Contracts with Macias Gini & O’Connell LLP and Vasquez & Company LLP, for on-call Financial and Grant Auditing Services

ADOPT a resolution to APPROVE contracts with Macias Gini & O’Connell LLP and Vasquez & Company LLP, to provide as-needed grant audit, financial audit, and related audit services, each in an amount not to exceed $100,000 over the initial three-year term, for a combined not-to-exceed amount of $200,000 for Fiscal Year (FY) 2026-27, FY 2027-28, and FY 2028-29, with an option to extend for two additional years – Finance Department (Jerry Chak/Mubeen Qader/Emily Combs 510-620-6569).

Financial Impact

The proposed not-to-exceed amount of $100,000 per firm for the two on-call auditing services contracts with Macias Gini & O’Connell LLP and Vasquez & Company LLP, for a combined not-to-exceed amount of $200,000, is included within the approved Fiscal Year 2026–2027 Finance Department budget and will be budgeted accordingly in subsequent fiscal years. Costs associated with grant-specific audit requests will be charged to or recovered from the applicable grant fund when allowable under grant requirements, and audit requests initiated by City departments will be charged to the respective requesting department’s budget (Account String:

01172015-400215).

Previous Council Action

None.

Statement Of The Issue

The Finance Department is requesting authorization to establish two on-call contracts for as-needed financial audit, grant audit, and related audit services. Establishing these on-call contracts will provide the City with a pre- qualified pool of firms that can be engaged through work authorizations as needs arise, allowing City departments to timely secure professional audit services and reduce delays in meeting grant, regulatory, and City reporting or auditing requirements.

Recommended Action

ADOPT a resolution to APPROVE contracts with Macias Gini & O’Connell LLP and Vasquez & Company LLP, to provide as-needed grant audit, financial audit, and related audit services, each in an amount not to exceed $100,000 over the initial three-year term, for a combined not-to-exceed amount of $200,000 for Fiscal Year (FY)

2026-27, FY 2027-28, and FY 2028-29, with an option to extend for two additional years – Finance Department (Jerry Chak/Mubeen Qader/Emily Combs 510-620-6569).

Discussion

The City of Richmond receives and administers various federal, state, and local grant funds. Some programs require compliance reviews, grant closeout audits, or other audit-related services. The Finance Department requires qualified certified public accounting firms that can provide these services on an as-needed basis and within required grant and reporting timelines.

The Finance Department issued a Request for Proposals (RFP) for On-Call Financial and Grant Auditing Services (Attachment 1). The purpose of the RFP was to establish a pre-qualified pool of firms that could provide financial audit, federal grant audit, state grant audit, and related compliance audit services. Under the on-call structure, no minimum amount of work is guaranteed, and each assignment will be separately authorized with a defined scope of work, deliverables, timeline, and not-to-exceed amount.

The RFP closed on June 5, 2026, and total of 373 vendors were notified of the solicitation through the City’s BidsOnline system (Attachment 2). Four proposals were received in response to the RFP. Proposals were submitted by Badawi & Associates, Macias Gini & O'Connell LLP (MGO), Price Paige & Company, and Vasquez & Company LLP.

Following completion of the evaluation process, the evaluation panel identified Vasquez & Company LLP (Vasquez) and Macias Gini & O’Connell LLP (MGO) as the two firms most qualified to provide on-call grant audit and related financial audit services to the City (Attachment 3). The selected firms demonstrated the qualifications, staffing capacity, governmental audit experience, audit methodology, and responsiveness necessary to support the City’s as-needed audit service needs.

Vasquez was the first-ranked firm. Vasquez demonstrated strong governmental and municipal audit experience, including experience with California public agencies, financial audits, and grant compliance audit services. The firm presented a clear project approach, competitive fee structure, and qualified audit personnel.

MGO was the second-ranked firm. MGO demonstrated strong governmental audit experience and significant staffing depth. The firm has experience serving state and

local government entities and demonstrated the ability to provide specialized audit, compliance, and technical review support.

Awarding two on-call contracts will provide the City with flexibility to respond to varying audit service needs. It also strengthens the City’s ability to manage audit requests efficiently throughout the contract term.

City staff recommend that the City Council adopt a resolution approving contracts with Macias Gini & O’Connell LLP and Vasquez & Company LLP to provide as-needed grant audit, financial audit, and related audit services (Attachment 4). Each contract would be for an amount not to exceed $100,000 during the initial three-year term covering Fiscal Years 2026-27 through 2028-29, for a combined amount not to exceed $200,000, with an option to extend the contracts for two additional years (Attachments 5 and 6).

DOCUMENTS ATTACHED:

Attachment 1 – Request for Proposals - On-Call Financial and Grant Auditing Services Attachment 2 – Bid Summary Attachment 3 – Rating Matrix Attachment 4 – Resolution Attachment 5 – Contract Agreement, Vasquez & Company LLP Attachment 6 – Contract Agreement, Macias Gini & O’Connell LLP

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Request for Proposals

On-Call Financial and Grant Auditing Services

Release Date: May 15, 2026

Deadline for Submittal June 5, 2026 at 5:00 pm

Contact: Jerry Chalk, Accounting Manager

City of Richmond Finance Department

INTRODUCTION

The City of Richmond is requesting proposals from qualified certified public accounting firms to provide as-needed auditing services. The City intends to establish a list of pre- qualified firms to perform audit-related services on a task-order (work authorization) basis. This request for proposal (RFP) describes the project, the required scope of services, the consultant selection process, and the minimum information that must be included in the proposal. Failure to submit information in accordance with the RFP requirements and procedures may be cause for disqualification. The anticipated term of this contract will be for a period of three (3) years and an option to renew for two (2) years by means of a mutual agreement of both parties. The City anticipates a not-to-exceed amount of approximately $100,000 per vendor over the initial contract term; however, actual work may vary based on operational needs, funding availability, and assignment of specific work authorizations. No minimum amount of work is guaranteed.

ABOUT THE CITY

The City of Richmond is a Charter City located in Contra Costa County, part of the San Francisco Bay Area, with a population of approximately 115,353 residents. Richmond is one of the region’s most diverse communities with 45.5 percent of residents identify as Hispanic or Latino, 16.4 percent identify as Black or African American alone, 21.2 percent identify as White alone (not Hispanic or Latino), and 13.8 percent identify as Asian alone.1

Richmond boasts a multi-modal transit hub that includes BART, Amtrak, and AC Transit, along with marinas, shopping centers, recreational and cultural amenities, and 32 miles of shoreline, making it one of California’s most desirable up-and-coming communities.

Richmond operates under a council-administrator form of government, with a Mayor and six council districts represented by elected Councilmembers. The City employs approximately 850 full-time equivalent and part-time employees. The City of Richmond provides a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; operation of a wastewater treatment facility; and the administration of recreational activities and cultural events. Additionally, the City operates the Richmond Memorial Convention Center and the Port of Richmond, supporting economic development and regional connectivity

1 Quick facts Richmond city, California. U.S. Census Bureau. Based on 2024 estimates. https://www.census.gov/quickfacts/richmondcitycalifornia

SCOPE OF SERVICES

The City of Richmond (“City”) is seeking qualified certified public accounting firms to provide as-needed auditing and related services on an on-call basis. The City intends to award contracts to one or more firms to perform services on a task-order basis. No minimum amount of work is guaranteed under this contract.

Services may include, but are not limited to, the following:

• A. Financial Auditing
• Audit services for City funds, departments, component units, or related entities.
• Review of financial statements, schedules, notes, and related supporting documentation.
• Management letters, audit findings, and recommendations related to financial reporting and internal controls.
• Other financial audits as requested
• B. Federal Grant Audit Services
• Single Audit services in accordance with Uniform Guidance.
• Federal grant compliance audits, testing, and related reporting.
• Review of federal grant expenditures, schedules, internal controls, and compliance requirements.
• C. State Grant and other compliance Audit Services
• State grant compliance audits and reviews.
• Audit services required by grant agreements, oversight agencies, or other regulatory requirements.
• Agreed-upon procedures or special audit services related to financial reporting, grant compliance, or internal contr