Title
Resolution to Approve an Agreement for Auditing Services with Rehmann Robson, LLC for ($405,000.00/5 years)
Memorandum
This resolution requests approval of a five-year contract, with two optional one-year extensions, for independent auditing services with Rehmann Robson, LLC.
The attached resolution seeks approval of a professional services contract with Rehmann Robson, LLC for independent auditing services in the amount of $405,000.00 for a five-year period, on behalf of the Financial and Administrative Services unit. This agreement is presently needed because the agreement with the former independent audit firm has expired. This agreement gives the Financial and Administrative Services unit the option to renew the agreement for two additional one-year periods at a cost of $90,000.00 and $93,000.00 for fiscal years 2027 and 2028 respectively.
On April 19, 2022, the City received proposals in response to Request for Proposal (RFP) No. 22-31 from five firms. The RFP required each consultant to submit professional qualifications, past involvement with similar projects, work plan, and fee proposals. A selection committee comprised of Financial staff reviewed the proposals to determine which firms were most qualified to perform the required services. Three firms were interviewed, evaluated and scored on several criteria:
• Professional Qualifications - 25 points
• Past Involvement with Similar Projects - 25 points
• Proposed Work Plan - 20 points
• Fee Proposal - 30 Points
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. Rehmann Robson, LLC: $405,000
2. Maner Costerisan: $562,400
3. Yeo & Yeo, PC: $692,750
Based on the proposals and fee schedules submitted, the selection committee decided to award Rehmann Robson, LLC the Auditing Services Contract.
Rehmann Robson, LLC complies with the City’s non-discrimination and living wage ordinances.
Budget/Fiscal Impact: Funds for the first year of this agreement have been budgeted in the approved FY23 General Fund Finance budget and will be annually budgeted, pending City Council approval, for all remaining years of the contract term.
The Financial and Administrative Services unit recommends Rehmann Robson, LLC for appointment by the Mayor and City Council as the City of Ann Arbor’s independent auditor for a five (5) year commitment with an option to renew for two additional one-year extensions, commencing with the audit of the fiscal year ending June 30, 2022.
Staff
Prepared by: Tami Cook, Accounting Manager
Reviewed by: Marti Praschan, Financial Services Area Administrator and CFO
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The City issued a Request for Proposal No. 22-31, to identify certified public accountants to conduct an independent audit of the City’s accounts as required by the City Charter Section 8.15;
Whereas, On April 19, 2022 five firms responded to the RFP;
Whereas, The attached Auditing Services contract will allow the City to receive audit services as required by City Charter Section 8.15;
Whereas, Funding is available in the approved FY23 General Fund Finance budget for this agreement;
Whereas, The Financial and Administrative Services unit plans to budget sufficient funding for FY24 - FY27, pending City Council approval, in the General Fund Finance budget; and
Whereas, Rehmann Robson, LLC complies with the requirements of the City’s Living Wage and Non-Discrimination ordinances;
RESOLVED, That City Council approve the attached Auditing Services contract with Rehmann Robson, LLC for a 5-year commitment with an option to renew for up to two one-year extensions for the annual fees as shown below:
Year Ending June 30 Audit Cost
2022 $75,000
2023 $78,000
2024 $81,000
2025 $84,000
2026 $87,000
2027 (Optional) $91,000
2028 (Optional) $95,000
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Professional Services Agreement with Rehmann Robson, LLC after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution including execution of any authorized renewals and any changes or amendments.