97-060 Pearson, Del Prete & Co. Audit Services for Campaign Reform Ordinance # 1757y
fI
September 2, 1997
Pearson, Del Prete & Co., LLP
410 Brewster Ave
Redwood City CA 94063-1709
Re: Cupertino Campaign Reform Ordinance
City Hall,
10300 Torre Avenue
Cupertino, CA 95014-3202
Telephone: (408) 777-3223
FAX: (408) 777-3366
kimberlys@cupertino.org
OFFICE OF THE CITY CLERK
Enclosed is a signed copy of your letter confirming procedures regarding the above-mentioned item.
I have made a minor amendment on the second page, first paragraph, to clarify the timing associated
with re -billing. The City of Cupertino normally pays on a weekly basis, but in some cases payment
may be slightly delayed.
I hope you find this amendment acceptable. Please contact me at (408) 777-3217 if you have any
questions.
Sincerely,
Kimberly Smith, CMC
City Clerk
Pnnhd on Racybod Pav(.v
Redwood City
August 28, 1997
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attention: Kimberly M. Smith, City Clerk
This letter is to confirm our understanding for applying agreed-upon procedures with respect to
the City's campaign reform ordinance, beginning with the election of November 4, 1997.
We will examine and issue a report on all election -related documents filed by city council
candidates as required by The Political Reform Act of 1996 (including Proposition 208) and the
City of Cupertino Ordinance No. 1757 for the election of November 4, 1997. We will assist in
the development of reports necessary to communicate violations and reportable conditions to the
City Clerk and the general public. Our reports will be submitted to the City Clerk by the due
dates prescribed in Ordinance No. 1757, and we will be available for any administrative hearings if
so requested.
Our examination of election -related documents filed by city council candidates will be conducted
in accordance with generally accepted accounting principles, generally accepted auditing standards,
and agreed-upon procedures or other methods prescribed by the City Of Cupertino and the
California Fair Political Practices Commission. Our reports will be written in a format agreed-
upon by us and the City of Cupertino.
We understand that the City of Cupertino will provide us with copies of the original election -
related documents required for our agreed-upon procedures examination and that they are
responsible for the acceptance and maintenance of the original information filed by candidates.
This responsibility includes monitoring the date and time of receipt, and maintenance and
safeguarding of documents.
Our agreed-upon procedures examination is not specifically designed and cannot be relied on to
disclose reportable conditions or violations with respect to transactions not reported by candidates
on the election -related documents.
410 Brewster Avenue
Pearson, Del Prete & Co., LLP
Redwood City, CA 94063-1709
Phone (415) 363-2800
Certified Public Accountants
Fax (415) 363-2808
James W. Newell, C.PA.
550 California Avenue, Suite 300
Palo Alto, CA 94306-1441
Robert J. Ravano, C.PA.
Phone (415) 858-2011
Richard D. Blake, C.PA.
Fax (415) 494-8735
Florence J. Rust, C. PA.
Guy R. Bennett, C.PA.
E -Mail: mail@pdpco.com
Douglass E Walsh, C.PA.
Home Page: http://www.cpas.net
Redwood City
August 28, 1997
City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
Attention: Kimberly M. Smith, City Clerk
This letter is to confirm our understanding for applying agreed-upon procedures with respect to
the City's campaign reform ordinance, beginning with the election of November 4, 1997.
We will examine and issue a report on all election -related documents filed by city council
candidates as required by The Political Reform Act of 1996 (including Proposition 208) and the
City of Cupertino Ordinance No. 1757 for the election of November 4, 1997. We will assist in
the development of reports necessary to communicate violations and reportable conditions to the
City Clerk and the general public. Our reports will be submitted to the City Clerk by the due
dates prescribed in Ordinance No. 1757, and we will be available for any administrative hearings if
so requested.
Our examination of election -related documents filed by city council candidates will be conducted
in accordance with generally accepted accounting principles, generally accepted auditing standards,
and agreed-upon procedures or other methods prescribed by the City Of Cupertino and the
California Fair Political Practices Commission. Our reports will be written in a format agreed-
upon by us and the City of Cupertino.
We understand that the City of Cupertino will provide us with copies of the original election -
related documents required for our agreed-upon procedures examination and that they are
responsible for the acceptance and maintenance of the original information filed by candidates.
This responsibility includes monitoring the date and time of receipt, and maintenance and
safeguarding of documents.
Our agreed-upon procedures examination is not specifically designed and cannot be relied on to
disclose reportable conditions or violations with respect to transactions not reported by candidates
on the election -related documents.
City of Cupertino -2- August 28, 1997
Our fees for the services will be billed as our work progresses at hourly billing rates as disclosed
in the cost of services section of our audit proposal submitted on August 1, 1997. Our invoices
are payabjp upon Tres eip service charge will be added to an account on any balance remaining
unpaid Y ung Rebillings are normally monthly. The minimum service
charge is $1.00. The service charge will be computed at the rate of 1-1/2% per month (18% per
annum). All work will be suspended if your account becomes 45 days past due. If at any time
there is a disagreement with the bill as presented, it is your duty to provide a written explanation
within 30 days of receipt of that bill.
In the event of a dispute over fees for our engagement, we mutually agree to submit to resolution
by arbitration in accordance with the rules of the American Arbitration Association. Such
arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that in the
event of a dispute over fees, each of us is giving up the right to have the dispute decided in a
court of law before judge or jury and, instead, is accepting the use of arbitration for agreement.
If this letter is in accordance with your understanding, please acknowledge approval of the
agreement by signing the duplicate copy of this letter and returning it to us.
We appreciate the opportunity to serve you and trust that our association will be a long and
pleasant one.
Sincerely,
Pearson, Del Prete & Co., LLP
Approved:
By
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1997 ELECTION CALENDAR
CITY OF CUPERTINO
DATE
ITEM
PERIOD
May 4
First day candidates can solicit funds
June 27
City Council requests consolidation of elections
June 30
Clerk publishes notice of election through 7/14
July 14
Nomination period opens
7/14/97 through 8/8/97 or
8/13 if incumbent does not file
Aug. 6
Clerk provides measure to Registrar re term limits
Aug. 13
Nomination period closes
Aug. 21
City Attorney provide to Registrar impartial analysis
of measure re term limits
Sept. 25
FPPC 1 pre-election disclosure due
1/1/96 through 9/20/97
Cupertino 1 pre-election disclosure due
1/1/96 through 9/20/97
Sept. 30
Auditor's 1 report due
Oct. 5
Last day to file appeal of auditor's report
Oct. 6
Registrar accepts absentee ballot applications
Until Oct. 28
Last day for citizens to register to vote
Oct. 10
Administrative hearing, if any
Oct. 15
Hearing Judge's report due
Oct. 21
Last day to accept contributions (candidates)
:Oct. 23
FPPC 2 pre-election disclosure due
9/21/27 through 10/18/97
Cupertino 2 RZIpre-election disclosure due
9/21/97 through 10/21/97
Oct. 26
Auditor's 2 report due
Oct. 28
Last day for voters to apply for absentee ballots
Oct. 27
Last day to file appeal of auditor's report
Last day to file complaint re ordinance violation
Oct. 29
Last day to file an amendment of disclosure which
was the subject of a violation determination
Administrative hearing, if any
Oct. 31
Hearing Judge's report due
Nov. 4
Election Day
Polls open 7 a.m. to 8 p.m.
1997 ELECTION CALENDAR
CITY OF CUPERTINO
(continued)
DATa,..�_
_ _ .. ITEM
PDERIOE
Nov. 6
Registrar of Voters begins canvass of votes
12/2/97 deadline
Nov. 18
Last day to accept contributions (Committees which
made independent expenditures)
Nov. 20
Cupertino Post-election disclosure due (Committees
which made independent expenditures)
10/22/97 through 11/18/97
Nov. 25*
T Auditor's report due
Nov. 30*
Last day to file appeal of auditor's report
Dec. 2
Registrar of Voters must complete canvass of votes
Dec. 5*
Administrative hearing, if any
Dec. 10*
Hearing Judge's report due
TBA
Swearing -In Ceremony for new council members
Jan. 31
FPPC Semi-annual disclosure due
10/19/97 through 12/31/97
Cupertino Final disclosure due (candidates)
10/22/97 through 1/30/98
Cupertino Final disclosure due (committees making
independent expenditures)
11/19/97 through 1/30/98
-4'Auditor's report due
Feb. 10*
Last day to file appeal of auditor's report
Feb. 15 *
Administrative hearing, if any
Feb. 20*
Hearing Judge's report due
*These dates are flexible, since the election will have already occurred.
97 Election Calendar
ORDINANCE NO. 1757
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CUPERTINO ADDING CHAPTER 2.06 TO THE
CUPERTINO MUNICIPAL CODE RELATED TO
CAMPAIGN FINANCE REGARDING COUNCIL
ELECTIONS
THE CITY COUNCIL OF THE CITY OF CUPERTINO HEREBY ORDAINS AS
FOLLOWS:
1. Amendment to the City Ordinance Code
Chapter 2.06 is hereby added to the City's ordinance code to read as follows:
Chapter 2.06
City Council - Campaign Finance
Sections:
2.06.010
Purposes
2.06.020
Statutory Authority
2.06.030
Definitions
2.06.040
Conflicts with Provisions of State Law
2.06.050
Constitutionality
2.06.060
Construction
2.06.070
Prohibited Acts Defined
2.06.080
Penalty for Violations
2.06.090
Remedies Cumulative
2.06.100
Candidate Contribution Limits
2.06.110
Committee Contribution Limits (Independent Expenditures)
2.06.120
Restrictions on when Contributions may be Accepted
2.06.130
Disclosure Statements
2.06.140
Audits, Appeals and Complaints
2.06.150
Hearing Proceedings
2.06.160
Criminal Proceedings
PC/DIR/0/206G5 I3 I
2.06.010 Purposes
A. The proper operation of democratic government requires that elected
officials be responsible to the People; that monetary contributions to political
campaigns on behalf, or against, a candidate, while a legitimate form of public
participation in the political process, should not be so great as to permit
particular individuals or organizations to exercise a controlling or undue
influence on the election of City Councilpersons.
B. This ordinance is intended to minimize the potentially corrupting
influence and appearance of corruption caused by excessive contributions to
City council campaigns or on behalf of, or against a candidate, by providing
for reasonable contribution limits for candidates and "independent
committees" as part of the election process.
C. This ordinance also is intended to lessen the potentially corrupting
pressures on candidates, officeholders, and committees, for fundraising by
establishing sensible time periods for soliciting and accepting campaign
contributions.
D. This ordinance also seeks to enable each City voter to cast an informed
vote by requiring that candidates disclose all campaign contributions prior to a
City election and by encouraging committees to reveal the source of their
funding as early as possible in the election process consistent with free speech
principles contained in the Constitution of the United States and the State of
California.
2.06.020 Statutory Authority
Section 85706(b) of the California Government Code, adopted by the voters of
the State of California on November 6, 1996, as part of Proposition 208,
authorizes the City to impose lower contribution limitations or other campaign
disclosures or prohibitions that are as, or more, stringent than set forth under
the applicable provisions of state law.
2.06.030 Definitions
Unless otherwise provided in this Chapter, all words and phrases in this
Chapter shall have the same meaning as are defined in Title 9 of the California
Government Code as then exists on the date of enactment of this Chapter or as
it may be later amended. Words and phrases not specifically defined shall be
construed according to the context and approved usage of the language.
PC/DIR/0/206C/513 2
2.06.040 Conflicts with Provisions of State Law
Where conflict occurs between any provision established by this Chapter and
any provision of applicable state law, the more restrictive or stringent of any
such provision shall apply.
2.06.050 Constitutionality
If any section, subsection, sentence, clause, or phrase of this Chapter is for any
reason held to be invalid or unconstitutional, such decision shall not affect the
validity of the remaining portions of this Chapter. The Council declares that it
would have passed this Chapter, and each section, subsection, sentence, clause
and phrase thereof, irrespective of the fact that any one or more sections,
subsections, sentences, clauses or phrases had been declared invalid or
unconstitutional.
2.06.060 Construction
The provisions of this Chapter, and all proceedings under it are to be construed
liberally with a view to effect its purposes and to promote justice.
2.06.070 Prohibited Acts Defined
Whenever in this Chapter, any act or omission is made unlawful, it shall
include causing, allowing, permitting, aiding, abetting, suffering, or concealing
the fact of such act or omission.
2.06.080 Penalty for Violations
Any person who violates any provision of this Chapter is guilty of a
misdemeanor punishable by a fine not exceeding one thousand dollars,
imprisonment for a term not exceeding six months, or by both such fine and
imprisonment.
2.06.090 Remedies Cumulative
All remedies provided for in this Chapter shall be cumulative and not
exclusive. All remedies contained herein shall be in addition to any criminal
or civil penalties contained in Section 83116 et seq. of the California
Government Code or any other applicable provision of state law.
2.06.100 Candidate Contribution Limits
a) Except as provided hereinafter, no person, other than small contributor
committees or political party committees, shall make to any candidate for City
Council or to the candidate's controlled committee, and no such candidate or
the candidate's controlled committee shall accept from any person, a
contribution or contributions totaling more than one hundred dollars ($100) for
PGDIR/0206G513 3
each election in which the candidate is attempting to be on the ballot or is a
write-in candidate.
b) No small contributor committee or political party committee shall make
to any candidate for City Council or the controlled committee of such a
candidate, and no candidate shall accept from a small contributor committee or
political party committee, a contribution or contributions totaling more than
two hundred dollars ($200) for each election in which the candidate is
attempting to be on the ballot or is a write-in candidate.
C) The forgiveness of any debt constitutes a campaign contribution and
any forgiveness greater than the contribution limits contained herein, either for
a candidate or an independent committee, is prohibited.
d) The provisions of this section shall not apply to a candidate's
contribution of his or her personal funds to his or her own campaign
committee, but shall apply to contributions from a spouse.
2.06.110 Committee Contribution Limits (Independent Expenditures)
a) Notwithstanding the provisions of Section 2.06. 100 and except as
provided hereinafter, any committee making independent expenditures of
$1,000 or more shall not accept from any person any contribution in excess of
$250 for each election in which the committee is participating.
b) Notwithstanding the provisions of subsection a) above, any committee
making independent expenditures of $1,000 or more shall not accept from any
person any contribution of one hundred dollars ($100) or more during the
period fourteen days prior to said election through fourteen days after said
election.
2.06.120 Restrictions on When Contributions may be Accented
a) No candidate or committee may accept contributions more than six
months prior to the election for which the contributions are to be utilized.
b) No candidate may accept contributions later than fourteen days prior to
the election. In the event that a candidate incurs more debt in his or her
campaign than can be paid by contributions, the candidate must retire the debt
from his or her own personal funds prior to January30 of the year following
the election. Failure to retire said debt by that date constitutes a violation of
this Chapter.
PGD1R/0/2060513 4
c) No committee making independent expenditures of $1,000 or more
may accept contributions later than fourteen days after the election. Any debt
incurred by such committee which is not retired from campaign contributions
prior to January 31 of the year following the election constitutes a violation of
this Chapter.
d) This section shall not apply to any funds raised for the purposes
described in Section 85305(d)of the California Government Code (related to
attorney's fees, cost of recounts, and other costs described in Section 85305(d).
2.06.130 Disclosure Statements
A. Forty days prior to a city council election, all candidates and
committees shall file with the City Clerk initial disclosure statements
disclosing the name, address, employer, and contribution amount of all persons
making contributions exceeding $50. Contributions requiring disclosure
include "in kind" contributions of a fair market value of $50 or more. In
addition, committees making independent expenditures of $1,000 or more
must also disclose the name, address, and employer of all officers of the
committee. The filing period for the initial disclosure is January 1 of the even
numbered year prior to the election through 45 days prior to the election.
B. Twelve days prior to a city election, a second disclosure statement must
be filed with the City Clerk by candidates and committees containing the same
information as in the initial filing for the period of time since the initial filing.
The filing period for the second disclosure is 44 days prior through 14 days
prior to the election.
C. Sixteen days after a city election, committees making independent
expenditures of $1,000 or more shall file a third disclosure statement. The
filing period for the third disclosure is 13 days prior to the election through 14
days after the election.
D. On January 31 of the year following a city election, all candidates and
committees shall file final disclosure statements with the City Clerk. The
filing period for the final disclosure is from the date of the last reporting period
through January 30 of the year following the election.
E. The filing of the above-described disclosure statements do not relieve
candidates or committees from filing disclosure statements as required by the
Fair Political Practices Act.
PC/DIR/0206C/513 5
2.06.140 Audits, Appeals and Complaints
a) The City Clerk shall engage the services of an independent auditor who
shall review, in detail, all campaign disclosure statements.
b) Within five days after the initial disclosure statements proscribed by
Section 2.06.130(A) are filed with the City Clerk, the auditor shall prepare and
submit to the City Clerk a written report describing any and all violations with
respect to this Chapter which have appeared from the statements on file. The
clerk shall disseminate the report to the public forthwith.
c) Any person, including a candidate, wishing to contest any portion of the
auditor's report regarding any initial disclosure statement or wishing to file a
separate complaint against a candidate or committee alleging a violation or
violations of this Chapter shall do so in writing filed with the City Clerk within
5 days of the public release of the auditor's report regarding initial disclosure
statements.
d) Within 5 days after the filing of any such contest or complaint, a
hearing open to the public shall be held by an independent administrative
judge engaged by the City, who will decide the merits of any such contest or
complaint. Within 5 days after the completion of the hearing, the judge shall
issue a written decision which will be made available to the public.
e) Within three days after the second disclosure period as described in
Section 2.06.130(B) has elapsed (9 days prior to the election) the auditor shall
prepare and submit to the City Clerk a second report describing violations of
this Chapter which have occurred since the first reporting period. The clerk
shall disseminate the report to the public forthwith.
f) Any person, including a candidate, wishing to contest the auditor's report
regarding any second disclosure statement or wishing to file a separate complaint
against a candidate or independent committee regarding a violation or violations
of this Chapter which are alleged to have occurred during the second reporting
period may do so in the same manner described in subsection c) of this section,
provided however, that such contest or complaint must be filed within 24 hours of
the public release of the auditor's report regarding the second disclosure . Within
48 hours of the filing of any such contest or complaint (6 days prior to the
election), a hearing open to the public will be held by the independent
administrative judge regarding the contest or complaint. No later than noon on
the fourth day prior to the election, the independent administrative judge will
issue and make public a written opinion regarding each appeal or complaint.
PC/D1R/0/206C/513
g) The amendment of any disclosure statement which is the subject of a
violation determination made by the auditor must be filed within 48 hours of
the auditor's report
h) Whenever any contest or complaint is filed with the City Clerk pursuant
to this Chapter, or whenever a hearing before the independent administrative
judge is set, the clerk shall provide written notice to the contestant, the
complainant, the relevant candidate or independent committee of the filing or
hearing through either personal delivery or fax within 24 hours of said filing
and/or 24 hours prior to any hearing, as the case may be. Any notice of
hearing shall contain the date, time, and place of such hearing and shall have
appended to aid notice a copy of this Chapter.
i) With respect to any disclosure statement required by this Chapter to be
filed after an election, the audit and appeal procedure described in Section
2.06.140(b) (c) and (d) shall be followed.
2.06.150 Hearing Proceedings
a) The independent administrative judge shall conduct all hearings
described in Section 2.06.140 in a manner consistent with the Rules of
Procedure for conducting hearing described in appendix A attached to this
Chapter.
b) The judge shall use his or her independent judgment as to the evidence
presented.
C) The burden of proof with respect to any contest or complaint shall be
on the party making the contest or complaint. The burden of proof of any fact
is upon the person asserting the fact. The burden of proof as to any fact is by a
preponderance of the evidence.
d) Notwithstanding anything to the contrary contained in subsection c)
above, any factual determination or finding of fact made by the City's auditor
contained in his or her report shall constitute a rebuttable presumption as to the
truth of said determination or finding.
e) At the conclusion of the hearing, the Judge may, in his or her
discretion, order any party to reimburse the City for any costs associated with
the hearing, including audit casts.
PGD1R/0/206G513 7
2.06.160 Criminal Proceedings
Any criminal proceedings against any person for a violation of this Chapter will be
prosecuted by an independent city prosecutor selected by the Presiding Judge of the Santa Clara
County Superior Court.
Section 2 Effective Date
This ordinance shall take effect thirty (30) days after final adoption.
Section 3 Publication Clause
The City Clerk shall cause this ordinance to be published at least once in a newspaper of
general circulation published and circulated in the City within 15 days after its adoption, in
accordance with Government Code Section 36933, shall certify to the adoption of this ordinance
and shall cause this ordinance and her certification, together with proof of publication, to be
entered in the Cupertino Municipal Code.
INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 5th
day of May, 1997, and ENACTED at a regular meeting of the City Council of the City of
Cupertino this 19th day of May, 1997, by the following vote:
Vote Members of the Cit, Council
AYES: Dean, Sorensen, Bautista
NOES: Burnett, Chang
ABSENT: None
ABSTAIN: None
ATTEST:
/s/ Roberta Wolfe
Dep. City Clerk
APPROVED:
/s/ John Bautista
Mayor, City of Cupertino
Appendix A
Rules of Procedure for Conducting Hearing
I. Parties
The parties shall consist of the contestant or appellant, the candidate or officers of the
independent committee which are charged with the violation or violations of this Chapter,
and the City.
2. Independent Administrative Judge
The Judge will have the authority to conduct the hearing and the manner of
proceedings, to rule on questions of evidence and the relevancy thereof, to maintain order at
the hearing, to interpret and apply these rules of procedure, and to do all other acts necessary
to provide a fair and orderly hearing.
3. Hearing Clerk
The City Clerk shall be charged with taking and keeping records, and shall keep in his
or her possession any exhibits or documents offered as evidence. The City, Clerk shall make
the necessary arrangements for the taking of a stenographic record of the testimony whenever
such record is requested by one or more parties. The requesting party shall pay the cost of
such a record.
4. Attendance at Hearin
The independent administrative judge shall have the power to require the exclusion of
any witness or witnesses during the testimony of other witnesses.
5. Oaths
Before proceeding with the testimony of any witness, the independent administrative
judge shall require witnesses to testify under oath or affirm to the truth. The oath or
affirmation shall be administered by the city clerk.
6. Order of proceed -ng
A hearing shall be opened by the judge. The hearing clerk shall record in the minutes
the place, time, and date of the convening of the hearing; the presence of the parties, and their
respective counsel, if any.
Prior to the presentation of any opening statements or the offering of any evidence,
there shall be entered into the record for said hearing all exhibits, proofs of service, audit
reports, affidavits, disclosure statements, orother evidence presented to or filed with the City
Clerk regarding the matter before the judge.
PC/DIR/0/206C/A/513
At the beginning of the hearing, the judge may ask for statements clarifying the issues
involved.
The auditor may then present his report and findings and thereafter shall be subject to
questions or other examination by the parties. The other parties may then present their
claims, proofs, and witnesses, who shall thereafter submit to questions or other examination
by all other parties. The judge may, in his or her discretion, vary this procedure, but shall
afford all parties a full and fair opportunity to present all material or relevant proofs.
Exhibits, when offered, may be received in evidence and when received, shall be
numbered and made part of the record of the hearing by the City Clerk. The clerk shall also
record a list of names and addresses of all witnesses.
7. Hearinlz in the Absence of a Party
The hearing may proceed in the absence of any party, who, after due notice, fails to be
present.
8. Evidence
a) Each party shall have these rights: to call and examine witnesses, to introduce
exhibits, to cross-examine opposing witnesses on any matter relevant to the issues even
though that matter was not covered in the direct examination, to impeach any witness,
regardless of which party first called him or her to testify; and to rebut the evidence against
him or her. If a party does not testify in his or her own behalf, he or she may be called and
examined as if under cross-examination, provided, however, that no witness shall be required
to testify if such testimony would tend to incriminate him or her in any subsequent criminal
proceeding.
b) The hearing need not be conducted according to technical rules relating to
evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence
on which responsible persons are accustomed to rely in the conduct of serious affairs,
regardless of the existence of any common law or statutory rule which might make improper
the admission of such evidence over objection in civil actions. Hearsay evidence may be
used for the purpose of supplementing or explaining other evidence, but shall not be
sufficient in itself to support a finding unless it would be admissible over objection in civil
actions. The rules of privilege shall be effective to the extent that they are otherwise required
by statute to be recognized at the hearing, and irrelevant and unduly repetitious evidence
shall be excluded.
PGD1R/0/206GA/513 2
9. ClosinLy the Hearing
The judge shall require of all parties whether they have further proofs to offer or
witnesses to be heard. Upon receiving negative replies, the judge may allow argument by
counsel or a party to the proceeding regarding the evidence.
After the conclusion of such argument, the hearing shall be closed and a minute
thereof shall be recorded. The matters shall then be taken under submission, and the judge
shall thereafter announce his or her decision.
PC/DIR/0/206C/A/s13 3
CITY OF CUPERTINO
REQUEST FOR PROPOSALS FOR AUDIT SERVICE
I. GENERAL INFORMATION
The City of Cupertino is a general law city under a City Council/City Manager form of
government. The City Manager, City Attorney and City Treasurer are appointed by the City
Council. The City Clerk is appointed and has a staff of 2.5. The City has a population of 43,000
with a general fund operating budget of approximately $20 million. City Council members are
elected at -large, and serve overlapping terms of four years each. There is a term limit of two
consecutive terms. General municipal elections are held on the first Tuesday after the first Monday
of each odd -numbered year.
The City contracts with the Santa Clara County Registrar of Voters for election services including
precinct set-up, ballot distribution and collection, and canvass of votes.
Questions regarding this Request for Proposal should be directed to the City Clerk, Kimberly
Smith, (408) 777-3217.
II. DESCRIPTION OF SERVICES
The audit shall include an examination and written report of all election -related documents filed by
city council candidates as required by (1) The Political Reform Act of 1996 (including Proposition
208); and (2) City of Cupertino Ordinance No. 1757.
Reports are to be delivered to the City Clerk by the deadlines specified, and delivered to the
pertinent candidate(s) by overnight delivery.
The Filing Period Chart attached to this document illustrates the types of campaign disclosure
reports which will be audited. The dates change slightly from year to year. They reflect fixed
deadlines which cannot be changed, so some weekend work may be required.
III. GENERAL REQUIREMENTS AND INFORMATION
A. Five (5) copies of the proposal must be submitted to the City Clerk at 10300 Torre Avenue
Cupertino, CA 95014.
B. Proposals will not be accepted after 11:00 a.m. August 1, 1997. All proposals are to remain
firm for sixty (60) days following this date.
C. All responses to this Request for Proposal shall become the property of the City. The City
will treat all responses as confidential, with the exception of the successful firm's proposal,
which becomes public information upon acceptance by the City Council.
D. The City reserves the right to reject any and all proposals submitted. Award of contract will
be made to the independent auditor who, based on evaluation of all responses, applying all
criteria, is determined to be the best qualified to perform the audit. If the City cannot
successfully negotiate an audit contract acceptable to both parties, the City reserves the
right to award the contract to any firm determined to be qualified to conduct the audit.
E. All proposals will be evaluated by the City Clerk and City Attorney. Bidding firms may
also be requested to make an oral presentation.
F. Bidders conference is scheduled for July 9 at 3:00 p.m., in Conference Room C & D at City
Hall, 10300 Torre Avenue Cupertino CA. Please call for reservations at (408) 777-3223.
G. It is the intent of the City to retain the audit firm for each election (elections are held in 2 -
year cycles). However, contingent upon satisfactory performance, the City will have the
option to extend the contract for an additional election cycle, renewable by the City Clerk.
The City reserves the right to negotiate additional contract terms upon each renewal term.
IV. PROPOSAL - SELECTION CRITERIA
The following evaluation criteria is used to qualify all proposals submitted as being eligible for
consideration:
A. Experience - The auditor's recent experience (within the last five years).
B. Competence/Education - The qualification of personnel who will be actually working on
and coordinating the audit.
C. Availability of key personnel.
D. Location of office.
E. Experience with elections procedures is desirable but not required.
F. Cost will become a factor only after a short list of qualified firms has been compiled.
V. FORMAT OF RESPONSE
In order to have a uniform review process and to obtain the maximum degree of comparability, it
is required that proposals be organized in the manner specified below:
A. Title Page - Name of your firm, local address, telephone number, name of the contact
person, date, and e-mail address.
B. Table of Contents
C. Letter of Transmittal — including your understanding of the work to be performed, the
name, title, address, telephone number, and e-mail address of your representative.
D. Summary of Vendor's Qualifications/References
1. Identify the individual(s) who will be assigned to this engagement, as well as the office
location from which the engagement will be staffed. As an appendix to the proposal,
include the resume(s) indicating relevant experience.
2. Provide a list of references (past five years). Please include the names, titles, and
telephone numbers of client contacts.
3. Provide a copy of your most recent quality/peer review report
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E. Approach to the Examination - describe a general approach to the audit, including major
areas to be reviewed, philosophy or approach.
F. Time Line - include a work plan to accomplish the scope of the audit. The planned use of
specialists should be specified.
G. Additional Data - provide any additional data not specifically requested in the foregoing
sections that you feel is essential to the proposal.
H. Compensation
It is understood that this is a new and unusual audit request. Since we cannot estimate the
number of candidates and the volume of transactions, we request that your compensation be
quoted using an hourly rate. The proposal should include any estimated expenses over and
above your proposed hourly rates.
If unusual circumstances are encountered, which make it necessary for auditors to do
additional work, such conditions shall be immediately reported to the City Clerk.
VI. NATURE OF SERVICE REQUIRED
Audit and written reports regarding the campaign disclosure reports filed by candidates for
Cupertino City Council to determine compliance with the requirements of the Political
Reform Act, including Proposition 208, and City of Cupertino Ordinance No. 1757.
2. Auditor may need to be present at any administrative hearing to answer questions
concerning the audit report.
2. Exit conferences are required for election cycle. Conferences will be held with the City
Clerk and City Attorney or designated representatives, if so requested.
3. Please provide any additional data not specifically requested in the foregoing sections that
the vendor feels is essential to proposal.
Attaclu-nents: Filing Period charts
1997 election calendar
City of Cupertino Ordinance No. 1757
FPPC Form 490, Manual A and Addendum
FPPC Form 461 and Manual E
Proposition 208
Cupertino Campaign Disclosure Forms (Candidates and Committees)
Auditor RFP 97