Amendment to Professional Services Agreement
Form approved by the City Attorney 8-8-14
FIRST AMENDMENT
TO PROFESSIONAL SERVICES AGREEMENT NUMBER F002912
WITH ALVAREZ & MARSAL PUBLIC SECTOR SERVICES, LLC
This First Amendment (“Amendment”) to Agreement number F002912 dated November 3, 2024 ("Original Agreement") is made as of this _____ day of __________, 2025, by and between the City of Santa Rosa, a municipal corporation ("City"), and Alvarez & Marsal Public Sector Services, LLC, a Delaware Limited Liability Company ("Consultant").
RECITALS
A. City and Consultant entered into the Original Agreement for Consultant to provide financial outlook and budgeting process review services.
B. Consultant timely completed the deliverables in the Scope of Work in the Original Agreement for the Compensation agreed to in the Original Agreement ($99,500) and provided City with a written assessment and recommendations for the City’s budgeting process.
C. City and Consultant now desire to amend the Original Agreement to include additional Scope of Work for implementing Consulant assessment recommendations.
AMENDMENT
NOW, THEREFORE, the parties agree to amend the Agreement as follows:
1. Section 1. Scope of Services
Exhibit A to the Agreement is supplemented by Exhibit A-1 to this Amendment.
2. Section 2. Compensation
Section 2(c) is amended to increase the co mpensation payable to Consultant under the Agreement by $290,000 to read as follows:
"Notwithstanding any other provision in this Agreement to the contrary, the total maximum compensation to be paid for the satisfactory accomplishment and completion of all tasks set forth above shall in no event exceed the sum of three hundred eighty-nine thousand five hundred ($389,500). The City’s Chief Financial Officer is authorized to pay all proper claims from Charge Number 050101-5320."
3. Section 12. Time of Performance
The last sentence of Section 12 is amended to read as follows:
"Consultant shall complete all the required services and tasks and complete and tender all deliverables to the reasonable satisfaction of City, not later than June 30, 2026."
Exhibit A
Amendment to Professional Services Agreement
Form approved by the City Attorney 8-8-14
All other terms of the Agreement shall remain in full force and effect.
Executed as of the day and year first above stated.
CONSULTANT:
Name of Firm:__________________________
TYPE OF BUSINESS ENTITY (check one):
_____ Individual/Sole Proprietor
_____ Partnership
_____ Corporation
__X__ Limited Liability Company
_____ Other (please specify: ___________)
Signatures of Authorized Persons:
By: _____________________________
Print Name:_______________________
Title: ____________________________
By: _____________________________
Print Name:_______________________
Title: ____________________________
City of Santa Rosa Business Tax Cert. No.
______________06534405________________
CITY OF SANTA ROSA
a Municipal Corporation
By:_________________________________
Print Name:__________________________
Director, __________ Department
Title:________________________________
APPROVED AS TO FORM:
____________________________
Office of the City Attorney
ATTEST:
____________________________
City Clerk
Attachment: Exhibit A-1 - Scope of Services
Exhibit A-1: Scope of Work
Scope of Work
A&M shall provide consulting services to the City, working at the direction of the City Manager to support improvements the overall budget process and approach (including the integration of program-based budgeting) and conducting benchmarking and organizational analysis to identify opportunities for efficiency and effectiveness improvements in Transportation and Public Works, Parks and Recreation, and Economic Development.
Budget Structure and Process Enhancement
Based on the recommendations of A&M’s preliminary assessment, the A&M team will support the City
in piloting the budget enhancement recommendations, focusing on establishing a program-based budget. A&M will support City finance staff to make the necessary changes to the budgeting process by piloting a program-based budget with the Department of Transportation and Public Works (“TPW”) which can serve as the basis for broader implementation. A&M anticipates support for this
task will likely include:
- Analyze budget data and partner with Department leadership and staff to restructure the Department’s budget with a programmatic focus
- Develop a revised budget request process which integrates programmatic strategy and requires budget justification related to City priorities - Assist the finance and technology teams to make appropriate adjustments to financial management systems (budgeting, reporting) in support of the change to program-based budgeting within TPW
- Develop training materials and support training and change management for leaders within TPW
- Document implementation plan, and lessons learned from pilot with TPW as a basis for broader City-wide implementation of program-based budgeting Deliverables
At the conclusion of this support, A&M will provide three deliverables:
1) Revised budget template and program-based budget for TPW 2) Procedures and supporting documentation for the enhanced budget process 3) Implementation plan for broader program-based budget (including lessons learned from pilot program)