MEMORANDUM

TO: Pete Sprague, Assembly President

Members of the Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Mark Fowler, Purchasing & Contracting Officer

Scott Holt, Finance Director

FROM: Craig Chapman, Controller

DATE: March 25, 2004

SUBJECT: Resolution 2004-033, Authorizing Award of Contract for External Audit Services

On January 19, 2004, the Kenai Peninsula Borough solicited proposals for External Audit Services. The Request for Proposals was advertised in the Peninsula Clarion and the Anchorage Daily News, and two proposals were received on the due date of February 20, 2004.

A team of administrative personnel representing the four audit areas (Borough, School District, SPH, and CPGH), as well as two assembly representatives, evaluated the proposals. Both firms submitting proposals were deemed to meet the minimum qualifications to do the work requested in the RFP. The final ranking is as follows:

FIRMS TOTAL SCORE

Mikunda, Cottrell & Company 611

KPMG, LLP 584

As specified in the Request for Proposals, the qualified firm with the highest-ranking proposal will be recommended for selection. Therefore, the attached resolution is to authorize the Mayor to award the three-year contract to Mikunda, Cottrell & Company, for a not-to-exceed cost of $292,500, and with the option to extend for two additional years.

Funding is available in Account No. 100.11110.00000.43012

241.94910.00000.43012

600.81110.00000.43012

601.81210.00000.43012