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MINUTES <br />CITY COUNCIL <br />DECENIBER 20, 1995 <br />City on a day-to-day basis, and he would defer to the <br />Administrator on this issue. Fahey stated that it <br />sounds as though Olsen Theilen bid below their cost in <br />an effort to get the business. However, this does not <br />address the level of performance or experience with <br />municipal clients. <br />Frank Frattalone expressed concern that the Council <br />would accept a bid which was not low. <br />Fahey pointed out that it is not a bid, but a proposal <br />for professional services. Fahey pointed out that the <br />auditor has a major impact on the financial direction <br />of the City. Fahey stated that for that reason he <br />believes the Mayor, Council, and Staff must have a <br />strong confidence level in its auditors. Fahey pointed <br />out that the City Administrator solicited informal <br />proposals for auditing services to determine if the <br />City was paying a competitive rate. As a result, <br />negotiations occurred with a firm that the City was <br />comfortable working with. Fahey pointed out that the <br />City is under no legal obligation to accept the low bid <br />for pro£essional services. <br />Frattalone stated that he did not care for the idea of <br />the City negotiating a price back and forth. <br />Frattalone stated that he expects the businesses he <br />deals with to give him the best price right away. <br />The Administrator stated that the difference is the <br />product which is being purchased. In auditing, you are <br />talking about a level of service. The Administrator <br />reported that with Olsen Theilen's reduction to <br />$11,000, he would definitely have to see how the <br />service would be structured. The Administrator also <br />pointed out that the City could go back to MMKR to see <br />if they would consider a reduction in cost. Tautges <br />reduced their fee based on a revision to assignments <br />similar to what MMKR proposed. <br />Pedersen asked if the Olsen Theilen personnel were of <br />lesser value than Tautges. <br />The City Administrator replied that the people are <br />equal, the issue is experience. The issue comes down <br />to municipal experience. The Administrator stated that <br />on paper he gave a lot of deference to Olsen Theilen <br />because they were local. However, in the interview <br />process when questioned on City matters, there were <br />definite differences. <br />Carson stated that olsen Theilen is a large firm which <br />15 <br />