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HomeMy WebLinkAboutContracts & Agreements_62-2020AGREEMENT TO FURNISH PROFESSIONAL AUDITING SERVICES This agreement for professional auditing services ("Agreement") is made and entered into this 15th day of April, 2020 (`"Effective Date"), by and between the City of Redlands, a municipal corporation and the Successor Agency to the former Redevelopment Agency of the City of Redlands (together, "City") and Eide Bailly, LLP ("Consultant") City and Consultant are sometimes individually referred to herein as a "Party" and, togethei, as the "Parties " In consideration of the mutual promises contained herein, City and Consultant agree as follows 11 ARTICLE 1 — ENGAGEMENT OF CONSULTANT City hereby engages Consultant to provide professional auditing services for the audit of the Fiscal Year Ending 2019, with the option to provide auditing services for two additional audit years, the Fiscal Years Ending 2020 and 2021 1 2 The Services shall be performed by Consultant m a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services ARTICLE 2 -- SERVICES OF CONSULTANT 2 1 The Services that Consultant shall perform are more particularly described in Exhibit "A,' titled "Approach and Methodology," which is attached hereto and incorporated herein by reference 2 2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to. State prevailing wage Iaws ARTICLE 3 — RESPONSIBILITIES OF CITY 3 1 City shall make available to Consultant information in its possession that may assist Consultant in performing the Services 3 2 City designates Danielle Garcia, Management Services/Finance Director to act as its representative with respect to performance of the Services, and such persons shall have the authority to transmit instructions, receive information, interpret and define City's policies and decisions with respect to performance of the Services ARTICLE 4 — PERFORMANCE OF SERVICES 4 1 Consultant shall perform and complete the Services in a prompt and diligent manner The term of this Agreement shall commence on the Effective Date and shall end upon completion of the Services for the audit of Fiscal Year Ending June 30, 2019, unless the options for additional services for subsequent audit years, Fiscal Years Ending June 30, 1 L Icaldjm\AgreementslEide Badly Auditing Agreement.PS 1 1 4 1 20 docx.jn 2020 and 2021 are exercised, m which case the term shall end upon completion of the Services for those audit years 4 2 If Consultant's Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to the City, consistent with City Council adopted policy for the same It shall be the obligation of Consultant to obtain a copy of such policy from City Staff ARTICLE 5 — PAYMENTS TO CONSULTANT 5 1 The total compensation for Consultant's performance of the Services for the audit of the Fiscal Year Ending June 30, 2019 shall be Forty Eight Thousand Nine Hundred Sixty Dollars ($48,960) Should the City choose to exercise the options for additional auditing services for audit years, the Fiscal Years Ending June 30, 2020 and 2021, the compensation shall be Forty Nine Thousand Nine Hundred Thirty -Nine Dollars ($49,939) and Fifty Thousand Nine Hundred Thirty -Eight Dollars ($50,938), respectively Compensation is in accordance with the schedule set forth in Exhibit "B", which is attached hereto and incorporated herein by reference 5 2 Consultant shall submit invoices to City including a brief description of the Services performed, the dates the Services were performed, and the number of hours spent and by whom City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant's invoice 5 3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing Any such notice shall be deemed delivered (i) on the date of delivery in person, (u) five (5) days after deposit in first class registered mail, with return receipt requested, (iii) on the actual delivery date if deposited with an overnight courier, or (iv) on the date sent by facsimile, if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail, m each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section City Danielle Garcia City of Redlands 35 Cajon Street, Suite 222 Redlands, CA 92373 (909) 335-4795 phone (909) 335-4735 fax dgarcia@cityofredlands org Consultant Phil White, Partner Eide Bailly, LLP 10681 Foothill Blvd , Suite 300 Rancho Cucamonga, CA 91730 (909) 466-4410 phone (909) 466-4431 fax pwhite@eidebailly com ARTICLE 6 — INSURANCE AND INDEMNIFICATION 6 1 Insurance required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services Consultant shall not perform any Services unless and L 1ca1djm\Agreements\Cide Baiiiy Auditing Agreement.PS 1 1 4 7 20.doca.in until the required insurance listed below is obtained by Consultant Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prioi to commencement of the Services Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prioi written notice to City 6 2 Workers' Compensation and Employer's Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, 01 certification to City that Consultant is self-insured 01 exempt from the workers' compensation laws of the State of California Consultant shall provide City with Exhibit "C," titled "Workers' Compensation Insurance Certification," which is attached hereto and incorporated herein by this reference, prior to occupancy of the Premises 6 3 Consultant shall secure and maintain comprehensive general liability insurance with carriers acceptable to City Minimum coverage of One Million Dollars ($1,000,000) pei occurrence and Two Million Dollars ($2,000,000) aggregate foi public liability, property damage and personal injury is required City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance 01 self-insurance maintained by City 6 4 Consultant shall secure and maintain professional liability insurance throughout the terrn of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made 6 5 Consultant shall have business auto liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability This coverage shall include all Consultant owned vehicles used in connection with Consultant's provision of the Services, hired and non -owned vehicles, and employee non -ownership vehicles City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City 6 6 Consultant shall defend, indemnify and hold harmless City and its elected officials, employees and agents from and against any and all claims, Iosses or liability, including attorneys' fees, arising from injury or death to persons 01 damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in perforining the Services ARTICLE 7 — CONFLICTS OF INTEREST 7 1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any othei source of income, interest in real property 01 investment that would be affected in any manner or degree by the performance of Consultants Services Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement 3 L Icalditn\Agreements\Elide Badly Attdtttng Agreement.PS 1 1 4 7 20 docx.in 7 2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant A Does not make a goveinmental decision whether to (i) approve a rate, rule or regulation, or adopt or enforce a City law, (ri) issue, deny, suspend oi revoke any City permit, license, application, certification, approval, order or similar author ization or entitlement, (in) authorize the City to enter into, modify 01 renew a contract, (iv) grant City approval to a contract that requires City approval and to which City is a party, 01 to the specifications for such a contract, (v) grant City approval to a plan, design, report, study or simrlai item, (vi) adopt oi grant City approval of, policies, standards or guidelines for City or for any subdivision thereof B Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision 01 otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City's Conflict of Interest Code under Government Code section 87302 7 3 In the event City officially determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fan Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk's office pursuant to the written instructions provided by the City Clerk ARTICLE 8 — GENERAL CONSIDERATIONS 8 1 In the event any action is commenced to enforce 01 interpret any of the terms 01 conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys' fees, including fees for the use of in- house counsel by a Party 8 2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement 8 3 Records, drawings, designs, cost estimates, electronic data files, databases and any other documents developed by Consultant in connection with its performance of the Services, and any copyright interest in such documents, shall become the property of City and shall be delivered to City upon completion of the Services, or upon the request of City Any reuse of such documents, and any use of incomplete documents, shall be at City's sole risk 8 4 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor Neither City nor any of its agents shall have control over the conduct of Consultant oi Consultant's employees, except as herein set forth Consultant shall supply all necessary tools and instrumentalities required to 4 L IcaldjmlAgreementslEide Badly Auditing Agreement.PS 1 1 4 7 20 docxjn perform the Services Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant 01 personnel retained by it be deemed to have been employed by City or engaged by City foi the account of, oi on behalf of City Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, not shall Consultant have any authority, express or implied, to bind City to any obligation 8 5 Unless earlier terminated as provided foi below, this Agreement shall terminate upon completion and acceptance of the Services by City This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City's intent to terminate If this Agreement is terminated by City, an adjustment to Consultant's compensation shall be made, but (I) no amount shall be allowed foi anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (In both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services Consultant shall be compensated on a pro -rata basis for Services completed up to the date of termination 8 6 Consultant shall maintain books, ledgers, invoices, accounts and othei records and documents evidencing costs and expenses related to the Services for a period of three (3) years, of foi any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement Such books shall be available at reasonable times for examination by City at the office of Consultant 8 7 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any pi for negotiations, written proposals or veibal agreements relating to such matters are superseded by this Agreement Except as otherwise provided foi herein, any amendment to this Agreeinent shall be in writing, approved by City and signed by City and Consultant 8 8 This Agreement shall be governed by and construed in accordance with the laws of the State of California 8 9 If one 01 more of the sentences, clauses, paragraphs oi sections contained in this Agreement is declared invalid, void oi unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remaindei of this Agreement and shall not affect, impair 01 invalidate the remaining sentences, clauses, paragraphs 01 sections contained herein, unless to do so would deprive a Party of a material benefit of its baigain under this Agreement 5 L lealdjm\AgreementslEide Bailly Auddmg Agreenent.PS 1 1 4 7 26,docx In IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement CITY OF REDLANDS By EIDE BAILLY, LLP aul W. Foster, Mayor Phil White, CPA, Partner ATTEST J Donaldson, City Clerk SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS By - . Paul W Foster, Chairperson ATTEST ne Donaldson, Agency Secretary 6 L1caldjmlAgreements\Eide Bailly Auditing Agreement.PS 1 1 4 7 20.docx.jn EXHIBIT "A" APPROACH AND METHODOLOGY 7 L Ica\djm1Agrcements\Eide Bail]y Auditing Agreement.PS 1 1 4 7 20 dock ,]n Exhibit A Section C — Approach & Methodology 1 Project Management VTD provides auditing services to a variety of governmental agencies throughout the State of California The key to our success is to structuring our audit teams with a designated project audit manager and project audit partner to maintain ultimate responsibility for timely completion of the audits During the planning phase of the audit, VTD will work with the City to complete a matrix in order to map out all of the significant dates for the provision of service including key contacts, Fieldwork entrance and exit dates, deliverable dates, report review dates, final due dates, and board presentation dates By preparing a comprehensive matnx for each report, all the information regarding the timing of the audits and various projects is documented in one central location and is agreed upon between the auditor and the City The timeline will then only be modified through communication between VTD and the City 2 Complete Work Plan/Project Description Overview of the Audits As required by the Request for Proposal our audit plan covers the engagements for • Audit and preparation of the City's CAFR • Single Audit and preparation of the Single Audit Report • Perform agreed upon procedures on the City's GANN Limit Calculation • Communication with those charged with governance letter • Examination of other reports and performance of other services as required The audits will be conducted in accordance with generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA), Governmental Auditing Standards published by the Comptroller General of the United Stated, and the requirements of the Uniform Guidance Level of staff and number of hours assigned to each segment Comprehensive Annual Financial Report Single Audit Report (assumes 2 major programs) GANN Appropriation Limit AUP Totals 40 4 1 80 4 60 8 80 16 80 32 3 4 344 65 5 45 85 68 96 115 5 414 Audit Hours by Area Comprehensive Annual Financial Report 17 l38 189 344 Single Audit Report (assumes 2 major programs) 3 26 36 65 GANN Appropriation Limit AUP - 2 3 5 Totals 20 166 228 414 Section C — Approach & Methodology 3. Identification of Potential Audit Issues We do not anticipate problems within the audit However, if audit issues are encountered, our process would include meeting with the City's management to develop the appropnate response, and identify any special assistance that will be requested from the City We have however identified the following areas that we believe that we can be of assistance • GASB Standard Implementations — Several new GASBs will be required to be implemented during the contract term • Single Audits — Uniform Grant Guidance has been issued and is effective for the City for grants awarded after December 26, 2014. Approach in Addressing New GASBs The City will be required to implement vanous GASB statements during the tern of the contract These accounting pronouncements impact the reporting of several areas including Fair Value for Investments, Pensions, Other Postemployment Benefits (OPEB), Tax Abatement Disclosures and Leases We understand that GASB implementations can be difficult and challenging. Therefore we believe in taking a team approach and performing proactive planning to ensure that new GASB Standards are implemented timely and correctly This starts during the planning and Interim phase of the audit and sitting down with management and discussing the potential impacts of the GASB standard and the documentation and information needed to implement We will assist throughout the process as needed in providing technical guidance regarding the impacts of the change in standards to ensure new standards are successfully captured in the financial statements 4 Our Proposed Audit Plan Our engagement approach for the City of Redlands audit has well detailed goals by which the engagement partner can measure progress Our audit plan Includes frequent contact between the partner and the engagement team to assure that objectives are attained according to the audit schedules and that problems are communicated and dealt with on a timely basis Our engagement approach benefits from our long accumulated experience during which our firm has identified key areas of financial and accounting concern in the audit process More importantly, the approach provides for a complete reassessment of the management and control environment in each year's audit and thus is capable of responding to changes and will ensure that deadlines are met in issuing the annual financial statements The key characteristics of our engagement approach are • Knowledge of the City of Redlands and similar entities We have extensive experience auditing governmental entities similar to the City This experience enables us to perform a more efficient audit and identify key audit nsks • Cost-effectiveness Our experienced auditors' low percentage of turnover reduce your cost • Timeliness We take deadlines, both yours and ours, seriously. e Partner -manager involvement Deciding on audit strategies requires seasoned judgment Our partners and managers have been heavily and continuously involved in governmental audits Furthermore, you will be able to consult with senior team members whenever needed throughout the year We are available during the year for any additional consultation that may arise and specified in the request for proposal Section C _ Approach & Methodology 4 Our Proposed Audit Plan (Continued) Protect Manai7ement — Overall Audit Our audit plan for each of the fiscal years involves six (6) stages for each audit These stages are, Stage 1, Planning Stage 2, Risk Assessment Stage 3, Preparation of the Overall Audit Plan Stage 4, Conducting the Interim Audit Stage 5, Conducting the Final Audit Stage 6, Reporting These stages will be applied to the City's CAFR audit as well as the other audits The audit approach will be tailored to the risk of each individual entity and the scale will also be adjusted as necessary to ensure that each entity's financial statements are fairly stated, Sta'e 1, Plannin>r VTD will meet with key staff to plan the audit services for the year These meetings will discuss all audit issues and the proposed interim work plan During this phase, we will accomplish • Identifying the key personnel and contacts in the Finance Department and other departments • Identify the City of Redlands significant classes of transactions and business processes • Obtain an understanding of audit risk areas • Developing an understanding of unusual transactions or events that have occurred during the fiscal year • Formalizing logistics • Finalizing the timeframes for interim fieldwork Stage 2, Risk Assessment Based upon the information obtained in the planning meetings VTD will perform a risk assessment as required by Statements on Auditing Standards (SAS) to be used in the preparation of the overall audit plan As part of this risk assessment we will perform the following. I Obtain an understanding of the entity and its environment and its risks and material compliance requirements VTD will refer to the City of Redlands' prior year Comprehensive Annual Financial Report, annual budget document, municipal code and other relevant documentation to assist with our understanding of the City of Redlands' business environment and risks VTD will also conduct inquiry with key individuals within the City of Redlands who are responsible for executing the City of Redlands' strategic plan Section C — Approach & Methodology 4 Our Proposed Audit Plan (Continued) Stare 2, Risk Assessment (Continued) 2 Obtain an understanding of the entity's internal controls. VTD will refer to the City of Redlands' organizational charts, budget, written policies and procedures, financial accounting systems to assist with our understanding of internal controls VTD will also perforin inquiry, observation, inspection, and walk- throughs of key internal controls to ensure these key controls are properly designed and implemented Key internal control cycles include — • Revenue Collection/Billing • Procurement / Cash Disbursements • Investment management • Debt management • Financial reporting • Year end closing • Budgeting • Risk management • Human Resources / Payroll • IT Controls, relating to all aspects of the audit • User access • Security • Backup and recovery ▪ System interfaces • Fraud Prevention Programs • Grants Management 3 Preliminary analytical review, determination of preliminary materiality levels 4 Analysis of known misstatements, if any 5 Consideration of risk of material misstatement at the individual account balance, class of transactions and disclosure level. 6 Assessing the risks of matenal misstatement at both the financial statement and relevant assertion levels. 7 Assess the risk of material noncompliance with laws and regulations that have a direct and material effect on the financial statements 8 Evaluation of the City's information technology and general information technology controls Stare 3, Preparation alike Overall Audit Plan Once the planning and risk assessment process are complete an overall audit plan will be prepared The plan will specify each audit task, staffing assignments, timelines, and due dates The plan will also break down the work assignments between interim and final audit timelines The audit plan will include the transaction cycles which have been selected for internal control testing and those for which only the detailed walk through will be performed We will also prepare The preliminary materiality guidelines, the audit programs, including consideration of • Identification of areas where special audit considerations are necessary • Design of further audit procedures to reduce risk if considered necessary • The development of expectations for analytical procedures, timelines, and assignment of all audit responsibilities 7 9 9 1 0 9 7 9 Section C — Approach & Methodology 4 Our Proposed Audit Plan (Continued) Stage 4, the Interim Audit Our interim fieldwork dates will normally occur dunng the April - June timeframe The specific weeks will be determined dunng the planning meettng and preparation of the audit plan We will obtain an understanding of the design and implementation of the financial reporting system to understand the follow of information for 1 Each class of transactions that is significant to the financial statements 2 The procedures within both automated and manual systems, by which those transactions are initiated, authorized recorded, processed, and reported in the financial statements 3 The related accounting records, whether in electronic or manual supporting information, and specific accounts in the financial statements involved in initiating, authorizing, recording, processing and reporting transactions 4. How the information systems captures events and conditions other than classes of transactions that are significant to the financial statements 5 The financial reporting process used to prepare the City of Redlands' financial statements, including significant accounting estimates and disclosures Stage 5, the Final Audit We will commence our final fieldwork as soon as City of Redlands has sufficiently closed their accounting records We expect final fieldwork to take place during October During this phase, we will perform substantive audit procedures on the year-end statement of net position and fund balances, revenue and expenditure/expense accounts We will use a variety of audit procedures which may include outside confirmations, statistical sampling, and detailed testing of schedules, analytical review, inquiry, and observation During this phase we will draft the financial statements Stage 6, the Reporting Phase At the end of the audit process we will meet with key staff to cover the following • Discuss improvements for subsequent years audit plan, • Meet with the Council to present the results of the audit, • Communicate with those charged with governance • We will prepare Draft Audit Reports with management letter comments to management pnor to the agreed upon issuance date • We will prepare Final Draft Audit Reports and management letter comments for presentation to the City prior to the agreed upon issuance date • Significant deficiencies and material weaknesses (if any) identified during the course of the audit AU C 265 requires written communication to management and those charged with governance, of significant deficiencies or material weaknesses, identified dunng the audit • Other matters that we believe to be of potential benefit to the management of the City of Redlands, such as recommendations for operational or administrative efficiency, or for improving existing internal controls Section C - Approach & Methodology 4 Our Proposed Audit Plan, (Continued) Communication We do not believe in surprises Although the reporting phase involves a recap of the process we will be in constant communication regarding each aspect of the audit throughout the entire process You will not have any surprises at the end o f the audit 5. Use of Computer Assisted Auditing Techniques Software in the Engagement The key members assigned to the City's engagement team are experienced in working with municipal information systems such as SunGard, Oracle, PeopleSoft, IFAS, SAP, Great Plains, EDEN, and HARRIS Utility Billing systems. Therefore minimal amounts of City time would be necessary to tram our team in how to most efficiently access City transactions and documents for the audit VTD will also be using electronic data processing software such as IDEA during the engagement 6 Engagement Timeline Audit Milestones Planning Meeting (Stage 1) Audit Planning (Stage 2 end 3) Interim Fieldwork (Stage 4) Fiscal Year -End Work (Start) Fiscal Year -End Work (End) (Stage 5) Deliver Draft Auditors' Report (Stage 6) Deliver Final Reports i 9 7 9 9 9 7 EXHIBIT "B" Cost Proposal (ALL Inclusive Maximum Price) We are firmly committed to providing the City of Redlands with the super for level of professional services that the City has come to expect from its independent auditors We strive to provide exceptional staff, quality, and value at the lowest possible fees consistent with the expectations of the City Our rates are competitive, even with out depth of experience and commitment to quality However, we do not want fees alone to be an obstacle in the City's selection of Eide Badly, LLP We would be happy to discuss and negotiate such fee issues and responsibilities with you QUOTED HOURLY RATES OF THE FIRM'S PROFESSIONALS. 2016-2017 2017-2018 i 2018-2019 2019-2020 2020-2021 Partner $ 220 $ 220 ? $ 224 $ 229 ! $ 233 185 189 165 135 Manager Supervisor Seniorf__-_. Staff 185 165 135 95 Paraprofessional i 60 8 L Icaldjrn\Agreements\C€de Badly Auditing Agreement.i'S 1 1 4 7 20.docxjn 192 196 168 172 175 138 140 143 95 97 99101 60 [ 61 _-� 62 64 Proposed Audit Fees Description of Services 2016 2017 2017-2018 2018 2019 2019 2020 2020-2021 Comprehensive Annual Financial Report $ 41,000 $ 41, 000 $ 41,820 $ 42,656 $ 43,510 Single Audit Report (assumes 2 major programs)' 6,500 6,500 6,630 6,763 6,898 GANN Appropriation Limit AUP 500 500 510 520 531 Total for Fiscal Year (not -to -exceed) $ 48 000 $ 48 000 $ 48,960 $ 49,939 $ 50,938 i Additional major programs will be $3,000 per program QUOTED HOURLY RATES OF THE FIRM'S PROFESSIONALS. 2016-2017 2017-2018 i 2018-2019 2019-2020 2020-2021 Partner $ 220 $ 220 ? $ 224 $ 229 ! $ 233 185 189 165 135 Manager Supervisor Seniorf__-_. Staff 185 165 135 95 Paraprofessional i 60 8 L Icaldjrn\Agreements\C€de Badly Auditing Agreement.i'S 1 1 4 7 20.docxjn 192 196 168 172 175 138 140 143 95 97 99101 60 [ 61 _-� 62 64 EXHIBIT "C" WORKERS' COMPENSATION INSURANCE CERTIFICATION Every employer, except the State, shall secure the payment of compensation in one or more of the following ways (a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State (b) By securing from the Director of Industrial Relations, a certificate of consent to self -insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self -insure and to pay any compensation that may become due to his or her employees CHECK ONE ✓ I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement (Labor Code §1861) I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers' compensation laws of California However, at any time, if I employ any person such that I become subject to the workers' compensation laws of California, immediately I shall provide the City with a certificate of consent to self -insure, or a certification of workers' compensation insurance I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct Date Z1111 Io EIDE BAILLY, LLP By Phil White, Partner 9 L Icald.]m\Agreements\Eide Sadly Auditing Agreement.PS-] 1 4 7 20.doex.jn