1 FIRST A M E N D M E N T T O A G R E E M E N T
THIS FIRST AMENDMENT TO AGREEMENT, dated for purposes of
identification only this day of , 2026 is made and entered into
by and between the
CITY OF ANAHEIM, a municipal corporation,
hereinafter referred to as "ANAHEIM,"
A
N
D
KPMG LLP, a Delaware limited liability company,
Hereinafter referred to as “ACCOUNTANTS.”
W I T N E S S E T H:
WHEREAS, the parties have previously entered into a written agreement dated June 23, 2020, to provide financial and compliance auditing services (hereinafter, the “Agreement”); and
WHEREAS, the parties wish to amend the Agreement to increase the Compensation for the Term of the Agreement by an additional $4,242,700.00 to cover the cost of ACCOUNTANTS performing annual financial audits for City of Anaheim for the fiscal years ending June 30, 2026, 2027 and 2028; and
WHEREAS, the parties also desire to amend the Agreement to extend the Term of the Agreement for an additional three (3) years, with two (2) optional one (1) year renewals.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS:
1. The Term of the Agreement is hereby extended for an additional three (3) years following the date of exe cution by ANAHEIM of this First Amendment to Agreement , extending the three (3) fiscal years ending June 30, 2026, 2027, and 2028. 2 In addition, the Director of Finance is hereby authorized to renew this Agreement upon the same terms and conditions for no more than two (2) additional one (1) year terms ("Renewal Term"), unless CONSULTANT provides written notice of termination no less than thirty (30) days prior to completion of the term in progress (hereinafter the phrases “Initial Term” and “Renewal Term,” if any, shall be collectively referred to as the “Term").
2. That Section 3.3 of the Agreement, “COMPENSATION,” is hereby amended in its entirety to read as follows:
“3.3 It is understood by and agreed between the parties to this Agreement that full and complete payment to ACCOUNTANTS for services rendered and expenses incurred in performing the annual audits required by this Agreement shall not exceed the following amounts set forth in the “Fee Structure” attached as Exhibit A-1 hereto: Seven Hundred Ninety- Seven Thousand, Seven Hundred Dollars and No/100 Cents ($797,700.00) for the fiscal year ending June 30, 2026 ; Eight Hundred Twenty Thousand Dollars and No/100 Cents ($820,000.00) for the fiscal year ending June 30, 2027; and Eight Hundred Fifty Thousand Dollars and No/100 Cents ($850,000.00) for the fiscal year ending June 30, 2028.”
3. That Section 3.4 of the Agreement, “COMPENSATION,” is hereby amended in its entirety to read as follows
In the event of an extension to the Term, ACCOUNTANTS’ annual audit fees for any extension period shall not exceed the following amounts set forth in Exhibit A-1 hereto: Eight Hundred Seventy- Five Thousand Dollars and No/100 Cents ($875,000.00 ) for the fiscal year ending June 30, 2029; Nine Hundred Thousand Hundred Dollars and No/100 Cents ($900,000.00) for the fiscal year ending June 30, 2030.
4. Except as expressly amended hereby, all the remaining provisions of the Agreement, as amended, shall remain in full force and effect.
5. ACCOUNTANTS and ACCOUNTANTS's signators represent that the signators hold the positions set forth below their signatures and that the signators are authorized to 3 execute this First Amendment to Agreement on behalf of ACCOUNTANTS and to bind ACCOUNTANTS hereto.
6. This First Amendment to the Agreement shall be effective on the date on which this Agreement is executed by ANAHEIM.
[Signatures Appear on Following Page]
4 IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Agreement to be executed on the dates hereinafter respectively set forth.
CITY OF ANAHEIM,
a municipal corporation
DATE OF EXECUTION:
By_________________________________________
Deborah A. Moreno
Finance Director/City Treasurer
ATTEST:
By _________________________________
City Clerk of the City of Anaheim
"CITY"
KPMG LLP, a Delaware limited liability company
DATE OF EXECUTION: By___________________________________
Printed Name__________________________
Title_________________________________
" ACCOUNTANTS"
APPROVED AS TO FORM:
ROBERT FABELA, CITY ATTORNEY
By___________________________________
Bryn M. Morley
Deputy City Attorney
Date__________________________________
158351
5 EXHIBIT A-1
STARTS AFTER THIS PAGE
March 10, 2026
City of Anaheim
200 South Anaheim Boulevard, Suite 643
Anaheim, California 92085
RE: External Audit Services
Dear Debbie:
Thank you again for engaging KPMG in discussions relating to extending our long-term professional relationship together. The City of Anaheim (the City) is an extremely valuable relationship for KPMG and we appreciate the opportunity to continue to serve the City.
Our Commitment to the City of Anaheim
We have dedicated over 20 years to understanding your unique needs and understanding the business issues that face the City and industry as a whole. From the first year KPMG formally started working with the City, KPMG has focused on delivering quality audits while providing our professional services at a significantly discounted fee. We are also committed to continuous improvement as we work with the City now and into the future.
Reports, Services and Associated fee
Based on our history of working with your team and the City, our proposed fees include the following scope of work:
– Audit of the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Anaheim, California as of and for the years ended June 30, 2026-June 30, 2028, including the June 30, 2029 and June 30, 2030 as two additional optional years.
Other Reports:
– Reports issued in connection the Uniform Guidance audit (assumes 3 major programs) – Audit of the fund financial statements of the Electric Utility Fund – Audit of the fund financial statements of the Water Utility Fund – Audit of the financial statements of the North Net Joint Training Facility (North Net) – Audit of the financial statements of the Metro Cities Fire Authority (Metro Cities) – Audit of the financial statements of the Emergency Response Authority (HazMat) – Agreed-upon procedures report for REAC
– Agreed-upon procedures reports for GANN for the following:
– City of Anaheim, California’s Appropriation Limit Worksheet – City of Anaheim’s Facilities District No. 08-1 (Platinum Triangle) Appropriations Limit Worksheet
– City of Anaheim’s Facilities District No. 08-1 (Platinum Triangle) Appropriations Limit Worksheet
– AU-C 260 letter – communications with those charged with governance – Summary of internal control deficiencies letter, if any
KPMG LLP
Suite 1500
550 South Hope Street
Los Angeles, CA 90071-2629
Telephone
+1 213 972 400 0
Fax +1 213 622 121
7 kpmg.com
KPMG LLP , a Delaware limited liability partnership, and its subsidiaries are part of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
City of Anaheim
March 10, 2026
Based on our extensive history of working with the City and given the scope of these audits with total hours of over 7,000 hours, we are committed to continuing our working relationship with the City by keeping our 2026 fees flat from those charged for the FY25 audit of $797,700 and fees of $820,000 and $850,000. We are also committing to the following fees for two additional optional years with $875,000 for the FY29 audits and $900,000 for the FY30 audits.
In closing, I would emphasize one final point: we want to keep your business.
Please do not hesitate to contact me if you have any questions at Very truly yours,
KPMG LLP
Chris Ray
Partner