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COMMITTEE BUSINESS Case #1: Award Contract for Professional Audit Services Finance Officer Lund reviewed the staff report and presented staff's rationale to recommend offering a five -year contract to MMKR. She noted the cost is $2,000 higher than the lowest bid but MMKR has years of service and knowledge of Ramsey. Councilmember Backous stated his agreement with staff's recommendation and case for MMKR; however, he contended that working with Ramsey for so many years and knowing the City's systems should have resulted in quoting substantially fewer hours than other RFPs. Finance Officer Lund explained MMKR puts in a lot of hours because of the Town Center Project and RALF properties. In addition, when the City first purchased the property, MMKR worked extensively with Anoka County researching discrepancies in the 30 PIN numbers. Councilmember Backous pointed out that MMKR is now familiar with the City's controls so the learning curve should be lower. He stated he thinks MMKR is quoting too many hours. Councilmember Backous asked staff to be careful when issuing RFPs so competing firms do not get the false impression that the City is not interested in changing firms. Finance Officer Lund reviewed the number of firms that submitted RFPs and those that declined. She noted most estimated 260 hours, including MMKR. She explained one vendor estimated 220 hours but staff found that vendor's other city clients were shown at an average of 260 hours. With regard to Larson Allen, Finance Officer Lund indicated they have three divisions and the one overseeing Ramsey would be the Brainerd office. Councilmember Backous stated he has no objection to the recommendation but believed MMKR had gained efficiencies. Finance Officer Lund stated MMKR has been the City's auditor for at least 16 years but its staff has changed over the years. Councilmember Backous stated he expected higher bids from first year firms but agreed with the pros and cons list provided by staff and understands there are efficiencies on City staff side to retain the same auditing firm. Councilmember Wise concurred and asked if there is a better way of tracking costs than going through the REP process such as checking with other cities. He stated he has no problem with staff's recommendation if MMKR is doing a good job at a fair compensation. Chairperson Elvig explained the City has a policy to look at services to assure the rates are competitive. He found the MMKR bid was competitive but he understands the comment by Councilmember Backous that there should be efficiencies. Finance Committee / October 25, 2011 Page 2 of 5