Agenda #: 5.4
Meeting Date: June 20, 2023
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: FIFTH AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH MV CHENG & ASSOCIATES, INC. FOR TEMPORARY
ACCOUNTING STAFFING SERVICES THROUGH JANUARY 31, 2024.
STRATEGIC
GOAL: Responsible Stewardship of Public Resources
RECOMMENDATION:
Approve, and authorize the City Manager to sign, the Fifth Amendment to the Consultant Services Agreement with M.V. Cheng & Associates, Inc.
FINANCIAL IMPACT:
The proposed Fifth Amendment would increase the total not-to-exceed compensation under the Agreement by $45,000 for FY 2023-24. Sufficient funds are available in the FY 2023/24 operating budget to cover the cost of these services.
BACKGROUND:
In addition to multiple external audits and ongoing financial reporting, there are many complex and routine tasks that must be completed by the Finance Department on a regular basis. The department is requesting on-going part-time support from contracted temporary accounting staff to maintain timely reporting and assistance to internal departments and external stakeholders through January 2024. The department is in the final phases of transferring knowledge and responsibilities from contracted staff to department staff, after which the agreement will be terminated.
The previous First Amendment to the Consulting Services Agreement (dated November 2, 2021) extended the not-to-exceed amount by $60,000 for a total of $105,000. The Second Amendment (dated March 1, 2022) increased the not-to-exceed amount by $80,000 for a total of $185,000 and amended the scope of services to include a temporary Accounting Manager to assist the department after various retirements and turnover. The Third Amendment (dated July 1, 2022) extended the term of the
agreement through June 30, 2023. The Fourth Amendment (dated December 20, 2022) increased the not-to-exceed amount by $36,000 for a total of amount of $221,000. The proposed Fifth Amendment extends the term of the agreement through January 31, 2024, includes a negotiated 5.0% hourly rate increase for contracted Accounting Manager services, and increases the not-to-exceed amount by $45,000 for a total of $266,000.
LEGAL REVIEW:
The City Attorney has reviewed and approved the amended agreement as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 5.4.a Fifth Amendment - MV Cheng & Associates, Incorporated