HomeMy WebLinkAboutAgenda Report - April 1, 1998 (57)1
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CITY OF LODI COUNCIL COMMUNICATION
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AGENDA TITLE: Rejection of Proposals — Financial Audit Services
MEETING DATE: April 1,1998
PREPARED BY: Finance Director
RECOMMENDED ACTION: That the City Council rejects the Response to the Request for Proposal for
Audit Services and authorizes re -advertisement for bids.
BACKGROUND INFORMATION: The contract with KPMG Peat Marwick LLP, our current auditing firm,
has expired upon the completion of the audit of fiscal year ending June 30, 1997. The Council authorized
staff to go out for bid on February 18, 1998. On March 10, 1998, the City received two bids for the
Financial Audit.
Staff is recommending that the following bids for the Financial Audit Services be rejected and request that
the Council authorize re -advertising for bids:
Porter and Company, CPAs
Moss, Levy & Hartzheim
$46,240
$27,904
The first bidder does not meet the required deadline of the reporting requirements. The lack of other
proposals makes it difficult to assess the other one for the services and amount offered.
It would be in the best interest of the City to reopen the bids for more proposals in order to get comparable
or compatible bids with the incumbent auditing firm, preferably a firm that belongs to the "Big 6." A firm
that has exposure to the new Financial Systems (JD Edwards -World Vision) recently installed by the City
as stated in the Request for Proposal 98-01 is also preferred. It is essential that the City select a reputable
and renowned firm that has vast experience in governmental accounting in order to maintain the
creditworthiness of its financial reports.
FUNDING: Current Operating Budget
APPROVED:
H. Dixon'flynn -- City
anager
i.),,kos 71 t
Vicky Mac Athie
Finance Director
RESOLUTION NO. 98-52
A RESOLUTION OF THE LODI CITY COUNCIL REJECTING
THE REQUEST FOR PROPOSALS FOR FINANCIAL AUDIT
SERVICES, AND AUTHORIZING RE -ADVERTISEMENT
WHEREAS, the contract with KPMG Peat Marwick LLP, the City's current auditing firm,
expired upon the completion of the audit of fiscal year ending June 30, 1997; and
WHEREAS, on February 18, 1998 the City Council authorized staff to solicit proposals for
audit services for the 1997-1998 fiscal year; and
WHEREAS, on March 10, 1998, the City received two proposals for financial audit
services, they are as follows:
1. Porter and Company, CPAs $46,240
2. Moss, Levy & Hartzhelm $27,904
WHEREAS, the first proposal does not meet the required deadline of the reporting
requirements, and due to the lack of other proposals, it is difficult to assess the second proposal
for the services and amount offered; and -
WHEREAS, it is staff recommendation that the City Council reject the proposals received
and authorize re -advertisement.
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that the proposals
received for audit services for the 1997-1998 fiscal year are hereby rejected, and hereby
authorize staff to re -advertise Requests for Proposals.
Dated: April 1, 1998
I hereby certify that Resolution No. 98-52 was passed and adopted by the City Council of
the City of Lodi in a regular meeting held April 1, 1998 by the following vote:
AYES: Council Members - Johnson, Land, Mann, Pennino and Sieglock (Mayor)
NOES: Council Members - None
ABSENT: Council Members - None
ABSTAIN: Council Members - None
ALICE M. REIMCHE
City Clerk
98-52