(14)AR 082107 Citygate Associates LLC

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ITEM #14 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF AUGUST 21, 2007 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DILU DE ALWIS, FINANCE DIRECTOR SUBJECT: Approve Contract with Citygate Associates LLC to conduct a Citywide Management Audit and Analysis of the City of Colton. DATE: January 25, 2007 BACKGROUND: In a memo dated September 3, 2006, the City Manager stated that the "best way to scrutinize organizational efficiency, to evaluate the fitness of existing policies and procedures, and to rigorously test the organization's existing internal controls is to subject the organization to a management audit performed by an external management consultant whose specialty is auditing local government agencies. " DISCUSSION/ANALYSIS: Diligent effort was made to solicit competitive proposals from qualified contractors to conduct an Organization Wide Management Audit / Audit for Ethical and Efficient Operations. On March 6t', 2007, Request for Proposal RFP -JS -07018 was distributed to 154 potential bidders via the City's online bidding system: www.TheNetworkBidSystem.com. Due to the complexity of the RFP, electronic proposals were not accepted. The online bidding system was only utilized as a notification tool to expedite the RFP notification process, delivering access to complete bid documents to the potential bidders instantly. Additional clarification resulting from questions submitted by potential bidders was provided in an addendum and emailed to all 154 potential bidders on 3/13/07. Staff obtained formal, sealed responses on March 21, 2007 from: 1. Citygate Associtates, LLC $139,950.00 2. RNR Consulting $71,456.70 The bid abstract is attached. Proposals from both companies were evaluated based on the criteria listed in the RFP, including Quality of Workplan/Methodology, Ability to Perform, and Overall Cost. Citygate Associtates, LLC scored the highest and was invited to participate in a comprehensive face-to-face discussion to provide additional information/clarification. Citygate was allotted 20 minutes for a general proposal overview before addressing specific questions regarding the firm's methods of conducting the diagnostic review that will assess the condition of each functional area against evaluative criteria or expected business practice.