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HomeMy WebLinkAboutPR 24711: REJECT AND REBID AUTITING SERVICES nrt rtfrrtt !etas INTEROFFICE MEMORANDUM Date: 12/18/2025 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Lynda Boswell, Director of Finance RE: P.R. 24711 —Reject and Rebid Auditing Services Introduction: The purpose of this memorandum is to request City Council approval to reject all responses received to Request for Qualifications (RFQ) No. P25-093 for auditing services for the City of Port Arthur and to authorize the Purchasing Department, in coordination with the Finance Department, to revise the solicitation and rebid the services as a Request for Proposals (RFP). Background: The Finance Department, through the Purchasing Department, issued RFQ No. P25-093 for professional auditing services for the City of Port Arthur in accordance with applicable procurement requirements. The solicitation was advertised and on October 23, 2025 an addendum with revised Request for Qualification, and one (1) response was received. Following review of the response,the Finance Department determined that the receipt of a single response does not provide the City with a sufficient competitive basis to evaluate multiple qualified certified public accounting firms for the City's annual audit services. Financial Impact: There is no financial impact associated with the rejection of the RFQ or the rebid of the services. The rebidding process will not obligate the City to expend funds and is a procedural step to secure the most qualified and cost-effective auditing services. Recommendation: The Finance Department has concluded that it is in the City's best interest to revise the procurement approach and reissue the solicitation as a Request for Proposals, rather than a Request for Qualifications. An RFP will allow the City to evaluate firms based on both qualifications and cost, resulting in a more comprehensive comparison and a more competitive procurement process. It is recommended that the City Council: 1. Reject all responses received to RFQ No. P25-093 for auditing services. 2. Authorize the Purchasing Department, in coordination with the Finance Department, to revise the solicitation method and specifications and rebid the services as a Request for Proposals. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P. R. NO. 24711 TNR 12/18/2025 RESOLUTION NO. A RESOLUTION AUTHORIZING THE REJECTION OF ALL RESPONSES RECEIVED TO THE REQUEST FOR QUALIFICATIONS NO.P25-093 FOR AUDITING SERVICES FOR THE CITY OF PORT ARTHUR; AUTHORIZING THE PURCHASING DEPARTMENT, IN COORDINATION WITH THE FINANCE DEPARTMENT, TO REVISE THE SOLICITATION METHOD AND SPECIFICATIONS AND REISSUE THE PROCUREMENT AS A REQUEST FOR PROPOSALS WHEREAS,the Finance Department,through the Purchasing Department,issued Request for Qualifications No. P25-093 for auditing services for the City of Port Arthur, which was duly advertised in accordance with applicable procurement requirements attached hereto as Exhibit "A"; and WHEREAS, on October 23, 2025, an addendum with a revised Request for Qualification was posted and only one (1) response was received in response to the revised RFQ (Exhibit"A"); and WHEREAS, after review of the response received, the Finance Department has determined that it is in the City's best interest to obtain a broader and more competitive field of respondents in order to allow meaningful comparison among qualified certified public accounting firms for the annual audit of the City's financial statements; and WHEREAS,the Finance Department has further determined that a Request for Proposals (RFP), rather than a Request for Qualifications, is the more appropriate solicitation method for these services in order to evaluate firms based on both qualifications and pricing; and WHEREAS, the City Council has the authority to reject any and all responses when it determines that rejection is in the best interest of the City; and WHEREAS, the Purchasing Department has requested authorization to reject the existing solicitation,revise the specifications and procurement method, and rebid the services accordingly. P. R.NO. 24711 TNR 12/18/2025 NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1: The facts and opinions of the preamble are true and correct. Section 2: All responses received to Request for Qualifications No. P25-093 for auditing services for the City of Port Arthur are hereby rejected Section 3: The Purchasing Department, in coordination with the,Finance Department, is hereby authorized and directed to revise the solicitation specifications, change the procurement method to a Request for Proposals, and rebid the auditing services in accordance with applicable law and City procurement policies. Section 4: THAT a copy of the caption and Resolution be spread upon the Minutes of the City Council. READ,ADOPTED,AND APPROVED,this_day of January 2026,AD,at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor: Councilmembers: NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED FO' ADMINISTRATION: gv*- Ron Burton, City M .ger n a Boswel , Finance Director Clifton Williams, Purchasing Manager EXHIBIT A PF CHARLOTTE M.MOSES,MAYOR *. RONALD BURTON,CPM HAROLD L.DOUCET,SR., • — - - CITY MANAGER City ofrSmite MAYOR PRO TEM �'tr SHERRI BELLARD,TRMC COUNCIL MEMBERS: CITY SECRETARY WILLIE BAE LEWIS,JR. � r t h u/' TIFFANY L.HAMILTON EVERFIELD t ROXANN PAIS COTRONEO DONEANE BECKCOM Texas CITY ATTORNEY THOMAS KINLAW,III DONALD FRANK,SR. OCTOBER 22, 2025 REQUEST FOR QUALIFICATIONS (RFQ) AUDITING SERVICES FOR THE CITY OF PORT ARTHUR DEADLINE: Sealed Proposal submittal must be received and time stamped by 3:00 p.m., Central Standard Time, Wednesday, November 5, 2025. (The clock located in the City Secretary's office will be the official time.) All proposals received will be read aloud at 3:15 p.m. on Wednesday, November 5, 2025 in the City Council Chambers, City Hall, 5th Floor, Port Arthur, TX. You are invited to attend. MARK ENVELOPE: P25-093 DELIVERY ADDRESS: Please submit one (1) original and one (1) copy of your proposal to: CITY OF PORT ARTHUR CITY OF PORT ARTHUR CITY SECRETARY or CITY SECRETARY P.O. BOX 1089 444 4TH STREET, 4th Floor PORT ARTHUR, TEXAS 77641 PORT ARTHUR, TEXAS 77640 POINTS OF CONTACT: Questions concerning the Invitation to Proposal or Scope of Work should be directed in writing to: City of Port Arthur, TX Clifton Williams, Purchasing Manager P.O. Box 1089 Port Arthur, TX 77641 clifton.williams@portarthurtx.gov Purchasing Division/Finance Department I Purchasing Manager,Clifton Williams P.O.Box 1089 1 444 4th Street I Port Arthur,Texas 77641 1409.983.8160 I Fax 409.983.8291 Pr- The enclosed Request for Qualifications (RFQ) and accompanying General Instructions are for your convenience in submitting proposals for the enclosed referenced services for the City of Port Arthur. Proposals must be signed by a person having authority to bind the firm in a contract. Proposals shall be placed in a sealed envelope, with the Vendor's name and address in the upper left-hand corner of the envelope. ALL PROPOSALS MUST BE RECEIVED IN THE CITY SECRETARY'S OFFICE BEFORE OPENING DATE AND TIME. It is the sole responsibility of the firm to ensure that the sealed RFQ submittal arrives at the above location by the specified deadline regardless of delivery method chosen by the firm. Faxed or electronically transmitted RFQ submittals will not be accepted. egotiolf. Clifton Williams, CPPB Purchasing Manager REQUESTS FOR QUALIFICATIONS AUDITING SERVICES FOR THE CITY OF PORT ARTHUR, TX (To be Completed ONLY IF YOU DO NOT BID) FAILURE TO RESPOND TO BID SOLICITATIONS FOR TWO (2) BID PERIODS MAY RESULT IN REMOVAL FROM THE VENDOR'S LIST. However, if you are removed you will be reinstated upon request. In the event you desire not to submit a bid, we would appreciate your response regarding the reason(s). Your assistance in completing and returning this form in an envelope marked with the enclosed bid would be appreciated. NO BID is submitted: this time only not this commodity/service only Yes No Does your company provide this product or services? Were the specifications clear? Were the specifications too restrictive? Does the City pay its bills on time? Do you desire to remain on the bid list for this product or service? Does your present work load permit additional work? Comments/Other Suggestions: Company Name: Person Completing Form: Telephone: Mailing Address: Email: City, State, Zip Code: Date: City of Port Arthur Request for Qualifications Auditing Services for the City of Port Arthur, TX OBJECTIVE, The City of Port Arthur (City) is seeking a response to the Request for Qualifications (RFQ) from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2019 with the option of auditing its fmancial statements for each of the four (4) subsequent fiscal years. These audits are to be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for fmancial audits set forth in the U.S. General Accounting Office's (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act (as amended) and the provisions of U.S. Office of Management and Budget (OMB) Uniform Guidance and State of Texas Uniform Grant Management Standards. BACKGROUND 1. The City serves an area of 87.96 square miles with a population of 55,498. The City's fiscal year begins on October 1 and ends on September 30. 2. The City is organized into seventeen (17) departments and provides a full range of municipal services to its citizens including fire and police protection, water and sanitary sewer utilities, solid waste removal and disposal, the construction of streets, drainage and other infrastructure, recreational activities, library and other cultural activities. The accounting and fmancial reporting functions of the City are centralized. The City has no internal audit function. 3. The City has a total payroll of approximately$44 million covering 758 employees. 4. The City is defined, for financial reporting purposes, in conformity with the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, Section 2100. Using these criteria, component units are included in the City's financial statements. The management of the City identifies the following component units for inclusion in the City's financial statements. Port Arthur Section 4A Economic Development Corporation (EDC) — an entity legally separate from the City, governed by a nine-member board of directors appointed by the City Council. The EDC is funded by a one half cent additional sales tax dedicated to economic development activities. This component unit maintains a special revenue fund and debt service fund. The budget, fmancial reports, and bonds of the EDC must be approved by the City Council. Financial services are provided by the City and the EDC is to be audited as part of the audit of the City's fmancial statements. 5. During fiscal year 2017-2018, the City received financial assistance from the following: Major Federal Programs • U.S. Department of Homeland Security • Special Supplement Program for Women, Infants and Children(WIC) • Community Development Block Grants (CDBG) • Federal Transit Operating and Capital Assistance • HOME • Federal Emergency Management Agency • U.S. Department of Commerce American Reinvestment and Recovery Act • Federal Transit Operating and Capital Assistance • Community Development Block Grant • Homelessness Prevention and Rapid Re-Housing Program • Justice Assistance Grant • Energy Efficiency and Conservation Grant • COPS Hiring Recovery Program State Assistance • Medical Assistance Program • Children's Health Insurance Program • Community and Rural Health • CDC Preventive • Immunizations • Southeast Texas Auto Theft Task Force • S.T.E.P. • Preventive Health • Texas Department of Housing and Community Affairs • Texas Water Development Board • Texas Department of Rural Affairs 6. The City participates in the following pension plans: • Texas Municipal Retirement System • Port Arthur Firemen's Relief and Retirement Fund—Actuarial services provided by John Crider 7. The City has a Retiree Health Insurance Program and related OPEB Trust. 8. Additional information on the City and its finances can be found in the September 30, 2018 Comprehensive Annual Financial Report (CAFR) and the 2018-2019 Annual Operating Budget which are on filed on the City's website at www.portarthurtx.gov and the office of the Director of Finance. 9. Interested persons who wish to review prior year audit reports and working papers should contact Harold Hankins, Assistant Finance Director-Accounting,Auditing, and Financial Reporting, at 409-983-8106. Pr $COPE OF WORK 1. The City desires the auditor to express an opinion on the fair presentation of its general purpose financial statements in conformity with generally accepted accounting principles. The City also desires the auditor to express an opinion on the fair presentation of its combining and individual fund and account group financial statements and schedules in conformity with generally accepted accounting principles. 2. The auditor is not required to audit the introductory or statistical sections, or the supporting schedules contained in the CAFR. However, the auditor is to provide an "in relation to" opinion on the supporting schedules based on the auditing procedures applied during the audit of the general purpose fmancial statements and the combining and individual fund financial statements and schedules. 3. The auditor shall be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 4. The auditor shall issue a report on: a. Compliance and internal control over financial reporting based on an audit of the financial statements. b. Compliance and internal control over compliance applicable to each major federal program. 5. The auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report on compliance and internal controls. The reports on compliance and internal control shall include all instances of non-compliance. 6. The Schedule of Expenditures of Federal and State Awards with related auditor's reports, as well as the reports on compliance and internal controls are not to be included in the CAFR. The auditor is not required to audit the Schedule of Expenditures of Federal and State Awards. However, the auditor is to provide an "in-relation to" report on that schedule based on the auditing procedures applied during the audit of financial statements. The auditor will provide a Single Audit when required. 7. All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the City and any required Federal or State agency. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 8. CAFR preparation and editing shall be the responsibility of the auditor. Printing of the document shall be the responsibility of the City. 9. Firms are encouraged to consider subcontracting portions of the engagement to small audit firms or firms owned and controlled by socially and economically disadvantaged individuals. Names of proposed subcontracting firm(s) must be clearly identified in the proposal. AUDITING STANDARDS TO BE FOLLOWED To meet the requirements of this request for qualifications, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, and if necessary, the standards for financial audits set forth in the U.S. General Accounting Office's Government Auditing Standards (1994), the provisions of the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996 and the provisions of U.S. Office of Management and Budget (OMB) Uniform Guidance,Audits of State, Local Governments and Non-Profit. REPORTS TO BE ISSUED Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following reports as required by applicable auditing standards: • A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. • A report on the internal control structure based on the auditor's understanding of the control structure and assessment of control risk. • A report on compliance with applicable laws and regulations. • An"in-relation to"report on the schedule of federal fmancial assistance. • A report on the internal control structure used in administering federal financial assistance programs. • A report on compliance with laws and regulations related to major and non-major federal financial assistance programs. 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 City of Port Arthur Council Members, the City Manager and the Finance Director. Auditors shall inform the Council of the following: 1. The auditor's responsibility under generally accepted auditing standards 2. Significant accounting policies 3. Management judgments and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit. SCHEDULE—FY 2022 The Director of Finance has primary responsibility for audit coordination, or his/her designee, and the successful proposer shall meet and agree, in writing, on the time frame for completing the audit services described in the Scope of Work. SPECIAL CONSIDERATIONS 1. The City may send its comprehensive annual financial report to the Government Finance Officers Association of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City to meet the requirements of that program. 2. If necessary, the schedule of federal fmancial assistance and related auditor's report, as well as the reports on the internal control structure and compliance are not to be included in the comprehensive annual financial report,but are to be issued separately. 3. The City may require the auditor's assistance to comply with new reporting requirements as mandated by GASB. Page 8 of 24 The City of Port Arthur requires comprehensive responses to every section within this RFQ. Conciseness and clarity of content are emphasized and encouraged. Vague and general proposals will be considered non-responsive and will result in disqualification. To facilitate the review of the responses, Firms shall follow the described proposal format. The intent of the proposal format requirements is to expedite review and evaluation. It is not the intent to constrain Vendors with regard to content, but to assure that the specific requirements set forth in this RFQ are addressed in a uniform manner amenable to review and evaluation. Failure to arrange the proposal as requested may result in the disqualification of the proposal. It is requested that proposals be limited to no more than 50 pages, excluding resumes. All pages of the proposal must be numbered and the proposal must contain an organized, paginated table of contents corresponding to the sections and pages of the proposal. A.) FIRM QUALIFICATIONS AND EXPERIENCE 1. State the size of the firm, size of the firm's governmental audit staff and the location of the office from which the work on this engagement is to be performed. 2. If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. 3. Please describe in detail the current and historical experience the proposer and its subcontractors have that would be relevant to this project. Provide descriptions and references for all engagements of comparable complexity and sensitivity to the requirements of the RFQ that have been conducted within the past five (5) years. References must contain the name, title, company name, address, phone and email of organizations that may be contacted to verify qualifying experience. Please indicate whether the organization is included for the purpose of verifying the proposer's qualifying experience or its subcontractor. 4. Submit a copy of your most recent external quality control review report, with a statement whether that quality control review included a review of specific government engagements. Also provide results of any federal or state desk reviews or field reviews of audits during the past three (3) years. In addition, provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years. B.) PERSONNEL QUALIFICATIONS 1. Please identify all key personnel who are to be part of the proposed team. Identify the principal supervisory and management staff, including partners, managers, other supervisors and specialists, who would be assigned to this project. Information should be presented in sufficient detail as to provide the City an indication that the personnel involved can perform the work specified in this RFQ. The City reserves the right to approve or reject each member of the team and to request substitutions. For each person, please provide the following: a. Full name; b. Employment history; c. Education and professional licensing of each person as it relates to this project; d. Specific description of what role the individual will have in this project; and e. Any additional helpful information to indicate the individual's ability to aid the proposer in successfully performing the work involved in this RFQ. Page 9 of 24 2. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Indicate how the quality of staff over the term of the agreement will be assured. 3. Identify any existing or potential conflicts of interest relative to the performance of the requirements of this RFP. Examples would include, but are not limited to, existing business or personal relationship between the proposer, its principal, or any affiliate or subcontractor, with the City, EDC or any other entity or person involved in any way in the project that is the subject of this RFP. *NOTE —Consultants and firm specialists mentioned in response to this request for proposal can only be changed with the express prior written permission of the City, which retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. C.) PROJECT APPROACH 1. Provide a detailed work plan that includes an explanation of the audit methodology to be followed. In development of the work plan, reference should be made to such sources of information as the City's budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. 2. Provide the following information on audit approach: a. Proposed segmentation of the engagement; b. Level of staff and number of hours to be assigned to each proposed segment of the engagement; c. Sample size and the extent to which statistical sampling is to be used in the engagement; d. Type and extent of analytical procedures to be used in the engagement; e. Approach to be taken to gain and document an understanding of the City's internal control structure; f. Approach to be taken in determining laws and regulations that will be subject to audit test work; g. Approach to be taken in drawing audit samples for purposes of tests of compliance. 3. Identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City. 4. Include sample formats for required reports. D.) QUALITY OF RESPONSE Completeness of the response to this RFQ including submission of all checklist documents. Page 10 of 24 EVALUATION AND SELECTION PROCESS The submitted proposals will be reviewed and ranked by a selection committee. Members of the selection committee will not be revealed. The City reserves the right to select a firm directly from the RFQ submittals or to short list several firms to prepare a presentation for the selection committee and select a firm from the presenting firms. The City also reserves the right to: • Make the selection based on its sole discretion; • Reject any and all proposals; • Issue subsequent Requests for Proposals; • Postpone opening proposals for its own convenience; • Remedy errors in the Request for Proposals process; • Approve or disapprove the use of particular sub-consultants; • Negotiate with any, all or none of the Proposers; g p • Waive informalities and irregularities in the Proposals; and/or • Enter into an agreement with another Proposer in the event the originally selected Proposer defaults or fails to execute an agreement with the City The City's process is as follows: Evaluation ratings will be on a 100 point scale and shall be based on the following criteria: EVALUATION AND SELECTION PROCESS Evaluation ratings will be on a 100 point scale and shall be based on the following criteria: 1. Firm Qualifications and Experience (Maximum Points 45) a. Size of the firm and size of firms governmental audit staff. 10 b. Firm's Current and historical experience and performance on comparable audits of Texas Cities 25 c. References 10 2. Personnel Qualifications (Maximum Points 25) a. The number of key personnel assigned to the team, including supervisory and management staff. 10 b. The experience of the firm's professional personnel to be assigned to the team. 10 c. The governmental audit experience of staff assigned to the team. 5 3. Project Approach(Maximum Points 25) a. Adequacy of work plan details. 5 b. Adequacy of proposed staffing plan for various segments of the engagement. 5 c. Adequacy of sampling techniques and analytical procedures. 5 d. Adherence to timeline in the event of potential audit problems. 10 4. Quality of Response(Maximum Points 5) a. Completeness of response and presentation The City reserves the right to use all pertinent information (also learned from sources other than disclosed in the RFQ process) that might affect the City's judgment as to the appropriateness of an award to the best evaluated proposer. This information may be appended to the proposal evaluation process results. Page 11 of 24 GENERAL INFORMATION: Interested auditing firms should submit Request for Qualifications with the following information: • Firm name, address, phone number, email and company website address • Type of organization(LLC, etc.) • Names of Principals • Personnel to be assigned the project • Identified sub-consultants • Experience and background of personnel and sub-consultants • Five references from previous projects completed with contact information(names, titles, contact numbers) CONFLICT OF INTEREST: Provide a completed copy of the Conflict of Interest Questionnaire (Form CIQ). The Texas legislature recently enacted House Bill 914 which added Chapter 176 to the Texas Local Government Code. Chapter 176 mandates the public disclosure of certain information concerning persons doing business or seeking to do business with the City of Port Arthur, including affiliations and business and financial relationships such persons may have with City of Port Arthur officers. The form can be can be located at the Texas Ethics Commission website: https://www.ethics.state.tx.us/filinginfo/conflict forms.htm By doing business or seeking to do business with the City of Port Arthur including submitting a response to this RFP, you acknowledge that you have been notified of the requirements of Chapter 176 of the Texas Local Government Code and you are representing that you in compliance with them. Any information provided by the City of Port Arthur is for information purposes only. If you have concerns about whether Chapter 176 of the Texas Local Government Code applies to you or the manner in which you must comply,you should consult an attorney. ETHICS: Public employees must discharge their duties impartially so as to assure fair, competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City of Port Arthur's procurement organization. Any employee that makes purchases for the City is an agent of the City and is required to follow the City's Code of Ethics. MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE BIDDERS: A prospective bidder must affirmatively demonstrate bidder's responsibility. A prospective bidder must meet the following requirements: 1. Be able to comply with the required or proposed delivery schedule. 2. Have a satisfactory record of performance. 3. Have a satisfactory record of integrity and ethics. 4. Be otherwise qualified and eligible to receive an award. 5. Be engaged in a full time business and can assume liabilities for any performance or warranty service required. 6. The City Council shall not award a contract to a company that is in arrears in its obligations to the City. Page 12 of 24 7. No payments shall be made to any person of public monies under any contract by the City with such person until such person has paid all obligations and debts owed to the City, or has made satisfactory arrangements to pay the same. INVOICES: All invoices shall be mailed directly to the City of Port Arthur, Attn.: Finance, P.O. Box 1089, Port Arthur, Texas 77641. PAYMENT: Payment will be made upon receipt of the original invoice and the acceptance of the goods or services by the City of Port Arthur, in accordance with the State of Texas Prompt Payment Act, Chapter 2251 of Texas Government Code, as amended. The City's standard payment terms are net 30, i.e. payment is due 30 days from the date of the invoice. SALES TAX: The City of Port Arthur is exempt by law from payment of Texas Sales Tax and Federal Excise Tax; therefore the proposal shall not include Sales Tax. VENUE: This agreement will be governed and construed according to the laws of the State of Texas. This agreement is performable in Port Arthur, Texas, Jefferson County. COMPLIANCE WITH LAWS: The Contractor shall comply with all applicable laws, ordinances, rules, orders, regulations and codes of the federal, state and local governments relating to performance of work herein. INTEREST OF MEMBERS OF CITY: No member of the governing body of the City, and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract; and, the Contractor shall take appropriate steps to assure compliance. DELINQUENT PAYMENTS DUE CITY: The City of Port Arthur Code of Ordinances prohibits the City from granting any license, privilege or paying money to any-one owing delinquent taxes, paving assessments or any money to the City until such debts are paid or until satisfactory arrangements for payment has been made. Bidders must complete and sign the AFFIDAVIT included as part of this ITB. QUANTITIES: Quantities shown are estimated, based on projected use. It is specifically understood and agreed that these quantities are approximate and any additional quantities will be paid for at the quoted price. It is further understood that the contractor shall not have any claim against the City of Port Arthur for quantities less than the estimated amount. SHIPPING INFORMATION: All bids are to be F.O.B., City of Port Arthur, Port Arthur, TX 77640 INCORPORATION OF PROVISIONS REQUIRED BY LAW: Each provision and clause required by law to be inserted into the Contract shall be deemed to be enacted herein and the Contract shall be read and enforced as though each were included herein. If, through mistake or otherwise, any such provision is not inserted or is not correctly inserted the Contract shall be amended to make such insertion on application by either party. CONTRACTOR'S OBLIGATIONS: The Contractor shall and will, in good workmanlike manner,perform all work and furnish all supplies and materials, machinery, equipment, facilities and means, except as herein otherwise expressly specified, necessary or proper to perform and complete all the work required by this Contract, in accordance with the provisions of this Contract and said specifications. Page 13 of 24 Frf The apparent silence of these specifications as to any detail or to the apparent omission from it of a detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail. While the purpose of the specifications is to indicate minimum requirements in the way of capability, performance, construction, and other details, its use is not intended to deprive the City of Port Arthur the option of selecting goods which may be considered more suitable for the purpose involved. In the event of conflicts between the written bid proposal and information obtained verbally, the vendor is specifically advised that the written bid proposal will prevail in the determination of the successful bidder. Under the Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. TERMINATION FOR CAUSE: If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his obligations under this contract, or if the Contractor shall violate any of the covenants, agreements or stipulations of this contract, the City shall thereupon have the right to terminate this contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the contract by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined. TERMINATION FOR CONVENIENCE: The City may terminate this contract at any time giving at least thirty (30) days notice in writing to the Contractor. If the Contract is terminated by the City as provided herein, the Contractor will be paid for the service that it has performed up to the termination date. If this contract is terminated due to fault of the Contractor, the previous paragraph hereof relative to termination shall apply. RELEASES AND RECEIPTS: The City of Port Arthur before making payments may require the Contractor to furnish releases or receipts for any or all persons performing work and supplying material or service to the Contractor, or any sub-contractors for work under this contract, if this is deemed necessary to protect its interests. CARE OF WORK: The Contractor shall be responsible for all damages to person or property that occurs as a result of his fault or negligence in connection with the work performed until completion and final acceptance by the City. SUB-CONTRACTS: The Contractor shall not execute an agreement with any sub-contractor or permit any sub-contractor to perform any work included in this Contract until he has received from the City of Port Arthur written approval of such agreement. INSURANCE: All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by Owner. The Contractor shall, at his own expense, purchase, maintain and keep in force insurance that will protect against injury and/or damages which may arise out of or result from operations under this contract, whether the operations be by himself or by any subcontractor or by Page 14 of 24 anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable, of the following types and limits 1. Standard Worker's Compensation Insurance: 2. Commercial General Liability occurrence type insurance City of Port Arthur, its officers, agents, and employees must be named as an additional insured): a. Bodily injury $500,000 single limit per occurrence or$500,000 each person/$500,000 per occurrence for contracts of$100,000 or less; or Bodily injury $1,000,000 single limit per occurrence or$500,000 each person/$1,000,000 per occurrence for contracts in excess of$100,000; and, b. Property Damage $100,000 per occurrence regardless of contract amount; and, c. Minimum aggregate policy year limit of$1,000,000 for contracts of $100,000 or less; or,Minimum aggregate policy year limit of$2,000,000 for contracts in excess of$100,000. 3. Commercial Automobile Liability Insurance (Including owned, non-owned and hired vehicles coverage's). a. Minimum combined single limit of$500,000 per occurrence, for bodily injury and property damage. b. If individual limits are provided, minimum limits are $300,000 per person, $500,000 per occurrence for bodily injury and$100,000 per occurrence for property damage. Contractor shall cause Contractor's insurance company or insurance agent to fill in all information required (including names of insurance agency, contractor and insurance companies, and policy numbers, effective dates and expiration dates) and to date and sign and do all other things necessary to complete and make into valid certificates of insurance and pertaining to the above listed items, and before commencing any of the work and within the time otherwise specified, Contractor shall file completed certificates of insurance with the Owner. None of the provisions in said certificate of insurance should be altered or modified in any respect except as herein expressly authorized. Said CERTIFICATE OF INSURANCE Form should contain a provision that coverage afforded under the policies will not be altered, modified or canceled unless at least fifteen (15) days prior written notice has been given to the City of Port Arthur. Contractor shall also file with the City of Port Arthur valid CERTIFICATE OF INSURANCE on like form from or for all Subcontractors and showing the Subcontractor (s) as the Insured. Said completed CERTIFICATE OF INSURANCE Form (s) shall in any event be filed with the City of Port Arthur not more than ten(10) days after execution of this Contract. NOTICE TO PROCEED: Notice to Proceed shall be issued within ten (10) days of the execution of the Contract by OWNER. Should there be any reasons why Notice to Proceed cannot be issued within such period, the time may be extended by mutual agreement between OWNER and CONTRACTOR. Page 15 of 24 CELL PHONE OR PAGER: The Contractor must have a working cell phone or pager available Monday through Friday from 8:00 a.m. to 5:00 p.m. so that the City will be able to contact the contractor. Page 16 of 24 APPENDICES SUBMIT WITH RFQ A. Letter of Interest B. Non-Collusion Affidavit C. Affidavit D. Conflict of Interest Questionnaire E. House Bill 89 Verification F. SB 252 Chapter 2252 Certification Page 17 of 24 APPENDIX A LETTER OF INTEREST RFQ — Auditing Services for the City of Port Arthur, TX Deadline: November 5, 2025 The undersigned firm submits the following information (this RFQ submittal) in response to the Request for Qualifications (as amended by any Addenda), issued by the City of Port Arthur, TX (City) to supply Auditing Services for the City of Port Arthur, TX. Enclosed, and by this reference incorporated herein and made a part of this RFQ, are the following: ❖ Completed RFQ Letter of Interest Form ❖ Non-Collusion Affidavit ❖ Completed Affidavit ❖ Completed Conflict of Interest Form ❖ House Bill 89 Verification ❖ SB 252 Chapter 2252 Certification Firm understands that the City is not bound to select any firm for the final pre-qualified list and may reject any responses submitted. Firm also understands that all costs and expenses incurred by it in preparing this RFQ and participating in this process will be borne solely by the firm, and that the required materials to be submitted will become the property of the City and will not be returned. Firm agrees that the City will not be responsible for any errors, omissions, inaccuracies, or incomplete statements in this RFQ. Firm accepts all terms of the RFQ submittal process by signing this letter of interest and making the RFQ submittal. This RFQ shall be governed by and construed in all respects according to the laws of the State of Texas. Firm Name Date Authorized Signature Title Name (please print) Telephone Email Page 18 of 24 APPENDIX B CITY OF PORT ARTHUR, TEXAS NON-COLLUSION AFFIDAVIT CITY OF PORT ARTHUR § § STATE OF TEXAS § By the signature below, the signatory for the bidder certifies that neither he nor the firm, corporation, partnership or institution represented by the signatory or anyone acting for the firm bidding this project has violated the antitrust laws of this State, codified at Section 15.01, et seq., Texas Business and Commerce Code, or the Federal antitrust laws, nor communicated directly or indirectly the bid made to any competitor or any other person engaged in the same line of business, nor has the signatory or anyone acting for the firm, corporation or institution submitting a bid committed any other act of collusion related to the development and submission of this bid proposal. Signature: Printed Name: Title: Company: Date: SUBSCRIBED and sworn to before me by the above named on this the day of , 20 Notary Public in and for the State of Texas My commission expires: Page 19 of 24 APPENDIX C AFFIDAVIT All pages in Offeror's Responses containing statements, letters, etc., shall be signed by a duly authorized officer of the company whose signature is binding. The undersigned offers and agrees to one of the following: I hereby certify that I do not have outstanding debts with the City of Port Arthur. I further agree to pay succeeding debts as they become due. I hereby certify that I do have outstanding debts with the City of Port Arthur and agree to pay said debts prior to execution of this agreement. I further agree to pay succeeding debts as they become due. I hereby certify that I do have outstanding debts with the City of Port Arthur and agree to enter into an agreement for the payment of said debts. I further agree to pay succeeding debts as they become due. Firm Name Date Authorized Signature Title Name (please print) Telephone Email STATE: COUNTY: SUBSCRIBED AND SWORN to before me by the above named on this the day of , 20 Notary Public RETURN THIS AFFIDAVIT AS PART OF THE PROPOSAL Page 20 of 24 APPENDIX D CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. OFFICE USE ONLY This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who Date Received has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176,006(a). By law this questionnaire must be filed with the records administrator of the local governmental entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176,006, Local Government Code.An offense under this section is a misdemeanor. J Name of vendor who has a business relationship with local governmental entity. J FiCheck this box if you are filing an update to a previously filed questionnaire.(The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) J Name of local government officer about whom the information is being disclosed. Name of Officer ?.1 Describe each employment or other business relationship with the local government officer,or a family member of the officer,as described by Section 176.003(a)(2)(A). Also describe any family relationship with the local government officer. Complete subparts A and B for each employment or business relationship described. Attach additional pages to this Form CIQ as necessary. A. Is the local government officer or a family member of the officer receiving or likely to receive taxable income, other than investment income, from the vendor? Ti Yes No B. Is the vendor receiving or likely to receive taxable income,other than investment income.from or at the direction of the local government officer or a family member of the officer AND the taxable income is not received from the local governmental entity? Yes n No Describe each employment or business relationship that the vendor named in Section 1 maintains with a corporation or other business entity with respect to which the local government officer serves as an officer or director; or holds an ownership interest of one percent or more. 17 Check this box if the vendor has given the local government officer or afamily member of the officer one or more gifts as described in Section 176.003(a)(2)(B), excluding gifts described in Section 176.003(a-1). Signature of vendor doing business with the governmental entity Data Form provided by Texas Ethics Commission www.ethics.state.tx.us Revised 11130.'2015 CONFLICT OF INTEREST QUESTIONNAIRE For vendor doing business with local governmental entity Acomplete copy of Chapter 176 of the Local Government Code may be found at http://www.statutes.legis.state.tx.us/ Docs/LG/htm/LG.176.htm.For easy reference,below are some of the sections cited on this form. Local Government Code§176.001(1-a):"Business relationship"means a connection between two or more parties based on commercial activity of one of the parties. The term does not include a connection based on: (A) a transaction that is subject to rate or fee regulation by a federal,state,or local governmental entity or an agency of a federal,state,or local governmental entity; (B) a transaction conducted at a price and subject to terms available to the public;or (C) a purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by,and reporting to,that agency. Local Government Code§176.003(a)(2)(A)and(B): (a) A local government officer shall file a conflicts disclosure statement with respect to a vendor if: (2) the vendor: (A) has an employment or other business relationship with the local government officer or a family member of the officer that results in the officer or family member receiving taxable income, other than investment income, that exceeds $2,500 during the 12-month period preceding the date that the officer becomes aware that (i) a contract between the local governmental entity and vendor has been executed; or (ii) the local governmental entity is considering entering into a contract with the vendor; (B) has given to the local government officer or a family member of the officer one or more gifts that have an aggregate value of more than$100 in the 12-month period preceding the date the officer becomes aware that: (i) a contract between the local governmental entity and vendor has been executed;or (ii) the local governmental entity is considering entering into a contract with the vendor. Local Government Code§176.006(a)and(a-1) (a) Avendor shall file a completed conflict of interest questionnaire if the vendor has a business relationship with a local governmental entity and: (1) has an employment or other business relationship with a local government officer of that local governmental entity,or a family member of the officer,described by Section 176.003(a)(2)(A); (2) has given a local government officer of that local governmental entity,or a family member of the officer,one or more gifts with the aggregate value specified by Section 176.003(a)(2)(B),excluding any gift described by Section 176.003(a-1);or (3) has a family relationship with a local government officer of that local governmental entity. (a-1) The completed conflict of interest questionnaire must be filed with the appropriate records administrator not later than the seventh business day after the later of: (1) the date that the vendor: (A) begins discussions or negotiations to enter into a contract with the local governmental entity;or (B) submits to the local governmental entity an application,response to a request for proposals or bids, correspondence, or another writing related to a potential contract with the local governmental entity;or (2) the date the vendor becomes aware: (A) of an employment or other business relationship with a local government officer,or a family member of the officer,described by Subsection(a); (B) that the vendor has given one or more gifts described by Subsection(a);or (C) of a family relationship with a local government officer. Form provided by Texas Ethics Commission www.ethics.state.tx.us Revised 11/30/2015 Page 22 of 24 APPENDIX E House Bill 89 Verification (Person name), the undersigned representative (hereafter referred to as "Representative") of (company or business name, hereafter referred to as "Business Entity"), being an adult over the age of eighteen (18) years of age, after being duly sworn by the undersigned notary, do hereby depose and affirm the following: 1. That Representative is authorized to execute this verification on behalf of Business Entity; 2. That Business Entity does not boycott Israel and will not boycott Israel during the term of any contract that will be entered into between Business Entity and the City of Port Arthur; and 3. That Representative understands that the term "boycott Israel" is defined by Texas Government Code Section 2270.001 to mean refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. SIGNATURE OF REPRESENTATIVE SUBSCRIBED AND SWORN TO BEFORE ME, the undersigned authority, on this day of , 20 Notary Public Page 23 of 24 APPENDIX F SB 252 CHAPTER 2252 CERTIFICATION 1, , the undersigned n representative of (Company or Business Name) being an adult over the age of eighteen (18) years of age, pursuant to Texas Government Code, Chapter 2252, Section 2252.152 and Section 2252.153, certify that the company named above is not listed on the website of the Comptroller of the State of Texas concerning the listing of companies that are identified under Section 806.051, Section 807.051 or Section 2253.153. I further certify that should the above-named company enter into a contract that is on said listing of companies on the website of the Comptroller of the State of Texas which do business with Iran, Sudan or any Foreign Terrorist Organization, I will immediately notify the City of Port Arthur Purchasing Department. Name of Company Representative (Print) Signature of Company Representative Date Page 24 of 24 (in. — CITY OF PORT ARTHUR, TEXAS (ifort rthur''^ ADDENDUM NO. ONE (1) TFY4I5 OCTOBER 23, 2025 BID FOR: AUDITING SERVICES FOR THE CITY OF PORT ARTHUR BID: P25-093 The following clarifications, amendments, deletions, additions, revision and/or modifications are made a part of the contract documents and change the original documents only in the manner and to the extent hereinafter stated and shall be incorporated in the contract documents. Provisions of this addendum shall take precedence over requirements of the original contract documents and all BIDDERS ARE REQUESTED TO ACKNOWLEDGE SAID PROVISIONS IN THE SUBMISSION OF THEIR BID. Addendum as follows 1. Attached is the revised bid package,please disregard the previous bid package. If you have any questions,please contact the Purchasing Division at 409-983-8160. NOTE: ALL PAGES OF ADDENDA MUST BE SIGNED AND SUBMITTED WITH YOUR BID DOCUMENTS. CliY in Williams Purchasing Manager Signature of Proposer Date Company Vendor Name CHARLOTTE M.MOSES,MAYOR ."""41.t RONALD BURTON,CPM HAROLD L.DOUCET,SR., City of CITY MANAGER MAYOR PRO TEM - A *OW ihW SHERRI BELLARD,TRMC COUNCIL MEMBERS: CITY SECRETARY WILLIE BAE LEWIS,JR. u r t r t h u r TIFFANY L.HAMILTON EVERFIELD ROXANN PAIS COTRONEO DONEANE BECKCOM h xas CITY ATTORNEY THOMAS KINLAW,III DONALD FRANK,SR. OCTOBER 22, 2025 REVISED REQUEST FOR QUALIFICATIONS (RFQ) AUDITING SERVICES FOR THE CITY OF PORT ARTHUR DEADLINE: Sealed Proposal submittal must be received and time stamped by 3:00 p.m., Central Standard Time, Wednesday, November 5, 2025. (The clock located in the City Secretary's office will be the official time.) All proposals received will be read aloud at 3:15 p.m. on Wednesday, November 5, 2025 in the City Council Chambers, City Hall, 5tb Floor, Port Arthur, TX. You are invited to attend. MARK ENVELOPE:P25-093 DELIVERY ADDRESS: Please submit one (1) original and one (1) copy of your proposal to: CITY OF PORT ARTHUR CITY OF PORT ARTHUR CITY SECRETARY or CITY SECRETARY P.O. BOX 1089 444 4TH STREET, 4th Floor PORT ARTHUR, TEXAS 77641 PORT ARTHUR, TEXAS 77640 POINTS OF CONTACT: Questions concerning the Invitation to Proposal or Scope of Work should be directed in writing to: City of Port Arthur, TX Clifton Williams, Purchasing Manager P.O. Box 1089 Port Arthur, TX 77641 clifton.williams@portarthurtx.gov Purchasing Division/Finance Department I Purchasing Manager,Clifton Williams P.O.Box 10891444 4th Street I Port Arthur,Texas 776411 409.983.8160 !Fax 409.983.8291 The enclosed Request for Qualifications (RFQ) and accompanying General Instructions are for your convenience in submitting proposals for the enclosed referenced services for the City of Port Arthur. Proposals must be signed by a person having authority to bind the firm in a contract. Proposals shall be placed in a sealed envelope, with the Vendor's name and address in the upper left-hand corner of the envelope. ALL PROPOSALS MUST BE RECEIVED IN THE CITY SECRETARY'S OFFICE BEFORE OPENING DATE AND TIME. It is the sole responsibility of the firm to ensure that the sealed RFQ submittal arrives at the above location by the specified deadline regardless of delivery method chosen by the firm. Faxed or electronically transmitted RFQ submittals will not be accepted. egr&yr, Clifton Williams, CPPB Purchasing Manager REQUESTS FOR QUALIFICATIONS AUDITING SERVICES FOR THE CITY OF PORT ARTHUR, TX (To be Completed ONLY IF YOU DO NOT BID) FAILURE TO RESPOND TO BID SOLICITATIONS FOR TWO (2) BID PERIODS MAY RESULT IN REMOVAL FROM THE VENDOR'S LIST. However, if you are removed you will be reinstated upon request. In the event you desire not to submit a bid, we would appreciate your response regarding the reason(s). Your assistance in completing and returning this form in an envelope marked with the enclosed bid would be appreciated. NO BID is submitted: this time only not this commodity/service only Yes No Does your company provide this product or services? Were the specifications clear? Were the specifications too restrictive? Does the City pay its bills on time? Do you desire to remain on the bid list for this product or service? Does your present work load permit additional work? Comments/Other Suggestions: Company Name: Person Completing Form: Telephone: Mailing Address: Email: City, State, Zip Code: Date: City of Port Arthur Request for Qualifications Auditing Services for the City of Port Arthur, TX OBJECTIVE The City of Port Arthur (City) is seeking a response to the Request for Qualifications (RFQ) from qualified firms of certified public accountants to audit its financial statements for the fiscal year ending September 30, 2026 with the option of auditing its financial statements for each of the four (4) subsequent fiscal years. These audits are to be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, the standards for financial audits set forth in the U.S. General Accounting Office's (GAO) Government Auditing Standards, the provisions of the federal Single Audit Act (as amended) and the provisions of U.S. Office of Management and Budget (OMB) Uniform Guidance and State of Texas Uniform Grant Management Standards. BACKGROUND 1. The City serves an area of 87.96 square miles with a population of 55,498. The City's fiscal year begins on October 1 and ends on September 30. 2. The City is organized into seventeen (17) departments and provides a full range of municipal services to its citizens including fire and police protection, water and sanitary sewer utilities, solid waste removal and disposal, the construction of streets, drainage and other infrastructure, recreational activities, library and other cultural activities. The accounting and fmancial reporting functions of the City are centralized. The City has no internal audit function. 3. The City has a total payroll of approximately$44 million covering 758 employees. 4. The City is defined, for fmancial reporting purposes, in conformity with the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Reporting Standards, Section 2100. Using these criteria, component units are included in the City's fmancial statements. The management of the City identifies the following component units for inclusion in the City's financial statements. Port Arthur Section 4A Economic Development Corporation (EDC) — an entity legally separate from the City, governed by a nine-member board of directors appointed by the City Council. The EDC is funded by a one half cent additional sales tax dedicated to economic development activities. This component unit maintains a special revenue fund and debt service fund. The budget, financial reports, and bonds of the EDC must be approved by the City Council. Financial services are provided by the City and the EDC is to be audited as part of the audit of the City's financial statements. 5. During fiscal year 2024-2025, the City received financial assistance from the following: Major Federal Programs • U.S. Department of Homeland Security • Special Supplement Program for Women, Infants and Children(WIC) • Community Development Block Grants (CDBG) • Federal Transit Operating and Capital Assistance • HOME • Federal Emergency Management Agency • U.S. Department of Commerce American Reinvestment and Recovery Act • Federal Transit Operating and Capital Assistance • Community Development Block Grant • Homelessness Prevention and Rapid Re-Housing Program • Justice Assistance Grant • Energy Efficiency and Conservation Grant • COPS Hiring Recovery Program State Assistance • Medical Assistance Program • Children's Health Insurance Program • Community and Rural Health • CDC Preventive • Immunizations • Southeast Texas Auto Theft Task Force • S.T.E.P. • Preventive Health • Texas Department of Housing and Community Affairs • Texas Water Development Board • Texas Department of Rural Affairs 6. The City participates in the following pension plans: • Texas Municipal Retirement System • Port Arthur Firemen's Relief and Retirement Fund—Actuarial services provided by John Crider 7. The City has a Retiree Health Insurance Program and related OPEB Trust. 8. Additional information on the City and its finances can be found in the June 30, 2025 Annual Comprehensive Financial Report (ACFR) and the 2025-2026 Annual Operating Budget which are on filed on the City's website at www.portarthurtx.gov and the office of the Director of Finance. 9. Interested persons who wish to review prior year audit reports and working papers should contact Lynda Boswell, Director of Finance, at 409-983-8186 or the past audits on its website. SCOPE OF WORD 1. The City desires the auditor to express an opinion on the fair presentation of its general purpose financial statements in conformity with generally accepted accounting principles. The City also desires the auditor to express an opinion on the fair presentation of its combining and individual fund and account group financial statements and schedules in conformity with generally accepted accounting principles. 2. The auditor is not required to audit the introductory or statistical sections, or the supporting schedules contained in the ACFR. However, the auditor is to provide an "in relation to" opinion on the supporting schedules based on the auditing procedures applied during the audit of the general purpose financial statements and the combining and individual fund financial statements and schedules. 3. The auditor shall be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 4. The auditor shall issue a report on: a. Compliance and internal control over financial reporting based on an audit of the financial statements. b. Compliance and internal control over compliance applicable to each major federal program. 5. The auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report on compliance and internal controls. The reports on compliance and internal control shall include all instances of non-compliance. 6. The Schedule of Expenditures of Federal and State Awards with related auditor's reports, as well as the reports on compliance and internal controls are not to be included in the ACFR. The auditor is not required to audit the Schedule of Expenditures of Federal and State Awards. However, the auditor is to provide an "in-relation to" report on that schedule based on the auditing procedures applied during the audit of financial statements. The auditor will provide a Single Audit when required. 7. All working papers and reports must be retained, at the auditor's expense, for a minimum of three (3) years, unless the firm is notified in writing by the City of the need to extend the retention period. The auditor will be required to make working papers available, upon request, to the City and any required Federal or State agency. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. 8. ACFR preparation and editing shall be the responsibility of the auditor. Printing of the document shall be the responsibility of the City. 9. Firms are encouraged to consider subcontracting portions of the engagement to small audit firms or firms owned and controlled by socially and economically disadvantaged individuals. Names of proposed subcontracting firm(s) must be clearly identified in the proposal. AUDITING STANDARDS TO BE FOLLOWED To meet the requirements of this request for qualifications, the audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, and if necessary, the standards for financial audits set forth in the U.S. General Accounting Office's Government Auditing Standards (1994), the provisions of the Single Audit Act of 1984 and the Single Audit Act Amendments of 1996 and the provisions of U.S. Office of Management and Budget (OMB) Uniform Guidance,Audits of State, Local Governments and Non-Profit. REPORTS TO BE ISSUED Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following reports as required by applicable auditing standards: • A report on the fair presentation of the financial statements in conformity with generally accepted accounting principles. • A report on the internal control structure based on the auditor's understanding of the control structure and assessment of control risk. • A report on compliance with applicable laws and regulations. • An"in-relation to"report on the schedule of federal financial assistance. • A report on the internal control structure used in administering federal financial assistance programs. • A report on compliance with laws and regulations related to major and non-major federal financial assistance programs. 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 City of Port Arthur Council Members, the City Manager and the Finance Director. Auditors shall inform the Council of the following: 1. The auditor's responsibility under generally accepted auditing standards 2. Significant accounting policies 3. Management judgments and accounting estimates 4. Significant audit adjustments 5. Other information in documents containing audited financial statements 6. Disagreements with management 7. Management consultation with other accountants 8. Major issues discussed with management prior to retention 9. Difficulties encountered in performing the audit. SCHEDULE—FY 2026 The Director of Finance has primary responsibility for audit coordination, or his/her designee, and the successful proposer shall meet and agree, in writing, on the time frame for completing the audit services described in the Scope of Work. SPECIAL CONSIDERATIONS 1. The City may send its annual comprehensive fmancial report to the Government Finance Officers Association of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City to meet the requirements of that program. 2. If necessary, the schedule of federal financial assistance and related auditor's report, as well as the reports on the internal control structure and compliance are not to be included in the comprehensive annual financial report, but are to be issued separately. 3. The City may require the auditor's assistance to comply with new reporting requirements as mandated by GASB. Page 8 of 24 The City of Port Arthur requires comprehensive responses to every section within this RFQ. Conciseness and clarity of content are emphasized and encouraged. Vague and general proposals will be considered non-responsive and will result in disqualification. To facilitate the review of the responses, Firms shall follow the described proposal format. The intent of the proposal format requirements is to expedite review and evaluation. It is not the intent to constrain Vendors with regard to content, but to assure that the specific requirements set forth in this RFQ are addressed in a uniform manner amenable to review and evaluation. Failure to arrange the proposal as requested may result in the disqualification of the proposal. It is requested that proposals be limited to no more than 50 pages, excluding resumes. All pages of the proposal must be numbered and the proposal must contain an organized, paginated table of contents corresponding to the sections and pages of the proposal. A.) FIRM QUALIFICATIONS AND EXPERIENCE 1. State the size of the firm, size of the firm's governmental audit staff and the location of the office from which the work on this engagement is to be performed. 2. If the proposer is a joint venture or consortium, the qualifications of each firm comprising the joint venture or consortium should be separately identified and the firm that is to serve as the principal auditor should be noted, if applicable. 3. Please describe in detail the current and historical experience the proposer and its subcontractors have that would be relevant to this project. Provide descriptions and references for all engagements of comparable complexity and sensitivity to the requirements of the RFQ that have been conducted within the past five (5) years. References must contain the name, title, company name, address, phone and email of organizations that may be contacted to verify qualifying experience. Please indicate whether the organization is included for the purpose of verifying the proposer's qualifying experience or its subcontractor. 4. Submit a copy of your most recent external quality control review report, with a statement whether that quality control review included a review of specific government engagements. Also provide results of any federal or state desk reviews or field reviews of audits during the past three (3) years. In addition, provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years. B.) PERSONNEL QUALIFICATIONS 1. Please identify all key personnel who are to be part of the proposed team. Identify the principal supervisory and management staff, including partners, managers, other supervisors and specialists, who would be assigned to this project. Information should be presented in sufficient detail as to provide the City an indication that the personnel involved can perform the work specified in this RFQ. The City reserves the right to approve or reject each member of the team and to request substitutions. For each person, please provide the following: a. Full name; b. Employment history; c. Education and professional licensing of each person as it relates to this project; d. Specific description of what role the individual will have in this project; and e. Any additional helpful information to indicate the individual's ability to aid the proposer in successfully performing the work involved in this RFQ. Page 9 of 24 nr. 2. Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations relevant to the performance of this audit. Indicate how the quality of staff over the term of the agreement will be assured. 3. Identify any existing or potential conflicts of interest relative to the performance of the requirements of this RFP. Examples would include, but are not limited to, existing business or personal relationship between the proposer, its principal, or any affiliate or subcontractor, with the City, EDC or any other entity or person involved in any way in the project that is the subject of this RFP. *NOTE —Consultants and firm specialists mentioned in response to this request for proposal can only be changed with the express prior written permission of the City, which retains the right to approve or reject replacements. Other audit personnel may be changed at the discretion of the proposer provided that replacements have substantially the same or better qualifications or experience. C.) PROJECT APPROACH 1. Provide a detailed work plan that includes an explanation of the audit methodology to be followed. In development of the work plan, reference should be made to such sources of information as the City's budget and related materials, organizational charts, manuals and programs, and financial and other management information systems. 2. Provide the following information on audit approach: a. Proposed segmentation of the engagement; b. Level of staff and number of hours to be assigned to each proposed segment of the engagement; c. Sample size and the extent to which statistical sampling is to be used in the engagement; d. Type and extent of analytical procedures to be used in the engagement; e. Approach to be taken to gain and document an understanding of the City's internal control structure; f. Approach to be taken in determining laws and regulations that will be subject to audit test work; g. Approach to be taken in drawing audit samples for purposes of tests of compliance. 3. Identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City. 4. Include sample formats for required reports. D.) QUALITY OF RESPONSE Completeness of the response to this RFQ including submission of all checklist documents. Page 10 of 24 EVALUATION AND SELECTION PROCESS The submitted proposals will be reviewed and ranked by a selection committee. Members of the selection committee will not be revealed. The City reserves the right to select a firm directly from the RFQ submittals or to short list several firms to prepare a presentation for the selection committee and select a firm from the presenting firms. The City also reserves the right to: • Make the selection based on its sole discretion; • Reject any and all proposals; • Issue subsequent Requests for Proposals; • Postpone opening proposals for its own convenience; • Remedy errors in the Request for Proposals process; • Approve or disapprove the use of particular sub-consultants; • Negotiate with any, all or none of the Proposers; • Waive informalities and irregularities in the Proposals; and/or • Enter into an agreement with another Proposer in the event the originally selected Proposer defaults or fails to execute an agreement with the City The City's process is as follows: Evaluation ratings will be on a 100 point scale and shall be based on the following criteria: EVALUATION AND SELECTION PROCESS Evaluation ratings will be on a 100 point scale and shall be based on the following criteria: 1. Firm Qualifications and Experience (Maximum Points 45) a. Size of the firm and size of firms governmental audit staff 10 b. Firm's Current and historical experience and performance on comparable audits of Texas Cities 25 c. References 10 2. Personnel Qualifications (Maximum Points 25) a. The number of key personnel assigned to the team, including supervisory and management staff. 10 b. The experience of the firm's professional personnel to be assigned to the team. 10 c. The governmental audit experience of staff assigned to the team. 5 3. Project Approach (Maximum Points 25) a. Adequacy of work plan details. 5 b. Adequacy of proposed staffing plan for various segments of the engagement. 5 c. Adequacy of sampling techniques and analytical procedures. 5 d. Adherence to timeline in the event of potential audit problems. 10 4. Quality of Response(Maximum Points 5) a. Completeness of response and presentation The City reserves the right to use all pertinent information (also learned from sources other than disclosed in the RFQ process) that might affect the City's judgment as to the appropriateness of an award to the best evaluated proposer. This information may be appended to the proposal evaluation process results. Page 11 of 24 GENERAL INFORMATION: Interested auditing firms should submit Request for Qualifications with the following information: • Firm name, address,phone number, email and company website address • Type of organization(LLC, etc.) • Names of Principals • Personnel to be assigned the project • Identified sub-consultants • Experience and background of personnel and sub-consultants • Five references from previous projects completed with contact information(names, titles, contact numbers) CONFLICT OF INTEREST: Provide a completed copy of the Conflict of Interest Questionnaire (Form CIQ). The Texas legislature recently enacted House Bill 914 which added Chapter 176 to the Texas Local Government Code. Chapter 176 mandates the public disclosure of certain information concerning persons doing business or seeking to do business with the City of Port Arthur, including affiliations and business and financial relationships such persons may have with City of Port Arthur officers. The form can be can be located at the Texas Ethics Commission website: https://www.ethics.state.tx.us/filinginfo/conflict forms.htm By doing business or seeking to do business with the City of Port Arthur including submitting a response to this RFP, you acknowledge that you have been notified of the requirements of Chapter 176 of the Texas Local Government Code and you are representing that you in compliance with them. Any information provided by the City of Port Arthur is for information purposes only. If you have concerns about whether Chapter 176 of the Texas Local Government Code applies to you or the manner in which you must comply, you should consult an attorney. ETHICS: Public employees must discharge their duties impartially so as to assure fair, competitive access to governmental procurement by responsible contractors. Moreover, they should conduct themselves in such a manner as to foster public confidence in the integrity of the City of Port Arthur's procurement organization. Any employee that makes purchases for the City is an agent of the City and is required to follow the City's Code of Ethics. MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE BIDDERS: A prospective bidder must affirmatively demonstrate bidder's responsibility. A prospective bidder must meet the following requirements: 1. Be able to comply with the required or proposed delivery schedule. 2. Have a satisfactory record of performance. 3. Have a satisfactory record of integrity and ethics. 4. Be otherwise qualified and eligible to receive an award. 5. Be engaged in a full time business and can assume liabilities for any performance or warranty service required. 6. The City Council shall not award a contract to a company that is in arrears in its obligations to the City. Page 12 of 24 7. No payments shall be made to any person of public monies under any contract by the City with such person until such person has paid all obligations and debts owed to the City, or has made satisfactory arrangements to pay the same. INVOICES: All invoices shall be mailed directly to the City of Port Arthur, Attn.: Finance, P.O. Box 1089, Port Arthur, Texas 77641. PAYMENT: Payment will be made upon receipt of the original invoice and the acceptance of the goods or services by the City of Port Arthur, in accordance with the State of Texas Prompt Payment Act, Chapter 2251 of Texas Government Code, as amended. The City's standard payment terms are net 30, i.e. payment is due 30 days from the date of the invoice with the correct contract number on the invoices. SALES TAX: The City of Port Arthur is exempt by law from payment of Texas Sales Tax and Federal Excise Tax; therefore the proposal shall not include Sales Tax. VENUE: This agreement will be governed and construed according to the laws of the State of Texas. This agreement is performable in Port Arthur, Texas, Jefferson County. COMPLIANCE WITH LAWS: The Contractor shall comply with all applicable laws, ordinances, rules, orders, regulations and codes of the federal, state and local governments relating to performance of work herein. INTEREST OF MEMBERS OF CITY: No member of the governing body of the City, and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the planning and carrying out of the program, shall have any personal financial interest, direct or indirect, in this Contract; and,the Contractor shall take appropriate steps to assure compliance. DELINQUENT PAYMENTS DUE CITY: The City of Port Arthur Code of Ordinances prohibits the City from granting any license, privilege or paying money to any-one owing delinquent taxes, paving assessments or any money to the City until such debts are paid or until satisfactory arrangements for payment has been made. Bidders must complete and sign the AFFIDAVIT included as part of this ITB. QUANTITIES: Quantities shown are estimated, based on projected use. It is specifically understood and agreed that these quantities are approximate and any additional quantities will be paid for at the quoted price. It is further understood that the contractor shall not have any claim against the City of Port Arthur for quantities less than the estimated amount. SHIPPING INFORMATION: All bids are to be F.O.B., City of Port Arthur, Port Arthur, TX 77640 INCORPORATION OF PROVISIONS REQUIRED BY LAW: Each provision and clause required by law to be inserted into the Contract shall be deemed to be enacted herein and the Contract shall be read and enforced as though each were included herein. If, through mistake or otherwise, any such provision is not inserted or is not correctly inserted the Contract shall be amended to make such insertion on application by either party. CONTRACTOR'S OBLIGATIONS: The Contractor shall and will, in good workmanlike manner,perform all work and furnish all supplies and materials, machinery, equipment, facilities and means, except as herein otherwise expressly specified, necessary or proper to perform and complete all the work required by this Contract, in accordance with the provisions of this Contract and said specifications. Page 13 of 24 The apparent silence of these specifications as to any detail or to the apparent omission from it of a detailed description concerning any point shall be regarded as meaning that only the best commercial practices are to prevail. While the purpose of the specifications is to indicate minimum requirements in the way of capability, performance, construction, and other details, its use is not intended to deprive the City of Port Arthur the option of selecting goods which may be considered more suitable for the purpose involved. In the event of conflicts between the written bid proposal and information obtained verbally, the vendor is specifically advised that the written bid proposal will prevail in the determination of the successful bidder. Under the Title VI of the Civil Rights Act of 1964, no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. TERMINATION FOR CAUSE: If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his obligations under this contract, or if the Contractor shall violate any of the covenants, agreements or stipulations of this contract, the City shall thereupon have the right to terminate this contract by giving written notice to the Contractor of such termination and specifying the effective date thereof, at least fifteen (15) days before the effective date of such termination. Notwithstanding the above, the Contractor shall not be relieved of liability to the City for damages sustained by the City by virtue of any breach of the contract by the Contractor, and the City may withhold any payments to the Contractor for the purpose of set-off until such time as the exact amount of damages due the City from the Contractor is determined. TERMINATION FOR CONVENIENCE: The City may terminate this contract at any time giving at least thirty (30) days notice in writing to the Contractor. If the Contract is terminated by the City as provided herein, the Contractor will be paid for the service that it has performed up to the termination date. If this contract is terminated due to fault of the Contractor, the previous paragraph hereof relative to termination shall apply. RELEASES AND RECEIPTS: The City of Port Arthur before making payments may require the Contractor to furnish releases or receipts for any or all persons performing work and supplying material or service to the Contractor, or any sub-contractors for work under this contract, if this is deemed necessary to protect its interests. CARE OF WORK: The Contractor shall be responsible for all damages to person or property that occurs as a result of his fault or negligence in connection with the work performed until completion and final acceptance by the City. SUB-CONTRACTS: The Contractor shall not execute an agreement with any sub-contractor or permit any sub-contractor to perform any work included in this Contract until he has received from the City of Port Arthur written approval of such agreement. INSURANCE: All insurance must be written by an insurer licensed to conduct business in the State of Texas, unless otherwise permitted by Owner. The Contractor shall, at his own expense, purchase, maintain and keep in force insurance that will protect against injury and/or damages which may arise out of or result from operations under this contract, whether the operations be by himself or by any subcontractor or by Page 14 of 24 anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable, of the following types and limits 1. Standard Worker's Compensation Insurance: 2. Commercial General Liability occurrence type insurance City of Port Arthur, its officers, agents, and employees must be named as an additional insured): a. Bodily injury$500,000 single limit per occurrence or$500,000 each person/$500,000 per occurrence for contracts of$100,000 or less; or Bodily injury $1,000,000 single limit per occurrence or$500,000 each person/$1,000,000 per occurrence for contracts in excess of$100,000; and, b. Property Damage $100,000 per occurrence regardless of contract amount; and, c. Minimum aggregate policy year limit of$1,000,000 for contracts of $100,000 or less; or, Minimum aggregate policy year limit of$2,000,000 for contracts in excess of$100,000. 3. Commercial Automobile Liability Insurance (Including owned, non-owned and hired vehicles coverage's). a. Minimum combined single limit of$500,000 per occurrence, for bodily injury and property damage. b. If individual limits are provided, minimum limits are $300,000 per person, $500,000 per occurrence for bodily injury and$100,000 per occurrence for property damage. Contractor shall cause Contractor's insurance company or insurance agent to fill in all information required (including names of insurance agency, contractor and insurance companies, and policy numbers, effective dates and expiration dates) and to date and sign and do all other things necessary to complete and make into valid certificates of insurance and pertaining to the above listed items, and before commencing any of the work and within the time otherwise specified, Contractor shall file completed certificates of insurance with the Owner. None of the provisions in said certificate of insurance should be altered or modified in any respect except as herein expressly authorized. Said CERTIFICATE OF INSURANCE Form should contain a provision that coverage afforded under the policies will not be altered, modified or canceled unless at least fifteen (15) days prior written notice has been given to the City of Port Arthur. Contractor shall also file with the City of Port Arthur valid CERTIFICATE OF INSURANCE on like form from or for all Subcontractors and showing the Subcontractor (s) as the Insured. Said completed CERTIFICATE OF INSURANCE Form (s) shall in any event be filed with the City of Port Arthur not more than ten(10)days after execution of this Contract. NOTICE TO PROCEED: Notice to Proceed shall be issued within ten (10) days of the execution of the Contract by OWNER. Should there be any reasons why Notice to Proceed cannot be issued within such period, the time may be extended by mutual agreement between OWNER and CONTRACTOR. Page 15 of 24 CELL PHONE OR PAGER: The Contractor must have a working cell phone or pager available Monday through Friday from 8:00 a.m. to 5:00 p.m. so that the City will be able to contact the contractor. Page 16 of 24 APPENDICES SUBMIT WITH RFQ A. Letter of Interest B. Non-Collusion Affidavit C. Affidavit D. Conflict of Interest Questionnaire E. House Bill 89 Verification F. SB 252 Chapter 2252 Certification Page 17 of 24 APPENDIX A LETTER OF INTEREST RFQ—Auditing Services for the City of Port Arthur, TX Deadline: November 5,2025 The undersigned firm submits the following information (this RFQ submittal) in response to the Request for Qualifications (as amended by any Addenda), issued by the City of Port Arthur, TX (City) to supply Auditing Services for the City of Port Arthur, TX. Enclosed, and by this reference incorporated herein and made a part of this RFQ, are the following: ❖ Completed RFQ Letter of Interest Form ❖ Non-Collusion Affidavit • Completed Affidavit ❖ Completed Conflict of Interest Form ❖ House Bill 89 Verification ❖ SB 252 Chapter 2252 Certification Firm understands that the City is not bound to select any firm for the final pre-qualified list and may reject any responses submitted. Firm also understands that all costs and expenses incurred by it in preparing this RFQ and participating in this process will be borne solely by the firm, and that the required materials to be submitted will become the property of the City and will not be returned. Firm agrees that the City will not be responsible for any errors, omissions, inaccuracies, or incomplete statements in this RFQ. Firm accepts all terms of the RFQ submittal process by signing this letter of interest and making the RFQ submittal. This RFQ shall be governed by and construed in all respects according to the laws of the State of Texas. Firm Name Date Authorized Signature Title Name (please print) Telephone Email 1 Page 18 of 24 APPENDIX B CITY OF PORT ARTHUR, TEXAS NON-COLLUSION AFFIDAVIT CITY OF PORT ARTHUR § STATE OF TEXAS § By the signature below, the signatory for the bidder certifies that neither he nor the firm, corporation, partnership or institution represented by the signatory or anyone acting for the firm bidding this project has violated the antitrust laws of this State, codified at Section 15.01, et seq., Texas Business and Commerce Code, or the Federal antitrust laws, nor communicated directly or indirectly the bid made to any competitor or any other person engaged in the same line of business, nor has the signatory or anyone acting for the firm, corporation or institution submitting a bid committed any other act of collusion related to the development and submission of this bid proposal. Signature: Printed Name: Title: Company: Date: SUBSCRIBED and sworn to before me by the above named on this the day of , 20 Notary Public in and for the State of Texas My commission expires: Page 19 of 24 APPENDIX C AFFIDAVIT All pages in Offeror's Responses containing statements, letters, etc., shall be signed by a duly authorized officer of the company whose signature is binding. The undersigned offers and agrees to one of the following: I hereby certify that I do not have outstanding debts with the City of Port Arthur. I further agree to pay succeeding debts as they become due. I hereby certify that I do have outstanding debts with the City of Port Arthur and agree to pay said debts prior to execution of this agreement. I further agree to pay succeeding debts as they become due. I hereby certify that I do have outstanding debts with the City of Port Arthur and agree to enter into an agreement for the payment of said debts. I further agree to pay succeeding debts as they become due. Firm Name Date Authorized Signature Title Name (please print) Telephone Email STATE: COUNTY: SUBSCRIBED AND SWORN to before me by the above named on this the day of , 20 Notary Public RETURN THIS AFFIDAVIT AS PART OF THE PROPOSAL Page 20 of 24 APPENDIX D CONFLICT OF INTEREST QUESTIONNAIRE FORM CIQ For vendor doing business with local governmental entity This questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. OFRCEUSEONLY This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who Date Received has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local governmental entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1). Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code.An offense under this section is a misdemeanor. J Name of vendor who has a business relationship with local governmental entity. J I I Check this box if you are filing an update to a previously filed questionnaire.(The law requires that you file an updated ' I completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) J Name of local government officer about whom the information is being disclosed. Name of Officer Describe each employment or other business relationship with the local government officer,or a family member of the officer,as described by Section 176.003(a)(2)(A). Also describe any family relationship with the local government officer. Complete subparts A and B for each employment or business relationship described. Attach additional pages to this Form CIO as necessary. A. Is the local government officer or a family member of the officer receiving or likely to receive taxable income: other than investment income, from the vendor? Ti Yes No B. Is the vendor receiving or likely to receive taxable income,other than investment income:from or at the direction of the local government officer or a family member of the officer AND the taxable income is not received from the local governmental entity? Yes No Describe each employment or business relationship that the vendor named in Section 1 maintains with a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership interest of one percent or more. Check this box if the vendor has given the local government officer or afamily member of the officer one or more gifts as described in Section 176.003(a)(2)(B), excluding gifts described in Section 176.003(a-1). Signature of vendor doing business with the governmental entity Date Form provided by Texas Ethics Commission www.ethics.state.tx.us Revised 11,30./2015 CONFLICT OF INTEREST QUESTIONNAIRE For vendor doing business with local governmental entity Acomplete copy of Chapter 176 of the Local Government Code may be found at http://www.statutes.legis.state.tx.usi Docs/LG/htm/LG.176.htm.For easy reference,below are some of the sections cited on this form. Local Government Code§176.001(1-a):"Business relationship"means a connection between two or more parties based on commercial activity of one of the parties. The term does not include a connection based on: (A) a transaction that is subject to rate or fee regulation by a federal,state,or local governmental entity or an agency of a federal,state,or local governmental entity; (B) a transaction conducted at a price and subject to terms available to the public;or (C) a purchase or lease of goods or services from a person that is chartered by a state or federal agency and that is subject to regular examination by,and reporting to,that agency. Local Government Code§176.003(a)(2)(A)and(B): (a) A local government officer shall file a conflicts disclosure statement with respect to a vendor if: (2) the vendor: (A) has an employment or other business relationship with the local government officer or a family member of the officer that results in the officer or family member receiving taxable income, other than investment income, that exceeds$2,500 during the 12-month period preceding the date that the officer becomes aware that (i) a contract between the local governmental entity and vendor has been executed; or (ii) the local governmental entity is considering entering into a contract with the vendor; (B) has given to the local government officer or a family member of the officer one or more gifts that have an aggregate value of more than$100 in the 12-month period preceding the date the officer becomes aware that: (i) a contract between the local governmental entity and vendor has been executed;or (ii) the local governmental entity is considering entering into a contract with the vendor. Local Government Code§176.006(a)and(a-1) (a) Avendor shall file a completed conflict of interest questionnaire if the vendor has a business relationship with a local governmental entity and: (1) has an employment or other business relationship with a local government officer of that local governmental entity,or a family member of the officer,described by Section 176.003(a)(2)(A); (2) has given a local government officer of that local governmental entity,or a family member of the officer,one or more gifts with the aggregate value specified by Section 176.003(a)(2)(B),excluding any gift described by Section 176.003(a-1);or (3) has a family relationship with a local government officer of that local governmental entity. (a-1) The completed conflict of interest questionnaire must be filed with the appropriate records administrator not later than the seventh business day after the later of: (1) the date that the vendor: (A) begins discussions or negotiations to enter into a contract with the local governmental entity;or (B) submits to the local governmental entity an application,response to a request for proposals or bids, correspondence, or another writing related to a potential contract with the local governmental entity;or (2) the date the vendor becomes aware: (A) of an employment or other business relationship with a local government officer,or a family member of the officer,described by Subsection(a); (B) that the vendor has given one or more gifts described by Subsection(a);or (C) of a family relationship with a local government officer. Form provided by Texas Ethics Commission www.ethics.state.tx.us Revised 11/30/2015 Page 22 of 24 APPENDIX E House Bill 89 Verification I, (Person name), the undersigned representative (hereafter referred to as "Representative") of _ (company or business name, hereafter referred to as "Business Entity"), being an adult over the age of eighteen (18) years of age, after being duly sworn by the undersigned notary, do hereby depose and affirm the following: 1. That Representative is authorized to execute this verification on behalf of Business Entity; 2. That Business Entity does not boycott Israel and will not boycott Israel during the term of any contract that will be entered into between Business Entity and the City of Port Arthur; and 3. That Representative understands that the term "boycott Israel" is defined by Texas Government Code Section 2270.001 to mean refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. SIGNATURE OF REPRESENTATIVE SUBSCRIBED AND SWORN TO BEFORE ME, the undersigned authority, on this day of , 20 Notary Public Page 23 of 24 APPENDIX F SB 252 CHAPTER 2252 CERTIFICATION I, , the undersigned n representative of (Company or Business Name) being an adult over the age of eighteen (18) years of age, pursuant to Texas Government Code, Chapter 2252, Section 2252.152 and Section 2252.153, certify that the company named above is not listed on the website of the Comptroller of the State of Texas concerning the listing of companies that are identified under Section 806.051, Section 807.051 or Section 2253.153. I further certify that should the above-named company enter into a contract that is on said listing of companies on the website of the Comptroller of the State of Texas which do business with Iran, Sudan or any Foreign Terrorist Organization, I will immediately notify the City of Port Arthur Purchasing Department. Name of Company Representative (Print) Signature of Company Representative Date Page 24 of 24