HomeMy WebLinkAboutR2025-169 20251013RESOLUTION NO. R2025-169
A Resolution of the City Council of the City of Pearland, Texas, authorizing a
three-year contract (one (1) year initial term; two (2) one-year renewals) with
65th North Group., for professional services (internal control and vulnerability
assessment), in the estimated annual amount of $149,800.00.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain contract for professional services, a copy of which is attached
hereto as Exhibit “A” and made a part hereof for all purposes, is hereby authorized and approved.
Section 2. That the City Manager or his designee is hereby authorized to execute and
the City Secretary to attest a contract for professional services.
PASSED, APPROVED and ADOPTED this the 13th day of October, A.D., 2025.
________________________________
J.KEVIN COLE
MAYOR
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
DARRIN M. COKER
CITY ATTORNEY
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Professional Services Contract 1 of 6 4/2019
CONTRACT FOR PROFESSIONAL SERVICES
THIS CONTRACT is entered into upon final execution by and between the City of Pearland
("CITY") and 65th North Group, LLC ("CONSULTANT").
The CITY engages the CONSULTANT to perform professional services for a project known and
described as the GovExcellence Program ("PROJECT").
SECTION I - SERVICES OF THE CONSULTANT
The CONSULTANT shall perform the following professional services to CITY standards and in
accordance with the degree of care and skill that a professional in Texas would exercise under the
same or similar circumstances:
A. The CONSULTANT shall perform professional services. See Exhibit A, attached,
for a detailed SCOPE OF WORK and PROJECT schedule.
B. The CONSULTANT acknowledges that the CITY (through its employee
handbook) considers the following to be misconduct that is grounds for termination
of a CITY employee: Any fraud, forgery, misappropriation of funds, receiving
payment for services not performed or for hours not worked, mishandling or
untruthful reporting of money transactions, destruction of assets, embezzlement,
accepting materials of value from vendors, or consultants, and/or collecting
reimbursement of expenses made for the benefit of the CITY. The CONSULTANT
agrees that it will not, directly or indirectly; encourage a CITY employee to engage
in such misconduct.
C. The CONSULTANT recognizes that all drawings, special provisions, field survey
notes, reports, estimates and any and all other documents or work product generated
by the CONSULTANT under the CONTRACT shall be delivered to the CITY upon
request, shall become subject to the Open Records Laws of this State.
D. The CONSULTANT shall procure and maintain for the duration of this Agreement,
insurance against claims for injuries to persons, damages to property, or any errors
and omissions relating to the performance of any work by the CONSULTANT, its
agents, employees or subcontractors under this Agreement, as follows:
(1) Workers’ Compensation as required by law.
(2) Professional Liability Insurance in an amount not less than $1,000,000 in
the aggregate.
(3) Comprehensive General Liability and Property Damage Insurance with
minimum limits of $1,000,000 for injury or death of any one person,
$1,000,000 for each occurrence, and $1,000,000 for each occurrence of
damage to or destruction of property.
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(4)Comprehensive Automobile and Truck Liability Insurance covering owned,
hired, and non-owned vehicles, with minimum limits of $1,000,000 for
injury or death of any one person, $1,000,000 for each occurrence, and
$1,000,000 for property damage.
The CONSULTANT shall include the CITY as an additional insured under the
policies, with the exception of the Professional Liability Insurance and Workers’
Compensation. Certificates of Insurance and endorsements shall be furnished to
the CITY before work commences. Each insurance policy shall be endorsed to
state that coverage shall not be suspended, voided, canceled, and/or reduced in
coverage or in limits (“Change in Coverage”) except with prior written consent of
the CITY and only after the CITY has been provided with written notice of such
Change in Coverage, such notice to be sent to the CITY either by hand delivery to
the City Manager or by certified mail, return receipt requested, and received by the
City no fewer than thirty (30) days prior to the effective date of such Change in
Coverage. Prior to commencing services under this CONTRACT, CONSULTANT
shall furnish CITY with Certificates of Insurance, or formal endorsements as
required by this CONTRACT, issued by CONSULTANT’S insurer(s), as evidence
that policies providing the required coverage, conditions, and limits required by this
CONTRACT are in full force and effect.
E.The CONSULTANT shall indemnify and hold the CITY, its officers, agents, and
employees, harmless from any claim, loss, damage, suit, and liability of every kind
for which CONSULTANT is legally liable, including all expenses of litigation,
court costs, and attorney's fees, for injury to or death of any person, for damage to
any property, or errors in design, any of which are caused by the negligent act or
omission of the CONSULTANT, his officers, employees, agents, or subcontractors
under this CONTRACT.
F.All parties intend that the CONSULTANT, in performing services pursuant to this
CONTRACT, shall act as an independent contractor and shall have control of its
own work and the manner in which it is performed. The CONSULTANT is not to
be considered an agent or employee of the CITY.
SECTION II - PERIOD OF SERVICE
This CONTRACT will be binding upon execution and end September 30, 2026, with an option
for two (2) one-year renewals.
SECTION III - CONSULTANT'S COMPENSATION
A.The total compensation for the services performed shall not exceed the total noted
in Section B.
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B. The CITY shall pay the CONSULTANT in installments based upon monthly
progress reports and detailed invoices submitted by the CONSULTANT based
upon the following:
1. Basic Services (Lump Sum) $149,800
2. Additional Services shall require independent and specific authorization
and shall be billed as (Lump Sum):
3. Reimbursable Expenses (Not to Exceed)
4. Total: $149,800
C. The CITY shall make payments to the CONSULTANT within thirty (30) days after
receipt and approval of a detailed invoice. Invoices shall be submitted as follows:
1. $74,900 (50%) upon contract execution;
2. $37,450 (25%) six months after contract execution; and
3. $37,450 (25%) at the end of Fiscal Year 2026.
SECTION IV - THE CITY'S RESPONSIBILITIES
A. The CITY shall designate a project manager during the term of this CONTRACT.
The project manager has the authority to administer this CONTRACT and shall
monitor compliance with all terms and conditions stated herein. All requests for
information from or a decision by the CITY on any aspect of the work shall be
directed to the project manager.
B. The CITY shall review submittals by the CONSULTANT and provide prompt
response to questions and rendering of decisions pertaining thereto, to minimize
delay in the progress of the CONSULTANT'S work. The CITY will keep the
CONSULTANT advised concerning the progress of the CITY'S review of the
work. The CONSULTANT agrees that the CITY'S inspection, review, acceptance
or approval of CONSULTANT'S work shall not relieve CONSULTANT'S
responsibility for errors or omissions of the CONSULTANT or its sub-
consultant(s) or in any way affect the CONSULTANT’S status as an independent
contractor of the CITY.
SECTION V - TERMINATION
A. The CITY, at its sole discretion, may terminate this CONTRACT for any reason --
with or without cause -- by delivering written notice to CONSULTANT personally
or by certified mail at 3100 W Ray, Suite #201, Chandler, AZ 85226. Immediately
after receiving such written notice, the CONSULTANT shall discontinue providing
the services under this CONTRACT.
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B. If this CONTRACT is terminated, CONSULTANT shall deliver to the CITY all
drawings, special provisions, field survey notes, reports, estimates and any and all
other documents or work product generated by the CONSULTANT under the
CONTRACT, entirely or partially completed, together with all unused materials
supplied by the CITY on or before the 15th day following termination of the
CONTRACT.
C. In the event of such termination, the CONSULTANT shall be paid for services
performed prior to receipt of the written notice of termination. The CITY shall
make final payment within sixty (60) days after the CONSULTANT has delivered
to the CITY a detailed invoice for services rendered and the documents or work
product generated by the CONSULTANT under the CONTRACT.
D. If the remuneration scheduled under this contract is based upon a fixed fee or
definitely ascertainable sum, the portion of such sum payable shall be proportionate
to the percentage of services completed by the CONSULTANT based upon the
scope of work.
E. In the event this CONTRACT is terminated, the CITY shall have the option of
completing the work, or entering into a CONTRACT with another party for the
completion of the work.
F. If the CITY terminates this CONTRACT for cause and/or if the CONSULTANT
breaches any provision of this CONTRACT, then the CITY shall have all rights
and remedies in law and/or equity against CONSULTANT. Venue for any action
or dispute arising out of or relating to this CONTRACT shall be in Brazoria County,
Texas. The laws of the State of Texas shall govern the terms of this CONTRACT.
The prevailing party in the action shall be entitled to recover its actual damages
with interest, attorney’s fees, costs and expenses incurred in connection with the
dispute and/or action. CONSULTANT and CITY desire an expeditious means to
resolve any disputes that may arise between under this CONTRACT. To
accomplish this, the parties agree to mediation as follows: If a dispute arises out of
or relates to this CONTRACT, or the breach thereof, and if the dispute cannot be
settled through negotiation, then the parties agree first to try in good faith, and
before pursuing any legal remedies, to settle the dispute by mediation of a third
party who will be selected by agreement of the parties.
SECTION VI – ENTIRE AGREEMENT
This CONTRACT represents the entire agreement between the CITY and the CONSULTANT and
supersedes all prior negotiations, representations, or contracts, either written or oral. This
CONTRACT may be amended only by written instrument signed by both parties.
SECTION VII – COVENANT AGAINST CONTINGENT FEES
The CONSULTANT affirms that he has not employed or retained any company or person, other
than a bona fide employee working for the CONSULTANT to solicit or secure this CONTRACT,
and that he has not paid or agreed to pay any company or person, other than a bona fide employee,
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any fee, commission, percentage brokerage fee, gift, or any other consideration, contingent upon
or resulting from the award or making of the CONTRACT. For breach or violation of this clause,
the CITY may terminate this CONTRACT without liability, and in its discretion, may deduct from
the CONTRACT price or consideration, or otherwise recover, the full amount of such fee,
commission, percentage brokerage fee, gift, or contingent fee that has been paid.
SECTION VIII- SUCCESSORS AND ASSIGNS
This CONTRACT shall not be assignable except upon the written consent of the parties hereto.
________________________________
CITY MANAGER/DIRECTOR
CITY OF PEARLAND, TEXAS DATE
________________________________
CONSULTANT DATE
September 30, 2025
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10/14/2025 | 4:42 PM CDT
CITY OF PEARLAND:
Attest: ___________________
Name: ___________________
Title: _____________________
Date: _____________________
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
City Secretary
10/14/2025 | 8:07 AM CDT
Frances Aguilar
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EXHIBIT A
PROPOSAL TO PROVIDE EXPERT INTERNAL CONTROL SERVICES
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
65th North Group
GovExcellence Program
City of Pearland, TX
65th North Group’s GovExcellence program provides comprehensive ongoing services,
as identified by numerous local governments, to meet their most essential consulting
needs. This approach relieves staff workload while providing independent expertise.
You receive all of these annual services for one affordable fee, designed to enable
leaders to showcase their commitment to being among the best in the nation in terms of
operational best practices and organizational integrity.
The program includes the following core services throughout the year, as needed
and on demand:
¨ Executive Recruitment (unlimited, director-level and higher)
¨ Policy Writing & Review (unlimited, as needed)
¨ Monthly P-Card & Fuel Analytics
¨ Presentations to Elected Officials
¨ Executive Leadership Support
Plus, you choose five (5) or more customizable services per year based on your
organization’s evolving needs.
¨ Organizational, Operational, Staffing & Efficiency Studies
¨ Classification & Compensation Studies
¨ Internal Control & Fraud Risk Vulnerability Studies
¨ Purchasing, Inventory & Fuel Use Verification Audits
¨ Strategic Planning
¨ Strategic Budgeting
¨ Audit Preparation Support
The City of Pearland will receive all of these services for a flat annual fee of
$149,800.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Unlimited Executive Recruitment
(Ongoing Core Service)
♦ Unlimited executive recruitments for department director-level positions
and above.
♦ Professionally developed, very high-quality marketing materials.
♦ Personalized outreach efforts.
♦ Advertising in appropriate business-professional publications.
♦ Candidate resume screening.
♦ Candidate interviews are conducted to identify high-quality applicants who
are an excellent fit for the organization.
♦ Short-list candidate presentation.
♦ Finalist background investigations completed:
o Past work history verification.
o Degree verification.
o Criminal history checks.
o Reference checks.
♦ Finalist packet delivered to the organization.
♦ Assistance with contract negotiation and/or onboarding.
** The only additional cost to the organization is direct pass-through fees for
background checks and advertising.
If you have a planned retirement, we are here to work proactively to fill the position
as soon as you need it filled. If something unexpected arises, we immediately work
to fill the position. These services are ongoing, as needed, throughout the year.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Monthly Purchasing Card and Fuel Use Management Data Analytics
(Ongoing Core Service)
♦ Analytics for all P-card purchases, monthly:
o Identify weekend transactions.
o Identify potential policy violations.
o Identify purchases without adequate documentation.
o Identify possible split transactions.
o Identify vendors with only one buyer.
o Identify purchase outliers.
o Identify purchases without proper approvals.
o More, and all reviewed by certified fraud examiners.
♦ Custom report:
o All analytics results.
o Dashboard summary of several purchasing metrics.
Reduce your risk of inappropriate purchases, policy violations, and more through
independent expert internal audits of fuel use, purchasing, and inventory
management. These services are ongoing every month. We will also write custom
purchasing policies for you.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Policy Writing
(Ongoing Core Service)
♦ Internal control-related policies:
o Any risk areas identified in the internal control and fraud
risk vulnerability study.
♦ Policies and procedures development:
o Review of policies and procedures in various departments.
o Policy updates and new policy development.
o Comprehensive coordination between the organization and our
team to ensure implementation effectiveness.
Relieve your staff of the workload demand required to review and write policies,
while ensuring independent expertise in developing your organization’s policies.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Presentations and Updates to Officials
(Ongoing Core Service)
♦ We present all draft reports to the appropriate officials:
o Reports are reviewed with officials and edits made, if needed.
o We strategize the implementation of recommendations.
o We deliver a final report.
♦ We will present study results to elected officials, if desired.
We ensure effective communication with your organization throughout each
process, making it easy for your employees at every step.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Executive Advisory Support
(Ongoing Core Service)
For the most senior officials in the organization, we offer our expertise and
experience by serving as a sounding board for issues that arise throughout the
year. We offer discussions on strategy, risks, and benefits of taking specific
actions, among other topics, all designed to provide exceptional leadership
value.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Classification and Compensation Studies
(Customizable Service)
♦ Establishment of scope and objectives.
♦ Development of an internal communications plan.
♦ Data collection:
o Current job descriptions.
o Organizational charts.
o Pay plans and salary schedules.
o Budget and staffing levels.
o Relevant collective bargaining agreements.
♦ Position description questionnaire distribution.
♦ Stakeholder interviews and job audits, as needed to compare job descriptions,
identify overlaps, and predict market alignment.
♦ Job classification analysis.
♦ Evaluation of internal equity.
o Ensuring consistency across departments and job families
o Reviewing career ladders and promotional opportunities.
♦ Update job descriptions.
♦ Compensation market study.
♦ Pay structure development.
o Develop a compensation philosophy.
o Design pay structures.
o Cost analysis and fiscal modeling.
♦ Final report and presentation.
These studies offer significant value to the organization and are readily available
when needed.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Organizational, Operational, Staffing, and Efficiency Studies
(Customizable Service)
♦ Assess organizational structure
o Evaluate alignment of divisions within the department, reporting
relationships, and service delivery goals.
o Identify redundancies, gaps, or inefficiencies
o Recommend streamlined organizational model(s) with clear roles
and accountability.
♦ Analyze Operational Workflows and Processes
o Map key operational processes and assess workflow efficiency, use
of technology, and areas of delay or bottlenecks.
o Evaluate cross-department coordination, internal controls, and
communication practices.
o Identify opportunities to modernize operations through automation,
AI, process redesign, or improved procedures.
♦ Evaluation of staffing levels and utilization
o Analyze current staffing levels, roles, and span of control by
function.
o Determine if current staffing levels align with workload, service
demands, compliance requirements, and organizational
goals.
o Recommendation of optimal staffing levels, including shared
services or potential realignments.
♦ Enhancement of Efficiency and Effectiveness
o Identify cost-savings opportunities and productivity improvements
without compromising service quality.
o Recommendation of performance metrics, benchmarks, or key
performance indicators (KPIs).
♦ Comprehensive final report with recommendations, a prioritized and
phased implementation plan, and a best management practices diagnostic
assessment.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Internal Control and Fraud Risk Vulnerability Studies
(Customizable Service)
Identify internal control and fraud risk vulnerabilities throughout the entire
organization (much more effective than an annual audit, which is not designed to
provide assurance on the organization’s internal controls).
Implement best practices and highlight a commitment to organizational integrity.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Purchasing, Inventory, and Fuel Use Verification Audits
(Customizable Service – four times annually)
♦ Independent verifications of purchases
o Sampling of purchases from across the organization with physical
verification that the item(s) or services received were used for
government purposes.
o Vendor outreach for any items not located to ensure there weren’t
any returns for which the organization was unaware.
♦ Independent verifications of inventory management
o Inventory records are sampled throughout the organization,
with verification through physical hand counts.
o Count discrepancies are investigated.
♦ Independent verifications of Fuel Use Management
o Comprehensive review and analysis of fuel use throughout the
organization, identifying risky fuel transactions.
o Policy and procedure recommendations.
Significantly reduce your organization’s inventory management, fuel use
management, and purchasing risks. This service provides significant preventive and
detection controls for asset misappropriation or misuse. It serves as an excellent
deterrent.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Strategic Planning
(Customizable Service)
♦ Our strategic planning services help individual departments:
o Define priorities
o Align resources
o Drive measurable results
♦ Develop a unified vision and shared goals across leadership and staff.
♦ Ensure long-term alignment of budgets, staffing, and service delivery.
♦ Identify key performance indicators (KPIs) to track progress.
♦ Foster stakeholder engagement and build internal and public confidence.
♦ Supports council and management decision-making.
In an era of limited resources and increasing public expectations, a strategic plan is
more than a document—it’s a blueprint for sustainable success and operational
excellence.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Strategic Budgeting
(Customizable Service)
♦ Long-term budget development analysis and assistance.
o From assisting your finance staff to full development if needed.
o Understand long-term implications of today’s financial environment.
o Effectively plan for the organization’s financial future.
♦ Report presentation to executive leadership.
This process helps you make informed decisions today, based on effective long-term
budgeting methodologies.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2
info@65thnorth.com (480) 386-5344 www.65thnorth.com
Audit Preparation
(Customizable Service)
♦ We review prior year audit findings:
o Help mitigate the risk of continued findings.
o Based on existing practices, understand possible future audit risks.
♦ We collaborate with your staff to ensure that your audit preparation is
completed on time, allowing your external auditors to perform their duties
effectively.
o Help ensure that your external auditors can complete their work on
time, so your audit report is finished within the state’s required
deadline.
o Failing to complete your annual external audit on time can result in
significant financial and reputational risks. We help you reduce that risk
by partnering with your team to prepare for audits.
Audits can be time-consuming. Findings must be corrected, and future possible
issues must be mitigated. There can be significant financial and public trust
consequences for not completing annual external audits on time. We are your
trusted partner in this arena.
Docusign Envelope ID: 13C27D12-C62F-4959-8065-FE2303A115F2