ACTION REQUESTED:
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Communication from the City Manager and Finance Director/Comptroller with a Request to AUTHORIZE the City Manager to Enter Into a CONTRACT with CLA (CLIFTONLARSONALLEN LLP) to Provide Annual Auditing Services for 2020, in the Amount of $99,750.00, Reduced from the Original Contract of $111,900.00, and Extend the Current Agreement for Three (3) Years, Specifically for Fiscal Year 2021 ($102,900.00), 2022 ($106,050.00), and 2023 ($109,200.00) with an Optional 2-Year Extension for Fiscal Years 2024 (112,350.00) and 2025 ($115,500.00)
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BACKGROUND: In December, the City's Purchasing Department sent letters to vendors asking them to reduce upcoming service costs. Adam Pulley from CLA responded to this request with a reduction of nearly 11% in fees for the Fiscal Year 2020 audit to be performed in 2021. This is the last year under the current contract with CLA. As part of the reduction, CLA is also asking to extend the contract for three (3) years with an optional two (2) year extension. The current fee for 2020 is $111,900.00. The proposed extension would not exceed this fee until the optional two (2) year extension. CLA has provided excellent service and has helped guide the City through the creation of its first enterprise fund as well as continuous new GASB Standards. We believe the current proposal is fair to both the City and CLA.
FINANCIAL IMPACT: Reduction in Audit Fee for 2020 of $12,150.00 (10.86%) and $546,000 in audit fees for 5 years, Fiscal Year 2021 through 2025.
NEIGHBORHOOD CONCERNS: None
IMPACT IF APPROVED: CLA will provide auditing services for the City of Peoria over the next three years with an optional two-year extension.
IMPACT IF DENIED: CLA will perform the Fiscal Year 2020 audit at the agreed upon fee of $111,900.00 and the City would issue a Request for Proposal in the fall of 2021 for audit services.
ALTERNATIVES: City staff would issue a Request for Proposal in the fall of 2021 for audit services.
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