HomeMy WebLinkAbout11/19/2003 - STAFF REPORTS (9) DATE: November 19, 2003
MEMO TO: City Council
FROM: Director of Finance & Treasurer
RE: Extension of Conrad &Associates, LLP contract for auditing services fortwo additional years.
RECOMMENDATION:
It is recommended that the City Council extend the Conrad and Associates LLP contract for outside
auditing services for Fiscal Years ending June 30, 2004 and June 30, 2005 at a maximum fee of
$69,432 and $65,904, respectively. All the other terms and conditions of the existing contract remain
in place.
SUMMARY:
Conrad was awarded the contract for the City's auditing services in May, 2001 for a 3-year period
The proposal from Conrad contained an option that, upon the recommendation of the Director of
Finance and City Manager and at a price acceptable to both the City and Conrad, the contract could
be extended for two additional years.
The proposed price for the Fiscal Year 2003-04 audit represents a 5.5% decrease compared to the
current year's cost. Conrad had originally requested a 2.5% increase, but eventually agreed to a
reduction in the cost of preparing the GASB 34 Schedules from $10,000 to $5,000, and only a 1.5%
increase in the rest of the services. The price for the Fiscal Year 2004-05 audit has no additional
percentage increases, and will be reduced because the audit costs for the Public Facilities
Corporation will have been eliminated.
BACKGROUND:
The CPA firm of Conrad and Associates has provided the City with audit services since 1986 The
current contract was approved in 2001 for 3 years, with the possibility of extending for an additional 2
years. Conrad was selected after an extensive Request for Proposal (RFP) process A total of 15
RFP's were sent out, and the City received 9 responses. The City's review team consisted of the
Director of Finance & Treasurer, the Procurement Manager, the former City Librarian, the City of La
Quinta Finance Director, and a former Mayor and CPA.
The City has had a very good working relationship with Conrad and Associates, as evidenced by the
13 consecutive years in which the City's Comprehensive Annual Financial Report (CAFR) received
both the Government Finance Officers Association's Certificate of Achievement for Excellence and
the California Society of Municipal Finance Officer's award for Outstanding Financial Reporting. We
look forward to a continuation of that relationship, and the maintenance and improvement of the
City's high standards for financial reporting.
Submitted by: Approved:
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Thomas M. Kanarr David H Ready
Director of Finance & Treasurer City Manager
Attachments: Exhibit C—Schedule of Compensation
Minute Order
Minute Order 6846 approving original contract
SECOND AMENDMENT TO CONTRACT SERVICES AGREEMENT
This Second Amendment to the Contract Services Agreement#4361 is made effective
as of November 19, 2003, by and between Conrad & Associates, LLP, a California
Limited Partnership ("Contractor') and the City of Palm Springs, a California municipal
corporation ("City"),
1.) On Recitals May 16, 2001, the Contractor and the City entered into a contract
services agreement for the performance of audit services for the fiscal years
ending June 30, 2001, 2002 and 2003
2.) Part of the proposal submitted by the Contractor was an option for audit
services for two additional years, subject to the recommendation of the
Director of Finance and the City Manager and the approval of City Council, at
a price acceptable to both the City and the Contractor
3.) On July 31, 2002, the First Amendment to the Contract extended the scope of
audit services to include the compilation and analysis of information required
by Government Accounting Standards Board bulletin 34 ("GASB 34"). The
work related to that project has been completed and paid for.
4.) The City and the Contractor now desire to extend the term of the contract to
include the fiscal years ending June 30, 2004 and June 30, 2005. The
Contract, unless further extended, would terminate June 30, 2006
5.) The cost of the audit services for the two fiscal years above are not to exceed
$69,432 and $65.904, respectively.
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
1.) Term. The term of the Contract Services Agreement is extended to June 30,
2006, to include audit services for the fiscal years ended June 30, 2004 and June
30, 2005.
2.) Exhibit C. Schedule of Compensation. The cost of audit services for the fiscal
years ended June 30, 2004 and June 30, 2005 shall not exceed $69,432 and
$65,904, respectively.
IN WITNESS WHEREOF, the parties have executed and entered into this Second
Amendment as of the date first written above.
CITY OF PALM SPRINGS, a municipal corporation
By:
City Manager
CONRAD & ASSOCIATES, LLP
By:
Name
Title
ATTEST
City Clerk
APPROVED AS TO FORM:
City Attorney
[END OF SIGNATURES]
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EXHIBIT C
SCHEDULE OF COMPENSATION
HOURLY RATES AND MAXIMUM FEE:
The following is a summary of the total cost (including expenses) of services to be rendered to the
City of Palm Springs for the fiscal years ended June 30, 2004 and 2005.
Estimated Not to Exceed Amount
Description of Services Hours 2,003 2004 2005
City Audit 276 18,925 $ 19,209 $ 19,209
CAFR Preparation 100 8,487 8,614 8,614
Redevelopment Agency Audit 100 8,487 8,614 8,614
Public Financing Authority 120 10,185 10,338 10,338
Public Facilities Corporation 24 2,037 2,068 -
FAA Grants 80 6,790 6,892 6,892
CDBG Grants 24 2,037 2,068 2,068
DOJ Grants 24 2,037 2,068 2,068
All other grants 16 1,358 1,378 1,378
GASB No. 34 Implementation 60 10,000 5,000 5,000
PFA State Controller's Report 14 1,189 1,207 1,207
PFC State Controller's Report 6 590 599 -
PFC Exempt Organ. Tax Returns 10 849 862 -
Gann Limit 6 509 517 517
Totals 860 S 73,480 $ 69,432 $ 65,904
The following is a summary of hourly rates in effect for services outside the scope
of the above fixed amounts:
Classification Hourly Rate Hourly Rate
Partner $ 190.00 $ 190.00 $ 190.00
Manager 115.00 115.00 115.00
Supervisor 100,00 100.00 100.00
Senior Accountant 85.00 85.00 85.00
Staff Accountant 75.00 75.00 75.00
Payment Schedule:
Contractor shall submit a monthly billing based on the percentage of audit work completed.
After approval of the City's Director of Finance, said invoice shall be paid within 30 days. The
final payment shall be held until the completion and delivery of all final reports and schedules.
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MINUTE ORDER NO.
AMENDING THE CONTRACT WITH CONRAD AND
ASSOCIATES TO PERFORM THE CITY'S JUNE 30, 2004 AND
JUNE 30, 2005 FINANCIAL AUDIT INCLUDING COMPILATION
AND PREPARATION OF THE COMPREHENSIVE ANNUAL
FINANCIAL REPORT AT A MAXIMUM FEE OF $69,432 AND
$65,904, RESPECTIVELY. ALL OTHER TERMS AND
CONDITIONS OF THE EXISTING CONTRACT REMAIN IN
PLACE.
I HEREBY CERTIFY that this Minute Order, amending the contract with Conrad
and Associates to perform the City's June 30, 2004 and June 30, 2005 Financial Audit
including compilation and preparation of the Comprehensive Annual Financial Report at a
maximum fee of$69,432 and $65,904, respectively was adopted by the City Council of
the City of Palm Springs, California in a meeting thereof held on the 19" day of
November, 2003. All other terms and conditions of the existing contract remain in place.
PATRICIA A. SANDERS
City Clerk