AGENDA TITLE:
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Adopt a Resolution Authorizing Acting City Manager to Execute a Professional Services Agreement with DKG Consultants, LLC for Finance, Accounting and Administrative Consulting Services in an Amount Not to Exceed $67,500 (CM)
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MEETING DATE:
August 6, 2025
PREPARED BY:
James Lindsay, Acting City Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing Acting City Manager to execute a Professional Services Agreement with DKG Consultants, LLC for finance, accounting and administrative consulting services in an amount not to exceed $67,500.
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BACKGROUND INFORMATION:
On June 10, 2025, City Council received Moss Adams LLP’s City-Wide Internal Controls Review Final Report. The Report shows that the City has opportunity to strengthen controls, policies, procedures and systems. The evaluation discovered gaps in internal controls of varying degrees across multiple departments and suggests the City address the following priorities in the next 6-12 months:
• Implement a fraud, waste, and abuse hotline
• Establish an internal audit function
• Implement a committee-based approach for investment management
• Assess current staffing levels
• Develop a process to ensure monthly accounts receivable aging reconciliation are performed and that both the preparer and reviewer sign off on the accounts receivable aging reconciliation as evidence of completion of their duties
• Set a threshold where a Utility Billing manager must review customer account adjustments prior to being posted
• Perform bank reconciliation for the past seven months
• Assess the necessity of fleet vehicles and dispose of vehicles that are no longer needed
• Strengthen the review process over the pre-import data validation for Fire Department payroll
• Strengthen the CAL-Card use and review process
• Establish a centralized procurement function to oversee and streamline procurement activities across all departments
Lodi Municipal Code Section 3.20.075 - Professional/technical services contracts provides for exceptions to the formal bid process for purchases greater than $60,000 including when a professional services agreement is for accounting and financial services. However, the City Manager’s Office solicited informal quotes from three (3) firms specializing in local government audit control and finance/accounting consulting services. Based on the received proposals, staff recommend DKG Consultants, LLC for their expertise in local government finance, accounting and budgeting, their succinct understanding of the scope of services and their proposed timeline for completion of the project.
Therefore, in an effort to expedite the recommendations from Moss Adams’ Report, staff recommend City Council authorize Acting City Manager to execute a professional services agreement with DKG Consultants, LLC for finance, accounting and administrative consulting services.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
DKG Consultants, LLC’s consulting services will result in expedited improved internal controls and fiscal transparency ensuring the City is fiscally responsible and prudent in upholding public trust.
FUNDING AVAILABLE:
Funds are available in the FY25/26 budget account 10095000.72450 for a not to exceed amount of $67,500.