HomeMy WebLinkAbout03-19-2019 Item 09 - RFP for Audit Services Department Name: Finance
Cost Center: 2006
For Agenda of: March 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Brigitte Elke, Finance Director
Prepared By: Debbie Malicoat, Sr. Administrative Analyst
SUBJECT: REQUEST FOR PROPOSALS FOR AUDITING SERVICES
RECOMMENDATION
Authorize issuing a request for proposals for auditing services.
DISCUSSION
Background
Section 810 of the City Charter requires an annual audit of the City’s financial statement by an
independent certified public accountant. In 2011, the Council entered into a multi-year contract for
auditing services with Glenn Burdette, Certified Public Accountants. While their services have
been outstanding, the contract has expired. As such, staff is recommending issuing a formal request
for proposals (RFP) so the City can be assured of receiving quality professional services at the best
competitive terms and conditions.
Key elements of the work scope and selection process include:
Scope of Services. Audit work will include:
1. City basic financial statements.
2. Single Audit Act financial and compliance reports.
3. Transportation Development Act (TDA) financial and compliance report.
4. Whale Rock Commission annual financial statements.
Contract Term. The RFP provides for a five-year term with an option to renew for an additional
three years. The Government Finance Officers Association of the United States and Canada
(GFOA) has recommended a five-year term for auditing services as a best practice. This helps
ensure consistency and minimizes start-up cost for both the City and the auditor.
Local Government Expertise. The successful proposer will have demonstrated expertise in
performing local government audits in accordance with generally accepted accounting principles
and auditing standards as well as guidelines set forth in the Certificate of Excellence in Financial
Reporting program of the GFOA.
Packet Pg. 53
Item 9
Staff Resources. Most California cities and other government agencies end their fiscal year on
June 30th, which results in all of them requiring audit services at the same time. The City will be
looking for assurances that the successful firm has the trained resources available to service the City
during this critical time period.
Review Process. All proposals will be received electronically via e-mail and reviewed and rated by
a special Review Committee composed of the Director of Finance, Accounting Manager/Controller,
Senior Accountant, Public Works Senior Administrative Analyst, and Utilities Senior
Administrative Analyst.
The proposals will be rated based on experience and expertise, approach to completing the work,
their understanding of the work scope and proposed compensation. In short, contract award will not
be based solely on price, but on a combination of factors in determining the best overall proposal.
Schedule. The following summarizes the proposed selection process schedule:
Task Date
Issue RFP for audit services 3-20-19
Complete proposal evaluation 4-19-19
Conduct finalist interviews, if required 4-26-19
Recommend contract award to the Council 5-21-19
Policy Context
Section 810 of the City Charter requires an annual audit of the City’s financial statement by an
independent certified public accountant. The City’s purchasing policy supports periodic review of
contractual relationships to ensure the best use of public funds.
Public Engagement
The results of the audit will be presented annually to the City Council in a public meeting.
CONCURRENCE
This request is supported by the City’s Charter that requires the City’s audit be done by an
independent certified public accountant.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
Packet Pg. 54
Item 9
FISCAL IMPACT
Budgeted: Yes Budget Year: Annually
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $71,000 $75,000 $375,000
State
Federal
Fees
Other: Transit and
Whale Rock Reservoir
TBD TBD
Total $71,000 $75,000 $375,000
The current contract for auditing services is $70,450 and it is anticipated that future auditing
services costs will be relatively consistent. The RFP requests the cost for the Whale Rock and TDA
audit to be quoted separately for direct cost allocation.
ALTERNATIVES
Renegotiate the Existing Contract. Although staff is satisfied with the services provided by the
current auditor, this alternative is not recommended at this time. It is prudent for the City to
periodically seek formal audit proposals in order to ensure competitive pricing and services.
Attachments:
a - Auditing Services
Packet Pg. 55
Item 9
The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Proposals for Consultant Services for
AUDITING SERVICES
The City of San Luis Obispo is requesting sealed proposals for auditing services.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app-
web/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of
Finance at or before 2:00 p.m. on April 12, 2019 when they will be opened publicly in the City Hall
Conference Hearing Room, 990 Palm Street, San Luis Obispo, CA 93401.
Proposals received after said time will not be considered. To guard against premature opening, each
proposal shall be submitted to the Department of Finance in a sealed envelope plainly marked with the
proposal title, project number, proposer name, and time and date of the proposal opening. Proposals
shall be submitted using the forms provided in the project package.
An optional pre-proposal conference will be held to answer any questions that the prospective proposers
may have regarding the City's request for proposals.
Council Hearing Room
990 Palm Street, San Luis Obispo
Wednesday, March 27, 2019 at 1-2 pm
1-888-204-5987, Code: 8618289
Project packages and additional information may be obtained at the City’s BidSync website at
www.BidSync.com. Please contact Accounting Manager/Controller at rpardo@slocity.org with any
questions.
Packet Pg. 56
Item 9
City of San Luis Obispo
Auditing Services
TABLE OF CONTENTS
A. INTRODUCTION ................................................................................................................................... 1
B. SCOPE OF WORK ................................................................................................................................. 1
C. PROJECT SCHEDULE ............................................................................................................................. 1
D. PROJECT BUDGET ................................................................................................................................ 3
E. GENERAL TERMS AND CONDITIONS ..................................................................................................... 3
F. SPECIAL TERMS AND CONDITIONS ....................................................................................................... 8
G. FORM OF AGREEMENT ...................................................................................................................... 12
H. INSURANCE REQUIREMENTS ............................................................................................................. 14
I. PROPOSAL SUBMITTAL FORMS ........................................................................................................... 16
Packet Pg. 57
Item 9
City of San Luis Obispo
Auditing Services
-1-
A. INTRODUCTION
INTRODUCTION
The City is requesting proposals from qualified firms of certified public accountants for a five-year contract
to audit its financial statements for the five years beginning with the fiscal year ending June 30, 2019, with
the option to renew the contract for an additional three fiscal years.
B. SCOPE OF WORK
Comprehensive Annual Financial Report. The City desires the auditor to express an opinion on the fair
presentation of its basic financial statements. The auditor is not required to express an opinion on the
combining and individual non-major fund financial statements and schedules or half percent sales tax
measure funding schedule. However, the auditor is to provide an “in-relation-to” report based on the
auditing procedures applied during the audit of the basic financial statements. Certain limited procedures
should be applied to management’s discussion and analysis, budgetary comparison information, and
schedules related to retirement and post-retirement obligations, but an expression of an opinion is not
required. The auditor is not required to express an opinion on the introductory and sta tistical sections.
Single Audit Act Report. The City receives federal funds which come under the provision of the Single
Audit Act. The auditor is not required to audit the Schedule of Expenditures of Federal Awards; however,
the auditor is to provide an “in-relation-to” report on that schedule based on the auditing procedures
applied during the audit of the financial statements.
Special Purpose Audits. The City receives funding under the Transportation Development Act which
requires a financial and compliance audit. The auditor is also responsible for performing audits of the
financial statements of the Whale Rock Commission joint venture.
Quarterly Meetings. The City will meet with the auditor quarterly to discuss analytics over quarter end
transaction balances and/or to discuss any changes that may impact the financial statements.
AUDITING STANDARDS
These audits are to be performed in accordance with generally accepted auditing standards, the standards
set forth for financial audits in the General Accounting Office’s (GAO) Government Auditing Standards,
the provisions of the federal Single Audit Act of 1984 and the U.S. Office of Management and Budget
(OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations or latest
versions thereof, and the applicable laws, rules and regulations of the Transportation Development Act
(TDA). The financial statements are to be prepared in accordance with the latest Governmental
Accounting Standard Board (GASB) pronouncements and the audit is to be performed in accordance with
generally accepted auditing standards, as required.
REPORTS TO BE ISSUED
Following the completion of the audit of the fiscal year’s financial statements, the auditor shall issue:
Packet Pg. 58
Item 9
City of San Luis Obispo
Auditing Services
-2-
1. A report of the fair presentation of the financial statements in conformity with generally accepted
accounting principles.
2. A report on internal controls over financial reporting and on compliance and other matters based
on an audit of the financial statements performed in accordance with government auditing
standards.
3. A report on compliance with requirements applicable to each major program and internal control
over compliance in accordance with OMB Circular A-133.
4. A report on compliance with applicable statutes, rules and regulations of TDA, the California Code
of Regulations and the San Luis Obispo Council of Governments for the Transit Fund and the TDA
Fund.
5. An agreed upon procedures report on the City’s compliance with Proposition 111, Article XIII.B of
the California State Constitution and Government Code 7900 (et seq.) in its calculation of the
Gann Limit.
INTERNAL CONTROL and COMPLIANCE REPORTS
In the required reports on internal controls, the auditor shall communicate any reportable conditions
found during the audit. A reportable condition shall be defined as a significant deficiency in the design or
operation of the internal control structure, which could adversely affect the organization’s ability to
record, process, summarize and report financial data consistent with the assertions of management in the
financial statements. Reportable conditions that are also material weaknesses shall be identified as such
in the report.
Non-reportable conditions discovered by the auditors shall be reported in a separate letter to
management, which shall be referred to in the report on internal controls.
The reports on compliance shall include all instances of noncompliance.
Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or
indications of illegal acts of which they become aware to the following parties:
City Manager
Director of Finance
City Attorney
Auditors shall assure themselves that the City is informed of each of the following:
1. The auditor’s responsibility under generally accepted auditing standards
2. Significant accounting policies
3. Management judgments and accounting estimates
4. Significant audit adjustments
Packet Pg. 59
Item 9
City of San Luis Obispo
Auditing Services
-3-
5. Other information in documents containing audited financial statements
6. Disagreements with management
7. Management consultation with other accountants
8. Major issued discussed with management prior to retention
9. Difficulties encountered in performing the audit
C. PROJECT SCHEDULE
The table below shows the preliminary timeline. Proposals shall include detailed schedules (with tasks,
milestones, deliverables, and meetings identified by week or month) that are generally consistent with
the preliminary timeline. It is understood that the project tasks and schedule may be adjusted based on
consultant feedback when the contract is finalized.
Preliminary Schedule Tasks
Each month following quarter end
October – November
November - December
• Quarterly Meetings
• Interim Fieldwork
• Final Fieldwork & Final Report Preparation
D. PROJECT BUDGET
The project budget shall not exceed $75,000, inclusive of travel, direct costs, and contingency funding. As
described in Section F, proposals shall include an overall cost estimate broken down by hours by staff and
task. Hourly rates shall also be provided for all personnel on the project. Bidders may include options for
reducing or adding services, including services that could be performed by City staff. The budget should
also be divided into cost for the citywide audit, the Whale Rock Reservoir audit, and the TDA audit report.
E. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (proposer)
shall meet all of the terms and conditions of the Request for Proposals (RFP) specifications
package. By virtue of its proposal submittal, the proposer acknowledges agreement with and
acceptance of all provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted in the format described in the RFP
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be emailed to Accounting Manager/Controller, Rico Pardo, at
rpardo@slocity.org as either a PDF (preferred) or Word document. No FAX submittals will be
accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
Packet Pg. 60
Item 9
City of San Luis Obispo
Auditing Services
-4-
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the proposer’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are
not required until contract award. The City’s insurance requirements are detailed in Section H.
4. Proposal Quotes. The prices quoted by the proposer must be entered in figures in the spaces
provided on the Proposal Submittal Form.
5. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice
prior to the time specified for the proposal opening, by submitting a written request to the
Director of Finance for its withdrawal, in which event the proposal will be returned to the
proposer unopened. No proposal received after the time specified or at any place other than that
stated in the "Notice Requesting Proposals" will be considered. All proposals will be opened and
declared publicly.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested in more than one proposal, except an alternative proposal when
specifically requested; however, an individual or business entity that has submitted a sub-
proposal to a proposer submitting a proposal, or who has quoted prices on materials to such
proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to
other proposers submitting proposals.
7. Cooperative Purchasing. During the term of the contract, the successful proposer will extend all
terms and conditions to any other local governmental agencies upon their request. These
agencies will issue their own purchase orders, will directly receive goods or services at their place
of business and will be directly billed by the successful proposer.
8. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged, but will
be permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
9. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a
proposal and accept the other, except to the extent that proposals are qualified by specific
limitations. See the "special terms and conditions" in Section C of these specifications for proposal
evaluation and contract award criteria.
10. Competency and Responsibility of Proposer. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of proposers. Proposers will
provide, in a timely manner, all information that the City deems necessa ry to make such a
decision.
Packet Pg. 61
Item 9
City of San Luis Obispo
Auditing Services
-5-
11. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written
contract with the City within ten (10) calendar days after notice of the award has been sent by
mail to it at the address given in its proposal. The contract shall be made in the form adopted by
the City and incorporated in these specifications.
12. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Section F of these specifications within 10 (ten) calendar days after
notice of contract award as a precondition to contract execution.
13. Business Tax. The Contractor must have a valid City of San Luis Obispo business tax certificate
before execution of the contract. Additional information regarding the City's business tax
program may be obtained by calling (805) 781-7134.
CONTRACT PERFORMANCE
14. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry
out and complete the work hereunder in compliance with any and all federal, state, county, city,
and special district laws, ordinances, and regulations.
15. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during its performance of the work.
16. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
17. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
18. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
19. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
20. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured
or damaged resulting from the Contractor's operations, it shall be replaced or restored at the
Contractor's expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
21. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in the United
Packet Pg. 62
Item 9
City of San Luis Obispo
Auditing Services
-6-
States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws
shall be employed in the performance of the work hereunder.
22. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination
in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
23. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire,
earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor
due to federal government restrictions arising out of defense or war programs, then the time of
completion may, at the City's sole option, be extended for such periods as may be agreed upon
by the City and the Contractor. In the event that there is insufficient time to grant such extensions
prior to the completion date of the contract, the City may, at the time of acceptance of the work,
waive liquidated damages that may have accrued for failure to complete on time, due to any of
the above, after hearing evidence as to the reasons for such delay, and making a finding as to the
causes of same.
24. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and
acceptance by the City of the materials, supplies, equipment or services provided by the
Contractor (Net 30).
25. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnis hed, if any,
shall be subject to the City's inspection and approval. The inspection of such work shall not relieve
Contractor of any of its obligations to fulfill its contract requirements.
26. Audit. The City shall have the option of inspecting and/or audi ting all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
27. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Contractor further covenants that, in the
performance of this work, no subcontractor or person having such an interest shall be employed.
The Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, the Contractor shall at all times be deemed an independent contractor
and not an agent or employee of the City.
28. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and
hold the City and its agents, officers and employees harmless from and against any and all claims
asserted or liability established for damages or injuries to any person or property, including injury
to the Contractor's employees, agents or officers that arise from or are connected with or are
caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers
or employees, in performing the work or services herein, and all expenses of investigating and
Packet Pg. 63
Item 9
City of San Luis Obispo
Auditing Services
-7-
defending against same; provided, however, that the Contractor's duty to indemnify and hold
harmless shall not include any claims or liability arising from the established sole negligence or
willful misconduct of the City, its agents, officers or employees.
29. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
30. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in
writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the
contract immediately by written notice to the Contractor to said effect. Thereafter, neither party
shall have any further duties, obligations, responsibilities, or rights under the contract except,
however, any and all obligations of the Contractor's surety shall remain in full force and effect,
and shall not be extinguished, reduced, or in any manner waived by the termination thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed
from the beginning date in which the breach occurs up to the day it received the City's Notice of
Termination, minus any offset from such payment representing the City's damages from such
breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Contractor as may be set forth in the
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by the Contractor shall be based solely on the City's assessment of the value of the work-
in-progress in completing the overall workscope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City's sole discretion, so as to permit a
full and complete accounting of costs. In no event, however, shall the Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
City reserves the right to terminate this contract for any reason whatsoever and without cause,
upon thirty (30) days prior written notice. In said event, the Contractor shall be entitled to the
reasonable value of its services performed to the date of termination.
Packet Pg. 64
Item 9
City of San Luis Obispo
Auditing Services
-8-
F: SPECIAL TERMS AND CONDITIONS
CONSULTANT SERVICES
1. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Proposal submittal summary.
b. Schedule of professional fees and expenses.
c. Certificate of insurance.
d. References from at least three firms for whom you have provided similar services.
Note: For ease of electronic preparation, proposer may prepare their own proposal submittal
forms as long as they contain the same information in a similar format.
Qualifications
a. Experience of your firm in performing similar services. Demonstrate the competence and
capacity of the proposer to undertake the audit of the city in conformity with the
requirements of this request for proposals.
b. An affirmative statement that the firm has successfully completed an external control review,
date of the report and a statement whether that quality control review included a review of
specific government engagements.
c. State the staffing size of the firm, the size of the firm’s governmental audit staff and the
location of the office from which the work on this engagement is to be performed.
d. An affirmative statement should be included that the firm and all assigned key professional
staff are properly licensed to practice in California.
e. Resumes of the individuals who would be assigned to this project, including any sub-
consultants.
f. Standard hourly billing rates for the assigned staff, including any sub-consultants.
g. Statement and explanation of any instances where your firm has been removed from a project
or disqualified from proposing on a project.
Work Program
a. Description of your approach to completing the work.
b. Tentative schedule by phase and task for completing the work.
Packet Pg. 65
Item 9
City of San Luis Obispo
Auditing Services
-9-
c. Estimated hours for your staff in performing each major phase of the work, including sub-
consultants.
d. Services or data to be provided by the City.
e. Any other information that would assist us in making this contract award decision.
Requested Changes to Terms and Conditions
a. The City desires to begin work soon after selecting the preferred certified public accountant
firm. To expedite the contracting process, each submittal shall include requested redlined
changes to terms and conditions, if necessary.
Proposal Length
a. Proposals should not exceed 25 pages, including attachments and supplemental materials.
The proposal should be prepared simply and economically, providing a straightforward,
concise presentation of the information requested.
b. Only one electronic copy of the proposal is required, submitted via email by the closing date,
to rpardo@slocity.org. Proposals must be submitted as either a PDF (preferred) or Word
document.
2. Proposal Evaluation and Consultant Selection. Proposals will be evaluated by a review
committee and contract award process as follows:
Phase 1 – Written Proposal Review/Finalist Candidate Selection
The proposals will be evaluated based on the following criteria as evidenced in their written
proposals:
a. Understanding of the work required by the City.
b. Quality, clarity and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent team experience in successfully performing similar services.
e. Creativity of the proposed approach in completing the work.
f. Value.
g. Writing skills.
h. References.
Phase 2 – Oral Presentations/Interviews and Audit Firm Selection (at City’s option)
At the City’s discretion, a group of finalist candidates may be asked to provide an oral presentation
to the review committee and answer questions about their proposal. The purpose of this second
phase is two-fold: to clarify and resolve any outstanding questions or issues about the proposal;
and to evaluate the proposer’s ability to clearly and concisely present information orally. After
evaluating the proposals and discussing them further with the finalists or the tentatively selected
Packet Pg. 66
Item 9
City of San Luis Obispo
Auditing Services
-10-
certified public accountant firm, the City reserves the right to further negotiate the proposed work
scope and/or method and amount of compensation.
Contract award will be based on a combination of factors that represent the best overall value for
completing the work scope as determined by the City, including: the written proposal criteria
described above; results of background and reference checks; results from the interviews and
presentations phase; and cost.
3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
a. Issue RFP 3/20/19
b. Pre-Proposal Conference (optional) 3/27/19
c. Receive proposals 4/12/19
d. Complete proposal evaluations 4/19/19
e. Conduct finalist interviews and finalize recommendation week of 4/22/19
f. Execute contract (Council meeting) 5/21/19
g. Start work 6/1/19
4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following
location, date, and time to answer any questions that prospective bidders may have regarding
this RFP:
Council Hearing Room
990 Palm Street, San Luis Obispo
Wednesday, March 27, 2019 at 1-2 pm
1-888-204-5987, Code: 8618289
5. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
6. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Contractor without the prior written approval of the City.
7. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
8. Required Deliverable Products. The Audit Firm will be required to provide:
a. Ten (10) copies of each report described in these specifications relating to the CAFR and Single
Audit.
Packet Pg. 67
Item 9
City of San Luis Obispo
Auditing Services
-11-
b. Three (3) copies of the audit opinion for the Whale Rock Commission annual financial
statement.
c. Ten (10) complete reports of the Transportation Development Act financial statements and
compliance reports.
d. When computers have been used to produce materials submitted to the City as a part of the
workscope, the Contractor must provide the corresponding computer files to the City,
compatible with the following programs whenever possible unless otherwise directed by the
project manager:
Word Processing Word
Spreadsheets Excel
Desktop Publishing CorelDraw, PageMaker
Computer Aided Drafting (CAD) AutoCAD
Computer files must be on a standard compact disk (preferred) or a 3½", high-density, write-
protected diskettes, formatted for use on IBM-compatible systems. Each diskette must be
clearly labeled and have a printed copy of the directory. Alternatively, files may be emailed
to the City.
ALTERNATIVE PROPOSALS
9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each of the alternative
and discuss under what circumstances the City would prefer one alternative to the other(s).
Packet Pg. 68
Item 9
City of San Luis Obispo
Auditing Services
-12-
SECTION G: FORM OF AGREEMENT
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
[CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on [date], City requested proposals for auditing services, per Project No. 19-2005-1
(project); and
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City
for said project;
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, until acceptance or completion of said project.
2. INCORPORATION BY REFERENCE. City Project No. 19-2005-1 and Consultant’s proposal
dated [date], are hereby incorporated in and made a part of this Agreement.
3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will
pay, and Contractor shall receive therefore compensation in a total sum not to exceed $XXX. Consultant
shall be eligible for compensation installments after completion of milestone Tasks -E as shown in the
attached project schedule.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and
agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to
do everything required by this Agreement and the said specifications.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto.
No oral agreement, understanding or representation not reduced to writing and specifically incorporated
Packet Pg. 69
Item 9
City of San Luis Obispo
Auditing Services
-13-
herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation
be binding upon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City Derek Johnson
City Manager
990 Palm Street
San Luis Obispo, CA 93401
Consultant Name
Title
Address
Address
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that
everyone executing this agreement on behalf of each party is a person duly authorized and empowered
to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
ATTEST: CITY OF SAN LUIS OBISPO:
________________________________ By:_____________________________________
City Clerk City Manager
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
City Attorney Name of CAO / President
Its: CAO / President
Packet Pg. 70
Item 9
City of San Luis Obispo
Auditing Services
-14-
SECTION H: INSURANCE REQUIREMENTS
Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the performance
of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant's profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/l ocation or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
Packet Pg. 71
Item 9
City of San Luis Obispo
Auditing Services
-15-
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3. The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
Packet Pg. 72
Item 9
City of San Luis Obispo
Auditing Services
-16-
SECTION I: PROPOSAL SUBMITTAL FORMS
Consultants
The undersigned declares that she or he has carefully examined this RFP, is thoroughly familiar with its
contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the
following cost quoted in full:
Description Cost
General purpose financial statements
TDA financial audit and compliance report
Single Audit Act report
Whale Rock Commission report
Gann Limit report
TOTAL COSTS $
❑ Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
Packet Pg. 73
Item 9
City of San Luis Obispo
Specification No. 9xxxx
-17-
REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide
the services included with the scope of the specifications. Attach additional pages if required. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Packet Pg. 74
Item 9
City of San Luis Obispo
Specification No. 9xxxx
-18-
Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Packet Pg. 75
Item 9
City of San Luis Obispo
Specification No. 9xxxx
-19-
STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
◼ Do you have any disqualification as described in the above paragraph to declare?
Yes ❑ No ❑
◼ If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
Packet Pg. 76
Item 9