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2026-27 GovInvest, Inc. Amendment 3 - Term ExtensionMEMORANDUM DATE: September 19, 2025 TO: Jon McMillen,City Manager FROM: Claudia Martinez, Finance Director/City Treasurer RE: Govinvest Amendment 3- Actuarial Consulting & Technology Services/Labor Costing & Financial Forecasting Please list the Contracting Party / Vendor Name, any change orders or amendments, and the type of services to be provided. Make sure to list any related Project No. and Project Name. 4Q!thCv CALIFORNIA ✓ ✓ Authority to execute this agreement is based upon: Approved by City Council on August 5, 2025, Consent 12 City Manager's signing authority provided under the City's Purchasing & Contracting Policy [Resolution No. 2023-008] for budget expenditures of $50,000 or less. City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for temporary employment positions. Department Director's or Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Bid Sole Source ✓ Procurement Method (one must apply): RFP n RFQ Select Source ❑ 3 written informal bids Cooperative Procurement Requesting department shall check and attach the items below as appropriate: Agreement payment will be charged to Account No.: 101-1006-60104 & 502-0000-60301 Agreement term: Start Date 01 /01 /2021 End Date 12/31/2027 Amount of Agreement, Amendment, Change Order, etc.: $ 100,000 Amend 3; 265,500 Total .z. 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: Olivia Rodriguez (myCOI); Exp 09/28/2025 Date: 09/19/2025 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) n Business License No. • Expires: Requisition for a Purchase Order has been prepared (Agreements over $5,000) 18495 Calle Tampico I is Quinta, California 922531760.7TT7000 I www.laquintaca.gov AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES WITH GOVINVEST INC. This Amendment No. 3 ("Amendment No. 3") to Agreement for Contract Services ("Agreement") is made and entered into as of the 1st day of July 2025, ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and Govinvest Inc. ("Contracting Party"). RECITALS WHEREAS, on or about December 1, 2020, the City and Govinvest Inc. entered into an Agreement to provide services related to actuarial consulting and technology services, for a total not to exceed amount of $106,000. The term of the Agreement expires on December 31, 2025 ("Initial Term"); and WHEREAS, Amendment 1, executed on or about June 29, 2022, amended Section 1.1 — Scope of Services and Section 2.1 — Contract Sum of the Agreement to respectively include the addition of the labor costing module and financial forecasting module for fiscal year 2022-23, and increased compensation by $17,000, for a total not to exceed amount of $123,000; and WHEREAS, Amendment 2, executed on or about January 1, 2024, amended Section 1.1 — Scope of Services and Section 2.1 — Contract Sum of the Agreement to respectively include extend the additional labor costing module and financial forecasting module services for fiscal years 2023-24 and 2024-25, and increased compensation by $42,500, for a total not to exceed amount of $165,500; and WHEREAS, pursuant to Section 3.4 — Term, the City and Contracting Party mutually agree to extend the term of the Agreement for two additional years, from January 1, 2026, through December 31, 2027; and WHEREAS, City and Contracting Party mutually agree to amend Section 2.1 — Contract Sum to increase compensation by $100,000 for the two-year extension of services, for a total not to exceed aggregate amount of $265,500. 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 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") for a total not to exceed combined amount of Two Hundred Sixty -Five Thousand and Five Hundred Dollars ($265,500) for the life of the agreement, including the Initial and any Extended Terms (the "Contract Sum"), except as provided in Section 1.7. 2. Section 3.4 Term is amended to read as follows: 3.4 Term. Unless earlier terminated in accordance with the provisions of Article 8.0 of this Agreement, the term of this agreement shall commence on January 1, 2021, and terminate on December 31, 2025 ("Initial Term"). Amendment No. 1 to this Agreement extends the term from January 1, 2026, through December 31, 2027. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 3 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA California municipal corporation Govinvest, Inc. SIGNED IN COUNTERPART JOIy.M MILLEN, City Manager MAX STOFF, Director of Customer Success City of La Quinta, California Dated: 0 Wz`� ATTEST: MONIKA RADE�/A, G,tty Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California Dated: Dated: Docusign Envelope ID: 9FFE7109-8528-4E66-B94D-0B5111434EDB 1. Section 2.1 Contract Sum is amended to read as follows: 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Contracting Party shall be compensated in accordance with Exhibit "B" (the "Schedule of Compensation") for a total not to exceed combined amount of Two Hundred Sixty -Five Thousand and Five Hundred Dollars ($265,500) for the life of the agreement, including the Initial and any Extended Terms (the "Contract Sum"), except as provided in Section 1.7. 2. Section 3.4 Term is amended to read as follows: 3.4 Term. Unless earlier terminated in accordance with the provisions of Article 8.0 of this Agreement, the term of this agreement shall commence on January 1, 2021, and terminate on December 31, 2025 ("Initial Term"). Amendment No. 1 to this Agreement extends the term from January 1, 2026, through December 31, 2027. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 3 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation SIGNED IN COUNTERPART JON McMILLEN, City Manager City of La Quinta, California Dated: ATTEST: SIGNFr) IN COUNTFRPART MONIKA RADEVA, City Clerk City of La Quinta, California APPROVED AS TO FORM: SIGNED IN COUNTERPART WILLIAM H. IHRKE, City Attorney City of La Quinta, California Govinvest, Inc. LSigned by: ka hiartitA, Ut4HOUCrojMU441... NICK MARTIN, VP of Finance & Operations Dated: 9/5i2025 Dated: Exhibit A Scope of Services Annual Fee Includes: • Unlimited Logins: Credentials to access induvial cloud -based portals. • Portal Setup: Development of dedicated cloud -based portals. • Features & Reports: All features and reporting functions available within the cloud -based portal. • Setup, Support & Training: Dedicated support staff to assist in initial setup and unlimited ongoing training of the product and features. Refer to Implementation Steps below under User Training • Support Resources: Access to labor costing experts, training tools, webinars and conferences hosted by Company. • Expert Sessions: Scheduled training hosted by in-house finance, negotiations & budget experts, as well as peer government users with extensive experience using the product. • Internal Presentation Support: In-house finance, negotiations and budget experts to support in developing and reviewing presentations based on product usage. • Dedicated Customer Success Manager: Specialist assigned to Client to facilitate communication withall available resources. Implementation Steps • Introductory 1-on-1 meeting between Customer's project sponsor and Govinvest onboarding lead • Optional kick-off meeting with Govinvest onboarding lead and all customer stakeholders and others that will be involved in the onboarding process • User training: Digital one-on-one or group sessions focused on setting up projects and using software to support Customer's objectives. • Project configuration: support the customer in building a cost project for their first bargaining group • Census building: Support the customer building their census file through development of costing elements built into software and within the validation process. • Validation: assist the customer in validating their results • Support: answer customer questions as they come up about modelling or validation Onboarding and implementation of the services included in this agreement, including data integration, data validation, training, and launch shall be completed by Customer with Govinvest onboarding team support. Implementation moves at pace of customer and their ability to compile appropriate data, understand MOU's and Govinvest will support in software build out and representation of data. Implementation Fee Includes Annual Fee Includes Initial Logins Additional Logins Initial Portal Setup Ongoing Maintenance Current Features & Reports Future Features & Reports Initial Setup & Training Future Support & Training Current Support Resources Future Support Services Expert Training Session Annual Expert Sessions Internal Presentation Review (By Appointment) Ongoing Presentation Support (By Appointment) Dedicated Customer Success Manager Dedicated Customer Success Manager Cloud Based Downloads Total Cost (Annual) Employee Results Total Cost (Cumulative) Employees by Funding Source Payroll (Annual) Cost by Funding Source Difference from the Baseline (Annual) Accounts by Cost Difference from Baseline (Cumulative) Accounts by Cost Accounting ID Cost Breakdown (Cumulative) Accounts by Employee Accounting ID Cost Detail (Annual) Accounts by Funding Source Cost Category Breakdown (Cumulative) Employees by Account 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 Contracting Party under this Agreement is Two Hundred Sixty -Five Thousand and Five Hundred Dollars ($265,500) (the "Contract Sum") as detailed in the table below: Initial Term Services Cost FY 2020/21 Pension/OPEB & Reporting $22,000 FY 2021/22 Pension/OPEB & Reporting $20,000 FY 2022/23 Pension/OPEB & Reporting $22,000 FY 2023/24 Pension/OPEB & Reporting $20,000 FY 2024/25 Pension/OPEB & Reporting $22,000 Grand Total: $106,000 Amendment No. 1 FY 2022/23 Labor Costing & Financial Forecasting $17,000 Amendment No. 2 FY 2023/24 Labor Costing & Financial Forecasting $17,000 FY 2024/25 Labor Costing & Financial Forecasting $25,500 Amendment No. 3 FY 2025/26 Pension/OPEB & Reporting and Labor Costing & Financial Forecasting $50,000 FY 2026/27 Pension/OPEB & Reporting and Labor Costing & Financial Forecasting $50,000 Grand Total: $265,500 CONSENT CALENDAR ITEM NO. 12 City of La Quinta CITY COUNCIL MEETING: August 5, 2025 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES WITH GOVINVEST INC FOR ACTUARIAL CONSULTING AND TECHNOLOGY SERVICES FOR A TWO-YEAR TERM EXTENSION RECOMMENDATION Approve Amendment No. 3 to Agreement for Contract Services with Govinvest Inc. for actuarial consulting and technology services for a two-year term extension; and authorize the City Manager to execute the Amendment. EXECUTIVE SUMMARY • The City currently utilizes Govinvest Inc. for actuarial consulting and technology services that includes required annual pension and healthcare actuarial services in order to comply with Governmental Accounting Standards Board (GASB) Statements 68 and 75, which establish standards for the measurement, display, and recognition of Pension and Other Post -Employment Benefits (OPEB) expenses and liabilities. In addition, the City uses the labor costing and financial forecasting modules to support planning, forecasting, and budgeting activities. • In November 2020, Council awarded the actuarial consulting and technology services contract to Govinvest Inc, which expires December 31, 2025. • On July 19, 2022, Council approved Amendment No. 1 which included the addition of modules for labor costing and financial forecasting for the initial term. • On March 5, 2024, Council approved Amendment No. 2 which included the labor costing and financial forecasting extension for two additional years through December 31, 2025. • Amendment No. 3 (Attachment 1) proposes a two-year extension through December 31, 2027. FISCAL IMPACT If approved, the cost for the two-year extension will be $100,000, for a total contract amount of $265,500 as summarized below: 117 Initial Term Services Cost FY 2020/21 Pension/OPEB & Reporting $22,000 FY 2021/22 Pension/OPEB & Reporting $20,000 FY 2022/23 Pension/OPEB & Reporting $22,000 FY 2023/24 Pension/OPEB & Reporting $20,000 FY 2024/25 Pension/OPEB & Reporting $22,000 Grand Total: $106,000 Amendment No. 1 FY 2022/23 Labor Costing & Financial Forecasting $17,000 Amendment No. 2 FY 2023/24 Labor Costing & Financial Forecasting $17,000 FY 2024/25 Labor Costing & Financial Forecasting $25,500 Amendment No. 3 FY 2025/26 Pension/OPEB & Reporting and Labor Costing & Financial Forecasting $50,000 FY 2026/27 Pension/OPEB & Reporting and Labor Costing & Financial Forecasting $50,000 Grand Total: $265,500 Pension/OPEB and financial forecasting and labor costing software fees will be paid from the Information Technology Fund (Account No. 502-0000-60301, Software Licenses) and annual GASB reports from the Finance Department's budget (Account No. 101-1006- 60104), Consultants. BACKGROUND/ANALYSIS In November 2020, Council awarded the actuarial consulting and technology services contract to Govinvest Inc, for an initial five-year term expiring December 31, 2025, with an option to extend for two additional years. On July 19, 2022, Council approved Amendment No. 1 adding modules for labor costing and financial forecasting for fiscal year 2022/23, which included the implementation phase and six months of complimentary service from July — December 2022. On March 5, 2024, Council approved Amendment No. 2 extending the modules for labor costing and financial forecasting services through fiscal years 2023/24 and 2024/25. Amendment 3 proposes a two-year term extension through December 31, 2027, at $50,000 per fiscal year, for a total not to exceed amount of $100,000, bringing the total contract amount to $265,500. ALTERNATIVES — Staff does not recommend other alternatives. Prepared by: Approved by: Claudia Martinez, Finance Director Jon McMillen, City Manager Attachment: 1. Amendment No. 3 to Agreement for Contract Services with Govinvest, Inc. 118