Proposal:

Award Bid for Biennial Audit of Motor Vehicle Registration Revenues for Fiscal Years 1993-94 and 1994-95.

Synopsis:

Health & Safety Code Section 44244.1 states that any agency receiving fee revenues shall at least once every two years be subject to an audit of each program or project funded. On June 14, 1996 the Board approved the release of an RFP to select an auditor to audit FYs 1993-94 and 1994-95. An evaluation panel of representatives from regional governmental agencies and AQMD Finance staff evaluated the proposals and recommended the firm of Thompson, Cobb, Bazilio & Associates for award of the contract.

Committee:

Administrative, August 23, 1996, Recommended for Approval

Recommended Action:

Award bid to Thompson, Cobb, Bazilio, & Associates for performance of the biennial audit of Motor Vehicle Registration revenues for Fiscal Years 1993-94 and 1994-95 and authorize the Chairman to execute a contract with Thompson, Cobb, Bazilio and Associates at a total cost not to exceed $72,870.

James M. Lents, Ph.D.
Executive Officer

AB 2766 was chaptered into law as Health and Safety Code Sections 44220-44247 which were enacted to authorize air pollution control districts to impose fees on motor vehicles. These fees are to be expended specifically for the purpose of mobile source air pollution reductions measures pursuant to the California Clean Air Act of 1988 or the AQMD’s AQMP pursuant to Article 5 of Chapter 5.5 of Part 3 of the Health and Safety Code. Health and Safety Code, Section 44244.1(a) requirements state that any agency receiving fee revenues shall at least once every two years be subject to an audit of each program or project funded. The audit is to be conducted by an independent auditor selected by the AQMD in accordance with Division 2 (commencing with Section 1100) of the Public Contract Code. The first biennial audit for FYs 1991-92 and 1992-93 was conducted in FY 1994 and the findings reported to the Board in January 1995.

Proposal

In accordance with the AQMD’s Consultant Selection Policy and Procedure, a public notice inviting proposals was published in the California State Contracts Register, Los Angeles Times, Orange County Register, San Bernardino Sun, Riverside Press Enterprise, La Opinion, Korea Central Daily, Rafu Shimpo, Philippine News, Los Angeles Sentinel, Eastern Group Publication, Inland Valley Daily Bulletin, Precinct Reporter, El Chicano, The Black Voice News, La Voz, Inland Empire Hispanic News, Chinese News, M/W/DVBE Source, the Purchasing RFP/RFQ 24-hour Phone Line, and the World Wide Web. A mandatory Bidders Conference to discuss and clarify the requirements of the RFP was scheduled for June 27, 1996. One hundred forty-one notices were mailed notifying firms of the proposed Request For Proposals and Mandatory Bidders Conference. Of these, 15 firms responded by attending the conference and seven proposals were submitted.

The proposals were reviewed by a five-person (1 male, 4 female) panel composed of one Senior Financial Analyst from the Orange County Transportation Authority, the Air Resources Board representative on the Mobile Source Air Pollution Reduction Review Committee (MSRC), the Air Quality Programs project manager at the Los Angeles County Metropolitan Transportation Authority, the Acting Controller and one financial analyst from the AQMD. One panel member was Hispanic, one Caucasian, two Asian Pacific American and one Asian Indian.

The evaluation results for the bidders are:

The selection criteria used to rank the proposals included technical expertise of the firm and specifically, the proposed audit team; project management and technical approach in conducting the audit; previous experience; cost; and MBE/WBE/DVBE - local business designation. While all responsive firms were well qualified to perform the required audit the panel selected the top scoring firm of Thompson, Cobb, Bazilio & Associates to be recommended to the Board.

Resource Impacts:

The total audit costs including out-of-pocket expenses are $72,870. This cost will be borne by the entities being audited as follows:

• The cost of the audit of the AQMD’s portion of motor vehicle registration revenues is $5,610. Sufficient funds are budgeted in FY 1996-97 budget in Finance to cover this cost;

• The cost of the audit of 16 projects and ISTEA match funding to four transportation commissions funded by the MSRC is $20,700 and shall be deducted from the FY 1996-97 revenues subvened to the Mobile Source Air Pollution Reduction Review Fund; and

• The total cost of the audit of local governments is up to a maximum $46,560. This cost will be borne by the entities being audited in the manner set forth in the audit program guidelines and will be deducted from quarterly fee revenues prior to distribution.

Audit program guidelines for local government recipients of fee revenues under Health and Safety Code Sections 44220-247 were prepared by the AQMD with input from the Technical Advisory Committee Audit Subcommittee of the IAIC, representatives of the Finance Committee of the League of Cities and with CPA firms whose clients include local governments. These audit guidelines were approved by the IAIC, MSRC, and by the Governing Board on December 4, 1992.