CCP 11-27-2006 - Laserfiche WebLink

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.. ~ . ~HILLS J\U:MORANDUM DATE: Novcmber 27,2006 AGENDA ITEM 311 TO: Mayor and City Council FROM: Michellc Wolfe. City Administrator SlJBJECT: (I) Motion to contract with MMKR for Auditing Services as Outlined in thc Proposal from MMKR dated July 19,2006 and at the annual costs of$24,750, $25,500, $2(>,300 for thc years 2007,2008,2009. (2) Authorize the City Administrator to Executc the ,Annual Engagement Letter for said Serviccs for thc years ending 2006,2007, and 2008. BACKGROUND At the October 30 meeting, Council authorized staff to negotiate a contract with Malloy, . Montague, Kamowski, Radosevich and Co., P.A. (MMKR) as City Auditors, to provide Professional Auditing Services for thc Y cars Ending Decemher 31, 2006 (total cost not to exceed $24,750),2007, and 2008. Staffwas directcd to bring back a final action to fonnalize the contract ammgement with MMKR. DISCUSSION The typical process engaged by auditing firms is to forward a Letter of Engagement each year to authorizc the annual audit process (as opposed to a contract document). In their Technical Proposal for Professional Auditing Services,MMKR quoted a 11Ot-to-exceed maximum price for three years of auditing services. Thcrefore, at this time I am asking for Council to approvc a motion to contract with MMKR for auditing services for not-to-exceed costs as outlined in their proposal dated July 19,2006 and to further authorize the City Administrator to annually execute a letter of cngagement with MMKR. At the first meeting ofJanuary every year, thc City formally appoints various City scrvices such as City Attorney and City Auditor. Thcrefore, each ycar in January, Council will adopt a Resolution appointing MMKR as the City Auditor. Once that is approved, the City Administrator will execute the engagement letter. For the 200G audit, since MMKR will be conducting their first audit with Arden Hills, I proposc execution of the Engagement Letter after . formal action on Novcmber 27.