2022-24 Eide Bailly, LLP (former Vavrinek, Trine, Day & Co) Amend 1 - Auditing ServicesMEMORANDUM
DATE:
TO:
FROM:
RE:
Please list the Contracting Party / Vendor Name, type of agreement to be executed, including any change orders or
amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
___ Approved by City Council on ___________________________________________
___ City Manager’s signing authority provided under the City’s Purchasing Police
[Resolution No. 2019-021] for budget expenditures of $50,000 or less.
___ Department Director’s or Manager’s signing authority provided under the City’s
Purchasing Policy [Resolution No. 2019-021] for budget expenditures of $15,000 and
$5,000, respectively, or less.
Procurement Method (one must apply):
___ Bid ___ RFP ___ RFQ ___ 3 written informal bids
___ Sole Source ___ Select Source ___ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
___ Agreement payment will be charged to Account No.: _____________________
___ Agreement term: Start Date ________________ End Date ________________
___ Amount of Agreement, Amendment, Change Order, etc.: $____________________
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount,
not individual Amendments or Change Orders!
___ Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: ______________________________ Date: _______________
___ Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
___ Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
NOTE: Review the “Form 700 Disclosure for Consultants” guidance to determine if a Form 700 is
required pursuant FPPC regulation 18701(2)
___ Business License No. __________________; Expires: __________________
___ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
MR - on file in LF; exp.Apr/May 2023 06/14/2022
- Consent 5
06/13/22
Jon McMillen, City Manager
Claudia Martinez, Finance Director
Eide Bailley (Formally known as Vavrinek, Trine & Day Co. – Amendment No. 1 for
Professional Services related to Financial Auditing
✔April 19, 2022
✔
✔101-1006-60106
✔May 3, 2022 May 2, 2024
✔137,808.00
✔
✔
✔in process
✔
AMENDMENT NO. 1
TO PROFESSIONAL SERVICES AGREEMENT
WITH EIDE BAILLY LLP
(FORMALLY KNOWN AS VAVRINEK, TRINE & DAY CO.)
This Amendment No. 1 (“Amendment No. 1”) to Professional Services
Agreement ("Agreement”) is made and entered into as of the 3RD day of May,
2022, ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a
California municipal corporation and Eide Bailly LLP (“Consultant”).
RECITALS
WHEREAS, on or about May 3, 2017, the City and Vavrinek, Trine & Day
Co. entered into an Agreement to provide services related to Financial
Auditing, for a total not to exceed amount of $319,000. The term of the
Agreement expires on May 2, 2022 (“Initial Term”); and
WHEREAS, the City was notified that effective July 22, 2019, the
Vavrinek, Trine & Day Co. joined the regional Certitied Public Accountant and
business advisory firm of Eide Bailly, LLP, and all rights and responsibilities
under the Agreement previously held by Vavrinek, Tribe & Day Co. have been
assumed by Consultant; and
WHEREAS, pursuant to Section 3.4 Term, the City and Consultant
mutually agree to extend the term of the Agreement for two-additional years,
from May 3, 2022, through May 2, 2024 (“Extended Term”); and
WHEREAS, Section 2.1 Contract Sum of the Agreement is amended by
an additional amount of $137,808 to be paid by City to Consultant for the
Financial Auditing services to be provided during the Extended Term, for a
total not to exceed amount of $456,808.
NOW THEREFORE, in consideration of the mutual covenant herein
contained, the parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and
promises hereinafter contained, and for good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:
1. Section 2.1 is amended to read as follows:
Section 2.1 Contract Sum. For the services rendered pursuant to this
Agreement, Consultant shall be compensated in accordance with Exhibit “B”
(the “Schedule of Compensation”) in a total not to exceed amount of Three
Hundred Nineteen Thousand Dollars ($319,000) during the Initial Term, and
in a total not to exceed amount of One Hundred Thirty-Seven Thousand and
Eight Hundred and Eight Dollars ($137,808) during the Extended Term, for a
total not to exceed combined amount of Four Hundred Fifty-Six Thousand and
Eight hundred and Eight Dollars ($456,808) (the “Contract Sum”), except as
provided in Section 1.6. The method of compensation set forth in the Schedule
of Compensation may include a lump sum payment upon completion, payment
in accordance with the percentage of completion of the Services, payment for
time and materials based upon Consultant's rate schedule, but not exceeding
the Contract Sum, or such other methods as may be specified in the Schedule
of Compensation. The Contract Sum shall include the attendance of Consultant
at all project meetings reasonably deemed necessary by City; Consultant shall
not be entitled to any additional compensation for attending said meetings.
Compensation may include reimbursement for actual and necessary
expenditures for reproduction costs, transportation expense, telephone
expense, and similar costs and expenses when and if specified in the Schedule
of Compensation. Regardless of the method of compensation set forth in the
Schedule of Compensation, Consultant’s overall compensation shall not
exceed the Contract Sum, except as provided in Section 1.6 of this Agreement.
2. Section 3.4 is amended to read as follows:
3.4 Term. Unless earlier terminated in accordance with Sections 8.8 or 8.9 of
this Agreement, the term of this agreement shall commence on May 3, 2017
and terminate on May 2, 2022 (“Initial Term”). This Agreement is being
extended for two additional years, upon mutual agreement by both parties,
from May 3, 2022 through May 2, 2024 (“Extended Term”).
In all other respects, the original Agreement shall remain in effect.
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services provided for
in Section 2.3 of this Agreement, the maximum total compensation to be paid
to Consultant under this Agreement is Four Hundred Fifty-Six Thousand and
Eight hundred and Eight Dollars ($456,808) (“Contract Sum”), comprised of
at total not to exceed amount of Three Hundred Nineteen Thousand Dollaer
($319,000) for the Initial Term, and One Hundred Thirty-Seven Thousand
and Eight Hundred and Eight Dollars ($137,808) for the Extended Term. The
Contract Sum shall be paid to Consultant in installment payments made on a
monthly basis and in the amount identified in the consultant’s schedule of
compensation attached hereto for the work tasks performed and properly
invoiced by Consultant in conformance with Section 2.2 of the Agreement.
City of La Quinta
CITY COUNCIL MEETING: April 19, 2022
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR
PROFESSIONAL SERVICES WITH EIDE BAILLY LLP FOR A TWO-YEAR TERM
EXTENSION AND RELATED COMPENSATION TO PROVIDE AUDITING
SERVICES
RECOMMENDATION
Approve Amendment No. 1 with Eide Bailly LLP for a two-year term extension
through May 2, 2024, in an amount not to exceed $137,808, to provide
auditing services; and authorize the City Manager to execute the Contract.
EXECUTIVE SUMMARY
x The City contracts professional auditing services which includes
preparation of the financial statements, single audit, and State
Controller’s report, and a review of the internal controls.
x On May 2, 2017, City Council awarded the auditing services contract to
Eide Bailly LLP (formerly know as Vavrinek, Trine & Day Co.). The initial
term was for five years and expires May 2, 2022.
x Amendment No. 1 (Amendment 1) (Attachment 1) proposes a two-year
term extension and an 8% increase in compensation.
FISCAL IMPACT
The annual cost will be $68,904 for two fiscal years, for a total contract
amount of $137,808. Annual auditing services will be budgeted in the Finance
department account 101-1006-60106, Auditing Services.
BACKGROUND/ANALYSIS
On May 2, 2017, City Council awarded the auditing services contract to Eide
Bailly LLP (formerly know as Vavrinek, Trine & Day Co.). The initial term was
for five years, expiring May 2, 2022, with an option to extend for two
additional years.
CONSENT CALENDAR ITEM NO.
51
Amendment No. 1 proposes a two-year term extension through May 2, 2024,
with an 8% increase in compensation, for a total not to exceed amount of
$137,808. The two-year extension for auditing services for the fiscal years
ending June 30, 2022 and June 30, 2023 will include audits/engagements of
the City Annual Comprehensive Financial Report, Single Audit, and GANN Limit
Agreed-Upon procedures, and State Controller’s report.
ALTERNATIVES
Staff does not recommend an alternative as an annual audit is required to be
performed by an audit firm by June of each year.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, &LW\0DQDJHU
Attachment: 1. Amendment No. 1
52