HomeMy WebLinkAboutAgenda Report - March 21, 2001 H-01CITY OF LODI COUNCIL 1 1
AGENDA TITLE: Approve KPMG Option 3 proposal to perform the City's Readiness Assessment for
GASB 34 and approve appropriation of funds.
MEETING DATE: March 21, 2001
PREPARED BY: Finance Director
RECOMMENDED ACTION: That the City Council approve the proposal submitted by KPMG LLP to perform
professional services to assist the City in addressing implementation of GASB 34.
BACKGROUND INFORMATION:
In June 1999, Government Accounting Standards Board (GASB), issued Statement 34, requiring a new Reporting
Model for Governments. The reporting model prescribed in GASB 34 drastically changes the presentation of the
Comprehensive Annual Financial Reports. The new model is intended to enhance the clarity and the usefulness
of government financial statements to the citizenry, oversight bodies, investors and creditors.
KPMG will assist City staff in addressing implementation of the new reporting standards, utilizing the Government
Reporting Implementation Process (GRIP). GRIP is a comprehensive process developed by KPMG to help
governments implement the new reporting standards required under Statement 34 of the Governmental Accounting
Standards Board, Financial Statements —and Management `s Discussion and Analysis —for State and Local
Governments (GASB).
The new model will most certainly affect financial data accumulation and financial statement presentation processes.
Policies will need to be established, systems capabilities assessed and modified as necessary, new accounting issues
addressed — and all pulled together in a new reporting presentation.
Potential pitfalls that an entity may face by not implementing GASB 34, include, but are not limited to, the following:
• Adverse audit opinion
• Negative perception by rating agencies
• Negative perception by Federal granting agencies
Azov®:
H. Dixon Flynn — City Manager
• 1 1 1COUNCIL COMMUNICATION
FOFt�
The total cost for the readiness assessment is $75,000. KPMG and staff recommend a two-phase process:
Phase I would be the preparation of a Readiness Assessment and Criticality Report. The recommended time
line for this phase is April to June 2001. Staff is requesting the approval for use of contingency funds totaling
$37,500.
Phase II would be the preparation of the Detail Master Plan. The recommended time line for this phase is July
to September 2001. The $37,500 funding for this phase would be included in the Finance Department 2001-03
budget submittal.
FUNDING: $37,500 -Contingency Fund Readiness Assessment and Criticality Report
$37,500 -Budget 2001-02 Detail Master Plan
$75,000
Vicky Mc thie
Finance Director
APPRov®:
H. Dixon Flynn — City Manager
1XV �m I M11, L 6_J
Three Embarcadero Center Telephone 415 951 0100
San Francisco, CA 94111
January 30, 2001
City Council Members and City Manager
City of Lodi
212 West Pine Street
P.O. Box 3006
Lodi, California 95241
Dear Council Members and Mr. Flynn
KPMG LLP is pleased to submit this proposal to the City of Lodi to provide professional services
to assist you in addressing implementation of new reporting standards, utilizing our Government
Reporting Implementation Process (GRIP). GRIP is a comprehensive process developed by
KPMG to help governments implement the new reporting standards required under Statement 34
of the Governmental Accounting Standards Board, Basic Financial Statements — and
Management's Discussion and Analysis —for State and Local Governments (GASB 34).
GASB has been working for over 10 years on the new Reporting Model. In June 1999, the
GASB Board finally issued Statement 34. The reporting model prescribed in GASB 34
dramatically changes the presentation for governments' external financial statements. In GASB's
view, the objective of the new model is to enhance the clarity and usefulness of government
financial statements to the citizenry, oversight bodies, investors, and creditors.
The new model will most certainly affect financial data accumulation and financial statement
presentation processes. Policies will need to be established, systems capabilities assessed and
modified as necessary, new accounting issues addressed — and all pulled together in a new
reporting presentation.
Potential pitfalls that an entity may face by not implementing GASB 34, include, but are not
limited to, the following:
✓ Adverse audit opinion
✓ Negative perception by rating agencies
✓ Negative perception by Federal granting agencies
For ease of reference, the remainder of this letter is organized into the following sections:
❑ GRIP Objectives and Approach
❑ GRIP Workplan and Deliverables
❑ Project Scope and Other Considerations
0 GRIP Team Responsibilities and Communication
❑ Project Staffing and Fees
....KPMG LLP KPMG LLP, a U.S. limited liability partnership, Is
a member of KPMG Intemalional. a Swiss association.
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 2
GRIP Objectives and Approach
This section describes the objectives and outlines the modules of the GRIP project. The
modules, including their objectives, are described below.
READINESS ASSESSMENT
♦ Module 1A — Initiate GRIP Readiness Assessment — Gather pertinent client information,
obtain a mutual understanding of project scope and objectives, conduct kickoff meeting,
identify interviewees, and develop time charts.
♦ Module 1B — Conduct GRIP Readiness Assessment — Conduct a GRIP readiness
assessment, to help assess City of Lodi's readiness to prepare the newly required financial
statements. Assist you in determining the impact the requirement to prepare the statements
might have on the City o Lodi.
♦ Module 1C — Facilitate City of Lodi's Development of a GRIP Master Plan — Facilitate
City of Lodi's development of their GRIP Master Plan, to help identify changes needed to
allow City of Lodi to generate financial statements in compliance with GASB No. 34.
Included in the Lodi's plan should be 1) a list of specific projects and tasks, prioritized
according to their expected contribution relative to attaining compliance, and 2) high-level
implementation plans for the key areas. Present the results of the GRIP Readiness
Assessment and a sample GRIP Master Plan.
GRIP Workplan and Deliverables
Workplan
The engagement workplan is set forth in Attachment A to this letter.
Deliverables
In addition to conducting the GRIP Readiness Assessment and facilitating the City of Lodi's
development and implementation of the GRIP Master Plan, the deliverables for this engagement
will include:
■ Readiness Assessment Presentation including:
❑ Readiness assessment results,
❑ Readiness/Criticality Report (illustrated in Figure 1 below), and
❑ Client concurrence on contents of and/or projects to be included in their GRIP Master
Plan.
IMMI
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 3
Figure 1— Example Readiness/Criticality Report
Example Readiness/Criticality Report
The numbers in the table above represent high level implementation plans recommended as a
result of the completion of the readiness assessment questionnaire.
Deliverables, continued
■ Assist the City of Lodi in their presentation to senior management of their GRIP Master Plan.
The City of Lodi will approve a GRIP Master Plan that should be the primary guiding
Poor
T1.1, T17.3, T19
T3.2, T41
T4, T6.2, T11,
T14, T14.1, T17,
T17.2, T39
Readiness
Moderate
T3.1, T18, T20
Tl, T1.2, T1.3,
T2.1, T6.1, T17.1,
T22, T31
Good
T1.5, T2, T3, T3.3,
T7.1, T16, T23.1,
T1.4, T3.4, T6,
T3.5, T5, T15, T21,
T25, T26, T27,
T6.4, T7, T9,
T33, T33.1, T33.2
T29, T32, T35,
T22.1, T23, T24,
T37, T38, T40, T42
T28, T28.2, T30,
T36
Deferrable
Moderate
Immediate
Criticality
The numbers in the table above represent high level implementation plans recommended as a
result of the completion of the readiness assessment questionnaire.
Deliverables, continued
■ Assist the City of Lodi in their presentation to senior management of their GRIP Master Plan.
The City of Lodi will approve a GRIP Master Plan that should be the primary guiding
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 4
document to set forth the projects necessary for the City of Lodi to implement processes for
compiling financial statements in accordance with the new reporting model. Key elements of
a GRIP Master Plan should include:
■ Executive Summary
■ Background
■ Objectives and Scope
■ Results
■ What do we need to do?
■ When does it need to be done?
■ What will it cost?
■ Master Plan
■ Organization and Management
■ High Level Implementation Plans - Summary
■ Program Schedule - Summary
■ Resource Management Plan
■ Estimated High Level Program Cost
■ Schedule/Quality Monitoring and Control System
■ Communications Plan
■ Appendix
■ High Level Implementation Plans
■ Program Schedule
F
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 5
Project Scope and Other Considerations
Project Scope
The scope of the proposed engagement includes the City of Lodi primary government.
KPMG's involvement in the readiness assessment of GRIP will be the completion and
documentation of a GAP analysis. The readiness assessment will involve conducting
interviews, developing a Readiness/Criticality Report and assisting in the City of Lodi's
development of their GRIP Master Plan based on the result of their interviews.
Other Considerations
Other considerations related to this engagement include the following:
❑ The preparation of financial statements is the responsibility of the City of Lodi's
management. KPMG will not assume any responsibility for accounting decisions or for
financial statement preparation. KPMG is not responsible for reviewing or auditing
information provided to it during the course of the engagement and expresses no opinions
or assurances with respect to such information, or on the City of Lodi's compliance with
GASB No. 34. Furthermore, KPMG makes no guarantees that at the conclusion of the
GRIP engagement that the government will be GASB No 34 compliant.
❑ Management is responsible for the prevention and detection of potential violations of
laws, rules or regulations. The scope of this engagement does not include an audit nor is
our work directed toward discovery of fraud, collusion, material misstatement of records
or regulatory compliance. However, if, during the course of the engagement, KPMG
becomes aware of information or circumstances that may raise potential compliance
issues, KPMG will notify management of such circumstances.
❑ In the conduct of this engagement, KPMG will make certain suggestions and provide
advice to management for the implementation of GASB No. 34. The City of Lodi's
management will retain sole responsibility for evaluating the quality of the advice and
suggestions and will independently decide whether to implement them. Accordingly,
KPMG is not responsible for and does not assume management's role in making any
strategic, policy or accounting decisions in connection with the conduct of this project.
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 6
❑ KPMG will assist the City of Lodi in their development of their GRIP Master Plan. The
City of Lodi is responsible for final development and approval of their master plan, for
deciding whether or not to implement any or all of the GRIP Master Plan and for the
implementation of the GRIP Master Plan.
GRIP Team Responsibilities and Communication
GRIP Team Responsibilities
Successful completion of the GRIP Readiness Assessment is dependent on the cooperation
and participation of both KPMG's GRIP team and key City of Lodi personnel. The specific
responsibilities for both parties are highlighted in the following chart.
Responsibility
KPMG
Government
Designate a GRIP Program Sponsor
X
Lead the KPMG Engagement team
X
Establish a GRIP Steering Committee
X
Provide Complete and Timely Responses to Readiness
Assessment Questions
X
Assist in the Compilation of the GRIP Master Plan
X
Decide on and Approve the Final GRIP Master Plan
X
Provide Counsel and Direction to the GRIP Process
X
Make Decisions on Individual Projects to Implement
X
Provide Candid and Timely Responses to Questions
X
Communication
X
X
Project Staffing and Fees
Project Staffing
We will assign a multi -disciplined team to this engagement. Specifically, it will include
professionals experienced in state and local government accounting and reporting and trained
in the delivery of GRIP.
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 7
Engagement Partner
Steve De Vetter will serve as overall engagement partner. Having the ultimate responsibility
for KPMG's role in the engagement, he will oversee the planning and conduct of engagement
activities. Specific responsibilities of Mr. De Vetter include: monitoring the ongoing
conduct of GRIP, and meeting with management members of City of Lodi on the status of
GRIP.
Mr. De Vetter is uniquely qualified to lead this team, since he currently serves as engagement
partner on the City of Lodi's audit engagement.
Program Manager
Marvin Dozier will serve as the program manager for GRIP. Mr. Dozier will be the primary
KPMG interface with the City of Lodi during the execution of GRIP. Mr. Dozier has over
eleven years in government accounting and financial reporting and has been trained in the
administration of GRIP.
Other KPMG personnel may be assigned as necessary to assist in this project.
Fees
Based upon our understanding of your organization's size and needs as well as project
approach, scope, workplan, and deliverables, as described in this letter, we estimate fees for
this engagement will range from $37,500 to $75,000 depending on the option selected by the
City. We have assumed that we will be conducting three interviews for the readiness
assessment. Significant changes and/or additions to the number and timing of interviews may
affect our fees.
Option 1 = Readiness assessment and the criticality report. The criticality report will provide
the City a prioritized list of the projects it will need to complete to become GASB 34
compliant.
The cost of option 1 is $37,500.
Option 2 = Readiness assessment, criticality report and a summary master plan. The
summary master plan will include a summary of the high level implementation plans only.
The summary master plan will not detail the hours to complete the projects, project timelines,
the resources needed to complete the projects and the related cost of the projects.
The cost of option 2 is $ 58,500.
I NOON
7"A "M
City Council Members and City Manager
City of Lodi
January 30, 2001
Page 8
Option 3 = Readiness assessment, criticality report and a detail master plan. The detail
master plan will include a summary of the high level implementation plans, detail of hours to
complete the projects, project timelines, the resources needed to complete the projects and the
related cost of the projects,
The cost of option 3 is $75,000.
Circumstances encountered during the performance of this project that warrant additional
time or expense could cause us to be unable to complete the project within the above range.
In addition, if KPMG encounters the following, additional fees may be billed:
■ Issues with scheduling/conducting interviews,
■ Problems with the requested level of client assistance, and
■ Requests for additional on-site time during the engagement.
We will notify you of any such circumstances as they are encountered. Our fees as stated in
this proposal are valid for 60 days from the date of this letter.
This engagement is subject to the standard terms and conditions included as Attachment.
The City of Lodi is a valued KPMG client. We are committed to assisting you with these
services and look forward to working with you and your management team and the City Council
in this important effort.
To indicate your approval of this arrangement and to confirm our understanding, please sign and
return the duplicate copy of this letter. Should you have any questions or require additional
information, please do not hesitate to call me at (415) 591-7347 or Marvin Dozier at (415) 591
7352.
Very truly yours,
KPMG LLP
i4& 's;;V 4a1_ZA::Z7
Steven G. De Vetter
Partner
KPMG LLP
Standard Terms and Conditions
1. Services. Our services may include advice and 5.
recommendations; but all decisions in connection with
the implementation of such advice and
recommendations shall be your sole responsibility.
2. Payment of Invoices. You agree to pay properly
submitted invoices within thirty (30) days of the invoice
date (or any other date that we may agree to in writing).
We shall have the right to halt or terminate entirely our
services until payment is received on past due invoices.
All fees, charges and other amounts payable to us
hereunder do not include any sales, use, excise, value
added or other applicable taxes, tariffs or duties,
payment of which shall be your sole responsibility,
excluding any applicable taxes based on our net income
or taxes arising from the employment or independent
contractor relationship between us and our personnel.
3. Term. Unless terminated sooner in accordance with its
terns, this engagement shall terminate on the
completion of our services hereunder. In addition, this
engagement may be terminated by either of us at any
time by giving written notice to the other party not less
than 30 calendar days before the effective date of
termination.
4. Ownership.
a) KPMG Property. We create, acquire or own
various concepts, methodologies, and techniques;
models; templates; software, user interfaces or
screen designs; general purpose consulting and
software tools; and logic, coherence and methods
of operation of systems (collectively, the "KPMG
Property'). We retain all ownership rights in the
KPMG Property. You shall acquire no right or
interest in such property, except for the license
expressly granted in the next paragraph. In
addition, we shall be free to provide services of any
kind to any other party as we deem appropriate, and
we may use the KPMG Property to do so. We
acknowledge that KPMG Property shall not include
any of your confidential information or your
tangible or intangible property, and we shall have
no ownership rights in such property.
b) Ownership of Deliverables. Except for KPMG
Property, and upon full and final payment to us,
deliverables or work product specified in the
engagement letter or proposal to which these terms
are attached (the "Deliverables") will become your
property. If any KPMG Property is contained in
any of the Deliverables, we hereby grant you, a
royalty -free, non-exclusive license to use the
KPMG Property in connection with the use of the
Deliverables.
Limitation on Warranties. THIS IS A SERVICES
ENGAGEMENT. KPMG WARRANTS THAT IT
WILL PERFORM SERVICES HEREUNDER IN
GOOD FAITH. KPMG DISCLAIMS ALL OTHER
WARRANTIES, EITHER EXPRESS OR IMPLIED,
INCLUDING, WITHOUT LIMITATION,
WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.
6. Limitation on Damages.
Except for your and our respective indemnification
obligations as described in these Standard Terms and
Conditions, neither you nor we shall be liable to the
other for any actions, damages, claims, liabilities, costs,
expenses or losses arising out of the services performed
hereunder for a total amount in excess of the fees paid or
owing to us for services rendered by us under this
engagement. In no event shall either you or we be liable
for consequential, special, indirect, incidental, punitive
or exemplary damages, costs, expenses, or losses
(including, without limitation, lost profits and
opportunity costs). The provisions of this Paragraph
shall apply regardless of the form of action, damage,
claim, liability, cost, expense, or loss, whether in
contract, statute, tort , or otherwise.
7. Infringement.
(a) We agree to indemnify, hold harmless and defend
you from and against all claims, liabilities, losses,
expenses (including reasonable attorneys' fees), fines,
penalties, taxes or damages (collectively "Liabilities")
asserted by any third party against you to the extent such
Liabilities result from the infringement by the
Deliverables of any third party s trade secrets,
trademarks, copyrights, or patents issued as of the date
of the attached Engagement Letter. The preceding
provisions shall not apply to any infringement arising
out of the following:
(i) use of the Deliverables other than in
accordance with applicable documentation or
instructions supplied by us or other than in accordance
with Paragraph 8(b);
(ii) any alteration, modification or revision
of the Deliverables not expressly agreed to in writing by
us; or
(iii) the combination of the Deliverables
with materials not supplied by us.
(b) In case any of the Deliverables or any portion
thereof is held, or in our reasonable opinion is likely to
be held, in any such suit to constitute infringement, we
may within a reasonable time, at our option, either:
Page 1 Revised 16 Jan. 01
KPMG LLP
Standard Terms and Conditions
(i) secure for you the right to continue the
use of such infringing item; or
(ii) replace, at our sole expense, such item 9•
with a substantially equivalent non -infringing item or
modify such item so that it becomes non -infringing.
In the event we are, in our reasonable discretion, unable
to perform either of options described in (i) or (ii)
above, you must return the Deliverable to us, and our
sole liability shall be to refund to you the amount you
paid us for such item.
f0.
(c) The provisions of this Paragraph 7 state our entire
liability and your sole and exclusive remedy with respect
to any infringement or claim of infringement.
8. Indemnification.
(a)You and we each agree to indemnify, hold harmless
and defend the other from and against any and all
Liabilities for injury to, illness or death of, any person or
persons regardless of status, and damage to or
destruction of any tangible personal property which the
other party may sustain or incur to the extent such
Liabilities result from the negligence or willful
misconduct of the indemnifying party.
(b) You acknowledge and agree that any advice,
recommendations, information or work product
provided to you by us in connection with this
engagement is for your confidential use. Except as
otherwise required by law, you will not disclose or
permit access to such advice, recommendations,
information or work product to any other party or
summarize or refer to such advice, recommendations,
information or work product or to our engagement
hereunder without our prior written consent. In that
regard, you will indemnify, defend and hold us harmless
from and against any and all Liabilities asserted against
us by any third party to the extent resulting from that
party's use or possession of or reliance upon our advice,
recommendations, information or work product as a
direct or indirect result of your use or disclosure of such
advice, recommendations, information or work product.
(c) The party entitled to indemnification (the
"Indemnified Party") shall promptly notify the party
obligated to provide such indemnification (the
"Indemnifying Party") of any claim for which the
Indemnified Party seeks indemnification and the
Indemnifying Party shall have the right to conduct the
defense or settlement of any such claim at the
Indemnifying Party's sole expense, and the Indemnified
Party shall cooperate with the Indemnifying Party. The
party not conducting the defense shall nonetheless have
the right to participate in such defense at its own
expense. The Indemnified Party shall have the right to
approve the settlement of any claim hereunder that
imposes any liability or obligation other than the
payment of money damages.
Cooperation. You agree to cooperate with us in our
performance of our services for you, including
providing us with reasonable facilities and timely access
to your data, information and personnel. You shall be
responsible for the performance of your employees and
agents and for the accuracy and completeness of all data
and information provided to us for purposes of this
engagement.
Force Majeure. Neither you nor we shall be liable for
any delays resulting from circumstances or causes
beyond our reasonable control, including, without
limitation, fire or other casualty, act of God, strike or
labor dispute, war or other violence, or any law, order or
requirement of any governmental agency or authority.
11. Limitation on Actions. Neither you nor we may bring
any action arising under or relating to this engagement
more than one year after the cause of action has accrued,
except that we may bring an action for non-payment not
later than one year after the date of the last payment due
to us.
12. Independent Contractor. You and we are both
independent contractors and neither you nor we is, or
shall be considered to be, an agent, distributor or
representative of the other. Neither you nor we shall act
or represent itself, directly or by implication, as an agent
of the other or in any manner assume or create any
obligation on behalf of, or in the name of, the other.
13. Confidentiality. You and we both acknowledge and
agree that all information communicated by one party
(the "Disclosing Party") to the other (the "Receiving
Party in connection with this engagement shall be
received in confidence, shall be used only for purposes
of this engagement, and no such confidential
information shall be disclosed by the Receiving Party or
its agents or personnel without the prior written consent
of the other party. Except to the extent otherwise
required by applicable law or professional standards, the
obligations under this section do not apply to
information that: (a) is or becomes generally available to
the public other than as a result of disclosure by the
Receiving Party, (b) was known to the Receiving Party
or had been previously possessed by the Receiving Party
without restriction against disclosure at the time of
receipt thereof by the Receiving Party, (c) was
independently developed by the Receiving Party without
violation of this Agreement or (d) you and we agree
from time to time to disclose. Each party shall be
deemed to have met its nondisclosure obligations under
this Paragraph as long as it exercises the same level of
care to protect the other's information as it exercises to
protect its own confidential information, except to the
extent that applicable law or professional standards
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KPMG LLP
Standard Terms and Conditions
impose a higher requirement. We may retain, subject to
the terms of this Paragraph, one copy of your
confidential information required for compliance with
applicable professional standards or internal policies. If
either you or we receives a subpoena or other validly
issued administrative or judicial demand requiring it to
disclose the other party's confidential information, such
party shall provide prompt written notice to the other of
such demand in order to permit it to seek a protective
order. So long as the notifying party gives notice as
provided herein, the notifying party shall be entitled to
comply with such demand to the extent permitted by
law, subject to any protective order or the like that may
have been entered in the matter.
14. Survival. The provisions of Paragraphs 1, 2, 4, 5, 6, 7,
8, 9, 11, 12, 13 and 15 hereof shall survive the
expiration or termination of this engagement.
15. Assignment. Neither party may assign, transfer or
delegate any of its rights or obligations without the prior
written consent of the other party, such consent not to be
unreasonably withheld.
16. Severability. In the event that any term or provision of
this Agreement shall be held to be invalid, void or
unenforceable, then the remainder of this Agreement
shall not be affected, and each such term and provision
of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.
17. Entire Agreement. These terms, and the Proposal or
Engagement Letter to which these terms are appended,
including Exhibits, constitute the entire Agreement
between us with respect to the engagement and
supersede all other oral and written representation,
understandings or agreements relating to the
engagement.
Page 3 Revised 16 Jan. 01
RESOLUTION NO. 2001-71
A RESOLUTION OF THE LODI CITY COUNCIL APPROVING KPMG
OPTION 3 PROPOSAL TO PERFORM THE CITY OF LODI'S READINESS
ASSESSMENT FOR GASB 34, AND FURTHER APPROVING
APPROPRIATION OF FUNDS
WHEREAS, in June 1999, Government Accounting Standards Board (GASB), issued Statement
34, requiring a new Reporting Model for Governments; and
WHEREAS, the reporting model prescribed in GASB 34 drastically changes the presentation of
the Comprehensive Annual Financial Reports. The new model is intended to enhance the clarity and the
usefulness of government financial statements to the citizenry, oversight bodies, investors and creditors;
and
WHEREAS, KPMG will assist City staff in addressing implementation of the new reporting
standards, utilizing the Government Reporting Implementation Process (GRIP). GRIP is a
comprehensive process developed by KPMG to help governments implement the new reporting
standards required under Statement 34 of the Governmental Accounting Standards Board "Financial
Statements —and Management's Discussion and Analysis — for State and Local Governments (GASB);"
and
WHEREAS, staff recommends approving KPMG Option 3 using a two-phase process as follows:
Phase I: Preparation of a Readiness Assessment and Criticality Report.
Recommended time line for this phase is April to June 2001. Staff
requests approval of contingency funds in the amount of $37,500.00 for
this phase.
Phase II: Preparation of the Detail Master Plan. Recommended time line for this
phase is July to September 2001. Staff to include a $37,500.00 budget
request in the Finance Department 2001-03 budget submittal.
NOW, THEREFORE, BE IT RESOLVED, that the Lodi City Council hereby approves the KPMG
Option 3 Proposal to perform the City of Lodi's Readiness Assessment for GASB 34, using a two-phase
process as set out above; and
BE IT FURTHER RESOLVED, that funds in the amount of $75,000.00 be appropriated for this
Readiness Assessment.
Dated: March 21, 2001
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
I hereby certify that Resolution No. 2001-71 was passed and adopted by the City Council of the
City of Lodi in a regular meeting held March 21, 2001, by the following vote:
AYES: COUNCIL MEMBERS — Hitchcock, Howard, Land, Pennino and Mayor Nakanishi
NOES: COUNCIL MEMBERS —None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLACKS ON
City Clerk
2001-71