AVALON CITY COUNCIL MEETING
TUESDAY, JUNE 2, 2026 — 5:00 PM
410 AVALON CANYON ROAD, AVALON, CA 90704
AGENDA
In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting.please contact the City Clerk’s Office (310) 510-0220. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35, 102-35.104 ADA Title II). All public records relating to an agenda item on this agenda are available for the public inspection at the time the records are distributed to all, or a majority of all, members of the City Council. Such records shall be available at City Hall located at 410 Avalon Canyon Rd.
For the public’s convenience, but not participation, the meeting can be viewed:
On local cable: Catalina Broadband Solutions channel 3
Streaming on YouTube: https://www.youtube.com/CityofAvalonCA
CALL TO ORDER I PLEDGE OF ALLEGIANCE I INVOCATION I ROLL CALL
ANNOUNCEMENTS I WRITTEN COMMUNICATIONS
DEPARTMENT HEAD REPORTS
CITY MANAGER REPORT I CITY ATTORNEY REPORTCOUNCILMEMBER REPORTS I REQUESTS I MAYOR REPORT
ORAL COMMUNICATION
Members of the public may address the City Council at this time. No action will be taken onnon-agenda items at this meeting. Speakers should limit comments to two (2) minutes each.
PRESENTATIONS — Finance Director, Matthew Baker will provide an overview of the proposed capital improvement project budget for FY 2026-27. (15 minutes)CONSENT CALENDAR
1. Actions
Although the live recording is the official record of public meetings, minutes are prepared for the Council’s approval.
Recommended Action
Approve minutes from the May 19, 2026 regular City Council Meeting.
2. Warrants
Expenditures Submitted for Approval:
• US Bank General Account Warrants totaling $458,741 .63• US Bank [Ml Housing Authority Warrants $146,477.31• Two payrolls totaling $544,847.43. • Four electronic fund transfers totaling $214,809.82.
CITY COUNCIL AGENDA
JUNE 2, 2026
PAGE 2
Recommended Action
Approve the disbursements for April 27, 2026 through May 15, 2026 totaling $1,364,876.19.
3. Adopt an Ordinance Prohibiting Fireworks in the City of Avalon This ordinance was introduced and all further readings were waived at the May 19, 2026 regular City Council Meeting. Though the City has already adopted the Los Angeles County Fire Code — which prohibits fireworks — in order to simplify enforcement, staff recommends adoption of a basic ordinance that prohibits the use, possession, sale and discharge of fireworks within the city without a permit.
Recommended Action
Adopt an ordinance prohibiting the use, possession, sale and discharge of fireworkswithin the City of Avalon.
4. Award Professional Audit Services Contract
The City issued a Request for Proposals (RFP) for professional auditing services. The City received three (3) proposals from firms meeting the mandatory elements outlined in the RFP.
Recommended Action
Authorize the City Manager to execute a professional services agreement with DavisFarr LLP for professional auditing services for the fiscal year ending June 30, 2026, with the option of extending for the two (2) subsequent fiscal years.
GENERAL BUSINESS5. Catalina Food Tours Transportation Permit Application On April 26, 2026, the City received a transportation permit application from Ms. Erin Eubank to conduct guided food tours utilizing one existing Residential Vehicle permit assigned to business partner Simon Alvarez. The existing company is a walking tour and would like to add a transportation component for local restaurants further out from town center.
Recommended Action
1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Catalina Food Tours to be added to the existing Residential Vehicle permit to conduct tours with stated conditions.
6. Roger’s Guided Tours Transportation Permit Application On March 31, 2026, the City received a transportation permit application from Mr. RogerCadman to conduct guided tours utilizing one existing Residential Autoette permit. The Residential Autoette would be used to conduct in-town tours.Recommended Action
1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Roger’s Guided Tours utilizing one existing Residential Autoette permit to conduct tours with stated conditions.
CITY COUNCIL AGENDA
JUNE 2, 2026
PAGE 3
7. Pebbly Beach Road Temporary Turn Around Installation and Traffic Safety Improvements Due to construction associated with the Cabrillo Mole Revitalization Project, the parking and turn around area located at the Cabrillo Mole — approximately 120 Pebbly Beach Road — will be eliminated. To support taxi and tour operations, as well as traffic safety for all vehicles, City Staff have developed a plan to mitigate congestion.
Recommended Action
Approve the plan as presented for modifications and striping along Pebbly Beach Road including installation of k-rail, signage and striping to install a temporary vehicle turn around.
8. Adult-Use Cannabis Discussion
A member of the City Council requested City Staff bring back a discussion regarding expansion of the sale of adult-use/recreational cannabis in Avalon.
Recommended ActionProvide direction to Staff regarding City Council’s desire to pursue legalization of adultuse cannabis in Avalon.
CLOSED SESSION
1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION
Name of case: Safari Club International; California Rifle and Pistol Association, Incorporated; California Bowmen Hunters/State Archery
Association; Howl for Wildlife, Inc.; California Deer Association and Coalition to Save Catalina Deer v. California Department of Fish and Wildlife; Catalina Island Conservancy; and Does 1-10.
Case Number: 26STCP00987
ADJOURN
NOTICE OF POSTING
I, Devin Elise Hart, declare that the City Council Agenda for Tuesday, June 2, 2026 was posted on Friday, May 29, 2026 on the City’s website, www.cityofavalon.qov/aqendacenter, and at City Hall, 410 Avalon Canyon Road.Devin Elise Hart, Senior Management Analyst
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: 1
ORIGINATING DEP: City Clerk CITY MANAGER: IZA(.(
PREPARED BY: Gabrielle Morones, City Clerk
SUBJECT: City Council Minutes
RECOMMENDED ACTION(S): Approve minutes from the May 19, 2026 regular City Council Meetings.REPORT SUMMARY: Although the live recording is the official record of public meetings,minutes are prepared for the Council’s approval.FISCAL IMPACTS: N/A.
GOAL ALIGNMENT: Not Aligned.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A.
FOLLOW UP ACTION: File minutes in the City Clerk’s office.
ADVERTISING, NOTICE AND PUBLIC CONTACT: The item was properly listed on the posted agenda pursuant to the Brown Act.
ATTACHMENTS: May 19, 2026 regular City Council Meeting Minutes.
AVALON CITY COUNCIL MEETING
TUESDAY, MAY 19, 2026
MINUTES
CALL TO ORDER-5:O0 p.m.
ROLL CALL- ROLL CALL-Present: Mayor Anni Marshall, Councilmembers De La Rosa,Lisa Lavelle, Michael Ponce and Mary Schickling. Also present: City Manager David Maistros, City Attorney Scott Campbell and City Clerk Gabrielle Morones.
WRITTEN COMMUNICATIONS-City staff received 25 written communications regarding Item #6. (1) Consider Resolution Making Findings and Determinations Regarding Objections to Proposed Sewer, Saltwater, and Solid Waste Fees; (2) Public HearingSewer, Saltwater, and Solid Waste Fees; (3) Consider a Resolution to Adopt Sewer,Saltwater, and Solid Waste Fees; (4) Find the Fees Exempt from Review Under CEQA; and (5) Set Public Hearing for Collection of Fees on Tax Roll. Copies were distributed to City Council and are on file in the City Clerk’s office.
COUNCILMEMBERS REQUESTS- Councilmember Lavelle requested that the Enhanced Infrastructure Finance District (EIFD) be included on a future agenda for discussion.
PRESENTATIONS-Presentation #3 Taken out of order.
1. Finance Director, Matthew Baker, walked through the new 24-hour short-term rental complaint hotline offered through Host Compliance.3. A representative of Catalina Island Health provided an update regarding the organization.2. Finance Director, Matthew Baker provided an overview of the proposed operating budget for internal funds and sewer, saltwater and solid waste funds.
CONSENT CALENDAR-There were four items on the Consent Calendar. Item #1 was pulled for a separate vote by Councilmember Ponce as he was not in attendance at the April 21, 2026 City Council Meeting.
Motion to approve Items #2-#4 made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)
2. South Beach Restoration Project Budget Amendment and Request to go to RFP
1. Authorized a budget amendment for CIP Project # 205004 — South Beach Seawall Repair and Sand Restoration Project — increasing fund 10425 by$2.48 million in Fiscal Year 2025-26. 2. Authorized City Staff to develop andsolicit a request for proposals from qualified vendors to complete the scope of
CITY COUNCIL MINUTES
MAY 19, 2026
PAGE 2
work outlined in the South Beach Seawall Repair and Sand Restoration Project.
3. Authorization to Purchase Saltwater System Supplies for Public Works Operations.
Authorized the City Manager or their designee to purchase saltwater system parts from Orange County Winwater Company utilizing Saltwater Fund 11325-6552 for an amount of not-to-exceed $80,000.
4. Authorize the Purchase of Vehicles to Expand the City’s Micro Transit System
1. Authorized City Manager, or their designee, to procure per the City’s purchasing policy, three (3) 2026 GEM E6 LSV carts for a not-to-exceed sum of $160,000.00 from the lowest responsive bidder. 2. Amended the budget for the Avalon Transit Fund to include a $160,000.00 expenditure for Vehicle Replacement Fund (Account 12325-6781) and $127,227 in offsetting grant revenues.
PULLED ITEM
1. Actions
Approved minutes from the April 21, 2026 regular City Council Meeting.
Motion to approve made by Lisa Lavelle, seconded by Yesenia De La Rosa.(4 Ayes-Marshall, De La Rosa, Lavelle and Schickling; 1 Abstention-Ponce) Approved minutes from the May 4, 2026 regular City Council Meeting.
Motion to approve made by Lisa Lavelle, seconded by Michael Ponce. (All Ayes)
PUBLIC HEARING
5. Appeal of Oversized Vehicle Permit
1. Mayor Marshall opened the Public Hearing. 2. Public Comment was heard. 3.
Mayor Marshall closed the Public Hearing. 4. City Council considered the applicant’s appeal and determined to: C.) Issue a Temporary Permit until the Avalon Municipal Code §4-4 revision and issue a refund of the appeal fee.
Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa. (All Ayes)
CITY COUNCIL MINUTES
MAY 19, 2026PAGE 3
6. (1) Consider Resolution Making Findings and Determinations Regarding Objections to Proposed Sewer, Saltwater, and Solid Waste Fees; (2) Public Hearing — Sewer, Saltwater, and Solid Waste Fees; (3) Consider a Resolution to Adopt Sewer, Saltwater, and Solid Waste Fees; (4) Find the Fees Exempt from Review Under CEQA; and (5) Set Public Hearing for Collection of Fees on TaxRoll
1. City Council adopted Resolution No. 26-16 of the City Council of the City of Avalon Adopting Findings and Determinations Related to the Presentment of Objections to the Proposed Sewer, Saltwater, and Solid Waste Service Fees.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)
2. Mayor Marshall opened the public hearing. Public comments were heard; Mayor Marshall closed the public hearing, and determined that written protests from the owners of a majority of the parcels subject to the proposed Sewer, Saltwater, andSolid Waste rate increases had not been received. A majority protest does not exist.
3. City Council adopted Resolution No. 26-17 of the City Council of the City of Avalon Establishing Rates for Sewer, Saltwater, And Solid Waste Service Fees and Finding These Rates Are Exempt from the California Environmental Quality Act.
4. The establishment of maximum service fees was found to be exempt from the California Environmental Quality Act (“CEQA”); and
5. Following adoption of the Resolution by at least a two-thirds vote of the CityCouncil, Staff was directed to schedule a new public hearing to adopt a report and direct placement of the annual fees for Fiscal Year 2026—2027 Sewer, Saltwater,and Solid Waste fees on the property tax roll by the County of Los Angeles.
Motion to approve made by Lisa Lavelle, seconded by Michael Ponce. (All Ayes)
GENERAL BUSINESS
7. First Reading of an Ordinance Prohibiting Fireworks in the City of Avalon Introduced and waived all further readings of an ordinance prohibiting the use, possession, sale and discharge of fireworks within the City of Avalon.
Motion to approve made by Michael Ponce, seconded by Lisa Lavelle. (All Ayes)
8. Contract for Stage 1 Design and Engineering Services Progressive Design-Build Contract for the Cabrillo Mole Revitalization Project Phase 2
1. Waived any minor irregularities in the proposal of Anderson Burton Construction, Inc., for the Cabrillo Mole Revitalization Project Phase 2; 2. Awarded the Stage 1
CITY COUNCIL MINUTES
MAY 19, 2026PAGE 4
design and engineering services progressive design-build contract for the Cabrillo Mole Revitalization Phase 2 Project to Anderson Burton Construction, Inc., thus affirming the City Manager’s rejection on an appeal filed by Padelford; subject to finalization of such an agreement, 3. Authorized the City Manager or designee to negotiate and bring back a contract agreement with Anderson Burton Construction for City Council approval.
Motion to approve made by Michael Ponce, seconded by Yesenia De La Rosa. (All Ayes)
CLOSED SESSION- 8:38 p.m.-9:09 p.m.
Following the appropriate announcement of the Closed Session items the City Council went into Closed Session to discuss the following:
1. CONFERENCE WITH LEGAL COUNSEL -ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of §54956.9.
One case.
Following Closed Session, the City Attorney announced that the City Council unanimously authorized the City Attorney to file papers with the federal communications commission.
Mayor Marshall adjourned the meeting at 9:09 p.m.
I, Gabrielle Morones, City Clerk, do hereby certify that the digital recording of the regular City Council Meeting on May 19, 2026, is the official record of the Council Meeting and is on file and maintained in City Hall.
Gabrielle Morones, City Clerk
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: 1
ORIGINATING DEP: Finance CITY MANAGER: _______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Warrants
RECOMMENDED ACTION(S): Approve the disbursements for April 27, 2026 through May 15, 2026 totaling $1,364,876.19.
REPORT SUMMARY: These disbursements through May 1 5h are comprised of warrants from the US Bank General Account totaling $458,741.63, warrants from the US Bank [Ml Housing Authority Account totaling $146,477.31, two payrolls totaling $544,847.43, and other electronicfund transfers totaling $214,809.82.
ITEM DESCRIPTION AMOUNT DATE
GF US BANK WARRANTS CK#41975-41980 146,243.90 -05/01/26 LMI HOUSING AUTHORITY US BANK WARRANT CK# 5079 146,477.31 05/11/26 GF US BANK WARRANTS CK# 41981-41998 312,497.73 05/12/26 PAYROLL 270,098.61 05/01/26PAYROLL 274,748.82 05/15/26EFT -CALPERS MEDICAL 108,217.06 05/06/26EFT-CALPERS RETIREMENT 49,198.59 05/01/26EFT -CALPERS RETIREMENT 49,347.74 05/06/26EFT -HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 8,046.43 05/15/26 TOTAL DISBURSEMENTS $ 1,364,876.19
GOAL ALIGNMENT: Ongoing meeting of City obligations.
FISCAL IMPACTS: There are sufficient funds available, and the expenditures are included in the FY25-26 Budget.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: N/A
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Audit Certificate, Warrant Lists, U.S. Bank Credit Card Detail
CITY OF AVALON
APRIL 27TH, MAY 15TH 2026 DISBURSEMENTS
June 2, 2026
ITEM DESCRIPTION AMOUNT DATE
GE US BANK WARRANTS CKI* 41975-41980 146,243.90 05/01/26 LMI HOUSING AUTHORITY US BANK WARRANT CK# 5079 146,477.31 05/11/26 GE US BANK WARRANTS CKIt41981-41998 312,49773 05/12/26
PAYROLL 270,098.61 05/01/26PAYROLL 274,748.82 05/15/26
EFT - CALPERS MEDICAL 108,217.06 05/06/26EFT -CALPERS RETIREMENT 49,198.59 05/01/26EEl - CALPERS RETIREMENT 49,347.74 05/06/26EFT - HARBOR/REC CREDIT CARD AND BANK SERVICE FEES 8,046.43 05/15/26 TOTAL DISBURSEMENTS $ 1,364,876.19
CERTIFICATE
IN ACCORDANCE WITH SECTION 32702OF THE GOVERNMENT CODE, I CERTIFY
THAT THE ABOVE DEMANDS ARE ACCURATEAND THAT FUNDS ARE AVAILABLE FOR PAYMENT.
APPROVED AND AUDITED THIS
2ND DAY OF JUNE 2026 I CERTIFY UNDER PENALTY OF PERJURY
THAT THE FOREGOING IS TRUE AND
CORRECT.
AUDIT COMMITTEE -MICHAEL PONCE EXECUTED THIS 2ND DAY OF JUNE 2026
AUDIT COMMITTEE- MARY SCHICKLING FINANCE DIRECTOR- MATTHEW BAKER
CITY OF AVALON
WARRANT DISBURSEMENTS
May 1, 2026
DESCRIPTION
LEGAL FEES: 01/2026
LEGAL FEES: 03/2026
LIAB. INSURANCE. FY26
SERVICE: CIP 234501VOID: MULTI-STUB CHECK
VOID: MULTI-STUB CHECK
SEE AICACHEEI DETAIL
CHECK DATE
NUMBER ISSUED AMOUNT NAME
41975 05/01/2026 37,776.50 BEST, BEST & KRIEGER, LLP
4197S 05/01/2026 41,04020 BEST, BEST & KRIEGER, LLP
41976 05/01/2026 2,283.25 CIBA41977 05/01/2026 28,760.55 PERFORMANCE TRUCK REPAIR, INC. 41978 05/01/2026 - CORPORATE PAYMENT SYSTEMS41979 05/01/2026 - CORPORATE PAYMENT SYSTEMS 41980 05/01/2026 36,383.40 CORPORATE PAYMENT SYSTEMS
$ 146,243.90
CITY OF AVALON
US BANK CREDIT CARD CHARGES PAID MAY 1,2026
June 2, 2026
LAST NAME POST GATE AMTUSD VENDOR DESCRIPTION DEFARTMENT GREENLAW 4/6/2026 135.81 PERRLT BEACH BUILDING SUPPLY SUPPLIES: CIP 1160003 PUBLIC WORKSGILBERT 4/13/2026 360.00 INTERNATIONAL CODE COUNCIL SUBSCRIPTION: PLANNING PLANNINGPHIL H 3/21/2026 SERB] PEBBLY REACH BUILDING SUPPLY SUPPLIES: HARBOR MAINTENANCE PUBLIC WORKSPHIL H. 3/27/2026 11.03 CHETT HARDWARE SUPPLIES: HARBOR MAINTENANCE PUBLIC WORKSPHIL H. 3/30/2026 BS.R7 CHEfS HARDWARE SMALL TOOLS PUBLIC WORKSPHIL H. 4/3/2026 26.76 CHET’S HARDWARE SMALL TOOLS PUBLIC WORKSPHIL H. 4/6/2026 54.00 CHET’S HARDWARE SMALL TDDLS PUELIC WDRKSPHIL H. 4/0/2026 20.03 PEBBLY REACH RUILDING SUPPLY SUPPLIES: HARROR MAINTENANCE PUBLIC WORKSPHIL H. 4/10/2026 2423 CHET’S HARDWARE SMALL TODLS PUBLIC WDRKSPHIL H. 4/13/2026 12.67 CHET’S HARDWARE SMALL TDDLS PUBLIC WDRKS PHIL H. 4/13/2026 580.95 CHET’S HARDWARE SUPPLIES: HARBOR MAINTENANCE PUBLIC WORKSPHIL H. 4/13/2026 15.41 CHEIS HARDWARE SUPPLIES: HARBOR MAINTENANCE PUBLIC WORKSPHIL H. 4/13/2026 R.RS CHEFS HARDWARE SUPPLIES: HARBOR MAINTENANCE PUBLIC WORKS JEEP H. 3/SR/2026 SRB.42 CHEFS HARDWARE SMALL TOOLS PUBLIC WORKSJEFF H. 3/26/2026 1,587.51 PERGUSDN WATERWDRKS SUPPLIES: PUBLIC WDRKS PUBLIC WORKS JEFF H. 3/30/2026 36.37 CHETS HARDWARE SUPPLIES: PUBLIC WDRKS PUBLIC WORKSJEFF H 3/30/2026 1467.77 FERGUSON WATERWDRKS SUPPLIES. PUBLIC WDRKS PUBLIC WORKSJEFF H. 4/6/2026 44.09 NDRTHERH TOOL SUPPLIES: PUBLIC WDRKS PUBLIC WDRKSJEFF H 4/1/2026 050.4R CEET’S HARDWARE SUPPLIES PUBLIC WORKS PURLIC WORKSJEFF H. 4/13/2026 319.12 FERGUSON WATERWDRKS SUPPLIES PUBLIC WDRKS PUBLIC WORKS L. RURIO 3/OR/2026 49.91 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL. BUIlD 3/20/2026 114.72 CEET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL. RDBIU 3/23/2026 27.71 CHETS HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL. RURID 3/23/2026 13.03 CHEfS HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL RURID 3/30/2026 61.00 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL. RURID 3/30/2026 56624 HARRDR FREIGHT SUPPLIES: VEHICLE MAINTENANCE GARAGEL RUBID 4/3/2026 630.57 SHAPON SMALLTDDLS GARAGEL RURID 4/1/2026 352.74 SHAPON SMALLTDDLS GARAGEL RURID 4/9/2026 73.85 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL RURID 4/10/2026 25.04 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL BUIlD 4/13/2026 66.39 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGE L. lURID 4/03/2026 25.25 CHET’S HARDWARE SUPPLIES: VEHICLE MAINTENANCE GARAGEL. BUIlD 4/13/2026 130.04 SNAP ON SMALL TDDLS GARAGE CURDERU 3/19/2026 4,724.22 OP CYRERWELD STORE VEHICLE/EQUIPMENT REPAIR PUBLIC WORKS CORDERD 3/23/2026 632 Ri TEE HOME DEPOT SUPPLIES PUBLIC WORKS PUBLIC SVORKS CORDERO 3/23/202E 404.91 TEE HOME DEPOT SMALL TOOLS PUBLIC SVORKSCORDERO 3/23/2026 172.51 THE HOME DEPOT SMALL TOOLS PUBLIC WORKSCORDERO 3/23/2026 163.53 THE HOME DEPOT SMALL TOOLS PUBLIC WORKSCOROERO 3/24/2026 3,181.65 THE HOME DEPOT SMALL TOOLS PUBLIC WORESCOROERO 3/24/2026 309.98 THE HOME DEPOT SMALL TOOLS PUBLIC WORKSCORDERO 3/24/2026 174.50 THE HOME DEPOT SMALL TOOLS PUBLIC WORKSCORDERO 3/25/2026 92.21 THE HOME DEPOT SMALL TOOLS PUBLIC WORKS HMEICAK 3/27/2026 327.83 MAGGIE’S BLUE ROSE MEALS: PUBLIC WORKS PUBLIC WORKS HMEILAK 3/30/2026 1,019.RB PEBBLY BEACH BUILDING SUPPLY SUPPLIES:PUBLIC WORKS PUBLIC WORKSHMEILAK 4/2/2026 65.26 BEPLACEMENTPARTS.COM SUPPLIES:PUBLIC WORKS PUBLIC WORKSHMEILAK 4/6/2026 6.02 CHESS HARDWARE EQUIPMENT REPAIRS PUBLIC WORKSHMEILAK 4/8/2026 1,009.14 PEBBLY BEACH BUILDING SUPPLY SUPPLIES:PUBLIC WORKS PUBLIC WORKSHMEILAK 4/111/2026 1105 USPS POSTAGE PUBLIC WORKSHMEILAK 4/13/2026 328.49 DICKIES UNIFORMS: PUELIC WORKS PUBLIC WORKSHMEILAK 4/13/2026 3967 CHET’S HAROWABE SUPPLIES. PUBLIC WORKS PUBLIC WORKSM. DAILEY 3/17/2026 (R.54) THE HOME DEPOT OPERATING COSTS: IT AUMINM. DAILEY 3/30/2026 34.95 SYNOLOGT OPERATING COSTS: IT ADMINM. DAILEY 3/30/2026 6S.R0 STARLINK OPERATING COSTS: IT AOMINM. DAILEY 3/30/2026 8S.50 EXCLAIMER PARNROROUGH OPERATING COSTS: IT ADMINM. DAILEY 3/31/2026 62.00 GETJOAN.COM OPERATING COSTS: IT AOMINM. DAILEY 4/2/2026 82.96 CYBERLINK OPERATING COSTS: IT ADMINM. DAILEY 4/2/2026 228.00 DOMOTZ OPERATING COSTS: IT ADMINNJ. DAILEY 4/2/2026 1,790.72 DELL OPERATING COSTS: IT ADMIN M DAILEY 4/2/2026 212.00 THE SHREDDING PLACE OPERATING COSTS: IT ADMINM DAILEY 4/3/2026 441.00 INTRUSIONOPS LLC OPERATING COSTS: IT ADMIN M. DAILET 4/7/2026 4.64 SYNOLOGY OPERATING COSTS: IT ADMIN M. DAILET 4/10/2026 161.36 MICRDSOPT OPERATING COSTS: IT ADMINM. DAILEY 4/15/2026 25.00 CL000FLARE OPEEATING COSTS: IT AGMIN A. GONZALES 4/10/2026 47.00 CATALINA EXPRESS TRAINING/TRAVEL AOMIN G.E. HART 4/10/2026 11.09 DRDPROX XUESCCRIPTION: IT ADMIND.E. HART 4/15/2026 11.00 QUICK K SIGN SURSCCRIPTIDN: IT AUMIND.W. HART 3/20/2026 3S7.SR CATALINA EXPRESS TRAVEL: CONTRACT SERVICES RECREATIOND.W. HART 3/20/2026 357.50 CATALINA EXPRESS TRAVEL: CONTRACT SERVICES RECREATIOND.W. HART 3/20/2026 357 50 CATALINA EXPRESS TRAVEL CONTRACT SERVICES RECREATIOND.W. HART 3/20/202E 203.23 VONS PROGRAM SUPPLIES RECREATIOND.W. HART 3/24/2026 152 11 US ART SUPPLY SUPPLIES: DAY CAMP RECREATIOND.W. HART 3/27/2026 6174 VONS SUPPLIES: SENIOR PROGRAM RECREATIOND.W HART 3/30/2026 120.00 STARLINK SUBSCRIPTION: IT RECREATIOND.SV. HART 4/1/2026 4SS.S2 R&H PHOTO PROGRAM SUPPLIES RECREATIOND.SV HART 4/2/2026 2RX.ER SSYEETWATER SOUND PROGRAM SUPPLIES RECREATIONOW. HART 4/3/2026 376.00 CATALINA ISLAND FERRY TRAVEL: CONTRACT SERVICES RECREATIOND.SV. HART 4/3/2026 2R2.00 CATALINA EXPRESS TRAVEL: CONTRACT SERVICES RECREATIOND.W. HART 4/3/2R26 181.00 CATALINA EXPRESS TRAVEL: CONTRACT SERVICES RECREATIOND.W. HART 4/3/2026 04.00 CATALINA EXPRESS TRAVEL: CONTRACT SERVICES RECREATIONOW. HART 4/6/2026 06.81 CHET’S HARDWARE MAINTENANCE DR PREMISES RECREATIONOW. HART 4/7/2026 104.63 CROWN AWARDS PROGRAM SUPPLIES RECREATIONO.W HART 4/14/2026 2.61 CHET’S HARDWARE PROGRAM SUPPLIES RECREATIONO.W HART 4/IS/202B 202.12 CROWN AWARDS PROGRAM SUPPLIES RECREATION Pa1e S of 2
$ 36,303.40 CHECKB 41980
CITY OP AVALON
US BANK CREDIT CARD CHARGES PAID MAY 1,2026
June 2,2026
LAST NAME PDST DATE AMT USD VENDOR DESCRIPTION DEPARTMENTMAISTROS 4/3/2026 2,56199 CYRERLINK OPERATING COSTS: IT ADMINMEFFERT 3/23/2026 16.91 AMAZON SUPPLIES: FIRE FIREMEFEERT 3/24/2026 52.16 HIRSCH PIPE & SUPPLY SMALL TOOLS FIREMEFFERT 3/25/2026 (16.91) AMAZON SUPPLIES: FIRE FIREMEFFERT 4/8/2026 311.90 CATALINA CANYON INN TRAINING/TRAVEL FIRE BAKER 4/6/2026 304.30 ZOOM.COM SUBSCRIPTION: IT FINANCE FRANCIS 3/17/2026 286.65 VISEAPRINT OFPICE SUPPLIES ADMINFRANCIS 3/17/7026 50.00 CMPA TRAINING/TRAVEL ADMINFRANCIS 3/19/7026 10250 TRAFFIC SIGN CORP SPPLIES CODE ENFORCEMENT GOMIN FRANCIS 3/73/2026 1S9.32 EMBASSY SUITES TRAINING/TRAVEL ADMINFRANCIS 3/26/2026 3R5.78 VISTAPRINT OFFICE SUPPLIES ADMIN FRANCIS 4/14/2026 1,04993 ULINE EARTH OAT TRASH SUPPLIES AOMIN ALEGRIA 3/17/2026 25000 STARLINK SUBSCRIPTION IT FIREALEGRIA 3/19/2026 104.00 AVALON PASS OFFICE SUPPLIES FIRE ALEOEIA 3/24/2026 13.97 LIFT TRAINING/TRAVEL FIREALEGRIA 3/24/202E 39.99 ZOCALD TRAINING/TRAVEL FIREALEGRIA 3/24/2026 32.55 MARCHE TRAINING/TRAVEL FIREALEGRIA 3/24/202E 21940 E-Z UP SUPPLIES: FIRE FIREALEGRIA 3/25/2026 13.94 LIFT TRAINING/TRAVEL FIREALEGRIA 3/26/2026 1342 LIlT TRAINING/TRAVEL FIREALEGRIA 3/25/2026 096 LIFT TRAINING/TRAVEL FIREALEGRIA 3/26/2026 600 LOFT TRAINING/TRAVEL FIREALEORIA 3/26/2026 2763 MAVERICK HELICOPTERS FREIGHT FIREALEORIA 3/26/2026 46.00 RIDE YELLOW TORRANCE TRAINING/TRAVEL FIREALEGRIA 3/27/2026 E9.97 LIFT TRAINING/TRAVEL FIREALEGRIA 3/27/2026 4619 FORTUNE COOKIES STARRUCKS TRAINING/TRAVEL EIRE ALEGRIA 3/27/2026 12 20 STARRUCKS TRAINING/TRAVEL FIREALEGRIA 3/30/2026 1391 LOFT TRAINING/TRAVEL FIREALEGRIA 4/2/2026 9400 CATALINA EXPRESS TRAINING/TRAVEL FIREALEGRIA 4/2/2026 90.74 0MB GROUP SAFETY SUPPLIES FIREALEGRIA 4/6/2026 94.00 CATALINA EPRESS TRAINING/TRAVEL EIREALEURIA 4/6/2026 33.65 VONS TRAINING/TRAVEL FIREALEGRIA 4/8/2026 5.00 CATALINA EPRESS TRAINING/TRAVEL FIREALEGRIA 4/8/2026 5.00 CATALINA EPRESS TRAINING/TRAVEL FIREALEGRIA 4/8/2026 12.65 CATALINA EFRESS TRAINING/TRAVEL FIRE ALEGRIA 4/0/2026 90.05 GRILLPARTS.CUM MAINTENANCE OR PREMISES FIREALEGRIA 4/9/2026 El 62 LOBSTER TRAP TRAINING/TRAVEL FIREALEGRIA 4/13/2026 10.99 LIFT TRAINING/TRAVEL FIRE ROGELIU H. 3/10/2026 6761 CHETS NARDWAEE SUPPLIES: PUBLIC WORKS PUBLIC WORKSROGELID H. 3/18/2026 8408 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PUBLIC STORKS ROGELID H. 3/18/2026 790S CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PURLIC SVGRKS ROGELIG H. 3/29/2026 17743 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PIJRLIC STORKSRUGELIU H. 3/19/2026 9.91 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PUBLIC WUTKS000ELIU H. 3/20/2026 39.20 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PTRLIC WORKSRUGELIU H. 3/23/2026 108.30 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PGBLIC WORKSRDGELIU H. 3/25/2026 83.91 CHET’S HARDWARE SMALL TOOLS PUBLIC WORKSROGELIO H. 3/25/2026 12277 CHET’S HARDWARE SUPPLIES PUBLIC WORKS PUBLIC WORKSROGELIG H. 3/25/2026 ROT CHET’S HARDWARE SUPPLIES PURLIC WORKS PUBLIC WORKSROGELIO H. 3/25/2026 22.67 CHEFS HARDWARE SUPPLIES: PURLIC WORKS PUBLIC WORKSROGELIO H. 3/26/2026 170.85 CHET’S HARDWARE SUPPLIES: PURLIC WORKS PUBLIC WORKSROGELIG H. 3/30/2026 161.63 PEBBLY REACH BUILDING SUPPLY SUPPLIES: PURLIC WORKS PUBLIC WORKSROGELIG H. 4/2/2026 217.82 PEBBLY REACH BUILDING SUPPLY SUPPLIES: PURLIC WORKS PUBLIC WORKSROGELIG H. 4/3/2026 29.27 CHET’S HARDWARE EQUIPMENT REPAIRS PUBLIC WORKSROGELIU H. 4/3/2026 1,244.44 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: PURLIC WORKS PUBLIC WORKSROGELIU H. 4/6/2026 E0.E1 THE HOME DEPOT SUPPLIES: PUBLIC WORKS PUBLIC WORKS 000ELIO H. 4/9/2026 00.41 CHET’S HARDWARE SUPPLIES: PUBLIC WORKS PUBLIC WORKSROGELID H. 4/9/2026 32789 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: PUBLIC WORKS PUBLIC WORKSRUGELIU H 4/20/2026 207 23 CHEF’S HARDWARE SUPPLIES: PUBLIC WORKS PUBLIC WORKSRUGELIO H 4/23/2026 E7.SS CHEF’S HARDWARE SUPPLIES: PUBLIC WORKS PUBLIC STORKS RDGELIO H 4/23/2026 44.09 CHEFS HARGWARE SUPPLIES: PUBLIC WORKS PUBLIC STORKS RUGELIU H 4/23/2026 3220 PEBBLY BEACH BUILDING SUPPLY SUPPLIES: PUBLIC WORKS PUBLIC WORKS
CITY OF AVALON
WARRANT DISBURSEMENTS
May 11,2026
CHECK DATE
NUMBER ISSUED AMOUNT NAME DESCRIPTION
5079 5/11/2026 146,477.31 JORDAHL CONSTRUCTION 206 F WHITPLEY RETAINING WALL $ 146,477.31
CITY OF AVALON
WARRANT DISBURSEMENTS
May 12, 2026
CHECK DATENUMBER ISSUED AMOUNT NAME DESCRIPTION
41981 05/11/2026 220,063.47 JORDAHL CONSTRUCTION
41982 05/12/2026 1,979.67 AAA OIL, INC FUEL: ALL DEPTS41983 05/12/2026 4S,692.00 AQUATIC BIOASSAY & CONSULTING SERVICE: WWTP41984 05/12/2026 2,438.25 AVALON MOORING & DIVING SERVICE: HARBOR41985 05/12/2026 435.57 COOK, AMANDA RETIREE INS: 05/202641986 05/12/2026 7,399.74 DELTA DENTAL DENTAL: 05/2026 41987 05/12/2026 50.00 DTSC REPORTING: I-IAZMAT41988 05/12/2026 - FIDELITY SECURITY LIFE INSURANCE VOID: REISSUE41989 05/12/2026 2,293.02 FIDELITY SECURITY LIFE INSURANCE VOID: REISSUE41989 05/22/2026 (2,293.02) FIDELITY SECURITY LIFE INSURANCE VOID: REISSUE41990 05/12/2026 12,S74.20 JILK HEAVY CONSTRUCTION, INC. CIP: PIER41991 OS/12/2G26 798.03 MINUTO, FRANK RETIREE INS: 05/202641992 OS/12/2026 754.61 MINUTO, PHILIP RETIREE INS: OS/2026 41993 05/12/2026 2,300.40 POINOEXTER, JAMES RETIREE INS: 01-05/202641994 05/12/2026 9,357.91 SIRIAS CLEANING SERVICE 1ST HALF: 05/202641995 05/12/2026 565.63 SOUTH COAST AQMD PERMIT: WWTP41996 05/12/2026 170.94 SOUTH COAST AOMD PERMIT: WWTP41997 05/12/2026 1,312.43 STANDARD INSURANCE COMPANY LIFE INS: 05/202641998 05/12/2026 6,604.88 CORPORATE PAYMENT SYSTEMS SEE ATTACHED DETAIL $ 312,497.73
LAST NAME
CAMPBELLSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDTSCHMIDT
SCHMIDTSCHMIDTSCHMIDTSCHMIDTSAHCHEZSAHCHEZSAHCHEZSANCHEZSAHCHEZSANCHEZ
CITY OP AVALON
US BANK CREDIT CARD CHARGES PAID MAY 12, 2026
JRRe 2,2026
DESCRIPTION
SGRSCRIPTIDN: IT
TRAINING & TRAVEL
MAINTENANCE OF PREMISES
TRAINING & TRAVEL
OFFICE SUPPLIES
EQUIPMENTMAINTENANCE OF PREMISES
MAINTENANCE DF PREMISESSURSCRIPTIDN: IT
TRAINING & TRAVELTRAINING & TRAVEL
MEALS: HARBOR MEETING
TRAINING & TRAVELSURSCRIPTION: IT
FLOAT MAINTENANCESURSCRIPTION: IT
TRAINING & TRAVELTRAINING & TRAVELTRAINING & TRAVELTRAINING & TRAVELTRAINING & TRAVELTRAINING & TRAVEL
DEPARTMENT
ADMIN
HARBORHARRORH AR RD RHARBORHARBORH AR RD K
N AR RD RH AR RD RHARRDRHARRDRHARBORHARRORHARBORHARBORHARBORHARRORHARBORHARBORHARBORHARBORHARBOR
POSTDATE AMT OXD VENDOR
4/13/2026 14 RR CANVA
3/23/2026 RSS0 CATALINA EXPRESS3/24/2R2R 25000 CATALINA PEST CONTROL3/30/2026 RS.S0 CATALINA ESPRESS3/30/2026 RSR7 STAPLES 3/30/2026 461.36 WEST MARINE
3/31/2026 12R.RX DEWEY PEST CONTROL3/31/2026 SSO.RX CATALINA PEST CONTROL 4/2/2026 47.40 DAVIS INSTRUMENTS4/3/2026 42.7S CATALINA EXPRESS4/3/2026 42.75 CATALINA EXPRESS4/3/2026 02,SR TOPSIDE4/6/2026 RS.50 CATALINA EXPRESS4/5/2026 023.37 DATATEL COMMUNICATIONS 4/10/2026 1,000.00 VESSEL ASSIST4/03/2026 SR,00 SENDHUR 3/35/2026 R4.X0 CATALINA EXPRESS3/35/2026 5400 CATALINA EXPRESS3/SR/2R26 1,125.10 EXPEDIA3/23/2026 S,R2R.10 EXPEDIA3/24/2026 54.00 CATALINA EXPRESS3/27/2026 ISO.00 CATALINA ISLAND MEDICAL $ 6,604.RR CHECER 4XRRR
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: _______ ORIGINATING DEP: Fire CITY MANAGER: _______ PREPARED BY: Michael Alegria, Fire Chief Devin Hart, Senior Management Analyst
SUBJECT: Adopt an Ordinance Prohibiting Fireworks in the City of AvalonRECOMMENDED ACTION(S): Adopt an ordinance prohibiting the use, possession, sale and discharge of fireworks within the City of Avalon.
REPORT SUMMARY: This ordinance was introduced and all further readings were waived at the May 19, 2026 regular City Council Meeting.
Every year City of Avalon, LA County Fire and Sherriff personnel have problems with illegal fireworks. Though the City has already adopted the Los Angeles County Fire Code — which prohibits fireworks — in order to simplify enforcement, staff recommends adoption of a basic ordinance that prohibits the use, possession, sale and discharge of fireworks within the city.
The intent of the new ordinance is to reasonably regulate the possession, sale, use or discharge of dangerous fireworks within the city to protect the public health, safety, property and general welfare of its residents and visitors alike. Avalon is located in a “Very High Fire Severity Zone.” Illegal discharge of fireworks can easily lead to a large-scale fire within the City.
The ordinance makes it unlawful for any person or responsible party to possess, sell, use ordischarge dangerous fireworks unless a permit authorizing such possession, sale, use ordischarge has been issued by the Fire Chief to the person or responsible party using, selling, ordischarging or found in possession of said fireworks, and unless such person is in possession of a valid pyrotechnic operator’s license issued by the Office of the State Fire Marshal. The FireChief may establish reasonable rules and regulations for governing issuance of a firework permit and may issue the same subject to payment of a fee as established by the City Council.
In addition to prohibiting fireworks in Avalon, the proposed ordinance establishes penalties from $250 to $1 000 for each violation of the ordinance.
Additionally, if fireworks cause a fire or emergency response the person responsible will be heldfinancially responsible for the cost of fire suppression, emergency medical services, law enforcement response, evacuation, and any related damages to the extent permitted by law.CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Increased risk of wildland and structure fires, serious injuries or fatalities to residents, visitors, pets and emergency responders, Property damage to homes, businesses, vehicles, docks, andsurrounding natural areas.
FOLLOW UP ACTION: Implementation of City Council direction.
FISCAL IMPACTS: Undetermined.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: Ordinance.
ORDINANCE NO. ____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AVALON
PROHIBITING THE USE, POSSESSION, SALE, AND DISCHARGE OF
FIREWORKS WITHIN THE CITY OF AVALON
WHEREAS, the California Legislature has declared in Government Code Section 51175, subdivision (a): (1) that fires are extremely costly, not only to property owners and residents, but also to local agencies; (2) that fires pose a serious threat to the preservation of public peace, health, and safety; (3) that it is necessary that cities, counties, special districts, state agencies, and federal agencies work together to bring raging fires undercontrol; and (4) that preventative measures are needed to ensure the preservation of the public peace, health, and safety; and
WHEREAS, California Government Code Section 51178 requires the California Department of Forestry and Fire Protection (‘CalFire”) to periodically identify,recommend, and map fire hazard areas statewide, referred to as” Fire Hazard Severity Zones” (“FHSZ”); and
WHEREAS, the FHSZ Map depicts the entire City to be in a Very High Fire Hazard Severity Zone; and
WHEREAS, the use, possession, sale, and discharge of fireworks within the City poses a significant threat to public health, safety, and welfare due to the City’s uniqueisland environment, wildfire risk, limited emergency access, and dense residential and visitor populations; and
WHEREAS, prohibiting fireworks is necessary to reduce the risk of fires, injuries, and disturbances to residents, visitors, wildlife, and emergency services personnel.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AVALON DOES ORDAIN AS FOLLOWS:
Section 1. The City Council hereby finds that the foregoing recitals are true and correctand are incorporated herein as substantive findings of this Ordinance.Section 2. Title 4, Section 4-16 Fireworks is hereby added to the City’s Municipal Code and will read as follows:
4-1 6.01 — Purpose and FindingsThe use, possession, sale, and discharge of fireworks within the City of Avalon pose a significant threat to public health, safety, and welfare due to the City’s unique island environment, wildfire risk, limited emergency access, and denseresidential and visitor populations.
Prohibiting fireworks is necessary to reduce the risk of fires, injuries, and disturb ances to residents, visitors, wildlife, and emergency services personnel. 4-16.02 — Definition
As used in this Chapter “fireworks” means and includes:
(1) Any combustible or explosive composition or any substance or combination of substances or articles prepared for the purpose of producing a visible or an audible effect by combustion, explosion, deflagration or det onation, whether manufactured, homemade or improvised;(2) Fireworks classified by the State Fire Marshal as “dangerous fireworks” and as “safe and sane fireworks” pursuant to Health and Safety Code Sec tions 12561 and 12562;
(3) Any pyrotechnic devices for which the State Fire Marshal requires alicense to manufacture, sell, transport or operate; and(4) Firecrackers, torpedoes, skyrockets, roman candles, cherry bombs, sparklers, chasers, snakes or other fireworks of like or similar constructionand any fireworks containing any explosive or flammable compound or substance.
4-16.03 — Fireworks Prohibited
It shall be unlawful for any person to use, give, possess, sell, offer for sale, store, ignite, discharge, or otherwise cause to explode any fireworks within the City of Avalon unless a permit authorizing such possession, sale, use or discharge has been issued by the Fire Chief to the person or responsible party using, selling, or discharging or found in possession of said fireworks, and unless such person is in possession of a valid pyrotechnic operator’s license issued by the Office of theState Fire Marshal. 4-16.04 — PenaltiesWhenever a peace officer charged with the enforcement of any provision of the Municipal Code determines that a violation of this chapter has occurred, thepeace officer shall have the authority to issue an administrative citation to anyperson responsible for the violation.
Whenever a peace officer charged with the enforcement of this chapter deter mines that a violation of the chapter has occurred, the peace officer may issue an administrative citation for each violation found to have occurred.
Citations issued pursuant to this chapter shall carry administrative fines as fol lows:
$250 for the first and subsequent violations of having “safe and sane” fireworks
$500 for the first and subsequent violations involving the possession of illegal fireworks
$500 for the violations involving the discharge of fireworks within the city limits of Avalon
$1 000 for violations involving the discharge of fireworks in the Very High Fire Severity Zone
4-16.05 — Cost Recovery
Any person responsible for a fire, emergency response, or public safety incident resulting from the use or discharge of fireworks may be held financially responsible for the costs of fire suppression, emergency medical services, law enforcement response, evacuation, and related damages to theextent permitted by law.
Section 3. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 1 5060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly, as it only involvesthe designation of Fire Hazard Severity Zones in the Local Responsibility Areas as recommended by the Office of the State Fire Marshal.
Section 4. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.Section 5. The City Clerk of the City of Avalon shall certify as to the adoption of thisOrdinance and shall cause the same, or a summary thereof, to be published and or posted in a manner required by law.
INTRODUCED at a regular meeting of the City Council of the City of Avalon on the 1 gth day of May, 2026, by the following vote:
AYES:
NAYS:
ABSENT:ABSTAIN:
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Avalon on this 2 day of June, 2026, by the following vote:
AYES:
NAYS:
ABSENT:ABSTAIN:
Ann H. Marshall, Mayor
ATTEST:
Gabrielle Morones, City Clerk
APPROVED AS TO FORM:
Scott Campbell
Best Best & Krieger, [[P
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: ________ ORIGINATING DEP: Finance CITY MANAGER: _______ PREPARED BY: Matthew Baker, Finance Director SUBJECT: Award Professional Audit Services ContractRECOMMENDED ACTION(S): Authorize the City Manager to execute a professional services agreement with DavisFarr LLP for professional auditing services for the fiscal year ending June30, 2026, with the option of extending for the two (2) subsequent fiscal years.
REPORT SUMMARY: On April 7, 2026, City Council directed Staff to issue a Request forProposals (RFP) for professional auditing services. On April 20, 2026, Staff uploaded the RFP through the Public Purchase portal and advertised the RFP on its website with proposals accepted through May 22, 2026. The City received three (3) proposal from firms meeting themandatory elements outlined in the RFP.
Proposals meeting the mandatory criteria were evaluated based on expertise and experience, in addition to rates and fees. The cost proposal includes the financial statement audit, City Financial Transaction Report (State Controller Report), GANN Limit Report, and Single Audit, if necessary. Proposals were reviewed by the Finance Director, Assistant City Manager, and CityManager, as outlined in the RFP. Davis Farr LLP was identified as the top proposal with thelowest all-inclusive maximum cost. A copy of the technical proposal from each responsive firmhas been included as an attachment to this staff report. Below please find a summary of cost proposals from each proposal for the fiscal year ending June 30, 2026.
Service Description Davis Farr RAMS LSLCity Financial Audit $37,500 $42,850 $45,660State Controller’s Report $4,500 $4,000 $4,650GANN Limit Report $1,050 $875 $590Single Audit* $5,500 $7,355 $5,800 Total $48,550 $55,080 $56,780
Additional Single Audit Programs $2,500 $5,500 $5,000
*Single Audit price for the first major program with each additional major program cost listed below.Staff recommends contracting with Davis Farr LLP at a not to exceed amount of $48,550 with the option to contract with Davis Farr LLP for the subsequent two fiscal years after the currentfiscal year.
Below is the proposed timeline for the Fiscal Year 2025-2026 audit:
Date Activity
June 2026 Audit Planning Meeting I Interim Audit ProceduresOctober 12-23, 2026 Final Audit ProceduresOctober 23, 2026 Audit Exit Meeting November 16, 2026 Draft provided to the CityDecember 31, 2023 Finalization of Audit Reports GOAL ALIGNMENT: Fiscal responsibility.FISCAL IMPACTS: Audit fees will be included in the upcoming budget under accounts 10135-5010 and 13625-5010.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Noncompliance withbond covenants, grants, and government regulations.FOLLOW UP ACTION: N/A ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.ATTACHMENTS: DavisFarr Technical Proposal, RAMS Technical Proposal, LSL Technical Proposal
• DavisFarr
CERTIFIED PUBLIC ACCOuNTANTS
Prepared By:
Davis Farr LLP
1903 Wright Place I Suite 280
Carlsbad, CA 92008
Contact Person:
Shannon Ayala, CPA I Partner
Office: 760.536.5140 I Direct: 760.298.5872
Email: sayala@davisfarr. corn
PROPOSAL FOR
PROFESSIONAL AUDITING
SERVICES
Table of Contents
Section A — About Davis Farr LIP 1Section B — Qualifications and Related Experience 3Section C — Client References 4Section D — Proposed Staffing 5 Section E — ‘Alork Plan 6Section F — Implementation of New GASB Pronouncements 8Section G — Scope of V!ork 9 Section H—ProposedTimingoftheAuditforFv25/26 9
APPENDIX
ResumesPeer Review Documentation
•
... .— - iIL.
I:aisFa rr 18201 Von Karman Avenue I Suite 1100 I Irvine, CA 92612 CERTIFIED PUBLIC ACCOUNTANTS Main: 949.474.20201 Fax:949.263.5520 May 15, 2026
City of Avalon
Attn: Matthew Baker, Finance Director
P.O. Box 707
Avalon, CA 90704We are pleased to provide our proposal to perform audit services to the City of Avalon (“City”) for the fiscal year ending June 30, 2026, with optional extensions through 2028.
Our service philosophy is one of open and constant communication, a proactive approach and responsive, value-added services. As a part of our commitment, we will listen to your ideas and concerns and will bring creative solutions to you in both financial and other operational areas. We are aware that while the City has solicited numerous proposals, Davis Farr LLP would be your best choice for the following reasons which are set forth in greater detail in our proposal:
• We take a proactive leadership role in local government accounting and auditing issues. Our Partners are active members of the Government Accounting and Audit Committee of the CaICPA Society and the CSMFO Professional Standards Committee, the GFOA Special Review Committee, and other organizations. We also speak on technical topics at conferences and training events throughout California, including the recentCSMFO Annual Conference. • We currently provide audit services to a significant number of cities, special districts and other government agencies in Southern California. Our deep understanding of the issues facing California governments and special districts enables us to provide high quality audit services to the City. • We extensively utilize data mining software to evaluate anomalies in your accounting data. This helps focus our auditors’ attention on potential errors in the accounting records and transactions that could be more susceptible to fraud.
• We are committed to performing the audit services requested in the proposed time period. • We take no exceptions to the City’s standard Professional service Agreement as provided in Attachment A of the RFP.
We appreciate the opportunity to share our credentials and look forward to developing our professional relationship. Our proposal and fee schedule shall be valid and binding for 90 days following the proposal duedate. I look forward to you contacting me so that I can answer any questions which you may have. You may contact me at (760) 298-5872.
Very truly yours,
Shannon Ayala, CPA
Partner
City of Avalon I Proposal for Professional Auditing Services I
Section A — About Davis Farr LIP
Background Information — Davis Farr LLP is a full-service regional accounting firm that specializes in providing attest and advisory services to federal, state, and local governments out of our California and Washington offices. This engagement would be serviced by our Carlsbad office. Our personnel have served governmental entities for over 30 years. A breakdown of our government audit personnel by classification is provided below.License to Practice in California — Davis Farr LLP and all key personnel are licensed with the California State Board of Accountancy to practice as independent certified public accountants.
Independence — Davis Farr LLP is independent with respect to the City and its component units, as defined by U.S.
General Accounting Office’s Government Auditing Standards and Generally Accepted Auditing Standards. Neither Davis Farr LLP nor the key personnel have any potential or real conflicts of interest.
Insurance — Davis Farr LLP has sufficient insurance coverage to meet or exceed the City’s requirements and willprovide insurance certificates to the City prior to entering into a contract.
Quality Control — Davis Farr LLP and its Partners are members of the American Institute of Certified Public Accountants (AICPA) and is a member of the AICPA’s Government Audit Quality Center. Our firm is a voluntary participant in the AICPA Peer Review Program. Included in the appendix is our most recent Peer Review report where our firm received a Pass. A Pass demonstrates the highest level of quality control in a Peer Review. The Peer Review included a review of government engagements. There has been no disciplinary action taken or pending against the firm during the past three years with state regulatory bodies or professional organizations. There have been no federal or state desk reviews.
Training — Every professional of the firm participates in continuing professional education courses. Each person is required to take at least 80 hours of training over a two-year period including 24 hours a year specific to government accounting and audit topics. Courses cover a wide spectrum of professional and technical subjects, and include Fraud, Professional Ethics and Governmental Accounting and Auditing topics to help the practitioner maintain his/her professional expertise.
Federal and State Desk Reviews — Davis Farr LLP has not been subject to any Federal or State Desk reviews in the past 3 years, nor has there been any disciplinary action taken.
Classification Number of Employees
Partners 7Managers 8
Supervisors 8Seniors 15Staff 6
Administrative 4
Total personnel 48
DavisFarr
City of Avalon I Proposal for Professionsl Auditing Services I
Professional Affiliations
Government Audit Quality Center — Davis Farr LLP is a member of theGovernment Audit Quality Center (GAQC). The GAQC promotes the importanceof quality governmental audits and the value of such audits to purchasers of governmental audit services. GAQC is a voluntary membership center for CPAfirms and state audit organizations that perform governmental audits.
National Registry of CPE Sponsors — Davis Farr LLP is registered to provide continuing professional education through the National Association of State Board of Accountancy (NASBA). NASBA recognizes CPE program sponsors who provide continuing professional education programs in accordance withnationally recognized standards. We provide CPE to our clients at our annual GASB Update.CaICPA — Many of the CPAs employed by Davis Farr LLP are members of CaICPAand regularly participate in chapter meetings, education, and events. CaICPA recognized one of Davis Farr LLP’s partners with their Women to Watch award in the Experienced Leader category. Davis Farr LLP partners are also members of the Governmental Accounting and Auditing Committee of the CaICPA, and firm Partner Jonathan Foster is the current Chair of the Committee.
American Institute of CPAs — Davis Farr LLP and the firm’s Partners are members of the American Institute of CPAs (AICPA). The AICPA develops standards for audits, provides educational guidance materials to its members, and monitorsand enforces compliance with the profession’s technical and ethical standards.
CSMFO —The Partners of Davis Farr LLP are members of the California Society of Municipal Finance Officers (CSMFO), the statewide organization serving all California municipal finance professionals. Firm personnel regularly attendCSMFO Chapter Meetings and Conferences. The Partners of Davis Farr LLP are frequent presenters on accounting and auditing technical topics at Chapter Meetings and Conferences.
GFOA — The Government Finance Officers Association (GFOA) enhances and promotes the professional management of governmental financial resources byidentifying, developing, and advancing fiscal strategies, policies, and practices for the public benefit. The Partners of Davis Farr LLP are members of the Certificateof Achievement Program’s Special Review Committee. The Committee reviews Annual Comprehensive Financial Reports submitted to GFOA for the Excellence in Financial Reporting Award Program.
CPE
.I’ C) N .; () ft
V AICPA
City of Avalon I Proposal for Professional Auditing Services Section B — Qualifications and Related ExperienceDavis Farr LLP is a leader in the local government sector throughout the Southern California Area. Currently, we service approximately sixty local, state, and federal government entities. Davis Farr LLP services routinely provided to our clients include, but are not limited to:
Our government expertise includes Cities, Special Districts, and other Governmental entities. Among the government agencies that the professionals of Davis Farr LLP have served recently are the following:
• City of Aliso Viejo• City of Carlsbad
• City of Commerce• City of Coronado• City of Costa Mesa• City of Cypress• City of Delano• City of Encinitas• City of Fontana• City of Garden Grove • City of Huntington Beach• Cityoflndio• City of Indian Wells • City of Laguna Niguel
• City of Los Angeles• City of Mission Viejo• City of Newport Beach • City of Poway• City of Rancho Santa Margarita• City of Santee• City of South Gate• City of Vista• Coachella Valley Association of Gov’t• County of Placer • County of San Diego
• East Orange County Water District
• Hass Avocado Board• Irvine Ranch Water District
• Leucadia Wastewater District• Metropolitan Water District of So CA • North County Dispatch JPA• Orange County LAFCO
• Oxnard Housing Authority
• Placer County Water Agency
• Rancho California Water District
• San Diego Association of Governments• San Diego County Water Authority• San Diego LAFCO• Sweetwater Authority• Tahoe Regional Planning Agency • Tahoe Transportation District• Vallecitos Water District Services
Routinely
Provided
City of Avalon I Proposal for Professional Auditing Services I
Section C — Client ReferencesFor your convenience, we have listed below references for audit work currently being performed by Davis Farr LLP personnel for several clients throughout Southern California. For each of the references, we currently serve asindependent auditors and have served these clients for a number of years. Shannon Ayala is or has been the partner on each of these engagements.
y of Poway
113325 Civic Center Drive I Poway, CA
iehrnoush Jamshidi, Finance Manager
858.668.4426
I [email protected]
y of Vista0 Civic Center Drive I Vista, CA
City of Solana Beach
635 S. Highway 101 I Solana Beach, CARachel Jacobs, Finance Director
8.720.2463
City of Del Mar
1050 Camino Del Mar IDel Mar, CA
Monica Molina, Finance Officer
858.704.3641
[email protected]. us
Financial Statement Audit of the
City and Financing Authority and
Preparation ofState ControllerReport
Financial Statement Audit of theCity and Financing Authority andPreparation ofState Controller Report
Financial Statement Audit of theCity and Preparation of StateController Report 600
Hours
/
//
City of Coronado
11825 Strand Way I Coronado, CA Financial StatementAudit of City,I Preparation ofState Controller John Kim, Director of Admin. Svc. Report, Agreed-upon Procedures
9.522.7309 for Hotel and [email protected] / 500
Hours
Financial Statement Audit of the
latt McDonald, Assistant Finance Director City, Buena Sanitation District, _D.643.5363 Housing Compliance
N
N
N 650
Hours
N
//
350
Hours
N
//
350
Hours
City of Avalon I Proposal for Professional Auditing Services DavisFarrI
Section D — Proposed Staffing
The successful outcome of any audit requires personnel with managerial and technical skills to perform the work required. The engagement team who will serve the City have served together as a team of professionals on numerous financial audit examinations of local government entities. Key personnel include the Partner, Manager, and Supervisor. Key personnel will not be removed or replaced without the prior written concurrence of the City.
We believe that efficient administrative management and supervision of the audits is an extremely critical factor inachieving the desired results for the City. Résumés of our proposed key personnel can be found in the Appendix to this proposal. In that regard, our proposed organizational structure for providing independent auditing services is as follows:
Nick Baldelli, CPA
II QUALITY CONTRO REVIEWER A Jonathan Foster, CPA
Makaylyn Tallman LI
SPECIALIST
STAFF
AUDITOR
Diego Vanegas, CPA, CISA
City of Avalon I Proposal for Professional Auditing Services I
Section E — Work PlanDavis Farr LLP plans and conducts our engagements in the most efficient manner possible, and our audit approach is unique with regard to the following:
• Our firm is sensitive to the priorities and work requirements of our clients. We work around the schedules of our clients when scheduling segments of the audit or requesting documentation in order to minimizedisruption of the City’s staff and to complete the audit in a timely manner. • Whenever possible, we use accounting support already prepared by the City’s staff to avoid duplication or unnecessary requests for audit support schedules. Typically, we request support for balance sheet items, the year ending trial balance and cash and long-term debt confirmations. • Our firm’s expertise is in governmental auditing. Our auditors are GASB experts and skilled at addressing audit issues that are specific to local governments. You will not spend time training our personnel. • When formulating internal control recommendations, we obtain a thorough understanding of the specific circumstances at the City to provide a tailored, practical recommendation. • Throughout the year we are a resource to our clients in providing accounting advice, researching technical questions and helping with other problems as they arise.
Audit Software -We utilize CaseWare audit software for the electronic copy of the City’s workpapers. We have the ability to accept audit documentation in either hard copy or electronic format. CaseWare allows us the ability to import trial balances that can be provided in either excel or a text document. Some of the benefits of using CaseWare trial balance software are as follows:
• We create our own lead sheets (i.e., analytical review comparison schedules). This limits the amount of time finance staff spend creating audit schedules. Our software automatically generates analytical review reports by account number for ease of analyzing significant fluctuations between fiscal years. • We can provide the City with reports showing the grouping of the financial statement schedules for ease of review by City staff. These reports show each account grouped to a specific financial statement line item as well as journal entries that are posted during the audit.
Data Mining Software - We have a dedicated team of personnel trained to use special data mining software, IDEA.
Our software uses source data from your accounting system to search for anomalies, such as duplicate or voidedchecks, cross-referencing vendor addresses with employee addresses, detecting accounting transactions recordedon the weekend, and reviewing journal entry postings for unauthorized individuals. The IDEA software identifies specific transactions for the auditors to review for potential fraud or error.
Internal Control Evaluation - Our approach to evaluating internal controls involves observation and inquiry. We spend time with the personnel responsible for the accounting cycles to gain an understanding of the processes. Wealso carefully evaluate your policies and procedures. After our initial evaluation, we identify key controls in your processes and design test to evaluate the effectiveness of those processes. In the initial year of the audit, we will focus on the following accounting cycles:
• Billing and cash receipting• Capital assets• Purchase and disbursements• Payroll• Investment and cash controls• Information systems In future years, we will review the accounting cycles noted above but also look at other processes such as credit card transactions, petty cash, inventory controls, employee reimbursements, contract compliance, and other areas.Our goal is to modify our audit approach every year to further evaluate your internal controls.
City of Avalon I Proposal for Professional Auditing Services Planning During the planning phase of the audit, we plan to perform the following procedures:
and Inquiry V Meet with finance personnel to obtain an understanding of significanttransactions during the year.
V Communicate with the Council regarding fraud, compliance with laws, and any concerns they have regarding the finances of the City.
V Perform internal control evaluations as noted on the previous page.V Determine materiality levels that will be used in selecting audit transactions.
V Perform a risk assessment to develop the audit plan for the year.
V Review minutes of the Council meetings.
V Review important new contracts, bond documents, and agreements.
V Evaluate compliance with investments.V Test purchase orders and contract management.V Test a sample of cash disbursements to determine adherence to policies and internal controls.V Perform a review of the City’s information systems and controls.
V Perform compliance testing of federal grants, as necessary.V Review the prior audited financial statements and provide feedback to City staff regarding best practices for financial reporting.
V Provide a GASB Update and templates for implementing new accounting standards, if applicable.
Year-End After the books are closed and ready for audit, we will perform our year-end procedures which Testing include the following:
V We will confirm 100% of all cash and investment balances and test fair values provided by your investment custodians.
V We will test for proper cutoffs of accounts receivable and taxes receivable.
V We will test current liabilities and perform a search for unrecorded liabilities.
V We will test the balances of accrued payroll and employee-related liabilities.V We will confirm long-term debt with independent parties, when applicable.V In years of new debt issuances, we will review the journal entry to record the debt to ensure the accuracy of the accounting.
V Testing of actuarial valuations and calculations related to Pension and OPEB obligations and disclosures under GASB 68 and 75.
V Evaluation of claims and judgments payable.V Testing of restrictions and classifications of net position.V Test the reasonableness of interest income, realized, and unrealized gains/losses on investments.
V Analytically and substantively test revenues and expenses reported in the financial statements.V We will incorporate an element of unpredictability every year that will focus on an audit area that is not typically considered a high or significant risk area such as petty cash, credit card purchases,new vendors, travel expenses, etc.
The aforementioned tests are only a few of the tests performed during the examination and by no means is it meant to be all inclusive. During the final stage of the audit, we will meet with Finance staff to review our audit findings and any adjusting journal entries.
As part of the Single Audit for the years in which the City expends greater than $1,000,000, we will perform the following procedures in accordance with the Uniform Guidance:
V Perform an evaluation of the major programs required to be tested.V Review 0MB guidance and the 0MB Compliance Supplement for the major program selected.
V Evaluating internal controls for each of the applicable compliance areas for each program audited.V Using AICPA sampling guidance, we select a sample for each of the applicable compliance areas for each program audited, testing the sample for compliance.
V Testing the indirect cost rate, if applicable.
V Reviewing monitoring reports for noncompliance and follow up on the resolution of past noncompliance, if applicable.
V Issue a single audit report of federal expenditures.V File the data collection form within the specified deadline.
DavisFarr 7
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Audit Stage Procedures Performed
Single Audit
Approach
City of Avalon I Proposal for Professional Auditing Services I
AUdft:stagè
Completion The nature and extent of the work required is dependent on our assessment of the likelihood of of the Audit misstatements in the financial statements together with our conclusions from the planning and and testing stages of the audit. All of the audit information is then used to reach a conclusion on whether Preparation the financial statements taken as a whole conform with generally accepted accounting principles. of Financial V We will review significant events after year-end.
Statements V We will review attorney letters for significant legal matters.
V We will provide five levels of review on the financial statements.V We will meet with Council to present the audit results, as requested.
Procedures Performed
Section F — Implementation of New GASB Pronouncements
The City will be required to implement the following accounting standards during the upcoming fiscal years. Part of our service to you includes consulting on these new auditing standards. A sampling of significant new GASB pronouncements planned or proposed for local governments that will impact the City are listed below:
GASB 103: Financial Reporting Model The objective ofthis Statement is to improve key components ofthe financial Improvements reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability.
This Statement also addresses certain application issues. The requirements of this statement will be effective for the fiscal years beginning afterJune 15,2025.
GASB 104: Disclosure of Certain This Statement requires certain types of capital assets to be disclosed Capital Assets separately in the capital assets note disclosures required by Statement 34.
Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized inaccordance with Statement No. 96, Subscription-Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class. The requirements of this statement willbe effective for the fiscal years beginning afterJune 15, 2025.
GASB 105: Subsequent Events This Statement defines subsequent events as transactions or other events that occur after the date of the financial statements but before the date the financial statements are available to be issued. This Statement describes the date the financial statements are available to be issued as the date at which(1) the financial statements are complete in a form and format that complies with generally accepted accounting principles and (2) approvals necessaryfor issuance have been obtained. That definition modifies the subsequent events time frame throughout the GASB literature. This Statement also requires the date through which subsequent events have been evaluated tobe disclosed. The requirements of this statement will be effective for the fiscal years beginning after June 15, 2026.
City of Avalon I Proposal for Professional Auditing Services Section G — Scope of Work
Our understanding of the objectives and scope of the work to be performed is as follows:
• We will perform an audit examination of the financial statements of the City and for the fiscal years ending June 30, 2026, with optional extensions through 2028. Our examination will be conducted in accordance with generally accepted auditing standards, the AICPA Audit and Accounting Guide, Audits of State and Local Government Units, and the Government Auditing Standards issued by the Comptroller General of the United States.
• We will prepare the Annual Comprehensive Financial Statement (ACFR) and ensure that the financial statements are prepared in conformity with the most recent edition of the GAAFR, the GAAFR Update, and subsequent GASB pronouncements.
• When necessary, we will perform a compliance audit of federal expenditures in accordance with the Uniform Administrative Requirements, Cost Principles and Audit Requirementsfor FederalAwards in any year the City has federal expenditures of more than $1,000,000, including preparation of the Data Collection Form. • We will prepare the City’s Financial Transaction Report as required by the California State Controller.• We will prepare a letter to the City Council summarizing the audit results in accordance with the Codification of Auditing Standards Section 260.
• We will prepare a letter to the City Council reporting matters dealing with internal control that meet the threshold of a significant deficiency or material weakness, as defined by the Codification of Auditing Standards Section 265. We will immediately report any irregularities or illegal acts that come to our attention to management and/or those charged with governance.
• Report on Agreed-Upon Procedures in relation to the GANN Limit. • Finally, we perceive the scope of our work as being advisors to the City regarding generally accepted accounting principles, Throughout the year, the management and other finance personnel of the City will have access to us to seek advice in the application of generally accepted accounting principles, advice regarding debt issuance,financial statement preparation and content, and any other matters relating to the City. Each year, we will review upcoming accounting standards in a meeting with City staff.
Section H — Proposed Timing of the Audit for FY 25/26
The following proposed timing is subject to the City ‘s revision and approval:
June 2026 4, June 2026 G June 2026 July 2026 Audit Audit Interim Final Audit Request List Planning Audit Request ListProvided Meeting Procedures Provided I?)
1 October 12- October 23, November Finalization 23, 2026 2026 16, 2026 of Audit Final Audit Audit Exit N Draft of ACFR Reports
O Procedures 0 Meeting 0 sent to City 0 Within 5
-
-Working Days
CD CD of Receiving I— H Approval
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1 Shannon Ayala, CPA
Partner
+ DavisFarr
Ms. Ayala will serve as the Partner on this audit. She will oversee the project to ensure all required deadlines are met, provide technical assistance to the audit teams, and review the final reports before they are released. Ms. Ayala is a Certified Public Accountant with over twenty years of audit experience, spending most of that time on audits for local governments in San Diego County. Ms. Ayala has performed financial statement audits of cities and special districts; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits in accordance with Uniform Guidance, and compliance audits.
Employment History
• Davis Farr LLP — Since 2015• National CPA Firm —10 years • Lennar Homes —2 years
Education
• Bachelor of Science -Accounting (San Diego State
University)
Licenses I Registrations
• California CPA Certificate No. 88126
Professional Affiliations & Awards
• American Institute of Certified Public Accountants• California Society of Certified Public Accountants • California Society of Municipal Finance Officers
AUDITS OF GOVERNMENTAL AGENCIES
City of AvalonCity of CarlsbadCity of CoronadoCity of Del Mar City of PowayCity of Solana Beach
City of Vista
Borrego Springs Water District
Coachella Valley Assoc. of GovernmentsCoachella Valley Conservation Commission County of San Diego
Desert Community Energy
IHSS of Mann County
Julian Community Services District
LAFCO ImperialLAFCO Mann
V LAFCO San Diego
V LAFCO Santa BarbaraV LAFCO Santa CruzV LA IMPACT
V Majestic Pines Community Services DistrictV North County Dispatch JPA V Otay Water District
V Ramona Municipal Water DistrictV Rancho California WaterV Rincon Water DistrictV San Diego County Water V Santa Fe Irrigation DistrictV Santa Rosa Regional Resource AuthorityV The Centre for Organization EffectivenessV Valley Center Municipal Water V Vista Irrigation District
VVVV
VV
VVVV
VVVV
V
V
Jonathan Foster, CPA
Partner
+ DavisFarr
Jonathan Foster will serve as the Quality Control Reviewer on this engagement. Mr. Foster is a Certified Public Accountant and has 19 years of audit experience with governmentagencies. The types of audits Mr. Foster is involved in includes financial audits of cities andspecial districts and Single Audits in accordance with the Uniform Guidance. Mr. Foster is thecurrent Chair of the CaICPA Governmental Audit and Accounting Committee and regularly presents at the annual conference for the California Society of Municipal Finance Officers. In addition, Mr. Foster is an instructor for Accounting for Capital Assets for CSMFO.
Employment History
• Davis Farr LLP — Since 2015• National CPA Firm —8 years Education
• Bachelor of Accountancy (University of San Diego)
Licenses I Registrations
• California CPA Certificate No. 117853Professional Affiliations & Awards• American Institute of Certified Public Accountants• California Society of Certified Public Accountants• Cal CPA Government Audit & Accounting Committee• California Society of Municipal Finance Officers
AUDITS OF CITIES
City of Ava Ion
City of Commerce
City of CarlsbadCity of Costa MesaCity of Dana PointCity of Delano V Big Bear Area Regional Wastewater
V Big Bear Community Facilities DistrictV Cucamonga Valley Water DistrictV Orange County Water District V City of Fontana
V City of Huntington BeachV City of Indian WellsV City of Laguna NiguelV City of Rancho Santa MargaritaV City of Santee V San Diego Association of GovernmentsV Santiago Aqueduct CommissionV Saticoy Sanitary DistrictV Soquel Creek Water District VVV
VVV
AUDITS OF SPECIAL DISTRICTS
Diego F. Vanegas, CPA, CISA
Partner
+ DavisFarr
Mr. Diego Vanegas, CPA, CISA, CITP, is a Partner with the Firm and has 20+ years of progressive governmental audit experience. He will serve as the IT Specialist on theengagement. Throughout his career Mr. Vanegas has performed a multitude of financial and compliance audits, internal control audits and assessments, operational and performance audits, agreed-upon procedures engagements, cost proposalanalysis/price reviews and System and Organization Controls (SOC) examinations for various governmental agencies and commercial entities. Further, Mr. Vanegas has Information Technology (IT) expertise and has completed IT projects for various entities. These engagements have often combined both financial and compliance aspects of the audit with IT components.
Employment History
Davis Farr LLP — Since 2015MHM PC 2006—2015
Conrad and Associates 2005 — 2006
Education
• Bachelor of Science — Business Administration in
Accounting (California State University, Los Angeles)
• Bachelor of Science Computer Information
Systems (California State University, Los Angeles)
Licenses I Registrations
• California CPA Certificate No.113040
• Certified Information System
Auditor Certificate No. 15121835
Professional Affiliations & Awards
• American Institute of Certified
Public Accountants
• ISACA
IT SPECIALIST ON AUDITS OF GOVERNMENTAL AGENCIES
City of CarlsbadCity of Coronado
City of Del MarCity of EncinitasCity of Huntington BeachCity of Indian WellsCity of Newport BeachCity of Rancho Santa MargaritaCity of TustinCity of Vista V Placer County Water AgencyV Orange County Water DistrictV Otay Water DistrictV Ramona Water DistrictV Rancho California Water District V San Diego County Water AuthorityV San Diego Association of GovernmentsV Santa Fe Irrigation DistrictV Valley Center Municipal Water DistrictV Yucaipa Water District ••
VV
V
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VVVVV
V
Nicholas R. Baldelli, CPA
Senior Manager
+ DavisFarr
Mr. Baldelli has over 13 years of experience both auditing local governments and workingin advanced accounting and financial reporting as a municipal government employee.Most of his audit background is in non-profits, counties, and municipal government engagements. The types of audits Mr. Baldelli has been involved in are financial audits of non-profits, municipalities, counties, and other governmental organizations; agreed uponprocedures; and Single Audits in accordance with Uniform Guidance.
Employment History
• Davis Farr LLP — Since 2023• City of Gilbert, Arizona —3 years • Local Public Accounting Firm (NC & AZ) —7 years
Education
• Bachelor of Science in Accounting & Financial Reporting (University of North Carolina, Asheville)
Licenses / Registrations
• Arizona CPA Certificate No. 19531• North Carolina CPA Certificate No. 39577 Professional Affiliations & Awards
• American Institute of Certified Public Accountants• Arizona Society of Certified Public Accountant• Kyrene School District Budget Committee Member
AUDITS OF GOVERNMENT AGENCIES
V City of Newport Beach, CA
V City of Huntington Beach, CA
V City of Garden Grove, CA
V West Orange County Water Board, CAV City of Tustin, CA V City of Aliso Viejo, CAV Serrano Water District, CAV City of Mission Viejo, CA V Cucamonga Valley Water District, CA
V City of Aliso Viejo, CAV March Joint Powers Authority, CAV Visit Greater Palm Springs, CA V City of Casa Grande, AZ
V Town of Chino Valley, AZ
V Bullhead City, AZ
V City of Kingman, AZV City of Prescott, AZV City of Brevard, NCV Buncombe County, NCV Yancey County, NCV Polk County, NC V Rutherford County, NC
V Haywood County, NCV Asheville Regional Airport Authority, NC
INTERNAL MUNICIPAL GOVERNMENT
Mr. Baldelli supervised multiple areas in the Finance Department for Gilbert, AZ including:
Accounts Payable — $330M in annual spend, revamped controls and processes, implemented new banking contract services.
Capital Assets — $3.1B in assets, established internal controls and corrected a significant control deficiency.Grant Reporting and Compliance — Created and implemented grant assessment and subrecipient monitoring tools for compliance with complex federal awards.
Cash Receipts, Revenue and Receivables — $400M in annual receipts, implemented timely billing controls Preparation oftheACFR—Alongwith several otherannual external financial reports.Mr. Baldelli created financial reporting tools to implement both GASB Statement No. 87 & 96; developed and implemented Town policies for travel expenditures and Town recoupment.
Makaylyn Tailman
Supervisor
+ DavisFarr
Ms. Tallman will serve as the in-charge on this engagement. She will be the main point of contact for the staff. She will be responsible for performing the work and supervising staff.
Ms. Tailman has over three years of audit experience, spending the majority of that time on audits for non-profits, and federal and local government engagements. The types of audits Ms. Tallman has been involved in include: financial audits of non-profits, cities and special districts; grant specific audits of funds awarded by Federal, state, and county governments; Single Audits in accordance with 0MB Circular A-133; and Federalcompliance audits. • Davis Farr LLP: July 2018-present
Education
• Bachelor of Science in Accounting
University of Nevada, Reno
AUDITS OF LOCAL & FEDERAL GOVERNMENTS
V City of Avalon
V City of Dana PointV City of Del Mar
V City of Encinitas
V City of PowayV City of Santee
V Eastern Municipal Water District
V Imperial County LAFCOV Mann LAFC0V Otay Water DistrictV Placer County Water Agency V Rancho California Water DistrictV Salton Sea Authority V City of Solana Beach
V City of VistaV Centers for Medicare and Medicaid Services V Coachella Valley Association of GovernmentsV County of San Diego V San Diego Association of Governments
V San Diego County Water Authority
V San Diego Geographic Information Source
V San Dieguito River Park Valley JPAV Santa Rosa Regional Resources Authority V Tahoe Regional Planning AgencyV Tahoe-Truckee Sanitation Agency
AUDITS OF NON-PROFITS & OTHER
V Balboa Art Conservation Center
V Family YMCA of the Desert
V San Diego Children’s Discovery Museum
V CGS-SOCV Palmetto-SOC
EmDloyment History
AUDITS OF SPECIAL DISTRICTS
Report on the Firm’s System of Quality Control
To the Partners of
DAVIS FARR LLP
and the Peer Review Committee of the California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Davis Farr LLP (the firm) in effect for the year ended May 31, 2025. Our peer review was conducted in accordance with the Standardsfor Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a system review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported on in conformity with applicableprofessional standards, if any, are evaluated by a peer reviewer to determine a peer review rating.
Firm’s Responsibility
The firm is responsible for designing and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable professionalstandards in all material respects. The firm is also responsible for evaluating actions to promptly rernediate engagements deemed as not performed or reported on in conformity with the requirements of applicable professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer’s Responsibility
Our responsibility is to express an opinion on the design of and compliance with the firm’s system of qualitycontrol based on our review.
Required Selections and Considerations
Engagements selected for review i nd uded engagements performed under Government Auditing Standards.including compliance audits under the Single Audit Act and examination of a service organization (SOC I engagement).
CPAs . Advisors
9 4120 Concours, Suite 100, Ontario, CA 91764
909.948.9990 / 800.644.0696 / FAX 909.948.9633
I [email protected] Member ..Crowe Global
@ www.gylcpa.com
Peer Review Report
As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, ifapplicable, in determining the nature and extent of our procedures.Opinion In our opinion, the system of quality control for the accounting and auditing practice of Davis Farr LLP in effect for the year ended May 3 1, 2025, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all materialrespects. Firms can receive a rating ofpass, pass with deficiency(iesj orfail. Davis Fair LLP has received a peerreview rating ofpass. 1Y1 LIP
Ontario, California
September 19, 2025
—‘6’
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A
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CITY OF AVALON
PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
FOR THE FISCAL YEARS ENDING JUNE 30, 2026 THROUGH 2028
CONTACT PERSONS:SCOTT MANNO, CPA, [email protected] DURAN, CPA, [email protected]
PREPARED BY
ROGERS ANDERSON MALODY & SCOTT, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, CA 92408
LICENSE #2596
FEIN 95-2662063
MAY 15, 2026
909.889.0871
City of Avalon
Proposal for Professional Auditing Services
Table of Contents
Page
Transmittal letterTechnical Proposal
License to practice in California 1Independence 1
Firm Qualifications and Experience 1
Range ofservices
Current municipal clientsGovernment Audit Quality Center Housing Authority and Successor Agency experience
Single Audit experience
ACFR preparation
Engagement quality control
Working paper retention
Equal opportunity employerExternal quality control reviewDisciplinary action Partner and supervisory staff involvement 5
Staff continuity
Continuing professional education
Assigned personnel
Engagement team resumes
Similar engagements with other government entities 12
References
Specific audit approach 14
Engagement approach
Audit approach and proposed audit segmentation
Level ofstaff and approximate number of hours assigned to each segment Sample sizes (including for compliance testing)
Intelligent audit technology
Analytical proceduresAuditing in a remote environment
Standard Client-Prepared Audit SchedulesIdentification of potential audit problems Scope of work 21
Services to be provided
Proposed audit timingProposed cost
Exhibit A: Listing of current municipal clientsExhibit B: Standard Client-Prepared Audit Schedules (PBC List) ri
AICPA II
GAQC Member
CERTIFIED PUBLIC ACCOUNTANTS
May 15, 2026
City of Avalon
410 Avalon Canyon Road
P.O. Box 707
Avalon, CA 90704We are pleased to respond, on behalf of Rogers, Anderson, Malody & Scott, LLP (RAMS), to your requestfor a proposal regarding professional auditing services. As a recognized industry leader and innovator forthe past 78 years, our goal has been to provide honest, high-quality, and objective results to all our clients, including governmental organizations such as yours. This dedication has fueled our firm’s tremendous organic growth while ensuring personalized, client-focused services, with some governmental clients being with us for over 25 years.
At RAMS, we are committed to achieving the highest quality audit in the most effective manner possible.We understand the complexities of performing governmental audits, which is why we have a dedicatedteam of auditors with specialized knowledge and experience to ensure our audits are planned and executed efficiently and effectively, providing you with the highest quality services.
Our proposal is presented in a clear and concise manner and is fully aligned with the requirements of therequest for proposal. We have focused on providing relevant, meaningful information that directly addresses your needs. We believe our firm’s experience, highly qualified staff, and strong reputation in governmental auditing demonstrate our capabilities, without relying on excessive detail or unnecessary graphics often found in other proposals.We understand that the City of Avalon (the City) will review other proposals during this process, but we believe that RAMS is the exceptional choice for your audit for the following reasons:
Reputation: We have an established reputation in the governmental and not-for-profit accounting and auditing community for providing excellent, timely service with high-quality reporting.
Advanced Tools: We utilize Teammate Analytics, a suite of over 200 Computer Aided Audit Tools (CAATs), empowering our audit teams to perform powerful data analysis that enhances our substantive audit procedures and helps identify transactions or amounts indicative of potential fraud.
Risk-Based Approach: Our intelligent, risk-based audit (using CAAT) allows us to focus on key audit areas, increasing efficiency and resulting in a higher quality audit at a reasonable fee.
Experience: We currently provide auditing services to over 70 governmental agencies and not-forprofit organizations, including over 30 cities with enterprise activities and over 35 special districts.
Remote Capabilities: We have developed a comprehensive remote working environment for our audits. All our staff are equipped to work remotely effectively and efficiently, ensuring a quality audit.Commitment to Deadlines: We are committed to meeting all reporting/auditing deadlines, resolvingany issues encountered during your audit, and providing you with quality audit services.
Minimizing Stress: We understand the audit process can be stressful for you and your staff. We strive to make the audit process as trouble-free as possible by comprehensively planning and utilizing our staff and audit technologies efficiently and effectively while minimizing disruptions andmiscommunications.Personable Team: Our audit team members are personable and easy to work with, yet focused on the audit. Through open and responsive communication, we aim to minimize operational distractions foryour staff while maximizing quality service.
Tel. 909-889-0871 I www.ramscpa.net I 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408 Quality Control: We have an extensive internal quality control review process to ensure your financial reports meet the highest standards. Each report is prepared by the engagement team, reviewed by the engagement manager, and thoroughly examined by two partners and at least one professional proofreader.
Award-Winning Assistance: We have assisted many clients with the preparation of their Annual Comprehensive Financial Reports. All our clients who submitted reports for the GFOA award havereceived them. Our participation as a GFOA reviewer also indirectly benefits our clients in the qualityreview process.
Value for Investment: Our fee estimate provides a fair and reasonable investment, commensurate with the level of service provided and the experience of the audit team members. While we may not be the lowest bidder, our focus is on delivering the best value and high-quality services, pricing ourengagements accordingly.
Although we are a smaller, local firm, we bring the depth of experience, structure, and resources expectedfrom a much larger organization. Our clients benefit from direct partner involvement, responsive service, and continuity of staff, while still receiving a disciplined audit approach, strong quality control standards,and the technical expertise necessary to perform complex governmental audits. This allows us to provide the personal attention of a small firm with the professionalism, capability, and audit quality typically associated with a larger firm.
Rogers, Anderson, Malody & Scott, LLP is properly licensed to practice in California, including all theprofessional staff assigned to this engagement. Mr. Manno, Partner, and Mrs. Gardenya Duran, Partner, are authorized to represent the firm, submit the bid, and sign a contract with the City. They can be reachedat 735 E Carnegie Drive, Suite 100, San Bernardino, CA 92408 or 909.889.0871. We understand the work to be done as listed in the section of this proposal titled “Services to be Provided and we are committedto meeting any agreed-upon time frames.Thank you for the opportunity to present our proposal to the City. We are committed to exceeding your expectations of an auditor and believe this proposal provides you with comprehensive information aboutour firm, service team members, and our customized audit approach. We look forward to establishing a long and mutually beneficial relationship with the City. Please feel free to contact us if you have any questions regarding this proposal.
Respectfully yours,
ROGERS, ANDERSON, MALODY& SCOTT, LLP
Scott Manno, CPA, CGMA
Partner
-ii- i;iii AICPA IhICI
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
License to practice in California
Rogers, Anderson, Malody & Scott, LLP is licensed to practice in the State of California. Our key professional staff, which includes the partners, managers, and supervisors, are all certified public accountants licensed to practice in the State of California and follow all applicable Board of Accountancy standards.
Independence
Rogers, Anderson, Malody & Scott, LLP is independent of the City and any component units, as definedby general standard number two of the generally accepted auditing standards, and by the second general standard for government auditing in the U.S. Government Accountability Office’s Government Auditing Standards.
Firm qualifications and experience
We were established in 1948, located at 735 E. Carnegie Drive, Suite 100, San Bernardino, California.
As a comprehensive accounting firm, we offer a full spectrum of services. With over 78 years of public practice experience, we are one of the oldest, most trusted, and respected CPA firms in SouthernCalifornia, specializing in auditing, accounting, and management advisory services for governmental agencies and not-for-profit organizations. Annually, we dedicate over sixteen thousand hours to ouraudit practice, encompassing cities, redevelopment successor agencies, water districts, other special districts, not-for-profit corporations, and joint power authorities. Our focus on government accountingand auditing is a primary commitment, ensuring we deliver top-quality services to local governments.
We recognize the importance of engaging auditors with a deep understanding of the complex and everevolving accounting and compliance issues that governments face today. Our firm boasts a rich history in governmental accounting and auditing, equipping us with invaluable experience, in-depth knowledge, and the technical expertise necessary to conduct high-quality governmental audits. This expertiseenables us to provide exceptional service and effective solutions at competitive fees, reflecting ourvalue to clients. Furthermore, our active participation in various industry associations ensures we stayupdated on the latest issues in governmental accounting, auditing, and operations. We promptly share any valuable insights with our clients to enhance their benefit.
Our firm has a total of 60 people, which includes sixteen certified public accountants. The staff consists of six partners, six managers, fifteen supervisors/senior accountants, twenty-seven staff accountants, and six support staff. The audit staff consists of thirty-six members who devote over 80% of their timeto municipal engagements. The engagement team assigned to the City’s engagement will consist of the following full-time staff: one audit partner, one audit manager, one audit supervisor/senior, and twoto three staff auditors.
Range of services
In addition to auditing services for governmental entities, our firm offers a wide range of other services, including:
• SB 341 compliance (Successor Agencies)• Internal control agreed-upon procedures• Finance director and accounting support services • Studies and evaluations of financial condition and fiscal policies• Development and review of accounting policies and procedures• Cash management studies • Assistance with financing and public bond offerings
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‘ i;wi AICPA II
C,AQC Member
City of Ava Ion
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
Additionally, we provide accounting, auditing, attest, and consulting services to both for-profit and notfor-profit entities. Our services also include tax preparation and consulting for individuals, corporations, and partnerships. We offer complimentary tax consultation services to our municipal audit clients.
Housing Authority and Successor Agency experience
Over the past five fiscal years, the firm has audited the Housing Authorities and Successor Agencies for the following entities:
City of South Pasadena City of Poway City of San Bernardino City of Thousand Oaks City of Claremont City of La VerneCity of San Marcos City of West Covina City of San JacintoCity of Moorpark Town of Yucca Valley City of Twentynine PalmsCity of Fillmore City of Hawthorne City of La MesaCity of Sierra Madre City of El Cajon City of Rosemead Current Municipal Clients
A listing of our current municipal clients can be found at the end of this proposal as Attachment A.
Single audit experience
Many of our municipal clients, as well as other governmental and not-for-profit clients, require audits in accordance with Uniform Guidance. Recently, we have conducted single audits for numerous entities.Our specialized Single Audits Team is led by Partners and Managers who hold Intermediate and Advanced Single Audit Certifications from the AICPA, ensuring a successful and thorough engagement.
ACFR preparation
We have extensive experience in preparing Annual Comprehensive Financial Reports (ACFR). For thefiscal years ending June 30, 2023, and 2024, our team prepared over 20 ACFRs, with each entity receiving the Certificate of Achievement for Excellence in Financial Reporting from the GFOA. For the fiscal year ending June 30, 2025, we prepared over 25 ACFR5 for our clients for submission to the GFOA. Additionally, we have assisted many cities and special districts in developing their first-yearreports for submission. Four of our audit partners and five of our managers/supervisory staff serve as technical reviewers for the GFOA award program. We ensure all ACFRs comply with the GFOA certificate program checklist and address any prior year comments to guarantee thorough andcompliant reports.
Governmental Audit Quality Center
As a member of the American Institute of CPAs Governmental Audit Quality Center (GAQC), we at RAMS are dedicated to maintaining the highest quality standards. Our commitment to the GAQC membership requirements includes designating a partner responsible for the quality of our governmental audit practice, establishing rigorous quality control programs, conducting annual internal inspections, and publicly sharing our peer review report findings. Our goal is to continually enhance ourquality initiatives to provide the highest quality audit services possible.
Being a part of the GAQC also grants us access to comprehensive resources that further improve the quality of your audit. Our membership ensures we receive timely information on technical, legislative,and regulatory matters, which we apply to your audit to ensure compliance with current standards and regulatory changes, benefiting our clients.
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‘AICPA
GAQC Mmher
City of Ava Ion
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
Engagement quality control
Our internal quality control review process ensures your audit meets the highest standards. Financialreports prepared by a senior member of the engagement team undergo multiple levels of review: firstby the engagement manager/supervisor, followed by the engagement partner, and finally a technicalreview by the engagement Quality Control partner. Additionally, all reports are proofread by at least one professional staff member. All audit workpapers are reviewed by the in-charge auditor and the partner in charge of the engagement.
The quality of service you receive hinges on the capabilities of the individuals assigned to your engagement and how effectively these personnel resources are organized. Our professionals are highly trained, knowledgeable, and have a deep understanding of the environment in which governmental and not-for-profit entities operate. This expertise is crucial for providing the City with an effective andefficient audit.
Our engagement team brings significant experience and a practical understanding of governmental accounting and auditing, combined with a broad business perspective. Each member has access to a wide range of technical resources and knowledge bases, enabling them to offer practical observations and effective solutions to the City.
Working paper retention
Rogers, Anderson, Malody & Scott, LLP will retain all workpapers and reports related to the audit for aminimum of seven (7) years, unless we are notified by the City of Avalon to extend that period.
Equal Opportunity Employer
Our firm is an equal opportunity employer committed to providing employment opportunities to all qualified individuals, regardless of race, color, sex, religion, national origin, or disability. Our diversestaff represents a wide range of cultures and ethnic backgrounds. We offer advancement opportunitiesbased on ability, skill, and desire to progress within the firm.
Subcontracting Arrangements
Rogers, Anderson, Malody & Scott, LLP intends to utilize a subcontractor for a limited portion of the engagement. Specifically, Forvis Mazars, LLP will assist with the preparation and submission of theannual Financial Transaction Report for the City of Avalon to the State Controller’s Office.
Forvis Mazars, LLP has extensive experience in preparing State Controller reports for California cities.Rogers, Anderson, Malody & Scott, LLP will retain full responsibility for the audit engagement, including oversight of the subcontracted services, review of all deliverables, and issuance of all final reports. Noother portions of the engagement will be subcontracted.
No additional subcontracting is anticipated, and no subcontracting will occur without the prior written consent of the City, in accordance with the Request for Proposals. -3-
v 1W1 AICPA IIr_I
C,AQC Member
City of Ava Ion
Proposal for Professional Auditing Services
Firm qualifications and experience (continued)
External quality control review
As a member of the AICPA Private
Companies Practice Section, our
firm has actively participated in the
“Peer Review” program since
1993. Every three years, an
independent firm of certified public
accountants conducts an externalreview of our firm. Thisparticipation ensures that our engagements, firm policies, andaudit procedures consistently meet the standards set by the AICPA,
the Yellow Book, and the California
State Board of Accountancy.Notably, throughout ourparticipation in this program, our firm has consistently received pass
ratings from the peer reviewers.
During each peer review, anindependent firm assesses ourpolicies and procedures andinspects a representative sample of engagement workpapers and
reports, including those related to
governmental entities andengagements subject to theUniform Guidance. For the year ended November 30, 2023, our
firm received a pass rating. This
rating indicates that our auditingpractices are suitably designed and complied with, providing
reasonable assurance ofperforming and reporting inOur firm has a spotless record with no disciplinary actions taken or pending against it by state regulatorybodies or professional organizations. Additionally, there has never been any pending or settled litigation, nor any civil or criminal investigations. We are also not aware of any federal or state deskreviews or field reviews of our audits in the last three years.
Our firm has no record ofsubstandard work.
In addition to external quality control reviews, our firm conducts annual in-house monitoring procedures that mirror the external peer review processes, ensuring ongoing compliance and quality in our audit and attest engagements.
AICPA
GAQC Mrnher
-4-
Grant Bennett Associates
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accordance with applicable standards. The results affirm that our custom audit approach and procedures are technically sound and compliant with all relevant standards.
Disciplinary action
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience Our partners and supervisory staff are actively and continuously involved in all aspects of theirengagements. We believe that their involvement is a key aspect of the overall audit process. Thisincludes being on-site for interim and year-end fieldwork, ensuring a proper, efficient, and effective audit with minimal disruption to your staff. The time spent on-site by partners and supervisory staff allows them to understand the City’s accounting processes and procedures thoroughly. This understanding helps in evaluating and developing opportunities for efficiency and offering practical advice to improve your accounting processes and procedures.
All professionals on this engagement have extensive experience with audits similar to the City’s, eliminating the need for the City to train our team.
Staff continuity
Maintaining continuity of audit staff is a principal concern for our firm. To retain our staff, we offer competitive wages, advancement opportunities, generous medical packages, a retirement plan, bonus opportunities, and educational benefits. While we strive for continuity, we acknowledge that staffchanges may occur. We plan to provide consistent staff year to year, which is in the best interest of both the City and our firm. Continuity ensures an orderly, efficient, and less disruptive audit experience.
In case of staff changes, principal supervisory and management staff, including engagement partners, managers, other supervisory staff, and specialists, may be replaced if they leave the firm or arepromoted. However, the City reserves the right to accept or reject replacements.Due to the significant involvement of our partners in all engagements, any staff transition would have aminimal impact on audit efficiency and effectiveness in subsequent years. Other audit personnel maybe changed at the discretion of the City provided that the replacements have substantially the same or better qualifications/experience.
Continuing Professional Education
Our auditor specialists stay current in this technical practice area by adhering to, and typically exceeding, the continuing professional education requirements of Government Auditing Standards and the State Board of Accountancy guidelines. All professionals at our firm participate in continuing professional education (CPE) programs sponsored by various organizations, including the GovernmentFinance Officers Association, the American Institute of Certified Public Accountants, the CaliforniaState Society of Certified Public Accountants, the California Society of Municipal Finance Officers, and the Association of Government Accountants. These programs ensure our clients are serviced by the best-trained and most proficient government auditors and accountants available. We also provide inhouse training conducted by our partners and senior staff using published resources. All staff are required to attend fraud and ethics training. Our goal is to provide professional staff with continuing education that exceeds the minimum standard of 80 hours over two years.
According to our firm’s Quality Control document and Government Auditing Standards (GAS), all staffworking on audits subject to GAS must complete CPE in line with GAS standards, requiring 24 hours directly related to governmental accounting and auditing.To further increase our technical knowledge, we utilize resources such as the Governmental Audit Quality Center Annual Webcast Update, other relevant seminars, and monthly publications from the AICPA, the GFOA, and other sources. We also attend conferences and seminars sponsored by the GFOA, California Society of Municipal Finance Officers, California State Society of Certified Public Accountants, and the California Special Districts Association. 4 -5- v AICPA IhI
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Assigned personnel
Our goal is to provide you with capable, competent, and personable individuals who possess an extensive background in governmental accounting and auditing and general business practices. Thisallows us to offer practical solutions and technical support, keeping you at the forefront of governmentalaccounting and helping you navigate complex issues.Our engagement team has the managerial and supervisory experience to provide the City with a comprehensive audit of the highest quality while focusing on personal service. The resumes of the keyengagement personnel assigned to the audit are presented below. These individuals will be assigned to the engagement for the entire contract period.
Scott W. Manno, CPA, CGMA — Partner, Engagement Partner Scott will serve as the Engagement Partner for your municipal audit. He is licensed to practice as a certified public accountant in the State of California and has over 30 years of practical,governmental accounting and auditing experience. As the engagement partner, Scott will be responsible for the overall quality of the engagement, ensuring it is performed efficiently and effectively. He will directly oversee all engagement staff, assist in planning and performing the engagement, and review all workpapers and required reports prepared during the engagement.Scott, like all our partners, is a working partner and will be actively involved in all aspects of theengagement, ensuring a high standard of service and attention to detail throughout the process.
Gardenya Duran, CPA, COMA — Partner, Quality Control Reviewer Gardenya will be the Concurring Partner for the engagement. She is licensed to practice as a certified public accountant in the State of California and brings over 15 years of public accountingexperience, specializing in serving local governments. As the concurring partner Gardenya will work directly with Scott in planning and performing the engagement. In addition, she will providetechnical consultation for the engagement team.
Veronica Hernandez, CPA — Audit Manager
Veronica is an Audit Manager with the firm. She is licensed to practice as a certified public accountant in the State of California. Veronica has over 9 years’ experience in providing accountingand auditing services for municipalities, special districts and various not-for-profit organizations. As an audit manager, she will work directly with the audit in-charge and partner, while supervising the engagement team during all phases of the engagement. In conjunction with the audit in-charge,she will also oversee the preparation of any required reports.
Isela Briseno — Audit SeniorIsela is an Audit Senior with our firm, bringing five years of experience in providing accounting and auditing services to municipalities, special districts, and various not-for-profit organizations. As an Audit Senior, Isela will work closely with the engagement partner and manager. She will be responsible for planning the audit, supervising the staff assigned to the engagement, and reviewingall workpapers prepared for the engagement. Additionally, she will oversee the preparation of anyrequired reports, ensuring thoroughness and compliance with all standards. -6-
AICPA
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Mr. Teriy Shea, CPA — Consultant
Terry is a retired municipal audit partner with the firm providing consulting services. He is licensed to practice as a certified public accountant in the State of California. Terry has over 40 years of public accounting experience and has provided accounting, auditing, and consulting services formunicipalities, special districts, water agencies, and various not-for-profit organizations. Terry will assist on an as needed basis with the engagement. In addition, he will provide technicalconsultation for the engagement team.
Staff level accountants
All our staff accountants working on governmental audits are highly qualified to perform these audits. Prior to the audit season, our staff undergoes rigorous training that covers all aspects of ouraudit process and programs, ensuring they have a solid foundation before starting fieldwork. Eachstaff member is encouraged to take on increased responsibilities in engagements they have previously worked on, enabling them to grow and continually enhance their skills and knowledge.
In summary, we emphasize the credentials of the professionals who will be directly responsible for the quality of service you will receive. Additionally, our audit team possesses an important, albeit intangible,attribute: the professionals assigned to your audits have previously worked together as a multi-disciplined team. This ensures a smooth, efficient, and effective audit process. We are committed to allocating the necessary resources to ensure continuity of personnel throughout our relationship with the City. -7-
AICPA
C,AQC Member
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Engagement team resumes
Scott W. Manno, CPA, CGMA
Engagement Partner
Professional experience
Mr. Manno began his career with Thomas, Bigbie and Smith in 1996 after serving in the United States Army. He spent six years with the firm primarily working on audits of municipalities, special districts and redevelopment agencies as well as various not-forprofit organizations. He joined Rogers, Anderson, Malody & Scott, LLP in July 2001.
Currently, Mr. Manno serves as a technical reviewer for the GFOA ACFR Award program and he is also on the GFOA Special Review Executive Committee. In addition, he is part of the California State Society of Certified Public Accountants Governmental Accounting which meets periodically to discuss current events, pronouncements, etc.
Bachelor of Science, Business Administration — California State University, San Bernardino Certified Public Accountant — State of CaliforniaChartered Global Management Accountant — American Institute of Certified Public AccountantsRelated professional experiencePartial listing of relevant governmental agencies served (*includes enterprise fund accounting):
City of El Cajon* Town of Yucca Valley City of La Mesa* City of SanteeCity of Sierra Madre* City of Santa Paula* City of Eastvale City of 29 PalmsCity of Moreno Valley* City of Beaumont* City of San Marcos* City of Loma Linda*City of Live Oak* City of Perris* City of Exeter* City of Woodlake*City of San Jacinto* City of Menifee City of Rolling Hills Est. City of Ojai* Mr. Manno has completed over 183 hours of continuing professional education courses over the past three years of which the following select courses are relevant to this engagement:
• State and Local Government Audit Planning Considerations• Audits of State and Local Governments• 2025 Government Accounting and Auditing Update• Auditing Internal Controls for Governments Professional affiliations
Mr. Manno is a member of the following organizations:
• American Institute of Certified Public Accountants (AICPA)• California Society of Certified Public Accountants (CaICPA) • Association of Government Accountants (AGA)
• Association of Certified Fraud Examiners (ACFE)• Government Finance Officers Association (GFOA)• California Special Districts Association (CSDA) • California Society of Municipal Finance Officers (CSMFO) -8-
‘ AICPA
GAQC Member
Education/licenses
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Gardenya Duran, CPA, CGMA
Quality Control Partner
Professional experience
Mrs. Duran joined Rogers, Anderson, Malody & Scott, LLP in 2010. She works primarily on audits of governmental agencies, small to mid-sized businesses, and nonprofitorganizations. Mrs. Duran has served as a technical reviewer for the GFOA ACER Award program. Mrs. Duran specializes in advisory services gearing towards helping local governments restore their finance departments and compliance after staffing disruptions for governments, municipalities and various non-profit organizations Prior to joining our firm, she was an Information Systems Technician in the U.S. Navy for nine years.
Bachelor of Science, Business Administration — California State University, San Bernardino Certified Public Accountant — State of CaliforniaChartered Global Management Accountant — American Institute of Certified Public Accountants Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):
City of Hawthorne*City of Poway*
City of Canyon LakeCity of La Mesa*
City of El Cajon*
City of San Jacinto*
City of San Marcos*City of Thousand Oaks*
City of Aliso ViejoCity of San BernardinoCity of Redondo Beach*City of Claremont* City of CapitolaCity of Goleta
City of West Covina*
City of Chula Vista*
Continuing professional education
Mrs. Duran has completed over 145 hours of continuing professional education of which the following select courses are relevant to this engagement:
courses in the past three years
• GASB Update -Recently issued Pronouncements• Fundamental of Preparing an Annual Comprehensive Financial Report• Single Audit Update• Audits of State and Local Governments Professional affiliations
Mrs. Duran is a member of the following professional organizations:
• American Institute of Certified Public Accountants (AICPA) • California Society of Certified Public Accountants (CaICPA)• Government Finance Officers Association (GFOA)• California Society of Municipal Finance Officers (CSMFO) ‘AICPA
GAQC Member
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Education/licenses
City of Avalon
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Veronica Hernandez, CPA
Audit Manager
\ Professional experience
Ms. Hernandez is an audit manager with the firm. She has over 9 years’ experience in providing accounting and auditing services for municipalities, special districts and various nonprofit organizations. As an audit manager, she will work closely with the engagement partner and manager and be responsible for planning the audit, supervising the staff assigned to the engagement, and performing reviews of all workpapers prepared for the engagement. In addition, she will also be responsible for the preparation of any required reports. Currently, Ms. Hernandez serves as a technical reviewer for the GFOA ACFR Award Program
Bachelor of Arts, Business Administration — California State University, San Bernardino Certified Public Accountant — State of CaliforniaRelated professional experience Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):
City of Santa Paula*City of San Marcos*City of El Cajon*City of Aliso ViejoCity of Claremont* City of SanteeCity of La Verne*
City of West Covina*
City of Moorpark*City of Hawthorne
City of Beau mont*City of Loma Linda*
City of Redondo Beach*City of San Jacinto*
City of Poway*
City of Moreno Valley*
City of Fillmore*
Town of Yucca Valley
City of La Mesa*
Continuing professional education
Ms. Hernandez has completed over 116 hours of continuing professional education years of which the following select courses are relevant to this engagement:
courses over the past two
• GASB Update — Recently Issued Pronouncements• Reporting in a Single Audit• GASB 100, 101, and 102• 2024 Fraud Review Professional affiliations
Ms. Hernandez is a member of the following professional organizations:
• American Institute of Certified Public Accountants (AICPA)• California Society of Certified Public Accountants (CaICPA)• California Society of Municipal Finance Officers (CSMFO) AICPA
GAQC Member
-10- I1r
Education
City of Ava Ion
Proposal for Professional Auditing Services
Partner, supervisory and staff qualifications and experience (continued) Isela Briseno
Audit Senior
Professional experience
Ms. Briseno joined Rogers, Anderson, Malady & Scott, LLP in 2021, primarily providing accounting and auditing services for municipalities, special districts, and various nonprofit organizations. As an audit senior, she will work closely with the engagement partner and manager and be responsible for planning the audit, supervising the staff assigned to the engagement, and performing reviews of all workpapers prepared for the engagement. In addition, she will also be responsible for the preparation of any required reports.
Bachelor of Arts, Business Administration — California State University, San Bernardino Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):
City of Thousand Oaks* City of Loma LindaCity of San Bernardino City of Santee Leucadia WastewaterDistrict
Town of Yucca Valley Idyllwild Water District
City of Perris* Mojave Water Agency
Rosamond Community City of Chula Vista
Services District
Continuing professional education
Ms. Briseno has completed the following select courses that are relevant to this engagement:
• GAAP, GAAS, SSARS, & Other Accounting Issues• Overview of the 2024 Yellow Book• Overview of the 2024 Uniform Guidance Professional affiliations
Ms. Briseno is a member of the following professional organizations:
• California Society of Certified Public Accountants (CaICPA)• California Society of Municipal Finance Officers (CSMFO) AICPA
GAQC Mrnher
—11— Ir
Education
City of Twentynine
Palms
City of Ava Ion
Proposal for Professional Auditing Services
Similar Engagements with Other Government Entities
Our firm has provided similar services to various public section agencies over the past three years. Belowis a listing of those most similar to the City of Avalon.
Entity: City of Moreno Valley
Scope of vork: Financial Audit/ACFR*/Successor Agency
Date: Years ending June 30, 2020 -presentEngagement partner: Mrs. Brianna Schultz Total hours: Approximately 430 hours each year
Ms. Patty Yhuit, Deputy Finance Director, (951) 413-3000 Contact person: pattyymol.org Entity: City of Hanford
Scope of vork: Financial Audit/ACFR*
Date: Years ending June 30, 2023 - presentEngagement partner: Mr. Scott Manno Total hours: Approximately 350 hours each year
Contact person: Mr. Chris Tavarez, City Manager, (559) 585-2000, ctarezhanford.city Entity: City of Industry
Scope of vork: Financial Audit/ACFR*/Successor Agency
Date: Years ending June 30, 2023 - presentEngagement partner: Mr. Scott Manno Total hours: Approximately 330 hours each year
Ms. Mila Milioie’Aci, Financial Analyst III, 626-33-2211 Contact person: M Milioievcicityofindustry.org Entity: City of Santa Paula
Scope of vbork: Financial Audit/ACER
Date: Years ending June 30, 2021 - presentEngagement partner Mrs. Gardenya Duran Total hours: Approximately 300 hours each year
Ms. Christy Ramirez, Finance Director, (805) 933-4211, ext.204 Contact person: [email protected] Entity: City of Loma Linda
Scope of work: Financial Audit/RDA/Successor Agency
Date: Years ending June 30, 2013 - presentEngagement partner Mrs. Brianna Schultz Total hours: Approximately 225 hours each year
Ms. Sonia Eabela, Finance Director/Treasurer, (909) 799-2840 Contact person: sfabela@lomalinda-ca. gov *GFOA award recipients
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AICPA
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Similar Engagements with Other Government Entities (continued) References
Our firm has proudly partnered with a wide range of government entities over the past three years, including cities, successor agencies, special districts, and Federal Single Audit engagements. Thebreadth of our client base reflects our deep expertise in public sector auditing and our ability to deliver high-quality, reliable service tailored to each organization’s unique needs.
Because of the large number of government clients we have served, providing a complete listing for this proposal would not be practical. However, we are pleased to provide detailed client references forfive current clients, including contact information, the nature of services performed, and years of service, when such information is explicitly necessary for evaluation. This ensures that the requesting agency receives the most relevant examples of our experience. If a full client list is determined to beabsolutely necessary, we can provide it upon request.
Entity: City of Rolling Hills Estates
Scope of wj,k: Financial Audit/ACER
Date: Years ending June 30, 2019 - presentEngagement partner: Mr. Scott Manno Total hours: Approximately 250 hours each year
Mr. Mike Whitehead, Admin. SerMces Director, (310) 377-1577, ext.112 Contact person: [email protected] Entity: City of Menifee
Scope of work: Financial Audit/ACFR*
Date: Years ending June 30, 2014 -presentEngagement partner: Mr. Scott Manno Total hours: Approximately 275 hours each year
Contact person: Ms. Wendy Preece, Deputy Finance Director, (951) 672-6777 Entity: City of Goleta
Scope of w3rk: Financial Audit/ACER */single Audit/Successor Agency Date: Years ending June 30, 2023 -presentEngagement partner: Mr. Scott Manno Total hours: Approximately 300 hours each year
Tony Gonzalez, Accounting Manager. (805) 961-7500, Contact person: tgonzalezcityofgoleta. org Entity: Town of Yucca Valley
Scope of vork: Financial Audit/ACFR*/Successor Agency
Date. Years ending June 30, 2008 -present
Engagement partner: Mr. Scott Manno/Mr. Brad Welebir
Total hours: Approximately 350 hours each year
Contact person: Mr. Curtis Yakimow, Town Manager (760) 369-7207 Entity: City of Sierra Madre
Scope of vork: Financial Audit/CAFR*)Successor Agency
Date: Years ending June 30, 2012 -presentEngagement partner: Mr. Scott Manno/Mr. Brad Welebir Total hours: Approximately 300 hours each year
Mrs. Hillary Guirola-Leon, Finance Director, (626) 355-7135, ext. 301 Contact person: . . hguirola-leoncityoierramadre.com -13-
A IC PA
GAQC Member
City of Ava Ion
Proposal for Professional Auditing Services
Specific audit approach
Engagement approach
Our engagement approach for your audit is meticulously designed to ensure measurable progress and successful outcomes. This involves setting clear goals and maintaining frequent communicationbetween the engagement partner, lead auditor, and the team. Our approach leverages our extensiveknowledge and expertise in governmental accounting and auditing to identify and address key audit and accounting risks specific to the government sector. Each year’s audit includes a complete reassessment of the control environment, enabling us to respond to any changes in risk assessment effectively.
Key components of our engagement approach
Knowledge and Experience: With over 77 years of auditing governmental entities of all sizes, we possess in-depth knowledge of the governmental environment. This enables us to perform efficientand effective audits, conduct detailed risk assessments, and identify significant audit risk areas within the City’s control environment.
Intelligent Design: Utilizing advanced audit software and data analytic tools (Engagement and Teammate Analytics), we can analyze large volumes of data quickly, enhancing both the efficiencyand effectiveness of our audits.
Professional Oversight: Our partners, managers, and supervisors have extensive experience in governmental audits, allowing us to design and execute audit strategies that are both effective and efficient.
Timeliness: Meeting deadlines is a professional commitment for us. We ensure that all required and agreed-upon deadlines are met.
Open Communication: Maintaining open lines of communication with all parties involved, including City management and staff, helps eliminate surprises and ensures a smooth auditprocess.
Availability: Our engagement team members are available year-round for any questions or additional consultation. City staff will have direct access to the partner, manager, and supervisorystaff during and after the engagement.
Cost-Effectiveness: Our customized audit approach and experienced auditors help reduce overallaudit costs while delivering effective audits and high-quality reports.
Risk-Based Approach: We perform detailed risk assessment procedures to understand the City and its environment, including internal controls. This forms the basis for our assessment of risks of material misstatement at the financial statement and relevant assertion levels. We may perform further audit procedures concurrently with risk assessment as necessary. ‘AICPA
-14-
GAQC Member
City of Ava Ion
Proposal for Professional Auditing Services
Specific audit approach (continued)
As stated in our proposal, our primary objective is to conduct an audit of the financial statements in accordance with required auditing standards and to express an opinion on those statements. Our engagement approach also offers several value-added benefits at no additional cost:
Efficiency and Minimal Disruption: Our audits are designed to be efficient and effective, minimizing disruption to office operations.
Practical Observations and Recommendations: We provide practical observations and recommendations on internal control issues, accounting standards implementation, and relatedpolicies and procedures.
Operating Efficiency Opportunities: We identify opportunities for operating efficiencies that can help reduce the City’s operating costs.
By employing this comprehensive engagement approach, we ensure that the City’s audit is conducted with the highest standards of quality and professionalism.
Audit approach and proposed audit segmentation
The following is a summary of the audit team’s approach for your engagement. The audit will be divided into the following segments:
Segment 1 - Interim Testing: Planning, Pre-Audit Administration, and Internal Control Testing Objectives: During this phase, our principal objectives will be to gather information about the City and its environment, including its internal controls over financial reporting.
Approach:
• Initial Meetings:
o Meet with the City’s staff to determine convenient dates to begin our audit and to discuss the assistance to be provided by the City’s staff.
• Engagement Team Brainstorming:
o Hold brainstorming sessions with engagement team members to discuss the susceptibility of the City’s financial statements to material misstatement and fraud. • Review and Evaluation:
o Review and evaluate the City’s accounting and reporting processes by examining the prior year’s audit workpapers, City-prepared documents such as budgets, in-house financial reports, previously issued ACFR, organizational charts, manuals, programs, policies and procedures manuals, and minutes of governance meetings.
o Perform analytical procedures to enhance our understanding of the City and identify areas that may need further assessment and additional testing.
• Regulatory Review:
o Review and retain copies of any pertinent local, state, and federal statutes, regulations, or charters that apply to the City.
o Obtain a full population of potential compliance areas to perform testing and select a random or stratified sample, utilizing our data analytic software, to ensure a true representation of theappropriate compliance requirements are being selected. -15-
AICPA 1h111.11
C,AQC M,mher
City of Avalon
Proposal for Professional Auditing Services
Specific audit approach (continued)
• Internal Control Evaluation:
o Obtain a thorough understanding of the City’s internal controls over financial reporting and compliance by documenting key internal control components, utilizing questionnaires, walkthroughs, inquiries, and observation.
o Evaluate the design of controls relevant to the audit and test controls, if control risk is to be assessed below maximum, by selecting a sample of transactions and reviewing supportingdocumentation. • Management Communication:
o Document and review any findings noted during the testing of internal controls with management.
o Provide a preliminary management letter with recommendations for improving any weaknesses in operations and suggestions for enhancing the efficiency of the City’s operations. • Audit Data Analytics:
o Utilize powerful audit data analytic software to analyze large amounts of data quickly and focus on areas/transactions that are red flagged.
IT General Controls:
• Security Access Controls:
o Evaluate general system security settings, password parameters, processes for adding, deleting, and changing security access, access capabilities of various user types, accesscontrols to networks and financial applications, data file access controls, and physical access to networks and servers.
• Computer Operations:
o Evaluate backup and recovery processes and review procedures for identifying and handling operational problems.
• System Development and Changes:
o Evaluate processes related to system development and system changes, if applicable. • Application Testing:
o Determine the necessity of testing application controls based on professional judgment during the planning stages of the engagement.
Audit Team: This phase will be performed by the audit senior and two to three staff accountants, underthe direct supervision of the audit manager and partner.
This comprehensive approach ensures a thorough understanding of the City’s financial environmentand internal controls, setting a solid foundation for the audit. -16-
‘ AICPA
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Specific audit approach (continued)
Segment 2 - Year-End Testing: Substantive Testing
Objectives: During this phase, our primary objectives will be to assess the risk of material misstatementat the financial statement level and specific assertions, design overall responses to assessed risks and further audit procedures, perform substantive tests, and complete the audit while evaluating auditfindings, if applicable.
Approach:
• Risk Assessment and Audit Plan Development:
o Identify significant risks and develop a detailed audit plan using the results from Segment 1. • Design and Perform Substantive Tests:
o Design substantive tests of account balances tailored to the City’s operations and assessed level of risk. Substantive procedures will include testing material balance sheet accounts,material revenue and expenditure/expense accounts, along with various analytical procedures as necessary.
o Confirm various accounts with outside parties (e.g., cash, investments). • Risk Evaluation:
o Determine whether our testing supports the initially assessed level of risk at both the financial statement level and the assertion level.
• Audit Adjustments:
o If any proposed audit adjustments are noted, we will discuss and explain them in detail with the appropriate level of management before posting.
Audit Team: This phase will be performed by the senior accountant and two to three staff accountants, under the direct supervision of the audit manager and partner.
Segment 3 -Reporting: Report Preparation and Audit Conclusion (Workpaper Review) Objectives: During this phase, our principal objectives will be to evaluate whether the financialstatements, as a whole, are free from material misstatement, form an opinion(s), and issue our report.
Approach:
• Material Misstatement Evaluation:
o Determine, based on our substantive testing and other procedures, whether the financial statements, as a whole, are free of material misstatement. This will provide the basis for ouropinion(s). • Workpaper Review:
o Review all audit workpapers to ensure the audit was performed in accordance with required standards (GS, GAGAS, etc.) and prepare drafts of all required reports by the agreed-upondates. • Quality Control Review:
o Conduct an independent review of the financial statement draft by the engagement’s quality control partner and issue all reports by the agreed-upon dates.
Audit Team: This phase will be performed by the audit senior and one staff accountant, under the direct supervision of the audit manager and partner. Additionally, the engagement’s quality control partner will perform a detailed quality control review of the financial statements. -17-
‘ AICPA
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Specific audit approach (continued)
Customization and Communication: The procedures listed above are general. After our initial reviewof the City and our detailed risk assessment, we will customize the engagement to address the specifics of the City and the audit itself. We will determine which procedures to perform based on our riskassessment. All our audits are customized to each entity, ensuring a complete, effective, and efficientaudit. Our approach is founded on open communication, a strong knowledge of the City’s operations,and detailed planning at the initial stages of the audit.
Timeliness and Resource Allocation: Our firm is dedicated to performing a timely audit engagement.
Prior to the start of the audit, we will meet with City staff to agree on adequate timeframes for the performance of the audit and the release of the financial statements. We will allocate the necessaryresources to meet these agreed-upon timeframes.
Level of staff and approximate number of hours assigned to each segment Segment Partner Manager Senior Staff Total
Segment ISegment 2
Segment3 _________ _________ _________ _________ _________ Totals* ________ 20 31 71 183 305 = excludes Single Audit hours and Annual Financial Transaction Report ho urs 48 8
12 18
28 69
91 99
139
8 11 25 23 67
Sample sizes (including for compliance testing)
Our sample sizes will be determined in accordance with the AICPA’s Audit and Accounting Guide, Audit Sampling, and will be selected using professional judgment or our TeamMate Analytics software, depending upon circumstance, as permitted by Statement on Auditing Standards. Our methods aredesigned to provide the most audit coverage without expending excess time. Our sample sizes willdepend upon our preliminary assessment of control risk, our planned substantive testing and analytical procedures as well as our professional judgement.
We utilize our Computer Aided Audit Tools (CAAT) software, Teammate Analytics, to draw our audit samples. The software allows us to generate random samples, systematic samples, stratified samples, attributes samples as well as monetary unit samples (also called probability-proportional-to-size ordollar unit sampling).
Intelligent audit technology
Our audits leverage advanced technology through powerful software tools such as Engagement and Teammate Analytics. Additionally, all audit team members are connected wirelessly, enabling real-time information sharing. The benefits of our audit technologies include:
• Teammate Analytics: This suite of over 200 dynamic Computer Aided Audit Tools (CAATs) allows us to analyze large amounts of data in seconds. Using data directly from the City, we can search for duplicate checks, detect transactions during unusual hours or on holidays/weekends, perform Benford’s Law analysis, and identify instances where a vendor has issued multiple invoices with sequential references, among many other tests. This empowers our audit teams to performpowerful and meaningful data analysis, enhancing our value-added services. -18-
AICPA
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Specific audit approach (continued)
• customized Analytical Schedules: We create our own analytical schedules to easily compare current balances to prior year balances and current vs. budget balances, significantly reducing the time required from City staff.
• Real-Time Financial Statement Analysis: Once your trial balances and financial statements are entered into our software, we can review your financial statements in the field, allowing us to noticeand address any variances immediately. • Linked Financial Statement Schedules: We link financial statement schedules directly to our audit software trial balances, enabling us to provide the City with fund financial statements almost immediately after importing the trial balances.
• Audited Trial Balances: We provide the City with audited trial balances that show the coding of the financial statement schedules, making it easier for City staff to review. These reports include each account coded to a specific financial statement line item/function and journal entries posted during the audit.
Analytical Procedures
To effectively utilize analytical procedures, industry background and knowledge are essential. With ourfirm’s extensive experience and qualified staff, we possess the necessary knowledge to apply analytical procedures efficiently throughout our audit of the City. • Interim Phase:
o Compare current and prior year unadjusted balances to identify areas requiring additional analysis.
o Compare current year actual amounts to the City’s annual budget (both original and adopted). • Final Phase:
o Perform procedures similar to those in the interim phase. o Compare certain financial ratios for current and prior years.o Conduct reasonableness tests. o Investigate any significant variances further through inquiry and additional substantive testing until resolved to our satisfaction.
• Post-Fieldwork:
o Compare current and prior year audited balances, considering expected relationships based on our knowledge of the City, similar entities, and the general economic environment. o Utilize additional analytical techniques such as trend analysis as needed.
Unlike other audit firms, we use analytical procedures to supplement, not supplant, oursubstantive testing, ensuring a thorough and comprehensive audit.
Auditing in a remote environment
The evolution of technology has revolutionized the accounting and auditing profession, enabling us to provide high-quality services remotely with efficiency, precision, and timeliness. During the COVID-19pandemic, our firm adapted quickly to a fully remote audit environment and developed processes thathave since become integral to our standard approach. These advancements not only enhanced the quality of our audits but also resulted in significant efficiencies for both our team and our clients. -19-
AICPA IãI
C,AQC Member
City of Ava Ion
Proposal for Professional Auditing Services
Specific audit approach (continued)
Remote Audit Approach• Technology Utilization:
o We use secure cloud-based platforms for document sharing and management, such as Engagement Organizer, ensuring client data remains safe and accessible. o Video conferencing tools (e.g., Zoom, Microsoft Teams) facilitate real-time communication with City staff, enabling collaborative discussions and efficient issue resolution. • Workflow and Communication:
o Regular Communication: We maintain routine contact with clients throughout all phases of the audit via email, phone calls, and video meetings.
o Responsiveness: Our team prides itself on quick turnaround times for questions or issues, making remote collaboration as seamless as on-site interactions. • Flexibility for On-Site Presence:
o While we anticipate performing the majority of our work remotely, we understand that some aspects of the audit may benefit from an on-site presence. If desired, we will work with the City to determine an acceptable staffing level for in-person activities, balancing health, safety, and operational needs.
Benefits of Remote Auditing• Efficiency Gains:
o Remote auditing reduces the need for travel time, allowing both auditor and auditee to focus on the tasks at hand, resulting in faster turnaround on requests and issue resolution. o Immediate access to digital documents and records eliminates delays associated with physical transfers of information.
• Enhanced Quality of Life:
o By minimizing travel, our staff can dedicate more time to client work and professional development, improving overall morale and productivity. • Environmental Impact:
o Reducing unnecessary travel decreases traffic congestion, lowers fuel consumption, and contributes to improved air quality in Southern California. • Year-Round Availability:
o Our remote-first approach fosters an ongoing partnership, encouraging clients to reach out throughout the year for guidance on matters that could impact the audit or their financial reporting.
Standard client-prepared audit schedules
A listing of standard client-prepared audit schedules anticipated to be provided by City staff during the audit can be found at the end of this proposal as Attachment B.
Identification of potential audit problems
One potential problem could be the implementation of any future GASBS. With our deep understandingof governmental accounting and auditing, constant training, and broad resources, we do not anticipate any issues during a GASB implementation. Our approach to any GASB statement implementation would be as follows: gain a thorough understanding of the pronouncement; determine applicability to the City; if applicable, discuss the statement and how it will affect the City with City staff; and provide guidance to City staff on the accounting and financial reporting implications. -20-
AICPA
C,AQC Member
City of Avalon
Proposal for Professional Auditing Services
Scope of Work
Services to be provided
The City desires the auditor to express opinions on the fair presentation of the financial statements for the following: the City of Avalon, in accordance with generally accepted accounting principles.
In addition, we shall:
• Prepare the financial statements (ACFR), in accordance with General Accepted Accounting Principles, with management’s direct oversight and approval. • Apply certain limited procedures related to Management’s Discussion and Analysis and Required Supplementary Information and provide an in-relation-to” report on the combining and individual fund financial statements and supporting schedules, if applicable. • Provide opinions as to compliance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (0MB Uniform Guidance). RAMS is to provide an “in-relation-to” report on the Schedule of Expenditures of Federal Awards based on the auditing procedures applied during the audit of the financial statements. • Test compliance with Article XIIIB pertaining to the City’s appropriation limit and prepare an Agreed-Upon Procedures report to the City Council regarding compliance. • Prepare and filing of the Annual Financial Transactions Report to the State Controller of California for the City of Avalon.
• As needed services, if requested by the City throughout the engagement.
Our audit(s) will be in accordance with:
• Generally Accepted Auditing Standards as promulgated by the American Institute of Certified Public Accountants, including requirements found in the most recent AICPA audit guide Auditsof State and Local Governments. • Government Auditing Standards issued by the Comptroller of the United States of America.• Single Audit Act of 1984, as amended in 1996. • Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (0MB Uniform Guidance).
• Any other applicable standards for other items outlined in the Scope of Work to be performed and/or reports to be issued.
Reports to be issued:
• A report on the fair presentation of the financial statements in conformity with GAAP.• A report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards (material weaknesses or significant deficiencies). • We will issue reports to those charged with governance (SAS 114 letters) as required by auditing standards.
• Prepare Management Letter that includes significant and less significant (i.e., reportable and non-reportable) recommendations for improvements to internal control. • A report in compliance with requirements applicable to each major federal program and internal control over compliance in accordance with the Uniform Guidance, if applicable. • Appropriations (GANN) Limit Agree-Upon Procedures Report RAMS will also perform the following:
• Communicate to the governing body, as required by the auditing standards for the engagement performed.
• Make an immediate, written notification of all irregularities and illegal acts or indication of illegal acts of which we become aware to the following: City Council, City Manager, City Attorney and Finance Director.
-21-
.AICPA II
GAQC Member
City of Avalon
Proposal for Professional Auditing Services
Scope of Work(continued)
Proposed audit timing
Audit planning
• Auditor
transition:
Meet with
prior auditor
to review
workpapers.
• Entrance
conference
to meet with
management
for pre-audit
planning.
• Preliminary
riskassessmentprocedures.
L June!JuIy
• Obtain an understanding of
systems, internal controls,
and current-year issues.
• Assess and evaluate design
and implementation of keyinternal controls (including
IT related).
a Perform tests of internal
controls as needed.
• Identify control deficiencies• Perform detailed risk
assessment procedures.
• Draft internal control
comment letter.
• Develop detailed audit plan — provide management with a detailed listing of items
needed to perform the audit,including the timing of when items are needed.
. Perform substantive audit
fieldwork, includingsubstantive analytical
procedures.
Consider whether audit
evidence is sufficient to
form an opinion.
a Conduct exit conference
with management to
discuss proposed entries,
internal control issues, etc.
Determine whether,
based on our substantive
testing and other
procedures, the financial
statements, taken as a
whole, are free of
material misstatement.
Review all workpapers.Evaluate financial
statements and note
disclosures.
• Perform final analytical
procedures.
Draft required reports.Issue final required
reports by or before
agreed upon date of
December 4’ of each
year, provided that all
previous milestones havebeen achieved.
• Present to governing
body as needed.
Proposed cost
See separate cost proposal.
AICPA
GAQC Mernh€r
-22- IIr
.4
review
Anticipated timing of each segment
October/November I November/December
•
••
Current municipal clients Exhibit
A
Municipalities
City of Ajiso ViejoCity of BeaumontCity of BrawleyCity of Calabasas City of CalimesaCity of CarpinteriaCity of Chula VistaCity of ClaremontCity of EastvaleCity of El Cajon City of ExeterCity of Fountain ValleyCity of GoletaCity of HanfordCity of HawthorneCity of Imperial BeachCity of Industry City of La MesaCity of La VerneCity of LawndaleCity of Live OakCity of Loma Linda City of Los AJamitos
City of Men ifeeCity of Fvssion ViejoCity of Moorpark
City of fvbreno ValleyCity of MurrietaCity of OjaiCity of PerrisCity of Rolling Hills EstatesCity of San BernardinoCity of San Dimas City of San Jac intoCity of San Marcos
City of Santa PaulaCity of Santee
City of Sierra Madre
City of Signal Hill
City of South PasadenaCity of Thousand OaksCity of Twentynine Palms City of WildomarCity of Wood lake
City of Yorba Linda
Town of WindsorTown of Yucca Valley
City of Canyon LakeCity of YucaipaCity of Grand Terrace Special Districts
Beaumont Cherry Valley Water DistrictBedford-Coldwater Groundwater Sustainability AuthorityBig Bear Area Regional Wastewater Agency Special Districts (continued)Capistrano Bay Community Services DistrictChino Basin Desalter AuthorityConejo Recreation and Park DistrictConsolidated Fire Agencies Crestline Sanitation DistrictCrestline Village Water DistrictCrestline-Lake Arrowhead Water Agency East Valley Water District
Elsinore Valley Municipal Water DistrictElsinore Valley Municipal Water District -WESAElsinore Valley Municipal Water District FAFillmore-Piru Groundwater Sustainability AgencyForesthili Public Utility District Heartlands Communications Fac AuthHeartlands Fire Training Authority ldyllwild Water DistrictInland Valley Development Agency Las Virgenes Municipal Water DistrictLeucadia Wastewater DistrictMarch Joint Powers AuthorityMission Springs Water DistrictMojave Water AgencyMontalvo Community Services DistrictMound Basin Groundwater Sustainability Agency Mountain Communities Fire Safe CouncilMountains Recreation and Conservation AuthorityNipomo Community Services DistrictNorth County Dispatch Joint Powers AuthorityPalos Verdes Peninsula Transit AuthorityPine Cove Water DistrictPomona Valley Transportation AuthorityResource Con. Dist. of the Santa Monica MountainsRim of the World Park & Rec. DistrictRiverside County Citrus Pest Control District No. 2Riverside County Citrus Pest Control District No. 3 Rosamond Community Services DistrictRossmoor Community Services DistrictRubidoux Community Services DistrictRunning Springs Water District San Bernardino County Special Districts
San Bernardino International Airport Authority
San Bernardino Valley Municipal Water DistrictSan Bernardino Valley Water Conservation DistrictSan Joaquin Regional Rail CommissionSan Luis Rey Municipal Water DistrictSouthern California Coastal Water Research Powers AuthoritySuccessor Agency to the County of SB RDA Thousand Oaks Alliance for the ArtsTriunfo Water & Sanitation District Upper San Gabriel Valley Municipal Water District
Valley of Enchantment Municipal Water Company
Valley Water CompanyVentura County Public Financing AuthorityWest Basin Municipal Water DistrictYucca Valley Airport District Sample client-prepared list Exhibit B
0J8%JTID QJB\1TN1V1EO])XX Otyof)0(
SEC11ON NAME REQUEST ITEMGeneral Information Trial balance in Excel as of the last day of the period.
Detailed general Ledger for the period (preferably in Excel).
Copies of all Board of Director meeting minutes from inception to presentDetail of related party transactions for the period.Detail of legal expenses by attorney and copies of all legal invoices for the period.Detail of intercompany reenues and expenses for the pehod.
Permanent File Any new partnership agreements or amendments.
Any new employment agreements.
Employee Benefit Plan document and amendments, if any.
Operating and/or Capital Lease agreements Proide any new, amended or extended agreements.
Any other corporate agreements that may be pertinent, such as employee handbook.
Organization Chart/Employee Listing.
Number of full time-equhelent employees at end of period.
Any new debt agreements, moditlcations or renewals (including those made after the end of the period).
General Original budget in excel for import purposes.
Pnor year GFOA comments
List of banking relationships with associated account numbers and contact information, including any accounts thatmay hae been closed during the year.List of attorneys used during FY 20)0K and contact information.Please proide responses to our Pre-audit questionnaire, if not already proaded Confirmations ProsAde updated list of contacts including email addresses for the following agencies: Cash with fiscal agent accounts and all loan receiables loan accounts.
IT Provide an updated IT systems understanding, see attached for item proeded in the prior year.
Proede Process Manager Listing report for the fiscal year.
Narratives Updates to the attached process narraties.Disbursements Disbursements check register (including checks and wire transfers) from 7/11)0K to date so that we can pick our sample for testing in excel.
Detail listing of all wires made in fiscal year.
Cash Receipts Proade most recent completed cash receipt transaction with supports receipts and related reportsBillings Utility rate schedules for FY 20)0K Billing calendar for FY 20)0K
Credit Cards Credit card user list
Listing of all credit card user actity for the fiscal year for each monthUpdated credit card policy. if any Payroll Most recent employee listing showing employee name, title and department.
Payroll calendar for FY 20)0K
Salary schedule for FY 20)0K
lnestments Quarterly/monthly inestment reports for FY 20)0K Copy of annually adopted inestment policy
Treasurer’s Reports from July 1 of the year under audit through the most current month.
Contracts Complete list of actkw contracts initiated in FY 20)0 with the following information: Vendor, Date Contract Initiated, Total Contract Amount, Date Contract Expires in excel
Common Controls Please proede Bank reconciliations and bank statements for the following months Month )0 Month )0K Month )0 Month )0(
Joumal Entries Journal Entry listing for perlod of 7/1/20)0K to present date.
Related Parties Most recent Forms 700 filed by City Council Members, City Manager, City Attorney, & Finance Director and members of management
List of any known related party transactions
Budget Excel list of budget amendments and supporting documentation for appropriate approral Copy of the signed resolution adopting the FY 20)0K budget for the City.
Sample client-prepared list Exhibit B
Cash List of all bank accounts as of the last day of the period, including any closed accounts dunng the period.
Bank reconciliations and supporting listings of reconciling items as of the last day of the period for all bank accounts.
Bank statements as of the last day of the period and the last day of the first month after the penod for all bank accounts
Pooled cash reconciliation, if applicable
lnestments Reconciliation of inestment income/actiuty for the year Interest allocation schedule for all four quarters
GASB 40/72 reports for financial statement disclosures
Accounts Receirable A/R aging as of last day of the penod by customer and detailed by inoice.
Detail of all write-offs and credit memos for the first 60 days after the end of the period.Notes receieble agreements and roll forward schedule, if applicable Receipts register for the first three months following the yearend date Due to/from and AcKanSchedule of due to/froms that are not related to negatie cash balances Rollforward schedule of athancesNew adwnce agreements, if applicable Other Current Assets Copy of prepaid insurance policy in effect on the last day of the period.
Detail of deposits and other prepaid expense accounts on the last day of the penod lnentory Copies of count sheets as of the fiscal yearend inentory count Reconciliation of irr.entory balances to the general ledger Capital Assets Fixed asset detail as of the last day of the period and depreciation schedule through same date.
Roilfoiward of fixed assets by category (additions, disposals, ending balance as of the last day of the period).Reconciliation of fixed assets to GL expense accounts for goemmental actiities for the GASB 34 con’ersionFor any disposals in the current year, proode support for approwls and for any cash receiwd for the sale/disposal of the assets
Accounts Payable A/P aging as of the last day of the penod by endor and detailed by inoice, if possible, reconciled to the general ledgerListing of all cash disbursements (checks/wires/credit card purchases) for the first three months after the end of thepenod.
All credit card statements as of the last day of the period and subsequent payment of balance, if paid.
Accrued Liabilities Payroll register applicable to first pay date in the first month of the period.
Vacation policy, if not in the employment handbook requested aboe.
PTO Accrual Analysis as of the last day of the period.GASB 101 analysis Deposits Payable Roll forward schedule or reconciliation of deposit acti\Aty for the fiscal year Other Liabilities Supporting schedules for any other material liability balances Unearned Rewnues Supporting schedule identifying unearned balances as of the fiscal yearend.Unawilable Reenues Supporting schedule of unawilable reenues acti’ity for the current year.Debt Debt Roilforward or GL actfuty for the period ended.
Bank Co’enant Compliance Certificate.
Pension myCaIPERS reports in the attached instructions
Valuation reports for the most recent period
Allocation support for balances across the anous funds
OPEB Most recent valuation report for the current year
ProAde the census data used to base the most current reluation Allocation support for balances across the whous funds
Leases Rollforward schedule of lease acti’Aty for the year Copies of any new leases entered into, including modifications made to existing leases SBITA Roliforward schedule of SBITA acti’ity for the year Copies of any new subscriptions entered into, including modifications made to existing subscriptions Equity Equity rollfoiward as of last day of the period.Income Statement Lead schedules for major tax reenues collected YTD Payroll Summary Report.
Form W-3 for the current year
Transfers Schedule of interfund transfers for the current year, including identification of the purpose for the transfer • a •••• PREPARED BY
I •• • LSL,LLPL_.) • Certified Public Accountants License Number 2584
TECHNICAL PROPOSAL
City of Avalon
RFP - Professional Auditing Services
Date of Submission: May 22, 2026
Valid for 120 Days
Authorized by:
Christian Townes, CPA, [email protected] Technology DriveSuite 350 Irvine, CA 92618
Office: (949) 829—8299
Direct: (714) 988-4852
City of Avalon
RFP -Professional Auditing Services
2. Table of Contents
2. TABLE OF CONTENTS I3. TRANSMITTAL LETTER 2
Authorized Representative 3
4. DETAILED PROPOSAL
4 I. License to Practice in California 4
2. Independence 4
3. Firm Qualifications and Experience 4
History
& Size
4 LSL’s Government Team Resources
4 Location 5
Government Auditing Standards 6Current List of Municipal Clients 6GFOA Award Program 6 Single Audit Experience 6
Peer Review 7Desk Review I Disciplinary Action 10
4. Partner, Supervisory, and Staff Qualifications and Experience 10 Organizational Chart of Principal Staff 10
Engagement Team Resumes 11
Additional Resources 12
5. Similar Engagements with Other Government Entities 13 Most Significant 13
Client References 15
6. Specific Audit Approach 16
Project Management Methodology 16
Quality Management System 17
Project Schedule 17Proposed Work Plan 19
A) Proposed Segmentation 19
B) Level of Staff Assigned and Number of Hours to be Assigned 20 C) Audit Sampling 21
D) Type And Extent of Analytical Procedures 21E) Electronic Data Processing Software & Al Technology 21
F) LSL’s Approach to Understanding the City’s Internal Control Structure 22 G) Determining Laws and Regulations Subject to Audit Test Work 23 H) Drawing Audit Samples for Compliance 23
7. Anticipation Of Potential Audit Problems, Roles
& Responsibilities of the City 23
GASB Implementation 24
LSL HIGHLIGHTS: AWARDS
& VALUES 24
TRAINING SERVICES
& LSL SEMINARS 25
APPENDIX
A
— CURRENT LIST OF MUNICIPAL CLIENTS 26
APPENDIX
B
— ENGAGEMENT TEAM RESUMES 28
City of Avalon
RFP -Professional Auditing Seniices
3. Transmittal Letter
May 22, 2026
City of Avalon
Attn: Matthew Baker, Finance Director
P.O. Box 707
Avalon, CA 90704
Dear Mr. Baker and Evaluation Committee,LSL, LLP (“LSL”) is pleased to present our proposal for Professional Auditing Services, and we value the opportunity to demonstrate our professional qualifications and commitment to excellence to the City of Avalon (“City”).This proposal details our understanding of the scope of work outlined in the City’s REP and showcases our firm’s experience, knowledge, and creative problem-solving capabilities in governmental auditing.
We understand that the City of Avalon is seeking a qualified firm to audit its financial statementsfor the fiscal year ending June 30, 2026, with the option of auditing its financial statements for each of the two (2) subsequent fiscal years, extending through 2028. This includes expressingan opinion on the fairness of the City’s financial statements, a Single Audit, as needed, agreedupon procedures pertaining to the City’s GANN Limit (Appropriations Limit), and the preparation of the Annual State Controller’s Financial Transaction Report.
At LSL, our Government Services team isn’t just another department — it’s the backbone of our firm. With a robust team of 60+ audit and consulting professionals, we bring decades of experience and highly specialized industry knowledge dedicated to serving state and localgovernments across the United States. Our expertise has shaped efficient procedures andstreamlined work plans that deliver results. With unequaled government experience, we are confident that LSL is the best-qualified accounting firm for the City.
Our government assurance team specializes in high-quality governmental audits aligned withGAAS and current GASB pronouncements. We prioritize accuracy and thoroughness while ensuring timely report delivery. Our commitment to effective collaboration and transparency with the City safeguards the integrity of its financial reporting and compliance with all regulatory requirements.
City of A va/on
RFP -Professional Auditing Services
AUTHORIZED REPRESENTATIVE
Christian Townes is the designated Engagement Partner who will serve as the primarypoint of contact for this proposal. She is authorized to make representations on behalf of our firm and can be reached directly by phone at (714) 988-4852 or by email [email protected]. Please contact Christian for any clarification or contract negotiations related to this proposal.
We affirm that our proposal fully aligns with all terms, conditions, and requirements outlined in the City’s REP. Please note there was not a Professional Services Agreement attached to the REP for review per REP PDF Page 10, we will review the PSA upon receipt for mutual agreement and AICPA compliance.
Our proposal is a firm and irrevocable offer for one hundred twenty (120) calendar days following the closing date of the receipt of proposals. We welcome the opportunity to discuss any aspect of our proposal to ensure your complete satisfaction.
Sincerely,
Christian Townes, CPA, Partner
LSL, LLP
500 Technology Drive, Suite 350
Irvine, CA 92618
Office: (949) 829—8299Direct: (714) 988-4852
City of A va/on
RFP -Professional Auditing Services
4. Detailed Proposal
1. LICENSE TO PRACTICE IN CALIFORNIA
LSL is a public accounting firm licensed by the State of California Department of Consumer Affairs as a Public Accounting Partnership. Additionally, we are members of the American Institute of Certified Public Accountants (AICPA) and the California Society of Certified Public Accountants (CaICPA). All key members assigned to this engagement are licensed or are in the process of obtaining their license as Certified Public Accountants by the State of California.
Business License
LSL affirms that we will obtain and maintain active business licensure with the City of Avalonupon award of contract.
2. INDEPENDENCE
LSL meets the independence requirements set forth by the Government Auditing Standards.
Our partners have no ownership in any other business organization that currently or willpotentially provide services, supplies, materials, or equipment to the City. We annually distribute a listing of our firm’s clients to all employees to ensure that any possible independence threatsare properly documented and reviewed.
3. FIRM QUALIFICATIONS AND EXPERIENCE
History & SizeLSL, LLP is a limited liability partnership and is not a wholly owned subsidiary of a parent company. LSL was established in 1929 and has grown as a leader in the government sector.Our full-service accounting firm is headquartered in Irvine, California, with a dynamic team of 15 partners, 4 principals, and 180+ employees.
We provide auditing, accounting, and consulting services to over 100 municipal clients, including counties, cities, water and electric utility districts, and special-purpose government agencies.
Our government sector services encompass a broad range of specialties, including attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.
LSL’s Government Team Resources
Our governmental staff consists of three (3) Partners, one (1) Director, four (4) Senior Managers, eight (8) Managers, nine (9) Supervisors, and twenty (20) Professional Staff.
City of A valon
RFP -Professional Auditing Services
LSL will not be subcontracting any portion of the City’s audit. All staff assigned to the audit portion of the engagement will be employed by LSL on a full-time basis and have extensiveexperience providing auditing services for cities, counties, and special-purpose government agencies. However, LSL does collaborate with a third-party for the preparation of the SCO (State Controller’s Office) reports to ensure that the reports are prepared and filed correctly and timely by experts in those reports.
Our educational programs are designed to provide our team members with the knowledge and skills necessary to deliver high-quality services to our clients. We offer a variety of trainingopportunities, including those provided by CaICPA, AICPA, Government Audit Quality Center,and Government Finance Officers Association (GFOA).
Location
Our Offices
...
Irvine, CA
600 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299
Sacramento, CA Phoenix Metropolitan Area, AZ The Woodlands, TX 500 Capitol Mall, Suite 2350 950W. Elliot Rd., Suite 110 21 Waterway Avenue, Suite 30089 Sacramento, CA 95814 Tempe, AZ 85284 The Woodlands, TX 77380 Phone: (916) 503-9691 Phone: (480) 424-7855 Phone: (936) 828-4587 The Irvine office will serve as the physical office to support the City; however, we regularly share staff and resources across our offices to leverage the virtual footprint of our government team that spans across the United States. This collaborative approach ensures that you receive the highest level of industry-specialized service while maintaining a streamlined, reliable audit and comprehensive coverage.
Staff Continuity
To ensure the quality of our staffing, we have established firm policies that prioritize the continuity of engagement teams, except in cases where an employee has left the firm or has been promoted. In the event of any changes in staffing at the Manager position and above, LSL will first seek written permission from the City.
City of Avalon
RFP - Professional Auditing Services
Government Auditing StandardsLSL understands its responsibilities to perform audits and issue opinions on the City’s financial statements as well as its fair presentation. Our financial audits are performed in accordance with the Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States, and our Single Audits are performed in accordance with the requirements of the Uniform Guidance. We will also evaluate the City’s internal control system and provide recommendations for growth and improvement.
Current List of Municipal Clients
A current list of municipal clients can be found in APPENDIX A — CURRENT LIST OF MUNICIPAL CLIENTS, which includes LSL’s most significant engagements conducted within the last three (3) years that are similar to the engagement described in this request for proposal.
GFOA Award Program
LSL understands the significance of obtaining and maintaining the Certificate of Excellence in Financial Reporting from the GFOA. We have prepared financial statements and footnote disclosures for many of our local government clients who have received this award. Ourgovernmental partners, managers, and seniors are closely involved in the preparation of these reports. Clients currently receiving the GFOA award are also noted in APPENDIX A — CURRENTLIST OF MUNICIPAL CLIENTS.
Single Audit Experience
Our firm has extensive experience in performing Single Audits for local government agencies under the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements of Federal Awards (Uniform Guidance), and the United States Office of Management and Budget (0MB). APPENDIX A — CURRENT LIST OF MUNICIPAL CLIENTS also includes a list of government audit clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table on the followingpage highlights recent examples of federal programs audited by LSL.
Peer Review
City of Avalon
RFP -Professional Auditing Senilces
Our firm has participated in the AICPA Peer Review Program since its inception. All our peerreviews have covered specific governmental engagements and have received pass ratings. Our most recent peer review conducted by Spafford and Landry CPAs is provided on the followingpages.
Federal Granting Agency - - AL# J Name of Program
U.S. Department of Agriculture
U.S. Department of Housing & Urban DeelopmentU.S. Department of Housing & Urban DeelopmentU.S. Department of Housing & Urban Development U.S. Department of Housing & Urban DeelopmentU.S. Department of Housing & Urban DeelopmentU.S. Department of Housing & Urban Deelopment U.S. Department of Transportation
U.S. Department of TransportationU.S. Department of Transportation U.S. Department of TreasuryU.S. Department of TreasuryU.S. Enronmental Protection AgencyU.S. Department of Health and Human Sertces U.S. Department of Health and Human SertcesU.S. Department of Health and Human Ser4cesU.S. Department of Health and Human Serroes U.S. Department of Homeland SecurityU.S. Department of Homeland Security
10.55714. 19514. 218
14.22814.23914. 856
14. 87 1
20.10620.20520. 507
21. 01921.027
66.458
93. 563
93.66793.67693.778
97.03697.067
Special Supplemental Nutrition Program for Women, Infant, and Children Section 8 Housing Assistance Payment Program
Community Deelopment Block Grants/Entitlement GrantsCommunity Deelopment Block Grants/States program and Non-EntitlementGrants in Hawaii HOME lnestment Partnerships ProgramLower Income Housing Assistance Program Section 8 Moderate Rehabilitation Section 8 Housing Choice Vouchers
Airport lmproement Program
Highway Planning and ConstructionFederal Transit Formula Grants Coronarus Relief Fund (CRF)Coronaws State and Local Fiscal Recoery Funds (SLFRF) Capitalization Grants for Clean Water State ReoMng FundsChild Support EnforcementSocial Seruces Block Grant Unaccompanied Alien Children Program
Medical Assistant Program - Medicaid Cluster
Disaster Grants- Public Assistance (Presidentially Declared Disasters)Homeland Security Grant Program City of A va/on
RFP -Professional Auditing Services
I Patrick D. Spallord CPA SPAFFORI) ‘LANJ)RY ‘“ ToddC.Landry.CPA III WI I, SI SkI 11W i’\t i’. 15119 I Ict1rlsccl’cueurrul;si’c,IAccxirdari:y ‘Airs .AIrE:rIcan Iri’llI V C-cr 1111cc :ct- t,c:cDuriIaIil:
Report on the Firms System of Quality Conti’ol
To Lance, Soil & Lunghaid. LLPand the Peer Review Committee ofthe California Society of CPAs We have reviewed the system of quality control for the accounting and auditing practice of Lance, Soil & Lunghard. LIP (the finn) in effect for the year ended May 31, 2022. Our per review was conducted in accordance with the Standards for Perfonning and Reporting Oil Peer Reviews established by the Peer Review Board ofthe American Institute of Certified Public Accountants (Standards).
A siunmaxy of the nature, objectives, scope. limitations of. and the procedures performed in a systemreview as described in the Standards may be found at ursvwaicya ora--’prsuminarv. The siunmasy also includes an explanation of how engagements identified as not performed or reported on in confornntywith applicable professional standaids. if any. are evaluated by a peer renewer to determine a peer review rating.Firm’s Responsibility
The finn is responsible for designing and complying with a system of quality control to provide the firm with reasonable assurance of performing and reporting in conformity with the requirements of applicable piolhssional standards in all material respects. The firm is also responsible for evaluating actions topromptly remediate engagements deemed as not performed or reported on in conformity with the requirements of the apphcable professional standards, when appropriate, and for remediating weaknessesin its system of quality control. if any Peer Reviewer’s ResponsibilityOur responsibility is to express an opinion on the design and compliance with the firms system of quality control bat-ed on our review
Required Selections and ConsideratioirsEngagements selected for teview included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act and employee benefit plan audits.
As a part of our peer revsexc we considered reviews by iegnlatory entities as ccrnmmnicated by the finn if applicable. in determining the nathre and extent of our procedures. :_L_,;IjIur:lP.j,,
City of A va/on
RFP -Professional Auditing Services
Opinion
In our opiinoa the System of quality coutrol for the accounting and auditing pnictLce of Lance. Soil &Lungliard. LLP in effect for the year ended May 31. 2022. ha beets suitably designed and complied withto pius-ide the finn with reasonable assurance of perforating and reporting in confoiuutv with applicable professional standards in nil material respects. Fiinzs can receive a rating of pass. pass strii ciqfkfttin lies). orthil. Lan’ce. Soil & Lungliard. LLP has received a peer review rating ofpass.
I
).farch 30. 2023
City of A va/on
RFP -Professional Auditing Seniices
Desk Review I Disciplinary Action
There have been no disciplinary actions against our organization since its inception. There have been no litigations against our firm in the past three years. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Controller’s Office acting as the Oversight Agency. LSL has never had a report rejected by any of these agencies and is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports.
4. PARTNER, SUPERVISORY, AND STAFF QUALIFICATIONS AND EXPERIENCE Organizational Chart of Principal Staff
Ryan Domino, CPA
Partner
Concurring Partner
13 Years of Experience
Christian Townes, CPA
Partner
Engagement Partner
13 Years of Experience
Riley Greenlee, CPA
Senior Manager
Audit Manager
9 Years of Experience
Audit ln..Charge
to be assigned
FStaff Associate
to be assigned
Staff Associate
to be assigned
Staff Associate
to be assigned
Staff Associate
to be assigned
City of A va/on
RFP -Professional Auditing Senvices
Christian has dedicated over 12 years to public accounting, with a focus on governmental services and auditing, including federal grant compliance. She has a strong background in navigating thecomplexities of GASB regulations, ensuring compliance and accuracy in financial processes. Additionally, Christian specializes in Single Audit planning and execution, along with a strategic approach to audit processes. She excels in evaluating and performing Single Auditspecific requirements, including major program determination, audit sampling, and reporting on the compliance of internal controls. As a Partner in LSL’s Government Services, Christian takes the initiative to work closely with her clients, troubleshooting their difficulties and developing the best processes that fit their needs.
Ryan has a strong technical focus and specializes in governmental accounting and auditing. He currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and regularly presents at our firm’s annual GASB Update and at CSMFO’s chaptermeetings where he presents and trains on the latest GASBpronouncements. Ryan is an expert on Single Audit planning and execution and holds advanced certification from the AICPA. Ryan provides our clients with a competitive advantage as a member ofGFOA’s Special Review Committee for the Award for Excellence in Financial Reporting and able to provide valuable insights andrecommendations to help organizations achieve excellence in financialreporting. . . . . . .
Engagement Team Resumes
Team resumes are available in APPENDIX B — ENGAGEMENT TEAM RESUMES, which details the position of each team member in the firm, their educational background, and their years and types of experience. The resumes also provide information on relevant continuing education completed by the team members during the past three years. Proposed team members will beavailable for ninety (90) days from the proposal due date. LSL will promptly notify the City of anychanges in key personnel prior to award.
Christian Townes, CPA
Engagement Partner
Ryan Domino, CPA
Concurring Partner
City of A va/on
RFP -Professional Auditing Services
Quality of Staff Assurance
LSL is committed to providing the City with a stable and experienced team that is dedicated to delivering a high-quality audit and exceptional service. We understand the importance of maintaining a strong and reliable team throughout the engagement, and we will work closely with the City to ensure that any staffing changes are handled with minimal disruption to the continuity of the engagement.
Continuing Education
At LSL, we strongly emphasize professional development and continuing education to ensurethat our team members are up to date on the latest developments in governmental accounting and auditing. As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period.
Additional Resources
The LSL team is comprised of top talent within the industry with comprehensive experience beyond governmental audit, accounting, and advisory services. When you partner with LSL, you gain access to the experience, knowledge, and resources of our entire team, including our consulting and technology teams. We are committed to helping finance departments thrive by providing the guidance, tools, and services that foster lifelong success for your finance team.
We encourage our clients to tap into our full professional team of industry and product experts for your full-service consulting and staffing.
Financial & Compliance Consulting, Staffing & ERP &
Audits Training Other Technologies
City of A va/on
RFP -Professional Auditing Services
Kelly is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. She has developed her expertise in public and local government accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology. She has taught classes for GFOA and CSMFO and has presented at annual conferences for GFOA, CSMFO and GFOAA. She has previously served as Finance Director for the cities of Costa Mesa and Seal Beach as well as the Los Angeles Community Development Agency. Kelly has a proven track record of helping agencies identify operating inefficiencies assisted in departmental reorganizations, identify internal control challenges, completing yearend close procedures, and serving as an outsourced Finance Director.
Her practical recommendations are instrumental in helping our team and our clients achieve a high-quality and efficient audit while providing valuable feedback for organizational improvements.
. .
5. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES
The following references highlight our experience in providing professional auditing services to other governmental organizations with similar size and scope as the City of Avalon. We invite you to contact them to gain insight into our working relationships and quality of service.
Most Significant
County of Butte
Contact Graciela Gutierrez, Auditor-Controller
Telephone 530-552-3600
Email c1c1utierrez(buttecounty.netDates of Services 2024 -Present Audit of the County’s ACFR receiving the GFOA award; Single Audit; Dept of Type of Service Insurance Program Audit, Boating Safety and Enforcement Audit, CaIOES Audit
Total Hours 600
Kelly Telford, CPA
Consulting Partner
Engagement Partner Christian Townes
City of Avalon
RFP - Professional Auditing Services
City of Burbank
Contact Craig Wood, Deputy Finance Director
Telephone 818-238-5500
Email cwood(burbankca.covDates of Services 2012 - Present Audit of the City’s ACFR; Housing Co Audit; Citywide Cash Handling Audit; EMS Membership Program; Burbank Airport; Tennis Center; AUP:
Type of Service Ambulence, BUSD, TPT; Burbank TOT; Feature Parking TPT Audit; Starlight Bowl AUP; Utility User’s Tax; Golf Course Audit; Franchise Fees; Oracle;Burbank Housing Corp.
Total Hours 750
Engagement Partner Brandon Young
City of Pasadena
Contact Armine Trashian, Controller
Telephone 626-744-4355
Email atrashiancityofpasadena.netDates of Services 2015—2019; 2023— Present Type of Service Audit of the City’s ACFR which receives the GFOA award, in accordance with GASB. Audit and preparation of financial statements for the City’s Discretely Presented Component Units, the Rose Bowl Operating Company, thePasadena Center Operating Company, the Pasadena Community Access Corporation and Single Audit in accordance with 0MB Uniform Guidance.Review and issue a report on the calculation of the City’s Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution.
Total Hours 800
Engagement Partner Brandon Young
City of Santa Monica
Contact Steve Gomez, MBA, CPA, Financial Operations Manager Telephone 310-458-8272
Email steve.qomezsantamonica.govDates of Services 2016 - Present Audit of City’s ACFR receiving the GFOA award; Single Audit; compliance audit of the City’s Housing Successor; compliance audit of the City’s Air Type of Service Quality Management District revenues and expenditures; audit of the “Big Blue Bus” Enterprise Fund, National Transit Database (NTD) AUP; REAC submission, and application of AUP of City’s GANN Limit calculation Total Hours 800
Engagement Partner Ryan Domino
City of A va/on
RFP -Professional Auditing Services
County of Placer
Contact Nicole Howard, Auditor-Controller
Telephone 530-889-4210
Email nhowardplacer.ca.ciovDates of Services 2024 - Present Audit of the County’s ACFR receiving the GFOA award; Single Audit; REAC AUP Submission; First 5 Commission Audit, Western Placer Waste Type of Service Management Authority Audit, GANN Limit AUP, Golden Sierra Job Training Agency Audit & Single Audit, Placer Mosquito Vector Control Audit, Placer County Treasury Review Panel
Total Hours 1400
Engagement Partner Christian Townes
Client References
City of Dana Point
Contact Sea Shelton, Director of Administrative Services Telephone 949-248-3516
Email sshelton(ãdanapoint.orqDate of Service 2024 - Present Audit of the City’s ACER, which receives the GEQA award, Investment AUP, Type of Service Gann Limit, Single Audit Engagement Partner Ryan Domino
City of San Clemente
Contact Jake Rahn, Financial Services Officer
Telephone 949-361-8360
Email rahnicsan-clemente.orqDate of Service 2018 — Present Audit of the City’s ACFR which receives the GFOA award; Single Audit; Gann Type of Service Appropriation Limit AUP; Coastal Animal Services Authority (CASA) Audit Engagement Partner Ryan Domino
City of Avalon
RFP -Professional Auditing Services
City of Laguna Beach
Contact Michelle Bannigan, Finance Manager
Telephone 949-497-0319
Email mbanniganlagunabeachcity.net
Date of Service 2024 -Present
Audit of the City’s ACFR, which receives the GFOA Award; Gann Appropriation Type of Service Limit AUP, Financing Authority Audit, and preparation of the State Controller Reports
Engagement Partner Ryan Domino
City of Diamond Bar
Contact Jason Jacobsen, Finance Director
Telephone 909-839-7051
Email iiacobsendiamondbarca.gov
Date of Service 2012 — Present
Audit of the City’s ACFR, which receives the GFOA award; performed agreed-upon procedures over the City’s Gann Limit calculation, Safe and Type of Service Clean Water Program Audit, Single Audit over the City’s federal award programs, and Financial Transactions Reports for the State Controller’s Office
Engagement Partner Christian Townes
City of Citrus Heights
Contact Dena Jenkins, Finance Manager
Telephone 916-727-4719
Email dienkinscitrusheiqhts. netDate of Service 2019 - Present Audit of the City’s ACER, which receives the GFOA award; Single Audit; Type of Service performance of agreed-upon procedures over the City’s GANN limit; and audit of City 401(a) plan
Engagement Partner Christian Townes
6. SPECIFIC AUDIT APPROACH
Project Management Methodology
The LSL team holds itself to a high standard for timely delivery and effective communication of key milestones. We understand the importance of being responsive and communicative with our clients, and we are committed to being available on a day-to-day basis to address any questions or concerns that may arise throughout the engagement. Areas of concern and potential findings will be communicated to the City as soon as they are discovered to mitigate any surprisesthroughout the audit.
City of A valon
RFP -Professional Auditing Services
At the beginning of the engagement, we will hold a planning meeting with you to determine the timeline, expectations, and desired outcome of the agreement on the issuance of financialstatements. Throughout the process, we will have periodic meetings with you to provide updates and discuss progress. Upon award of contract and per the City’s requested timeline, LSL will work closely with the City to develop an audit plan and timeline to ensure compliance and timelydeliverables.
As part of the Scope of Work and time requirements, we assume that the City will provide all necessary information needed to complete the financial statement audit and Single Audit, as applicable. We will proactively identify and communicate any pending information from the City that could hinder our ability to complete the objectives of the engagement in a timely manner.
Quality Management System
LSL’s Quality Management System fully complies with the AICPA’s Statement of Quality Management Standards No. I and showcases our unwavering commitment to excellence in audit and assurance services. Designed to meet and exceed industry standards, our framework integrates robust risk management, ethical compliance, and continuous improvement across every engagement. With clear policies for governance, client relationships, resource allocation, and performance monitoring, our system empowers every team member to deliver reliable, high-quality results. By fostering a culture of transparency, accountability, and innovation, LSL ensures clients receive exceptional service and peace of mind, backed by proven processesand a dedication to quality at every level.
Project ScheduleLSL assumes under the time requirements that the City will have closed its books and will present the LSL team with general ledger balances that are auditable prior to the start of fieldwork. Due to the timing of the release of the REP, we propose an alternative schedule forthe first year of the engagement term that differs from subsequent years. The sample timelines provided on the following page display the key stages of the audit and the deliverables.
Year One
City of A va/on
RFP -Professiona/ Auditing Services
Entrance
Conference will be
held before interim
begins.
Segment I
Interim Testing
will begin in July, or
earlier, if possible.
Segment 2
Year-end Testing will
take place in
November! December,
or earlier, if possible.
Exit Conference will
be held on the last day
of fieldwork.
Segment 3
Draft Audit Letters
and Other Reports
will be provided to
the City in January.
Final ACER Report
and Approval will be
delivered on a
mutually agreed upon
date in
January/February.
Delivery of Financial
Statements and
Presentation of
Financials - LSL will
be available as
requested to present
the results of the
financial audit.
Segment I
Interim Testing will
begin in June, or
earlier, if possible.
Segment 2
Year-end Testing will
take place in October,
or earlier, if possible.
Exit Conference will
be held on the last day
of fieldwork.
Final ACER Report
and Approval will be
delivered on a
mutually agreed upon
date in
November/December.
Delivery of Financial
Statements and
Presentation of
Financials - LSL will
be available as
requested to present
the results of the
financial audit.
Subsequent Years
I
Entrance Segment 3
Conference will be Draft Audit Letters
held before interim and Other Reports
begins, will be provided to
the City in
__________
November.
City of A va/on
RFP -Professiona/ Auditing Services
Proposed Work Plan
At LSL, we use a governmental audit program that will be tailored to the City’s operations to accommodate its specific circumstances and organizational structure. LSL’s audit programs areorganized by financial statement category, which we believe is the most effective and efficientapproach to substantially reduce the risk of omitting important procedures. Our approach is designed to increase audit efficiency by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements.
A) Proposed Segmentation
Our audit services will be divided into the three succeeding segments:
Segment 1 — Planning and Obtaining an Understanding
• Segment 2 — Financial Audit Testing• Segment 3 — Conclusion Segment I — Planning and Obtaining an Understanding
LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information letter. The audit communication letter is to be provided to the City Council and/or Board of Directors and can be communicated orally to those charged with governance, if requested, where we will discuss planning stages, responsibilities of the City Council and/or Board of Directors, Auditors, and Management, and provide an opportunity tocommunicate with us as the auditors.
An entrance conference will be scheduled prior to the agreed-upon week of interim testing to ensure that the transition to new auditors is as seamless as possible. Discussions in this meetinginclude, but are not limited to, an understanding of reports and key milestones for deliverables,prior audit reportable conditions and issues, and “Prepared by Client” (PBC) schedules.
A trial balance is requested for our planning meeting to assist the LSL team in obtaining knowledge of economic conditions, industry elements, and new standards that may affect theCity. We will compile a list of PBC items based on our review of the prior year’s financial statements and the gathered information that will be provided to the City one month prior to testing or earlier if requested. We operate on a paperless software system and provide a secured cloud-based portal for all clients. The City will have a separate folder that can be customized to organize, and upload requested schedules, support documents, etc.
After interim testing, we will hold an exit meeting to discuss potential weaknesses, if any, and provide feedback for improvements or valuable information gathered from any outside clientele that would benefit the City.
City of Avalon
RFP -Professional Auditing Seivices
Segment 2 — Financial Audit Testing
Based on the information gathered thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City’s internal controls and Government Auditing Standards. The primary benefit of a tailored program is a focused set of procedures to address relevant areas. We believe that this approach is both effective and efficient and is critical to compliance with other material laws and regulations.
We will annually compile another customized PBC list for the year-end testing provided at least one month prior or earlier if requested. We will request trial balances from the City for ouranalytical review to be provided one week before testing is scheduled to commence. Year-end testing will include testing of the balance sheet, revenue and expenditures accounts, confirmation of selected balances, analytical procedures, evaluation of the internal controls, and preparation of reports and letters.
Segment 3 — Conclusion
Based on our year-end exit meeting we will discuss a plan to finalize the financial statements according to the timetable of the City. We will schedule dates for the initial and final drafts including time for LSL’s and the City’s review and approval of the financial statements. This period will also account for review by the engagement partner and quality assurance partner.
After the review and receipt of the signed Representation Letter from the City, LSL will provide a final report on a mutually agreed upon date each year.
B) Level of Staff Assigned and Number of Hours to be Assigned
TOTAL PROPOSED HOURS
Experienced
Segment/Task Partners Manager Supervisor Senior Staff Staff clerical Total city’s Financial AuditTnterimtestwork 3 10
Year-End test work 0 0
Report/Review/Supervision 11 26
Subtotal 14 36
Single Audit *
Testwork 0 0
Report/Review/Supervision 2 6
Subtotal 2 6
Gann Limit AUP
Report/Review/Supervision 0 1
Subtotal 0 1
Annual State controllers Financial Transaction Report
Report/Review/Supervision 0 2
Subtotal 2
TOTAL PROPOSED HOURS:
0 18 34 0 0 650 10 70 50 0 130
20 38 0 0 10 10520 66 104 50 10 300
0 5
0 5
0 10
0 000
0 o i0 1
20 0 25
0 2 15
20 2 40
2 0 42 0 4
Hours proposed are for one (1) major program. *
City of Avalon
RFP -Professional Auditing Services
C) Audit Sampling
For tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures. Audit sampling is typically used for tests of controls and compliance that involve theinspection of documents and reports indicating the performance of the applicable policy or procedures and compliance with the applicable laws and regulations. Sample sizes vary based on the population and risk-based calculations.
D) Type And Extent of Analytical ProceduresFor the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stages of the audits. These proceduresare designed to assist us in planning our audits and in assessing the propriety of the conclusions reached and evaluating the overall financial statement presentation.
The procedures to be utilized consist of determining expectations for changes to significant revenue, expenditure, and balance sheet accounts, reading the financial statements and relatednotes, reviewing the budget and related material, and focusing on overall relationships within the financial statements.
Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied, and related evidence isgathered to resolve concerns and questions.
E) Electronic Data Processing Software & Al TechnologyLSL is always at the forefront of technology and finding ways to increase efficiency in our audits.
Our goal is to effectively streamline the audit process to make the burden of an audit easier onour clients and ease any technical disagreements.
Casewa re
At LSL, we partner with and utilize Caseware to perform our audits and retain electronicworkpapers and supporting documentation in a fully cloud-based platform. During our preparation of the ACFR, all financial statements and schedules are linked to Caseware andaudit documentation, ensuring accuracy and consistency with City records and eliminating the risk of manual errors.
City of A valon
RFP -Professional Auditing Services
LSL Caseware Cloud Portal
Our web-based portal system provides clients with the ability to securely share information in auser-friendly platform. Integrated with Caseware OnPoint Collaborate, this state-of-the-art tool enhances collaboration in accounting and auditing. It enables direct communication with clients throughout the audit process for feedback exchange and tracks activities such as audit requests, client uploads, and progress. Access to the secure hub can be restricted to relevant individuals.
This tool eliminates the necessity of sending sensitive documents via email, enhancing efficiency. Client dashboards are customizable to meet specific needs.
Data Extraction & Audit Analytics
We believe software is only as effective as those who know how to use it. That’s why we train all our staff and incorporate the use of Caseware Analytics Al and IDEA into our audit approach. These two complement each other to create a risk-based transaction analysis tool.
We utilize them to scan transaction sets, identify exceptions warranting further investigation, and provide additional assurances to our clients. These tools offer users a high-level summary and reduce time spent in transaction analysis by automatically performing multiple tests on the entire transaction set. They assist in identifying duplicate payments, high-risk journal entries, and developing expectations for analytical procedures used during the audit.
Experience With ERP Systems
Many of our clients have updated their system software with new Enterprise Resource Planning (ERP) systems over the years. We make ourselves available for questions and recommendations, including assistance with the vendor selection process. Our clients’ transition to more sophisticated ERP systems has allowed us to gain a better understanding of eachsystem and its unique capabilities. We often obtain read-only access to our clients’ software and can work directly within the system. This allows us to provide useful observations and recommendations regarding internal controls and facilitates efficient audit test work. Some of the ERP and Property Tax Systems we have extensive experience with include Tyler Technologies (Munis, New World, Eden, Incode), One Solution, Oracle, SAP, lnfor, Megabyte, and more.
F) LSL’s Approach to Understanding the City’s Internal Control Structure LSL will perform procedures as required by SAS 122-125 to obtain an understanding of the City and its environment along with assessing the risks of material misstatements in order to gain insight into the internal control structure over the financial statements. Our review will encompass various areas such as financial reporting, cash, revenues and receivables, utility billing, expenses, accounts payable, payroll, capital assets, long-term debt, and grant reporting.
We will issue a management letter (SAS 115 Letter) that identifies any significant deficiencies and/or material weaknesses found as required by the Government Auditing Standards.
City of A va/on
RFP -Professiona/ Auditing Seivices
Our process is to obtain and review the City’s annual budget book, organizational charts, standard operations procedures, manuals, policies, or other written documentation to identify processes and controls for critical transaction cycles. As much as is possible, we attempt to gather the data from the City’s publicly available documents prior to beginning the audit to reduce the workload of the City’s audit staff. Additionally, during Segment 1 of the audit, LSL will conduct interviews with the management of finance and responsible parties of each audit section to understand the processes and controls through observation and discussions. We will alsoperform sampling transactions as part of a “walk-through” process to verify that the system of control is functioning as per the policies and procedures.G) Determining Laws and Regulations Subject to Audit Test Work The Laws and Regulations that will be subject to audit test work are determined by the applicable laws, regulations, contracts, and grant agreements which we identify through the understanding we obtain of the City and our extensive experience with other governmental entities.
H) Drawing Audit Samples for Compliance
The sampling procedures test the operating effectiveness of an internal control structure policy or procedure by determining how the policy or procedure was applied, the consistency with which it was applied during the audit period, and by whom it was applied. We will draw samples for disbursements, receipts, and payroll when applicable. Each document selected will be tested forvarious attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger.7. ANTICIPATION OF POTENTIAL AUDIT PROBLEMS, ROLES & RESPONSIBILITIES OF
THE CITY
Outside of the complexities that arise with the implementation of GASB pronouncements, LSL does not anticipate any audit problems or conflicts in the performance of the services requested in this REP. Our approach is to partner with our clients to provide information, training, and theresources necessary to successfully implement any new changes in accounting principles.
As mentioned previously, LSL assumes that the City will provide all necessary information to complete the financial statement and single audits. The LSL team assigned to this engagement will help identify and communicate any pending information needed from the City that may hinder the engagement’s objectives and timely completion. Additionally, LSL assumes that the City will have closed its books and present auditable general ledger balances.
City of Avalon
RFP -Professional Auditing Services
GASB Implementation
LSL is committed to ensuring the seamless adoption of GASB pronouncements not yet in effect.
As mentioned, we provide annual training sessions on new and forthcoming GASB standards available to both the City and LSL staff to promote compliance and operational efficiency.
Additionally, we can discuss a year round custom and tailored support plan designed to meet your needs to facilitate successful implementation of all applicable GASB pronouncements. This can include ongoing guidance and expertise to address any challenges and enable a smooth transition and adoption.
LSL Highlights: Awards & Values
LSL is a multi-location firm with formidable resources that provides a personal feel and handson client experience.
L9,)
Established
in 1929
Accounting Today Regional Leader
LSL has again been recognized as an Accounting Today Regional accountlnqToDAv Leader in 2026. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions.
______________________
INSIDE Public Accounting Award
LSL is honored to be recognized among the Top 300 accounting firms in thenation by INSIDE Public Accounting! Each year, IPA ranks CPA firms based on net revenue, and LSL proudly advanced from #220 in 2024 to #201 in 2025.
Our fantastic team and the trust of our valued clients are the driving forcebehind this upward momentum and continued growth.
Best of Accounting Award
LSL has consistently secured the ClearlyRated Best of Accounting award since 2019. This exclusive program awards accounting firms who demonstrate highlevel service of excellence within the accounting industry and solely leveragesstatistically validated survey responses from our clients.
4.7 based on 646 ratings
INSII)I public accouufing
F3C(I
Best of —‘
Accounting2026
Ranked #l7onthe Orange
County Business Journal’s
CPA Firm Book of Lists
00000
180 Employees
(and growing!)
15 Partners
4 Principals
Regional Leaders
City of Avalon
RFP -Professional Auditing Services
Our Core Values
Our values weren’t decided on by management and handed down. Every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients. 11/ ... . I,. .
-.
PURSUE EXCELLENCE LOVE WHAT YOU DO LEAD WITH INTEGRITY ACCOMPLISH MORE FORWARD THINKING
TOGETHER
Training Services & LSL Seminars
LSL offers a comprehensive suite of training options including written materials, in-person, online and webinars covering both current topics and foundational concepts. These programs are tailored towards finance department teams to ensure that both clients and staff are informed and prepared in governmental accounting and auditing with continued support throughout. Weregularly lead instructional sessions and learning opportunities in financial reporting, internal control risk assessments, and the latest GASB updates delivering the most current information and ideas that impact your industry. These opportunities are made available through our firm to the City for professional development or continuing professional education credits. Some of thetopics include:
.
ERP Uniform Guidance Addressing Staffing LSL Back to Basics GASB Updates Implementation (UG) Updates Challenges Series Panel Back to Basics topics include:
GASB 101: Compensated Absences
Capital Assets
Bank ReconciliationsPension & OPEB
Accounts ReceivableNP, Accrued Liabilities, and Long-Term Debt Leases & SBITAS
For upcoming webinars, please visit https://lslcras.com/webinars/.
City of Avalon
RFP -Professional Auditing Seniices
Appendix A — Current List of Municipal Clients
Current List of Municipal Clients
IClientName ChentCIaContactPerson Services YearsU Phone * Barstow
Big Bear Fire Authority
* Big Bear Lake
* Brea* Burbank* Butte County
Canyon LakeCarlsbad
Cathedral CityChino Hills
Citrus Heights
Citrus Heights Water District
Coachella Valley Water District
Culvar CityDana PointDiamond Bar
DowneyDuarte
Durham Mosquito Abatement District
* East Bay Municipal Utility District* Eastern Municipal Water District El Dorado CountyEl Toro Water District
FullertonGaitGrand TerraceInglewood
* Irwindale
Kress
* La Quinta
* Laguna Beach
Livingston
* Lodi
* Lompoc* Malibu* Manhattan Beach* Mesa Water District
* Monrovia
Monterey Peninsula Airport District
* Napa
Nevada City
* Nevada County* Newark
* Oceanside
OrangeOrchard Dale Water District
M Sydnie Hams
S Kristin Mandolini
M Joseph ToneyM Monica Lo
M Heidi OkimotoC Graciela Gutierrez
M Aaron BrownM Zach KorachM Kevin BiersackM Nicole Lugotoff M Alberto Preciado
S Annie LiuS Karla Romero
M Lisa SoghorM SherlManano
M Jason JacobsenM Francesca NavarroM Angela ChiaromonteS Anita Weinreich S Melody WangS Wilma Gamz
C Alison Winter
S VishavSharma
M Toni SmartM Cindy Nguyen
M Christine Clayton
M Sharon KoikeM LoriSt
T Johnny Ta4or
M Claudia MartinezM Shannon EspinozaM Happy BainsM Chia LorM Christie Donnelly M Renee NeermanM Julie Bondarchuk
S Anthony Phou
M BuffyBullis
S Mark Wilson
M Rajneil (Raj) Prasad
M Stephen ErlandsonC Gina WillM Krysten Lee
M Jill MoyaM Trang Nguyen
S Ron Richard
A1A2
Al
A1,A2A1,A2
Al,A2
A1A2
AlA2
Al,A2
Al,A2
Al,A2Al,A2
Al
Al,A2Al,A2
Al
A1A2
AlA2
Al
Al
AlA2
Al,A2AlA2
Al
Al,A2
Al
AlA2Al,A2
AlAl
Al A2
AlAl
Al,A2AlA2
AlAlAl
AlA2Al,A2A1A2
AlAl
Al,A2
Al,A2AlA2
Al
11 760-255-5115
9 909-866-5831
27 909-866-5831
13 714-990-7600
15 818-238-5500
1 530-552-3600
30 951-244-2955
3 760-602-2430
15 760-770-0378
28 909-364-2648
6 916-272-4776
4 916-735-7703
12 760-398-2651
1 310-253-60161 949-248-3516
15 909-839-705111 562-904-7265
1 626-357-79311 530-518-0364
6 510-287-02804 951-928-3777
1 530-621-67291 949-599-2504
4 714-738-6522
7 209-366-7150
11 909-824-662110 310-412-5257
30 626-430-2200
1 806-994-50511 760-777-70551 949-497-0319
4 209-394-80412 209-269-46384 805-875-8283
21 310-456-2489
15 310-802-5564
3 949-574-1022
24 626-932-5513
6 831-648-7000
1 707-257-9698
1 530-265-24961 530-265-1580
6 510-578-4288
16 760-435-3887
2 714-744-22516 562-941-0114
City of A va/on
RFP -Professional Auditing Services
* Palm Desert* Pasadena* Placer County* Rainbow Municipal Water District Rancho Cucamonga
Rolling Hills
* Rosemead
Roseille
* Sacramento Transportation Authority
San Bernardino Municipal Water Departr
* San Clemente
* San Joaquin Council of Governments
San Juan CapistranoSan MarinoSanta MonicaShasta CountySouth Coast Air Quality Management DirStanislaus Council of GovernmentsSutter County Three Valleys Municipal Water District
United Water Conservation District
VacavilleVallejo
West Sacramento
Woodland
Yolo County
* Yorba Linda Water District
M Veronica ChavezM Armine Trashian
C Debbie Chan
S Rick Aragon
M Caroline Cruz-ContrerasM Robert Samaiio
M Maria Teresita AnsonM Kyle Horton
S Dustin PurintonS Cynthia Mouser
M Jacob Rahn
S Lynette Castle
M KenAl-knamM Hillary Guirola-Leon
M Steve GomezC Nolda Short
S Susanna Leung
S Jean Foletta
C Nathan Black
S Jose VelasquezS Brian Zahn
M Ken Mats umiyaM Rekha Nayar
M Becky RobertsonM Kimberly McKinneyC Tom Haynes
S David Christian
8 760-346-0611
12 626-744-4000
1 530-889-4180
5 760-728-1178
47 909-774-2434
16 310-377-1521
7 626-569-21464 916-774-55262 916-323-08946 909-453-6010 7 949-361-83606 209-235-0454
4 949-493-1171
32 626-300-0708
9 310-458-8272
1 530-245-6657
2 909-396-2623
1 209-525-4891
6 530-822-7127
17 909-626-5568
2 805-695-38705 707-449-51806 707-648-54332 916-617-4584 5 530-661-58496 530-666-81623 714-961-7140
Client Codes:
C -California County
M -California Municipality (City)
S -California Special District or Other Government
T - Texas Municipality (City)
Service Codes:
Al - Audit Under Government Auditing StandardsA2 - Single Audit Act Engagement * Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards A1,A2Al,A2
Al,A2
Al
AlA2
Al A2Al,A2Al,A2
Al
Al,A2Al,A2Al,A2Al,A2Al,A2
Al,A2
Al
Al,A2
Al
Al,A2
AlAl
Al,A2A1,A2
Al, A2A1,A2
A1,A2
Al
City of A va/on
RFP -Professional Auditing Services
Appendix B — Engagement Team Resumes
City of Avalon
LICENSES
&
CERTIFICATIONS
Certified Public Accountant
New York
California
AICPA Advanced
Single Audit Certificate
ENGAGEMENTS
Bay Area Clean Water Agencies
City of Citrus HeightsCity of Diamond Bar
City of DixonCity of Escalon, TDACity of GaitCity of Ingiewood City of Lathrop, TDACity of LodiCity of Lodi, TDA
City of Manhattan BeachCity of Ripon, TDACity of Shafter City of Stockton, TDACity of Tracy, TDACity of Vacavilie City of VallejoCounty of ButteCounty of El DoradoCounty of NevadaCounty of Placer County of Sutter
DSRSD-EBMUD Recycled Water
Authority
East Bay Municipal Utility District
Freeport Regional Water Project
Monterey One Water
Sacramento Transportation AuthoritySan Joaquin COG
San Joaquin Rail Commission, TDA
San Joaquin Transit District, TDA
San Joaquin County, TDAStanisiaus Council of GovernmentsSutter County Upper Mokelumne River Watershed
Authority
RFP - Professional Auditing Services
Christian Townes, CPA, Partner
ENGAGEMENT PARTNER
ACHIEVEMENTS
With over 12 years of experience in public accounting, Christian brings astrong focus on governmental services and auditing, including federal grantcompliance. She has a strong background in navigating the complexities of GASB regulations, ensuring compliance and accuracy in financial processes.
Additionally, she specializes in Single Audit planning and execution and excels in evaluating requirements, including major program determination, audit sampling, and internal control compliance.CONTINUING EDUCATION As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours ingovernmental accounting and auditing in a two-year period. Christian meets the requirements for Government Auditing Standards in governmental CPE.
EXPERIENCEShe has performed all phases of our government audits, including special districts, ACER audits, and Single Audits.
Her work has entailed:
• Assisting in the preparation of the Annual Comprehensive Financial Report
• Performing analytical and substantive audit procedures on account balances
• Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards and the provisions of the Single Audit Act and the Uniform Guidance
• Assisting clients with the preparation and review of GASB related journal entries, including implementation of GASB 87 and 96.
MEMBERSHIPS
AICPA, GFOA, CSMFO
EDUCATION
Bachelor of Science in Accounting with a minor in Economics — The College at Brockport, State University of New York A.S. in Business Administration
— Genesee Community College
City of
A va/on
RFP -Professional Auditina Services
2026 Uovernment Year-End Workshop Series LSL CiA5 - -- UD!I /Ub LSLs GASB Update 2026 LSL CPAS 05/07/2026Excel: Fraud Detection Becker Professional Education 05/01/2026 Power of Positivity Becker Professional Education 05/01/20262026 Government Year-End Workshop Series LSL CPAs 04/21/2026 State Retirement System Update NYGFOA 04/16/2026
NYS Cyber Security Update from DHSES NYGFOA 04/16/20262026 Government Year-End Workshop Series LSL CPAs 04/14/2026 Minority Shareholder Showdowns: Valuations That Hold Up in Court Aicpa 04/14/2026 2026 Government Year-End Workshop Series LSL CPAs 04/02/20262026 Government Year-End Workshop Series LSL CPAs 04/01/2026 Economic Damages: Key Considerations and Trends You Should Know Aicpa 03/24/2026 AICPA Town Hall Series (3/5/2026) Aicpa 03/05/2026
New York Ethics 2024-2026 Becker Professional Education 01/15/2026 AICPA Town Hall Series (1/8/2026) Aicpa 01/08/2026
AICPA Town Hall Series (1/8/2026) Aicpa 01/08/2026
GASBS New Financial Reporting Model Becker Professional Education 12/24/2025 Annual Governmental GAAP Update Encore 11/21/2025
2025 Government Workshop Series LSL CPAs 11/04/20252025 Government Workshop Series LSL CPA5 10/28/20252025 Government Workshop Series LSL CPAs 10/14/20252025 Government Workshop Series LSL CPA5 10/07/2025 2025 Government Workshop Series LSL CPAs 09/23/2025
AICPA GAS-Single Audit Guide: An Overview of Big Changes Coming 09/18/2025 2025 Government Workshop Series LSL CPAs 09/16/2025
2025 Government Workshop Series LSL CPA5 09/09/20252025 Government Workshop Series LSL CPAs 09/09/20252025 Government Workshop Series LSL CPA5 09/02/2025 2025 Government Workshop Series LSL CPA5 09/02/2025
2025 Government Workshop Series LSL CPAs 08/12/2025
2025 Government Workshop Series LSL CPA5 08/12/2025
Quality Management Standards Becker Professional Education 05/13/2025Quality Management Standards Becker Professional Education 05/13/2025Quality Management Standards Becker Professional Education 05/13/2025Single Audit Training - 01/24/2025 LSL CPAs 01/24/2025 Back to Basics I Grants from A-Z LSL CPAs 09/24/2024
Government Year-End Training 8/8/24 (Webinar) LSL CPA5 08/09/2024 Back to Basics: Mastering AR Reconciliations for Year-End LSL CPA5 07/16/2024Back to Basics I Pension & OPEB for Beginners LSL CPA5 07/1 0/2024 Back to Basics I Leases & SBITA Accounting: Year Two & Beyond LSL CPA5 06/18/2024 2023 Yellow Book Update Becker Professional Education 08/22/2023Yellow Book and Single Audit Update - 2023 Becker Professional Education 08/16/20232023 Fraud Update Becker Professional Education 08/11/2023 Annual GASB Update - 2023 Becker Professional Education 08/10/2023 Professional Judgment in Audit Becker Professional Education 08/09/2023 2023 Uniform Guidance Update Becker Professional Education 08/03/20232023 Govt. Year-End Training -Time Management (Level 1) LSL CPAs 06/30/20232023 Govt. Year-End Training -Communication Skills/Audit Documentation (Level 1) LSL CPA5 06/29/20232023 Govt Year-End Training - Financial Statements (Level 2) LSL CPA5 06/29/20232023 Govt Year-End Training -Revenue & Receivables (Level 2) LSL CPA5 06/29/20232023 Govt Year-End Training - People Management (Level 2) LSL CPAs 06/29/20232023 Govt Year-End Training - Payroll (Level 2) LSL CPAs 06/28/20232023 Govt. Year-End Training - GASB 100 LSL CPA5 06/27/20232023 Govt Year-End Training - Expenditures & Payables (Level 2) LSL CPA5 06/27/20232023 Govt. Year-End Training -Year-End Expectations LSL CPA5 06/27/20232023 Govt. Year-End Training - Audit Documentation (Level 2) LSL CPA5 06/27/20232023 Govt. Year-End Training -Basics of Government LSL CPA5 06/26/2023 2023 Govt. Year-End Training - Inventory and YE Expectations LSL CPA5 06/26/20232023 Govt. Lunch & Learn! Long-term Debt LSL CPAs 06/16/20232023 Govt. Lunch & Learn! Cash and Investments LSL CPAs 06/02/2023 2023 GASB Update. The Age of Enlightenment (for finance departments!)_LIVE LSL CPAs 05/04/2023 Statement of Cash Flows Preparation, Presentation, and Use Aicpa 03/27/2023 Financial Instruments and Leases Aicpa 03/23/2023
Current Audit Environment and ASB Activity Aicpa 03/22/2023Yellow Book: Staying Compliant with Government Auditing Standards Aicpa 03/20/2023 Risk Management Techniques and Tools Aicpa 03/16/2023
Contract Accounting and Lease Accounting and Their Impact on Construction Contractors Aicpa 03/14/2023 Auditing Digital Assets Aicpa 03/13/2023
2023 Interim Training - Live Case Study LSL CPA5 03/10/20232023 Interim Training -Assignments and Expectations LSL CPAs 03/10/20232023 Interim Training -Audit Documentation LSL CPA5 03/09/20232023 Interim Training -Basics of Internal Control LSL CPA5 03/09/20232023 Interim Training -Changes Since Re-Engineering LSL CPAs 03/09/20232023 Interim Training - Introduction to Government Audits LSL CPA5 03/09/2023 www.lslcpas.com 30
Christian Townes CPE Records 2023 -Current - Program Sponsor Completed
LICENSES
&
CERTIFICATIONS
Certified Public Accountant
California
Texas
AICPA Advanced
Single Audit Certificate
AUDIT ENGAGEMENTS
City of Agoura Hills, CA
City of Big Bear Lake, CACity of Brea, CA
City of Burbank, CACity of Carlsbad, CACity of Cathedral City, CA City of Chino Hills, CACity of Dana Point, CA
City of Kress, TX
City of La Quinta, CA
City of Lompoc, CACity of Monrovia, CA
City of Moorpark, CA
City of Oceanside, CACity of Orange, CA
City of Palm Desert, CA
City of Rialto, CA
City of Rosemead, CA
City of San Clemente, CA
City of San Juan Capistrano, CACity of Santa Monica, CA Monterey Peninsula Airport District
Orange County Water DistrictOrchard Dale Water District Rainbow Municipal Water District
San Bernardino Muni. Water Dept.
Three Valleys Muni. Water District
United Water Conservation District
Yorba Linda Water District
Ryan Domino, CPA, Partner
CONCURRING PARTNER
MEMBERSHIPS
AICPA, CaICPA, CSMFO, GFOA, GFOAT
EDUCATION
A
City of
A va/on
RFP -Professional Auditing Services
ACHIEVEMENTS
Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA), and has been a presenter for CSMFO’s annual conference and various chapter meetings. He has been involved with teaching current audit and accounting-related material at LSL’s in-house training seminars, and annual GASB Update.
CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimumof 40 hours of continuing education every year, with at least 24 hours ingovernmental accounting and auditing in a two-year period. Ryan meets therequirements for Government Auditing Standards in governmental CPE.
EXPERIENCE
Ryan has over 11 years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, Federal Student Financial Aid audits, and various consulting and agreed-upon procedures projects.
Ryan is one of the firm’s leaders in ensuring audit quality control andGovernment Practice training for staff. He is a regular presenter at the firm’s annual GASB Update where he has presented training to our clients on the latest GASB pronouncements and has been a presenter for CSMFO’s chapter meetings and the annual CSFMO Conference.
Some of his presentations have covered:
• General auditing in accordance with GAGAS• Accounting for capital assets• GASB Statement Nos. 89, 90, 91, 94,100, 101, and 102 • Fraud risks and internal controls
Bachelor of Arts Degree in Business Administration, with an emphasis in Accounting
— California State University, Fullerton
City of Avalon
Book I
-overnment iorkshop Series
5 Government Workshop Series LSL CPAs 10/21/20255 Government Workshop Series LSL CPAs 10/07/2025 5 Government Workshop Series LSL CPAs 09/23/20 255 Government Workshop Series LSL CPA5 09/16/20 25 K to Basics I Uniform Guidance Update Encore Presentation LSL, LLP 09/10/2025 5 Government Workshop Series LSL CPAs 09/09/20255 Government Workshop Series LSL CPAs 09/02/2025 5 GAGAS Training Day 2 LSL, LLP 08/28/20255 Government Workshop Series LSL CPA5 08/26/20255 GAGAS Training Day 1 LSL, LLP 08/27/20255 Government Workshop Series LSL CPA5 08/05/2025 eveloping as a Rainmaker Convergence Coaching 06/23/2025 ack to Basics I GASB 101: Compensated absences LSL, LLP 06/05/2025 The New Psychology of Fraud 2024-2025 Calcpa 05/14/2025 ew Quality Management Standards: Bringing It All Together - Exploring All omponents of a Quality Management System Aicpa 04/24/2025 ew Quality Management Standards: What’s New for Firms Monitoring and Remediation Processes Aicpa 04/17/2025
ingle Audit Training - 01/24/2025 LSL CPAs 01/24/2025
ack to Basics -Capital Assets Crash Course LSL CPAs 09/10/2024ack to Basics I Put the Pieces Together: A Guide to Bank Reconciliations LSL CPAs 08/27/2024 A CPA’s Guidebook to Ethical Behavior: A CPE Ethics Course for Texas CPA5 Becker Professional Education 08/23/2024 vernment Year-End Training 8/8/24 (Webinar) LSL CPA5 08/09/2024 LSL Government Audit, Accounting & Technology (GMT) Update LSL CPAs 05/01/2024 24 Govt. Interim Training -Audit Roadmap LSL CPA5 04/05/2024 2 24 Govt. Interim Training: Internal Control Documentation in Orb LSL CPAs 04/04/2024 A dit Nightmares: Expenses Lumiq 02/13/2024
L CPAs Strategic Planning Boomer Consulting 01/18/2024
signing a Training Program: Setting Goals, Objectives, and Mediums 01/03/2024 y Recipient Roles and Responsibilities in Single Audits Aicpa 12/15/2023 & Assurance Discussion Webinar Primeglobal 10/19/2023
DHCS GAGAS Training Day 2 LSL CPAs 08/31/2023DHCS GAGAS Training Day 1 LSL CPAs 08/30/2023Uniform Guidance Update Becker Professional Education 08/21/2023 wstanding and Applying SAS 142. Audit Evidence Becker Professional Education 07/31/2023 Assessment Under SAS No. 145 Aicpa 07/20/2023
ecting and Managing a Project Portfolio with Microsoft Project 07/18/2023 2023 Govt Lunch & Learn! Writing Good Findings LSL CPAs 07/14/2023 Becoming a Thought Leader 07/13/2023
2023 Govt. Year-End Training - Time Management (Level 1) LSL CPAs 06/30/20232023 Govt. Year-End Training -Financial Statements (Level 2) LSL CPAs 06/29/20232023 Govt. Year-End Training - Payroll (Level 1) LSL CPA5 06/29/20232023 Govt. Year-End Training - Revenue & Receivables (Level 2) LSL CPA5 06/29/20232023 Govt. Year-End Training -Revenue & Receivables (Level 1) LSL CPAs 06/28/20232023 Govt. Year-End Training - GASB 100 LSL CPA5 06/27/2023 2023 Govt. Year-End Training -Year-End Expectations LSL CPA5 06/27/20232023 Govt. Year-End Training - Inventory and YE Expectations LSL CPAs 06/26/2023 Govt. Year-End Training -Basics of Government LSL CPAs 06/26/2023 Govt. Lunch & Learn! Long-term Debt LSL CPA5 06/16/2023 a1 Thinking — The Key to Success in Any Job Becker Professional Education 06/14/2023 0MB Compliance Supplement and Single Audit Update Aicpa 06/13/2023 .B Other Postemployment Benefits (OPEB) Becker Professional Education 06/12/2023 ing Professional Relationships 06/06/2023
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-up and Small Business Financial Statements: Issues and Fraud 2022 Calcpa — GASB Update. The Age of Enlightenment (for finance departmentsl)_LIVE LSL CPAs 05/04/2023 Annual Required GAQC Webcast Aicpa 05/02/2023
ornia Ethics Becker Professional Education 04/26/2023
Interim Training -Assignments and Expectations LSL CPAs 03/10/2023Interim Training - Live Case Study LSL CPA5 03/10/2023Interim Training -Changes Since Re-Engineering LSL CPAs 03/09/2023 Interim Training - Introduction to Government Audits LSL CPAs 03/09/2023Interim Training -Audit Documentation LSL CPAs 03/09/2023Interim Training -Basics of Internal Control LSL CPAs 03/09/2023 Accounting Firm’s System of Quality Control, Part 1 Becker Professional Education 01/16/2023 RFP -Professional Auditing Seniices
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www.lslcpas.com I 32
City of
A valon
RFP -Professional Auditing Services
Riley Greenlee, CPA, Senior Manager
AUDIT MANAGERACHIEVEMENTS
Riley helps our clients prepare and implement their Annual ComprehensiveFinancial Report (ACFR) for the Government Finance Officers Association (GFOA) award. His background is in government and specializes inleveraging technology in accounting and cybercrime. Riley is certified by the AICPA in cybersecurity advisory services. Riley also serves as a technical reviewer for the Government Finance Officers Association (GFOA).
CONTINUING EDUCATION
As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours ingovernmental accounting and auditing in a two-year period. Riley meets the requirements for Government Auditing Standards in governmental CPE.EXPERIENCERiley has over 9 years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, and various consulting and agreed-upon procedures projects.
Riley is a regular presenter for the firm’s webinars. Some of his presentations have covered accounting and auditing for: cash and investments, pensions, OPEB and treasury controls.
His work has entailed:
• Assisting in the preparation of the Annual Comprehensive Financial Report
• Assisting clients with obtaining the GFOA award of excellence for the first time.
• Presentation of audit results to Aduit Committees or other charged with governance.
• Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards and the provisions of the Single Audit Act and the Uniform Guidance
• Risk assessment and evaluation of internal controls with 0050 and Federal Green Book.
• Assisting clients with the implementation of new GASB pronouncements including GASB 68, 75, 84, 87, 96 and 100.
MEMBERSHIPSCaICPA, GFOAEDUCATIONBachelor of Arts Degree in Economics and Accounting — University of California, Santa Barbara
LICENSE
& CERTIFICATIONS
Certified Public Accountant
California
AICPA Cybersecurity Advisory
Services Certificate
AICPA Intermediate
Single Audit Certificate
AICPA Advanced
Single Audit Certificate
ENGAGEMENTS
City of Burbank
City of Santa MonicaCity of RosevilleCity of San Juan Capistrano City of InglewoodCity of MonroviaCity of Dana PointCity of Palm DesertCity of PasadenaCity of RiversideCity of Orange City of CypressCity of LompocCity of BreaCity of Lag una Beach San Bernardino Municipal Water
DepartmentLos Angeles County Development
Agency
Sacramento Transportation Authority
Orange County Fire AuthorityOrange County Water District Accountina & I ecllnoloav (U)
City of Avalon
RFP -Professional Auditing Services
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00k and Single Audit Update 2024 Becker Professional Education 01/24/24 Book Update 2024 Becker Professional Education 01/22/24 ng and Auditing for Going Concern Becker Professional Education 01/04/24 anding and Applying SAS 142: Audit Evidence Becker Professional Education 07/31/23 C vt Lunch & Learn! Writing Good Findings LSL CPA5 07/14/23 Vt. Year-End Training - time Management (Levet 1) LSL CPA5 06/30/23vt. Year-End Training - Financial Statements (Levet 2) LSL CPA5 06/29/23 . Year-End Training -Revenue & Receivables (Level 2) LSL CPA5 06/29/23. Year-End Training - People Management (Level 2) LSL CPAs 06/29/23 G . Year-End Training - Payrolt (Level 2) LSL CPA5 06/28)23 . Year-End Training - GASB 100 LSL CPA5 06/27/23. Year-End Training -Year-End Expectations LSL CPA5 06/27/23 vt Year-End Training - Audit Documentation (Level 2) LSL CPA5 06/27/23 t. Year-End Training - Expenditures & Payables (Level 2) LSL CPA5 06/27/23t. Year-End Training - Inventory and YE Expectations LSL CPA5 06/26/23 . Year-End Training - Basics of Government LSL CPAs 06/26/23 ounty Chapter Meeting Csmfo 06/21/23
Lunch &Learni Long-term Debt
i Cash and Investments
Considerations
B Update - r finance departmental) LIVE
erim Training- Changes Since Re-Engineering
erim Training - Live Case Study LSL CPAs 03/10123erirn Training -Assignments and Expectations LSL CPAs 03/10/23 erim Training -Basics of Internal Control LSL CPAs 03/09123erim Training -Audit Documentation LSL CPAs 03109123 Iroduction to Government Audits
www.lslcpas.com I 34
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: _________ ORIGINATING DEP: Administration CITY MANAGER: ______ PREPARED BY: Jocelyn Francis, Assistant City Manager SUBJECT: Catalina Food Tours Transportation Permit Application RECOMMENDED ACTION: 1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Catalina Food Tours to be added to the existing Residential Vehicle permit to conduct tours with stated conditions.
REPORT SUMMARY: On April 26, 2026 the City received a transportation permit application from Ms. Erin Eubank to conduct guided food tours utilizing one existing Residential Vehicle permit assigned to business partner Simon Alvarez. The existing company is a walking tour and would like to add a transportation component for local restaurants further out from town center.
The proposed Residential Vehicle permit would be used to conduct in-town tours and tours intothe interior as outlined in the map attached between the hours of 9:00 am and 7:00 pm with the primary pick-up and drop-off at the intersection of Metropole and Crescent in the Passenger Loading Zone. Additional drop-off locations include Descanso Beach Club, Buffalo Nickel, Avalon Smokehouse, Sand Trap, and Airport in the Sky (pending approval).
Avalon Municipal Code Section (AMC) §5-14.04 requires a hearing before the City Council to determine whether a transportation permit should be approved ensuring:
• The applicant has presented facts demonstrating a necessity for the requested vehicle(s).• The requested vehicle(s) is appropriate for the intended use and necessary, for the proper functioning of the applicant’s enterprise.
• The requested vehicle(s) will not have a deleterious impact on traffic congestion, traffic safety, noise, or air pollution.
• In view of the size and nature of the streets of the City and the character of the City itself, the requested vehicle(s) will not have a deleterious impact on the public health, safety,and welfare. • There is no more suitable alternative vehicle than the vehicle(s) requested by the applicant that can satisfy its requirements.
If approved by the City Council, staff recommends the applicant must additionally meet the following conditions:
Agree to limit primary pick-up and drop-off locations to the passenger loading zone of Crescent Avenue/Metropole Avenue.
• Agree to limit in-town secondary pick-up and drop-off locations to include Descanso Beach Club, Buffalo Nickel, Avalon Smokehouse, and Sand Trap. • Agree to limit transportation hours to 9:00am to 7:00pm, seven days a week.• Agree to limit vehicle parking to a maximum of 5 minutes to allow for the active loading/unloading of passengers, never leaving the vehicle unattended. • Maintain an active City of Avalon business license.
• Maintain current City of Avalon Residential Vehicle permit.
Maintain current on City of Avalon Admissions Tax payments. • Provide proof of insurance per the Avalon Municipal Code.• Ensure approval from any private entities for private road use if applicable. • Failure to fully comply with any of the foregoing conditions shall result in the revocation of the applicant’s transportation permit.
Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS:
1. Transportation Application
2. Route Map
Transportation Permit
04/26/2026 10:06 PM (PDT)
CITY OF AVALON
1<
Transportation Permit
Business Name Catalina Food Tours
Applicant First Name
Applicant Last Name
Erin
Eubank
Mailing Address
CityState
Zip Code
P0 Box 306
Ava Ion
CA90704
Phone
Email
[email protected]
Business Physical Address
City
State
Zip Code
18 Canyon Terrace Rd.
Avalon
CA90704
Is the business a corporation? No
Nature of Business
Describe the nature of business
(Explain extent, character and
manner in which proposed
operation is to be conducted)
Vehicles to be used
Vehicle Year
We are currently a walking food tour. Wed like to expand our operations tooutside the downtown areas to external parts of town. We’d like to consider venturing into the interior if the Conservancy is amicable as well. Simon Alvarez, my partner, has a personal full-size vehicle sticker that we’d like to use for thisadditional venture. **FQR THE VEHICLE LISTED BELOW: WE HAVEN’T
PURCHASED THE VEHICLE YET BUTARE APPROVED FOR THE LENGTH OF UP TO 215” IN LENGTH. I LISTED THE TYPE OF VEHICLE WE ARE LIKELY TO GET.
Submission ID: l9ebdb28-3894-4d11-bdd6-a39fOIOd8clc Page 1/3 2015
Vehicle Model
TOYOTA
Body TypeSEQUOIA
Vehicle License Number
TBD
Vehicle Capacity
8 Is this vehicle currently permitted in Avalon?
Yes, Residential Vehicle (Blue Sticker)
Proposed Dates/Hours of
Operation
Describe Routes
We could run tours daily, during the day. We are also exploring nighttime options since people are always requesting more nighttime activities.
Potential in Avalon Route could include - Pick up outside of BluewaterAvalon, venture out to Descanso, up to the Sand Trap, either a stop to view the horse stables or up to Avalon Smokehouse up the canyon, over to Buffalo Nickel, go over Mt. Ada for a scenic view and back into town to drop off outside of Bluewater/Fix Beirgarten. Potential Interior Route could include pick up outside of BluewaterAvalon go up to the Airport and back or include doing the loop andreturning for drop outside BluewaterAvalon. Note: Any potential routes in theinterior are subject to Conservancy permitting & approval. We’d like to be available to pick up outside of hotels or vacation rentals.
Route Map
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Submission ID: l9ebdb28-3894-4d11-bdd6-a39fOlOdBclc Page 2/3 Proposed Points of Discharge and Pick-up of Passengers
Proposed Pick-up/Drop-off
Out front of BluewaterAvalon & US Bank near the old Taxi stand.
How will you remit payment? Online via eCheck
(Please note a 3% convenience
fee is assessed on all credit card
payments)
Total Non-Refundable Application Fee Due: $272.00
By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legallybinding contracts, just the same as a hand-written signature.
Signature of Applicant
Submission ID: l9ebdb28-3894-4d11-bdd6-a39(OlOd8clc Page 3/3 r
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CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: _________ ORIGINATING DEP: Administration CITY MANAGER: ______ PREPARED BY: Jocelyn Francis, Assistant City Manager SUBJECT: Roger’s Guided Tours Transportation Permit Application RECOMMENDED ACTION: 1. Receive presentation. 2. Discuss. 3. If consensus is met, approve the Transportation Permit for Roger’s Guided Tours utilizing one existing Residential Autoette permit to conduct tours with stated conditions.
REPORT SUMMARY: On March 31, 2026 the City received a transportation permit application from Mr. Roger Cadman to conduct guided tours utilizing one existing Residential Autoette permit.
The residential Autoette would be used to conduct in-town tours as outlined in the map attached between the hours of 8:00 am and 8:00 pm with pick-up and drop-off at the intersection ofMetropole and Crescent in the Passenger Loading Zone.
I Permit Time I Tour Year Make Type Length Type I Type Capacity Residential 8AM- 2023 Yamaha Cart 130” I I In-Town 6 Autoette 8PM Avalon Municipal Code Section (AMC) §5-14.04 requires a hearing before the City Council to determine whether a transportation permit should be approved ensuring:
• The applicant has presented facts demonstrating a necessity for the requested vehicle(s).• The requested vehicle(s) is appropriate for the intended use and necessary, for the proper functioning of the applicant’s enterprise.
• The requested vehicle(s) will not have a deleterious impact on traffic congestion, traffic safety, noise, or air pollution.
• In view of the size and nature of the streets of the City and the character of the City itself, the requested vehicle(s) will not have a deleterious impact on the public health, safety, and welfare.
• There is no more suitable alternative vehicle than the vehicle(s) requested by the applicant that can satisfy its requirements.
If approved by the City Council, staff recommends the applicant must additionally meet the following conditions:
• Agree to limit pick-up and drop-off locations to the passenger loading zone of Crescent Avenue/Metropole Avenue.
• Agree to limit transportation hours to 8:00am to 8:00pm, seven days a week. • Agree to limit vehicle parking to a maximum of 5 minutes to allow for the active loading/unloading of passengers, never leaving the vehicle unattended. • Maintain an active City of Avalon business license.
• Maintain current City of Avalon Residential Autoette vehicle permit.• Maintain current on City of Avalon Admissions Tax payments.• Provide proof of insurance per the Avalon Municipal Code.• Ensure approval from any private entities for private road use if applicable.• Failure to fully comply with any of the foregoing conditions shall result in the revocation of the applicant’s transportation permit.
Renewals to be evaluated by the Vehicle Clerk to ensure compliance every three years.
FISCAL IMPACTS: None.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENTS:
1. Transportation Application
2. Route Map
Transportation Permit
03/31/2026 4:28 PM (PDT)
CITY OF AVALON
.f.j
Transportation Permit
Business Name Rogers Guided Tours
Applicant First Name RogerApplicant Last Name Cadman
Mailing Address PC Box 1445
City AvalonState California
Zip Code 90704
Phone 31 0-422-8071Email [email protected]
Business Physical Address 304 Descanso AveCity Avalon
State Ca
Zip Code 90704
Is the business a corporation? No
Nature of Business
Describe the nature of business Guided golf cart tour. Roger will pick up people and Show them around town. (Explain extent, character andmanner in which proposed
operation is to be conducted)
Vehicles to be used
Vehicle Year
2023
Vehicle Model
Submission ID: d2eOe2d3-0gb5-4ct7-af44-l442blel3aed Page 1/3 Yamaha 2014
Body Typecc
Vehicle License Number
7CBM409
Vehicle Capacity
6 Is this vehicle currently permitted in Avalon?
Yes, Residential Autoette
Vehicle Year
2023
Vehicle Model
Yamaha 2014
Body Type
GC
Vehicle License Number
7CBM409
Vehicle Capacity
6 Is this vehicle currently permitted in Avalon?
Yes, Residential Autoette
Proposed Dates/Hours of 8a.m.-8p.m. ,7 days a week
Operation
Describe Routes Town to Pebbly Beach to Wrigley Road to town again, at the mole or residence town toAvalon Canyon Rd to Botanical Garden to town again, at the mole or residence,
Town to casino and back again.
Proposed Points of Discharge and Pick-up of Passengers
Proposed Pick-up/Drop-off
Passenger Loading Zone at Crescent/Metropole.
Proposed Pick-up/Drop-off
resident
Submission ID: d2eOe2d3-09b5-4cf7-af44-l442blel3aed Page 2/3 How will you remit payment? Cash/Check by Mail or In Person at City Hall (Please note a 3% convenience
fee is assessed on all credit card
payments)
..Make Check Payable to City of Avalon....
Payment may be made by mail at:
P0 Box 707
Avalon, CA 90704
Payment may be in person at:
410 Avalon Canyon Road
Avalon, CA 90704
Please note, application will not be processed until the application fee is paid.By affixing your signature in the box below, you agree that such signature will be the electronic representation of your signature to be valid and binding upon you for all purposes when you (or your agent) affix below, including on legally binding contracts, just the same as a hand-written signature.
Signature of Applicant
Submission ID: d2eOe2d3-09b5-4ct7-af44-l442blel3aed Page 3/3 sasa4
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CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: 7
ORIGINATING DEP: Public Works CITY MANAGER:
PREPARED BY: Robert Greenlaw, P.E., City Engineer
SUBJECT: Pebbly Beach Road Temporary Turn Around Installation and Traffic Safety Improvements
RECOMMENDED ACTION(S): Approve the plan as presented for modifications and striping along Pebbly Beach Road including installation of k-rail, signage and striping to install a temporary vehicle turn around.
REPORT SUMMARY: Due to construction associated with the Cabrillo Mole RevitalizationProject, the parking and turn around area located at the Cabrillo Mole — approximately 120Pebbly Beach Road — will be eliminated.
To support taxi and tour operations, as well as traffic safety for all vehicles, City Staff propose:
1. Installation of a temporary taxi line that will queue up on the paver walkway on Pebbly Beach Road, adjacent to the sea plane ramp. A temporary 8-foot-wide walkway will be constructed above the ramp adjacent to the payers to serve as the relocated walkwayand loading area. The temporary taxi improvements include construction of a temporary deck, relocating the existing pedestrian guardrail, signing and striping.2. Installation of a vehicle turn around along Pebbly Beach Road, east of the Cabrillo Mole before Lover’s Cove. Improvements include installation/repositioning of k-rail, signage and striping to create a temporary vehicle turn around.
Pebbly Beach Road is frequently used by visitors, large commercial vehicles and residents and is one of two roads that connects town to the industrial area.
Working cooperatively with W-Trans, California Traffic Engineering Consultants, City Staffdeveloped recommendations based on direction from the California Manual on Uniform Traffic Control Devices (MUTCD) as well as engineering judgement, to make recommendations toenhance the safety of the road.
City Staff is seeking approval of the plan by City Council before the installation of the improvements. This is one of the requirements of a design immunity defense.
If approved, the proposed modifications will be installed in September 2026 and will remain in place until the Cabrillo Mole Revitalization Project is completed.
GOAL ALIGNMENT: Traffic safety.
FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: No safety improvements will be made to Wrigley Road.
FOLLOW UP ACTION: Implement City Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: Pursuant to the Brown Act.
ATTACHMENT: Traffic plan.
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490 Mendocino Avenue, Soite 201
— raias Santa Rosa, CA 95401
(707) 542-9500 Fax (707) 542-9590
CITY OF AVALON CITY COUNCIL
MEETING DATE: June 2, 2026 AGENDA ITEM: _________ ORIGINATING DEP: Administration CITY MANAGER: ________ PREPARED BY: David Maistros, City Manager Devin Hart, Senior Management Analyst
SUBJECT: Adult-Use Cannabis DiscussionRECOMMENDED ACTION(S): Provide direction to Staff regarding City Council’s desire topursue legalization of adult-use cannabis in Avalon.REPORT SUMMARY: This item appears on the agenda at the request of a member of the City Council. Over the last several years cannabis has appeared on Council’s agenda for discussion or action on seven occasions.
August 6, 2024: City Council Meeting. Council affirms City Manager’s decision to terminate the existing, but inactive, medical cannabis delivery permit. Discussion held regarding expanding cannabis regulations and accepting applications to re-issue the medical delivery permit.
September 17, 2024: City Council Meeting. City Staff provided a feasibility analysis regarding a store front adult-use facility, the community’s desire/interest in the facility, and projected economic and other impacts
January 21, 2025: City Council Meeting. Council again discusses options for cannabis in Avalon and authorizes staff to resolicit applications for the issuance of the medical cannabis delivery permit.
May 6, 2025: City Council conducts a Public Hearing and adopts a Resolution declaring an intent to award the medical cannabis delivery permit to Catalina Cannabis, [[C.
August 5, 2025: City Council adopted Resolution No. 25-27 issuing a commercial cannabis permit to Catalina Cannabis, LLC for Medical Delivery Business. (On August 19, 2025, City Staff was notified Catalina Cannabis, [[C changed to ERBA Catalina, a California C-corporation.)October 21, 2025: City Council directed City Staff to not pursue legalization of adult use/recreational cannabis in Avalon.
April 21, 2026: City Council heard a presentation from ERBA Catalina — the current medical cannabis delivery business permit holder — regarding adult-use/recreationalcannabis. Representatives of ERBA requested Council’s consideration to amend the current medical delivery ordinance to allow them to also deliver adult-use recreational cannabis. Because the electorate has never approved adult-use recreational deliveryand therefore there is no provision for a tax, ERBA proposed a development agreement with the City offering payment of five percent (5%) of their gross receipts. City Councildirected City Staff to bring an item back for further discussion and consideration.
Development of Local Cannabis Regulations and Public Interest in Adult-Use Cannabis After the establishment of state-wide legislation regarding cannabis, acting in accordance with its local jurisdictional authority under MAUCRSA, the Avalon City Council began the process to develop its local ordinance. After discussions and code revisions at four City Council meetings, the current cannabis ordinance (Ordinance #1163-17, Chapter 5-20 of the AMC) was adopted on November 7, 2017.
In development of Ordinance #1163-17, the City Council worked to provide a means for public access to medical cannabis by supporting a medical cannabis business delivery process, while protecting the City’s neighborhoods, residents and businesses from potential negative impacts.
Additionally, the City Council took steps to minimize the potential impact of cannabis business in Avalon by: - Requiring any medical cannabis delivery service business to locate their brick-andmortar place of business within the City’s commercial or special commercial zones. - Prohibiting signage on the exterior of the brick-and-mortar facility identifying it as a commercial cannabis business. - Requiring extensive odor control devices and techniques be implemented. - Requiring extensive security measures including 24-hour video surveillance, and uniformed personnel on site. - Limiting medical cannabis delivery services permits to just one in the first year of operation.
At the request of the City Council, the City of Avalon added two advisory measures to the March 3, 2020 General Municipal Election ballot.Measure E asked: “Should the City of Avalon expand its current commercial cannabis ordinance from medical delivery only to allow for adult-use/recreational delivery sales within the City of Avalon city limits?” - 58.45% or 612 voters voted “No” against expansion of the ordinance to allow adult use/recreational delivery.
- 41 .55% or 435 voters voted “Yes” in favor of expansion of the ordinance to allow adult use/recreational delivery.
Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance to allow for a cannabis storefront location or dispensary within the City of Avalon city limits?”
- 65.14% or 682 voters voted “No” against expansion of the ordnance to allow a cannabis storefront.
- 34.86% or 365 voters voted “Yes” in favor of expansion of the ordinance to allow for a cannabis storefront.
Since the advisory measures, City Staff have not received any significant request or call for expansion of the cannabis ordinance from the public at large. Additionally, the medicalcannabis delivery permit was suspended from September 2021 to 2025. During that timeperiod, City Staff did not receive any significant inquiries, or requests from the community at large for the return of medical cannabis.
Options to Pursue Legalization of Adult-Use Cannabis
1. Direct City Staff to Place a Measure on the November 3, 2026 General Election as either an advisory measure or final consideration.
For example, Measure E and Measure F were both Advisory Measures that provided a clear direction at the time that the residents were not in favor of either recreational delivery orstorefront dispensary. In reliance on the results of these two advisory measures, City Councildid not pursue either path.
Additionally, on November 8, 2016, a citizen referendum was placed on a Special Election for the consideration of Measure X. Measure X asked: “Shall the Avalon Municipal Code be amended to permit up to two medical marijuana dispensaries and similar facilities, both fixedand mobile, operate within the City, and to permit the cultivation, manufacture and processingof medical marijuana products, subject to specified standards, and further subject to a $10,000annual license tax and a 12% transaction fee/tax on each individual medical marijuana sale until repealed by voters, and generating approximately $200,000 annually?” - 63% or 721 voted “No”. - 36% or 421 voted “Yes”.
City Council may request an advisory measure to appear on a ballot as was done in 2020, or for a ballot measure enacting the proposed changes to the Avalon Municipal Code and establishing a tax as was done in 2016.
The deadline for a local jurisdictional ballot measure to appear on the November 3, 2026 General Election ballot — either by citizen referendum or City Council direction — is August 7, 2026.
Additionally, even if a ballot measure is approved, it is not clear that Council would be authorized to award a newly created recreational adult-use permit to the previously existing medical delivery permit holder or open the new permit up for applications.
2. Amend the Avalon Municipal Code and Direct City Staff and City Attorney to Draft a Development Agreement with the Existing Permit Holder
ERBA has proposed City Council amend Chapter 5-20 of the AMC to allow for adultuse/recreational cannabis delivery and enter into a development agreement setting forth a 5% fee of all of ERBA’s gross sales to be remitted to the City annually.
The City Council may amend the AMC; and a fee could be established through a development agreement. Setting a fee via a development agreement creates more risk to the City than a voter approved tax/fee. The State of California Government Code Section 66000-66008establishes rules for how local agencies can establish, set, and use fees. An established feeshould reflect cost of services or the direct impact to offset use of public facilities. While a feeagreed upon through the negotiation of a development agreement is defensible, it imposes more risk than a voter approved tax/fee.Further, if the AMC is amended to allow recreational cannabis delivery, the City Council may want allow competition for such a vendor rather than extending the use to the current operator of the medical delivery service.
An additional consideration is whether modifying the AMC and entering into a DevelopmentAgreement fee would subject the City Council to arguments that it is circumventing the prior voter decisions to reject the expansion of cannabis in Avalon as reflected in the previous ballot measures.
FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Unknown.
FOLLOW UP ACTION: Implement Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.
ATTACHMENTS: September 17, 2024 Staff Report.
CITY OF AVALON CITY COUNCIL
MEETING DATE: September 17, 2024 AGENDA ITEM:
ORIGINATING DEP: Administration CITY MANAGER:
PREPARED BY: Devin Hart, Management Analyst
SUBJECT: Adult Use Cannabis Feasibility Discussion
RECOMMENDED ACTION(S): Hear presentation. If consensus is reached, provide direction to Staff.
REPORT SUMMARY: A member of the City Council requested City Staff bring a report before the City Council considering expansion of the Avalon Municipal Code to include Adult-Use Cannabis. Specifically, the Councilmember requested Staff research and provide an analysis regarding a store front adult-use facility, the community’s desire/interest in the facility, and projected economic and other impacts.
Legal Framework
Though the use of medical cannabis was legalized in the State of California in 1996, adult-use or recreational cannabis was prohibited until adoption of Proposition 64 on November 8, 2016.
On June 27, 2017, Governor Jerry Brown signed into law a single comprehensive legislative document that took the existing regulatory framework established for medical cannabis and incorporated non-medical cannabis regulations. This legislation is known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The legislation specifically preserved local jurisdictional authority to adopt and enforce local ordinances that limit or completely prohibit the establishment or operation of medical and non-medical cannabis business operations within their purview. The state licensing authority will not approve an application for a state cannabis business license if the state license will violate a local ordinance in the jurisdiction it will operate.
The Department of Cannabis Control Medicinal and Adult-Use Commercial Cannabis Regulations — California Code of Regulations Title 4 Division 19 Section §15311, Requirements for the Transportation of Cannabis and Cannabis Products” — establishes the requirements for transporting cannabis and cannabis products between licensees or licensedpremises.
Though regulation §153111 (e) expressly prohibits transportation of cannabis and cannabis products “by means of aircraft, watercraft, drone, rail, human-powered vehicle, or unstaffed vehicle,” a carve out exits for Catalina within Section (p):
Notwithstanding subsection (e), transportation of cannabis and cannabis products maybe conducted via watetway to licensees located on Catalina Island. The provisions ofthis section and other sections regarding vehicle requirements also apply to vessels used to transport cannabis and cannabis products via watetway pursuant to this section.
Cannabis is an illegal substance under the Federal Controlled Substances Act, 21 USC et. seq., (Act”) which makes it unlawful for any person to cultivate, manufacture, distribute ordispense, or possess with intent to manufacture, distribute or dispense cannabis. The Act does not contain any exemption for cannabis used for medical purposes. Additionally, per federallaw, cannabis is listed as a Schedule 1 drug. Federal penalties for possession of cannabis include:
- First Offense — Misdemeanor with potential for up to one year of incarceration and $1 000 in fines.
- Second Offense — Misdemeanor punishable by 15 days to two years of incarceration and $2,500 in fines.
- Third and subsequent Offenses — Misdemeanor or felony punishable by 90 days to 3 years of incarceration and fines up to $2,500.
Federal penalties increase significantly for selling or attempting to sell cannabis based on the amount:
- Less than 50 kilograms — Felony punishable by up to five years in prison and a $250,000 fine
- 50 to 99 kilograms — Felony punishable by up to 20 years in prison and fines of up to $1,000,000. - 100 to 999 kilograms — Felony punishable by five to 40 years in prison and possible fines of up to $2,000,000. - 1000 kg and up — Felony punishable by ten years to life in prison and $4,000,000 infines.
However, it should be noted, federal law enforcement agencies have issued guidelines allowing for state regulatory policies that include cannabis for medical purposes. Specifically, the Rohrabaher-Farr Amendment, first introduced to the U.S. House of Representatives in 2001 and adopted in an omnibus spending bill in December 2014, prohibits the U.S. Justice Department from spending any funds on actions designed to interfere with the state medical cannabis laws. To date, this provision has been included in every subsequent spending bill.
Rohrabacher-Farr Amendment states:
None of the funds made available in this Act to the Department ofJustice may be used, with respect to the States of Alabama, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kentucky, Maine, Maiyland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Washington, and Wisconsin, to prevent such States from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.
The Rohrabacher-Farr Amendment is vitally important for the City of Avalon’s medical cannabis program as the surrounding Pacific Ocean falls within the jurisdictional authority of the United States Coast Guard (‘USCG”).The City has received reports of medical cannabis delivery vessels being boarded by USCG.
As the vessel, medical cannabis and medical cannabis products have had all of the required documentation for certified medical use, no action was taken by the USCG. The Harbormastercontacted the USCG who confirmed, adult-use cannabis transportation in federal waterways is illegal.
Though, state regulation §153111 (p) does not distinguish between medical or adult-usecannabis in is regulatory carve out for Catalina Island, the Rohrabacher-Farr Amendment is specific in its guidance to restrict funding for interference with State permitted medicalcannabis operations. No federal protections, exemptions or guidelines exist for adultuse/recreational cannabis. When state law and federal law conflict, federal law displaces or preempts state law. Therefore, City Staff interpret there is no viable way to transport adult-use cannabis to Catalina Island without violating federal law (transportation of a controlledsubstance) and/or risking the federal penalties as described within this report.
The Department of Justice has proposed a rule change to move cannabis from Schedule I to Schedule Ill controlled substance. The rule change emphasizes the currently accepted medical use of cannabis, but, again, does not address adult use. If the rule change occurs, transportation of cannabis across federal waterways will still be prohibited.
Development of Local Cannabis Regulations and Public Interest in Adult-Use Cannabis After the establishment of state-wide legislation regarding cannabis, acting in accordance with its local jurisdictional authority under MAUCRSA, the Avalon City Council began the process to develop its local ordinance. After discussions and code revisions at four City Council meetings, the current cannabis ordinance (Ordinance #1163-17, Chapter 5-20 of the AMC) was adopted on November 7, 2017.
In development of Ordinance #1163-17, the City Council worked to provide a means for public access to medical cannabis by supporting a medical cannabis business delivery process, while protecting the City’s neighborhoods, residents and businesses from potential negative impacts.
Additionally, the City Council took steps to minimize the potential impact of cannabis business in Avalon by: - Requiring any medical cannabis delivery service business to locate their brick and mortar place of business within the City’s commercial or special commercial zones. - Prohibiting signage on the exterior of the brick and mortar facility identifying it as a commercial cannabis business.
- Requiring extensive odor control devices and techniques be implemented.- Requiring extensive security measures including 24 hour video surveillance, and uniformed personnel on site. - Limiting medical cannabis delivery services permits to just one in the first year of operation.
At the request of the City Council, the City of Avalon added two advisory measures to the March 3, 2020 General Municipal Election ballot.
Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance from medical delivery only to allow for adult-use/recreational delivery sales within the City of Avalon city limits?” - 58.45% or 612 voters voted “No” against expansion of the ordinance to allow adultuse/recreational delivery. - 41 .55% or 435 voters voted “Yes” in favor of expansion of the ordinance to allow adultuse/recreational delivery.
Measure F asked: “Should the City of Avalon expand its current commercial cannabis ordinance to allow for a cannabis storefront location or dispensary within the City of Avalon city limits?”
- 65.14% or 682 voters voted “No” against expansion of the ordnance to allow a cannabis storefront.
- 34.86% or 365 voters voted “Yes” in favor of expansion of the ordinance to allow for a cannabis storefront.
Since the advisory measures, City Staff have not received any request or call from expansion of the cannabis ordinance from the public at large. Additionally, the medical cannabis delivery permit was suspended in September 2021. From that time to date City Staff have not received any inquiries, outcry or requests from the community at large for medical cannabis.Community and Economic Impact To accurately determine the potential economic impact of expansion of the City’s cannabis ordinance, a number of factors must be determined, including: - Federal regulations regarding transport adult-use cannabis to the Island. - Type of commercial cannabis facility -storefront dispensary vs adult-use delivery. - Locations for consumption. (Currently, smoking cannabis is prohibited in public places.) This is a significant factor to determine as approximately 75% of the Island’s visitors are day trippers or from a cruise ship. These visitors would be limited in their options if they wanted to consume the product while in the City.
- Geographic isolation. - Locations for brick-and-mortar commercial cannabis facilities. With limited properties, limited pool of property owners and currently no known vacancies in the City’s commercial and special commercial zones, finding an appropriate location may bedifficult. - Additional cost of enhanced enforcement and additional administrative support to manage commercial cannabis regulations as well as additional enforcement forregulation of illicit cannabis market. - Rate of taxation. Adult-use cannabis and cannabis products are subject to sales tax. In addition, the state requires a 15% excise tax on cannabis sale gross receipts to supportenvironmental cleanup, law enforcement and drug prevention programs. The City isable to add an additional local cannabis business tax not to exceed 15%. However, the rate of tax may be prohibitive to creating a thriving legal, commercial cannabis market. - Other visitor driven revenue areas that may be impacted by an expanded cannabis ordinance. Further, any City imposed cannabis tax would have to be approved by the voters.
Not accounting for the above-listed factors, City Staff conducted a survey of California cities to provide some framework to understand and project potential cannabis revenues for Avalon.
The City’s Staff typically look to for comparison — Monterrey, Morro Bay, Solvang, Oceanside, Redondo Beach, Manhattan Beach, Del Mar — prohibit all cannabis operations in their jurisdictions. Therefore, Staff determined the cities of Santa Barbara, Napa, West Hollywood, and South Lake Tahoe, may be the best comparable cities due to their size, visitor driven economy, etc.City of Santa Barbara
- Population: 87,533 Annual Visitors: 6.5 million- Approximate size: 43.09 square miles - Limit of 3 Retail Storefront Commercial Cannabis Businesses- Per Capita Cannabis Sales: $61.77 - Local Cannabis Business Tax: 6%- Taxable Revenue Cannabis: $21,065,247 Total Local Taxes: $1,265,714.82- Taxable Revenue — Food Services and Drinking Places: $568,980,534 City of Napa
- Population: 78,315 Annual Visitors: 3.7 million- Approximate size: 18.1 square miles- Currently 9 Retail Storefront Commercial Cannabis Businesses, with no cap on number of storefronts.
- Per Capita Cannabis Sales: $54.53- Local Cannabis Business Tax: 0%- Taxable Revenue — Cannabis: $16,813,458.00 Total Local Taxes: $0 - Taxable Revenue— Food Services and Drinking Places: $352,100,181 City of West Hollywood
- Population: 34,514 Annual Visitors: 22 million - Approximate size: 1 .9 square miles- No limit. Currently more than 70 Commercial Cannabis Businesses including adult-use, medical, consumption areas for smoking, vaping and edibles, consumption areas for edibles only, and delivery services. - Per Capita Cannabis Sales: $183.22 - Local Cannabis Business Tax: 7.5%
-• Taxable Revenue — Cannabis: $25,818,717 Total Taxes: $1,936,403.78 - Taxable Revenue — Food Services and Drinking Places: $604,883,880 City of South Lake Tahoe
- Population: 21,175 Annual Visitors: 15 million- Approximate size: 16.6 square miles - Limit of 3 Retail Storefront Commercial Cannabis Businesses.- Per Capita Cannabis Sales (2023): $201.47 - Local Business Tax: 6%
- Taxable Revenue: $16,684,269 Total Taxes: $1,001 ,O560O - Taxable Revenue — Food Services and Drinking Places: $174,879,862 City of Avalon
- Population: 4,000 Annual Visitors: 1 million
- Approximate size: 2.9 square miles- Commercial cannabis businesses TBD- Taxable Revenue — Food Services and Drinking Places: $48,041 561 Revenue Analysis #1 — Food and Beverage Sales Comparison City Staff compared the taxable revenue from Adult-Use Cannabis to the taxable revenue fromFood Services and Drinking Places for the selected cities to estimate the amount of taxablerevenue that could be generated from Adult-Use Cannabis sales in Avalon. For calendar year 2023, businesses in the City reported $48 million in taxable sales from Food Services and Drinking Places. For the cities selected above, taxable sales from Adult-Use Cannabis ranged from 3.7 % to 9.5% of the taxable sales generated from Food Services and Drinking Places inthe same city. Santa Barbara, Napa, and West Hollywood ranged from 3.7% to 4.8%; whereas South Lake Tahoe appears to be an outlier at 9.5%. This is likely due to increased sales activity resulting from its proximity to Nevada, which did not legalize Adult-Use Cannabis untilJanuary 2024. Using 5.0% as the basis of estimate-, Avalon would generate an estimated $2.4 million in taxable sales from Adult-Use Cannabis. Depending on the tax rate, Adult-UseCannabis could generate the following revenue (not accounting for the increased administrative and code enforcement costs):
Tax Rate Potential Revenue
5% $120,000
10% $240,000
15% $360,000
Revenue Analysis #2 — Per Capita Sales Comparison
Statewide, the per capita average in cannabis purchases is $158.00. In an attempt to providean accurate estimate of the City’s per capita potential, Staff took the daily average of 1 millionannual visitors — 2,700 — and added it to the rounded up number of residents — 4,000. Staff rounded up again to the nearest thousand 7,000.
City Per Capita Sales Estimated Avalon Sales
Santa Barbara $61.77 $432,390
Napa $54.53 $$381,710
West Hollywood $183.22 $1,282,540
South Lake Tahoe $201 .47 $1 41 0,290
Statewide Average $158.00 $1 106,000
Twice Statewide Average $316.00 $2,212,000
Revenue Analysis # 3 — Annual Cannabis Sales to Achieve Tax Revenue Benchmarks:
Cannabis Sales 5% Tax Rate 10% Tax Rate 15% Tax Rate - $1,000,000.00 $50,000.00 $100,000.00 $150,000.00 $5,000,000.00 $250,000.00 $500,000.00 $750,000.00
$10,000,000.00 $500,000.00 $1 000,000.00 $1,500,000.00$18,000,000.00 $900,000.00 $1 800,000.00 $2,700,000.00 FISCAL IMPACTS: Undetermined.
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: Unknown.
FOLLOW UP ACTION: Implement Council direction.
ADVERTISING, NOTICE AND PUBLIC CONTACT: This item was properly listed on the posted agenda in compliance with the Brown Act.
ATTACHMENTS:
- State list of cities participating in cannabis business. - Avalon Municipal Code — Chapter 5-20