AGENDA TITLE:
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Adopt a Resolution Authorizing the Interim City Manager to Execute Amendment No. 1 to the Professional Services Agreement with LSL, LLP for Financial Auditing Services in the Amount of $84,910, for a Total Not-to-Exceed Amount of $523,328 (IS - FIN)
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MEETING DATE:
May 6, 2026
PREPARED BY:
Chia Lor, Accounting Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution Authorizing the Interim City Manager to Execute Amendment No. 1 to the Professional Services Agreement with LSL, LLP for financial auditing services in the amount of $84,910, for a total not-to-exceed contract amount of $523,328.
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BACKGROUND INFORMATION:
The City entered into a multi-year agreement with LSL, LLP (LSL) on March 2, 2023 to provide financial auditing services for a contract amount not-to-exceed $434,418. On March 30, 2026, Extension No. 1 was executed, extending the agreement through December 31, 2026. As the City continues to refine its financial processes and transition responsibilities among staff, additional support is needed to ensure timely and accurate completion of the Annual Comprehensive Financial Report (ACFR).
During the current fiscal year, several complex accounting matters, staffing transitions, and ongoing process improvements have increased the level of effort required to complete the ACFR. LSL has provided a scope of service and pricing that outlines three options for additional support during the upcoming audit cycles (Attachment 1, Exhibit 2). After reviewing the options, staff determined that Option 1 offers the level of assistance necessary to complete the ACFR within required timelines.
Option 1 includes expanded support with financial statement preparation, audit adjustments, supporting schedules, and other technical components that require specialized expertise totaling $69,910 (Attachment 1). These additional services will help ensure the City meets state and federal reporting deadlines, maintains compliance with accounting standards, and continues progress toward fiscal transparency and strengthening internal processes. A contingency amount of $15,000 is also included to address unanticipated staff support needs that may arise during the ACFR preparation process.
The proposed Amendment No. 1 (Attachment 1) allocates $84,910 in additional funding for auditing services resulting in a revised not-to-exceed contract amount of $523,328.
FISCAL IMPACT:
The proposed amendment costs are anticipated to be $84,910, in addition to already existing contract services. Therefore, the contract total will be a not-to-exceed amount of $523,328.
FUNDING AVAILABLE:
Adequate funding is available to address any unanticipated staff support needs that may arise during the remainder of Fiscal Year 2025/26. The additional funding required for Amendment No. 1 will be appropriated as part of the Fiscal Year 2026/27 budget.