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HomeMy WebLinkAboutStaff Report 3.C 12/02/2013 A, Itww#3 .0 ,Sp'LU:yf 11,41 ao 4a5a DATE: December 2,2013 TO: Honorable Mayor_and;-Members of the City Council through City Manager FROM: William MUshallo,;Finance Director O SUBJECT: Resolution Authorizing the City Manager to Enter into Professional Services Agreement with Maze and Associates to Provide Audit Services to the City for Fiscal Years.2013,2014 and 2015. RECOMMENDATION It is recommended that the City(Council adopt the.attached`Resolution authorizing the City Manager to enter into &professional services agreement with Maze and Associates to provide audit services to the City ofPetaitima,for the Fiscal years ending June 30, 2013, 2014 and 2015. BACKGROUND The City is required to have an annualfinancial audit performed by an;independent outside accounting firm. The firm of Maze and Associates has been the City's auditing firm since 2011. Before hiring Maze and-Associates, a request for proposals for,audit services was conducted in February, 2011. Based on the selection,criteria, and the evaluation provided by department staff, Maze and Associates received the highest number of points. In particular, Maze and Associates scored well for their depth of experience in providing audit services to local government agencies. The agreement entered into with Maze and Associates in2011 was for them to provide auditing:services:for one year,with two potential one-year.renewals.. DISCUSSION This would.be the third year Maze and Associates is providing audit services tothe City. In exchange for extendingthe/agreement through FY14 and FY15, Maze and associates is offering a$6,202 discount for the FY13 audit services. This discount would apply to both FY14 and FY15 The original agreement also included a provision for annual cost;escalators. These would be two (2) percent in each of FY14 and FY15. Extending the contract for two additional years provides continuity,and saves Finance staff time The expectation is to conduct an RFP for audit services in 2015. Agenda Revie : City Attorney Finance Directo City Manager a/ --- 1 The agreement proposed will use the City's standard Professional Services Agreement, with any modifications to the standard form subject to the approval of the City Manager. Services for the fiscal year ending June 30, 2013 will be provided at an amount not to exceed $73,420. Services for the fiscal year ending.June 30, 2014 will not exceed $74,887, and services for the fiscal year ending June 30, 2015 will not;exceed $76,385. FINANCIAL IMPACTS' The net financial savings of entering into this contract will be $6,202 for each of the three fiscal years (FY13, FY14, FY15) of the proposed contract Total audit services costs for FY13, FY14 and FYI5 will not exceed $73,420;.74;887 and $76,385 respectively. ATTACHMENTS 1. Resolution with Exhibit A (Maze and Associates Extension Attachment) 2 ATTACHMENT 1 RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES,AGREEMENT WITH MAZE AND ASSOCIATES TO PROVIDE AUDIT SERVICES TO THE CITY OF PETALUMA FOR THE FISCAL YEARS ENDING.JUNE 30, 2013; JUNE30; 2014; AND.JUNE'30, 2015 WHEREAS, the City,solicited bids from various audit firms in 2011 to provide audit services for the City of Petaluma;;and WHEREAS, Maze;and,Associates was selected as the top candidate during that process and has been providing audit services for the City of Petaluma for the past two years; and WHEREAS, Maze and Associates has performed timely work.in accordance with contract provisions; and WHEREAS, Maze and Associates has offered the City an annual,discount of$6,202.00 for continuing to provide audit services for FY13, FY14, and FY15 NOW, THEREFORE, BENT RESOLVED thatthe City Council authorizes the City Manager to enter into.a City of Petaluma Professional Services Agreement acceptable to the City Manager and City Attorney with Maze and Associates to provide audit services, pursuant to the audit services extension agreement included herein as Exhibit A, in an amount not to exceed $73,420 in FY13, $74;887 in FY14, and.$76,385 in.FY15. 3 • EXHIBIT A EXTENSION'A9"I'ACTIMENT October 21,2013 Rill Miishallo;Finance•Directoc' City of Petaluma,Finance Department 11.English Street Petaluma,CA 94952 Dear Bill: Pursuant to the City's recent request,coupled with the terms of the City's most recent Contract dated June 7, 2011 we no pleased toioffer to extend:Our audit contract to include,the fiscal years ended June:30,2013, 2014 and 2015,:at the following prices`. 2013 2014 2015 Comprehensive Annual Fiiiancial.Report $48,000 $48,960 $49,939 Single Audit Report(5 programs) 16;500 • 16,830 17;167 Appropriations Limit; 750, 765' 780 Annual Report of Financial Transactions:City 4;500. 4;590 4,682 Annual Report of Financial. Transactions: Transit Operators(2Reports) 870 887 905 TrarbpoititGOn Developmeii6A ct, 2,800„ 2,855^ 2,912 Total $73,420 $74,887. $76,385 Wehave adjusted our fen rusing a 2%increase. Please call me;if you have any questions. We look forward to continuing to improve out service to you Yours very truly, CV.— OrtgnotAtO Maze`&Associates RESPONSE: If your agree with the terms of this contract modification,please sign below and return a copy"to our office. By: Title: Date: *925 930 0002 Accountancy Corporation r,925 930 0135 3478 Buskirk Avenue;Sidle 215 e maze©mazeassoniates:corn Pleasant HHHI,CA'94523 w,mazeassociates:com. 4