Kevin Harper CPA and Associates • •
CITY OF RANCHO PALOS VERDES
PROFESSIONAL/TECHNICAL SERVICES AGREEMENT
THIS AGREEMENT ("Agreement") is made and entered into this 19th day of
May, 2015, by and between the City of Rancho Palos Verdes (hereinafter referred to as
the "CITY") and Kevin Harper, CPA, and Associates (hereafter referred to as
"CONSULTANT").
IN CONSIDERATION of the covenants hereinafter set forth, the parties hereto
agree as follows:
ARTICLE 1
SCOPE OF SERVICES
1.1 Project Description
The Project is described as follows: professional accounting services
provided in connection with the CITY'S fraud, waste and abuse hotline as set forth in
the request for proposals, which is attached hereto as Exhibit "A" and incorporated
herein by this reference.
1.2 Description of Services
CONSULTANT shall provide professional accounting services to the CITY
on an as-needed basis in connection with the CITY'S Fraud, Waste and Abuse Hotline
as a case manager, investigator, or both. CONSULTANT'S proposal is attached hereto
as Exhibit "B" and incorporated herein by this reference.
1.3 Schedule of Work
CONSULTANT shall perform professional accounting services to the City
in response to a written request from the CITY in response to particular complaints
made to the CITY'S fraud, waste and abuse hotline. Time is of the essence and
services shall be performed promptly, as specified in Exhibit A.
ARTICLE 2
COMPENSATION
2.1 Fee
CITY agrees to compensate CONSULTANT at the not-to-exceed rate of
two hundred ($200) dollars per hour worked, to a maximum of $25,000 annually, for the
services described in Article 1. If CITY requests additional specified work that exceeds
$25,000, such additional work must be approved by the City Council, prior to
commencement of the work.
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2.2 Terms of Compensation
CONSULTANT shall submit monthly invoices for hours worked during the
prior month. CITY agrees to authorize payment for all undisputed invoice amounts
within thirty (30) days of receipt of each invoice. CITY agrees to use its best efforts to
notify CONSULTANT of any disputed invoice amounts or claimed completion
percentages within ten (10) days of the receipt of each invoice. However, CITY's failure
to timely notify CONSULTANT of a disputed amount or claimed completion percentage
shall not be deemed a waiver of CITY's right to challenge such amount or percentage.
Additionally, in the event CITY fails to pay any undisputed amounts due
CONSULTANT within forty-five (45) days after invoices are received by CITY then CITY
agrees that CONSULTANT shall have the right to consider said default a total breach of
this Agreement and be terminated by CONSULTANT without liability to CONSULTANT
upon ten (10) working days advance written notice.
2.3 Term of Agreement
This Agreement shall commence on May 19, 2015 and shall terminate on
June 30, 2016, unless sooner terminated pursuant to Article 4 of this Agreement. This
Agreement may be extended upon the mutual written agreement of the parties.
ARTICLE 3
INDEMNIFICATION AND INSURANCE
3.1 Indemnification
CONSULTANT shall defend, indemnify, and hold the CITY, its officials,
officers, employees, agents and independent contractors serving in the role of CITY
officials, and volunteers (collectively "Indemnitees") free and harmless from any and all
claims, demands, causes of action, costs, expenses, liabilities, losses, damages or
injuries, in law or equity, to property or persons, including wrongful death (collectively
"Claims"), arising from any negligent or wrongful acts or omissions of CONSULTANT,
its officials, officers, employees or agents in connection with the performance of this
Agreement, including without limitation the payment of all consequential damages,
attorneys' fees, and other related costs and expenses. With respect to any and all such
Claims, CONSULTANT shall defend Indemnitees, with counsel satisfactory to CITY, at
CONSULTANT's own cost, expense, and risk and shall pay and satisfy any judgment,
award, or decree that may be rendered against Indemnitees. CONSULTANT shall
reimburse Indemnitees for any and all legal expenses and costs incurred by each of
them in connection therewith or in enforcing the indemnity herein provided.
CONSULTANT's obligation to indemnify shall not be restricted to insurance proceeds, if
any, received by CONSULTANT or Indemnitees. All duties of CONSULTANT under this
Section shall survive termination of this Agreement.
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3.2 General Liability
CONSULTANT shall at all times during the term of the Agreement carry,
maintain, and keep in full force and effect, a policy or policies of Commercial General
Liability Insurance, with minimum limits of one million dollars ($1,000,000) for each
occurrence and two million dollars ($2,000,000) general aggregate for bodily injury,
death, loss or property damage for products or completed operations and any and all
other activities undertaken by CONSULTANT in the performance of this Agreement.
Said policy or policies shall be issued by an insurer admitted or authorized to do
business in the State of California and rated in A.M. Best's Insurance Guide with a
rating of A:VII or better.
3.3 Professional Liability
CONSULTANT shall at all times during the term of this Agreement, carry,
maintain, and keep in full force and effect a policy or policies of professional liability
insurance with a minimum limit of one million dollars ($1,000,000) per claim and
aggregate for errors and/or omissions of CONSULTANT in the performance of this
Agreement. Said policy or policies shall be issued by an insurer admitted or authorized
to do business in the State of California and rated in Best's Insurance Guide with a
rating of A:VII or better. If a "claims made" policy is provided, such policy shall be
maintained in effect from the date of performance of work or services on the CITY's
behalf until three (3) years after the date of work or services are accepted as completed.
Coverage for the post-completion period may be provided by renewal or replacement of
the policy for each of the three (3) years or by a three-year extended reporting period
endorsement, which reinstates all limits for the extended reporting period. If any such
policy and/or policies have a retroactive date, that date shall be no later than the date of
first performance of work or services on behalf of the CITY. Renewal or replacement
policies shall not allow for any advancement of such retroactive date.
3.4 Automobile Liability
CONSULTANT shall at all times during the term of this Agreement obtain,
maintain, and keep in full force and effect, a policy or policies of Automobile Liability
Insurance, with minimum of one million dollars ($1,000,000) combined single limit
3.5 Worker's Compensation
CONSULTANT agrees to maintain in force at all times during the
performance of work under this Agreement worker's compensation insurance as
required by law. CONSULTANT shall require any subcontractor similarly to provide
such compensation insurance for their respective employees.
3.6 Notice of Cancellation
(a) CONSULTANT shall provide immediate notice to the CITY if
CONSULTANT receives a cancellation or policy revision notice from the insurer.
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110
(b) CONSULTANT agrees that it will not cancel or reduce any required
insurance coverage. CONSULTANT agrees that if it does not keep the aforesaid
insurance in full force and effect, CITY may either immediately terminate this Agreement
or, if insurance is available at a reasonable cost, CITY may take out the necessary
insurance and pay, at CONSULTANT's expense, the premium thereon.
3.7 Certificate of Insurance
At all times during the term of this Agreement, CONSULTANT shall
maintain on file with the CITY Clerk certificates of insurance showing that the aforesaid
policies are in effect.
3.8 Primary Coverage
The insurance provided by CONSULTANT shall be primary to any
coverage available to CITY. The insurance policies (other than workers compensation
and professional liability) shall include provisions for waiver of subrogation.
ARTICLE 4
TERMINATION
4.1 Termination of Agreement
This Agreement may be terminated at any time, with or without cause, by
the CITY upon thirty (10) days prior written notice or by CONSULTANT upon ninety (90)
days prior written notice. Notice shall be deemed served if completed in compliance
with Section 6.14.
In the event of termination or cancellation of this Agreement by
CONSULTANT or CITY, due to no fault or failure of performance by CONSULTANT,
CONSULTANT shall be paid compensation for all services performed by
CONSULTANT for work satisfactorily done in accordance with all of the terms and
provisions of this Agreement as determined by the CITY; provided, in no event shall the
amount of money paid under the foregoing provisions of this paragraph exceed the
amount which would have been paid to CONSULTANT for the full performance of the
services described in this Agreement.
ARTICLE 5
OWNERSHIP OF DOCUMENTS
5.1 Ownership of Documents and Work Product
All final documents, reports, information, data, exhibits created or
developed by CONSULTANT pursuant to this Agreement ("Written Products") shall be
and remain the property of the CITY without restriction or limitation upon its use,
duplication or dissemination by the CITY.
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ARTICLE 6
GENERAL PROVISIONS
6.1 Representation
The CITY representative shall be the City Manager or his or her designee,
and CONSULTANT shall notify CITY of CONSULTANT's designated representative.
These individuals shall be the primary contact persons for the parties regarding
performance of this Agreement.
6.2 Fair Employment Practices/Equal Opportunity Acts
In the performance of this Agreement, CONSULTANT shall comply with all
applicable provisions of the California Fair Employment Practices Act (California
Government Code Sections 12940-48), the applicable equal employment provisions of
the Civil Rights Act of 1964 (42 U.S.C. 200e-217), and the Americans with Disabilities
Act of 1990 (42 U.S.C. § 11200, et seq.).
6.3 Audit
The CITY or its representative shall have the option of inspecting,
auditing, or inspecting and auditing all records and other written materials used by
CONSULTANT in preparing its billings to the CITY as a condition precedent to any
payment to CONSULTANT. CONSULTANT will promptly furnish documents requested
by the CITY. Additionally, CONSULTANT shall be subject to State Auditor examination
and audit at the request of the CITY or as part of any audit of the CITY, for a period of
three (3) years after final payment under this Agreement.
6.4 Personnel
CONSULTANT represents that it has, or shall secure at its own expense,
all personnel required to perform CONSULTANT's services under this Agreement.
CONSULTANT shall make reasonable efforts to maintain the continuity of
CONSULTANT's staff who are assigned to perform the services hereunder and shall
obtain the approval of the City Manager of all proposed staff members who will perform
such services.
6.5 CONSULTANT's Representations
CONSULTANT represents, covenants and agrees that CONSULTANT is
qualified and capable of furnishing the labor and expertise necessary to perform the
services in accordance with the terms and conditions set forth in this Agreement
6.6 Legal Action
6.6.1 Should either party to this Agreement bring legal action against the
other, the validity, interpretation, and performance of this
Agreement shall be controlled by and construed under the laws of
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the State of California, excluding California's choice of law rules.
Venue for any such action relating to this Agreement shall be in the
Los Angeles County Superior Court.
6.6.2 If any legal action or other proceeding, including action for
declaratory relief, is brought for the enforcement of this Agreement
or because of an alleged dispute, breach, default or
misrepresentation in connection with this Agreement, the prevailing
party shall be entitled to recover reasonable attorneys' fees,
experts' fees, and other costs, in addition to any other relief to
which the party may be entitled.
6.6.3 Should any legal action about a project between CITY and a party
other than CONSULTANT require the testimony of CONSULTANT
when there is no allegation that CONSULTANT was negligent,
CITY shall compensate CONSULTANT for its testimony and
preparation to testify at the hourly rates in effect at the time of such
testimony.
6.7 Assignment
Neither this Agreement nor any part thereof shall be assigned by
CONSULTANT without the prior written consent of the CITY. Any such purported
assignment without written consent shall be null and void, and CONSULTANT shall hold
harmless, defend and indemnify the CITY and its officers, officials, employees, agents
and representatives with respect to any claim, demand or action arising from any
unauthorized assignment.
6.8 Independent Contractor
CONSULTANT is and shall at all times remain, as to the CITY, a wholly
independent contractor. Neither the CITY nor any of its agents shall have control over
the conduct of CONSULTANT or any of the CONSULTANT's employees, except as
herein set forth, and CONSULTANT is free to dispose of all portions of its time and
activities which it is not obligated to devote to the CITY in such a manner and to such
persons, firms, or corporations as the CONSULTANT wishes except as expressly
provided in this Agreement. CONSULTANT shall have no power to incur any debt,
obligation, or liability on behalf of the CITY or otherwise act on behalf of the CITY as an
agent. CONSULTANT shall not, at any time or in any manner, represent that it or any of
its agents, servants or employees, are in any manner agents, servants or employees of
CITY. CONSULTANT agrees to pay all required taxes on amounts paid to
CONSULTANT under this Agreement, and to indemnify and hold the CITY harmless
from any and all taxes, assessments, penalties, and interest asserted against the CITY
by reason of the independent contractor relationship created by this Agreement.
CONSULTANT shall fully comply with the workers' compensation law regarding
CONSULTANT and its employees. CONSULTANT further agrees to indemnify and
hold the CITY harmless from any failure of CONSULTANT to comply with applicable
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workers' compensation laws. The CITY shall have the right to offset against the amount
of any fees due to CONSULTANT under this Agreement any amount due to the CITY
from CONSULTANT as a result of its failure to promptly pay to the CITY any
reimbursement or indemnification arising under this Article.
6.9 Titles
The titles used in this Agreement are for general reference only and are
not part of the Agreement.
6.10 Entire Agreement
This Agreement represents the entire and integrated agreement between
CITY and CONSULTANT and supersedes all prior negotiations, representations or
agreements, either written or oral. This Agreement may be modified or amended, or
provisions or breach may be waived, only by subsequent written agreement signed by
both parties.
6.11 Construction
In the event of any asserted ambiguity in, or dispute regarding the
interpretation of any matter herein, the interpretation of this Agreement shall not be
resolved by any rules of interpretation providing for interpretation against the party who
causes the uncertainty to exist or against the party who drafted the Agreement or who
drafted that portion of the Agreement.
6.12 Non-Waiver of Terms, Rights and Remedies
Waiver by either party of any one or more of the conditions of performance
under this Agreement shall not be a waiver of any other condition of performance under
this Agreement. In no event shall the making by the CITY of any payment to
CONSULTANT constitute or be construed as a waiver by the CITY of any breach of
covenant, or any default which may then exist on the part of CONSULTANT, and the
making of any such payment by the CITY shall in no way impair or prejudice any right or
remedy available to the CITY with regard to such breach or default.
6.13 Severability
If any term or portion of this Agreement is held to be invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions
of this Agreement shall continue in full force and effect.
6.14 Notice
Except as otherwise required by law, any notice, payment or other
communication authorized or required by this Agreement shall be in writing and shall be
deemed received on (a) the day of delivery if delivered by hand or overnight courier
service during CITY's regular business hours or (b) on the third business day following
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deposit in the United States mail, postage prepaid, to the addresses listed below, or at
such other address as one party may notify the other:
To CITY:
Responsible Person: Doug Willmore, City Manager
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
Rancho Palos Verdes, CA 90275
To CONSULTANT:
Responsible Person: KEVIN HARPER, C.P.A.
Address: KEVIN HARPER, C.P.A., &ASSOCIATES
20885 REDWOOD ROAD
CASTRO VALLEY, CA. 94546
[Signatures on next page.]
Page 8 of 11
HOTLINE TPA-FINANCIAL Agreement for Professional/Technical Services
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.
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Page 9 of 11
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0 •
EXHIBIT "A"
Page 10 of 11
HOTLINE TPA-FINANCIAL Agreement for Professional/Technical Services
•
City of Rancho Palos Verdes
Request for Proposals
Fraud, Waste, & Abuse Hotline
Third-Party Investigative Providers (Financial)
Due: 5:00 p.m. on April 22, 2015
City of Rancho Palos Verdes
Attention: Sean M. Robinson, Human Resources Manager
30940 Hawthorne Blvd, Rancho Palos Verdes, CA 90275
Phone: (310) 544-5331 I Email: Srobinsonrpvca.gov
City of Rancho Palos Verdes 40
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 2 of 16
CITY OF RANCHO PALOS VERDES REQUEST FOR PROPOSALS
FRAUD, WASTE, & ABUSE HOTLINE SERVICE
Third-Party Investigative Providers (Financial)
1. INTRODUCTION AND PROJECT
The City of Rancho Palos Verdes is requesting proposals from qualified professionals to supplement
the implementation of an Anonymous Fraud, Waste, & Abuse Hotline (Hotline). The successful
proposer will be responsible for conducting impartial external analysis of reports submitted to the
Hotline. Specifically, the City is seeking a Certified Public Accounting firm with extensive experience
working for public agencies in California to serve as an independent municipal financial and accounting
expert in conjunction with the Hotline implementation.
The City will select one or more firms, based on demonstrated competence and a cost effective
approach, to enter into an on-call, services-as-needed Professional Services Agreement (PSA) to
provide as-needed service for the City in connection with certain reports submitted to the Hotline with
regard to financial matters and allegations of abuse by a City Council Member, the City's attorneys, City
staff, or by outside vendors. Implementation of the Hotline is anticipated by the end of April, 2015. The
Professional Services Agreement will be in place by that time.
2. BACKGROUND
The City of Rancho Palos Verdes is a scenic, upscale, residential coastal community, with a population
of approximately 42,000, located on the Palos Verdes Peninsula of southwestern Los Angeles County.
The City of Rancho Palos Verdes is a contract city, meaning that some services are provided by contract
with agencies (both public and private) and some services are delivered by the City's own employees.
City Attorney services are delivered pursuant to a contract with Richards, Watson & Gershon. Liebert,
Cassidy, Whitmore provides legal services to the City in connection with personnel matters, and other
outside attorneys are retained from time to time, as needed by the City. Police and fire protection is
provided by the County of Los Angeles. The County of Los Angeles also provides sanitary, sewer and
other specialized public works services, while library services are provided through a special district.
Services provided by the City are construction and maintenance of streets and other infrastructure,
planning and zoning activities, recreational activities, and an extensive system of public parks, open
space and trails. Solid waste collection services are provided pursuant to contractual agreements with
EDCO and UWS. The City has an in-house Department of Finance. Auditing services are provided by
an independent certified public accounting firm (currently Vavrinek, Trine & Day, LLP).
City Government: Rancho Palos Verdes is a General Law City and has operated under the Council-
Manager form of government since its incorporation in 1973. Policy-making and legislative authority
are vested in the governing City Council, which consists of five Council Members, including the Mayor
and Mayor Pro-Tem. The City Council is elected on a non-partisan, at-large basis. Council Members
are elected to four-year staggered terms with two or three Council Members elected every two years.
The Council designates the Mayor and Mayor Pro-Tem for a one-year term. The City Manager is
responsible for carrying out the policies and ordinances of the governing council, for overseeing the
day-to-day operations of the government, and for appointing the heads of the government's
departments. The City is fiscally sound and functions on an annual budget cycle.
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 3 of 16
Labor Force: The City of Rancho Palos Verdes has 62 authorized full time positions for FY 14-15, and
its departments include an Administration Department, Finance Department, Community Development
Department, Public Works Department and a Park and Recreation Department. Presently there is one
bargaining unit that incorporates all employees minus the management staff.
3. SITUATION
The City began its research regarding the implementation of a confidential and anonymous city-wide
Fraud, Waste, and Abuse Hotline in the fall of 2013, including the best practices associated with the
development, implementation, and coordination of an internal and external Hotline. The City Council
authorized the Deputy City Manager to execute a Master Services Agreement with The Network, Inc.
on February 17, 2015.
The intent of this Request for Proposals (RFP) is to solicit service proposals from qualified firms to
professional services to the City by entering into a Professional Services Agreement with the City for the
review, analysis, and recommendations necessary in the investigation and processing of certain received
Hotline reports. Specific to this RFP, the proposer will be responsible for the validation or invalidation of
reports submitted by employees, residents, and non-resident concerned persons, which fall beyond the
capacity of Staff to investigate, with regard to allegations of fraud, waste, abuse, and other wrongdoing in
connection with the City of Rancho Palos Verdes government.
The contract to be awarded will be for an initial period of one (1) year, with up to three (3) additional,
one (1) year options to renew at the sole discretion of the City. Therefore, proposals should reflect
the maximum four (4) year term of the contract.
4. SCOPE OF SERVICES REQUIRED
All proposals must be made on the basis of, and either meet or exceed, the requirements
contained herein. The City of Rancho Palos Verdes is seeking the services of a highly qualified
certified public accounting firm with extensive experience with California municipalities to assist with
performing investigative services and/or case management services in connection with reports
submitted via the Hotline. The successful proposer will demonstrate:
Advanced knowledge of the laws and practices related to financial services,
financial reporting, forensic accounting, and financial auditing services in a
municipal governmental setting. These should include specifically articulated
knowledge of the policies, practices, and laws governing each of the
aforementioned service areas. The successful proposers will be expected to
comply with City Council direction in accordance with City Council Policy No.
50, "The Case Manager shall be sufficiently trained to evaluate the validity
and urgency of the Report and may review any Hotline Report with the City
Attorney and City Manager, as appropriate, to determine if further investigation
is warranted. Depending on the subject matter of the Hotline report, the Case
Manager could be a City employee or an independent third-party."
The definition for Investigator in the Hotline Policy includes the following:
City of Rancho Palos Verdes • 40 ,
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 4 of 16
"There might be times when the complexity and risk associated with some
Hotline Reports could require additional resources or Experts currently not
available within the City who may be utilized to assist in the investigation,
oversee the investigation, or to conduct an independent review. These third-
party Experts may include, but are not limited to: the Case Manager, an
independent CPA, an independent auditor, specialized labor counsel, a
Certified Fraud Examiner, or an independent legal expert."
This RFP enables the City to review the qualifications of interested CPA firms
and recommend a firm or firms to be retained as the CPA Expert that would
serve in the capacity of Case Manager or Investigator based upon the Incident
category reported, as well the facts and circumstances contained in the Hotline
Report. Every Incident Report of an accounting/audit irregularity, fraud,
improper loans to employees or officials or kickbacks would be directed to the
CPA Expert in the role of Case Manager to ensure unbiased case processing.
As an example of the CPA Expert serving as the Case Manager: the retained
CPA Expert would serve as the Case Manager (and not as an Investigator) in
the event the Hotline Report asserts a significant misrepresentation of the
City's finances. These could include, but are not limited to, the adopted
budget, Five-Year Financial Model, Capital Improvement Program, the audited
financial statements included in the Comprehensive Annual Financial Report,
or any other financial information that gives rise to a significant accounting or
auditing irregularity.
As an example of the CPA Expert serving as an Investigator: the retained CPA
is contacted by the Case Manager (likely the HR Manager), who
communicates that based upon a review of the Hotline Report asserting the
theft of cash by an employee or other party, the HR Manager believes the
alleged theft warrants an independent investigation by the CPA Expert.
5. QUALIFICATIONS AND CRITERIA
Qualifications: The City of Rancho Palos Verdes will select one or more firms for all the outlined Scope
of Services on the basis of qualifications, experience and cost. The following are the minimum
qualifications to be used to evaluate the responses to this Request for Proposals:
1. Proposers must demonstrate possession of the resources and capability to provide the
materials and services as described herein. All Proposers must submit the documentation
indicated below with their proposal. Failure to provide any of the required documentation shall
be cause for proposal to be deemed non-responsive and rejected.
2. Proposers must have a minimum of five (5) years of verifiable experience providing external
accounting and auditing services for California agencies.
3. Proposers must have performed an independent audit of the financial statements of at least two
(2) local California municipalities during the last two (2) years.
City of Rancho Palos Verdes 0 •
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 5 of 16
4. The proposer must have performed at least two (2) agreed upon procedure attestation
engagements of any alleged fraud, accounting/auditing irregularity, defalcation, theft, or any
similar engagements for at least one (1) local California municipality during the last two (2) years.
5. The proposer has a demonstrated track record of success in handling all aspects of financial
services investigations to public entities in the State of California.
6. Each proposer shall provide five (5) references, preferably from governmental agencies, for
relevant work performed in the past five (5) years. When possible, include references from cities
with size and characteristics comparable to the City of Rancho Palos Verdes.
7. The proposer must be directly responsible for the management of the account, and all personnel
responsible for the account must be employees of the firm.
8. The proposer must not have a conflict of interest with the CITY, including, but not limited to, any
member of the City Council, City staff, any of its independent contractors or its independent
financial statement auditor (Vavrinek, Trine & Day, LLP) currently serving the CITY.
Selection Criteria: The City of Rancho Palos Verdes will conduct a comprehensive, fair, and impartial
evaluation of the proposals received in response to the Request for Proposals. All proposals received
from vendors will be reviewed and evaluated by a committee established by the City. The names,
information, or experience of the individual members will not be made available to any vendor. The
Evaluation Committee will first screen all proposals submitted, according to the minimum qualifications
set forth above. The following criteria will be used in reviewing and comparing the proposals and in
determining the most responsive bids:
1. Qualifications, background and prior experience of the firm, experience of key staff assigned to
oversee services provided to the City of Rancho Palos Verdes, evaluation of size and scope of
similar work performed on those projects.
2. Cost and Fees to the City of Rancho Palos Verdes for handling matters. Cost is not the sole
determining factor but will be taken into consideration. Proposers must offer services at a rate
comparable to the rates provided to other governmental agencies for similar work. Offering a
higher rate to the City of Rancho Palos Verdes than the comparable rate offered to other
organizations with comparable specifications is grounds for disqualification of the Proposer. If
rates differ for different types or levels of service, the Proposer's proposal should illustrate those
differences.
3. References including past performance of proposer.
4. Responsiveness to the Request for Proposals and quality of the proposal.
6. FORMAT AND DELIVERY OF RESPONSES
Respondents are asked to submit six (6) copies of proposals in sufficient detail to allow for a thorough
evaluation and comparative analysis. The proposals should include at minimum, the following
information in a sectionalized format addressing all phases of work in the Request for Proposals:
Format: Limit quotations to 20 typed 8.5" X 11" pages, or fewer, on white bond paper, single sided
(excluding cover letter and attachments). You may attach a firm brochure if you wish, but it must be as
a separate attachment and independent from the required elements noted above.
City of Rancho Palos Verdes • • .
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
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1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all
borders.
2. Organize your proposal in the order described above.
3. Provide one (1) unbound original, in addition to the six, of your firm's response and one (1)
electronic version.
4. Prominently label the envelope/package: "RFP for Fraud, Waste, and Abuse Hotline Third-Party
Investigative Providers (Financial)" and include the name of the prime respondent (Sean M.
Robinson).
Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid
for a period not less than ninety (90) days from the date of submittal. If the proposal contemplates the
use of sub-contractors, the sub-contractors shall be identified in the cover letter. If the proposal is
submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually
bind the business entity. With respect to the business entity, the cover letter shall also include: the
identification of the business entity, including the name, address and telephone number of the business
entity; and the name, title, address and telephone number of a contact person during the proposal
evaluation period.
Introduction: Present an introduction of the proposal and your understanding of the assignment and
significant steps, methods and procedures to be employed by the proposer to ensure quality
deliverables that can be delivered within the required time frames (the City's expectation is that initial
validation of reports will occur within ten business days, with further, more in-depth investigations being
resolved as expeditiously as possible) and your identified budget.
General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions
it.
Work Plan: Present concepts for conducting the work plan and interrelationship of all products. Define
the scope of each task including the depth and scope of analysis or research proposed.
Schedule: Recommend a schedule of work indicating specific milestones in terms of report analysis,
estimated investigation timelines, and provided recommendations.
Fee and Costs: Although an important aspect of consideration, the financial cost estimate will not be
the sole justification for consideration. Negotiations may or may not be conducted with the proposer;
therefore, the proposal submitted should contain the proposer's most favorable terms and conditions,
since selection and award may be made without discussion with any firm. All prices should reflect "not
to exceed" amounts based upon "on-call" hourly investigatory rates. The City's expectation is that
services will be provided upon request, once a Professional Services Agreement has been executed.
Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her
qualifications, including name(s), title(s), detailed professional resume(s), and past experience in similar
work efforts/products of key personnel who will be working on the assignment. Provide a list of specific
related work projects that have been completed by the proposer which are directly related to the
assignment described in the Request for Proposals. Note the specific individuals who completed such
•
.
City of Rancho Palos Verdes 11111 0
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 7 of 16
project(s). Identify the role and responsibility of each member of the project team. Include the amount
of time key personnel will be involved in the respective portions of the assignment. Respondents are
encouraged to supply relevant examples of their professional product. Provide a list of references.
Delivery: Responses are due on or before 5:00 p.m. on Thursday, April 22, 2015. Late responses will
not be accepted. Deliver the responses to:
City of Rancho Palos Verdes
Attention: Sean M. Robinson, Human Resources Manager
30940 Hawthorne Blvd
Rancho Palos Verdes, CA 90275
If you have any questions regarding this Request for Proposals, please contact Sean M. Robinson by
telephone at (310) 544-5331 or via email at Srobinson@rpvca.gov.
Withdrawal and Resubmittal: Prior to the submittal deadline, a proposer may request withdrawal of
a previously submitted proposal in order to amend and resubmit a proposal. Resubmitted proposals
must be received prior to the stated RFP deadline.
7. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION
At any time prior to the due date for responses, the City of Rancho Palos Verdes may make changes,
amendments, and addenda to this solicitation, including changing the date due to allow respondents
time to address such changes. Addenda, changes and amendments, if made will be posted on the
City's website (www.rpvca.gov), which is deemed adequate notice. A proposer may make a request to
the City's project manager to be placed on a list of persons to receive notice of any such addenda,
changes, or amendments. The preferred manner of communication is via e-mail due to its timeliness.
The Human Resources Manager, Mr. Sean M. Robinson, may be reached by email
at Srobinson@rpvca.gov.
8. CONDITION FOR RESPONSES TO REQUEST FOR PROPOSAL
The following conditions apply to the Request for Proposals process:
A. Nothing contained in this Request for Proposals shall create any contractual relationship
between the respondent and the City of Rancho Palos Verdes.
B. This Request for Proposals does not obligate the City of Rancho Palos Verdes to establish a list
of service providers qualified as prime contractors, or award a contract to any respondent. The
City of Rancho Palos Verdes reserves the right to amend or cancel the Request for Proposals
without prior notice, at any time, at its sole discretion.
C. The City of Rancho Palos Verdes shall not be liable for any expenses incurred by any individual
or organization in connection with the Request for Proposals.
D. No conversations or agreements with any officer, agent or employee of the City of Rancho Palos
Verdes shall affect or modify any terms of this Request for Proposals. Oral communications or
City of Rancho Palos Verdes • • .
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 8 of 16
any written/e-mail materials provided by any person other than the designated contact staff of
the City of Rancho Palos Verdes shall not be considered binding.
E. The City of Rancho Palos Verdes reserves the right, in its sole discretion, to accept or reject any
or all proposals without prior notice and to waive any minor irregularities of defects in a proposal.
The City of Rancho Palos Verdes reserves the right to seek clarification on a proposal with any
source.
F. The dates, times and sequence of events related to this Request for Proposals shall ultimately
be determined by the City of Rancho Palos Verdes. The schedule is subject to change, at the
sole discretion of the City of Rancho Palos Verdes, although the City will attempt to follow it and,
if it must be altered, will attempt to provide reasonable notice of the changes.
G. Respondents shall not issue any news release pertaining to this Request for Proposals or the
City of Rancho Palos Verdes without prior written approval of the City.
H. All submitted proposals and information included herein or attached thereto, shall become public
record upon delivery to the City of Rancho Palos Verdes.
9. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST
The City of Rancho Palos Verdes, at its sole discretion and for any reason whatsoever, may withdraw
this solicitation at any time.
10.STANDARD TERMS AND CONDITIONS
Prior to the award of any work hereunder, the City and the proposer shall enter into a written contract
(an example of which is attached hereto) for services. Proposers responding to this Request for
Proposals are strongly encouraged to review all the terms and conditions of the Contract.
s
City of Rancho Palos Verdes • 0
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Page 9 of 16
ATTACHMENT 1
MINIMUM QUALIFICATIONS CERTIFICATION
Proposer Firm Name
The Proposer must substantiate that the firm satisfies all of the Minimum Qualifications stated
within this RFP, to the CITY's satisfaction, to be given further consideration. The statement
must contain sufficient information as prescribed to assure the CITY of its accuracy. Failure
to satisfy each of the Minimum Qualifications, based on the CITY's sole judgment, will result in
the immediate rejection of the Proposal.
The Proposer must complete all of the Minimum Qualification statements listed below before
signing. The signature of the authorized representative of the Proposer warrants that the
Proposer has met all of the Minimum Qualifications.
1) The Proposer has been a certified public accounting firm in the same name or organization
serving California government agencies for at least five (5) years.
U Yes / U No
2) The Proposer has direct responsibility for the management of the City's account, and all
personnel responsible for the account are employees of the firm.
U Yes / U No
3) The Proposer does not have, nor potentially has, a conflict of interest with the CITY,
including, but not limited to, any member of the City Council, City Staff, its advisors and
contractors, its auditors, other consultants currently serving the CITY.
U Yes / U No
4) The Proposer can provide verifiable references of local California government agencies.
U Yes / U No
Authorized Signature
Print or Type Name
Title
Date
City of Rancho Palos Verdes 110 e .
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 10 of 16
ATTACHMENT 2
COMPANY QUESTIONNAIRE
Proposer Firm Name
Proposer's Legal Name
Type of Business (Corporation, Partnerships, Individual, etc.)
Headquarters Address
Address of Office of Proposer That Would Manage the Account (if different)
Proposer Contact Name
Telephone Number Fax Number Email Address
Proposer Back-up Contact Name
Telephone Number Fax Number Email Address
Signer (authorized to bind the Proposer) Date
Name and Title of Authorized Signer (Please type or print)
Signer (authorized to bind the Proposer) Date
Name and Title of Authorized Signer (Please print)
•
City of Rancho Palos Verdes. 41, •
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Page 11 of 16
ATTACHMENT 3
WARRANTIES
Proposer Firm Name
Proposer agrees to the incorporation of the following warranties in the proposed engagement:
Proposer warrants that it maintains or will obtain, at its expense prior to
engagement, required insurance policy as stated herein for negligent acts or
omissions and that such coverage is applicable.
Proposer warrants all information and statements in this RFP are complete
and true. Any statement or claim found to be incomplete, misleading, or false
will be grounds for immediate disqualification or dismissal and may be subject
to legal action.
Proposer warrants this proposal is genuine, and not sham or collusive, nor made
in the interest or on behalf of any person not named therein; the proposer has
not directly or indirectly induced or solicited any other proposer to put in a sham
bid, or any other person,firm or corporation to refrain from submitting a proposal,
and the Proposer has not in any manner sought by collusion to secure for
themselves an advantage over any other proposer.
Authorized Signature
Print or Type Name
Title Date
City of Rancho Palos Verdes •
Request for Proposals0
Fraud,Waste,&Abuse Hotline—Third- arty Investigative Providers(Financial) •
Page 12 of 16
ATTACHMENT 4
FEE PROPOSAL
Proposer Firm Name
Subject to advance approval by the CITY, the CITY shall reimburse the
selected Consultant for reasonable travel costs incurred, including airfare,
transportation, lodging and meals in conjunction with attending local
meetings in the performance of the engagement. Consultant shall furnish
the CITY with evidence of such costs incurred along with written request
for reimbursement. The selected Consultant shall be solely responsible for
incidental costs, including but not limited to, printing, clerical support in
delivery of services and the production of written reports.
Each Proposer shall provide its Fee Proposal based upon providing on-
call, as-needed services upon requested, detailed by billable hours.
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—"party Investigative Providers(Financial)
Page 13 of 16
ATTACHMENT 5
QUESTIONNAIRE
Organization
Provide the address of the office that will service this account.
Give a brief description of your firm's history as a certified public accounting firm
that serves California municipalities, including the year of organization. As of
March 1, 2015, for how many years has your firm provided services serving
California municipalities?
What are your firm's consulting specialties and strengths?
What differentiates your firm from your competitors?
Does your primary consultant (ex. project manager) assigned to the CITY have
any prior hotline experience with local California governmental agencies, and has
that person been employed by Proposer for at least one (1) year?
U Yes / U No
Clients
Please provide a listing of clients that may be used as reference checks:
Name of Client Contact Name Contact Number Contact Email
City of Rancho Palos Verdes
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Fraud,Waste,&Abuse Hotline—Third- arty Investigative Providers(Financial)
Page 14 of 16
Standards of Conduct
Disclose any relationship you have or have had with any City Council members,
consultants, or CITY employees. Briefly describe your philosophy relating to the
selected Consultant's relationship with Council members and Staff.
Disclose any gifts (meals, tickets, anything of value over $50, etc.) that you have
given to or received from any City Council member, consultants, or CITY
employee in the last 12 months. If 'Yes', please disclose them using "Gift
Disclosure Form."
For the past 10 years, has the firm, its officers or principals or any affiliate ever:
a. Been the focus of a non-routine inquiry or investigation or a similar inquiry
or investigation from any federal, state or self-regulatory body or organization;
b. Settled any litigation concerning breach of fiduciary responsibility or
other investment related matters; or
c. Submitted a claim to your error & omission, fiduciary liability and/or fidelity
bond insurance carrier(s)?
If'yes', please provide details and the current status of proceedings.
* 0
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 15 of 16
ATTACHMENT 6
Gift Disclosure Form
Proposer Firm Name
No. Date Given to / Description of Gifts 1 Value (US$)
(mm/dd/yy) Received from
'Gifts could be in the form of meals, tickets, paid travel, items of value over$50, etc.
•
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Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 16 of 16
ATTACHMENT 7
Disclosure Form —
Communication with City Staff, and/or City Council
Proposer Firm Name
Names, Dates and Description Of Information Provided/Received
No. And/Or Nature Of Communication
0 •
EXHIBIT "B"
Page 11 of 11
HOTLINE TPA-FINANCIAL Agreement for Professional/Technical Services
' PROPOSAL
for
FRAUD, WASTE & ABUSE HOTLINE THIRD-PARTY
' INVESTIGATIVE PROVIDERS (FINANCIAL)
to the
irt-F; irr-ve
, , ,,
IApril 22,2015
1
' Kevin W. Harper CPA & Associates
I
IKevin W. Harper CPA & Associates
I
I
I
April 22,2015
Mr. Sean M. Robinson
I
Human Resources Manager
City of Rancho Palos Verdes
30940 Hawthorne Blvd.
IRancho Palos Verdes,CA 90275
Dear Mr. Robinson:
I We are pleased to present our proposal to the City of Rancho Palos Verdes ("the City")to provide
rovide
Ion-call third party investigative services related to the City's fraud,waste and abuse hotline.
Kevin Harper will be your point of contact throughout the term of this engagement. His contact
information is as follows:
IKevin W. Harper, Managing Partner
20885 Redwood Road#202
I
Castro Valley, CA 94546
(510) 593-5037
kharper@kevinharpercpa.com
IThis proposal shall remain valid for a period of ninety days.
I
We appreciate this opportunity to present the qualifications of our firm and look forward to the
opportunity to work with you. If we can answer any questions during your selection process,
please let me know.
IYours very truly,
I14.0."ISIN% L\/, VH-Lit--N
Kevin W. Harper, CPA
I
I
I
20885 Redwood Road, Suite 202, Castro Valley, CA 94546
Phone: (510) 593-5037 Email: kharper@kevinharpercpa.com
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
TABLE OF CONTENTS
' Page
' INTRODUCTION 1
Understanding of Project Scope
Introduction to Our Proposal
SCOPE OF WORK/WORKPLAN/SCHEDULE 3
PROFESSIONAL FEES&COSTS 4
' CAPABILITY OF PROPOSER 4
Description of Firm
Experience Serving State and Local Governments
' Experience Assessing/Investigating Government Operations
References
Resumes
Similar Projects
Sample Deliverables
ATTACHMENTS
' Minimum Qualifications Certification 1
Company Questionnaire 2
Warranties 3
' Fee Proposal 4
Questionnaire 5
Gift Disclosure Form 6
' Communication with City Staff,and/or City Council 7
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
INTRODUCTION
Understanding of Project Scope
We understand the City of Rancho Palos Verdes ("the City")wants to engage an independent
municipal financial and accounting expert to provide on-call third party investigative services
related to the City's fraud,waste and abuse hotline. We understand that these professional services
will be provided on an as-needed basis when there are incidents that require investigation in the
categories of accounting/audit irregularity, fraud,improper loans to employees/officials,and
kickbacks. We understand that the City desires to have investigations performed within 10 days to
determine whether allegations are valid or invalid. If we consider an allegation to be valid after the
initial assessment,we will discuss it with the case manager of other City officials to agree upon
any further investigation that may be warranted.
Introduction to Our Proposal
We are one of only a few California certified public accounting firms that solely serves local
governments. We are the only CPA firm in California we are aware of that focuses primarily on
providing operational and management audits of local governments operations. Our firm's
mission is"To help local governments improve internal administrative operations". As a result,
all our professionals are familiar and experienced with all areas of City operations, finances and
laws/regulations. Specifically,the certified public accounting firm of Kevin W.Harper CPA&
Associates is the most qualified to provide third party investigation services to the City because:
1. Government Operations and Procedures—The firm works only with local governments.
Our professionals have performed over 400 management and financial audits for local
governments. All our professionals understand the unique environment in which
governments operate, including budgeting, grant and debt financing, compliance with laws
and regulations, governance, open meetings/access to public information, statutory
requirements, etc. Our professionals have conducted audits of all departments and functions
of interest to the City, including police, fire,public works,planning&permitting,
development and redevelopment,purchasing, human resources,information technology,
clerk,manager/council, finance and legal.
2. On-call services—Since our firm primarily provides non-traditional services to local
governments,our professionals are used to operating on an as-needed basis. Therefore we
are very responsive to our clients timelines and requests. We return all phone calls within 24
hours and usually within a half-day.
3. Municipal Financial and Accounting- Our 12 professionals have performed hundreds of
local government financial and management audits and have served in permanent and interim
financial management positions for local governments,including elected auditor, chief
financial officer, finance director, internal audit manager, accounting manager, controller,
budget manager, senior accountant and school board president. We are therefore familiar
with internal auditing standards,as well as with generally accepted auditing standards and
Government Auditing Standards. Our professionals have assisted local governments to
implement virtually every GASB statement and pronouncement. Kevin is a member of the
1
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
IGovernment Finance Officers Association's Special Review Committee,which reviews
CAFRs for compliance with the Certificate of Achievement for Excellence in Financial
IReporting program.
4. Frauds and Legal Investigations—We have worked with many local governments to
Iinvestigate allegations of fraud or other illegal acts. Several of these investigations led to
our involvement in litigation support engagements, including projects with San Francisco
Unified School District, San Mateo County, State Bar of California, San Francisco
ICommunity College District, Ghirardelli Chocolate Company and Port of Oakland.
5. Hot Lines—We advised the Port of Oakland during establishment of its successful hot line.
I
6. Policies and Procedures—We have assisted many governments to develop and document
their policies and procedures related to cash handling, grants management,purchasing cards,
Iaccounts payable processing, investments,billing, procurement, system security,payroll and
budgets. We have assessed the effectiveness of controls and procedures for all major local
government business processes..
I
7. Internal Controls—We have conducted many internal control assessments for cities,
I including for City of San Carlos, City of Dublin, City of Napa, City of El Cerrito, City of
Richmond and City of Davis. In addition, Kevin was a member of the Enterprise Risk
Management division while at Deloitte. As a result he is thoroughly familiar with the
I COSO control framework; the relationship between objectives,risks and controls; and is
able to discuss internal controls in easy-to-understand language.
I 8. Laws and Regulations—As part of the over 400 financial and management audits we have
conducted,as well as our experience serving in permanent and interim financial
management positions,we are familiar with all laws and regulations of importance to the
I City. Although we are not attorneys, we are experienced with interpreting the laws and
regulations and know where to access the latest versions of each.
SCOPE OF WORK/WORKPLAN/SCHEDULE
I As soon as the City notifies us of a hotline allegation that we should investigate, Kevin Harper
will conduct an initial assessment. He will obtain and read the allegation, and research similar
cases,if necessary. He will request certain documents from the City and/or request phone
I interviews with certain City personnel to understand the allegation, its context and impact. He
will analyze the results of the document reviews and interviews. He will determine what
additional work or research, if any, is appropriate. He will write a report to the City regarding
the procedures performed, conclusion reached and next steps recommended. He will issue the
report and discuss it with the case manager. At any point during these tasks,if he determines the
allegation lacks merit,he will terminate additional consideration and issue the report to the case
Imanager.
I
I2
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
IThe following preliminary workplan indicates the expected timeframe for each task of the initial
assessment:
' • Day 1 —Obtain and read allegation
• Day 2—Consider merits of allegation and research similar cases
• Day 3 —Request documents from City staff and set up interviews
' • Days 4-6—Review documentation and conduct interviews
• Days 7-8—Analyze results of document reviews and interviews
' • Day 9-Determine whether additional work is warranted and write report
• Day 10—Discuss with case manager,issue report
I The number and type of relevant documents to be reviewed during the initial assessment will
vary for each investigation depending on the allegation. However,the documents requested will
be limited to those already in existence; in other words we will not ask the City to prepare any
documents for us as part of the initial assessment.
The number of City staff that we will interview will vary depending on the allegation. However,
' we anticipate that these interviews will be conducted by phone and will last between 15 minutes
and 45 minutes each.
' Within 10 business days after we are notified on an allegation,we will provide a written report
that describes the procedures we performed,our conclusion on whether the allegation has merit,
and recommended next steps,if any. Our conclusion on whether the allegation has merit will be
' based on the factual accuracy of the allegation and the impact of the allegation if true. We will
discuss this report with the case manager. For those allegations that are deemed to have merit,
some can be resolved by City management changing procedures or fixing a problem. Other
' allegations that have merit may require additional research or legal resolution. Our involvement
in any work beyond the initial assessment cannot be estimated at this time;however we will not
perform any additional work unless authorized.
' At the end of each fiscal year,we will prepare an annual summary of the allegations that we have
investigated. This summary will briefly describe the tasks we performed and conclusions we
' reached. This summary will also provide recommendations for improvement to the City's fraud,
waste and abuse hotline program that come to our attention during our work.
' The number of hours for each initial investigation will vary depending on the type and
complexity of the allegation,the number of City staff to be interviewed,and the number and
complexity of relevant documents to be reviewed. However,our commitment to complete the
' initial assessment within 10 business days assures the City that any additional analysis deemed
appropriate is done only after City management determines it is warranted.
1
I
' 3
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
PROFESSIONAL FEES& COSTS
' Our professional fees will be billed monthlybased on the number of hours worked at the hourly
' rate of each professional. Our hourly rates,which are consistent with those of other local CPA
firms,are as follows for 2015:
' Partner $200
Manager 150
Senior Auditor 125
' Staff Auditor 100
Paraprofessional 100
Reasonable out-of-pocket and travel expenses will be billed.
' CAPABILITY OF PROPOSER
Description of Firm
IKevin W. Harper CPA&Associates is a certified public accounting firm that specializes in
serving local governments. The firm's mission is "To help governmental agencies improve
' financial and administrative operations" The firm's twelve associates provide professional
audit and consulting services to governments in the areas of finance and accounting,auditing,
compliance with laws and regulations,recordkeeping and administration. All associates of the
' firm have years of experience serving local governments as consultants, CPAs and/or
government managers. Services we provide to our clients include:
' Internal audits
Financial audits Internal control assessment/improvementInterim financial management
Fraud investigation Litigation support
Process improvement
' Kevin W. Harper CPA&Associates is a properly licensed California Certified Public Accountant.
Kevin is a member of the California Society of Municipal Finance Officers,the California Society
' of Certified Public Accountants and the Government Finance Officers Association. The firm was
established in 2001.
' Experience Serving State and Local Governments
' The firm's professionals have performed over 400 public sector financial and internal audits for
numerous California state and local governments. Following is a partial list of the public sector
clients we have served in the last five years:
' City of Benicia County of Alameda
City of Calexico County of Contra Costa
' City of Davis County of San Mateo
City of Dublin Alameda County Assoc.Comm.Action Program
City of Emeryville Alameda County Congestion Management Agency
' 4
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
City of Fremont East Bay Regional Park District
City of Napa eCivis
City of Newark First 5 Alameda County
City of Pacifica Muir Beach Community Services District
City of Richmond Port of Oakland
City of San Carlos San Francisco Unified School District
City of Simi Valley San Francisquito Creek Joint Powers Authority
City of South San Francisco San Mateo Medical Center
City of Stockton State Bar of California
City of Sunnyvale Town of Portola Valley
City of Susanville
Experience Assessing/Investigating Government Operations
Our professionals have gained a thorough understanding of government finance and
administration through many projects to help governments improve internal administrative
operations. A partial list of assessments and investigations that our professionals have performed
for public sector clients include:
• City of Sunnyvale—Internal audits of golf course operations,a city-owned industrial complex and the
City's Rental Housing Program. Kevin Harper served as interim Accounting Officer and interim
Audit Manager;tasks included supervision of accounting staff,coordination with annual financial
auditors,bringing receivable collection process in-house,review of budgetary performance measures
and internal audit of payables and purchasing card processes. Ron Vincent served as interim Budget
Manager,projects included budget analysis,budget preparation and analysis of indirect costs. Due
diligence procedures related to close-out of redevelopment agency
• City of Stockton—Assessment of the accounting department's procedures and controls. Assistance
with implementing new accounting standards and assistance with closing accounting records and
preparing for annual audit. Assistance with closing out employee benefit plans
• City of Berkeley—Developed City-wide cash handling training manual
• City of Dublin—Assessment of the finance department's procedures and controls,project manager
for user fee study,cost allocation plan and master fee schedule
• City of Alameda—Review of grant management procedures. Review of cash collection procedures in
10 departments,calculation of cost of manual checks,assessment of need for finance committee,
review of payroll procedures and controls. For golf courses,reviewed problems with software
implementation,review of cash handling procedures,and cash flow projections related to bond
issuance
• Alameda County Congestion Management Agency—Assessment of finance and administrative
processes and systems to ascertain their capability to support growth resulting from large new funding
source
• San Mateo Medical Center—Internal audit of cash collections and patient trust accounting.
Developed and wrote policies and procedures grant accounting procedures. Our professional served
as interim controller and senior accountants. Developed cash flow reporting. Assistance with year-
end close
• County of Contra Costa -- Compilation of financial statements for the Public Financing
Authority and Public Facilities Corporation. Assistance with year-end close of internal service
funds. Due diligence procedures related to close-out of redevelopment agency
5
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
• San Francisquito Creek Joint Powers Authority--Consultation related to the Authority
setting up initial accounting records,financial policies,procedures and controls
• Port of Oakland—Internal audit of contested construction costs related airport expansion. Internal
audit of$1.5 billion capital improvement program. Currently conducting annual fmancial audit of
Port,contract audit of airport shuttle bus contractor and special audit of customer facility charges.
Conducted internal audits of procedures and controls over payables,receivables,airport rates and
charges,maintenance supplies,internal accounting controls and performance measures
• City of Palo Alto—Review of accounts receivable procedures and system
• City of Fremont—Interim Finance Director,review of integrated waste management costs, selection
of banking services contractor,review of cost accounting records of AC Transit to determine whether
city received value commensurate with contributions
• East Bay Regional Park District—Kevin Harper served as interim chief financial officer. Internal
audit of accounting procedures and controls,contract negotiations with East Bay Municipal Utility
District and Port of Oakland related to cost of providing police services and with the police officer
union,implementation of Bank of America DirectPay,preparation of annual budget,review of
election costs charged by County
• Delta Diablo Sanitation District—Wrote RFP for banking services
• City of Richmond—Internal audits of Public Works operations,Paratransit program,Code
Enforcement Program,Port,marina, library,marijuana dispensaries,purchasing card and juvenile
justice grant. Assistance with developing long-term strategic plan.Assistance to housing authority's
response to state audit findings
• Sacramento Sanitation District--Assisted in preparation of first comprehensive annual fmancial
report.
• San Francisco Unified School District—Currently serving as accounting department for Facilities
Design and Construction Department,which is managing$1 billion bond and construction program.
Developed process for managing District-wide grant program for over 300 categorical grants totaling
$100 million. Financial analysis for developer fees class action lawsuit
• Jefferson Elementary School District—Analyzed prior year ending balances and current year awards
for receipts and budgets,prepared report showing available resources for all categorical programs,
assisted in the development of mid-year budget adjustments for categorical programs
• State Bar of California— Review of government-wide risks and controls, review of fraud loss and
related control improvements,cash receipts control workshops
• City of Benicia—Assessment of the finance department's procedures and controls. Review of
suspected fraud at grant sub recipient
• City of Davis—In process of conducting an assessment of the finance department's procedures and
controls
We have enclosed a redacted copy of a recent report we issued to a city as part of a review of
fmancial procedures and controls. This report provides an example of the quality, detail and
understandability of reports we write.
6
CITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
References
' Below we provide five references of local governments are currently serving or have recently
served. We encourage you to contact each of them for an assessment of the high quality,
professionalism and timeliness of our services.
Ms.Rebecca Gebhart, Finance Administrator
Alameda County Health Care Services Agency
' (510)667-3024
Mr.Dave Collins,Assistant General Manager
IEast Bay Regional Park District
(510)544-2101
IMr. Jared Hancock, City Manager
City of Susanville
(530)252-5100
Mr. James Goins,Finance Director
I City of Richmond
(510) 620-6946
' Ms.Lisa Malek-Zadeh,Finance Director
City of El Cerrito
(510)215-4312
IResumes
Below is the resume for Kevin Harper,who will serve as the primary contact for the City
throughout this engagement. Kevin will be responsible for the quality of all services to the City
and will personally prepare the reports to the City after the initial assessment of each allegation.
A senior accountant will assist Kevin with certain tasks on each initial assessment. The senior
accountant assigned will depend on the timing of each initial assessment and his/her relevant
experience vis a vis the type of allegation. We have included a resume for Kirk Hogan to give an
indication of the level of experience of the senior accountants that will assist Kevin.
Kevin Harper is a California Certified Public Accountant with over 30 years of professional
I experience,entirely in service to local government. Kevin has performed hundreds of financial,
compliance and internal audits for local governments. For many years he led Deloitte&
Touche's Northern California Public Sector audit practice.
Kevin served as:
• Interim Finance Director for the City of Fremont
• Elected City Auditor of the City of Alameda
• Interim Accounting Officer and interim Audit Manager for the City of Sunnyvale
• Interim Audit Manager for the Port of Oakland
• Chairman, Citizens Budget Advisory Committee, City of Union City
• Elected President, Board of Education,New Haven Unified School District
7
ICITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
I • Interim Chief Financial Officer, East Bay Regional Park District
I
He also served on several other boards and commissions including San Francisco's Citizens
Advisory Committee on Wastewater, City of Alameda's Strategic Advisory Committee,Union
City's Mobile Home Rent Review Board, Chabot-Las Positas Community Colleges Foundation,
I
and Alameda County School Boards Association. He therefore brings a unique hands-on
perspective of the operational and management issues that affect local government.
I
Kevin is a member of the Government Finance Officers Association's Special Review
Committee. As such,he reviews comprehensive annual financial reports for compliance with the
Certificate of Achievement for Excellence in Financial Reporting.
IHe also brings a unique knowledge of public sector systems to your audit,having spent two
years working with PeopleSoft in the Education and Government practice of PeopleSoft
IConsulting.
Kevin speaks at meetings of public sector finance officers, including the California Society of
IMunicipal Finance Officers,the California Municipal Treasurers' Association,the State
Association of County Auditor Controllers and the Nevada Government Finance Officers
IAssociation. He has published articles in Government Finance Review(GFOA),PM Magazine
(ICMA),American City and County,Municipal World,Pension World and Mini-News
(CSMFO).
IKirk Hogan is a Certified Public Accountant in California,Ohio and Kentucky. He has over 25 years of
experience providing audit and accounting services to local and Federal governments and nonprofit
I
agencies. As an audit manager,Mr.Hogan has supervised audits of all sizes. Mr.Hogan has also served
as finance director for a nonprofit agency. He received his degree in Business Administration
(Accounting)from the University of Cincinnati.
IFollowing are some of the entities for which Mr. Hogan has provided audit,accounting or
consulting services:
ISchool Districts Special Districts
City of Cincinnati School District Metropolitan Sewer District of Greater Cincinnati
New Miami Local School District Monroe Cincinnati Community Action Agency
I
Local School District Southern Ohio Correctional Facility
VLT Community High School Alameda County Congestion Management Agency
Dohn Community High School
I
Non-profit
Municipalities Andrew Jergens Foundation
City of Oakland University of Cincinnati Internal Medical Association
I
City of Richmond Bay Area.Health Consortium,Oakland,California
San Mateo County Medical Center Credo Housing,Inc.,Oakland,California
City of Cincinnati,Ohio Northern Kentucky Community Action Agency
I
Village of Cleves,Ohio
City of Dayton,Ohio U.S.Federal Government
County of Alameda. Department of Agriculture
I
Department of Housing&Urban Development
Department of Interior
I8
ICITY OF RANCHO PALOS VERDES
Proposal—Fraud,Waste&Abuse Third-Party Investigative Providers(Financial)
I
I
I
I ATTACHMENTS
i
City of Rancho Palos Verdes
' Request for Proposals
Fraud,Waste,&Abuse Hotline—ThRd-Party Investigative Providers(Financial)
Page 9 of 16
' ATTACHMENT 1
MINIMUM QUALIFICATIONS CERTIFICATION
Proposer Firm Name
' The Proposer must substantiate that the firm satisfies all of the Minimum Qualifications stated
within this RFP, to the CITY's satisfaction, to be given further consideration. The statement
must contain sufficient information as prescribed to assure the CITY of its accuracy. Failure
' to satisfy each of the Minimum Qualifications, based on the CITY's sole judgment, will result in
the immediate rejection of the Proposal.
' The Proposer must complete all of the Minimum Qualification statements listed below before
signing. The signature of the authorized representative of the Proposer warrants that the
' Proposer has met all of the Minimum Qualifications.
1) The Proposer has been a certified public accounting firm in the same name or organization
' serving California government agencies for at least five (5) years.
cA Yes/ U No
' 2) The Proposer has direct responsibility for the management of the City's account, and all
personnel responsible for the account are employees of the firm.
Yes/ U No
' 3) The Proposer does not have, nor potentially has, a conflict of interest with the CITY,
including, but not limited to, any member of the City Council, City Staff, its advisors and
contractors, its auditors, other consultants currently serving the CITY.
ca Yes/ U No
' 4) The Proposer can provide verifiable references of local California government agencies.
ca Yes/ U No
vv‘ tAt1/412.fr
Authorized Signature
Pn t or Type Name
ITitle Lel)
' Date
I
I
City of Rancho Palos Verdes
I
Request for Proposals
Fraud,Waste,&Abuse Hotline-ThiN-Party Investigative Providers(Financial)
Page 10 of 16
I
ATTACHMENT 2
COMPANY QUESTIONNAIRE
V. VnI � pct- 4" PK-50CAtiky
I
Proposer Firm Name
Y.-..e V‘,1/4K kAf- kill'?e%•
IProposer's Legal Name
6201e_ p yr uirs.)if t le-i-U.--
Type of Business (Corporation, Partnerships, Individual, etc.)
I )-OCI'K 5 'Rea 1.t.occ/ IR.oc.61 -k- I'LL C4 c tset tic.tieu a--qti:51/,6
Headquarters Address
Address of Office of Proposer That Would Manage the Account (if different)
I \Kwe\i,'vt IA,- 14.6.ive
Proposer Contact Name
IL-5--i 0 - .5-cl 3 —'51)' -'1 akc,fee,..- c....) Kevi A hi.ire.- c pet- k.:A,
Telephone Number Fax Number Email Address
Ig t iv. 14-0c�C."
I Proposer Back-up Contact Name
45-07- 5171 — C.) s- 2,,-) Wi,L::, ir,c a h 4r-Y1-“, I cc
(3c4,..c.i, 4 L. td , - ,-.‘
ITelephone Number Fax Number Email Address
Y:r-e\i‘AN, ti,./.. 1.--k-ctifee-- LH 2-2,/ I y
ISigner (authorized to bind the Proposer) Date
Ke.v,:i-," kA/.. ‘-k-c viede.,, ,ierl cs,c.(,, -,./N p.-/bi Q v----
1
Li )
IName and Title of Authorized Signer (Please type or print)
Signer (authorized to bind the Proposer) Date
Name and Title of Authorized Signer (Please print)
I
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 11 of 16
ATTACHMENT 3
WARRANTIES
tikp - scp
ProposerFirm Name
9
Proposer agrees to the incorporation of the following warranties in the proposed engagement:
P
Proposer warrants that it maintains or will obtain, at its expense prior to
engagement, required insurance policy as stated herein for negligent acts or
omissions and that such coverage is applicable.
Proposer warrants all information and statements in this RFP are complete
and true. Any statement or claim found to be incomplete, misleading, or false
will be grounds for immediate disqualification or dismissal and may be subject
to legal action.
Proposer warrants this proposal is genuine, and not sham or collusive, nor made
in the interest or on behalf of any person not named therein; the proposer has
not directly or indirectly induced or solicited any other proposer to put in a sham
bid, or any other person,firm or corporation to refrain from submitting a proposal,
and the Proposer has not in any manner sought by collusion to secure for
themselves an advantage over any other proposer.
.
Authorized Signature
V—ev' ‘tvx Ore,/tp-e,
Print or Type Name
Pt,„
MC 1 Vk.
Title Date
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 12 of 16
ATTACHMENT 4
FEE PROPOSAL
KevAv% c AC.S6C411.1eA
Proposer Firm Name
Subject to advance approval by the CITY, the CITY shall reimburse the
selected Consultant for reasonable travel costs incurred, including airfare,
transportation, lodging and meals in conjunction with attending local
meetings in the performance of the engagement. Consultant shall furnish
the CITY with evidence of such costs incurred along with written request
for reimbursement. The selected Consultant shall be solely responsible for
incidental costs, including but not limited to, printing, clerical support in
delivery of services and the production of written reports.
Each Proposer shall provide its Fee Proposal based upon providing on-
call,
n-
call, as-needed services upon requested, detailed by billable hours.
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline-Third-Party Investigative Providers(Financial)
Page 13 of 16
ATTACHMENT 5
QUESTIONNAIRE
Organization
Provide the address of the office that will service this account. Sic.: L �:,y'i v It) r
Give a brief description of your firm's history as a certified public accounting firm
that serves California municipalities, including the year of organization. As of
March 1, 2015, for how many years has your firm provided services serving
California municipalities? cc.
What are your firm's consulting specialties and strengths?
1"1 4)‘11)1 a4
What differentiates your firm from your competitors?
c
have the
Does your primary consultant (ex. project manager) assigned to CITY
any prior hotline experience with local California governmental agencies, and has
that person been em loyed by Proposer for at least one (1) year?
LIU Yes l U No
Clients
Please provide a listing of clients that may be used as reference checks:
Name of Client Contact Name Contact Number Contact Email
(GE,� tir 0 Oji k .9 t
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 14 of 16
Standards of Conduct
Disclose any relationship you have or have had with any City Council members,
consultants, or CITY employees. Briefly describe your philosophy relating to the
selected Consultant's relationship with Council members and Staff. Vc ,-tom
Disclose any gifts (meals, tickets, anything of value over $50, etc.) that you have
given to or received from any City Council member, consultants, or CITY
employee in the last 12 months. If 'Yes', please disclose them using "Gift
Disclosure Form." ,,
For the past 10 years, has the firm, its officers or principals or any affiliate ever
a. Been the focus of a non-routine inquiry or investigation or a similar inquiry
or investigation from any federal, state or self-regulatory body or organization;
b. Settled any litigation concerning breach of fiduciary responsibility or
other investment related matters; or Plo
c. Submitted a claim to your error & omission, fiduciary liability and/or fidelity
bond insurance carrier(s)?
if'yes', please provide details and the current status of proceedings.
City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
Page 15 of 16
ATTACHMENT 6
Gift Disclosure Form
C91A-
Cc ci-3-€)
Proposer Firm Name
No. Date Given to / Description of Gifts ' Value (US$)
(mm/dd/yy) Received from
iv to e
1 Gifts could be in the form of meals, tickets, paid travel, items of value over$50, etc.
' City of Rancho Palos Verdes
Request for Proposals
Fraud,Waste,&Abuse Hotline—Third-Party Investigative Providers(Financial)
' Page 16 of 16
ATTACHMENT 7
IDisclosure Form —
Communication with City Staff, and/or City Council
Y-LiZv:,v1 C 4'. fli-c oc t..Je
' Proposer Firm Name
' Names, Dates and Description Of Information Provided/Received
No. And/Or Nature Of Communication
I