HomeMy WebLinkAbout2010/12/20 - ADMIN - Minutes - City Council - Study Session f/fSt. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
DECEMBER 20,2010
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Pro Tern Susan Sanger, Phil Finkelstein, Anne Mavity, Paul
Omodt, Julia Ross, and Sue Santa.
Councilmembers absent: Mayor Jeff Jacobs.
Staff present: City Manager(Mr. Harmening), Deputy City Manager/Human Resources Director
(Ms. Gohman), Controller (Mr. Swanson), Finance Supervisor (Mr. Heintz), and Recording
Secretary(Ms. Hughes).
Guests: David Mol, CPA, and Andrew Hering, CPA(HLB Tautges Redpath, Ltd.)
1. Meet with Proposed City Audit Firm Representatives
Mr. Heintz presented the staff report and stated that pursuant to Council direction, staff requested
proposals for auditing services for fiscal year end 2010 and concluded that HLB Tautges
Redpath, Ltd. would provide the best overall service to the City. He then introduced David Mol,
CPA, and Andrew Hering, CPA,with HLB Tautges Redpath, Ltd.
Mr. Mol presented an overview of HLB Tautges Redpath, Ltd. and the audit team for the City,
including himself, Peggy Moeller, and Andrew Hering. He discussed how the firm would
approach the City's audit, including minimizing risk, and Tautges Redpath's commitment to
client service and a dedicated staff who deal in governmental accounting. He stated that Tautges
Redpath will tailor the audit to meet the needs of the City.
Mr. Hering reviewed Tautges Redpath's emphasis on disbursements, payroll, and utility billing
as well as the segments of the audit.
Mr. Mol presented a list of client cities and other governmental entities. He also discussed
Tautges Redpath's affiliation with HLB International and the services provided by the firm.
Mr. Harmening stated that the City's former audit firm, Abdo, Eick and Meyers, provided good
service to the City; however, staff felt that Tautges Redpath could continue to take the City to the
next level and improve and enhance the City's operations.
Mr. Swanson stated that Tautges Redpath has worked with cities larger than St. Louis Park and
staff felt that Tautges Redpath had more overall experience in terms of police and fire funds and
tax increment financing.
Councilmember Finkelstein requested that the Council be provided with a primer that includes
basic information on how to read a financial statement, including what it means and what to look
for. He added that City staff does an extraordinary job.
Councilmember Ross asked if there will be any transition costs such as software related to the
transition to Tautges Redpath.
Special Study Session Minutes -2- December 20,2010
Mr. Mol replied that Tautges Redpath will work hard to make the transition smooth and efficient
and to lessen the impact as much as possible for staff. He noted that they will need to obtain an
understanding of the City's internal control system which will require a little more staff time.
Mr. Swanson stated that there will be no additional cash outlay related to the transition,just staff
time. He added that the working relationship with Tautges Redpath will be year-round.
Councilmember Finkelstein asked how any material mistake would be communicated to the
Council.
Mr. Mol stated that if a material mistake were found, they would first communicate with the City
Manager and then bring the matter to the Council's attention. He indicated that they would not
wait until the audit opinion is issued to communicate any material mistake.
It was the consensus of the City Council to proceed with a contract for auditing services with
HLB Tautges Redpath, Ltd.
Other
Mr. Harmening stated that the proposed domestic partner registry ordinance is going to the
Human Rights Commission tomorrow night for consideration. He asked the Council if this item
should be placed for first reading on the January 3, 2011, City Council agenda.
It was the consensus of the City Council to place this item on the City Council agenda as soon as
possible.
Mr. Harmening agreed to place this item on the January 3, 2011, City Council agenda for first
reading, followed by the second reading on January 18t.
Councilmember Ross noted that the November financial report indicated that Public Works
operations supplies have exceeded budget due to increases in the cost of asphalt and road salt.
She asked how many snowstorms the City can handle until it impacts the budget.
Mr. Harmening advised that if Public Works incurs additional overtime and supplies expenses in
2010, it will end the year over budget; however, the City will end 2010 under budget in some
other areas so the City's final bottom line is okay. He acknowledged that snow plowing will
remain a pnority and this will result in overtime expense.
The meeting adjourned at 7:02 p.m.
Written Reports provided and documented for recording purposes only:
2. November 2010 Monthly Financial Report
Nancy Stroth, ity Clerk Jeff Jai obs, Ma sr