CITY MANAGER AUTHORITY PROCUREMENT AWARDS
ACTION REQUESTED:
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Approve the award of Sole Source Procurement 22-366, Government Accounting Services, to Lauterbach & Amen, LLP for an amount not to exceed $98,184 and for a one-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BACKGROUND:
Since 2016, the Finance Department has contracted with Lauterbach & Amen LLP (Lauterbach) for accounting and payroll support services. The purpose of the contract is to supplement the City’s resources and knowledge in government accounting and payroll functions.
In December 2018, the City Council awarded sole source Contract 18-221 to Lauterbach for a one-year term from January 1, 2019 through December 31, 2019, with three one-year options to extend. The final extension was approved by the City Council on August 17, 2021, with an expiration date of December 31, 2022.
DISCUSSION:
During the current contract term, Lauterbach has met all of the City’s expectations and staff would like to maintain the relationship into 2023.
Staff is aware of only two firms capable of meeting the City’s needs in the government accounting space, Lauterbach and Sikich. During the prior contract term, Sikich served as the City’s independent auditor, thus creating a potential conflict if they were to provide contract accounting services. The City issued a notice of intent to sole source before entering the current Lauterbach contract with no objections.
In 2022, the City issued a request for proposals for auditing services. Lauterbach and Sikich were the only firms that responded to the RFP, further supporting the lack of vendors capable of fulfilling the City’s needs. While both firms scored very well, the RFP was ultimately awarded to Sikich.
Lauterbach is familiar with the City’s financial policies and procedures, account structure and financial software systems. If the City chose not to award this sole source contract, the City would either need to expand its search for qualified government accounting firms outside the local region or increase staff to support the internal accounting function. Additionally, Lauterbach currently maintains the City’s fixed asset accounting in their software system. Changing vendors would require the City to implement fixed asset recordkeeping, which we are not prepared to do.
In recent years, Lauterbach’s primary scope of work has been general accounting and audit support. As of 2021, payroll services are fully supported by City staff. Staffing of the department’s accounting function has also improved in recent years, and in 2022, the volume of work requested of Lauterbach decreased. As a result, staff has negotiated a reduced scope of work at a lower contract amount for 2023.
This sole source is requested for a one-year term from January 1, 2023 to December 31, 2023, to continue utilizing Lauterbach’s contract accounting services.
FISCAL IMPACT:
CIP #: N/A
Government accounting services are expensed to the Financial Services accounts listed below. The 2023 budget includes $173,671 for these services based on the scope of work provided in prior years. The requested award of $98,184 is $75,487 less than the amount budgeted for 2023.
|
Account Number |
Fund Description |
Total Budget Amount |
|
15101100-531304 |
General Fund |
$250,000 |
|
15101300-531304 |
Electric Utility Fund |
$44,000 |
|
15101500-531304 |
Water Utilities Fund |
$44,200 |