21 - EXERCISE OPTION YEAR 1 AGREEMENT FOR AUDIT SERVICESItem 21
Costa Mesa Sanitary District
Memorandum
To: Board of Directors
...an Independent Special District
Via: Scott Carroll, General Manager
From: Marc Davis, Treasur
Date: January 24, 2013
Subject: Exercise Option Year 1 of Agreement for Audit Services
Summary
The base period of the current agreement for audit services has been completed. The
Board needs to consider whether to exercise option year 1 of the agreement to extend the
audit contract to include the audit for the year ending June 30, 2013, or whether to put the
audit out to bid.
Staff Recommendation
Exercise the first 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,
2013 in the amount of $9,340.
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
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www.crosdca.gov
Board of Directors
January 24, 2013
Page 2 of 2
ended June 30, 2010, 2011 and 2012, and is now complete. At the time of award, the
tabulation of proposals for the base period was as follows:
Firm
Diehl, Evans & Company, LLP
Lance, Soil & Lunghard, LLP
Charles Z. Fedak & Company
Total Proposed Fixed Fee
For Base Period
$26,930
30,180
31,290
Staff has been satisfied with the services provided by WHDE during the base period.
WHDE has provided audit services to the District since it separated from the City in July
2004. The audit fee for the first option year is $9,340, which is less than the base year fee
for the next lowest bid and within the budget for fiscal year 2012 -13.
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 February 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 one.
Financial Review
The total cost of option year one is $9,340, 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
January 24, 2013 Board of Directors regular meeting at District Headquarters (628 W. 19th
Street) and on the District's website at www.crosdca.gov.
Alternative Actions
1. Do not exercise option year 1 and direct Staff to prepare an RFP for audit services