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<br />City of Colton
<br />AGENDA REPORT
<br />FOR COUNCIL MEETING OF APRI� 1 1AA7
<br />TO: HON�RABLE MAYOR AND CITY COUNCIL
<br />APPROVAL: MALIK D. FREEMAN, CITY MANAGE���... l`�.►� �-
<br />FROM: ANNA A. VEGA, FINANCE DIRECTOR ,,..,.. ��--�'
<br />SUBJECT: AWARD CONTRACT TO LANCE, SOLL & LUNGHARD IN THE AMOUNT OF
<br />$47,620 FOR PROFESSIONAL AUDITING SERVICES FOR A THREE YEAR
<br />PERIOD, COMMENCING WITH FISCAL YEAR ENDING JUNE, 1997.
<br />DATE: MARCH 26, 1997
<br />BACKGROUND
<br />Mpreland and Associates has provided audit services to the City and Redevelopment Agency for the past two fiscal
<br />years. The original bid for audit services in fiscal year 1994-95 was $42,000. Due to the complexity and financial
<br />position of the city, an additional $22,800 was paid for a total of $64,800 for fiscal year 1994-95 audit services. The
<br />1995-96 fiscal year audit fees were $52,500.
<br />Staff solicited proposals in order to compare the services, timelines and fees. Five proposals were received on
<br />March 17, 1997 from Conrad & Associates; Lance, Soll & Lunghard; Rogers, Anderson, Malody & Scott (R.A.M.S.);
<br />Thomas, Bigbie & Smith and Vavernick, Trine, Day & Company.
<br />DISCUSSION/ANALYSIS
<br />Upon receipt of the proposals, staff called a few references of from each of the audit firms. Good reviews were
<br />received from the other agencies with regards to the services provided by the audit firms. Staff analyzed the
<br />comments and fees in order to determine what would be best for the City of Colton. The proposals are as follow
<br />(Redevelopment Agency under separate report): R.A.M.S_ $29,400
<br />Lance, Soll & Lunghard 47,620
<br />Conrad & Associates 48,380
<br />Vavernick, Trine, Day 50,345
<br />Thomas, Bigbie & Smith 56,550
<br />Taking the average hourly rate of all five audit firms, R.A.M.S. average hourly rate is higher and would potentially
<br />result in higher costs if additional audit services were necessary. Their average hourly rate is $74 compared to $63
<br />from Lance, Soll & Lunghartl. Therefore, staff is not recommending the lowest bidder.
<br />FINANCIAL IMPACT
<br />Funds will be budgeted in the 1997-98 fiscal year within the respective funds. Annual savings to the City will be
<br />$4,880 for the 1996-97 fiscal year audit.
<br />ALTERNATIVES
<br />As previously stated, the audit firms received good reviews from each respective City who receives their services.
<br />Therefore, the City Council has the option of awarding the contract to any one of the five firms which proposals have
<br />been received.
<br />A second alternative would be to renew the contract with Moreland and Associates provided they negotiate a
<br />decrease in audit services fees for the 1996-97 fiscal year.
<br />RECOMMENDATION
<br />Staff recommends that the City Council authorize the City Manger to enter into a contract with Lance, Soll &
<br />Lunghard in the amouni of $47,620 for the 1996-97 fiscal year audit services. Additional authorization be granted to `
<br />renew the contract for fiscal years 1997-98 and 1998-99 with mutual consent of the City and the Lance, Soll &
<br />Lunghard.
<br />Attachments: Lance, Soll & Lunghard proposal
<br />Audit costs comparison spreadsheet
<br />' Item No. 8
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