DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott, CPA, Director
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
One Year Extension and Renewal of the Independent Audit Services Contract
SUMMARY:
An Ordinance approving and authorizing execution of the First Extension of the Audit Services Contract with Padgett Stratemann & Co., LLP, to provide independent audit services to the City for Fiscal Year 2015, for a total fee not to exceed $810,500.00.
BACKGROUND INFORMATION:
On June 14, 2012, Ordinance Number 2012-06-14-0444 was passed executing an external audit services contract with Padgett Stratemann & Co., L.L.P. (PS&Co.) to provide independent audit services for fiscal years ending September 30, 2012, 2013 and 2014 with 2, 1-year extensions (for FY2015 and FY2016) upon Council approval. The City is currently on the last year of the contract's original 3 year term. An item was placed on the Audit Committee's October 21, 2014 agenda to discuss and recommend exercising the first extension option. The Audit Committee moved that the extension be forwarded to the full Council for consideration. The audit fees for the extensions were negotiated in advance in the amount of $810,500.00 for fiscal year 2015 and $837,500.00 for fiscal year 2016. The contract includes sub-contractor participation as follows:
* Prime Contractor (PS&Co.) with 50% SBEDA Sub-Contractors to include:
o Robert J. Williams, CPA (9%)
o Britts & Associates, LLP (18%)
o C.C. Garcia & Co., PC (14%)
o Schriver, Carmona & Carrera, PLLC (9%)
The contract was structured to provide the opportunity for staff to evaluate the firm's performance upon conclusion of the initial three year contract term. We have evaluated PS&Co's performance during the initial contract term and have found it to be acceptable. As such, staff recommends exercising the option to extend for a fourth year at a cost of $810,500.00 to provide the City with independent audit services fo...
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