BOARD MEETING DATE: April 3, 2009
AGENDA NO. 3

PROPOSAL:

Execute Contract for Independent Audit Services for FYs Ending
June 30, 2009, 2010, and 2011

SYNOPSIS:

On November 7, 2008, the Board approved release of an RFP for independent financial audit services. An evaluation panel composed of outside and AQMD Legal and Finance staff evaluated the proposals. Three proposals were submitted to the Administrative Committee for consideration at its February 13, 2009 and again at its March 13, 2009 meetings. After the Committee interviewed representatives of each of the firms, Thompson, Cobb, Bazilio & Associates, PC was selected to be recommended to the full Board.

COMMITTEE:

Administrative, February 13, 2009 and March 13, 2009, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Thompson, Cobb, Bazilio & Associates, PC for performance of AQMD’s Financial Audits for the FYs ending
June 30, 2009, 2010, and 2011 in an amount not to exceed $123,900.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

A financial audit is annually performed on the AQMD in compliance with the California Government Code and Single Audit Act of 1996. This audit is performed by independent Certified Public Accountants, and their reports are addressed to the Board.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov). Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Eighty eight copies of RFP #P2009-07 were sent out to targeted firms. Nine proposals were received prior to the bid closing at 1:00 p.m. on January 16, 2009.

An evaluation panel was convened to evaluate the nine proposals and consisted of a Chief Accountant-Auditor from the County of Los Angeles and three AQMD staff: a Senior Deputy District Counsel, a Financial Analyst, and the Controller. The panel’s composition was one Asian Pacific American, three Caucasian; four female. After technical evaluation, six firms were eliminated as they were not found to meet the minimum technical requirements of the RFP. The evaluation results for the top three bidders are as follows:

*Total maximum points of 125

The selection criteria used to rank the proposals included responsiveness to the RFP; technical expertise; qualifications and experience; past performance; cost; SB/SBJV/DVBE/DVBEJV/DVBE/SB subcontractors/local business designation (non-EPA), and new to this RFP is the ability to earn an additional 10 points if the proposer has had no previous audit engagement with the AQMD. Based on the panel’s assessment of the criteria, the three top proposers were submitted to the Administrative Committee for its consideration and recommendation to the full Board. The Committee selected Thompson, Cobb, Bazilio & Associates, the current auditor, but requested that the audit team contain at least one senior member who has not previously worked on AQMD’s Audits. Such action is intended to provide the best of both worlds (i.e., team members with experience with AQMD’s operations and a new “set of eyes”).
 

Resource Impacts

The maximum audit costs, including out of pocket expenses are $41,300, $41,300, and $41,300, for FYs ending June 30, 2009, 2010, and 2011, respectively. Sufficient funds for the first year of the contract have been included in the FY 2009-10 Budget and will be budgeted for in the second and third years.