For City Council Meeting [September 14, 2021]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Stephen Erlandson, Director of Finance
Title
Request City Council to Approve a Professional Services Agreement for Specialized Audit Services to Moss, Levy, and Hartzheim, LLP for a Not-To-Exceed Amount of $272,000.
(ACTION)
Body
BACKGROUND:
On August 3, 2021, the Economic Development Committee (Mayor and Mayor Pro Tem), the City Manager, and Deputy City Manager interviewed independent accounting firms to conduct the City's annual financial audits for fiscal years 2020-21, 2021-22, and 2023. At that time, the auditing firm of Lance, Soll, and Lunghard, LLP (LSL) was selected as the most qualified firm to provide the annual financial audits; however, the EDC also recommended that the auditing firm of Moss, Levy, and Hartzheim, LLP (MLH) perform specialized audits for the City.
On August 10, 2021, the City Council approved an agreement with LSL to provide the independent annual financial audit services, with a condition that the City also proceed to with a separate agreement with MLH to perform the specialized audit/agreed upon procedures engagements related to:
* The 30-Year Concession Agreement and Service Contract for the Design, Construction, and Financing of Upgrades and for the Operation of the Rialto Utility Authority Wastewater Facility and Water Facility among Rialto Water Services, LP, the Rialto Utility Authority; and the City (Concessionaire Agreement); and
* The Rialto Airport/Renaissance Project/Lewis-Hillwood Agreement
ANALYSIS/DISCUSSION:
The City desires to engage a professional accounting firm to perform specialized audit/agreed upon procedures engagements as aforementioned to ensure that the terms and transactions related to the various agreements have been adhered to from inception to present day. MLH was deemed to be highly qualified to handle these types of engagements based on the assessment of the EDC a...
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