Fort Walton Beach Council agenda — 10-12-2010 Regular — reading text

second and then the third ranked firms. Mr. Reeves seconded motion. Mr. Nabors stated he cannot support the motion because of the way the process was handled, and does not feel comfortable with changing the process to supersede the way the process was done previously. The Mayor called for the vote on the motion and it carried by a vote of 6 to 1 with Holmes, gossom, Reeves, Minich, Rigdon, and Rynearson in favor and Nabors opposed. SETTING OF WINTER SCHEDULE The City Manager requested Council set the winter schedule for Council meetings, taking into account the Thanksgiving and Christmas holidays. Mr. Reeves moved to hold the scheduled City Council meetings of November 9 and 23 and December 14, and to cancel the City Council meeting of December 28. Mr. Minich seconded motion and it carried unanimously with Holmes, gossom, Reeves, Minich, Nabors, Rigdon, and Rynearson in favor. CITY MANAGER REPORTS The City Manager discussed the ways in which the EDC benefits both the City and County. He advised that the City applied for a $ 500, 000 grant through the Florida Defense Grant to assist in the Hurlburt Reclaim Water Model, which had to go through the EDC, and the City was informed it was awarded the grant, and he feels that is a good return on the $ 14, 000 investment. The City Manager further informed the County received $ 500,000 in grant funding, so this county received 1 million dollars in grant funding through the efforts of the EDC.  Regular Council Meeting 9 -28 -10 CITY ATTORNEY REPORTS The City Attorney stated she did not have any final reports, but that she would be meeting with Hayward Dykes to discuss the transition process and Council will receive a final status late tomorrow night. The City Attorney appreciated the opportunity she had to represent Council. MAYOR/COUNCIL COMMENTS Mr. Holmes thanked Staff and the employees for the hard work that was done during the budget process. Mr. Homes also thanked the City Attorney, and that it was an honor to serve with her these past years. Mr. Reeves stated his feeling that this Council is proactive as far as backing up the downtown merchants and has gone out of their way to improve the situation downtown. He also thanked the City Attorney for her service the past years and wished her well. Mr. Minich thanked the City Attorney. He also thanked the employees who took early retirement in order that other employees could retain their jobs with the City. Mr. Minich also discussed the Strive for 5 Editorial and urged anyone who is interested in running for Council to attend meetings so they have an understanding of what is going on. Mr. Rigdon also urged citizens to attend Council meetings, and that the City is a wonderful place and the City employees do a wonderful job. Mr. Rigdon also wished the City Attorney the best of luck in her new venture. Mr. Rynearson also thanked the City Attorney, and recognized the City employees taking early retirement. The Mayor stated he distributed an electronic version of the Florida League of Cities Survey in regards to state -wide issues including police and fire pension, property taxes, and others. The Mayor also discussed Amendment 4 which proposed all comp plan changes go before the electorate, and that he will prepare, on his own time, an opinion on Amendment 4. The Mayor stated he attended a memorial service for an airman at Hurlburt in Special Ops and that it was a very touching ceremony. The Mayor also thanked the City Attorney for her outstanding service to the City. ADJOURNMENT There being no further business, the meeting adjourned at 7: 41 pm. APPROVED: MAYOR: ATTEST: CITY CLERK lve Date completed: 10 -4 -10  CITY OF FORT WALTON BEACH MEMORANDUM DATE: September 30, 2010 TO: Bob Mearns, City Manager FROM: Brandy Wunker, Finance Director SUBJECT: Auditing Services Contract —O' Sullivan Creel 1. Background 1. 1. The City Council authorized the City Manager to negotiate a contract with O' Sullivan Creel, the number one ranked firm after evaluation of the proposals received in response to RFP 10 -022 for Auditing Services. 1. 2. O' Sullivan Creel was ranked # 1 by the audit committee. The Firm has an established performance record with the City, a clear understanding of the complexities related to the City' s audit, and a long -term relationship with the City that has demonstrated repeated availability, accessibility, and competence. 2. Discussion 2. 1. The term of the agreement will be five ( 5) years, as recommended by the Governmental Finance Officers Association ( GFOA). 2. 2. The agreement may be terminated at any time by the City. 3. Financial Information 3. 1. The City has paid the following for audit services over the past five years: FY 2008 -09 63, 934 FY 2007 -08 60, 265 FY 2006 -07 58, 509 FY 2005 -06 56, 805 FY 2004 -05 56, 805 3. 2. The FY 2010 -11 budget for this service is $ 54, 720. 3. 3. The negotiated price for each year of the initial five ( 5) year term is 51, 984, a savings over the FY 2008 -09 fee of $ 12K or 19 %, and a reduction of $2, 736 from the budgeted amount. 3. 4. There will be no reduction in level or quality of service over the previous years' audits. 4. Recommendation 4. 1. Staff respectfully requests that City Council authorize the City Manager to execute the attached agreement with O' Sullivan Creel for a five ( 5) year term in the amount of $51, 984.  CITY COUNCIL MEETING October 12, 2010 Consent Agenda Auditor Agreement Synopsis: Staffrequests approval ofafive (S) year contract with the accountingfirm of O' Sullivan Creel at a fixed cost 51, 984 each year to conduct the annualfinancial audit of $ Agenda Item Number: 81 5. Signature Block 5. 1. Submitted by: 9/ 30/ 10 Bandy Wunker, Finance Director Date October 5, 2010 5. 2. Reviewed for Agenda: obert T. Mearns, City Manager Date 6. Attachments 6. 1. O' Sullivan Creel Agreement 6. 2. GFOA Best Practices  APA'O'SULLIVAN CREEL, Certified Public. Accowztani.ti c., Cvnsvultant.s 45 Eglin Parkway, N. E, Suite 301 • Fort Walton Beach, FL 32548 • ( 850) 244 -5121 October 1, 2010 Honorable Mayor and City Council Members City of Fort Walton Beach, Florida 107 SW Miracle Strip Parkway Fort Walton Beach, Florida 32548 We are pleased to confirm our understanding of the services we are to provide the City of Fort Walton Beach, Florida for the years ended September 30, 2010, 2011, 2012, 2013, and 2014. We will audit the financial statements of the governmental presented component units, activities, the business -type activities, the aggregate discretely each major fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements, of the City of Fort Walton Beach, Florida as of and for the years ended September 30, 2010, 2011, 2012, 2013, and 2014. Accounting standards generally accepted in the United States provide for certain required supplementary information ( RSI), such as management' s discussion and analysis ( MD &A), to supplement the City of Fort Walton Beach, Florida' s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the City of Fort Walton Beach, Florida' s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management' s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1. Management' s Discussion and Analysis 2. Schedule of Funding Progress — General Employees' Retirement Fund, Police Officers' Retirement Fund, and Firefighters' Retirement Fund 3. Schedule of Contributions From the Employer and Other Contributing Entities —General Employees' Retirement Fund, Police Officers' Retirement Fund, and Firefighters' Retirement Fund Supplementary information other than RSI also accompanies the City of Fort Walton Beach, Florida' s financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole: 1. Schedule of expenditures of federal and state awards. 2. Combining and individual fund statements and schedules.  Honorable Mayor and City Council Members City of Fort Walton Beach, Florida October 1, 2010 Page two 3. Fund Statements and Schedules for the Discretely Presented Component Unit ( Fort Walton Beach Community Redevelopment Agency) The introductory and