04/05/1978 Meeting - Laserfiche WebLink

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e Manager said Council could move through the remalnlng routine items, except VII, which would be considered at the end of the meeting. IV. Authorization for Contract for City Auditor--Finance memo, dated March 30, 1978, distributed. Manager noted the Council subcommittee (Williams and Obie) worked with the staff on the recommendation. The recommendation was that Peat, Marwick, Mitchell & Co., from Portland, be hired as City auditors for a sum not to exceed $21,800 in the first year. This would mean a change from Coopers & Lybrand who have been the auditors for the City for many years. Both firms are very capable, but PMM has submitted a much lower bid. Mr. Obie said staff had done a very thorough and professional job in reviewing all the proposals and had made a broad search for a good audi- tor. He was dissappointed in the dollar difference between the two firms because he leaned toward hiring a locally-managed firm, and toward keeping the same auditing firm. Mr. Williams agreed with most of Mr. Obie's comments. He was not sure the amount of money would be saved as the first year a great amount of staff time would be dedicated toward training the auditors with the system. He felt it was a question as to whether the City was really going to save money. - Ms. Smith felt it best to hire a local firm and questioned the distance and money that would be spent for travel. It was noted that travel money was included in the contract. Sherm Flogstad, Finance Director, said the distance and location was a factor and it was felt Coopers & Lybrand might be more readily acces- sible. He said the memo had outlined the disadvantages and advantages for E'ach one, noting they were pretty well balanced. Staff felt it could work with the staffs of either firm and the cost.was the main reason for making the recommendation for change. Mr. [;radl ey questi oned the frequency of use by the auditor and whether it would be just for the fiscal audit. Mr. Flogstad said the main use would be for preparation of a preliminary audit in May and a final audit after the first of the year. He noted the bid by PMM was maximum; however, CoopErs' & Lybrand's bi d woul d be the amount pl us thei r out-of-pocket expenses. He said use of the auditors would be mainly for auditing with telephone use for any other contact. The contract specified the firm would come every other month to Eugene. There might be some special projects that the auditors would be used for also. However, PMM had emphasized it would not exceed the $3,800 estimate to provide regulatory and compliance requirement audits. - 4/5/78--9 2.22..