HomeMy WebLinkAboutResolution No. 2017-42CITY OF KENAI
RESOLUTION NO. 2017-42
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
EXTENSION OF A PROFESSIONAL SERVICES AGREEMENT WITH BDO USA, LLP FOR
COMPLETION OF THE CITY'S FISCAL YEAR 2017 ANNUAL FINANCIAL STATEMENT AUDIT.
WHEREAS, Resolution 2013-16 awarded a contract to Mikunda, Cottrell & Company to perform
the City's annual financial audit; and,
WHEREAS, BDO USA, LLP subsequently purchased Mikunda, Cottrell & Company and the
contract assigned to BDO USA, LLP; and,
WHEREAS, the contract terminated on December 31,, 2016 but does allow for extension with
written consent of both parties; and,
WHEREAS, BDO USA, LLP has expressed interest in renewing the contract for another year;
and,
WHEREAS, extension through December 31, 2017 will allow completion of the FY2017 Audit and
mark the fifth financial audit performed under the contract; and,
WHEREAS, upon completion of the FY2017 audit, the administration will issue a request for,
proposal for future audit services.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to extend the time of performance to
December 31, 2017 of the Professional Services Agreement for Audit Services with BDO USA,
LLP.
Section 2. That compensation for the FY2017 Audit service shall not exceed $41,000 which
represents a 0.40% increase based on the year over year change in Anchorage Consumer Price
Index plus an additional $833.00 for additional services associated with implementation of GASB
68. Sufficient funds were have been budgeted.
Resolution No. 2017-42
Page 2 of 2
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 55th day of July, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST: 1
Heinz,
Approved by Finance
AV
'1111eawith a Past, eliY with a fata�
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 1 Fax: (907) 283-3014
the cityo f www. kenai.city
KENM,ALASKA
Nva
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager IF. C2
FROM: Terry Eubank, Finance Director
DATE: May 31, 2017
SUBJECT: Resolution 2017-42
The purpose of this memo is to recommend passage of Resolution 2017-42. Resolution 2017-42
will authorize an extension of the contract to perform the annual financial statement audit of the
City for an additional one year with BDO USA, LLP. A request for proposal was issued in 2013
for performance of the City's annual financial statement audit. The City received two proposals
with Mikunda Cottrell & Company being both the highest scoring proposer and the low cost
proposer. Subsequent to award, BDO USA, LLP purchase Mikunda Cottrell & Company, was
assigned the contract, and has performed the City's audit for the past four years.
It is customary for City contracts to have a three-year term with two one-year extensions. The
administration recommends extension of the contract with BDO USA, LLP for one year, through
December 31, 2017, allowing for completion of the fiscal year 2017 annual audit. Completion of
the fiscal year 2017 audit will mark five years under the contract and the City will issue an RFP
for audit services in early 2018 for future audits.
Your support for Resolution 2017-42 is respectfully requested.