AgdaPkt 2002-09-09 - Laserfiche WebLink

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iREPORT To the Honorable Mayor and City Council From the City Manager September 9, 2002 Subject Professional Services for Conducting a Special Audit of the General Improvement District Facility Fee Construction Fund Recommendation It is recommended that the City Council authorize the City Manager to execute a contract with Maze & Associates, Certified Public Accountants, ¢or professional services to conduct a special audit of the General Improvement District Facilities Fee Construction Fund. Background The General Improvement District Facilities Fee Construction Fund receives its revenue from fees collected from developers in the Redwood Shores area of the City as well as interest earned on those funds. The amount of the fee is determined by prior City Council action. The expenditures incurred are for improvements to the district's water and sewer systems, storm drainage including levees, streets, traffic signals, parks, etc. The priorities for how the revenues are allocated come from the Facility Fee Committee. This Committee consists of three members from the City and three members from the developer. The Committee makes recommendations to the City Council as to which projects should be done. Once Council has taken action, the Committee will then set its priorities. The current development agreement between the City and tee developer expired in June 2002. That agreement has been extended by two 60-day extension actions of the City Council and is currently scheduled for termination on October 23, 2002 if no further action takes place. Also, the current developer has completed building homes in the area and no more facility fees are expected to be received. Because the purpose of the Facility Fee Committee will soon be coming to an end and because the most recent audit was performed in 1994, the Committee voted to have a subsequent audit performed. Maze & Associates (the City's independent auditor) has submitted a proposal to provide the audit services requested by the Committee. The audit services will include reviewing the revenues and expenditures for the period July 1, 1996 through June 30, 2002. The total cost of this contract is expected to be $20,500. Alternative We believe that the proposed fee by Maze & Associates of $20,500 is reasonable. Maze & Associates is currently the City's independent auditor and is very familiar with the Facilities Fee Construction Fund as part of the regular City audit. Because of this prior knowledge, we believe that it would be more economical for the City to rely on the expertise of Maze & Associates for the purpose of this audit. If this contract is not approved, the audit would have to be delayed and the cost could be considerably higher.