BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ☒ No ☐
(If “YES” Complete Attachment A - Gov. Code § 84308)
SUBJECT: Title
Consider the June 17, 2025, Board Audit Committee Recommendation to Approve Amendment No. 2 to Agreement A4570A with Sjoberg Evashenk Consulting, Inc., to Provide Board Audit Consultant Services, Extending the Agreement Term to November 22, 2026, and to Increase the Not-to-Exceed by $600,000, Resulting in a Total Not-to-Exceed Fee of $1,400,000.
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RECOMMENDATION: Recommendation
Adopt the June 17, 2025, Board Audit Committee Recommendation to Approve Amendment No. 2 to Agreement A4570A with Sjoberg Evashenk Consulting, Inc., to provide Board Audit Consultant Services, extending the Agreement term to November 22, 2026, and to increase the Not-to-Exceed by $600,000, resulting in a total Not-to-Exceed fee of $1,400,000.
Body
SUMMARY:
With this agreement, the consultant serves as advisor to the Board of Directors’ Audit Committee (Board Audit Committee) in fulfilling its duties, responsibilities, and functions. More specifically, the consultant assesses operational risks and advises on potential audits to ensure Santa Clara Valley Water District is in compliance with its policies, procedures and any local, state, and/or federal regulations as appropriate. The recommended audits may or may not be conducted by the Consultant. The consultant will also assist in preparing an annual program of audits with associated calendars, schedules and budgets and prepare formal and informal reports and presentations to the Audit Committee and to the full Board of Directors.
Prior Board Actions re Agreement No. A4648G
On November 23, 2021, the Board approved the Standard Consultant Agreement with Sjoberg Evashenk Consulting, Inc., to provide Board Audit Consultant Services for a not-to-exceed amount of $800,000 and a term of three (3) years.
On June 18, 2024, the Board of Directors’ Audit Committee (BAC) approved recommending Amendment No. 1 to the Agreement with Sjoberg Evashenk Consulting, Inc., to extend the agreement term by one (1) year from November 22, 2024, to November 22, 2025, to the full Board. On September 24th, 2024, the Board of Directors approved the BAC recommendation to extend the agreement term to November 23, 2025, and incorporating administrative changes as requested.
Need for Amendment No. 2 to Agreement No. A4648G
To date, the Consultant has performed an audit of the Capital Improvement Program (CIP), analyzed the results of implemented audit recommendations to ensure effectiveness, conducted an organization-wide risk assessment, and developed the annual audit plan for fiscal years 2023, 2024, and 2025. The Consultant has also provided guidance and perspective for consideration by the BAC, conducted training sessions with the BAC members, and held 1-on-1 meetings with the Board members as part of the annual evaluation process.
Approval of the recommended action herein would allow the consultant to continue to serve a critical role as an advisor to the BAC in a timely manner and without delay to the highest priority audits. The consultant will continue to assist in preparing an annual program of audits with associated calendars, schedules and budgets and prepare formal and informal reports and presentations to the BAC and the Board of Directors.
Accordingly, Staff recommends approval of Amendment No. 2 to the Agreement to extend the agreement term by one (1) year from November 22, 2025, to November 22, 2026, and to increase the Not-to-Exceed fee (NTE) by $600,000, resulting in a total Not-to-Exceed fee of $1,400,000.
ENVIRONMENTAL JUSTICE AND EQUITY IMPACT:
There are no Environmental Justice or Equity Impacts associated with this item.
FINANCIAL IMPACT:
The current total NTE for the Agreement is $800,000. With the approval of Amendment No. 2, the total NTE amount for the Agreement would be $1,400.000. There are adequate funds in the Continual Improvement Project, Project 60131014, to cover the delta between the existing Agreement and as it would be amended through Amendment No. 2. Fees for work to be performed in the future fiscal years will be budgeted accordingly.
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 in the environment.
ATTACHMENTS:
Attachment A: Gov. Code 84308
Attachment 1: Amendment No. 2
Attachment 2: Amendment No. 1
Attachment 3: Agreement
UNCLASSIFIED MANAGER: Manager
Darin Taylor, 408-630-3068