HomeMy WebLinkAboutAgenda Packet 3.B 05/02/2011� 51,
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DATE:
TO:
FROM:
e
May 2, 2011
Honorable Mayor and Members of the•City Council through City Manager
Susan Mahoney, Interim Finance Director
SUBJECT: Resolution; Authorizing the City Managerto: Enter into a Professional Services
Agreement with Maze and Associates to Provide Audit Services to the City for
the Fiscal Year'Ending June 3,0' with Two Potential One -Year Renewals
RECOMMENDATION
It is recommended that.the City Council adopt'the attached 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 year ending June 30, 2011 with two potential
one -year renewals.
BACKGROUND
The City is required to have an annual financial audit performed by an independent outside
accounting firm. The firm of�Caporicc & Larson, Inc. has been the City's auditor since 2004.
Their five year contract expired in 2009 and was extended .for two 'years. A Request for Proposal
for audit services was issued,:ih February 2011, and `inxesponse, five proposals were received.
The agreement proposed will use the City's standard Professional Services Agreement, with any
modifications to the standard form subj ect - to the approval: of'the City Manager and City
Attorney. Services for fiscal year:ending June 30 20`11 will be provided at an amount. not to
exceed $64,950. If the City decides to renew for one ,or more years, services for the fiscal year
ending June 30, 2012 will not :exceed $65 and services for the fiscal year ending June 30,
201'3 will not exceed $66 totaling a three year not -to- exceed amount of $197,795.
. DISCUSSION
The audit proposals were received on March 31, 20,1 L An evaluation was conducted by
department staff based on the following ;point system: understanding of the work to be performed
(20 points); experience auditing local governments (30 points); qualifications of partners,
managers, and staff (20 points); additional information (110 point -0; and, cost (20 points).
Based on the selection criteria and the evaluation provided by department staff, the firm of Maze
Associates received the Highest number of points. In particular, Maze and Associates scored
well for'their depth of experience in providing service - to local, government agencies.
Agenda Review:
City Attorney Finariee Director City Manager
FINANCIAL IMPACTS
The not -to- exceed cost for the fiscal year.ending June 30, 2011 is $64 This is 7 % less than
the cost, of the audit for the fiscal year ending June 30, 20,10. - Ifthe City decides to renew for
two years, services for all three years will not exceed $197,795.
ATTACHMENTS
1. Resolution
Exhibit A to the Resolution: Sealed Cost Proposal (Scope of Services)
ATTACHMENT 1
RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT WITH JMAZE AND ASSOCIATES TO
PROVIDE AUDIT ;SERVICES' TO THE
CITY OF PETALUMA FOR THE FISCAL YEARENDING JUNE 30, 2011. WITH TWO
POTENTIAL ONE YEAR RENEWALS
WHEREAS, the City has solicited bids from various audit firms to provide audit services
for the City of Petaluma;, and
WHEREAS, the Cityhas received proposals from five audit firms; and
WHEREAS, the City has `evaluated the•proposals and selected Maze and Associates as
the contract awardee.
NOW, THEREFORE BE IT RESOLVED that the City .Council authorizes the City
Manager to enter into a City of Petaluma Professional. Services Agreement acceptable to the City
Manager and City Attomey with Maze and Associate§ to provide audit, services, pursuant to the
scope of services provided by Maze and Associates attached as.Exhibit A to this resolution and
incorporated herein, for the City fiscal year ending June 30, 2011 in an amount not to exceed
$64,950; and for-two renewal periods in the City's sole discretion, not to exceed $65;927 for the
fiscal year ending June 30, 20f2 and $66;918 for the fiscal year ending June 30; 2013..
1633908.1
EXHIBIT A
SEALED COST PROPOSAL
FOR THE
CITY OF PETALUMA.
MARCH 31,2011
Submitted By
'MAZE &.ASSOCIATES
3478 Busldrk Avenue, Suite 215
Pleasant MU CA94523
(925 ) 9304902
Contact Persons
Katherine Yuen — e-mail address = katl eriuey@mazeassoc ates.com
Cory Biggs •e-mail address — coryb @u azeassociates.com
4.
PROPOSAL COSTS
Certification
Katherine Yuen and Cozy:Biggs are authorized to submit this proposal and'negotiate and sign a contract with
the City of Petaluma. Our offer is firm and irrevocable for a period of 60 days from the date of this proposal.
Total Cost of Audit
Our Total. Ali- inclusive Maximum,Price for the services specified in: the RFP for the fiscal years ending.June
30, 2011 through 2013 are in this section. Our Total, All - inclusive Maxirnum Prices for the services specified
in'the RFP, are firm fixed, fees.
Additional Services
Any additional services will be performed, and, billed only on the .City's prior authorization at our standard
billing rates.
What Our Price Includes
Our price includes all the basic audit work, and reports, statements and other 'deliverables specked in your
request for proposal. Our price also includes the items below at;no�additional cost:
1) year -round support and telephone consultation on pertinent issues affecting your City, (10 hours max.)
2) copies of our journal entries and our l eadsh eets used to support the amounts in your financial
statements,
3) a Study Session for the Board to discuss the audit process, financial ."statements and recommendations,
4) active Principal involvement in your work every. year,
5) our typed Interim Audit "Checklist,
6) our typed Annual Closin -Chid list,
7) our typed interim. Accounting Issues Memorandum,.
8) preliminary draft financial,statements at�interim,r
9) answers to most municipal,payroll'tax questions,
10) Pivot table analysis.tools,'' the current; and prior years
11) Overviews and summaries of upcoming pronouncements and regulation affecting the audited financial
statements.,.
12) Direct dump of general ledger data into our prosytern trial balance software which is fully linked to
financial statement formats.
3,
Fees and Billings
Our fees are on a not- to- exceed_basis.. - In determining-our fees we understand that4he City's records will e in
condition to be audited, that is, transactions will "be properly recorded in the general ledger and subsidiary
records, these accountingrecords and the original source documents will bexeadilyavailable to use, we will be
furnished with copies of bank reconciliations and other reconciliations and 'analyses prepared by the City and
City personnel will be reasonably available to explain procedures, prepare audit correspondence and obtain files
and records.
We do not, post °separate rate structures for: municipal audit work. We view, this work as being every bit
as;important and'vaivable as the work*e perform for +other clients and we put-our best people on it. Any
consulting work you request willbe performed at the same rates as, our, audit work.
Cost Rationale
We have always completed :our: work in the time budgeted and. for the agreed upon fee. Vile have never
requested additional fees after- our work was completed. A:s 'always, We-finish what we start, regardless of the
accuracy of our budgets.
CITY OF'PETAIUMA
SCHEDULE OF'PROFESSIONAL FEES AND EXPENSES
FOR THE AUDITS OF THE FINANCIAL STATENE. NTS FOR THE YEARS ENDED JUNE 30:
Comprehensive Annual Financial Report
& Management Letter:
Partners
Director
Supervisor
Hourly Totals (2)
flours (3 ) , Rates 2011 2012 2013
41.00
8.00
127.00
Associates 190.00
Administrative, Staff 9.00
Total Comprehensive Annual financial Report 375.00
Additional Reports:
$12,300
Petaluma Community Development
$12,672
Commission
55.00.
Single Audit (Per tested program)
47.00
Appropriations Limit
6.00
State Controller'siOffce Reports
46.00
Transportation Devet.opment Act
28.00
Out -of- pocket expenses (1)
16,638
Total all - inclusive maximum price:
557.00
$300
$12,300
$12,485
$12,672
150
1,200
1,218
1,236
120
15,240
15,469
15
85
.16,150
16,392
16,638
65
585
594
603
45,475
46,158
46,850
5,990
.6,080
6,172
4;810
4,883
4,957
760
772
784
5
5;278
5,357
2,715
2,756
2,797
$64,9.50
$65,927
$66
NOTES:
Out- of-pocket expenses are,' ncluded,im bur standard hourly'rate:
(2) Our policy is to attempt to keep: our clients fees constant after'inflation. Therefore, thefees`for years subsequent
to 201,1 have been adjusted for the2010 CP of 1.5 % for the Services Sector of the U:S.:Department of
Labor, Bureau of Labor Sfatistics. for the�San Francisco- Oakland,Area.
(3) 'Estimated hours are expected - to remain constant for the three years.
1
CITY•OF PETALUMA
SCIIEDULE OF PROFESSIONAL FEES AND. EXPENSES,
SUPPORTING SCHEDULE FOR THE YEARS ENDED JUNE 30:
PETALUMA COMMUNITY DEVELOPMENT. COMMISSION
.Partners
Supervisor
Associates
Administrative Staff
Totat for this Report
Hourly
Totals
flours
Rates .
2011
2012
2013
5.00
$300
$1,500
$1,523
$1,546
8.00
120
.960
974
989
40.00
85
3,400
3,45
3,503
2.00
65
130
132
134
.55.00.
$5;990
$6;080
$6,1;72
CITY OF PETALUMA
SCHEDULE OF'PROFFSSIONAL FEES AND EXPENSES
SUPPORTING SCHEDULE FOR THE
SINGLE AUDIT
Partners
Supervisor
Staff
Administrative Staff
Total for this Report
a
Hourly
Totals.
Hours
-Rates
2011
2012
2013
3.00
$30.0
$900
$914
$928
6.00
120
720
731
742
36.00
85
3,060
3,106
3,153
2.00
65
130
132
134
47:00
$4,810
V03
$4,957
a
CITY OF PETALUMA.
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCHEDULE' FOR THE YEARS ENDED JUNE 30:
APPROPRIATIONS LIMIT
Partners
Supervisor
Associates
Total for this Report
Hourly
Totals
Hours
Rates
2011
201.2
2013
1.00
$300
$300
$305
$310
1.00
120
120
122
124
4.00
85
340
345
350
6.06
$760
$772
$784
CITY OF PETALUMA
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
SUPPORTING SCHEDULE F4.RTHE YEARS ENDED JUNE 30'.
STATE CONTROLLER'S OFFICE REPORTS'
Partners
Associates
Total for this Report
it
Dourly
Totals
Hours
Rates
2011
2012
2013
6.00
$300
$t,$00
$1;827
$1,854
4000
85
3
3,451
3,50.3
46.00
$5,200
$5
$5,357
it
CITY OF'PETALUMA
SCHEDULE OF PROFESSIONAL FEES AND.EXPENSES
SUPPORTING SCHEDULE FOR THE YEARS ENDER JUNE 30.:
TRANSPORTATION DEVELOPMENT ACT
Hourly
Totals
Hours
Rates
2011
2012
201.3
Partners
1.00
5300
$300
$305
$310
Supervisor
4.00
120
480
487
494
Associates
22.00
85
1,870
1,898
1,926
Administrative Staff
3.00
65
65
_ .66
Total' for this Report
28.00
$2
$2,756
"$2,797