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IC&L Caporicci & Larson Certified Public Accountants EXHIBIT A August 31, 2007 Mr. Jeff Ira Mr. Jim Hartnet Audit Committee City of Redwood City 1017 Middlefield Road Redwood City, CA 94063 Dear Audit Committee Members: I would like to take this opportunity to thank you and your staff for the confidence and support you have provided to us over the past five years. I would also like to take this opportunity to present this letter for your consideration regarding extending the Caporicci & Larson audit contract with the City of Redwood City (City). Over the past years, we have developed an understanding of the City's operation that has aided us in providing quality audit services. With that knowledge, we've been able to expand our audit efforts and provide observations that, hopefully, have assisted City staff. We have also demonstrated our ability to respond to requests of the City and our ability to deliver a quality product. We trust the City has been satisfied with our efforts. Per your request, we are pleased to present this proposal to provide audit services the City for the years ended June 30, 2008 through 2011. The objective of our audit is to issue an opinion regarding the fairness of presentation of the City's financial position for each year in accordance with generally accepted accounting principles. The audit to be performed will follow generally accepted auditing standards, U.s. General Accounting Office's Government Auditing Standards, Single Audit Act, and OMB A-133. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436--0927 Oakland 180 Grand Ave. , Suite 1365 Oakland, California 94612 Orange County 9 Corporate Park, Suite 100 Irvine, California 92606 Sacramento 777 Campus Commons Rd., Suite 200 Sacramento, California 95825 San Diego 4858 Mercury, Suite 106 San Diego, California 92111