Agenda Report
Fullerton City Council
MEETING DATE: october 18, 2022
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: Ellis chang, director of administrative services PREPARED BY: TONI SMART, FISCAL SERVICES MANAGER
cinndy barrios, budget analyst ii
SUBJECT: professional services agreement extension with lance, soll & lunghard (LSL) FOR AUDITING SERVICES
SUMMARY
City Council consideration of Amendment Two to the Professional Services Agreement (PSA) with Lance, Soll & Lunghard (LSL) for auditing services to extend the PSA for an additional three years, through completion of audit services for Fiscal Year (FY) 2025-26.
RECOMMENDATION
Authorize City Manager, or designee, to execute and administer Amendment Two, in a form approved by the City Attorney, to extend the professional services agreement with Lance, Soll & Lunghard (LSL) LLP, for three additional years through FY 2025-26, for financial auditing services.
CITY MANAGER REMARKS
The City Manager requests a three-year extension due to a variety of ongoing projects including implementation of Tyler Technologies software.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statements:
Fiscal and Organizational Stability.
FISCAL IMPACT
This item generates no fiscal impact to the FY 2022-23 budget, as the adopted budget includes auditing services. The FY 2023-24 and subsequent year budgets will incorporate the audit services cost. The cost for auditing services for FY 2023-24 totals 7% or $4,960 greater than FY 2022-23 costs. High inflation and on current market trends generated the 7% increase. The following two years, FY 2024-25 and FY 2025-26, have a 3% increase annually, which aligns with the current agreement.
DISCUSSION
The City of Fullerton entered into a professional services agreement (PSA) with Lance, Soll & Lunghard (LSL) for auditing services on June 4, 2019. The contract will expire upon completion of audit services for the 2022-23 fiscal year. Amendment Two would extend the PSA for an additional three years, through completion of audit services for FY 2025-26.
LSL is the largest accounting firm headquartered in Orange County, California. LSL has acquired extensive knowledge of the City organization over the previous audit years. LSL’s familiarity with City operations and processes allows for efficient continuity of required audit services. LSL will rotate the audit partner in FY 2023-24 to provide audit objectivity and independence with a new perspective.
The City seeks an extension of its term with LSL in lieu of a Request for Proposals (RFP) for an additional three years through March 31, 2027, due to numerous ongoing projects overseen by the Fiscal Services division, such as the ONES Phase II and Tyler Technologies billing and cashiering implementation. The extension will ensure the City meets its required annual audit services. The City intends to bid for auditing services in FY 2025-26, before the expiration of Amendment Two.
Attachments:
Attachment 1 – Amendment Two to LSL Agreement
Attachment 2 – Original LSL Agreement and Amendment One cc: City Manager Eric J. Levitt
PSA Extension with Lance, Soll & Lunghard (LSL)
October 18, 2022 - Page 2