HomeMy WebLinkAboutResolution No. 2018-18CITY OF KENAI
RESOLUTION NO. 2018-18
Sponsored by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT FOR EXTERNAL AUDIT SERVICES TO BDO USA, LLP.
WHEREAS, Section 5-10 of Kenai's Municipal Charter provides: "[t]he Council shall order an
independent audit of the accounts and evidences of financial transactions of the Department of
Finance and of all other departments, offices, and agencies keeping separate or subordinate
accounts or making financial transactions, as of the end of every fiscal year at least, and the audit
shall be reported to the Council and to the City Administrator.'; and,
WHEREAS, on March 23, 2018 the following proposals to perform external audit services for the
City were received:
Proposer Score
BDO USA, LLP. 353.48
Altman, Rogers & Co. 345.00; and,
WHEREAS, BDO USA, LLP provided the highest ranked proposal; and,
WHEREAS, award of the contract to BDO USA, LLP is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a contract for the City's external
audit services to the highest ranking proposer, BDO USA, LLP for a period of three -years.
Section 2. That the City Manager is authorized to issue a purchase order in the amount of
$46,250 for completion of the FY2019 external audit and the contract amount will increase in
subsequent years by a percentage equal to the Anchorage Consumer Price Index for the
preceding calendar year.
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
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KENAI, ALASKA
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MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: April 20, 2018
SUBJECT: Resolution 2018-18
The purpose of this memo is to recommend approval of Resolution 2018-18. Resolution 2018-
18 will award a three-year contract, with opportunity for two, one-year extensions by mutual
consent, for external audit services to BDO USA, LLP.
A request for proposal was released on March 1, 2018 and two responses were received on
March 23, 2018. A committee of four reviewed and ranked the proposals based on experience,
technical qualifications, responsiveness, references and cost with the following results:
Proposer Score
BDO USA, LLP 353.48
Altman, Rogers & Co. 345.00
BDO USA, LLP provided a cost proposal of $51,750 for year one of the contract and Altman,
Rogers & Co. bid $37,000. After determining BDO USA LLP the highest ranked proposal, the
administration negotiated a fee reduction of $5,500 with BDO for a first year contract amount not
to exceed $46,250. The fee amount for subsequent years will increase by the increase in the
Anchorage Consumer Price Index. Ranking of proposers was based on submitted fees and not
the negotiated rate. The subsequent negotiations would have increased the difference in scoring
but was not considered. Altman, Rogers & Co. has an office in Soldotna meeting the definition of
local bidder per KMC 7.15.130(b). The selection process utilized was a request for proposal and
not a bid. No local bidder preference was provided and if applied would not have changed the
ranking of proposers.
BDO USA, LLP was the highest ranking proposer and execution of a contract for external audit
services with BDO USA, LLP is recommended.