HomeMy WebLinkAbout2023-4157Contract #2023-4157
1
Joseph Kloiber
From:Jean McGann <jean.mcgann@abdofs.com>
Sent:Tuesday, April 18, 2023 1:50 PM
To:Joseph Kloiber; Brenda Davitt
Subject:Re: City of Columbia Heights (Abdo FS) Proposal
This message originated from outside the City of Columbia Heights email system.Use caution when clicking hyperlinks,
downloading pictures or opening attachments. If necessary, contact sender by phone.WHEN IN DOUBT, THROW IT OUT!
Thank you! I appreciate the information. This is acceptable to Abdo. We are looking forward to working with you.
Regards,
Jean
Get Outlook for iOS
From: Joseph Kloiber <JKloiber@columbiaheightsmn.gov>
Sent: Tuesday, April 18, 2023 1:30:28 PM
To: Brenda Davitt <brenda.davitt@abdofs.com>
Cc: Jean McGann <jean.mcgann@abdofs.com>
Subject: RE: City of Columbia Heights (Abdo FS) Proposal
Brenda or Jean:
The proposal looks good. One point to clarify before I click the e-sign button. Under item 3 of the Articles of Agreement
and Recitals it states,“ The Contractor shall be the exclusive outsourced accounting services provider during the term of
this agreement.” That is correct with respect to the (payroll) accounting services the Client requests from the
Contractor.
However, as I mentioned in my initial email, the Assistant Finance Director position is currently turning over also. I may
not have previously mentioned that to address that turnover we have contracted with the City’s current independent
auditor (Redpath) to perform limited non-audit services including assistance with drafting the 2022 ACFR and the related
annual filing with MN OSA, etc. These non-audit services from Redpath are expected to finish by June 30th , 2023,
concurrent with their annual audit fieldwork. The City doesn’t expect any crossover between the services provided
under the two separate agreements. None of the services from Redpath involve payroll for any period or any type of
2023 activity for that matter.
Please let me know if this is acceptable to Abdo FS, and I will I click the e-sign button on the proposal.
Appreciatively,
Joseph Kloiber CPA | Finance Director
City of Columbia Heights | Finance Division
590 40th Avenue NE | Columbia Heights, MN 55421
jkloiber@columbiaheightsmn.gov
Direct: 763-706-3627 | Main: 763-706-3600
CITY COUNCIL MEETING
AGENDA SECTION CONSENT AGENDA
MEETING DATE APRIL 24, 2023
ITEM: Award Contract to Abdo Financial Solutions For Approximately Four Months of Payroll Services
DEPARTMENT: Finance BY/DATE:Joseph Kloiber, Finance Director/April 19, 2023
CITY STRATEGY:(please indicate areas that apply by adding a bold “X” in front of the selected text below)
_ Safe Community _ Diverse, Welcoming “Small-Town” Feel
X Economic Strength _Excellent Housing/Neighborhoods
_Equity and Affordability _ Strong Infrastructure/Public Services
_ Opportunities for Play and Learning _Engaged, Multi-Generational, Multi-Cultural Population
BACKGROUND:
The City Finance department is currently undergoing staff turnover in two key positions. These are the
Payroll/Financial Analyst, which has primary responsibility for preparation of the City’s biweekly payroll for all
City employees; and the Assistant Finance Director, which provides the majority of the back-up coverage for
payroll processing, in addition to providing many of the highest level accounting and managerial functions of
the Finance department. Remaining staff in the department have training in only a limited number of payroll
process steps.
The department has conducted interviews and is pursuing a conditional offer with an experienced candidate
to fill the vacancy for Assistant Finance Director as soon as practical. In consultation with the City Manager
and the Human Resources Director, the Finance Director recommends temporarily contracting for payroll
preparation services to stabilize this staffing transition, particularly with the impending relocation of City Hall
adding to the challenge.
By utilizing contract services to prepare payroll for approximately four months, the department can devote
attention to appropriately onboarding the new hire for the Assistant Finance Director to make them successful
faster, and then turn its attention to permanently filling the payroll vacancy, all while maintaining a relative
degree of stability in daily operations. Moreover, this time frame would allow the contractor to provide much
of the initial training of the permanent Payroll/Financial Analyst after they are hired.
As provided for in the City’s Purchasing Policy, given the emergency need for these temporary contract
services, staff did not seek proposals from alternate vendors. The vendor was selected based on their timely
response and staff’s knowledge of both the industry and the vendor.
Specifically, there are approximately five accounting firms that serve the majority of the small to mid-size
governments in Minnesota. Of these five firms, Abdo’s clients include a preponderance of the small cities that
lie just outside the metro area. These cities often have too few finance staff to manage staff turnover in-
house. As a consequence of this, Abdo has developed (in the Finance Director’s opinion) a well-recognized
reputation within local government for providing contract staff with a solid knowledge of the financial
practices unique to Minnesota local government. In this particular case for example, that would include
City of Columbia Heights - Council Letter Page 2
experience with the aspects of police and fire payroll, the public employees’ retirement association (PERA),
that a generalist temp worker would not have. Various Abdo staff also have experience with the same
software system used by the City.
Of course, obtaining this level of service on short notice comes at a premium. The contract is expected to cost
$12,000 to $14,000 per month. To the extent this exceeds the savings from the staff vacancies within the
Finance Department 2023 budget, the balance of the contract is expected to be covered by the portion of the
2023 General Fund budget reserved for such contingencies.
RECOMMENDED MOTION(S): Move to authorize staff to enter into an agreement with Abdo Financial
Solutions for payroll preparation services at the terms listed in the agenda packet.
ATTACHMENT(S):Service Proposal From Abdo Financial Solutions LLC