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HomeMy WebLinkAbout20233613.tiff RESOLUTION RE: APPROVE AMENDMENT TO PURCHASE OF PROFESSIONAL SERVICES AGREEMENT FOR OIL AND GAS AUDITS AND EVALUATION SERVICES, AND AUTHORIZE CHAIR TO SIGN-MARTINDALE CONSULTANTS,INC. WHEREAS,the Board of County Commissioners of Weld County,Colorado,pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County,Colorado,and WHEREAS,the Board has been presented with an Amendment to the Purchase of Professional Services Agreement for Oil and Gas Audits and Evaluation Services between the County of Weld,State of Colorado,by and through the Board of County Commissioners of Weld County,and Martindale Consultants,Inc.,commencing upon full execution of signatures,and ending December 31,2024,with further terms and conditions being as stated in said amendment, and WHEREAS,after review,the Board deems it advisable to approve said amendment,a copy of which is attached hereto and incorporated herein by reference. NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Amendment to the Purchase of Professional Services Agreement for Oil and Gas Audits and Evaluation Services between the County of Weld,State of Colorado,by and through the Board of County Commissioners of Weld County,and Martindale Consultants,Inc.,be,and hereby is,approved. BE IT FURTHER RESOLVED by the Board that the Chair be,and hereby is,authorized to sign said amendment. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 11th day of December,A.D.,2023. BOARD OF COUNTY COMMISSIONERS WELD COUNTY,COLORADO ATTEST: ddthio Mike Fr man,Chair Weld County Clerk to the Board ��� B( M� ` Per L.Buc Pro-Tem--ATZEt lielh-LIST-C-k_Deputy Clerk to the Board /r"*'+ /- ott K.James A VED A 'RM: n D.Ross 361 County A torney � (S) ��.ri Saine Date of signature: ` I ce:FI /cP/so) cT(cD) 2023-3613 CFt(as/KM),rj5R(BD) FI0078 l2/2S/23 BC0057 CO*ac`F( k-7(D(O3 BOARD OF COUNTY COMMISSIONERS PASS-AROUND REVIEW PASS-AROUND TITLE:Amendment To and Extension Of Martingale Professional Services Contract DEPARTMENT:Finance DATE: 11/30/23 PERSON REQUESTING: Cheryl Pattelli Brief description of the problem/issue: Martingale is a firm that audits our oil and gas companies to ensure they are paying the proper amount of taxes.We have contracted with Martingale since 2012 and pay Martindale a fee based on hours.Any amount Martindale recovers goes into an escrow account to be distributed to all taxing entities throughout Weld County. All contract costs,along with indirect costs for the Assessor to manage the process,reduce the Q amount to be distributed so all entities pay a prorated portion of the contract costs. F�` he amount paid to Martingale the last three years(2021-2023) totaled$371,055 and the amount of revenue collected by Martingale totaled$11.6 million over the same time period. What options exist for the Board? - Sign the contract amendment - Do not sign the contract amendment Consequences: If the contract is not signed Martingale will not perform their audit services. That would most likely result in a significant amount of revenue for the taxing entities,including Weld County. Impacts: Costs(Current Fiscal Year/Ongoing or Subsequent Fiscal Years): See Exhibit A of the contract.Total costs are approximately$150,000/year. Recommendation: Staff recommend that the Board approve putting the amendment with Martingale on the BOCC agenda and then approve the amendment with Martingale. Support Recommendation Schedule Place on BOCC Agenda Work Session Other/Comments: Perry L.Buck,Pro-Tem ri Mike Freeman,Chair Scott K.James =' Kevin D.Ross Lori Saine `" Z 2023-3613 F(001% (ZA k eC005-7 AMENDMENT TO PURCHASE OF PROFESSIONAL SERVICES AGREEMENT OIL AND GAS AUDITS AND EVALUATION SERVICES This AMENDED PURCHASE OF PROFESSIONAL SERVICES AGREEMENT("Agreement")is made this 21st day of November 2023,by and between County of Weld,a body politic and corporate of the State of Colorado,by and through the Board of County Commissioners of the County of Weld whose address or principal place of business is 1150"O"Street,Greeley, Colorado 80631, and on behalf of the Weld County Assessor, (hereinafter"BOCC"), and Martindale Consultants,Inc.an Oklahoma corporation whose principal office is located at 4100 Perimeter Center Drive,Suite 300,Oklahoma City,Oklahoma 73112,registered in the State of Colorado,with a registered agent,InCorp Services,Inc.,located at 36 South 18th Street,Brighton, Colorado 80601,and with Colorado offices located at 4581 Julian,Denver,Colorado 80211, (hereinafter Contractor"). WHEREAS,on the 3rd day of December,2012,BOCC entered into an Agreement with Contractor to provide professional audit services to assist the Weld County Assessor in the evaluation of appeals of the ad valorem assessments on oil and gas production and on the personal property used in the production process made by made by oil and gas production operators,and WHEREAS,the said agreement has been amended ten times to extend the Agreement to December 31,2024,and WHEREAS,BOCC has now determined that additional professional audit and consulting services would continue to assist the Weld County Finance Department in the evaluation of the accuracy of the records of royalty payments made to Weld County,and WHEREAS,BOCC has determined that additional professional audit and consulting services would also continue to assist the Weld County Assessor in the evaluation and assessment of oil and gas production for as valorem tax purposes,and WHEREAS,Contractor has the expertise to perform the audits required,to provide the consulting services,has the time available to timely perform those services,and is willing to perform the services according to the terms of this Agreement and in accordance with the applicable policies of BOCC and the Weld County Assessor,and WHEREAS,BOCC has authority to acquire the services described in this Agreement pursuant to the provisions of§30-11-101,et seq.,C.R.S.,as amended,and. WHEREAS,the Weld County Assessor wishes to and has authority to acquire the services of a Contractor to assist it in the examination and analysis of the records of the operator(s)of oil and gas leaseholds as described in this Agreement pursuant to the provisions§39-5-120,§39- 21-109 and§39-7-105,et seq.,C.R.S.,as amended,and WHEREAS,BOCC and Contractor now wish to amend the term of the Agreements of December 3,2012,and include the new schedule of fees to be charged during the extended term, attached as Exhibit A,and oar— 6/3 WHEREAS,BOCC and Contractor now wish to amend the term of the Agreements of December 3,2012,paragraph 3d.to modify the not to exceed amount for this contract from $1,330,000.00 to$1,480,000.00,an increase of$150,000.00.This increase is in order to continue utilizing the services under this contract after the$1,330,000.00 amount has been reached. NOW,THEREFORE,in consideration of the mutual covenants and agreements set forth hereinafter,BOCC and Contractor agree as follows: Term of Agreement:Services of the Contractor shall continue to commence on the 21st day of November 2023,and shall be completed by the 31st of December 2024,and the not to exceed amount found in paragraph 3d of the December 3,2012 agreement is increased to $1,480,000.00.This Agreement will terminate on the date set forth above unless renewed in writing at least thirty(30)days prior to the date of completion. The attached Exhibit A shall be the schedule of fees charged during this extended term. All other terms and conditions of the agreement remain the same. IN WITNESS WHEREOF,BOCC and Contractor have set their hands and seals. CONTRACTOR: ATTEST: Martindale Consultants,Inc. (an Oklaho a Co or ' By: Todd J.Attalla- is- esident ATTEST: v^/jell,vk BOARD OF COUNTY COMMISSIONERS Weld .0 ty Clerk to e Board WELD COUNTY,COLORADO BY: /_r.�ti/ir�►1 r% '` ✓ _ Deputy Clerk tot �:o�•�„ Mike Freeman,Chair I�, 4��.����,,_ fl DEC 1 1 2023 -kt't APPROVED AS TO SUBSTANCE: li x(2111 ion c� Elected Official or Department 020,,5 56/5 EXHIBIT A Weld County Contract Period:2024 Hourly Rate Amendment Staff Hourly Rates Executive Management $200.00-$225.00 Project Manager $140.00-$175.00 Experienced Project Lead $125.00-$150.00 Assisting Staff(based on $115.00-$135.00 experience level) Other Support Staff $60.00-$125.00 Contract Form Entity Information Entity Name* Entity ID* O New Entity? MARTINDALE CONSULTANTS INC @00032711 Contract Name" Contract ID Parent Contract ID AMENDMENT TO PURPOSE PROFESSIONAL SERVICES 7663 AGREEMENT OIL AND GAS AUDITS AND EVALUATION Contract Lead* Requires Board Approval SERVICES CPATTELLI YES Contract Status Contract Lead Email Department Project# CTB REVIEW cpattelli@co.weld.co.us Contract Description* AMENDMENT TO MARTINGALE PROFESSIONAL SERVICES AGREEMENT FOR OIL AND GAS AUDIT AND EVALUATION SERVICES Contract Description 2 Contract Type" Department Requested BOCC Agenda Due Date AMENDMENT FINANCE Date* 12/02/2023 12/06/2023 Amount* Department Email $150,000.00 CM- Will a work session with BOCC be required?* Finance@weldgov.com NO Renewable* YES Department Head Email Does Contract require Purchasing Dept.to be CM-Finance- included? Automatic Renewal DeptHead@weldgov.com Grant County Attorney GENERAL COUNTY ATTORNEY EMAIL IGA County Attorney Email CM- COUNTYATTORNEY@WEL EY@WEL DGOV.COM If this is a renewal enter previous Contract ID If this is part of a MSA enter MSA Contract ID Note:the Previous Contract Number and Master Services Agreement Number should be left blank if those contracts are not in OnBase Contract Dates Effective Date Review Date* Renewal Date* 12/04/2023 12/31/2024 Termination Notice Period Committed Delivery Date Expiration Date Contact Information Contact Info Contact Name Contact Type Contact Email Contact Phone 1 Contact Phone 2 Purchasing Purchasing Approver Purchasing Approved Date Approval Process Department Head Finance Approver Legal Counsel CHERYL PATTELLI CHERYL PATTELLI MATTHEW CONROY DH Approved Date Finance Approved Date Legal Counsel Approved Date 12/04/2023 12/04/2023 12/04/2023 Final Approval BOCC Approved Tyler Ref# AG 121123 BOCC Signed Date Originator CPATTELLI BOCC Agenda Date 12/11/2023 Hello