The URL can be used to link to this page

Home My WebLink AboutStaff Report 10573 CITY OF PALO ALTO OFFICE OF THE CITY CLERK August 19, 2019 The Honorable City Council Palo Alto, California Approval of Amendment Number 2 to Contract Number S19174828 for Professional Services Agreement With Management Partners for Auditor Services to add $50,000 for a Total Not-to-Exceed Amount of $135,000 for an Additional two-month Term Through November 14, 2019 Recommendation The Mayor recommends that Council approve an amendment to the professional services agreement with Management Partners, Inc., for auditor services to add $50,000 , up to $135,000, for an additional two-month term through November 14, 2019. Background Former City Auditor Harriet Richardson retired in February 2019, creating need for the City Council to appoint a qualified person or entity to perform interim audit services while the City Auditor position is vacant (CMR # 10182). Through this service agreement with Management Partners, the City Auditor’s Office has been provided services from a qualified expert to coordinate and review work performed as designated by City Council. During this time, the Council Appointed Officers (CAO) Committee continues to oversee an assessment of the auditing function which is expected to be completed by October 2019. The findings and recommendation to the full Council will follow. Discussion Under this agreement, Management Partners has provided qualified professional services since late March 2019. In accordance with the scope of services, the interim audit work completed has included review of numerous audit reports, review of audit work in progress, and coordination of audit work as needed to prepare audits reports presented at Policy and Services Committee. This work will continue through the term of agreement. The attached professional services agreement contract amendment provides for Management Partners to continue to perform audit services on an interim basis until Council determines further action. While the term date of this amendment is November 14, 2019, the City Cou ncil retains the right to suspend or terminate the services for any reason, after 10 days’ notice. Resource Impact Contract costs will continue to be funded through salary savings in the City Auditor’s Office budget as a result of the City Auditor vacancy; therefore, no additional appropriation of funds is Page 2 required. Contract costs are based on $165/hour rate plus any hours necessary to complete work outlined in scope of services and travel expenses as needed. Environmental Review No impact. Approval of this contract is exempt under the California Environmental Quality Act (CEQA) Guidelines. ATTACHMENTS: • Attachment A: Amendment 1 (PDF) Department Head: Beth Minor, City Clerk Page 3 1 Revision July 20, 2016 AMENDMENT NO. 1 TO CONTRACT NO. S19174828 BETWEEN THE CITY OF PALO ALTO AND MANAGEMENT PARTNERS, INC. This Amendment No. 1 to Contract No. S19174828 (“Contract”) is entered into August 5, 2019, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Management Partners, Inc. Incorporated, located at 2107 N. First Street, STE 470, San Jose, CA 95131 (“CONSULTANT”). R E C I T A L S A. The Contract was entered into between the parties for the provision of Consulting Service to conduct performance audits and reviews of CITY departments, programs and services on a temporary basis. B. The parties wish to amend the Contract to extend the term by two months through November 14, 2019, as authorized by section 2.30.280(a)(2) of the Palo Alto Municipal Code. C. The parties wish to amend the Contract to increase the agreed not to exceed compensation amount for Contract Services by Fifty Thousand Dollars ($50,000.00). NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION 1. Section 2 TERM of the Contract is hereby amended to read as follows: “The Term of this Agreement shall be from the date of its full execution through November 14, 2019, unless terminated earlier pursuant to Section 19 of this Agreement. ” SECTION 2. Section 4 NOT TO EXCEED COMPENSATION is hereby amended to read as follows: “The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Thirty-five Thousand Dollars ($135,000.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. The applicable rates and schedule of payment are set out at Exhibit “C-1”, entitled “HOURLY RATE SCHEDULE,” which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY.” DocuSign Envelope ID: 623F4FFE-8BA8-473C-B112-634BF9B0DAF2 2 Revision July 20, 2016 SECTION 3. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Amendment No. 1 to Contract No. S19174828 on the date first above written. CITY OF PALO ALTO City Manager APPROVED AS TO FORM: City Attorney MANAGEMENT PARTNERS, INC. Name: Jerry Newfarmer DocuSign Envelope ID: 623F4FFE-8BA8-473C-B112-634BF9B0DAF2 Certificate Of Completion Envelope Id: 623F4FFE8BA8473CB112634BF9B0DAF2 Status: Completed Subject: Please DocuSign: Amend #1 S19174828 - Management Partners - ready to be signed.pdf Source Envelope: Document Pages: 2 Signatures: 1 Envelope Originator: Certificate Pages: 2 Initials: 0 Terry Loo AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Terry.Loo@CityofPaloAlto.org IP Address: 12.220.157.20 Record Tracking Status: Original 8/8/2019 9:21:36 AM Holder: Terry Loo Terry.Loo@CityofPaloAlto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp jerry Newfarmer jnewfarmer@managementpartners.com President & CEO Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 75.61.103.249 Sent: 8/8/2019 9:24:06 AM Viewed: 8/8/2019 9:26:29 AM Signed: 8/8/2019 9:32:27 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Jan Perkin jperkins@managementpartners.com President & CEO Security Level: Email, Account Authentication (None) Sent: 8/8/2019 9:32:29 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Beth Minor Beth.Minor@CityofPaloAlto.org City Clerk City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 8/8/2019 9:32:30 AM Viewed: 8/8/2019 9:34:58 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Carbon Copy Events Status Timestamp Sandra Blanch sandra.blanch@cityofpaloalto.org Asst Director, HR/Risk Management City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 8/8/2019 9:32:31 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 8/8/2019 9:32:31 AM Certified Delivered Security Checked 8/8/2019 9:32:31 AM Signing Complete Security Checked 8/8/2019 9:32:31 AM Completed Security Checked 8/8/2019 9:32:31 AM Payment Events Status Timestamps