) supervise or oversee any of CITY’s staff or other consultants (nor relieve any City staff for their lunch or other breaks, nor otherwise assume the role and duties of any permanent or regular City staff position); 2) the ability to in any way bind CITY legally; 9 of 11  3) the ability to in any way waive the CITY’s rights or privileges including, without limitation, the attorney-client privilege and the privileges against disclosure of documents not required to be disclosed to the public under State law; and 4) the ability to speak on behalf of the CITY or any of its officers, employees, consultants or agents. SECTION A-3: (a) Services rendered hereunder shall be provided both onsite and offsite/remotely. (b) For offsite work, CONSULTANT shall be responsible for ensuring CONSULTANT’s use of an adequate individual office work-area and equipment, as needed, which may include a desk, computer, Internet access and telephone. (c) When available, the CITY may make available to CONSULTANT at City Hall, during reasonable hours, access to computer equipment, software and record archives reasonably necessary to carry out the services which are the subject of this Agreement, including but not limited to: hardcopy and electronic files; desktop or laptop computer; telephones; answering machines and voicemail; facsimile machine; printers; and photocopiers. (d) CONSULTANT’s services hereunder shall be rendered at all times in accordance with all CITY standards and policies in effect. 10 of 11  EXHIBIT B PAYMENT FOR SERVICES CONSULTANT must submit an invoice for all contracted services rendered or may utilize a standard CITY reimbursement form with any necessary or convenient attachments. CITY staff shall make a reasonable effort to have the payment approved at the next City Council meeting. Within five (5) business days after CITY’s approval of a payment, based upon a written invoice from CONSULTANT detailing dates and hours worked and tasks accomplished, CITY shall pay CONSULTANT as follows: Hourly Rate: 1. Compensation for consulting services shall be ninety-nine U.S. dollars ($99.00 USD) per hour for services actually rendered. 2. Hours must be billed in fractional increments of one-tenth (1/10th) of one hour. Costs: 1. Mileage: The CITY shall reimburse CONSULTANT for any reasonable mileage at fifty-eight U.S. cents ($0.58 USD) per mile traveled in furtherance of CITY objectives, including mileage to and from City Hall, and other travel approved in advance by the CITY. 2. Other Costs: All expenses incurred with CITY and third-parties, such as expenses for postage or photocopying, business license, etc., shall be reimbursed by CITY at their actual cost. Request for reimbursement must be made on a reimbursement claim form provided by the CITY, if any. 11 of 11 TO: The Honorable Mayor and City Council FROM: Antony V. López, City Manager DATE: November 5, 2020 RE: Consider Declaring Local Emergency Due to Anticipated Water Allocation Shortage, and Adoption of Tier III Water Conservation Rules BACKGROUND: Drought conditions continue to exist throughout the state of California, with many cities asked to restrict their water usage due to a decrease in rain and increase need for water to grow their communities. Avenal is no stranger to water conservation, having its water metered since the 1930’s, our community has always done an exceptional job to conserve water. Recent droughts have prompted many in our community to convert their green yards to dryscape, limit car washing, and eliminate any waste of water all together. Because the City receives its water from the California Aqueduct, we receive a water allotment administered by the United States Bureau of Reclamation (USBR). Avenal’s water allocation year is from March – February, and this year was allocated roughly 2,273 acre-foot (ae-ft). As of September 2020 (the latest water usage report), Avenal has used 1647ae-ft of water, leaving us with about 626ae-ft for the remainder of five months. In terms of Avenal's water needs, our average consumption since March is about 206ha. At this rate, we only have enough allocated water for October, November, and December. Granted, with the seasonal change of winter, water consumption is expected to go down, however, our aging infrastructure sees frequent water leaks which has contributed to our increased usage. We are preparing to replace our aging 18" water transmission pipeline which is over two miles long and where we can expect to lose more water. In trying to explain why this year a water shortage is becoming inevitable, there are two primary factors. 1) A full water allocation for the City would be 3,500 ae-ft, and this year was supplied 35% less than requested; 2) The effects of COVID-19 have resulted in families and individuals spending more time at home, and thus consume more water, whereas during the day individuals may be at work or school using other water supplies – such as well water at our local schools. Although last year the City was given a full water allotment, the City has remained in Tier II Water Conservation Rules, which limits watering days to three days a week and Sundays. INFORMATION Knowing that the City’s water allotment will not be enough to supply the community through next year, staff, Melissa Whitten, and the Mayor have been proactive to request an additional allotment from the USBR before it is too late. A formal request for an additional 500ae-ft was submitted and received by USBR on October 28th 2020. The only alternative to an additional allotment would be for the City to purchase water from other customers on the open market which could result in a financial hardship for the City. While the City awaits word from USBR regarding additional water allotment, it is in the City’s best interest to declare a local emergency due to the anticipated water shortage and adopt Tier 3 water conservation rules to further encourage the public to limit their water usage. Taking these actions will help demonstrate that the City and community are taking a serious and proactive step to conserve water in hopes of making it through the water allocation year. RECOMMENDATION: By Resolution, declare/proclaim a local emergency; and review/consider/adopt further measures and policies for implementation during said local emergency. The local emergency must be reviewed at each City Council meeting until emergency conditions no longer exist. Further, by Resolution, adopt previously amended Tier III Water Conservation Measures.  BEFORE THE CITY COUNCIL OF THE CITY OF AVENAL IN THE MATTER OF: A Resolution of The City Council of The City RESOLUTION 2020- of Avenal Declaring/ Proclaiming a Local Emergency for The City of Avenal, Kings County, in the State of California Due to a Severe Water Shortage. WHEREAS, the Avenal Municipal Code, Title 4, Chapter 2, Section 4-2.05, empowers the City of Avenal to proclaim the existence or threatened existence of a local emergency when said City is affected or likely to be affected by a public emergency, subject to approval by the City Council; and WHEREAS, conditions of extreme peril to the safety of persons and property have arisen due to the lack of precipitation over the past few years and continuance of extremely dry conditions in 2020/21 resulting in a severe water shortage within the State of California which is affecting the City's annual water allocation provided by the United States Bureau of Reclamation (USBR); and WHEREAS, due to the continuance of extremely dry conditions as well as federal court actions to protect fish and wildlife as per the CVPIA and other court actions since 1992 which diverted water away from the Central Valley Project, and further, decreased water available to Ag users south of the Delta, a severe water shortage has been declared resulting in the reduction of water deliveries by USBR to its water contractors; and WHEREAS, the City Council desires to enter into an agreement with Esther O. Strong under which she will assist the City Manager, as needed, with institutional information, staff development and training, professional support services and/or special projects which may be assigned by the City Manager. WHEREAS, the reduction of water and/or an inadequate water allocation is beyond the control of the City and its limited resources; and WHEREAS, the water from the California Aqueduct, through a contract with USBR, is the City of Avenal's sole source of potable water for the Community; and WHEREAS, the allocation for 2020/2021 is not sufficient to meet the basic needs of the Community and Avenal State Prison; and WHEREAS, a water reduction will also result in reduced quality of life, increased unemployment and other direct and indirect economic impacts to Avenal; and 1 of 3  WHEREAS, in an effort to protect the people and property of Avenal, including Avenal State Prison, the local businesses, workers and residents that depend on water deliveries for their livelihood and survival, this declaration is needed at this time. WHEREAS, the Avenal City Council does hereby find that severe drought conditions and reduction in water deliveries has and will result in extreme peril and does warrant and necessitate the proclamation of the existence of a local emergency at this time. UPON MOTION OF COUNCIL MEMBER , SECONDED BY COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL REGULAR MEETING HELD ON November ___, 2020, BY THE FOLLOWING VOTE: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Alvaro Preciado, Mayor MARIA A. ORTIZ, City Clerk CITY OF AVENAL CITY OF AVENAL ****************** NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL: 1. Found the foregoing recitals to be true, correct and incorporated herein; 2. Said local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council of the City of Avenal, County of Kings, State of California; 3. The Director of Emergency Services, and the City Manager, are hereby authorized and directed to consult and work cooperatively with County, Regional, State and Federal Officials and any other agency (or agencies) as needed in order to mitigate the reduction and/or the inadequate water allocation and any other conditions which are associated to and/or affected by this local emergency; 4. The Director of Emergency Services, and the City Manager, are further authorized and directed to implement water restrictions and conservation measures as needed and required during this local emergency as included and dictated by the Avenal Municipal Code/ Ordinances, the City's Water Conservation Plan and the State of California Department of Water Resources "Urban Drought Guidebook- 2008 Updated Edition" as referenced by the Bureau of Reclamation. 2 of 3 ****************** 3 of 3  BEFORE THE CITY COUNCIL OF THE CITY OF AVENAL IN THE MATTER OF: A Resolution of The City Council of The City RESOLUTION 2020- of Avenal Adopting Emergency Tier Ill Water Conservation Measures Due to On-Going Water Shortage. WHEREAS, due to water shortage, the Avenal City Council declared a Local Emergency on November 5, 2014 which has been reviewed and enacted; and WHEREAS, Tier II Water Conservation Measures have been in effect since 2018; and WHEREAS, although there has been a decrease in water consumption, additional water conservation is needed at this time; and WHEREAS, Tier Ill Water Conservation Measures exists in order to assist in decreasing potable water consumption until a water emergency no longer exists; and WHEREAS, the reduction of water and/or an inadequate water allocation is beyond the control of the City and its limited resources; and WHEREAS, Title 6, Article 3, Section 6-4.28 of the Avenal Municipal Codes authorizes the City Council to adopt, by Resolution, and implement additional measures determined to be necessary to ensure an adequate supply of water for the City, and ensure the health and safety of the Citizens of the City; and WHEREAS, it is in the best interest of the City and the entire Community that Tier Ill Water Conservation Measures be implemented immediately. UPON MOTION OF COUNCIL MEMBER , SECONDED BY COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL SPECIAL MEETING HELD ON November ___, 2020, BY THE FOLLOWING VOTE: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Alvaro Preciado, Mayor MARIA A. ORTIZ, City Clerk 1 of 2  CITY OF AVENAL CITY OF AVENAL ****************** NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL: 1. Found the foregoing recitals to be true, correct and incorporated herein; 2. That the City Council of the City of Avenal does hereby adopt Emergency Tier Ill Water Conservation Measures (Exhibit A) consistent with Title 6, Article 3, Section 6-4.28 of the Avenal Municipal Code. ****************** 2 of 2  Exhibit A AMENDED TIER III WATER CONSERVATION MEASURES DUE TO WATER EMERGENCY REQUIRED REDUCTION: **Reduction of potable water used by all water users due to severe drought conditions until further notice. Alternate Watering Schedules for all users of water supplied by the City: Odd Number Addresses: Watering only on Mondays and Fridays from 12:00 a.m. - I1:59 p.m. Even Number Addresses: Watering only on Tuesdays and Saturdays from 12:00 a.m. - I1:59 p.m. Sundays: NO WATERING ALLOWED. Other Restrictions/Limitations for use of water supplied by the City: No person, entity or other water user shall wash motor vehicles, trailers, boats and other types of equipment without a hand-held bucket or hose equipped with a positive shut-off nozzle for quick rinses only on appropriate watering days; "Car Wash" for fundraising of any kind utilizing potable water is prohibited; All homes/apartment complexes with swimming pools require City approval prior to draining or filling pools; No open hoses or faucets; all unattended hoses shall have a spray nozzle or sprinkling device; no excessive water flow down gutters/streets or accumulation of water on properties; repair all dripping or leaking hydrants, faucets, pipes, outlets or plumbing fixtures; City-provided potable water is strictly prohibited for use to wash down sidewalks, driveways, drive approaches, curbs and gutters and/or streets to clean and/or spray down houses, buildings, etc.; Potable water shall not be transported out of the City Limits for use. Potable water is provided only to property within the City and to areas outside the City as the Council may designate, 6-4.01 AMC. <><><> We are requesting cooperation from all water users to get through this challenging time. Code Enforcement- Water Conservation Department efforts have been increased; and, violators of water conservation measures will be subject to penalties of $50, $100 or $150 per violation as per AMC 6- 4.22. 11/3/2020 Mail - Antony V. López - Outlook Re: [EXTERNAL] Request to increase 2020 water allocation - Avenal Leal, Erma O <eleal@usbr.gov> Wed 10/28/2020 12 03 PM To: MG Whit <mw484.rcm@gmail.com> Cc: Antony V. López <alopez@cityofavenal.us>; Ronald Brumley <rbrumley@cityofavenal.us> Good A ernoon, Your request has been received by Reclama on (SCCAO Office) for internal review. Thank You, Respectfully, Erma Leal Repayment Specialist - SCCAO-445 Dept. of Interior / Bureau of Reclamation Interior Region 10 - California - Great Basin South-Central California Area Office 1243 N Street, Fresno, CA 93721-1813 Voice: (559) 262-0350 Fax: (559) 262-0371 From: MG Whit <mw484.rcm@gmail.com> Sent: Tuesday, October 27, 2020 1:56 PM To: Leal, Erma O <eleal@usbr.gov> Cc: Antony V. López <alopez@cityofavenal.us>; rbrumley@cityofavenal.us <rbrumley@cityofavenal.us> Subject: [EXTERNAL] Request to increase 2020 water alloca on - Avenal This email has been received from outside of DOI - Use caution before clicking on links, opening attachments, or responding. Good afternoon, Erma: After reviewing metered water usage through September 30, 2020 of 1,647 acre feet, there is a concern that 2,273 acre feet for the 2020 water year will not be adequate or sufficient to meet the needs, including Public Health and Safety needs, of the City. Please be assured the City has continued enforcing Phase 2 water measures over the past several years for the entire City which includes Avenal State Prison. As shared many times with Reclamation in the past, “water conservation is a way of life on the west side”. Due to the potential water shortage this year and with over five months (including October usage) left in the current water year, Antony López, City Manager, has added an agenda item to the next regular meeting for the City Council to consider implementing Phase 3 water measures/restrictions. To go out into the open market to acquire additional water would potentially result in a financial hardship for the City. The City of Avenal is, therefore, requesting Reclamationʼs consideration to increase the Cityʼs 2020 water allocation by an additional 500 acre feet to meet the needs of the community through the end of the water year. https://outlook.office.com/mail/search/id/AAQkADg2Nzg1Y2MwLTg4MTktNDJjZC04ODgyLTUzYzBhZjgyN2U5NgAQAPsX7u9x%2BGRHvXA9EpFAi%2B4%3D 1/2 11/3/2020 Mail - Antony V. López - Outlook Your consideration, as well as, assistance regarding this matter would be greatly appreciated. If you require additional information, please contact Mr. López at 559-386-5766 or by email as noted above. Thank you. Melissa Whitten, Consultant 559-349-6355 Sent from my iPad https://outlook.office.com/mail/search/id/AAQkADg2Nzg1Y2MwLTg4MTktNDJjZC04ODgyLTUzYzBhZjgyN2U5NgAQAPsX7u9x%2BGRHvXA9EpFAi%2B4%3D 2/2 TO: The Honorable Mayor and City Council FROM: Antony V. López, City Manager DATE: November 5, 2020 RE: Consider Extending the Agreement with Sotomayor & Associates LLP INFORMATION The existing service provider for the Annual Audit Services is Sotomayor & Associates, LLP. The City had originally executed a three-year contract with Sotomayor & Associates LLP, which expired on June 30, 2020. The previous contract has an optional two-year extension of audit services for fiscal years 2020 and 2021. Sotomayor & Associates LLP has been in contact with City Staff regarding the two-year extension option, which they are open to still enacting. Sotomayor & Associates did note that given the recent changes in the Council, and City Staff, that the auditing services for FY 2020/2021 would require additional work. Since we are four (4) months into the new fiscal year, it is in the City’s best interest to continue contacting with Sotomayor & Associates, LLP for auditing services. RECOMMENDATION: By Resolution, authorize the City Manager and Mayor to enter into an agreement with Sotomayor & Associates, LLP extending the existing Professional Service Agreement for a period not to exceed two (2) years for Annual Audit Services. FISCAL IMPACT: Funds for the Annual Financial Audit Services are incorporated into the FY 2020-21 adopted budget.  BEFORE THE CITY COUNCIL OF THE CITY OF AVENAL IN THE MATTER OF: A Resolution of The City Council of The City RESOLUTION 2020- of Avenal Authorizing the City Manager and Mayor to Execute a Two-Year Extension to an Existing Professional Service Agreement with Sotomayor & Associates LLP for Annual Auditing Services. WHEREAS, the existing contract for Annual Audit Services with Sotomayor & Associates LLP expired June 30, 2020; and WHEREAS, the City does have a need for annual audit services in the routine course of business; and WHEREAS, the contract for Annual Audit Services with Sotomayor & Associates LLP has an optional two-year extension; and WHEREAS, both the City and Sotomayor & Associates LLP wish to enact the two-year extension. UPON MOTION OF COUNCIL MEMBER , SECONDED BY COUNCIL MEMBER , THE FOLLOWING WAS PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL AT AN OFFICIAL SPECIAL MEETING HELD ON November ___, 2020, BY THE FOLLOWING VOTE: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Alvaro Preciado, Mayor MARIA A. ORTIZ, City Clerk CITY OF AVENAL CITY OF AVENAL ****************** NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL: 1. Found the foregoing recitals to be true, correct and incorporated herein; 2. That the City Council of the City of Avenal does hereby authorize the City Manager and Mayor to execute a two-year extension to an existing professional service agreement with Sotomayor & Associates LLP for Annual Auditing Services. ****************** 1 of 1  Sotomayor& Associates, LLP Certified Public Accountants I 50 S Los RoblesAve.. Suite 450 Pasadena.California 91l OI (626)397-4900 Fax: (626) 397-4908 E-mail:sotomayor@sotomayorcpa com Web Site www.sotomayorcpa.com September 28, 2020 City of Avenal Audit Committee City of Avenal 919 Skyline Blvd. Avenal, CA 93204 We are pleased to confirm our understanding of the services we are to provide the City of Avenal for the period ended June 30, 2020. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of City of Avenal as of and for the period ended June 30, 2020. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement City of Avenal's basic financial statements. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financia l statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. We have also been engaged to report on supplementary information other than RSI that accompanies City of Avenal's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and we will provide an opinion on it in relation to the financial statements as a whole, in a report combined with our auditor's report on the financial statements. 1) Schedule of expenditures of federal awards. 2) Combining and individual nonmajor fund financial statements Audit Objectives The objective of our audit is the expression of opinions as to whether your financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. The objective also includes reporting on- • Internal control over financial reporting and compliance with provisions of laws, regulations, contracts, and award agreements, noncompliance with which could have a material effect on the financial statements in accordance with GovernmentAuditing Standards. 1  • Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on compliance with federal statutes , regulations , and the terms and conditions of federal awards that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements , Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance ). The Government Auditing Standards report on internal control over financial reporting and on compliance and other matters w ill include a paragraph that states that (1) the purpose of the report is solely to describe the scope of testing of internal control and compliance and the results of that testing , and not to provide an opinion on the effectiveness of the entity 's internal control or on compliance, and (2) the report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal contro l and compliance. The Uniform Guidance report on internal control over compliance will include a paragraph that states that the purpose of the report on internal control over compliance is solely to describe the scope of testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance . Both reports will state that the report is not suitable for any other purpose. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America ; the standards for financial audits contained in Government Auditing Standards , issued by the Comptroller Genera l of the United States; the Single Audit Act Amendments of 1996; and the provisions of the Uniform Guidance, and will include tests of accounting records, a determination of major program(s) in accordance with the Uniform Guidance , and other procedures we consider necessary to enable us to express such opinions . We will issue written reports upon completion of our Single Audit Our reports will be addressed to the Honorable Mayor and City Council of City of Avenal. We cannot provide assurance that unmodified opinions will be expressed . Circumstances may arise in which it is necessary for us to modify our opinions or add emphasis-of-matter or other-matter paragraphs. If our opinions are other than unmodified , we will discuss the reasons with you in advance . If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions , we may decline to express opinions or issue reports , or we may withdraw from this engagement. Audit Procedures-General An audit includes examining , on a test basis, evidence supporting the amounts and disclosures in the financial statements ; therefore , our audit will involve judgment about the number of transactions to be examined and the areas to be tested . An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall presentation of the financial statements . We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudu lent financial reporting, (3) misappropriation of assets , or (4) violations of laws or governmental regulations that are attributable to the government or to acts by management or employees acting on behalf of the government Because of the inherent limitations of an audit , combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions , there is a risk that material misstatements or noncompliance may exist and not be detected by us, even though the audit is properly planned and performed in accordance with U.S. generally accepted auditing standards and Government Auditing Standards . In addition , an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or on major programs. However , we will inform the appropriate level of management of any material errors, any fraudulent financial reporting , or misappropriation of assets that come to our attention . We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clear ly inconsequential , and of any material abuse that comes to our attention . We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors . Our procedures will include tests of documentary evidence support ing the transactions recorded in the accounts and may include tests of the physical existence of inventories, and direct confirmation of 2 receivables and certain other assets and liabilities by correspondence with selected indiv iduals , funding sources , creditors , and financial institutions . We will request written representat ions from your attorneys as part of the engagement , and they may bill you for responding to th is inquiry . At the conclus ion of our audit , we will require certa in written representations from you about your respo nsibilities for the financial statements ; schedule of expenditures of federa l awards ; federal award programs ; compliance with laws , regu lations , contracts , and grant agreements ; and other responsibilities required by generally accepted aud iting standards. Audit Procedures-Interna l Control Our aud it will include obtaining an understanding of the government and its environment, including internal control , sufficient to assess the risks of material misstatement of the financial statements and to design the nature , timing , and extent of further aud it procedures . Tests of controls may be performed to test the effectiveness of certain controls that we consider rele vant to preventing and detecting errors and fraud that are mater ial to the financia l statements and to preventing and detecting misstatements resu lting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements . Our tests , if performed , will be less in scope than would be necessary to render an opinion on internal control and , accordingl y , no opin ion will be expressed in our report on internal cont rol issued pursuant to Government Audit ing Standards. As required by the Uniform Guidance , we will perform tests of controls over compl iance to evaluate the effectiveness of the design and operation of contro ls that we consider relevant to preve nting or detecting material noncompliance with compliance requirements applicable to each major federal award program . Howeve r, our tests will be less in scope than would be necessary to render an opinion on those controls and , accordingly , no opinion will be expressed in our report on internal control issued pursuant to the Uniform Guidance. An audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses . Accordingly , we will express no such opinion. However , during the audit , we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICP A professional standards , Government A uditing Standards, and the Uniform Guidance . Audit Procedures-Compliance As part of obtaining reasonab le assurance about w hether the financial statements are free of mater ial misstatement , we will perform tests of City of Avenal's compliance with provisions of applicable laws , regulations , contracts , and agreements , including grant agreements . Howeve r. the objec tive of those procedures w ill not be to prov ide an opinion on overall compliance and we w ill not ex press such an opinion in our report on compliance issued pursuan t to Government Au diting Standards. The Uniform Guidan ce requires that we also plan and perform the audit to obtain reaso nable ass urance about w hether the auditee has complied with federal statutes , regulatio ns, and the terms and conditions of federal awards app licable to major programs . Our procedures will cons ist of tests of transactions and other applicable procedures described in the 0MB Compliance Supplement for the types of compliance requ irements that could have a direct and material effect on each of City of Avenal 's major programs. The purpose of these procedures will be to ex press an opinion on City of Avenal's compliance wit h requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance . Other Services We will also assist in prepari ng the financ ial statements , schedu le of expendit ures of federal awards , and related notes of City of Avena l in conform ity with U.S. generally accepted accounting princip les and the Uniform Guidance based on informat ion provided by you . These non-audit seNices do not consti tute an audit under Government Auditing Standards and such seNices will not be conducted in accordance with Government Audi ting Standards. We will perform the seNices in accordance with applicab le professiona l standards . The other seN ices are limited to the financial statements, schedule of ex pend itures of federa l awards , and related notes se N ices previous ly defined . We , in our sole professional j udgmen t, reseNe the 3 right to refuse to perform any procedure or take any action that could be construed as assuming management responsibilities. Management Responsibilities Management is responsible for (1) designing, implementing , establishing, and maintaining effective internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, including internal controls over federal awards, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there is reasonable assurance that government programs are administered in compliance with compliance requirements; and (4) ensuring that management and financial information is reliable and properly reported. Management is also responsible for implementing systems designed to achieve compliance with applicable laws, regulations , contracts, and grant agreements . You are also responsible for the selection and application of accounting principles; for the preparation and fair presentat ion of the financial statements, schedule of expenditures of federal awards , and all accompanying information in conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws and regulations (including federal statutes) and the provisions of contracts and grant agreements (including award agreements ). Your responsibilities also include identifying significant contractor relationships in wh ich the contractor has responsibility for program compliance and for the accuracy and completeness of that information. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements , (2) access to personnel, accounts , books, records, supporting documentation , and other information as needed to perform an audit under the Uniform Guidance, (3) additional information that we may request for the purpose of the audit, and (4) unrestr icted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial , both individually and in the aggregate , to the financial statements as a whole . You are respons ible for the design and implementation of programs and controls to prevent and detect fraud , and for informing us about all known or suspected fraud affecting the government involving (1) management , (2) employees who have significant roles in internal control, and (3) others where the fraud could have a material effect on the financia l statements . Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the governme nt received in communications from employees , former employees , granters, regulators, or others. In addition, you are responsible for identifying and ensuring that the government complies with applicable laws, regulations, contracts , agreements , and grants. Management is also responsible for taking timely and appropriate steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant agreements , or abuse that we report. Additionally , as required by the Uniform Guidance, it is management's responsibility to evaluate and monitor noncompliance with federal statutes, regulations, and the terms and conditions of federal awards ; take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings ; promptly follow up and take corrective action on reported audit findings ; and prepare a summary schedule of prior audit findings and a separate corrective action plan. The summary schedule of prior audit findings should be available for our review on December 201h,2020. You are responsib le for identifying all federal awards received and understand ing and complying with the compliance requirements and for the preparation of the schedule of expenditures of federal awards (including notes and noncash assistance received) in conformity with the Uniform Guidance . You agree to include our report on the schedule of expenditures of federal awards in any document that contains and indicates that we have reported on the schedule of expenditures of federal awards . You also agree to include the audited financial statements with any presentation of the schedule of expenditures of federal awards that includes our report thereon or make the audited financial statements readily available to intended users of the schedule of expenditures of federal awards no later than the date the schedule of expenditures of federal awards is issued with our report thereon. Your respons ibilities include 4 acknowledging to us in the written representation letter that (1) you are responsible for presentation of the schedule of expenditures of federal awards in accordance with the Uniform Guidance ; (2) you believe the schedule of expenditures of federal awards , including its form and content, is stated fa irly in accordance with the Uniform Guidance ; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed , the reasons for such changes); and (4) you have disclosed to us any significant assumpt ions or interpretations underlying the measurement or presentation of the schedule of expenditures of federal awards . You are also respons ible for the preparation of the other supplementary information , which we have been engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to include our report on the supplementary information in any document that contains, and indicates that we have reported on , the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon OR make the audited financial statements readily available to users of the supplementary information no later than the date the supplementary information is issued with our report thereon . Your responsibilities include acknowledging to us in the written representation letter that ( 1) you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe the supplementary information , including its form and content , is fairly presented in accordance with GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes) ; and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentat ion of the supplementary information . Management is responsib le for establishing and maintaining a process for tracking the status of audit findings and recommendations . Management is also responsible for identifying and providing report copies of previous financial audits , attestation engagements , performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements , performance audits , or studies . You are also responsible for providing management 's views on our current findings , conclus ions, and recommendations , as well as your planned corrective actions , for the report, and for the timing and format for providing that information . You agree to assume all management responsibilities relating to the financial statemen ts, schedule of expenditures of federal awards , and related notes, and any other nonaudit services we provide. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements , schedule of expenditures of federal awards, and related notes and that you have reviewed and approved the financia l statements , schedule of expenditures of federal awards , and related notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating an individual, preferably from senior management , with suitable skill, knowledge , or experience ; evaluate the adequacy and results of those services; and accept responsibility for them. Engagement Administration, Fees, and Other We may from time to time and depending on the circumstances , use third-party service providers in serving your account. We may share confidential information about you with these service providers but remain committed to maintaining the confidentiality and security of your information. Accordingly , we maintain internal policies, procedures, and safeguards to protect the confidential ity of your personal information. In addition , we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others . In the event that we are unable to secure an appropriate confidentiality agreement , you will be asked to provide your consent prior to the sharing of your confidential information with the third-party service provider. Furthermore , we w ill remain responsible for the work provided by any such third-party serv ice providers. We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. At the conclus ion of the engagement , we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings . It is management's responsibility to electronically submit the reporting 5 package (including financial statements , schedule of expenditures of federal awards, summary schedule of prior audit findings , auditor 's reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse . We will coordinate with you the electronic submission and certification. The Data Collection Form and the reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor 's reports or nine months after the end of the audit period. We will provide copies of our reports to City of Avenal ; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Sotomayor & Assoc iates LLP and constitutes confidential information. However, subject to applicable laws and regulations , audit documentat ion and appropriate individuals will be made available upon request and in a timely manner to California State Controller's Office or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings , or to carry out oversight responsibilities . We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of Sotomayor & Associates LLP personnel. Furthermore , upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide , to distribute the copies or information contained therein to others , including other governmental agencies . The audit documentation for this engagement will be retained for a minimum of five years after the report release. If we are aware that a federal awarding agency , pass-through entity, or auditee is contesting an audit finding , we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation . We expect to begin our audit on September 28th , 2020 and to issue our reports as work permits no later than December 31st , 2020 (at the request of client, field work was postponed twice). Ivan Sotomayor, CPA is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. Our fee for these services is detailed in the attached Professional Service Agreement. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation . If we elect to terminate our services for nonpayment , our engagement will be deemed to have been completed upon written notification of termination , even if we have not completed our report(s). You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination . We appreciate the opportunity to be of service to City of Avenal and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree w ith the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. _');~ ~ rt,- 0 ,,le,,Lu' Sotomayor & Associates L~ RESPONSE: This letter correctly sets forth the understanding of City of Avenal. Management signature : _ _ _ _ ______ _ Title : _ __ _ ____ _ _ _ _ ____ _ _ Date: _ ____________ _ __ _ _ Governance signature : ___________ _ Title : __ _ _ ______ ____ _ _ _ Date: ______________ __ _ _ 6