SPECIAL LEGISLATIVE, FINANCE AND

ADMINISTRATION COMMITTEE

A Special Legislative, Finance, and Administration Committee meeting was held on May 7, 2007, at 6:00 p.m. with Chairman Salters presiding. Members present were Mr. Hogan, Mr. Slavin, and Mr. Shevock. Mrs. Jones was absent.

AGENDA ADDITIONS/DELETIONS

Mr. Slavin moved for approval of the agenda, seconded by Mr. Shevock and unanimously carried.

Review of Audit Proposals and Selection of Firm

During their regular meeting of March 12, 2007, members reviewed a Request for Proposals for Professional Auditing Services. Mrs. Mitchell, Finance Director/Treasurer, reminded members that, in response to a previous request of the City's Auditor, it was decided that the Legislative, Finance, and Administration Committee would function as the City's Audit Committee. One of their functions is to review the request for proposals for professional auditing services prior to it being let.

Members reviewed and rated technical proposals for professional auditing services submitted by two (2) certified public accounting firms: Clifton Gunderson LLP and Faw, Casson & Co., LLP.

Mr. Hogan expressed concern that Faw Casson & Co. did not provide a very detailed explanation of their audit approach. He also noted that the total projected hours for Clifton Gunderson was only 500, compared with 670 projected by Faw Casson & Co. for FY07. Mr. Slavin reminded members that, in addition to the lower hours proposed, there would also be a steep learning curve for Clifton Gunderson.

The scores provided by members were averaged with the following results: Faw Casson & Co. - 324 and Clifton Gunderson - 320.

The results of the sealed bids were as follows:

Responding to Mr. Hogan, Mrs. Mitchell stated that there should be no additional charges if Clifton Gunderson has underestimated their hours.

Members questioned whether or not Clifton Gunderson’s proposal could be accepted without the requested information regarding the Comfort Letter for Bond Issues or if it should be considered non-responsive. (City Clerk’s Office Note: Mrs. Mitchell consulted with the City’s purchasing agent, Mr. Pete Gregg, who indicated that since the request was for propsals rather than bids, Clifton Gunderson’s proposal was acceptable.)

Mr. Slavin noted that it would be a disservice to compare the proposals side-by-side due to the 174 hour difference. It was his feeling that Faw Casson & Co. responded to everything requested and they have a history of providing quality service to the City.

Mr. Slavin moved to recommend awarding the five (5) year contract for auditing services to Faw Casson & Co., LLP. The motion was seconded by Mr. Hogan and carried with Mr. Salters voting no.

Mr. Slavin moved for adjournment, seconded by Mr. Shevock and unanimously carried.

Meeting Adjourned at 6:29 P.M.

                                                                                    Respectfully submitted,

                                                                                    Reuben Salters

                                                                                    Chairman

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