15 - White Nelson Diehl Evans LLP - Option Year Two of Agreement Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, District Treasurer Date: May 22, 2014 Subject: White Nelson Diehl Evans, LLP - Exercise Option Year Two of Agreement for Audit Services Summary The base period and option year one of the current agreement for audit services has been completed. The Board needs to consider whether to exercise option year two of the agreement to extend the audit contract to include the audit for the year ending June 30, 2014, or whether to put the audit out to bid. Staff Recommendation That the Board of Directors approves the second option year of the audit services agreement with White Nelson Diehl Evans, LLP (WHDE) to perform the District’s annual audit for the year ending June 30, 2014 in the amount of $9,525. Analysis In fiscal year 2009-10 , the Board of Directors authorized the issuance of a Request for Proposal (RFP) for audit services. The period of performance as stipulated in the RFP was for a base period of three years, plus two one-year options to be exercised at the discretion of the Board. At that time, the District received three proposals and selected Diehl, Evans & Company, LLP (now doing business as White Nelson Diehl Evans, LLP) as the District’s auditors. The base period covered the annual audits for the fiscal years ended June 30, 2010, 2011 and 2012, and on January 24, 2013, the Board exercised option year one to extend the contract for the fiscal year ended June 30, 2013. At the time of award, the tabulation of proposals for the base period was as follows: ITEM NO. 15
Board of Directors May 22 , 2014 Page 2 of 2 Firm Total Proposed Fixed Fee For Bas e Period Diehl, Evans & Company, LLP $26,930 Lance, Soll & Lunghard, LLP 30,180 Charles Z. Fedak & Company 31,290 Staff has been satisfied with the services provided by WHDE during the base period and option year one. WHDE has provided audit services to the District since it separated from the City in July 2004. The audit fee for the second option year is $9,525, which is less than the base year fee for the next lowest bid and within the budget for fiscal year 2013 -14. Should the Board elect to not exercise the option year and rebid the contract, there is adequate time to do so. If this alternative is elected, Staff will prepare a new RFP and place it on the June board meeting for review and approval. Strategic Plan Element & Goal This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short and long -term fiscal health of the District. Legal Review Legal review is not required at this time. District Counsel previously approved the original Agreement for Audit Services, which includes option year two. Environmental Review The consideration of a firm for audit purposes is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines . Financial Review The total cost of option year two is $9,525, which is included in the current year budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 22 , 2014 Board of Directors regular mee ting at District Headquarters and on the District’s website at www.cmsdca.gov . Alternative Actions 1. Do not exercise option year two and direct Staff to prepare an RFP for audit services