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Home My WebLink AboutAgenda Bill 5.D 05/17/20044 4 CITY O CALIFORNIA ' rd p 1� AGEN `i DA I Agenda Title Resolution. approving the selection of the City's Meeting Date: xtemal auditors, and authorizing the City Manager to draft and execute a formal agreement between the selected audit firm and the May 17, 2004 City for audit services for the fiscal year 2003 -2004, and the four Meeting Time ❑ 3:00 PM (4) subsequent years, which end 2007 -2008 ❑ 7 :00 PM Category (check one) ❑ Consent Calendar ❑ Public Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department Director kontact Person: Phone Number Finance Department Joseph D. e Ci'nde Rubaloff 778 -4357 Cost of Proposal $62,750 2003-2004 udit - Account Number various $261,700 04 -05, 05 -06, 06 -07, 07 -08 audits Name of Fund various Amount Budgeted NA Attachments to Agenda Packet Item Resolution Caporicci and Larson, Certified Public Accountants Technical,Proposal Caporicci and Larson, Certified Public. Accountants Scaled Dollar Cost Bid Caporicci and Larson, Certified Public Accountants Presentation of the Firm ummary Statement: he City of Petaluma solicited audit proposals from Certified Public Accountant firms to perform audit services for the fiscal year 2003 -2004, and the subsequent four (4) years, ending with fiscal year 2007- 2008. Based upon the rating of the. proposals received, interview evaluations, and reference checks, the staff identified, and recommends the firm of Caporicci and Larson, Certified Public Accountants. Staff's recommendation was presented to the City Manager and the Mayor, who concur with staff's recommendation. Recommended City Council Action /Suggested Motion Accept resolution approving the selection of'Caporicci and Larson, Certified Public Accountants, for the City of Petaluma's external auditors for fiscal year 2003 -2004, and for each of the four (4) subsequent years, ending with fiscal year 2007 -2008, and authorizing the City Manager to direct staff to draft a formal agreement, and authorize the City Manager to execute said agreement between Caporicci and Larson and the City of Petaluma for'the audit services. Revirwed by Finance'.Director: Reviewed by City Attorney Date: A roe i Manager: Date: Date: To ate: Revision # and -Date Revised: File Code: # s:\accountant \cinde \word \contracts \aauditagenda • • CITY OF PETALU•MA,, CALIFORNIA MAY 17, 2004 AGENDA REPORT FOR RESOLUTION APPROVING THE SELECTIOIN OF THE. CITY'S EXTERNAL AUDITORS, AND AUTHORIZING THE CITY'MANAGER TO' DRAFT AND EXECUTE A FORMAL AGREEMENT BETWEEN THE SELECTED AUDIT FIRM AND THE CITY FOR AUDIT SERVICES FOR THE FISCAL YEAR 2003 -2004 AND THE FOUR SUBSEQUENT YEARS, WHICH 'END 2007 -2008 EXECUTIVE SUMMARY The City of Petaluma "solicited audit proposals from Certified Public Accountant firms to perform audit services .for, the fiscal year 2003 - 2004, and the subsequent four (4) years, ending with fiscal year 2007 -2008. Based upon the rating of the proposals received, interview evaluations, and reference checks, the staff identified, and recommends the firm of Caporicci and Larson, Certified Public Accountants. Staff s recommendation was presented to the City Manager and the Mayor, who concur with staff's recommendation 2. BACKGROUND In accordance with Article V.- section 22 of the City of Petaluma''s Charter, "The mayor shall employ ... a certified public accountant, who shall examine the books, records and reports of the auditor and of all officers and employees who receive or disburse city moneys ... and the books, records and reports of such other officers and departments as the mayor may direct..." Since its inception, the Cityof Petaluma has commissioned.the completion of an audit of its books and records by a Certified- Tublic Account; in, accordance with its Charter. For the past forty (40) years,'the audit, has been completed. - by a local firm. This local firm, over the years, has changed ownership and principals. Approximately ten (10) years ago the firm was acquired by Pisenti and:B`rinker,. a Santa 'Rosa accounting firm. Following the completion of the fiscal year end audit of 2003, the former Finance Director, William Thomas, and.the Manager, Cinde Rubaloff, with concurrency from the City Manager Michael errnan, determined the need to solicit proposals for the City's annual audit, beginning with'fiscal year 2004. A request for proposal (RFP) was developed and mailed to , fourteen (14) firms, which specialize m municipal ipal audits. From the fourteen solicitations, the City received six (6) proposals. A proposal review was completed Eby the Interim Finance Director and the Accounting Manager, w ith a point,range and score given in the following categories: proposal quality, relevant experience, quality of personnel, municipal auditing experience, depth of resources, availability /en°gagement calendar arid, finally, cost. The results of the audit f rin proposal reviews were that out of the six (6) proposals reviewed, • two (2) proposals wererejected at the proposal evaluation stae. Four (4) firms were invited to interview and make. formal presentations to answer questions about the firm's proposal. Each firm was required to answer, a standard set of questions. Each interview was concluded with a closing statement by each `firm as to why Petaluma should select their firm to perform the City'.s audit. The interviewed firms were given a point score by each evaluator, which included the following key areas: . 1) overall proposal 2) municipal experience 'and,depth of resources 3) hours and cost 4) interview 5) reference checks As a result of the ratings, based upon. the proposals, interviews, and reference checks, staff identified, and recommends, the firm of Caporicci sand Larson, Certified Public Accountants, located in Oakland, California, as the highest scoring audit-, firm. Staff's recommendation is based upon the entire evaluation process and th`e "good ,business practice" theory to change auditors every five (5) years, including the following salient points of priority: I ) Bay Area firm with municipal. audit experience 2) Firm with great depth.of 3) Partner, Manager and Accounting team with extensive municipal experience and tenure with firm of no less than four (4) years; 4) Flexible schedule'for interim, field work sand final review 5) Reasonable cost, with an ,additional 20 hours of service at no cost The staff recommendation was submitted to the Mayor,. David Glass and the City Manager, Michael Bierman. Each component of - the staff evaluation was reviewed and evaluated by the Mayor and the City Manager -. Based upon his: evaluation, Mayor David Glass concurred with staff's recommendation, , and selected Caporicci and Larson as the City's auditors for fiscal year 2003 -2004, through fiscal year 2007 - 2008, a five (5)' "year commitment. Caporicci and Larson will'perform auditing'services for the Cityrof Petaluma, and related entities, including jhe Petaluma Community Development Commission (PCDC), as well as compl p ance re orts on Transportation,Development°Act the Single Audit, and the GANN appropriation review and calculations, for the fiscal year ending June 30, 2004, with an option to audit for :each of the four (4:) subsequent f sca years. 3. ALTERNATIVES Acknowledge Mayor's :selection, or have Mayor chooseuanother firm. 0 4. ' FINANCIAL IMPACTS The total cost (all - inclusive price) is as follows: Fiscal Year Total. Price % Increase 2004 $62,750 NA 2005 63,775 3.5% 2006 65,975 0% 2007 65,975 0% 2008 65.975 0% TOTAL $324 5. CONCLUSION It is recommended that the Mayor's selection of Caporicci and Larson, Certified Public Accountants, for the City of Petaluma's external auditors for the fiscal year 2003 -2004, and for each of the four (4) subsequent years ending with fiscal year 2007 -2008. 6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION Successful selection of auditors for fiscal year 2003 -2004 and timely execution of formal agreement between the City and the selected audit firm. 7. RECOMMENDATION It is recommended that the Mayor report out his determination and selection of Caporicci and Larson, Certified Public Accountants, for the City of Petaluma's external auditors for fiscal year 2003 -2004, and for each of the four subsequent years, ending with fiscal year 2007- 2008. It is recommended that the Mayor and City Council authorize the City Manager to direct staff to draft a formal agreement, and authorize the City Manager to execute said agreement, for and on behalf of the City of Petaluma. filename: s:\accountant \cinde \word \contracts\auditagenda.doc RESOLUTION No. N.C.S. of the City of Petaluma, California RESOLUTION APPROVING THE SELECTION OF THE CITY'S EXTERNAL AUDITORS, AND AUTHORIZING THE CITY MANAGER TO DRAFT AND EXECUTE A FORMAL AGREEMENT BETWEEN THE SELECTED AUDI' FIRM AND THE CITY FOR AUDIT SERVICES FOR 'THE FISCAL YEAR 2003 =2004, AND THE FOUR SUBSEQUENT YEARS, WHICH END, 2007 -2008 WHEREAS, the Finance'Department, in conjunction with the City Manager, determined that it was incumbent to request proposals for the City's external audit services for the fiscal year ending June 30, 2004, and the subsequent four (4) years, WHEREAS, Caporicci and Larson, Certified Public Accountants, received the highest rating during the RFP evaluation process, WHEREAS, the Mayor and the City Manager concurred with staff recommendation to select Caporicci and Larson, Certified Public Accountants, as the City's external auditors for the fiscal year ending June 30, 2004, and the subsequent four (4) years, NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the selection of Caporicci and Larson, Certified Public Accountants as the external auditors for the City for the fiscal year ending June'30 2004 and the subsequent four (4) years, and that the City Council authorizes the City Manager to direct staff to draft and execute a formal agreement with this firm, for audit services for the fiscal year, 2004 and the four (4) subsequent years.