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HomeMy WebLinkAboutItem 19 - Agreement for Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation MethodologyFinance and Management Services www.santa-ana.org/finance Item # 19 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report August 20, 2024 TOPIC: Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services AGENDA TITLE Agreement with Cherry Bekaert Advisory LLC for Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services RECOMMENDED ACTION Authorize the City Manager to execute an agreement with Cherry Bekaert Advisory LLC for Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services for a total aggregate amount not to exceed $150,000 for a three-year term beginning August 20, 2024 and expiring August 19, 2027, with a provision for a two- year extension (Agreement No. A-2024-XXX). GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION The Finance and Management Services Agency (FMSA) oversees the comprehensive cost allocation process, which includes the Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation. The primary purpose of these cost allocation plans is to ensure that the City's method of identifying and distributing indirect costs and internal service costs is fair, comprehensive, well -documented, and defensible. These cost allocation plans are used for the budget development process and to recover costs through charges to restricted funding sources. In addition, due to the increased scrutiny from state and federal agencies, staff recommends to continue using experienced firms for these services to remain compliant with applicable laws and regulations. The proposed services include two primary components: an Indirect Cost Allocation Plan (Indirect Costs) and an Internal Service Funds Cost Allocation Methodology. The Indirect Cost Allocation Plan aims to recover the General Fund's overhead costs of providing indirect support services to operating departments and programs. The Internal Service Funds Cost Allocation Methodology aims to develop a full cost allocation methodology to recover annual operating costs of internal service funds from inter- agency customers. Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services August 20, 2024 Page 2 Eight firms submitted proposals in response to the Request for Proposal (RFP) No. 24- 059: Revenue & Cost Specialists, LLC, Willdan Financial Services, ClearSource Financial Consulting, Government Consulting Partners, Inc., Maximus US Services, Inc., MGT of America Consulting, LLC, Cherry Bekaert Advisory LLC, and Matrix Consulting Group, Ltd. The selection committee with experience in the related services evaluated proposals. Based on the Committee's evaluation and review of references, Cherry Bekaert Advisory LLC was selected as the most qualified firm for Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services. They demonstrated extensive experience in this field with governments of similar size. In addition, the firm demonstrated the ability to work with staff to understand the City's operations and maximize recovery of indirect costs. Cherry Bekaert Advisory LLC will provide the following services: Indirect Costs (General Fund Overhead Support): • City Attorney • Office of the City Manager • Human Resources • City Clerk • Finance (Purchasing, Management & Support, Payroll, and Treasury) • Fixed Assets Internal Service Funds: • Building Maintenance • Equipment Maintenance and Replacement • Self -Insurance ( Worker's Compensation, General Liability, and Employees Benefit) • Information & Communication Services • City Yard Operations (Corporate Yard and Fleet maintenance facility) • Public Works Agency's Engineering and Administrative Services ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funding is available in the current FY 2024-25 budget, and funding for the subsequent fiscal year will be included in the proposed budget for City Council consideration. Indirect Cost Allocation Plan and Internal Service Fund Cost Allocation Methodology Services August 20, 2024 Page 3 Fiscal Accounting Fund Accounting Unit, Account Amount Year Unit -Account# Description Description FY 24-25 01110110-62300 General Fund Finance/Management $20,000 Services - Accounting FY 24-25 01110100-62300 General Fund Finance/Management $10,000 Services — Management & Supt FY 25-26 01110110-62300 General Fund Finance/Management $20,000 Services - Accounting FY 25-26 01110100-62300 General Fund Finance/Management $10,000 Services — Management & Supt FY 26-27 01110110-62300 General Fund Finance/Management $20,000 Services - Accounting FY 26-27 01110100-62300 General Fund Finance/Management $10,000 Services — Management & Supt FY 27-28 01110110-62300 General Fund Finance/Management $20,000 Services - Accounting FY 27-28 01110100-62300 General Fund Finance/Management $10,000 Services — Management & Supt FY 28-29 01110110-62300 General Fund Finance/Management $20,000 Services - Accounting FY 28-29 01110100-62300 General Fund Finance/Management $10,000 Services — Management & Supt Total $150,000 EXHIBIT(S) 1. Agreement Submitted By: Kathryn Downs, Finance and Management Services Executive Director Approved By: Alvaro Nunez, City Manager EXHIBIT 1 AGREEMENT WITH CHERRY BEKAERT ADVISORY LLC TO DEVELOP CITYWIDE INDIRECT COST ALLOCATION PLAN AND INDIRECT SERVICE FUNDS COST ALLOCATION METHODOLOGY THIS AGREEMENT is made and entered into on this 20th day of August, 2024 by and between Cherry Bekaert Advisory, LLC ("Consultant"), and the City of Santa Ana, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. On May 13, 2024, the City issued Request for Proposal ("RFP") No. 24-059, by which it sought qualified firms to develop the City's annual Citywide Indirect Cost Allocation Plan and Internal Service Funds Cost Allocation Methodology. B. Consultant submitted a responsive proposal that was selected by the City. Consultant represents that it is able and willing to provide the services described in the scope of work that was included in RFP 24-059_ C. In undertaking the performance of this Agreement, Consultant represents that it is knowledgeable in its field and that any services performed by Consultant under this Agreement will be performed in compliance with such standards as may reasonably be expected from a professional firm in the field. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions hereinafter set forth, the parties agree as follows: 1. SCOPE OF SERVICES Consultant shall perform the services described in the scope of work that was included in RFP No. 24-059, which is attached as Exhibit A. 2. COMPENSATION a. City agrees to pay, and Consultant agrees to accept as total payment for its services for City, the rates and charges identified in Exhibit B, Consultant's Cost Proposal submitted with its RFP response. The annual amount to be expended under the Agreement shall not exceed $30,000 and the total amount to be expended during the entire term of this Agreement shall not exceed $150,000. b. Payment by City shall be made within 45 days (forty-five) days following receipt of proper invoice evidencing work performed, subject to City accounting procedures. Payment need not be made for work which fails to meet the standards of performance set forth in the Recitals which may reasonably be expected by City. 3. TERM This Agreement shall commence on the date first written above for a three-year term and terminate on August 19, 2027, unless terminated earlier in accordance with Section 16, below. The term of this Agreement may be extended for one, two-year extension upon a writing executed by the City Manager and City Attorney. 4. INDEPENDENT CONTRACTOR Consultant shall, during the entire term of this Agreement, be construed to be an independent contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to create an employer -employee relationship, a joint venture relationship, or to allow the City to exercise discretion or control over the professional manner in which Consultant performs the services which are the subject matter of this Agreement; however, the services to be provided by Consultant shall be provided in a manner consistent with all applicable standards and regulations governing such services. Consultant shall pay all salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to employees and shall be responsible for all applicable withholding taxes. 5. OWNERSHIP OF MATERIALS This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement, not to include Consultant's work papers ("Documents & Data"). Consultant shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City's sole risk. 6. INSURANCE Prior to undertaking performance of work under this Agreement, Consultant shall maintain and shall require its subcontractors, if any, to obtain and maintain insurance as described below for the entire Term of this Agreement against claims for injuries to persons or damage to property which may arise from or in connection with services, products and materials supplied to City. Total cost of such insurance shall be borne by Consultant. a. Minimum Scope and Limit of Insurance 1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence and $4,000,000 aggregate. Required policy limits can be met with primary and umbrella/excess insurance policies. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1) with a limit no less than $1,000,000 combined single limits. In the event Consultant does not maintain commercial automobile insurance. 3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. 4. Professional Liability Insurance: with limits no less than $1,000,000 per occurrence or claim, and $2,000,000 aggregate. 5. Broader Coverage: if the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. b. Other Insurance Provisions Additional Insured Status: The City, its City Council, its officers, officials, employees, and volunteers are to be covered as additional insureds on the Consultant's CGL, Professional Liability, and Automobile Liability policies, with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. 2. Waiver of Subrogation: Consultant hereby grants to City a waiver of any right to subrogation that any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. 3. Primary Coverage: For any claims related to this contract, the Consultant's insurance coverage shall be primary. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant's insurance and shall not contribute with it. 4. Severability of Interest: A severability of interest provision must apply for all the additional insureds, ensuring that Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the insurer's limits of liability. 5. Notice of Cancellation: Each insurance policy required above shall provide that coverage shall not be canceled, voided, reduced in coverage or in limits, non -renewed by the carrier, or materially changed except after thirty (30) days prior written notice has been given to City. Ten (10) days prior written notice shall be provided to City for policy cancellation or non -renewal due to non-payment of premium. 6. Certificate Holder on each Evidence of Insurance certificate shall be: City of Santa Ana, Attention: Rosie Perez, 20 Civic Center Plaza, M-13, Santa Ana, 92701. The name and location of project must be included in the Description of Operations section of each certificate. 7. Self -Insured Retentions: Self -insured retentions must be declared to and approved by the City. The City may require Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. Acceptability of Insurers: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best's rating of no less than A-:VII, unless otherwise acceptable to the City. 9. Verification of Coverage: Consultant shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage requiredby this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Consultant's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies,including endorsements required by these specifications, at any time. 10. Special Risks or Circumstances: City reserves the right to modify these requirements, including limits, based on the nature of therisk, prior experience, insurer, coverage, or other special circumstances. 7. INDEMNIFICATION Consultant agrees to defend, and shall indemnify and hold harmless the City, its City Council, officers, officials, agents, employees, contractors, special counsel, volunteers, and representatives from liability: (1) for personal injury, damages, just compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including death, and claims for property damage, which may arise from the negligent operations of the Consultant, its subcontractors, agents, employees, or other persons acting on its behalf which relates to the services described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just compensation, restitution, judicial or equitable relief is due by reason of Consultant's breach of this Agreement. This indemnity and hold harmless agreement applies to all third party claims for damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason of the events referred to in this Section. The Consultant further agrees to indemnify, hold harmless, and pay all costs for the defense of the City, including fees and costs for special counsel to be selected by the City, regarding any covered action. City may make all reasonable decisions with respect to its representation in any legal proceeding. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Notwithstanding anything to the contrary herein, the maximum aggregate liability of Consultant with respect to its indemnification obligations under this Agreement shall not exceed the sum of five million dollars ($5,000,000). 8. INTELLECTUAL PROPERTY INDEMNIFICATION Consultant shall defend and indemnify the City, its officers, agents, representatives, and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in the work product or documents provided by Consultant to the City pursuant to this Agreement. 9. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures, and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of the City to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement during regular business hours. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 10. CONFIDENTIALITY If Consultant receives from the City information which due to the nature of such information is reasonably understood to be confidential and/or proprietary, Consultant agrees that it shall not use or disclose such information except in the performance of this Agreement, and further agrees to exercise the same degree of care it uses to protect its own information of like importance, but in no event less than reasonable care. "Confidential Information" shall include all nonpublic information. Confidential information includes not only written information, but also information transferred orally, visually, electronically, or by other means. Confidential information disclosed to either party by any subsidiary and/or agent of the other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no fault of the Consultant disclosed in a publicly available source; (c) is in rightful possession of the Consultant without an obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently developed by the Consultant without reference to information disclosed by the City. 11. CONFLICT OF INTEREST CLAUSE Consultant covenants that it presently has no interests and shall not have interests, direct or indirect, which would conflict in any manner with performance of services specified under this Agreement. 12. NON-DISCRIMINATION Consultant shall not discriminate because of race, color, creed, religion, sex, marital status, sexual orientation, gender identity, gender expression, gender, medical conditions, genetic information, or military and veteran status, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the recruitment, selection, teaching, training, utilization, promotion, termination or other employment related activities or any services provided under this Agreement. Consultant affirms that it is an equal opportunity employer and shall comply with all applicable federal, state and local laws and regulations. 13. EXCLUSIVITY AND AMENDMENT This Agreement represents the complete and exclusive statement between the City and Consultant, and supersedes any and all other agreements, oral or written, between the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument signed by the City and by an authorized representative of Consultant. The parties agree that any terms or conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms and conditions hereof, shall not bind or obligate Consultant or the City. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which is not embodied herein. 14. ASSIGNMENT Inasmuch as this Agreement is intended to secure the specialized services of Consultant, Consultant may not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the City and any such assignment, transfer, delegation or subcontract without the City's prior written consent shall be considered null and void. Nothing in this Agreement shall be construed to limit the City's ability to have any of the services which are the subject to this Agreement performed by City personnel or by other contractors retained by City. 15. TERMINATION This Agreement may be terminated by the City upon thirty (30) days written notice of termination. In such event, Consultant shall be entitled to receive and the City shall pay Consultant compensation for all services performed by Consultant prior to receipt of such notice of termination, subject to the following conditions: a. As a condition of such payment, the Executive Director may require Consultant to deliver to the City all work product(s) completed as of such date, and in such case such work product shall be the property of the City unless prohibited by law, and Consultant consents to the City's use thereof for such purposes as the City deems appropriate. b. Payment need not be made for work which fails to meet the standard of performance specified in the Recitals of this Agreement. 16. WAIVER No waiver of breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement shall be effective unless it is in writing and signed by the party waiving the breach, failure, right or remedy. No waiver of any breach, failure or right, or remedy shall be deemed a waiver of any other breach, failure, right or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver unless the writing so specifies. 17. JURISDICTION - VENUE This Agreement has been executed and delivered in the State of California and the validity, interpretation, performance, and enforcement of any of the clauses of this Agreement shall be determined and governed by the laws of the State of California. Both parties further agree that Orange County, California, shall be the venue for any action or proceeding that may be brought or arise out of, in connection with or by reason of this Agreement. 18. PROFESSIONAL LICENSES Consultant shall, throughout the term of this Agreement, maintain all necessary licenses, permits, approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by the laws and regulations of the United States, the State of California, the City of Santa Ana and all other governmental agencies. Consultant shall notify the City immediately and in writing of its inability to obtain or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for termination of this Agreement. 19. MISCELLANEOUS PROVISIONS a. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. b. All Exhibits referenced herein and attached hereto shall be incorporated as if fully set forth in the body of this Agreement. 20. NOTICE Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be in writing and shall be deemed to be properly given if delivered in person or mailed by first class or certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided in this Section, to the following persons: To City: Clerk of the City Council City of Santa Ana 20 Civic Center Plaza (M-30) Santa Ana, CA 92702-1988 Fax: 714- 647-6956 With courtesy copies to: Kathryn Downs Executive Director, Finance & Management Services Agency, City of Santa Ana 20 Civic Center Plaza (M-13) P.O. Box 1988 Santa Ana, California 92702 To Consultant: Cherry Bekaert Advisory, LLC 777 S. Figueroa Street, Ste. 825 Los Angeles, CA 90017 A party may change its address by giving notice in writing to the other parry. Thereafter, any communication shall be addressed and transmitted to the new address. If sent by mail, communication shall be effective or deemed to have been given three (3) days after it has been deposited in the United States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays shall be excluded. [Signatures on following page] IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written. ATTEST: Jennifer L. Hall City Clerk APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: Kyle lesen Assistant City Attorney RECOMMENDED FOR APPROVAL: Kathryn Downs Executive Director Finance and Management Services Agency CITY OF SANTA ANA Alvaro Nunez Acting City Manager CHERRY BEKAERT ADVISORY LLC: Denise Lippuner Partner (9) EXHIBIT A - SCOPE OF WORK CITY OF SANTA ANA EXHIBIT I SCOPE OF SERVICES Consultant shall perform services as set forth below. A. General Planning and Reporting Before commencing work, Consultant shall meet with the City Staff Team to: clarify the intended goals and purpose(s) of the Project; discuss perceived issues; gain an understanding of City operations; and establish responsibilities. During the course of the Project, the City may request periodic progress reports. In addition, Consultant shall immediately notify the Finance Director of any encountered problems. To assure timely availability of staff and other resources, Consultant shall submit a viable work plan to the Finance Director along with a written request for documents and schedules to be prepared by staff, and the dates by which such items are required. The following Plans should be developed and updated annually for a three-year period beginning with the fiscal years ending June 30, 2026 through June 30, 2028, with a provision for one two-year renewal period for the fiscal years ending June 30, 2029 through June 30, 2030. B. Citywide Indirect Cost Allocation Plan i. Develop a full cost Citywide Indirect Cost Allocation Plan in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) , which will be used to recover the General Fund costs of providing services to various City programs and departments. ii. Present a preliminary Citywide Indirect Cost Allocation Plan to City staff and modify as necessary. iii. Prepare a final Plan and provide an electronic copy in PDF and Excel format to the City. iv. Present the Cost Allocation Policy to City staff and modify as necessary. V. Consult with City staff should the need arise to defend the Plan as a result of audits or other challenges. C. Internal Service Funds Cost Allocation Methodology i. Review programs and services provided by each Internal Service Fund. ii. Identify all inter -agency customers. iii. For each Internal Service Fund, develop a full cost allocation methodology for distributing annual costs to inter -agency customers. iv. Recommend best practice guidelines related to annual reconciliation of actual costs for services rendered. V. Provide an electronic copy of the final methodology and related schedules and documentation in a format that can be edited and updated by City staff to accommodate changes in the organization or changes in costs. vi. Consult with City staff should the need arise to defend the Methodology as a result of audits or other challenges. City of Santa Ana RFP No. 24-059 Page 18 of 33 Cherry EXHIBIT B - FEE PROPOSAL Bekaert Proposal for City of Santa Ana Cost Proposal All Proposers are required to submit a detailed cost proposal, including estimated hours, hourly rates, expenses and a total not -to -exceed cost. Pricing instructions should be clearly defined to ensure fees proposed can be compared and evaluated. We understand and appreciate your desire for professional service providers who are not only highly qualified, but who are also cost-conscious and cost-effective about the work they perform. We are mindful that cost is always a consideration in selecting a professional services firm. Accordingly, we have structured our fee based on our strong desire to develop a mutually rewarding, long-term relationship. Our fees are generally based on the time required to complete the work at our established billing rates, plus clerical and computer charges and out-of-pocket expenses. Our fees are also based on other factors such as the complexity of the work, the skill required, time limits, the experience and abilities of our personnel, and the value of the services rendered. MW A ' •. FY24 $20,000.00 FY25 $20,000.00 FY26 $20,000.00 (Option Year) FY27 $20,000.00 (Option Year) FY28 $20,000.00 Additional Details $10,000.00 Included $10,000.00 Included $10,000.00 Included $10,000.00 Included $10,000.00 Included Please Note: "Cherry Bekaert" is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC, independently owned entities, provide professional services in an alternative practice structure in accordance with applicable professional standards. Cherry Bekaert LLP is a licensed CPA firm that provides attest services, and Cherry Bekaert Advisory LLC and its subsidiary entities provide business advisory and non -attest services. For more details, visit cbh.com/disclosure. A change in fees will apply should the scope of work change significantly. Should this occur, or there is a change in scope because of a change in your operations, we would meet with you to obtain your agreement on any increase in the fee ranges before proceeding. Start Up Costs The proposed fees do not include the additional time we expect to establish our understanding of the City, get introduced with your personnel and establish allocation structure and methodology. This effort typically amounts to 15 — 25% more hours in the first service year. We will absorb this additional time as an investment in the long-term relationship with the City. Out -of -Scope Services We encourage open lines of communication throughout the year as part of our services. Generally, we do not bill for routine telephone consultations. However, should a matter require major research or services not included above, we will bill for these services at established hourly rates as rendered. Before beginning any additional work outside the scope of this proposal, we will discuss anticipated fees with your management to obtain understanding and approval, as well as any anticipated discount based on the timing and complexity of the service. 26 CherryBekaertAgreement(UP 24-059) (CAO) (418438.1) Final Audit Report 2024-08-01 Created: 2024-08-01 By: Kristin Andrade (kandrade@santa-ana.org) Status: Signed Transaction ID: CBJCHBCAABAAUgjwL1ge_Mdj2fmTHC4jsQka8UmXkOxo "CherryBekaertAgreement(UP 24-059) (CAO)(418438.1)" Histo ry ` Document created by Kristin Andrade (kandrade@santa-ana.org) 2024-08-01 - 4:17:33 PM GMT Cy Document emailed to Kathryn Downs (kdowns@santa-ana.org) for signature 2024-08-01 - 4:17:59 PM GMT 15 Email viewed by Kathryn Downs (kdowns@santa-ana.org) 2024-08-01 - 4:23:13 PM GMT © Document e-signed by Kathryn Downs (kdowns@santa-ana.org) Signature Date: 2024-08-01 - 4:23:27 PM GMT - Time Source: server © Agreement completed. 2024-08-01 - 4:23:27 PM GMT Q Adobe Acrobat Sign