CITY COUNCIL: Professional Services Agreement for Financial Statement Auditing Services to Marcello & Company CPAs

Meeting Date: June 3, 2008
Prepared by: Joyce Giuffre,
Admin Svcs Director

City Council
Agenda Item Summary

Name: Consideration of a Resolution awarding a professional services agreement for
financial statement auditing services to Marcello & Company CPAs for fiscal years
2007-08, 2008-09, and 2009-10 in an amount not to exceed $25,000 for 2007-08, $26,500 for 2008-09, and $28,000 for 2009-10.

Description: The City’s most recently contracted with Nicholson & Olson for financial
statement auditing services. The CPA firm provided auditing services for three fiscal years ending with FY 2006-07. In March 2008, requests for proposals (RFPs) were circulated to provide auditing services for three years beginning with fiscal year 2007-08. RFPs were sent to five auditing firms. Three firms responded with a proposal; two firms declined, based on their current workload.

Below is a summary of the proposals received:
FY 2007-08 FY 2008-09 FY 2009-10
BBR LLP, Carmel-by-the-Sea $37,000 $38,110 $39,254
Hayashi & Wayland, Salinas $51,700-$61,400 $52,000-$62,000 $54,600-$65,100
Marcello & Company, Roseville $25,000 $26,500 $28,000

Overall Cost:
City Funds: $79,500 for all three fiscal years (lowest priced proposal)
To be funded from Administrative Services Department account 01-67400

Staff Recommendation: Adopt a Resolution awarding the financial statement auditing
services contract for fiscal years 2007-08, 2008-09, and 2009-10 to Marcello & Company in amounts not to exceed $79,500.

Marcello & Company’s principal auditors are Ralph Marcello and James Gozzo, both of
whom previously worked for Nicholson & Olson. Marcello and Gozzo have extensive
experience auditing local governments and special districts. A description of the firm’s qualifications and experience and list of references is found on Exhibit A.
Staff recommends awarding the contract to Marcello & Company because of the firm’s
auditing experience and because it submitted the lowest priced proposal.

Reviewed By:


______________________________ ______________________
Rich Guillen, City Administrator Date


CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
RESOLUTION NO. 2008 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AWARDING A PROFESSIONAL SERVICES AGREEMENT FOR FINANCIAL STATEMENT AUDITING SERVICES TO MARCELLO & COMPANY FOR FISCAL YEARS 2007-08, 2008-09 AND 2009-10 IN AN AMOUNT NOT TO EXCEED $25,000 FOR 2007-08, $26,500 FOR 2008-09, and $28,000 FOR 2009-10.
________________________________________________________________________
WHEREAS, on March 14, 2008, a request for proposals for financial statement audit services was circulated among five CPA firms; and

WHEREAS, the lowest complete, responsible proposal which met all proposal
qualifications was Marcello & Company at a price of $25,000 for Fiscal Year 2007-08,
$26,500 for Fiscal Year 2008-09, and $28,000 for Fiscal Year 2009-10.

NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA DOES:

1. Award the bid for the financial statement auditing services for Fiscal Years 2007-08, 2008-09, and 2009-10 to Marcello & Company in amounts not to exceed $25,000 for Fiscal Year 2007-08, $26,500 for Fiscal Year 2008-09, and $28,000 for Fiscal Year 2009-10.
2. Authorize the City Administrator to sign the contract agreement.

3. Authorize staff to expend funds from account 01-67400, as necessary, for progress payments.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 3rd day of June 2008, by the following roll call vote:

AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:

SIGNED,

_____________________________
Heidi Burch
City Clerk

ATTEST:

_________________________
SUE McCLOUD, MAYOR