ADMINISTRATIVE REPORT
MEETING DATE: May 13, 2026 AGENDA CATEGORY: Consent Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: April 30, 2026
SUBJECT: Agreement with LSL, LLP (not to exceed $106,630)
For a full scope annual audit for Fiscal Year 2024-25.
RECOMMENDATION:
Staff recommends approval of the agreement
BACKGROUND:
In March 2026, a request for proposals for auditing services was posted on the City’s online vendor and bid management system. A number for audit firms showed an interest in the process with seven firms submitting proposals. These proposals were reviewed and ranked by Finance Department staff and then staff interviewed the top three firms. While all three firms met the experience requirements to perform the City’s audit, the firm with the best combination of experience and pricing was the proposal submitted by LSL, LLP. The firm has a strong background performing audits for larger municipalities in California and across the nation.
The request for proposal issued by the City contemplated a three-year commitment with the selected firm, with Fiscal Year 2024-25 being the first year. The first t wo years are established at the same fixed rate, and the third year proposed a 3% increase for Fiscal Year 2026 -27. That said, this agreement only covers the 1st year of service proposed (FY 2024-25.)
FISCAL IMPACT:
The cost is budgeted as a “non -departmental” line item in the General Fund. A small portion of costs are charged to the PSVS fund for the annual compliance review and the Wastewater Enterprise Fund regarding a compliance review letter associated with the Sub-Regional Wastewater / User Agency agreement.
COUNCIL GOAL:
Innovative and Efficient City Government
ATTACHMENTS:
Agreement (including firm’s service proposal, cost proposal, and City request for proposal)