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HomeMy WebLinkAbout05 - CC-4 - Amendment No.2 to PSA with MV Cheng and - 11/19/2019ATTACHMENT 2 AMENDMENT NUMBER ONE TO PROFESSIONAL SERVICES AGREEMENT WITH MV CHENG & ASSOCIATES, INC. This Amendment Number One ("Amendment") is made and entered into this 4th day of June , 2019 ("Effective Date "), by and between the CITY OF COST A MESA, a municipal corporation ("City"), and MV CHENG & ASSOCIATES , INC., a California corporation ("Consultant"). WHEREAS, City and Consultant entered into an agreement on September 18 , 2018 for Consultant to provide accounting support services {the "Agreement"); and WHEREAS, City and Consultant desire to amend the Scope of Services to reflect that Consultant will provide temporary staff support services to the Finance Department , as set forth in Exhibit "A ," attached hereto and incorporated herein by this reference ; and WHEREAS , City desires to increase Consultant's maximum compensation accord ingly to One Hundred Forty-Nine Thousand Nine Hundred Ninety-Nine Dollars ($149 ,999.00). NOW , THEREFORE , for valuable consideration , the receipt and sufficiency of which is hereby acknowledged , the parties agree as follows : 1. Recital A of the Agreement shall be amended to reflect that Consultant will provide temporary staff support services to the Finance Department. 2 . Exhibit A to the Agreement shall be deleted in its entirety and replaced with Exhibit A to this Amendment. 3 . Section 2.1 of the Agreement shall be amended to reflect that Consultant's total compensation shall not exceed One Hundred Forty-Nine Thousand Nine Hundred Ninety-Nine Dollars ($149 ,999 .00). 4. All terms not defined herein shall have the same meaning and use as set forth in the Agreement. 5 . All other terms , conditions , and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect. [Signatures appear on following page .] 1 MV Cheng & Associates , Inc. Amendment One Attachment 3 IN WITNESS WHEREOF , the parties hereto have caused this Amendment to be executed by and through their respective authorized officers , a s of th e date first written above . CONSULTANT llD ~ -/ Dat e -'G,__,-('--'----7 -_I!--- Signature Fv tvt rs 1 r v. c f-{t/vf.5 1 f fl_ ks, o~NT t-L~o Name and Title ATTEST: Date : _(,_/1_7~/-'-+l 7 __ _ APPROVED AS TO INSURANCE : Ri ~ement Date : ft/u'/(vt APPROVED AS TO CONTENT : ),~ ProjectM~ Date : _6 A_r/_.,__.l4'------ j ' 2 MV Cheng & Associates , Inc . Amendment One DEPARTMENTAL APPROVAL : ldl ~ ~ irector ~ Date: _b ~-'a,. 6---#-'-/,~'j __ r I APPROVED AS TO PURCHASING : Date: _6+--~-'--#-6 /_11 __ 3 MV Cheng & Associates , Inc . Amendment One EXHIBIT A REVISED SCOPE OF SERVICES Consultant will provide temporary staff support services to the Finance Department. The following individuals will provide staff support services to the Finance Department at the following rates: • $45 per hour-Joan Chism-36 years of municipal experience as senior account clerk , account technician including payroll . Available 2 days per week. • $45 per hour-Debbie Rustman-38 years of municipal payroll experience as account clerk , senior account clerk , account technician . Available 2 days per week. • $85 per hour-Lisa Nixon-30 years of municipal experience including Interim Purchasing Manager , Senior Utility Buyer, Utility Buyer, Buyer 11 , Senior Clerk Typist. Consultant shall not provide services from any individuals not listed herein without City 's prior written consent. CITY COUNCIL AGENDA REPORT MEETING DATE: NOVEMBER 19, 2019 ITEM NUMBER: CC-4 SUBJECT: AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH MV CHENG & ASSOCIATES FOR TEMPORARY STAFF SUPPORT SERVICES IN THE FINANCE DEPARTMENT DATE: OCTOBER 31, 2019 FROM: FINANCE DEPARTMENT/ADMINISTRATION DIVISION PRESENTATION BY: KELLY A. TELFORD, CPA, FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: KELLY A. TELFORD, FINANCE DIRECTOR, AT (714) 754-5243 RECOMMENDATION: Staff recommends that the City Council: 1. Approve the proposed Amendment No. 2 (Attachment 1) to the Professional Services Agreement (PSA) with MV Cheng & Associates, Inc. to increase the PSA by $50,000, for a total not-to-exceed amount of $199,999 for temporary staff support services in the Finance Department; and 2. Authorize the City Manager and City Clerk to execute the proposed amendment and future amendments to the PSA within Council authorized limits. BACKGROUND: On September 21, 2018, the City entered into a PSA (Attachment 2) with MV Cheng & Associates, Inc. (MV Cheng & Associates) for temporary staffing services in the Finance Department for a total not-to-exceed amount of $49,999 for a five-year term, with the PSA expiring on September 20, 2023. The Department has used MV Cheng & Associates for temporary accounting, treasury, and purchasing related staff augmentation. On June 4, 2019, the City Council approved Amendment No. 2 (Attachment 3), increasing the compensation by $100,000, for a total revised not-to- exceed amount of $149,999, to primarily address the Purchasing Supervisor vacancy. At this time, additional temporary staffing services are needed to address backlogs in the Budget and Accounting Units. 2 ANALYSIS: On November 5, 2019, the City Council approved staffing changes in the Finance Department, recognizing the need for additional analytical and managerial staff. While these staffing changes will help to improve the overall department structure and address missing managerial and analytical support, until filled, the positions leave a critical resource deficiency. The five vacancies are across all units of the Financial Services Division, which is continuing to exacerbate an already limited staff department in all finance functions. These vacancies include a Finance Analyst (Treasury), Accountant, Budget Analyst, Purchasing Supervisor, and Budget and Purchasing Manager. While the Department is working closely with the Human Resources Division to recruit for the vacant positions, the Department is recommending assistance from MV Cheng & Associates to provide temporary staffing support services until the vacancies can be permanently filled. The City Manager’s Office is working with the Human Resources Division to identify funding/staffing resources to expedite the filling of vacant positions citywide. MV Cheng & Associates’ recommended consultants have an average of 25 years of experience in municipal finance. These highly experienced consultants are critical for a smooth transition and are already familiar with the local government finance industry, operations, and best practices. Staff anticipates that this temporary assistance will be required until the existing vacancies are filled. Consequently, staff is recommending approval of the proposed Amendment increasing the PSA by $50,000, for a total revised not-to-exceed amount of $199,999, to provide enough funding to address time-sensitive deadlines and backlogs in the Budget and Accounting Units. ALTERNATIVES CONSIDERED: The City Council could choose not to approve the proposed Amendment; however, staff does not recommend this alternative as it would pose greater challenges. FISCAL REVIEW: There is sufficient funding in the FY 2019-20 Finance Department Budget for this temporary assistance using the salary savings from the existing vacant positions. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved this agenda report and the proposed Amendment as to form. CITY COUNCIL GOALS & PRIORITIES: The proposed allocation of resources better positions the Department to accomplish the following City Council Goals & Priorities No. 3 – Keep the City Fiscally Sustainable. To address our long-term obligations as well as immediate needs and No. 6 – Good Government and Community Engagement. 3 CONCLUSION: Staff recommends that the City Council: 1. Approve the proposed Amendment No. 2 to the PSA with MV Cheng & Associates, Inc. to increase the PSA by $50,000, for a total not-to-exceed amount of $199,999 for temporary staff support services in the Finance Department; and 2. Authorize the City Manager and City Clerk to execute the proposed amendment and future amendments to the PSA within Council authorized limits. _________________________________ _________________________________ AMBER HASTON JENNIFER KING Management Analyst Assistant Finance Director _________________________________ _________________________________ KELLY A. TELFORD, CPA KIMBERLY HALL BARLOW Finance Director City Attorney Attachments: 1. Proposed Amendment No. 2 2. Professional Services Agreement 3. Amendment No. 1 4 1 MV Cheng & Associates, Inc. Amendment Two AMENDMENT NUMBER TWO TO PROFESSIONAL SERVICES AGREEMENT WITH MV CHENG & ASSOCIATES, INC. This Amendment Number Two (“Amendment”) is made and entered into this 19th day of November, 2019 (“Effective Date”), by and between the CITY OF COSTA MESA, a municipal corporation (“City”), and MV CHENG & ASSOCIATES, INC., a California corporation (“Consultant”). WHEREAS, City and Consultant entered into an agreement on September 21, 2018 for Consultant to provide accounting support services (the “Agreement”); and WHEREAS, on June 4, 2019, City and Consultant amended the Scope of Services to reflect that Consultant will provide temporary staff support services to the Finance Department and increased Consultant’s maximum compensation to One Hundred Forty-Nine Thousand Nine Hundred Ninety-Nine Dollars ($149,999.00); and WHEREAS, City requires additional staff support services; and WHEREAS, City desires to increase Consultant’s maximum compensation accordingly to One Hundred Ninety-Nine Thousand Nine Hundred Ninety-Nine Dollars ($199,999.00). NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Section 2.1 of the Agreement shall be amended to reflect that Consultant’s total compensation shall not exceed One Hundred Ninety-Nine Thousand Nine Hundred Ninety-Nine Dollars ($199,999.00). Consultant shall be paid in accordance with the fee schedule set forth in Exhibit A. 2. Exhibit A to the Agreement shall be deleted in its entirety and replaced with Exhibit A to this Amendment. 3. All terms not defined herein shall have the same meaning and use as set forth in the Agreement. 4. All other terms, conditions, and provisions of the Agreement not in conflict with this Amendment shall remain in full force and effect. [Signatures appear on following page.] Attachment 1 2 MV Cheng & Associates, Inc. Amendment Two IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by and through their respective authorized officers, as of the date first written above. CITY OF COSTA MESA ________________________________ Date: __________________________ City Manager CONSULTANT ________________________________ Date: __________________________ Signature ________________________________ Name and Title ATTEST: ________________________________ City Clerk APPROVED AS TO FORM: ________________________________ Date: __________________________ City Attorney APPROVED AS TO INSURANCE: ________________________________ Date: __________________________ Risk Management APPROVED AS TO CONTENT: ________________________________ Date: __________________________ Project Manager 3 MV Cheng & Associates, Inc. Amendment Two DEPARTMENTAL APPROVAL: ________________________________ Date: __________________________ Finance Director APPROVED AS TO PURCHASING: ________________________________ Date: __________________________ Finance Director EXHIBIT A REVISED SCOPE OF SERVICES Consultant will provide temporary staff support services to the Finance Department. If City requires Consultant’s services, City will provide notice to Consultant of the needed services. Upon such notification, Consultant shall propose for City’s approval an individual or individuals to provide the services requested by City. City retains sole discretion to approve or disapprove any proposed individual(s). Consultant shall not provide services from any individual(s) that City has not expressly approved to provide services. Consultant’s hourly rates shall be within the hourly rate ranges set forth below:  Manager: $85.00-$100.00 per hour  Supervisor: $75.00-$95.00 per hour  Senior Accountant: $70.00-$85.00 per hour  Accountant: $60.00-$70.00 per hour  Analyst: $50.00-$65.00 per hour  Clerical: $35.00-$50.00 per hour The actual hourly rate to be charged to City shall be based upon the individual’s experience and expertise in the position for which the individual will be providing services to the City.