BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Approve Amendment No. 5 to the Standard On-Call Consultant Agreement A4382G, CAS File No. 5095 with PMA Consultants, LLC to Provide On-Call Third-Party Internal Auditor Services, Increasing the Not-to-Exceed Fee by $600,000 for a Revised Total Not-to-Exceed Fee of $1,300,000.
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RECOMMENDATION: Recommendation
Approve Amendment No. 5 to the Standard On-Call Consultant Agreement A4382G, CAS File No. 5095 with PMA Consultants, LLC to provide On-Call Third-Party Internal Auditor Services for the audit and advisory services to the Internal Audit Program, increasing the Not-to-Exceed Fee by $600,000 for a revised Total Not-to-Exceed Fee of $1,300,000.
Body
SUMMARY:
Execution of Amendment No. 5 will result in an increase of the Agreement Not-to-Exceed Fee by $600,000 for a revised total Not-to-Exceed Fee of $1,300,000.
Project Background and Previous Actions
On July 27, 2020, the Chief Executive Officer approved a consultant agreement with PMA Consultants, LLC, (Consultant) to perform on-call Third-party Internal Auditor Services, as needed, for a not-to-exceed fee of $225,000 for a two (2) year term with the option to extend for up to one one-year term.
On June 14, 2022, the Board approved Amendment No. 1 to Agreement No. A4382G, which extended the Agreement term to July 27, 2023, and increased the not-to-exceed fee by $175,000 for a revised total not-to-exceed fee of $400,000.
On March 6, 2023, the Deputy Administrative Officer for the General Services Division approved Amendment No. 2, to extend the Agreement term to a five (5) year term from July 27, 2023, to July 27, 2025. The term extension was executed due to the fact that certain onsite audit services were delayed due to COVID-19 restrictions until 2022.
On January 23, 2024, the Board approved Amendment No. 3 to Agreement No. A4382G, to increase the not-to-exceed fee by $150,000 for a revised total not-to-exceed fee of $550,000.
On September 24, 2024, the Board approved Amendment No. 4 to Agreement No. A4382G, which extended the term to July 31, 2027, and increased the not-to-exceed fee by $150,000 for a revised total not-to-exceed fee of $700,000. (Note: for purposes of transparency, due to clerical errors, Amendment No. 4 and its corresponding Board Agenda Memorandum (Attachment 2) incorrectly identified the Agreement term end date prior to the execution of Amendment 4. The previous end date, as established in Amendment 2, was July 27, 2025.)
Consultant’s Work Performed to Date
To date, Santa Clara Valley Water District (Valley Water) has issued the Consultant a total of seven (7) task orders. Ninety-nine percent (99%) of the approved not-to-exceed fee of $700,000 has been allocated.
Staff Management of Consultant’s Agreement
Staff has been actively monitoring and managing the Consultant’s performance to ensure quality deliverables are produced on time and within budget. Progress meetings have been conducted periodically with the Consultant to assess progress of the projects. Valley Water also performs a QA/QC review of all deliverables received from the Consultant for compliance with project scope, budget and schedule.
As generally required in all Valley Water consultant agreements, Consultant is required to submit detailed monthly progress/status reports with their invoices. These reports are scrutinized by Valley Water staff before approval of any payment to Consultant.
Staff recommends approval of Amendment No. 5 to Agreement No. A4382G to increase the fee by $600,000 for a total revised Not-to-Exceed Fee of $1,300,000, and to enable PMA Consultants, LLC to continue to provide on-call third-party internal auditor services through the end of the agreement term on July 31, 2027.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice Impacts associated with this item.
FINANCIAL IMPACT:
Execution of Amendment No. 5 will result in an increase of the Agreement not-to-exceed amount by $600,000 for a total revised Not-to-Exceed Fee of $1,300,000. No funds will be encumbered at this time. On-call services will be charged in accordance with each approved task order to budgeted funds from the appropriate project. There are adequate funds in the project’s FY 2025-26 Budget to pay expenditures for anticipated services for this fiscal year. Funds to cover subsequent fiscal year services will be recommended by staff as part of the biennial budget process or through budget adjustments.
CEQA:
The recommended action to approve the Agreement does not constitute a project under the California Environmental Quality Act (CEQA) because it does not have the potential to result in direct or reasonably foreseeable indirect physical change to the environment.
ATTACHMENTS:
Attachment A: Gov. Code § 84308
Attachment 1: Amendment No. 5
Attachment 2: Amendment No. 4
Attachment 3: Amendment No. 3
Attachment 4: Amendment No. 2
Attachment 5: Amendment No. 1
Attachment 6: Original Agreement
UNCLASSIFIED MANAGER: Manager
Darin Taylor, 408-630-3068