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HomeMy WebLinkAboutResolution - 2023-R0282 - Contract 17170 with Weaver and Tidwell, LLP 6.13.23Resolution No. 2023-RO282 Item No. 5.7 June 13, 2023 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for and on behalf of the City of Lubbock, Contract No. 17170 for the audit of the annual financial statements, by and between the City of Lubbock and Weaver and Tidwell, LLP, of Dallas, Texas, and related documents. Said Contract is attached hereto and incorporated in this resolution as if fully set forth herein and shall be included in the minutes of the City Council. Passed by the City Council on June 13, 2023 APPROVED AS TO CONTENT: D. u Ko ich, Chi cial Officer APPROVED AS TO FORM: S' , Deputy City A ey RES.Contract- 17170 Weaver and Tidwell 5.26.23 Resolution No. 2023-R0282 Contract 17170 City of Lubbock, TX Audit of Annual Financial Statements THIS CONTRACT made and entered into this 13 day of June 2023, by and between the City of Lubbock ("City"), and Weaver and Tidwell, L.L.P. (Firm). RECITALS WHEREAS, the City has issued a Request for Proposals 23-17170-MA Audit of Annual Financial Statements. WHEREAS, the proposal submitted by the Firm has been selected as the proposal which best meets the needs of the City for this service; and WHEREAS, Firm desires to perform as an independent Firm to provide services upon terms and conditions maintained in this Agreement; and NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City and Firm agree as follows: City and Firm acknowledge the Agreement consists of the following exhibits, which are attached hereto and incorporated herein by reference, listed in their order of priority in the event of inconsistent or contradictory provisions: 1. This Agreement 2. Exhibit A - General Requirements 3. Exhibit B • Proposal and Best and Final Offer 4. Exhibit C Insurance Requirements Scope of Work Firm shall provide the services that are specified in Exhibit A. The Firm shall comply with all the applicable requirements set forth in Exhibit B, and C attached hereto. Article 1 1.1 Certified public accountant firm to audit the City's financial statements, perform the Federal and State Single Audits, perform the Passenger Facility Charge (PFC) audit, perform agreed -upon procedures for the Texas Commission of Environmental Quality, and prepare the accompanying reports for the fiscal years ending September 30, 2023 through 2027 with the option to extend on an annual basis through fiscal year ending 2030. 1.2 This contract shall remain in effect until the expiration date, performance of services ordered, or termination by either party with a thirty (30) day written notice. Such written notice must state the reason for cancellation. The City of Lubbock does not guarantee any specific amount of compensation, volume, minimum, or maximum amount of services under this proposal and resulting contract. 1.3 The Firm shall not assign any interest in this Agreement and shall not transfer any interest in the Agreement, whatsoever, without prior consent of the City. 1.4 All funds for payment by the City under this Agreement are subject to the availability of an annual appropriation for this purpose by the City. In the event of non -appropriation of funds by the City Council of the City of Lubbock for the goods or services provided under the Agreement, the City will terminate the Agreement, without termination charge or other liability, on the last day of the then -current fiscal year or when the appropriation made for the then -current year for the goods or services covered by this Agreement is spent, whichever event occurs first. If at any time funds are not appropriated for the continuance of this Agreement, cancellation shall be accepted by the Firm on 30 days prior written notice, but failure to give such notice shall be of no effect and the City shall not be obligated under this Agreement beyond the date of termination. Article 2 Miscellaneous. 2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in accordance with the laws of said State, without reference to choice of law provisions. 2.2 This Agreement is performable in, and venue of any action related or pertaining to this Agreement shall lie in, Lubbock, Texas. 2.3 This Agreement and its Exhibits contains the entire agreement between the City and Contractor and supersedes any and all previous agreements, written or oral, between the parties relating to the subject matter hereof. No amendment or modification of the terms of this Agreement shall be binding upon the parties unless reduced to writing and signed by both parties. 2.4 This Agreement may be executed in counterparts, each of which shall be deemed an original. 2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining provisions of this Agreement shall not be affected thereby. 2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of any parties otherwise to insist upon strict performance of any provision hereof shall not constitute a waiver of any subsequent breach or of any subsequent failure to perform. 2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, representatives and successors and may be assigned by Contractor or the City to any successor only on the written approval of the other party. 2.8 All claims, disputes, and other matters in question between the Parties arising out of or relating to this Agreement or the breach thereof, shall be formally discussed and negotiated between the Parties for resolution. In the event that the Parties are unable to resolve the claims, disputes, or other matters in question within 30 days of written notification from the aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies available at law or in equity. 2.9 At any time during the term of the contract, or thereafter, the City, or a duly authorized audit representative of the City or the State of Texas, at its expense and at reasonable times, reserves the right to audit Contractor's records and books relevant to all services provided to the City under this Contract. In the event such an audit by the City reveals any errors or overpayments by the City, Contractor shall refund the City the full amount of such overpayments within 30 days of such audit findings, or the City, at its option, reserves the right to deduct such amounts owing the City from any payments due Contractor. 2.10 The City reserves the right to exercise any right or remedy to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this do. 2.11 The contractor shall not assignor sublet the contract, or any portion of the contract, without written consent from the Director of Purchasing and Contract Management. Should consent be given, the Contractor shall insure the Subcontractor or shall provide proof of insurance from the Subcontractor that complies with all contract Insurance requirements document, this provision shall control. 2.12 Contractor acknowledges by supplying any Goods or Services that the Contractor has read, fully understands, and will be in full compliance with all terms and conditions and the descriptive material contained herein and any additional associated documents and Amendments. The City disclaims any terms and conditions provided by the Contractor unless agreed upon in writing by the parties. In the event of conflict between these terms and conditions and any terms and conditions provided by the Contractor, the terms and conditions provided herein shall prevail. The terms and conditions provided herein are the final terms agreed upon by the parties, and any prior conflicting terms shall be of no force or effect. 2.13 Contractor acknowledges by supplying any Goods or Services that the Contractor has read, fully understands, and will be in full compliance with all terms and conditions and the descriptive material contained herein and any additional associated documents and Amendments. The City disclaims any terms and conditions provided by the Contractor unless agreed upon in writing by the parties. In the event of conflict between these terms and conditions and any terms and conditions provided by the Contractor, the terms and conditions provided herein shall prevail. The terms and conditions provided herein are the final terms agreed upon by the parties, and any prior conflicting terms shall be of no force or effect. 2.14 Contracts with Companies Engaged in Business with Iran, Sudan, or Foreign Terrorist Organization Prohibited. Pursuant to Section 2252.152 of the Texas Government Code, prohibits the City from entering into a contract with a vendor that is identified by The Comptroller as a company known to have contracts with or provide supplies or service with Iran, Sudan or a foreign terrorist organization. 2.15 Texas Public Information Act. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this contract and the contractor or vendor agrees that the contract can be terminated if the contractor or vendor knowingly or intentionally fails to comply with a requirement of that subchapter. To the extent Subchapter J, Chapter 552, Government Code applies to this agreement, Contractor agrees to: (1) preserve all contracting information related to the contract as provided by the records retention requirements applicable to the governmental body for the duration of the contract; (2) promptly provide to the governmental body any contracting information related to the contract that is in the custody or possession of the entity on request of the governmental body; and (3) on completion of the contract, either: (A) provide at no cost to the governmental body all contracting information related to the contract that is in the custody or possession of the entity; or (B) preserve the contracting information related to the contract as provided by the records retention requirements applicable to the governmental body. 2.16 No Boycott of Israel. Pursuant to Section 2271.002 of the Texas Government Code, a) This section applies only to a contract that: (1) is between a governmental entity and a company with 10 or more full-time employees; and (2) has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity. (b) A governmental entity may not enter into a contract with a company for goods or services unless the contract contains a written verification from the company that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. 2.17 Contractor represents and warrants that: (1) it does not, and will not for the duration of the contract, boycott energy companies or (2) the verification required by Section 2274.002 of the Texas Government Code does not apply to the contract. If Contractor is a company with 10 or more full-time employees and if this Agreement has a value of at least $100,000 or more, Contractor verifies that, pursuant to Texas Government Code Chapter 2274, it does not boycott energy companies; and will not boycott energy companies during the term of the Agreement. This verification is not required for an agreement where a governmental entity determines that these requirements are inconsistent with the governmental entity's constitutional or statutory duties related to the issuance, incurrence, or management of debt obligations or the deposit, custody, management, borrowing, or investment of funds. 2.18 Confidentiality. The Contractor shall retain all information received from or concerning the City and the City's business in strictest confidence and shall not reveal such information to third parties without prior written consent of the City, unless otherwise required by law. 2.19 Indemnify. The Contractor shall indemnify and save harmless the city of Lubbock and its elected officials, officers, agents, and employees from all suits, actions, losses, damages, claims, or liability of any kind, character, type, or description, including without limiting the generality of the foregoing, all expenses of litigation, court costs, and attorney's fees, for injury or death to any person, or injury to any property, received or sustained by any person or persons or property, to the extent arising out of, related to or occasioned by, the negligent acts of the Contractor, its agents, employees, and/or subcontractors, related to the performance, operations or omissions under this agreement and/or the use or occupation of city owned property. The indemnity obligation provided herein shall survive the expiration or termination of this agreement. IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date. CITY OF U�CK JC: TRAY YOR A ST: Co ney Paz, City Se tary APPROVED AS TO ONTENT: D. Blu Kost ch, Chief Fin; ial Officer APPROVED AS TO FORM: Amy Sim eputy City Att FIRM: Firm's Signa e y -2�k�-J Printed Name Ar Say Le _ ph,. khev- Title REQUEST FOR PROPOSAL RFP 23-17170-MA AUDIT OF ANNUAL FINANCIAL STATEMENTS H. GENERAL REQUIREMENTS 1 INTENT EXHIBIT A a) The City of Lubbock (hereinafter called "City") is soliciting Proposals from interested auditor is (hereinafter called "the auditor") to provide Professional Audit Services. b) The information contained within this document is intended to provide interested auditors with the requirements and criteria that will be used to make the selection. 2 GENERAL INFORMATION a) The City is seeking the services of a qualified certified public accountant firm to audit the City's financial statements, perform the Federal and State Single Audits, perform the Passenger Facility Charge (PFC) audit, perform agreed -upon procedures for the Texas Commission of Environmental Quality, and prepare the accompanying reports for the fiscal years ending September 30, 2023 through 2027 with the option to extend on an annual basis through fiscal year ending 2030. b) The City is a municipal corporation governed by a Mayor -Council form of government. There is a City Manager, Chief Financial Officer, Chief Operating Officer and four Assistant City Managers as well as various divisional directors and department heads. c) The City has an Audit and Investment Committee that is involved with the selected auditor. They monitor the progress and results of the financial statement audit, ensure that control weaknesses and legal compliance violations identified in the course of the financial statement audit are promptly and effectively remedied, and monitor the adequacy of the City's internal control structure on an ongoing basis. d) The City's fiscal year begins on October 1 and ends on September 30. e) The City provides the following services to its citizens: public safety (police and fire), public works, parks and recreation, public health, electric, water, sewer, solid waste, stormwater utilities, airport, and general administrative services. f) More detailed information on the government can be found in the 2022 City of Lubbock Annual Comprehensive Financial Report (ACFR) and in the 2023 City of Lubbock Annual Operating Budget at httys:/lci.lbbock.tx.us'departmentsrfinance.'reports-budgets g) Contract initiation date: Upon acceptance by the City Council, for audit of the fiscal year ending September 30, 2023. 3 SCOPE OF SERVICES REQUESTED The following Scope of Work is to be provided by the successful auditor: a) The City's general purpose financial statements will be audited in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States, the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The auditor will express an opinion concerning whether the general purpose financial statements present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund and the aggregate remaining fund information of the City of Lubbock, and the respective changes in financial position and, where applicable, cash flows, for the year then ended in conformity with generally accepted accounting principles. b) In accordance with Government Auditing Standards, the auditor will consider the City's internal control structure over financial reporting and assess control risk. It is recognized that the management of the City is responsible for establishing and maintaining an internal control structure. c) Reports to be Issued Following the completion of the audit of the fiscal year's financial statements, the auditor shall file in the office of the City Secretary within 120 days after the last day of the City's fiscal year: — A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. — A report on the fair presentation of the stand-alone financial statements of Lubbock Power & Light, the City's electric utility fund. — A report on the internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. A report on compliance with requirements applicable to each major federal program and on internal control over compliance in accordance with the Uniform Guidance and on the Schedule of Expenditures of Federal Awards. A report on the internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards and the State of Texas Uniform Grants Management Standards. A report on compliance with requirements applicable to each major state program and on internal control over compliance in accordance with Uniform Grants Management Standards and on the Schedule of Expenditures of State Awards. A report on the Federal PFC and related Federal Requirements. -- A report to the Texas Commission on Environmental Quality pursuant to Subchapter C of Title 30 Texas Administrative Code §37.271. A report on adherence to the City's investment policies as required by the Public Funds Investment, Act Chapter 2256 of the Texas Government Code. The auditor shall communicate significant deficiencies and material weaknesses in writing to management and those charged with governance in accordance with auditing standards. The reports on compliance shall include all material instances of noncompliance. — Irregularities and illegal acts. Auditors shall be required to make an immediate written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the Chief Financial Officer and the Audit and Investment Committee. d) Special Considerations — The City will send its annual comprehensive financial report to the Government Finance Officers Association of the United States and Canada (GFOA) for review in its Certificate of Achievement for Excellence in Financial Reporting program. The auditor is required to provide special assistance to the City to meet the requirements of that program. — The City currently anticipates it will prepare one or more official statements in connection with the sale of debt securities that will contain the general purpose financial statements and the auditor's report thereon. The auditor may be asked to supply a confirmation letter as to debt service coverages or necessary "comfort letters." — The City may require the auditor's assistance to comply with new reporting requirements mandated by the Government Accounting Standards Board (GASB). — The audit will submit Form SF -SAC data collection form and a copy of the Uniform Guidance, 2 CFR 200 reporting package to the Federal Audit Clearinghouse. — The City may periodically amend the contract for a special engagement. An example of this would be a franchise fee audit. Proposal for Audit of Annual Financial Statements RFP 23-17170-MA City of Lubbock April 25, 2023 Jennifer Ripka, CPA I Partner, Assurance Services Weaver and Tidwell, L.L.P. 1 2300 N. Field Street, Suite 1000 1 Dallas, TX 75201 972.448.9268 1 iennifer.rir)ka@weaver.com weaver>p- Assutonce weaver . Advisory o-- CONTENTS CoverLetter..............................................................................................................................................1 t) Mandatory Elements...........................................................................................................................5 2) Technical Qualifications..................................................................................................................... 7 3) Price....................................................................................................................................................43 weaver>01- Assurance- Cover Letter A pril 25, 2023 City of Lubbock 13 14 Avenue K, 9th Floor Lubbock, Texas 79401 RE: REQUEST FOR PROPOSAL RFP 23-17170•MA AUDIT OF ANNUAL FINANCIAL STATEMENTS Honorable Mayor and City Council: In today's environment, the City of Lubbock (the City) faces increasing pressure 3�0+ from all sides: citizens, businesses and employees alike all have demands for enhanced access and services; taxpayers are pushing for added transparency; Government clients annually and oversight bodies continue to change and expand reporting requirements. 140+ Meeting all of these pressures involves a great deal of budgetary and operational complexity, plus one nearly priceless commodity: time. Often tasked with trying to cities& towns do more and more with less, your financial operations staff needs a firm that can 1100+ support them year round. Local/regional That's why we want to continue helping you entities Weaver and Tidwell, L.L.P. (Weaver) has over 70 years of serving government 50+ entities, includ'ng the City of Lubbock. With this proposal, Weaver commits to School districts continue provid'ng the City with a financial statements audit, Federal and State Single Audits, Passenger Facility Charge (PFC) audit, agreed -upon procedures for �00 + the Texas Commission of Environmental Qual'ty and preparing the accompanying Entities receiving a reports for the fiscal years ending September 30, 2023 through 2027, with the option single audit to extend on an annual basis through the fiscal year ending 2030. 50+ But our commitment to you means more than meeting the bare minimum: Our goo' GFOA award is to help you meet your operational challenges with ease by providing you with real recipients value beyond mere "check the box" compliance. In addition to completing your audit on time and with the fewest possible demands on your staff, we'll also continue to work to help you navigate changes in guidance and best practices and lay the foundation for achieving your longer term operational and strategic objectives. "Weaver's audit Team is professional, sensitive to our schedules, and are easy to work with. We enjoy working with our engagement team and feel our staff has learned a tremendous amount from Weaver. Weaver Municipal Client 99 Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 ) Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS I WEAVER.COM weaver Assuronce - Tax • Advisory Working with Weaver Key benefits of working with Weaver include: EXPERIENCE WITH MUNICIPALITIES With mk6re than 300 government clients- including 12 of the top 200 largest cities in the U.S. - Weaver professionals understand the complexities of governmental accounting, federal and state funding requirements, and the nuances of financial reporting. We have the insight that enables us to facilitate a more efficient audit, to more fully understand your reporting requirements and risks, and to provide recommendations that are truly customized to your needs, resources and constraints. �! IN-DEPTH KNOWLEDGE OF AUDIT STANDARDS. Our professionals understand the complexities and mnuances of single audit requirements, Government Finance Officers Association (GFOA) recognition standards, the impact of GASB Statements, and all the other small audit details that are so important for your financial reporting #, LEVERAGING INFORMATION TECHNOLOGY. Complementing our knowledge of audit standards p and procedures is our Irr-depth understanding of the systems used by municipalities. At any point in the engagement, we can call upon our IT Advisory Services group to assist the engagement team with reacting to complex IT issues, closing loopholes in our understanding of IT controls, or performing a high-level IT internal assessment to inform our audit procedures. HIGH -QUALITY WORK AND ON -TIME DELIVERY Weaver stays on schedule and on budget - {`p!] whatever the future holds. Our technology, including remote working capabilities, commitment to communication and robust quality assurance and management practices give us the ability to remain flexible, tackle challenges head-on, and complete engagements on time. ♦� COMMITMENT TO ONGOING COMMUNICATION Frequent, effective and honest communication i is critical to a successful audit. Your partner and engagement team leadership provide much more than oversight and accountability during the audit -- we remain highly accessible throughout the year as questions arise. LARGE -FIRM RESOURCES. PERSONAL SERVICE Our industry leaders hold active positions in key •,� industry groups such as the American Institute of Certified Public Accountants (AICPA) State and Local Government Expert Panel and the Governmental Audit Quality Center (GAQC). This extensive bench of knowledgeable government audit professionals means we can support the City by providing thought leadership on upcoming industry changes and complimentary Continuing Professional Education (CPE) tailored to your needs. At Weaver, success isn't built on engagements - it's built on relationships. We want to foster a lasting client relationship with you, with an ongoing commitment to responsiveness, communication and continuity. We continually look for ways to balance efficiency and innovation to bring you the best audit experience possible, ensuring our suggestions for improving the efficiency and effectiveness of your financial processes remain practical and relevant to your broader, long-term objectives. Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 ( Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS I WEAVER.COM weaver>op- Assuronce• We Want to Work with You Our goal is to provide you with more than just a financial audit. We want to offer the support you need year-round to maintain your accounting operations with efficiency, accuracy and security. On the page. that f{=]iIOW we out ne how Weaver won't just meet your deadlines, but will exceed your expectations. . 6W 1 confirm that I am an authorized individual that can contractually bind the Firm. If you have any questions regarding this proposal or any other matter, please contact me at any time. Sincerely, r C V Jennifer ipka, CPA I Partner, Assurance Services 972.448.9268 1 jennifer.ripka@weaver.com Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 j Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS I WEAVER.COM weaver>10- Assuronce • 1) Mandatory Elements ./ a. Independence and License to Practice Conformity with the rules of professional conduct requires that a certified public accountant be independent, in fact and appearance, with respect to a client for whom he or she is issuing a report on financial statements. (Texas State Board of Public Accountancy Rules of Professional Responsibility, sec. 501.111 Weaver is the incumbent for the City of Lubbock audit services. The firm and proposed audit team members of Weaver have had no other professional relationships involving the City or any of its component units for the past five years, and are independent with respect to the City and its agencies and component units, including direct and indirect financial interest and relationship of the proposed audit team to employees and directors of the City. Additionally, the firm meets the independence standards of GAGAS. ./ License to Practice in Texas Weaver is licensed to practice accountancy in Texas. We are a registrant with the Texas State Board of Public Accountancy under Section 14 of the Public Accountancy Act of 1979, Texas Revised Civil Statutes, Article 41a-1. The proposed engagement partner and key audit team leadership (management level and above) are each licensed by the Texas State Board of Public Accountancy as Certified Public Accountants. 4/ b. No Conflict of Interest Texas State Board of Public Accountancy 505 E Huntland Drive. Sulm 380. Austin Texas 78752 WEAVER ANO TIDWELL, L.L.P. OFFICE SUITE 1100 4400 POST OAK PKWY HOUSTON TX 77027 Office License ID: W08392 Firm License ID- P04338 Expires 513112023 Weaver confirms that we have no conflict of interest with regards to any other work performed by the firm for the City. c. Required Timeframe Weaver has the ability to complete the audit and submit the financial statements and auditor's reports to the office of the City of Lubbock City Secretary within 120 days after the last day of the City's fiscal year. Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock Weaver and Tidwell, L.L.P. I Page 5 weaver • 01- d. Continuing Professional Education Program The firm's continuing professional education (CPE) policy complies with the revised government auditing standards requirement regarding formal education for professionals responsible for planning, conducting or reporting on government audit engagements. All of the audit team members have met, and will continue to meet, the generally accepted government auditing standards (GAGAS) requirement for CPE, which is 80 hours of CPE every two years, with a minimum of 20 hours of CPE in each year of that period and at least 24 hours relating to governmental audit environment. Weaver provides extensive customized, in-house training on government audit standards and firm audit methodologies every year. Representative annual CPE courses offered to the proposed audit staff include: P. State and Local Government Audit Planning Considerations ► Single Audit (includes financial statement and Uniform Guidance internal control requirements) ► Ethics: An Overview for Texas CPAs ► Sampling and Revenue Testing Training ► Governmental Accounting and Financial Reporting This internal training is supplemented by external classes, workshops, seminars and conferences as needed to meet CPE requirements and specific client needs. All staff assigned to your engagement comply with requirements for professionals who plan, conduct or report on government audit engagements F*/j Proposal for Audit of Annual Financial Statements (RFP 23.17170-MA) I City of Lubbock Weaver and Tidwell, L.L.P. I Page 6 weaver Assurance Tax -Advisory 2) Technical Qualifications a) Experience and Expertise Qualifications About Weaver Founded in 1950, Weaver has been provid ng assurance and ad i -ory services to government entities, includ'ng the city of Lubbock for more than seven decades. With 15 offices from coast to coast, and more than 1,000 professionals, we're committed to helping our government clients meet regulatory requirements, but we also bring a long-term perspective to help them improve their operations and services. By helping clients build mature, strategic processes and governance, we position them to more effectively address problems, flag potential issues such as fraud or loss, and achieve compliance. At Weaver there are no "one -size -fits -all' solutions We combine leading technical knowledge with specific Industry experience to provide highly customized services tailored to each client's needs ► Government N ► Not -for -profit ► Higher Education V ► Real Estate 02 ► Construction o. Hospitality & Entertainment w` ► Health Care ,wW ► Professional Services vI ► Private Equity ► Insurance D. Techno ogy ► Blockchaln & Digital Assets ► Alternative Investments ► Financial Services ► Banking ► Manufacturing P. Dislr button & Logistics ► Oil & Gas ► Energy Trans lion & Renewab es P% 0 Advisory Services ► Risk Advisory Services ► IT Advisory Services P. Digital Transformation & Automation P. Government Consult ng Services P. Asset Management Consulting ► Accounting Advisory Services ► Transaction Advisory Services ► Valuation Services ► Forensic & Litigation Services ► Family Office Services Assurance Services ► Audit. Review & Compilation P. Agreed -Upon Procedures ► Employee Benefit Plan Audit ► SOC Reporting ► Attestation Services ► IFRS Assessment & Conversion Tax Services ► Federal Tax ► State & Local Tax ► International Tax ► Personal Client Services 35 Top 35 Firm nationwide INSIDE PUBII(A((OUNIING BESTA1015*1 FIRMS 2022 l ' �7'`.ttno Atli GL00A.A i INSIDE PUBII(p(NItR11BG LlTOP I 2022 Our goal is to balance both high development with high performance in order to meet the long term goals of each individual, team and our firm, and every person plays a part. Our core values drive virtually everything we do here at Weaver — the way we work, the way we operate and the way we serve our clients. Our Core Values �` O'xx X too do—..ice— >l�,Pti Take initiative. Do work you're Act with integrity Strive to Be adoptable Help each other Respect everyone Keop per"clive: Leod. Always deeply proud of no molter whol, harricend client and innovalive n succeed of work for who they ore Be possionore think about flaw at if Weaver were etpectatiorri. allholyou do and in Sre and whorl they and diligent we can mprove your business, always. contribute. no molter how ddlfereni. and have fur Proposal for Audit of Annual Financial Statements (Ri-r zs' I i I iu-MA) I City of Lubbock weaver (ar:d Tidwel L.l P. I rage 7 weaver>10- Assuronce In Focus: Municipal Experience With more than 70 years of experience meet'ng the assurance and advisory needs of government entities including some of the nation's largest cities and their utilities, school districts and state -funded entities, Weaver understands the complexities of your financial operations, the challenges and risks specific to municipalities, and the nuanced compliance requirements y:.)u must meet. Weaver's dedicated government, higher education and not -for -profit aud't practice is one of the largest industry practices in the firm, with more than 170 professionals are focused on the specific needs of these clients. 300+ Government clients r----------- i i Offerings • External audit • Risk assessment Internal Audit Business process Improvement IT audit and security Valuation Forensic accounting • Fraud investigation • Agency restructuring and reorganizatior • Strategic planning • Organizational development r-- - Municipal clients State agencies z W OCities so+ z School districts 100+ Local/regional entities LU In Z 50+ I GFOA award recipients AICPA GAQC Member Higher education Slate Govemment Public K-12 Local Govemment Weaver leaders participate in key standard -setting bodies, including the American Institute of Certified Public Accountants' (AICPA's) Council, State & Local Government Expert Panel and Government Audit Quality Center (GAQC), and the Government Finance Officers Association (GFOA) Special Review Committee. Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock weaver and Tidwell, L.L.P. I Page 8 weaver . Advisory 01- High Standards of Service: Focus on local Government We regularly send out client satisfaction and feedback surveys to all our clients to evaluate the delivery of our services. In an effort to constantly improve, we're always ready to integrate changes to our processes based on the feedback we receive. Our local government clients have rated us highly in two key surveys. Involvement in Professional Organizations Working with Weaver means not just confidence in the result of your annual financial audit, but also year-round access to well-informed industry leaders who are literally just a phone call away. NET PROMOTER SCORE 9.5 If a client rates us a 9 or 10 they're strongly likely to recommend Weaver CLIENT SATISFACTION With our years of experience serving government entities and involvement in standard -setting bodies, our professionals will work with your engagement team to make sure you have access to98% industry insights, often even alerting you before major changes ha ppen, and using this head start to efficiently and accurately coach 'data Iron) )he lost three years you through potential issues. 98% of our local government f\v$ clients are satisfied with our services Specific memberships and positions held by firm leaders include: to. Member, GFOA and its Special Review Committee No. Member, Government Finance Officers Association of Texas (GFOAT) and its Financial Reporting and Regulatory Response Committee to. Member, AICPA, its GAQC and its State 8, Local Government Expert Panel ► Member, Texas Society of Public Accountants (TXCPA) and its Professional Standards Committee Government Subgroup, TXCPA to. Member, Texas Association of School Business Officials (TASBO) Education Offered to Our Clients Weaver's most immediate and ongoing professional development and technical assistance offered to clients occurs in the course of our work with you, during the audit and throughout the year. Our partners and managers will inform you of pending regulations and requirements, evolving industry standards and new best practices as we become aware of them. Additionally, we are available for technica accounting questions as needed at any time. Weaver routinely offers half -day to full -day continuing professional education (CPE) classes to targeted sectors of our client base. These classes are led by dedicated, industry -specific, professionals within our firm. We offer them at no cost to you: these opportunities are part of our commitment to add value to our clients. Weaver is a registered provider of CPE to the Texas Society of CPAs. Proposal for Audit of Annual Financial Statements (RFP 23.17170•MA) I City of Lubbock Weaver and Tidwell, L.L.P. I Page 9 weaver>p­ Assuronce• Resources for Your Success Weaver wants to furnish you with the information and support you need to master many different operational challenges. That is why we provide a constant stream of webinars, podcasts, toolkits and research on issues facing cities. Pr 2023 GOVERNMENT CPE EVENT SUCCESS STARTS > HERE Wednesday I weaver> Fight P-Card Fraud With These Ten Steps weaver> Crossing the Finish Line for Lease Accounting: Race -Day Questions THOUGHT LEADERSHIP WEAVER: Beyond the LNUMBERS weaver} Are You Ready to Comply With GASB 96? weaver} IY113C10 Qt Single Audits -- What's New. What's Changing, What's Challenging? K E' wwle�slarrmw 1^e m..•.1 o-a�rv-+neat n l.,,n �cl.rn.•n ny �l wry: „o,,,u«I t.. L,.,W. 41r (rtlela, Ln{ly arM�l S an` Irtll Ie1M Ir/ scPM np rtlPral TlYxa•Yra! S750000- inalr5{, ra, �ti'va.w s u+e.lwt� •a4� GV.tY, inure PnclReIrYlu 1•-' -Dale you,S 11. ."M r 01 N*W twlu Proposal for Audit of Annual financial Statements (RFP 23.17170•MA) I City of Lubbock Weaver and Tidwell, L.L P. I Page 10 weaver Assurance . Tax • Advisory Location of Office Performing the Work This engagement will be managed and staffed with resources from our Dallas office, located at: 2300 N Field Street, Suite 1000. Dallas TX 75201. In addition, all of Weaver's professionals work collaboratively across locations, so if engagement needs dictate we are able to draw upon additional resources and in-house subject matter advisors. With this leveraged model, Weaver is able to offer you a customized team that can adjust dynamically and quickly to meet your needs throughout all stages of the audit season. It also enables us to provide an efficient, effective audit with added innovation, thought leadership and insight. Number and Nature of Engagement Staff Part-time leadership resources include: ­ 06,1 «cou Texas 7 ,**.o, lxo6on: sewtnp teas 60n1, Since 1950 Jennifer Ripka, the engagement partner, leads the overall engagement. Jennifer will be respons'ble for Weaver's relationship with the City, including approval and execution of the audit plan, and is the person to turn to when you have questions or a request. Jennifer provides guidance to the rest of the team, who will consult with her on complex technical matters. She reviews audit documentation to ensure that required elements are complete and to identify any risks or significant issues that call for further discussion. She will discuss preliminary reports and recommendations with you before the reports are finalized, and then she and the manager will present those reports to the audit committee and city council. Sara Dempsey will ensure excellent quality in our audits. Weaver assigns a technical reveew partner to review audit documentation and reports to be issued. The technical review partner is the one with the skills and experience to provide a second opinion, if needed, or advise on unusual or difficult situations. Bryant Sanchez, the manager, is responsible for monitoring the progress of an engagement against client expectations. Meredith will lead staff in the field, provide you with regular status updates, manage team responsibilities, and monitor hours expended relative to the budget. As an experienced audit leader, Bryant will research technical matters and advise engagement staff and City management on the best resolution of complex or non -routine questions. Bryant will also review the work of staff auditors to ensure coverage, completeness, accuracy and technical proficiency. Final y, if issues arise, Bryant will work closely with both you and the Weaver team to resolve them. As needed, Brittany George will act as an advisor on the engagement when questions arise surrounding the City's IT environment and system controls, and Ellsa Gilbertson will provide data analytics services. Full-time resources for the City's audit will include: Senior Associate Chris Walker and 1-2 Weaver associates, as needed. As the leader of Weaver's engagement team while they are working in the client offices, Chris will request documents needed for testing, perform substantive testing and data analysis, and keep the manager informed of the audit's progress and status and provide additional supervision to the rest of the Weaver team in the field during the performance of the engagement. We utilize our function -specific staffing approach, whereby we deploy right -sized teams based on specific audit tasks and the timing of those tasks. With this leveraged model, we are able to provide the City access to professionals at all staff levels to meet audit timing and subject matter needs without budget surprises. Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock Weaver and Tidwell, L.LP I Page I' weaver>o- Amrance• GFOA and ACFR Experience Nine Weaver staff members currently serve on the GFOA's Special Review Committee, which evaluates ACFRs for eligibility with Certificate of Achievement Program requirements. Weaver has 50+ clients that submit and receive the GFOA Certification of Achievement. mno� For our clients who submit the Annual Comprehensive Financial Report of the GFOA, one of our GFOA Special Review Committee members reviews the financial statements to ensure that they meet the standards to be recognized. Please see Knowledge of Full -Service Municipal Corporations for more information regarding specific clients who have successfully received the GFOA Cerffication of Achievement. External Quality Control and Peer Review External peer review is designed to g've the public additional confidence in the quality of our audit and accounting practice. As such. every three years, the firm engages an independent accounting firm to determine whether our quality control policies and procedures are suitably designed, and whether our techniques for implementing these policies and procedures comply with professional standards. Each peer review has a so included a review of governmental audit engagements, as mandated by AICPA Peer Review standards and GAQC requirements. Weaver has received unmodified reports on every peer review to date. owrr. .r.ara. e...,rwr.rrw+.rN.d..n.w..ry......at Pr„adw.wa,a..aau actbM q,•a.t.l1•.r. a..b,a. m RIOa.,r.•.rrr.l ,Wr..o,„,11r<, b Iv M wMd aW 1L prMr..�rtlr,.srryMra b.r,.11..nraW,prwWW.r.a.4wYMr,wVrlrye,l (rM Oil • •rryN.w4P.rra.MmIW4a1•. Ww.wa.r.rll L. M.wwwd,wlrr�.r ,..raw. L•uleli;iilh O.r t aAMYM.tI(O P.i1'tt M Lail h(tl+`M Orratl (a+rd )Irrrb, ,I. M)) t. tal.rlrM Nywwr a )b..a l V N1N Mra..lhw 4ww(ew.dtn W...r.,.fw.dlwY _dw.Wm.udM".-1a ra a.&IM rang 0 fY.•Ir a Id—t to Ualt.r $Mhuab t..q(aw.wn.e,.Weafay(daa Pnw..r. rlv.<tb•„.a.a* W,«, wdrdtaay ll. )O)7 Orr►_...rr 1. 0. 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Mnda Wq a. w,N VMabM r,d.. taKN •.d.a.tr.<Ibnt d „(.k. wV'N.tlom 1501 t rd 10() r,NIIrN)11 AICPA National Peer Review Committee (NPRC). a„Pnd wprw .w.r w,aWw.duwnar<r ..yre.w„ye,nw ak„M 4tM dwd Our latest peer review was accepted by the NPRC in February 2023; Weaver received a pass rating, the highest grade possible. -- Disciplinary Action Weaver has no disciplinary action from the past three years to report, and no field or desk reviews. Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock weaver and Tidwell, L.L.P. I Page 12 weaver>p-- Assurance Partner, Supervisory and Staff Qualifications and Experience Team Organization Weaver takes a funct'on-specific approach to engagement staffing: we focus on leveraging the right resources at the right times, ensuring that teams are assigned based on the specific tasks required during each of the audit phases, as well as the timing of those tasks. The people depicted in the organization chart below have all been chosen specifically for their understanding of municipal operat;onal structures and financial reporting requirements. Qualifications for key team members, including information regarding educational background and professional licenses held, are provided on the following pages. "I'm pleased with our team of auditors. They're pleasant to work with efficient. courteous and professional. When I have a question, they take time to explain the answer. If they don t know the answer, they research and get back to me. - Weaver Municipal Client 919 Proposal for Audit of Annual Financial Statements (RFP 23.17170-MA) I City of Lubbock Weaver and Tidwell, L.L.P. I Page 13 weaver>pl- Assurance b) Audit Approach Communication Approach Throughout each engagement, and our entire relationship with you, Weaver will communicate openly and often. Your Weaver team will hold the following meetings with management and, when appropriate, with those charged with governance: ► A planning meeting to discuss prior services and learn your expectations for the upcoming engagement ► Entrance and exit conferences at the beginning and conclusion of fieldwork ► Progress conferences during fieldwork to discuss work in progress and open items ► A conference where the draft copy of reporting and deliverables are reviewed I. Presentations of the final report for key stakeholders, as needed We'll use these communications to: ► Provide technical updates and discuss the impact on your organization P. Learn about changes in your forward -looking strategies as we look to the next season ► Understand your overall satisfaction to date We'll continue to keep you informed of any significant events that arise during the course of the engagement. Whenever there's a question or a potential issue, we'll bring it to your attention, seek your confirmation of the data and ask about any relevant circumstances - and we encourage you to do the same. r4kThrough open communication, our objective is to elim note surprises while providing an efficient. effective engagement. Mid -Year Consultations Calling us with questions at the beginning of an engagement can save significant time at the end. At Weaver, we consider ourselves your aud'tor all year round, not just during the audit season. We do more than accept questions throughout the year — we encourage you to reach out to us whenever you need to. Year-round consultations with your engagement partner and manager will be provided to you at no additional cost, a benefit of which we encourage you to take advantage. Every October, Weaver hosts "Weaver Wednesdays," a series of virtual Government CPE Tra*Wng that includes a range of hot topics for financial and accounting leaders. 2022's sessions covered the catest compliance requirements and GASB updates as well as timely topics impacting government operations such as cybersecurity, fraud prevention and digital transformation. Weaver's 2022 series is available for ongoing viewing on the Weaver events page, under the Government industry information. In addition to timely thought leadership via blogs and webinars, Weaver also publishes a podcast, Weaver: Beyond the Numbers -- The Business of Government aimed at government eader . Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock weaver and Tidwell, L.L.P. I Page 32 weave r Assurance • Tax . Advisory Protecting Your Information Weaver is always mindful of our responsibility to manage confidential personal and financial data, so we've created a comprehensive array of procedures rooted in industry -standard best practices and systems to protect client and firm information. To start, physical security measures include secured doors on our offices and workstations that lock automatically. Printed documents are kept in secured areas, and unneeded documents are collected in locked containers for shredding. We diligently require data security reports from third -party vendors, monitoring how these third parties protect our data, and making sure we know where our data is stored. In-house cybersecurity measures include two - factor authentication and encrypted laptops, hard drives and email. Weaver also enforces mandatory encryption of all removable media (such as USB drives). These are just some examples of the exhaustive procedures we follow to make sure client data remains secure. Additional details regarding our IT and security policies are available upon request. Weaver's industry -leading data safeguards — such as two -factor authentication O exceed state government requirements for protecting information managed by state rO agencies. Proposal for Audit of Annual Financial Statements (RFP 23.17170-MA) I City of Lubbock Waver and Tidwell, I.I.P. I Page 33 weaver>10- Assurance Proposed Segmentation, Level of Staff and Number of Hours An overview of the key segments of our methodology and estimated timeline is provided below; as part of our planning stage, we will meet with management to develop a final, mutually agreed -up timeline. Additional non -audit resources, such as IT Advisory Services, will be consulted as needed: however, such hours are not expected to be a significant proportion of the total and are therefore not represented below. PHASE KEY PURPOSE AND ACTIVITIES We will understand your priorities and risks, finalize the audit plan, and compile document requests. We will document and test, as applicable. internal controls, determine compliance for major programs (as applicable) and identify key risks. STAFF TIMING Partner, Manager, Upon award Supervisor Partner, July/ Manager, August Supervisor We will perform substantive testing and Partner, data analysis, prepare work papers and Manager, December communicate any identified issues. Supervisor We will compile our draft report, perform technical reviews, confirm findings with Partner. management and incorporate feedback, Manager, January as applicable; draft ACFR provided for Supervisor review. We will deliver final reports and other Partner, deliverables to management, and present Manager. January results, as applicable. Final ACFR Supervisor presented. "The Weaver team is professional and diligent in meeting our audit timelines. I appreciate their willingness to have discussions throughout the year on any new requirements which is helpfu . and their response time on questions is always prompt." — Weaver Government Client Proposal for Audit of Annual Financial Statements (RFP 23-17170-MA) I City of Lubbock Weaver and Tidwell, L.L.P. I Page 34 EXHIBIT B weave r Assuronce • Tax • Advisory May 19, 2023 Marta Alvarez Purchasing Department & Contract Management City of Lubbock 1314 Avenue K, 91h Floor Lubbock, TX 79401 Re. Best and Final Offer (BAFO) I RFP 23-17170-MA Audit of Annual Financial Statements $O4+ Deaf Marta: Governmentcl'enh annually Weaver and Tidwell, L.L.P. (Weaver) has over 70 years of serving government entities, 40+ and with this BAFO, Weaver commits to providing the City of Lubbock (the City) with Cities& towns auditing services described in the RFP. Our Best and Final Offer O Local/regional aOgoal Please see the attached Price Proposal. It represents our best and final offer to the City entities for RFP 23-17170•MA Audit of Annual Financial Statements. I confirm that I am an authorized individual that can contractually bind the Firm. If you j School districts have any questions regarding this proposal or any other matter, please contact me at '100+ any time. Entities receiving a Sincerely, single audit so+ f GFOA award recipients l- Jennifer Ripka, CPA I Partner, Assurance Services 972.448.9268 j jennifer.ripka@weaver.com Weaver and Tidwell, L.L.P. 2300 North Field Street, Suite 1000 j Dallas, Texas 75201 Main: 972.490.1970 CPAs AND ADVISORS I WEAVER.COM Best and Final Offer N—Ic Fee for each of the audit year. &wv"LMvdYrup/wtlld Bid 01.1 2023 1 S235.0w00 $235.00000 $q**s ►:AOvAue6S lMA Bid $1.; 2024 + S235"00 $235.00000 WCMM Anvduwsp Bid t1J 2025 + S23S,000.00 $235,00000 906Ma MvOWS611 Bid 2026 S23500000 S23SWOW SUCCU :N WA"p Bld ri•S 2027 f 123S=W S23 OW 00 Option to extend on an annual basis through fiscal year ending 2030 SmoomMvOmol vM ON 92.1 2028 i S24,5.0000o $2r5,00o 00 Sroow:MwluaplaaI Bid KI-2 2029 1 6245.00000 t245A00.00 Soon = AD 1, v pew od Bid •2J 2023 S 245.00000 $ 24.5.00000 Exhibit C INSURANCE REQUIREMENTS Prior to the approval of this contract by the City, the Contractor shall furnish a completed Insurance Certificate to the City, which shall be completed by an agent authorized to bind the named underwriter(s) to the coverages, limits, and termination provisions shown thereon, and which shall furnish and contain all required information referenced or indicated thereon. THE CITY SHALL HAVE NO DUTY TO PAY OR PERFORM UNDER THIS CONTRACT UNTIL SUCH CERTIFICATE SHALL HAVE BEEN DELIVERED TO THE CITY. The City reserves the right to review the insurance requirements of this section during the effective period of the contract and to require adjustment of insurance coverages and their limits when deemed necessary and prudent by the City based upon changes in statutory law, court decisions, or the claims history of the industry as well as the Contractor. Subject to the Contractor's right to maintain reasonable deductibles in such amounts as are approved by the City, the Contractor shall obtain and maintain in full force and effect for the duration of this contract, and any extension hereof, at Contractor's sole expense, insurance coverage written by companies approved by the State of Texas and acceptable to the City, in the following type(s) and amount(s): Auto Liability Requirements: $1 M/occurrence is needed Commercial General Liability Requirements: $1 M occurrence / $2M aggregate (can be combined with an Excess Liability to meet requirement). Commercial General Liability to include Products - Completion/OP, Personal and Advertising Injury, Contractual Liability, Fire Damage (any one fire), and Medical Expenses (any one person). Commercial General Liability Heavy Equipment Endorsement: NOT APPLICABLE Commercial General Liability Digging Endorsement: NOT APPLICABLE Professional Liability Requirements: $1 M occurrence 1$2M aggregate Workers Compensation Requirements: Statutory. If the vendor is an independent contractor with no employees are exempt from providing, Workers' Compensation coverage, they must sign a waiver (obtained from COL Purchasing) and include a copy of their driver's license. Employer Liability ($1) is required with Workers Compensation. Special Insurances Crime Protection Coverage Requirements: NOT APPLICABLE * The City of Lubbock (including its officials, employees and volunteers) shall be afforded additional insured status on a primary and non-contributory basis on all liability policies except professional liabilities and workers' comp. * Waivers of Subrogation are required for CGL, AL, and WC. * To Include Products of Completed Operations endorsement. * Carrier will provide a 30-day written notice of cancellation, 10-day written notice for non- payment. * Carriers must meet a A.M. Best rating of A- or better. * Subcontractors must carry same limits as listed above. IMPORTANT: POLICY ENDORSEMENTS The Contractor will provide copies of the policies without expense, to the City and all endorsements thereto and may make any reasonable request for deletion, revision, or modification of particular policy terms, conditions, limitations, or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any of such policies). Upon such request by the City, the Contractor shall exercise reasonable efforts to accomplish such changes in policy coverages, and shall pay the cost thereof. Any costs will be paid by the Contractor. REQUIRED PROVISIONS The Contractor agrees that with respect to the above required insurance, all insurance contracts and certificate(s) of insurance will contain and state, in writing, on the certificate or its attachment, the following required provisions: a. Name the City of Lubbock and its officers, employees, and elected representatives as additional insureds, (as the interest of each insured may appear) as to all applicable coverage; b. Provide for 30 days' notice to the City for cancellation, nonrenewal, or material change; c. Provide for notice to the City at the address shown below by registered mail; d. The Contractor agrees to waive subrogation against the City of Lubbock, its officers, employees, and elected representatives for injuries, including death, property damage, or any other loss to the extent same may be covered by the proceeds of insurance; e. Provide that all provisions of this contract concerning liability, duty, and standard of care together with the indemnification provision, shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. NOTICES The Contractor shall notify the City in the event of any change in coverage and shall give such notices not less than 30 days prior the change, which notice must be accompanied by a replacement CERTIFICATE OF INSURANCE. All notices shall be given to the City at the following address: Marta Alvarez, Director of Purchasing & Contract Management City of Lubbock 1314 Avenue K, 91h Floor Lubbock, Texas 79401 Approval, disapproval, or failure to act by the City regarding any insurance supplied by the Contractor shall not relieve the Contractor of full responsibility or liability for damages and accidents as set forth in the contract documents. Neither shall the bankruptcy, insolvency, or denial of liability by the insurance company exonerate the Contractor from liability.