Annual Utility Audit Services

CITY OF TACOMA
DEPARTMENT OF FINANCE
REQUEST FOR PROPOSALS
SPECIFICATION NO. FI26-0100F
ANNUAL UTILITY AUDIT SERVICES

City of Tacoma
Department of Finance
REQUEST FOR PROPOSALS FI26-0100F
Annual Utility Audit Services
Submittal Deadline: 11:00 a.m., Pacific Time, Tuesday, June, 9, 2026
Submittals must be received by the City's Procurement and Payables Division by 11:00 a.m. Pacific Time.
For electronic submittals, the City of Tacoma will designate the time of receipt recorded by our email server, as
the official time of receipt. This clock will be used as the official time of receipt of all parts of electronic bid
submittals. Include the specification number in the subject line of your email. Your submittal must be sent as
an attachment, links to your electronic submittal will not be accepted.
For in person submittals, the City of Tacoma will designate the time of receipt recorded by the timestamp
located at the lobby security desk, as the official time of receipt. Include the specification number on the
outside of the sealed envelope. Late submittals will be returned unopened and rejected as non-responsive.
Submittal Delivery: Sealed submittals will be received as follows:
By Email: In Person:
sendbid@tacoma.gov Tacoma Public Utilities Administration Building North,
Maximum email size including attachments: 35 MB. Main Floor, Lobby Security Desk
Multiple emails may be sent for each submittal. 3628 South 35th Street
Tacoma, WA 98409
Note: Email may pass through multiple servers before arriving Monday - Friday 8:00 am to 4:30 pm
at its destination. Please allow sufficient time for email delivery
of submittals. Timely electronic delivery is at the risk of the
supplier.
Bid Opening: Submittals must be received by the City's Procurement and Payables Division prior to 11:00
a.m. Pacific Time. Sealed submittals in response to a RFB will be opened Tuesday's at 11:15 a.m. by a
purchasing representative and read aloud during a public bid opening held at the Tacoma Public Utilities
Administrative Building North, 3628 S. 35th Street, Tacoma, WA 98409, conference room M-1, located on the
main floor. They will also be held virtually Tuesday's at 11:15 a.m. Attend a Zoom meeting via this link or call 1
(253) 215 8782, using meeting ID # 884 0268 0573, passcode # 070737.
Submittals in response to an RFP, RFQ or RFI will be recorded as received, but not read at bid opening. As
soon as possible, after 1:00 PM, on the day of submittal deadline, preliminary results will be posted to
www.TacomaPurchasing.org.
If you believe your submittal was sent timely and was not read at bid opening, please contact
sendbid@tacoma.gov immediately.
Solicitation Documents: An electronic copy of the complete solicitation documents may be viewed and
obtained by accessing the City of Tacoma Purchasing website at www.TacomaPurchasing.org.
* Register for the Bid Holders List to receive notices of addenda, questions and answers and related updates.
* Click here to see a list of vendors registered for this solicitation.
Pre-Proposal Meeting: A pre-proposal meeting will not be held.
Project Scope: The Finance Department is seeking the services of a nationally recognized certified public
accounting firm to perform a financial audit of standalone financial statements for Power, Water, Rail,
Sewer/Wastewater and Stormwater, and Solid Waste Management funds for each of the five years ending
December 31, 2026 through 2031, and to express an opinion as to whether the statements are presented
fairly and in conformity with auditing standards generally accepted in the United States and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the
Form No. SPEC-040C Revised: 06/03/2024

United States, and are applied on a basis consistent with that of the preceding year.
Estimate: $1,445,000
Paid Sick Leave: The City of Tacoma requires all employers to provide paid sick leave in accordance with
State of Washington law.
Americans with Disabilities Act (ADA Information: The City of Tacoma, in accordance with Section 504 of
the Rehabilitation Act (Section 504) and the Americans with Disabilities Act (ADA), commits to
nondiscrimination on the basis of disability, in all of its programs and activities. Specification materials can be
made available in an alternate format by emailing the contact listed below in the Additional Information section.
Title VI Information:
"The City of Tacoma" in accordance with provisions of Title VI of the Civil Rights Act of 1964, (78 Stat. 252, 42
U.S.C. sections 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively
ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises
will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated
against on the grounds of race, color, national origin in consideration of award.
Additional Information: Requests for information regarding the specifications may be obtained by contacting
Brandon Snow by email to BSnow@tacoma.gov.
Protest Policy: City of Tacoma protest policy, located at www.tacomapurchasing.org, specifies procedures for
protests submitted prior to and after submittal deadline.
Meeting sites are accessible to persons with disabilities. Reasonable accommodations for persons with
disabilities can be arranged with 48 hours advance notice by calling 253-502-8468.
Form No. SPEC-040C Revised: 06/03/2024

TABLE OF CONTENTS
SUBMITTAL CHECK LIST ......................................................................................................... 4
1. BACKGROUND .................................................................................................................. 5
2. MINIMUM REQUIREMENTS .............................................................................................. 6
3. SCOPE OF SERVICES AND DELIVERABLES................................................................... 7
4. CONTRACT TERM ............................................................................................................. 8
5. CALENDAR OF EVENTS ................................................................................................... 8
6. INQUIRIES ......................................................................................................................... 8
7. PRE-PROPOSAL MEETING............................................................................................... 9
8. DISCLAIMER ...................................................................................................................... 9
9. EVALUATION CRITERIA .................................................................................................... 9
10. CONTENT TO BE SUBMITTED - 100% of the possible scoring criteria. ..........................10
11. INTERVIEWS / ORAL PRESENTATIONS .........................................................................13
12. RESPONSIVENESS .........................................................................................................14
13. ACCEPTANCE / REJECTION OF SUBMITTALS ..............................................................14
14. CONTRACT OBLIGATION ................................................................................................15
15. STANDARD TERMS AND CONDITIONS / GENERAL PROVISIONS ...............................15
16. INSURANCE REQUIREMENTS ........................................................................................15
17. PARTNERSHIPS...............................................................................................................15
18. COMMITMENT OF FIRM KEY PERSONNEL ...................................................................15
19. AWARD .............................................................................................................................16
20. ENVIRONMENTALLY PREFERABLE PROCUREMENT ..................................................16
21. PROPRIETARY OR CONFIDENTIAL INFORMATION ......................................................16
22. ADDENDUMS ...................................................................................................................17
23. LEAP REQUIREMENTS ....................................................................................................17
24. EQUITY IN CONTRACTING .............................................................................................17
APPENDIX A ............................................................................................................................18
APPENDIX B ............................................................................................................................19
APPENDIX C ............................................................................................................................20
Request for Proposal Specification No. FI26-0100F
Template Revised: 08/01/2025

SUBMITTAL CHECK LIST
This checklist identifies items to be included with your submittal. Any submittal received without
these required items may be deemed non-responsive and not be considered for award.
Submittals must be received by the City of Tacoma Purchasing Division by the date and time
specified in the Request for Proposal page.
The following items make up your submittal package:
One electronic copy of your complete submittal package
Signature Page (Appendix A)
Price Proposal Form (Supplied by Respondent)
A Proposal Providing a Complete Response to the Information Requested in
Section 10
After award, the following documents will be executed:
Services Contract (See sample in Appendix C)
Certificate of Insurance and related endorsements. (See Appendix B)
Request for Proposal Specification No. FI26-0100F
Template Revised: 08/01/2025

1. BACKGROUND
The utilities are municipally owned and operated providing electric power, water, rail,
wastewater/stormwater treatment and solid waste disposal services to customers within
Tacoma and the surrounding area. The Power, Water and Rail Divisions are units of the
Department of Public Utilities, more commonly referred to as Tacoma Public Utilities (TPU). The
Sewer/Wastewater and Stormwater and Solid Waste Management utilities are units of the City
of Tacoma, Environmental Services Department. The five utilities may be specifically identified
or referred to in whole as the operating divisions in subsequent paragraphs.
TPU Power Division provides electrical service to approximately 195,000 retail customers. Four
hydroelectric generating projects are owned and operated by the Power Division. The balance
of the division's power requirements is obtained through a variety of exchange and purchase
agreements with Bonneville Power Administration (BPA), other utilities and agencies. The
Power Division's operating revenue for 2024 was $512.4 million.
TPU Water Division serves approximately 110,000 customers. The primary source of supply is
the Green River located some 42 miles east of the city. Water System which includes a surface
water supply source (the Watershed); several extensive well fields; a water transmission system
consisting of several pipelines, water treatment and quality facilities; various reservoirs,
standpipes and pump stations; and an extensive distribution system. The Water Division's
operating revenue for 2024 was $120.9 million.
TPU Rail Division provides rail switching services to the Port of Tacoma and major Tacoma
industries under its Tidelands Division. Tacoma Rail also provides rail service from its Capital
Division. The Capital Division interchanges rail cars with Burlington Northern Santa Fe (BNSF)
in Dupont. No traffic for the Capital Division enters Tacoma Rail's Tidelands infrastructure. The
Rail Division's operating revenue for 2024 was $44.3 million.
The City's Sewer Utility provides wastewater and stormwater services. The wastewater system
processes wastewater through its two plants for approximately 80,000 customers and had
revenues of $101.7 million in 2024. The stormwater system serves approximately 72,000
customers and had revenues of $44.9 million in 2024.
The City's Solid Waste Management utility provides refuse collection and disposal services for
approximately 63,000 residences and businesses located within the City's boundaries. Disposal
methods include recycling, long-haul to outside landfills, and disposal in a City-owned landfill.
Operating revenues in 2024 were $93.3 million.
TPU and the City utilize SAP for ERP applications such as general ledger, payroll, purchasing,
treasury, work orders, human resources, and customer billing and accounts receivable (CIS) for
utility accounts. Other specific applications unrelated to this project also interface with SAP.
Request for Proposal Specification No. FI26-0100F
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The Finance Department provides purchasing, disbursements, and financial reporting support to
the audit subjects, for all City departments and TPU divisions. The Department's treasury
function, which includes all receipting and investing of City funds, is handled exclusively by the
City Treasurer, who is an officer of the City.
The operating divisions' cash balances are a "deposit" with the City Treasurer for the purpose of
maximizing interest earnings through pooled investment activities, referred to as the investment
pool. Pooled investments are reported on the Statement of Net Position as Cash and equity in
pooled investments. The investment pool operates like a demand deposit account in that all City
departments, including the operating divisions, have fund balances, which are their equity in the
investment pool. Accordingly, balances considered as cash equivalents and the equity in pooled
investments are considered cash for cash flow reporting purposes. The Cash and equity in
pooled investments are audited by the State Auditors.
The Finance Department adheres to the accounting and reporting requirements prescribed by
the Federal Energy Regulatory Commission (FERC) and National Association of Regulatory
Utility Commissioners (NARUC) and adopted by the State Auditor. The State Auditor examines
the financial affairs of the City annually, including the audit subjects.
To learn more about the City of Tacoma, visit tacoma.gov
2. MINIMUM REQUIREMENTS
The Finance Department is seeking the services of a nationally recognized certified public
accounting firm to perform a financial audit of standalone financial statements for Power, Water,
Rail, Sewer/Wastewater and Stormwater, and Solid Waste Management funds for each of the
five years ending December 31, 2026 through 2030, and to express an opinion as to whether
the statements are presented fairly and in conformity with auditing standards generally accepted
in the United States and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, and are applied on
a basis consistent with that of the preceding year.
As such all responding firms should meet the below stated minimum qualifications and any
other qualifications described throughout this request for proposals.
a) Licensed CPA firm in WA State
b) Independent under professional standards
c) Local offices to Seattle/Tacoma
d) Minimum governmental audit experience of 5 years
e) Minimum utility audit experience of 5 years
f) Experience with similarly situated municipal entities
g) Current peer review report
h) Ability to meet required auditing standards
Request for Proposal Specification No. FI26-0100F
Template Revised: 08/01/2025

3. SCOPE OF SERVICES AND DELIVERABLES
The City anticipates awarding one or more contracts with qualified vendors to fulfill the City's
needs for annual financial audits of all City-owned utility services. The preference is to award a
single contract. However, the City reserves the right to split the award if it is in the City's best
interest.
It is the City's intent to select a consultant based on qualifications and abilities of the firm and
key project individuals.
a) The scope of services will be limited to the audit of each standalone financial statements for
each of the five years ending December 31, 2026, through 2030. The purpose of the audits
is to obtain the auditor's opinion on the fairness of the financial statements presented, and
are in conformity with generally accepted accounting principles applied on a basis
consistent with auditing standards generally accepted in the United States and the
standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, and shall include such tests, sampling and
other audit techniques as the auditor determines necessary in the circumstances. Any
additional services for which the Finance Department would be charged may be subject to a
new contract or amendments to the contract entered into pursuant to this RFP and subject
to the provisions of all applicable City ordinances.
b) Issue Audit reports for the Power Division, Water Division, Rail Division, Sewer/Wastewater
and Stormwater and Solid Waste Management utilities after auditing each standalone
financial statements which include Statement of Net Position, Statements of Revenues,
Expenses, and Changes in Net Position, Statements of Cash Flows, Required
Supplementary Information, and accompanying Notes to the financial statements. The
Finance Department must receive the audit report within a reasonable time frame following
the completion of final field work.
c) It is the responsibility of the financial auditor to request and acquire access to any needed
information pertinent to audits of the financial statements. The most likely sources for
obtaining such information are the Finance Department and the State Auditor's Office for the
year(s) in question.
d) Ascertain whether the operating divisions' have complied with debt service, bond reserve
fund and other requirements as prescribed in the various bond resolutions and ordinances
of the City of Tacoma.
e) Prepare and submit a management letter to the Finance Department no later than five days
following the audit report. The management letter shall report all significant opportunities for
realistically improving internal control of Divisions' and procedures which are discovered or
observed by the auditor in the course of the audit.
f) Prepare Engagement Letter and perform agreed upon procedures in conformity with
attestation standards related to City requirements established by the Environmental
Protection Agency (EPA) under the provisions of the Thea Foss and Wheeler-Osgood
Problem Areas RD/RA Consent Decree of the City of Tacoma.
Request for Proposal Specification No. FI26-0100F
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g) Provide two CPE credit qualified training sessions per year by subject matter experts of at
least four hours on current topics such as implementation of GASB pronouncements and
reporting requirements.
4. CONTRACT TERM
The contract will be for a five-year period with the option to renew the contract two additional
two-year terms. The City reserves the right to cancel the contract for any reason, by written
notice, as stipulated in the contract.
Submittals submitted and/or the selected Consultant(s) may be used for projects of similar type
and scope at the sole discretion of the City for up to one year.
5. CALENDAR OF EVENTS
This is a tentative schedule only and may be altered at the sole discretion of the City.
Contract may be issued after Public Utility Board and/or City Council approval.
The anticipated schedule of events concerning this RFP is as follows:
Publish and issue RFP: 5/15/2026
Pre-Submittal Questions: 5/22/2026
Response to Questions: 5/29/2026
Submittal Due Date: 6/9/2026
Submittal Evaluated, on or about: 6/22/2026
Interviews/presentations, on or about: 6/29/2026
Award Recommendation: 7/6/2026
Public Utility Board/City Council Approval, on or about 8/11/2026
6. INQUIRIES
6.1 Questions should be submitted to Brandon Snow via email to bsnow@tacoma.gov.
Subject line to read:
FI26 - 0100F - VENDOR NAME
6.1 Questions are due by 3 pm on the date included in the Calendar of Events section.
6.2 Questions marked confidential will not be answered or included.
6.3 The City reserves the discretion to group similar questions to provide a single answer or
not to respond when the requested information is confidential.
6.4 The answers are not typically considered an addendum.
Request for Proposal Specification No. FI26-0100F
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6.5 The City will not be responsible for unsuccessful submittal of questions.
6.6 Written answers to questions will be posted alongside the specifications at
www.tacomapurchasing.org
7. PRE-PROPOSAL MEETING
7.1 No pre-proposal meeting will be held; however, questions and request for clarifications of
the specifications may be submitted as stated in the inquiries section.
8. DISCLAIMER
The City is not liable for any costs incurred by the Respondent for the preparation of materials,
or a submittal submitted in response to this RFP, for conducting any presentations to the City, or
any other activities related to responding to this RFP, or to any subsequent requirements of the
contract negotiation process.
9. EVALUATION CRITERIA
A Selection Advisory Committee (SAC) will review and evaluate submittals. The relative weight
of each scoring criteria is indicated in the table below.
Criteria Max Points
Qualifications/Experience of Firm 20
Qualifications / Experience of Key Personnel 20
Audit Approach 10
Technical Assistance 5
Client References 10
Fees and Charges / Method of Billing / Hourly Rates 20
Training and CPE Availability 5
Sustainability 5
Equity in Contracting 5
Total 100
After the evaluation, the SAC may conduct interviews of the most qualified Respondents before
final selection.
9.1 The SAC may select one or more respondent to provide the services required.
9.2 The SAC may use references to clarify information in the submittals and interviews, if
conducted, which may affect the rating. The City reserves the right to contact references
other than those included in the submittal.
9.3 A significant deficiency in any one criterion is grounds for rejection of the submittal as a
whole.
Request for Proposal Specification No. FI26-0100F
Template Revised: 08/01/2025