City Council

MANISTEE CITY COUNCIL MEETING AGENDA TUESDAY, APRIL 1, 2014 – 7:00 P.M. – COUNCIL CHAMBERS I. Call to Order. a.) PLEDGE OF ALLEGIANCE. b.) ROLL CALL. II. Public Hearings. III. Citizen Comments on Agenda Related Items. IV. Consent Agenda. All agenda items marked with an asterisk (*) are on the consent agenda and considered by the City Manager to be routine matters. Prior to approval of the Consent Agenda, any member of Council may have an item from the Consent Agenda removed and taken up during the regular portion of the meeting. Consent agenda items include: V. Approval of Minutes. VI. a.) Approval of Payroll. b.) Cash Balances Report. XI. c.) Notification Regarding Next Work Session. d.) Consideration of Proclaiming April as Parkinson’s Disease Awareness Month. At this time Council could take action to approve the Consent Agenda as presented. *V. Approval of Minutes. Approval of the minutes of the March 17, 2014 regular meeting as attached. CITY COUNCIL AGENDA – APRIL 1, 2014 PAGE 1 VI. Financial Report. *a.) APPROVAL OF PAYROLL. *b.) CASH BALANCES REPORT. VII. Unfinished Business. VIII. New Business. a.) CONSIDERATION OF A RESOLUTION, MDNR WATERWAYS GRANT FOR MARINA DREDGING PROJECT. Originally the City was awarded a grant in the amount of $24,000 from the Michigan Department of Natural Resources Waterways Division for dredging at the Municipal Marina. Bids came in higher than expected and the State of Michigan authorized additional money for this project at a not to exceed amount of $65,000. This addendum to the original award is necessary in order to draw down the funds for the project. The project was awarded to Swidorski Brothers in December for a spring project. There is no City match. At this time Council could take action to accept the agreement addendum from the Michigan Department of Natural Resources accepting the not to exceed amount of $65,000 for dredging at the Municipal Marina; and further authorize the Mayor and City Clerk to execute the documents. b.) CONSIDERATION OF ENTERING INTO A FIVE-YEAR AGREEMENT WITH ANDERSON TACKMAN & COMPANY, PLC CPA TO CONDUCT CITY AND DDA ANNUAL AUDIT. The City’s contract with Gabridge and Co. for the City and DDA audit has expired. The City issued a Request for Proposals for auditing services. Ten firms responded. Anderson Tackman & Company, PLC CPA was the low responsible bidder. They bid a total of $46,750 for five years of conducting the base audit, $8,250 for five years of conducting the DDA audit, and $2,500 per year to conduct a single audit, it needed. The City Attorney has prepared and approved a contract for these services. At this time Council could take action to enter into a five-year agreement with Anderson Tackman & Company, PLC CPA to conduct the City and DDA audit. CITY COUNCIL AGENDA – APRIL 1, 2014 PAGE 2 IX. Notices, Communications, Announcements. a.) A REPORT FROM THE HOUSING COMMISSION AND THE COUNTY PROSECUTOR. A regular part of each Council meeting is a report from a cooperating agency, organization or department. At this time Mr. Clinton McKinven-Copus will report on the activities of the Manistee Housing Commission and respond to any questions the Council may have regarding their activities. At this time Mr. Ford Stone will report on the activities of the Manistee County Prosecutor’s Office and respond to any questions the Council may have regarding their activities. No action is required on this item. b.) INTRODUCTION OF THE FISCAL YEAR 2014-2015 BUDGET. Administration has prepared the proposed 2014-2015 Fiscal Year Budget. City Manager Mitch Deisch and Finance Director Ed Bradford will give a brief introduction of the budget recommendations to City Council and the Community. Various budget work sessions have been established: a regular work session on Tuesday, April 8; a work session on Tuesday, April 15; and optional work sessions on Tuesday, April 22 and Tuesday, April 29, 2014. The public hearing to review these budget recommendations and receive public input on them has been scheduled for Tuesday, April 15, 2014. Budget adoption is anticipated at the regular meeting of May 6, 2014. No action is required on this item. *c.) NOTIFICATION REGARDING NEXT WORK SESSION. A Council work session has been scheduled for Tuesday, April 8, 2014 at 7 p.m. A discussion will be conducted on the 2014-2015 Budget Recommendations; and such business as may come before the Council. No action is required on this item. CITY COUNCIL AGENDA – APRIL 1, 2014 PAGE 3 *d.) CONSIDERATION OF PROCLAIMING APRIL AS PARKINSON’S DISEASE AWARENESS MONTH. The Manistee County Parkinson’s Support Group has requested that the City of Manistee proclaim the month of April as Parkinson’s Disease Awareness Month. At this time Council could take action to proclaim April as Parkinson’s Disease Awareness Month and authorize the City Clerk to sign the proclamation. X. Concerns and Comments. a.) CITIZEN COMMENT. This is an opportunity for citizens to comment on municipal services, activities or areas of City involvement. Citizens in attendance shall be recognized by the Mayor for comments (limited to five minutes). Letters submitted to Council will not be publicly read. b.) OFFICIALS AND STAFF. c.) COUNCILMEMBERS. XI. Adjourn. MDD:cl COUNCIL AGENDA ATTACHMENTS: Council Meeting Minutes – March 17, 2014 Cash Balances Report MDNR Waterways Grant Agreement Resolution Audit Bid Contract & Related Documents Parkinson’s Awareness Month Proclamation CITY COUNCIL AGENDA – APRIL 1, 2014 PAGE 4  PROCEEDINGS OF THE MANISTEE CITY COUNCIL – MARCH 17, 2014 A regular meeting of the Manistee City Council was called to order by her Honor, Mayor Pro Tem Catherine Zaring on Monday, March 17, 2014 at 7:00 p.m. in the City of Manistee Council Chambers, 70 Maple Street, followed by the Pledge of Allegiance. PRESENT: Edward Cote, Robert Hornkohl, Chip Goodspeed, Catherine Zaring, Mark Wittlieff, and Eric Gustad. ABSENT: Colleen Kenny ALSO PRESENT: City Manager – Mitch Deisch, City Attorney – George Saylor, City Deputy Clerk – Mary Bachman, and Director of Public Safety – Dave Bachman. CITIZEN COMMENTS ON AGENDA RELATED ITEMS. None received. CONSENT AGENDA. Minutes - March 4, 2014 - Regular Meeting March 11, 2014 - Work Session Payroll - no report Notification Regarding Next Work Session. A Council Work Session has been scheduled for Tuesday, April 8, 2014 at 7 p.m. A discussion will be conducted on the 2014-2015 Budget Recommendations; and such business as may come before the Council. MOTION by Hornkohl, second by Cote to take action to approve the Consent Agenda as presented. With a roll call vote this motion passed unanimously. AYES: Cote, Hornkohl, Goodspeed, Zaring, Wittlieff, and Gustad. NAYES: None A REPORT FROM THE MANISTEE AREA CHAMBER OF COMMERCE. A regular part of each Council meeting is a report from a cooperating agency, organization or department. Ms. Stacie Bytwork reported on the activities of the Manistee Area Chamber of Commerce and responded to questions the Council had regarding their activities. CITIZEN COMMENT. Ed Seng - 448 E. Kott Road, Owner and Operator of Seng Trucking made reference to the March 6, 2014 Planning Commission Meeting at which he made a request for a Zoning Amendment. He requested to either be placed on the Work Session Agenda or sit down and speak with Administration and some Council Members. Discussion followed. OFFICIALS AND STAFF. None received. COUNCILMEMBERS. Cote wished everyone a Happy St. Patrick’s Day. Hornkohl stated that he will be gone for the April 1, 2014 Council Meeting. Goodspeed stated that he will also be gone for the April 1, 2014 Council Meeting. MOTION to adjourn was made by Goodspeed, second by Cote. Meeting adjourned at 7:40 p.m. Mary Bachman, CMC/MMC, LIA Deputy City Clerk/Payroll & Benefits  CASH TRANSACTIONS REPORT DRAFT Page: 1 MONTH: FEBRUARY 3/26/2014 City of Manistee 12:58 pm Account Number Beginning Balance Debit Credit Ending Balance Fund: 101 - GENERAL FUND Dept: 000 001.000 Cash 1,470,102.08 156,222.05 390,366.62 1,235,957.51 001.002 Cash - Escrow 87,723.31 0.00 5,200.00 82,523.31 004.000 Cash - Petty 800.00 0.00 0.00 800.00 017.000 MBIA Mi Class Inv 57,152.57 0.00 0.00 57,152.57 Total Dept: 000 1,615,777.96 156,222.05 395,566.62 1,376,433.39 Fund: 101 1,615,777.96 156,222.05 395,566.62 1,376,433.39 Fund: 202 - MAJOR STREET FUND Dept: 000 001.000 Cash 105,584.25 29,330.82 62,367.62 72,547.45 Total Dept: 000 105,584.25 29,330.82 62,367.62 72,547.45 Fund: 202 105,584.25 29,330.82 62,367.62 72,547.45 Fund: 203 - LOCAL STREET FUND Dept: 000 001.000 Cash 34,330.27 20,539.27 43,953.29 10,916.25 Total Dept: 000 34,330.27 20,539.27 43,953.29 10,916.25 Fund: 203 34,330.27 20,539.27 43,953.29 10,916.25 Fund: 204 - STREET IMPROVEMENT FUND Dept: 000 001.000 Cash 25,940.53 0.00 0.00 25,940.53 Total Dept: 000 25,940.53 0.00 0.00 25,940.53 Fund: 204 25,940.53 0.00 0.00 25,940.53 Fund: 226 - CITY REFUSE FUND Dept: 000 001.000 Cash 114,523.12 16,185.86 3,500.00 127,208.98 001.030 Cash Mgt Chk 98,893.43 0.00 0.00 98,893.43 Total Dept: 000 213,416.55 16,185.86 3,500.00 226,102.41 Fund: 226 213,416.55 16,185.86 3,500.00 226,102.41 Fund: 243 - BROWNFIELD REDEVELOPMENT AUTHO Dept: 000 001.000 Cash 21,759.67 0.00 0.00 21,759.67 Total Dept: 000 21,759.67 0.00 0.00 21,759.67 Fund: 243 21,759.67 0.00 0.00 21,759.67 Fund: 245 - OIL & GAS FUND Dept: 000 001.000 Cash 86,826.77 8,489.35 0.00 95,316.12 001.020 Money Market 194,892.03 0.00 0.00 194,892.03 Total Dept: 000 281,718.80 8,489.35 0.00 290,208.15 Fund: 245 281,718.80 8,489.35 0.00 290,208.15 Fund: 249 - BUILDING INSPECTOR Dept: 000 001.000 Cash 8,523.04 219.00 50.00 8,692.04 Total Dept: 000 8,523.04 219.00 50.00 8,692.04 Fund: 249 8,523.04 219.00 50.00 8,692.04  CASH TRANSACTIONS REPORT DRAFT Page: 2 MONTH: FEBRUARY 3/26/2014 City of Manistee 12:58 pm Account Number Beginning Balance Debit Credit Ending Balance Fund: 251 - EPA GRANT - PETROLEUM Dept: 000 001.000 Cash -4,265.00 0.00 0.00 -4,265.00 Total Dept: 000 -4,265.00 0.00 0.00 -4,265.00 Fund: 251 -4,265.00 0.00 0.00 -4,265.00 Fund: 252 - EPA GRANT - HAZARDOUS Dept: 000 001.000 Cash -4,429.97 0.00 0.00 -4,429.97 Total Dept: 000 -4,429.97 0.00 0.00 -4,429.97 Fund: 252 -4,429.97 0.00 0.00 -4,429.97 Fund: 275 - GRANT MANAGEMENT FUND Dept: 000 001.000 Cash -6,894.99 1,200.00 0.00 -5,694.99 Total Dept: 000 -6,894.99 1,200.00 0.00 -5,694.99 Fund: 275 -6,894.99 1,200.00 0.00 -5,694.99 Fund: 290 - PEG COMMISSION Dept: 000 001.000 Cash 12,447.62 1,430.88 6,500.00 7,378.50 Total Dept: 000 12,447.62 1,430.88 6,500.00 7,378.50 Fund: 290 12,447.62 1,430.88 6,500.00 7,378.50 Fund: 296 - RAMSDELL THEATRE Dept: 000 001.000 Cash -9,216.03 41,855.76 30,159.80 2,479.93 004.000 Cash - Petty 500.00 0.00 0.00 500.00 Total Dept: 000 -8,716.03 41,855.76 30,159.80 2,979.93 Fund: 296 -8,716.03 41,855.76 30,159.80 2,979.93 Fund: 297 - FRIENDS OF THE RAMSDELL Dept: 000 001.000 Cash 1,657.43 0.00 0.00 1,657.43 Total Dept: 000 1,657.43 0.00 0.00 1,657.43 Fund: 297 1,657.43 0.00 0.00 1,657.43 Fund: 430 - CAPITAL IMPROVEMENT FUND Dept: 000 001.000 Cash 254,757.46 0.00 27,494.68 227,262.78 Total Dept: 000 254,757.46 0.00 27,494.68 227,262.78 Fund: 430 254,757.46 0.00 27,494.68 227,262.78 Fund: 490 - RENAISSANCE PARK Dept: 000 001.000 Cash 2,970.31 0.00 0.00 2,970.31 Total Dept: 000 2,970.31 0.00 0.00 2,970.31 Fund: 490 2,970.31 0.00 0.00 2,970.31 Fund: 508 - BOAT RAMP FUND Dept: 000 001.000 Cash 1,655.67 40.00 250.00 1,445.67 004.000 Cash - Petty 1.00 0.00 0.00 1.00  CASH TRANSACTIONS REPORT DRAFT Page: 3 MONTH: FEBRUARY 3/26/2014 City of Manistee 12:58 pm Account Number Beginning Balance Debit Credit Ending Balance Total Dept: 000 1,656.67 40.00 250.00 1,446.67 Fund: 508 1,656.67 40.00 250.00 1,446.67 Fund: 573 - WATER & SEWER UTILITY Dept: 000 001.000 Cash 461,130.91 288,817.94 170,225.77 579,723.08 001.002 Cash - Escrow 34,400.00 600.00 600.00 34,400.00 004.000 Cash - Petty 300.00 0.00 0.00 300.00 017.000 MBIA Mi Class Inv 488,687.14 0.00 0.00 488,687.14 Total Dept: 000 984,518.05 289,417.94 170,825.77 1,103,110.22 Fund: 573 984,518.05 289,417.94 170,825.77 1,103,110.22 Fund: 594 - MARINA FUND Dept: 000 001.000 Cash 1,758.67 5,476.92 3,981.37 3,254.22 Total Dept: 000 1,758.67 5,476.92 3,981.37 3,254.22 Fund: 594 1,758.67 5,476.92 3,981.37 3,254.22 Fund: 661 - MOTOR POOL FUND Dept: 000 001.000 Cash 390,099.17 46,666.68 0.00 436,765.85 001.002 Cash - Escrow 271,273.24 0.00 0.00 271,273.24 Total Dept: 000 661,372.41 46,666.68 0.00 708,039.09 Fund: 661 661,372.41 46,666.68 0.00 708,039.09 Fund: 703 - CURRENT TAX COLLECTION Dept: 000 001.000 Cash 242,214.62 332,451.73 532,831.23 41,835.12 Total Dept: 000 242,214.62 332,451.73 532,831.23 41,835.12 Fund: 703 242,214.62 332,451.73 532,831.23 41,835.12 Fund: 704 - PAYROLL CLEARING FUND Dept: 000 001.000 Cash 25,203.31 462,662.13 458,885.11 28,980.33 001.005 Cash - NEW Flex \ HRA 10,461.84 12,157.97 12,201.48 10,418.33 001.007 Cash - Federal & State Taxes 3.58 57,035.92 57,035.92 3.58 Total Dept: 000 35,668.73 531,856.02 528,122.51 39,402.24 Fund: 704 35,668.73 531,856.02 528,122.51 39,402.24 Fund: 705 - DELINQUENT TAX COLLECTION Dept: 000 001.000 Cash 3,423.62 0.00 0.00 3,423.62 Total Dept: 000 3,423.62 0.00 0.00 3,423.62 Fund: 705 3,423.62 0.00 0.00 3,423.62 Grand Totals: 4,485,190.67 1,481,382.28 1,805,602.89 4,160,970.06  erso n, Y eo Bert & Hoo & Sebe ha m evel d ridge And Vred LC, is hiau Abra , PC Denn & rews o PC man an Gab ., PC ner L And Tack PLC Haef 's and Rehm n & s, land & Ye , me & r T an CPA nts ney avlik Gart Gaff pany so per P LC Com Co C o. PLC Consulta R ob P Nier garth Audit 2014 $ 8,500 $ 12,510 $ 12,500 $ 13,000 $ 13,000 $ 14,900 $ 17,000 $ 19,000 $ 24,800 $ 24,000 2015 $ 9,000 $ 12,510 $ 12,875 $ 13,200 $ 13,300 $ 15,150 $ 17,500 $ 19,500 $ 25,000 $ 25,000 2016 $ 9,250 $ 12,510 $ 13,265 $ 13,400 $ 13,600 $ 15,400 $ 18,000 $ 20,000 $ 25,700 $ 26,000 2017 $ 9,750 $ 12,510 $ 13,665 $ 13,600 $ 13,900 $ 15,650 $ 18,500 $ 20,500 $ 26,400 $ 27,000 2018 $ 10,250 $ 12,510 $ 14,075 $ 13,800 $ 14,200 $ 15,800 $ 19,000 $ 21,000 $ 27,100 $ 28,000 5 Year Cost $ 46,750 $ 62,550 $ 66,380 $ 67,000 $ 68,000 $ 76,900 $ 90,000 $ 100,000 $ 129,000 $ 130,000 5 Year Difference $ - $ 15,800 $ 19,630 $ 20,250 $ 21,250 $ 30,150 $ 43,250 $ 53,250 $ 82,250 $ 83,250 0.0% 33.8% 42.0% 43.3% 45.5% 64.5% 92.5% 113.9% 175.9% 178.1% Single Audit 2014 $ 2,500 $ 1,500 $ 3,000 $ 3,000 $ 2,750 $ 2,750 $ 3,500 $ 2,500 $ 4,800 $ 2,000 2015 $ 2,500 $ 1,500 $ 3,100 $ 3,050 $ 3,000 $ 2,750 $ 3,600 $ 2,500 $ 5,000 $ 2,000 2016 $ 2,500 $ 1,500 $ 3,200 $ 3,100 $ 3,250 $ 2,750 $ 3,700 $ 2,500 $ 5,100 $ 2,000 2017 $ 2,500 $ 1,500 $ 3,300 $ 3,150 $ 3,400 $ 2,750 $ 3,800 $ 2,500 $ 5,200 $ 2,000 2018 $ 2,500 $ 1,500 $ 3,400 $ 3,200 $ 3,600 $ 2,750 $ 3,900 $ 2,500 $ 5,400 $ 2,000 5 Year Cost $ 12,500 $ 7,500 $ 16,000 $ 15,500 $ 16,000 $ 13,750 $ 18,500 $ 12,500 $ 25,500 $ 10,000 5 Year Difference $ - $ (5,000) $ 3,500 $ 3,000 $ 3,500 $ 1,250 $ 6,000 $ - $ 13,000 $ (2,500) 0.0% -40.0% 28.0% 24.0% 28.0% 10.0% 48.0% 0.0% 104.0% -20.0% Total 5 Year Cost $ 59,250 $ 70,050 $ 82,380 $ 82,500 $ 84,000 $ 90,650 $ 108,500 $ 112,500 $ 154,500 $ 140,000 (assumes single audit every year) $ - $ 10,800 $ 23,130 $ 23,250 $ 24,750 $ 31,400 $ 49,250 $ 53,250 $ 95,250 $ 80,750 0.0% 18.2% 39.0% 39.2% 41.8% 53.0% 83.1% 89.9% 160.8% 136.3% DDA 2014 $ 1,500 $ 2,500 $ 3,500 $ 4,000 $ 4,500 $ 3,250 $ 3,500 $ 5,000 $ 4,900 $ 2,500 2015 $ 1,500 $ 2,500 $ 3,600 $ 4,050 $ 4,600 $ 3,400 $ 3,700 $ 5,200 $ 5,000 $ 2,500 2016 $ 1,750 $ 2,500 $ 3,700 $ 4,100 $ 4,700 $ 3,550 $ 3,900 $ 5,400 $ 5,100 $ 2,500 2017 $ 1,750 $ 2,500 $ 3,800 $ 4,150 $ 4,800 $ 3,700 $ 4,100 $ 5,600 $ 5,200 $ 2,500 2018 $ 1,750 $ 2,500 $ 3,900 $ 4,200 $ 4,900 $ 3,950 $ 4,300 $ 5,800 $ 5,400 $ 2,500 $ 8,250 $ 12,500 $ 18,500 $ 20,500 $ 23,500 $ 17,850 $ 19,500 $ 27,000 $ 25,600 $ 12,500 County of Manistee, State of Michigan Request for Proposal For Auditing Services For the Fiscal Years 2014 to 2018 INTRODUCTION General Information The City of Manistee is requesting proposals from qualified firms of Certified Public Accountants to audit its financial statement for the fiscal years ending June 30, 2014 thru June 30, 2018. This engagement will also include auditing the City of Manistee Downtown Development Authority as a separate audit for the same fiscal years, and Federal single audit(s) as needed. There is no expressed or implied obligation for the City of Manistee to reimburse responding firms for any expenses incurred in preparing proposals in response to this request. During the evaluation process, the City reserves the right to retain all proposals submitted and to use any ideas in the proposals regardless of whether the proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal, unless clearly and specifically noted by the firm selected and agreed to by the City. Term of Engagement A five-year contract is contemplated, subject to annual review by the Chief Financial Officer, the satisfactory negotiation of terms (including a price acceptable to both the City of Manistee and the selected firm) and the concurrence of the City Council. In the event of a merger of the audit firm with another firm of certified public accountants or the change of partners to the audit firm, this contract will be transferable to the successor firm with the approval of the City. This agreement shall not be assigned or transferred without the written approval of the City of Manistee. 2 DESCIPTION OF THE GOVERNMENT Principal Contact The auditor’s principal contact with the City of Manistee will be: Edward Bradford (231) 398-2804 Chief Financial Officer ebradford@manisteemi.gov 70 Maple Street www.manisteemi.gov Manistee, MI 49660 Background Information The City of Manistee is located between Lake Michigan and Manistee Lake in Manistee County. Located at the confluence of the Big and Little Manistee Rivers, the City boasts one of the best deep water ports on Lake Michigan. Freighters can often be seen navigating the river channel between Lake Michigan and Manistee Lake. Known as the Victorian Port City, the community of 6,600 is rich in history and culture. It enjoys a diverse economy with a mixture of tourism, retail and manufacturing all contributing. The downtown is spectacular, with River Street supporting many businesses and boutiques. The Riverwalk flanking the south side of the Manistee River attracts many visitors each year, as do its wide, clean beaches. Manistee is also perennial Tree City USA and is world renown for its excellent sports fishing. The City has approximately 56 full-time equivalent employees and several on a seasonal basis. It maintains a full-time Police and Fire | EMS Department and operates a water & sewer utility, municipal marina, boat launch and the historic Ramsdell Theatre. The City also provides essential municipal services such as street maintenance, parks, building & rental inspection, planning & zoning and general administration. To help familiarize you with the City’s funds and finances, City financial information can be found at: www.manisteemi.gov/finances The City of Manistee Financial Services\Clerk Department(s) provides the budgetary, accounting, auditing, information system, purchasing, payroll, utility billing, collections and accounts payable functions. The departments have a staff of 4 full time employees. It utilizes Tyler Technologies Fund Balance as its primary accounting software. BS&A software is used for tax and delinquent tax collection. 3 SCOPE OF WORK TO BE PERFORMED General To meet the requirements of this request for proposal, the audits shall be performed in accordance with generally accepted auditing standards (GAAS) as set forth by the American Institute of Certified Public Accountants (AICPA), the standards applicable to financial audits contained in Government Auditing Standards as issued by the U.S. Government Accountability Office (GAO), the provisions of the U.S. Office of Management and Budget (OMB) Circular A- 133, and all other applicable State of Michigan or federal standards. The City of Manistee desires the auditor to express an opinion on the fair presentation of its financial statements in conformity with generally accepted accounting principles (GAAP). These audits will need to address the requirements of and be in compliance with all of the following:  Applicable State of Michigan requirements  Applicable Federal Requirements  Applicable requirements under GAAP  Any other applicable requirements The auditors shall also be responsible for preparing the supplementary information required by the Government Accounting Standards Board (GASB) as mandated by GAAS. They shall also prepare a stand-alone, plain language, descriptive summary of the results of the City audit (separate from the MD&A) as a tool to aid in understanding the audit results. Additionally, the auditor will be responsible for preparing other supplementary schedules as required or requested by the Chief Financial Officer. The auditors shall provide to the City all audit adjustments including appropriate backup documents and will meet with staff, if requested, to discuss these final adjustments. The auditor will be available to answer reasonable questions that may arise on financial and compliance matters without additional cost to the City during the course of the year. Component Units The City has four component units, the Downtown Development Authority (discrete), the Friends of the Ramsdell (discrete), the City of Manistee Brownfield Redevelopment Authority (blended) and the Manistee Housing Commission (discrete). The City maintains the books and records for the Friends of the Ramsdell and City of Manistee Brownfield Redevelopment Authority. The DDA maintains its own books. The Manistee Housing Commission maintains its own books and hires their own independent auditor. 4 City Audit Committee Auditors will be required to meet with the City’s audit committee prior to, during and after the audit, as needed. Irregularities and Illegal Acts Auditors shall be required to make an immediate, written report of all irregularities and if illegal acts or indications of illegal acts of which they become aware to the Chief Financial Officer and City Manager. Reports to be Issued Following the completion of the audit of the fiscal year’s financial statements, the auditor shall issue a report on the fair presentation of the general-purpose financial statements in conformity with generally accepted accounting principles. The auditor shall prepare the following report at the completion of the audit: 1. Compiled and Audited Financial Statements (CAFS): Compiled and Audited Financial statements for the City including all funds, account groups and applicable component units. The auditor will prepare all financial statements, schedules, supplementary information and notes to the financial statements. 2. Management Discussion and Analysis: The auditor will work with the City on an acceptable format and will update all charts, graphs, tables and figures. The City will provide the narrative\explanatory information. 3. A stand-alone, plain language, explanatory summary of the results of the City audit (separate from the MD&A) as a tool to aid the Council and public in understanding the audit results. 4. State of Michigan auditing procedures report. 5. A report on the financial statements, internal control and compliance in accordance with the audit guide and standards for compliance with the Single Audit Act, as may be required. 6. Any supplemental reports, schedules or other required by the State of Michigan, Federal Government, GASB or GAAP, including the F-65. 7. A management report containing comments and recommendations regarding a municipality’s system of internal controls: its methods of safeguarding its assets, ensuring the accuracy of its financial information, promoting efficiency and adhering to municipal policies. This letter should contain comments and recommendations for controlling any internal weaknesses discovered and shall be reviewed by the CFO before finalizing. 5 8. Other mandatory or required reports. Working Paper Retention and Access to Working Papers Records and documents pertaining to the City of Manistee audit will become the property of the City. All working papers and reports must be retained, at the auditor’s expense, for a minimum of 5 calendar years after completion of the audit, unless the firm is notified in writing by the City of Manistee of the need to extend the retention period. The auditor will be required to make any and all working papers available, upon requested, to the City of Manistee. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. AUDIT SCHEDULE AND REPORT REQUIRMENTS Audit Calendar The auditors must be able to substantially adhere to the following timeline for the audit; with the understanding that the earlier the audit can be completed, the better: Pre-Audit Meeting with City by mid-June Preliminary and field work completed by no later than the end of August Draft reports completed by no later than mid to late-September Final reports by no later than early October Presentation of Audit by no later than the second Tuesday in October If the proposing firm sees any problem with meeting this schedule, it should be noted in the proposal with an alternate schedule. All filing deadlines for the CAFS and other reports shall be adhered to. Report and Other Requirements The independent auditor shall type, reproduce and assemble the following reports and submit as noted: 1. Ten (10) copies of the CAFS; 2. Submission of CAFS with the State of Michigan as required; 3. Ten (10) copies of the Single Audit Report (included with CAFS), if needed; 4. Management Letter (included in CAFS) 5. Other required reports 6. High quality Adobe PDF file of the CAFS and all other reports, letters and findings. 6 ASSISTANCE TO BE PROVIDED TO THE AUDITOR Finance Department and Clerical Assistance The Finance Department staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the Auditor. PROPOSAL REQUIREMENTS Deadlines to Submit Proposal Completed proposals must be received by 12:00 noon, Monday March 3, 2014. Council action to award bids is expected on Tuesday, March 18, 2014. Submittal Requirements The proposal (4 copies) shall be labeled clearly with: Request for Auditing Proposals and addressed to: City of Manistee Attn: Edward Bradford 70 Maple Street Manistee, MI 49660 The proposal shall also be emailed in PDF format to ebradford@manisteemi.gov by the deadline. Firm Information The proposal shall list the legal name of the firm, its address and phone number, the type of firm (LLC, Corporation, etc.) and how long it has been in business and firm history. Provide proof that the firm is licensed to conduct business in Michigan. Firm Qualifications, Experiences and References The proposal should state the size of the firm, the size of the firm’s governmental audit staff and the location of the office from which the work on this engagement is to be performed. Please identify (for the firm’s office and personnel that will be assigned responsibility for the audit) the most significant engagements performed in the past three years that are similar to the engagement described in this request for proposal. Indicate the scope of work provided and the name and telephone number of the principal client contact. 7 Staff Experience The proposal should provide the number of the professional staff to be employed in this engagement. Identify the principal supervisory and management staff including engagement partners, managers, other supervisors and staff, who would be assigned to the audit. Provide information on the length and type government auditing experience of each person, relevant education, degrees, certifications and status of current continuing education requirements. Independence The firm should provide an affirmative statement that it is independent of the City of Manistee as defined by GAAS and Government Accounting Standards. External Quality Control Review\Peer Review The firm shall submit a copy of its most recent external quality control peer review report. Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated audit problems, the firm’s approach to resolving these problems and any special assistance that will be requested from the City. Conflict of Interest List and describe the firm’s professional relationships with the City or any of its agencies for the past five years (if any) and include a statement explaining why such relationship does not constitute a conflict of interest relative to performing the proposed audit and/or compilation engagement. Further, the selected firm shall give the City written notice of any professional relationships entered into during the period of this agreement or subsequent renewal that would constitute a conflict of interest. Price for Services Attachment A must be completed and signed. Attachment A’s price(s) should specify all pricing information relative to performing the audit engagement as described in this request for proposal. The price(s) shall be all inclusive and shall include all direct and indirect costs including all out-of-pocket expenses and travel. Manner of Payment For the City, two payments will be made to the audit firm. The first will be made on the basis of hours of work completed during the course of the engagement and will approximate the half- way point of the engagement. The second will be made after the engagement is completed and all reports have been issued. It is the firm’s responsibility to bill for these payments. The firm shall bill the DDA separately. Other Please include any other information that you think would be helpful in allowing the City of Manistee to make an informed decision in the selection process. Focus on the evaluation criteria. 8 EVALUATION CRITERIA Mandatory Elements 1. The audit firm is independent and licensed to practice in the States of Michigan. 2. The audit firm’s professional personnel are adequately trained and have received adequate continuing professional education within the preceding three years. 3. The firm has no conflicts of interest with regard to any other work performed by the firm for the City of Manistee. 4. The firm has an acceptable external quality control review and a record of quality audit work. 5. The firm demonstrates an understanding of the specific needs of the City of Manistee as it relates to the audit engagement. 6. The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal. Technical Qualifications 1. The firm exhibit expertise based on past experience and performance on comparable government engagements. 2. The quality of the firm’s professional personnel to be assigned to the engagement. Price Consideration Cost will be an important, but not primary, factor in the selection of an audit firm. Final Selection The City of Manistee will select a firm based upon its review of the proposals submitted. The City may request clarification of any items in the proposal. Right to Reject Proposals Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Manistee and the firm selected. The City of Manistee reserves the right without prejudices to reject any or all proposals. 9  ATTACHMENT A REQUEST FOR PROPOSAL AUDITING SERVICES Firm Submitting Proposal: Proposed Fee: Fiscal Year Audit & Reports Single Audit DDA 2014 2015 2016 2017 2018 Signature of Authorized Representative Date Print Name Title 10