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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: January 5, 1996 <br />RE: Term of Audit Contract with Tautges, Redpath & <br />Company, Ltd. <br />MAYOR <br />Michael 1. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />At the last Council meeting, we authorized the execution of a <br />three -year contract with Tautges, Redpath & Company, Ltd. for <br />municipal audit services. After a further review of this matter <br />and based on additional discussion with Mr. Dennis Carson of <br />Olsen Thielen regarding plans his firm has for expansion into the <br />municipal audit field, I am recommending that the Council <br />reconsider their decision to award a three -year contract to <br />Tautges, Redpath. The basis for the three -year contract as <br />stated in our request for proposals was due to the possibility <br />that a new firm could have earned the contract. A three -year <br />term would offset the initial expenditure of time that would be <br />required of them to take on a new audit client. Given the fact <br />that Tautges, Redpath has had a long history with the City, this <br />factor does not apply. <br />I have discussed with Mr. Carson that the City would consider a <br />future proposal from their firm at the conclusion of our contract <br />if they demonstrated a commitment to municipal auditing and <br />provided us with a significant financial incentive. We would <br />also look favorably on job creation which could result from their <br />expansion into the municipal audit arena. Therefore, a change to <br />a one year term with Tautges, Redpath will create this <br />possibility earlier. It should also be understood any action to <br />shorten the audit term in no way guarantees Olsen Thielen that <br />they will be awarded the audit for the City of Little Canada <br />unless they demonstrate their commitment to municipal auditing. <br />According to Roberts Rules of Order, a motion to reconsider in <br />this case needs to be addressed at this meeting. The motion must <br />be made by the member who voted on the prevailing side with any <br />member of the Council being able to second it. A motion to <br />reconsider requires only a majority vote of the Council. <br />Page 68 <br />