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2024 GovInvest, Inc. Amendment 2 - Labor Costing & Financial ForecastingDATE TO MEMORANDUM APril 23, 2024 Jon McMillen, City Manager FROM: Claudia Martinez, Finance Director RE: Govinvest Amendment 2 - Labor Costing & Financial Forecasting �W {:11.1E�11R\E.1 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 March 5, 2024, Consent 6 QCity Manager's signing authority provided under the City's Purchasing Policy [Resolution No. 2023-008] 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. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less. Procurement Method (one must apply): E] Bid F-/-1 RFP F-1 RFQ F-1 3 written informal bids QSole Source F-1 Select Source 1-1 Cooperative Procurement Reauestina department shall check and attach the items below as auurouriate: ✓Q Agreement payment will be charged to Account No.: 101-1006-60104 ✓Q Agreement term: Start Date 01 /01 /2021 End Date 12/31 /2025 W-1 Amount of Agreement, Amendment, Change Order, etc.: $165,500 REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual Amendments or Change Orders! L Insurance certificates as required by the Agreement for Risk Manager approval Approved by: need updated 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) El Business License No. Expires: Requisition for a Purchase Order has been prepared (Agreements over $5,000) AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH GOVINVEST INC. This Amendment No. 2 ("Amendment No. 2") to Professional Services Agreement ("Agreement") is made and entered into as of the 1st day of January, 2024, ("Effective Date") by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and Govinvest Inc. ("Consultant"). RECITALS WHEREAS, on or about December 1, 2020, the City and Consultant 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, on or about June 29, 2022, the City and Consultant executed Amendment No. 1 to: • Amend Section 1.1 - Scope of Services to include the addition of the labor costing module and financial forecasting module; and • Amend Section 2.1 - Contract Sum by an additional amount of $17,000 to include compensation for the labor costing module and financial forecasting module, for a total not to exceed amount of $123,000; and WHEREAS, City and Contracting Party mutually agree to amend Section 2.1 - Contract Sum by an additional amount of $42,500 to include compensation for extension of the labor costing module and financial forecasting module, for a total not to exceed amount of $165,500. 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 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 One Hundred Twenty -Three Thousand Dollars ($123,000), and in a total not to exceed amount of Forty -Two Thousand and Five Hundred Dollars ($42,500) during the Term, for a total not to exceed combined amount of One Hundred Sixty -Five Thousand and Five Hundred Dollars ($165,500) (the "Contract Sum"), except as provided in Section 1.6. In all other respects, the original Agreement shall remain in effect. IN WITNESS WHEREOF, the City and Consultant have executed this Amendment No. 2 to the Agreement on the respective dates set forth below. CITY OF LA QUINTA a California municipal corporation JO ILLEN, City Manager City of La Quinta, California Dated: ATTEST: MONIKA RADE A, City Clerk City of La Quinta, California APPROVED AS TO FORM: WILLIAM H. IHRKE, City Attorney City of La Quinta, California CONSULTANT: Govinvest, Inc. 7ea�e Ste& Max Stoff, Director of Customer Success Dated: 4/23/2024 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 Initial Logins Annual Fee Includes 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 Consultant under this Agreement is One Hundred Twenty -Three Thousand Dollars ($123,000), and in a total not to exceed amount of Forty -Two Thousand and Five Hundred Dollars ($42,500) during the Term, for a total not to exceed combined amount of One Hundred Sixty -Five Thousand and Five Hundred Dollars ($165,500) for the Initial Term. CONSENT CALENDAR ITEM NO. 6 City of La Quinta CITY COUNCIL MEETING: March 5, 2024 STAFF REPORT AGENDA TITLE: APPROVE AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES WITH GOVINVEST INC. TO EXTEND MODULES FOR LABOR COSTING AND FINANCIAL FORECASTING RECOMMENDATION Approve Amendment No. 2 to Agreement for Contract Services with Govinvest Inc. to extend modules for labor costing and financial forecasting; 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 November 2020, Council awarded the actuarial consulting and technology services contract to Govinvest Inc, which expires December 31, 2025. • Amendment No. 1 (Amendment 1) included the addition of modules for labor costing and financial forecasting for the initial term. • Amendment No. 2 (Amendment 2) proposes the labor costing and financial forecasting be extended for two additional years through December 31, 2025. FISCAL IMPACT The annual cost for the additional modules will be $17,000 for the extended term through December 31, 2025, in the amount of $42,500 for the two additional years. Funds for these additional modules are available in the Finance Department account No. 101-1006- 60104, Consultants. 59 BACKGROUND/ANALYSIS In November 2020, Council awarded the actuarial consulting and technology services contract to Govinvest Inc, for a total not to exceed amount of $106,000, for an initial term of five years, expiring December 31, 2025, with an option to extend for two additional years. Amendment 1 added modules for labor costing and financial forecasting by an additional amount of $17,000, increasing the contract for a total not to exceed amount of $123,000, for the initial term through December 31, 2025; this pricing includes the implementation phase and six months of complimentary service from July — December 2022. Amendment 2 proposes to extend the modules for labor costing and financial forecasting by an additional amount of $17,000 for FY 23/24 and $25,500 for FY 24/25, increasing the contract for a total not to exceed amount of $165,500, for the initial term through December 31, 2025. The implementation phase has been completed and the City would like to use these services moving forward. The addition of these modules will assist the City by elevating the process of planning, forecasting and budgeting by eliminating manual spreadsheets, automating the forecasting and scenario planning process, increasing transparency and trust across departments with visual graphs, and projecting labor costs with instant analysis and measuring changes in workforce. ALTERNATIVES Staff does not recommend other alternatives. Prepared by: Claudia Martinez, Finance Director Approved by: Jon McMillen, City Manager Attachment: 1. Amendment No. 2 to Agreement for Contract Services We