sr-042710-1gCity Council Meeting: April 27, 2010
Agenda Item: ~G
To: Mayor and City Council
From: Barbara Stinchfield, Director of Community and Cultural Services
Subject: Professional Services Agreement with Levitt & Rosenblum, CPAs to
provide professional assurance services for the City's Community
Development Program
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a professional services agreement with Levitt & .Rosenblum, CPAs for
professional assurance services for the Gity's Community Development (CD) Program
in an amount not to exceed $150,000 for afive-year term.
Executive Summary
The City's FY 2009-10 CD Program provides funding support of approximately $7.8
million to 27 non-profit human service and housing development organizations
supporting over 50 different programs. The City of Santa Monica engages an
independent accounting firm to evaluate accounting and internal control systems,
monitor for program compliance and to conduct fiscal evaluations of non-profit
organizations funded by the City's CD Program: In January 2010, the City issued a
Request for Proposals (RFP) for professional assurance services for the City's CD
Program. Levitt & Rosenblum, Certified Public Accounts (CPAs) is recommended fo
provide professional assurance services and fiscal evaluations of City-funded non-profit
organizations. The services will be on an as-needed basis as required by staff during
the term of the agreement. The total cost of the services for afive-year term will be
$150,000.
Discussion
The City's CD Program provides operating and one-time. grants to non-profit
organizations to improve the quality of life for Santa Monica residents, with. an emphasis
on those who are low or moderate income or have special needs. To monitor for
program compliance, the City engages an independent accounting firm to evaluate
accounting and internal control systems of City-funded non-profit organizations. In
January 2010, the City issued a Request for Proposals (RFP) for professional
1
assurance services for the City's CD Program. The RFP was made available to all
interested firms and posted on Planet Bids from January 19 -February 11, 2010. Four
proposals were received at the close of the RFP process. The proposals were reviewed
and evaluated by a selection committee comprised of representatives from the
Community & Cultural Services Department (Human Services Division) and the Finance
Department. The proposals were evaluated based upon each firm's experience, quality
of professional personnel, their ability to test accounting systems and procedures of
non-profit organizations, their ability to report findings and recommend corrections, and
the overall price for providing the assurance services. Based upon this evaluation
process, the committee recommends that Levitt & Rosenblum, Certified Public Accounts
(CPAs) be awarded the contract because of the firm's experience monitoring. and
evaluating fiscal, accounting and internal control systems of government funded non-
profit organizations, their fiscal review approach and .methodology for evaluating
systems and reporting findings, and their price, as they are the lowest bidder.
Additionally, the services engagement will be lead by one of the firm's two partners, this
will insure management involvement. at all levels of the engagement. Levitt &
Rosenblum, CPAs specializes in auditing, accounting, taxation, training and consulting
for non-profit organizations, including governmental agencies, social service providers,
affordable housing developers, environmental agencies, and low-income housing
partnerships. The partners of Levitt & Rosenblum have been practicing public
accounting for thirty-years in the Los Angeles area. In addition, Levitt & Rosenblum,
CPAs has been conducting fiscal evaluations of City-funded non-profit organizations for
the City of Santa Monica for over 15 years. The term of the agreement will begin in July
2010 and is expected to be completed in June 2015. The Finance Department will
assume responsibility and take the lead on administration of the professional services
agreement with Levitt & Rosenblum.
2
Financial impacts ~ Budget Actions
The annual cost of the services will be $30,000. Funds for these services will be
included in the FY10l11 Proposed Budget in account 012621.555060. Funding for
subsequent years will be included in future years' Proposed Budget and are subject to
Council's approval
Prepared by: Jaime Fiallos, Administrative Analyst
Approved:
Barbara Stinchfield
Director, Community and Cultural
Services
Forwarded to Council:
`°~'-
Rod Gould
City Manager
3
Reference Contract No.
9202 (CCS).