SR-01-08-1980-6FW
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Santa Monica, California December 27, 1979
TO: Mayor and City Council
FROM: City Staff AN 8 i980
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SUBJECT: Pier Lease Audit
Introduction
This report concerns the award of bid for the Santa Monica Pier
Lease Audit. The recommended bid is in the amount of $6,800.00.
Funds for the audit will be drawn from the revolving pier account.
Background
Staff requested proposals from two hundred forty (240) certified
public accounting firms to perform a limited audit of selected aspects
of lease agreements between the City and leasees of its pier facilities.
Briefly, the firms were requested to submit proposals to; (;l)_ evaluate the
leasees' compliance with the requirement that they maintain adequate
records of their pier business activities; (2) compare gross receipts
reported to the City with the amount that should have been reported
and determine the difference, if any, and (3) recommend additional
procedures the City could implement to safeguard its interest.
A total of seventeen (17) proposals were received, ranging from a total
price of from $4,000.00 to $18,375.00. Finance Department personnel
evaluated the firms using the following criteria:
1. The firm's understanding of the job requirements.
2. The experience of its staff in performing similar audits.
3. The quality of its recommended approach and the scope of work
proposed.
4. The professional level of the staff to be assigned to the job.
5. The maximum fee that could be charged.
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VAS t9g�
T0: Mayor and City Council
Background (continued)
December 27, 1979
As a result of the evaluation, using the criteria noted above, the
firm of Main, Hurdman and Cranstoun, 707 Wilshire Boulevard, Los
Angeles, California appears to offer the City the most advantages.
It is a nationally known and respected firm that has had a considerable
amount of experience in "gross receipts" audits. The maximum fee re-
quired under this proposal is considered quite reasonable and within
$2,800.00 of the firm offering the lowest estimate of cost. (See recap
of proposal prices offered). More Senior Auditors are to be assigned
under the recommended proposal.
Recommendation
It is recommended that; (1) the City Manager be authorized to execute
an agreement with the firm, Main, Hurdman and Cranstoun to perform
an audit of the twenty -one (21) pier facility leasees in accordance
with their proposal at a total cost not to exceed. $6,800.00 and
(2) The City Council appropriate - $6,800.00 from Pier Fund reserves to
pay for such audit.
Prepared by: R.N. Aron¢f
Purchasing nt�
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SANTA MONICA PIER AUDIT
ALEXANDER GRANT
6842 Van Nuys Boulevard
Van Nuys, California 91405
QUOTE: Not to exceed $18,375.00
HENSON, STEWART AND COMPANY
523 West Sixth Street, Suite 434
Los Angeles, California 90014
QUOTE: Not to exceed $17,850.00
GOODE AND KIERNAN
11661 San Vicente Boulevard
Los Angeles, California 90049
QUOTE: Not to exceed $16,440.00
BERLFEIN AND COMPANY
2049 Century Park East, Suite 1300
Los Angeles, California 90067
QUOTE: Not to exceed $12,000.00
REINSCHREIBER, STEIN AND BOLKIN
8920 Wilshire Boulevard, Suite 610
Beverly Hills, California 90211
QUOTE: Range between $11,500.00 and $13,500.00
JOEL W. McTHOMAS, C.P.A.
1335 Lincoln Boulevard #101
Santa Monica, California 90401
QUOTE: Range between $10,500.00 and $16,800.00
SEIDMAN AND SEIDMAN
9100 Wilshire Boulevard
Beverly Hills, California 90212
QUOTE: Range between $10,000.00 - not to exceed $12,000.00
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HARRY L. NOURSE AUDIT COMPANY
409 Santa Monica Boulevard, Suite 222
Santa Monica, California 90401
QUOTE: Not to exceed $9,500.00
LINFORD, JENSEN, BRADFORD AND COMPANY
100 East Wardlow Road
Long Beach, California 90807
QUOTE: Approximate fee of $8,200.00
JAMES R. ANDERSON AND COMPANY
6842 Van Nuys Boulevard, Suite 617
Van Nuys, California 91405
QUOTE: Approximate fee of $7,875.00
LEE ACCOUNTANCY CORPORATION
2660 Townsgate Road, Suite 540
Westlake Village, California 91361
QUOTE: $6,750.00 - Not to exceed $7,400.00
MAIN, HURDMAN AND CRANSTOUN
707 Wilshire Boulevard
Los Angeles, California 90017
QUOTE: Not to exceed total fee of $6,800.00
WOOLLEY AND FRENCH
1033 Montana Avenue
Santa Monica, California 90403
QUOTE: $,6,615.00
GUILL, BLANKENBAKER AND LAWSON
260 South Los Robles Avenue
Main Post Office Box 551
Pasadena, California 91102
QUOTE: Not to exceed $6,000.00
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BAY SHERMAN AND COMPANY
2401 West Olive Avenue
Burbank, California 91506
QUOTE: Not to exceed $5,000.00
IRWIN AND COFFIE, ACCOUNTANTS
Suite 1010 - Roosevelt Building
727 West Seventh Street
Los Angeles, California
QUOTE: Not to exceed $4,500.00
HWANG AND CHUANG
707 Wilshire Boulevard
Suite 1760 UCB Building
Los Angeles, California 90017
QUOTE: Not to exceed $4,000.00 (Estimate only)
MAGINNIS, KNECHTEL AND McINTYRE
221 East Walnut Street, Suite 199
Pasadena, California 91101
QUOTE: NO BID
PRICE WATERHOUSE AND COMPANY
606 South Olive Street
Los Angeles, California 90014
QUOTE: NO BID
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