Agenda packet — Lawndale City Council, April 7, 2025 (part 2 of 2)

Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements:
x We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP.
x We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP.
x The methods of measurement or presentation have not changed from those used in the prior period.
x We believe the significant assumptions or interpretations underlying the measurement or presentation of the required supplementary information, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances.

Rogers, Anderson, Malody & Scott, LLP
Accounting Estimates and Related Disclosures
x The significant judgments made in making the accounting estimates have taken into account all relevant information of which we are aware.
x We have consistently and appropriately selected and applied methods, assumptions, and data when making accounting estimates.
x The assumptions we used in making and disclosing accounting estimates appropriately reflect our intent and ability to carry out specific courses of action on behalf of the entity, when relevant to the accounting estimates and disclosures.
x The disclosures related to accounting estimates, including those disclosures describing estimation uncertainty, are complete and are reasonable in the context of the applicable financial reporting framework.
x We have obtained and applied appropriate specialized skills and expertise in making accounting estimates.
x We are not aware of any events subsequent to the date of the financial statements that require adjustment to our accounting estimates and related disclosures included in the financial statements.

Hrant Manuelian, CPA
Director of Finance/ City Treasurer

ATTACHMENT D
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)

MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
Anny Gonzalez, CPA

MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
Independent Accountant’s Report
To the Honorable City Council
City of Lawndale
Lawndale, California
We have performed the procedures enumerated below (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) on the accompanying Appropriations Limit Worksheet for the year ended June 30, 2024. The City of Lawndale’s (the City) management is responsible for the accompanying Appropriations Limit Worksheet for the year ended June 30, 2024.

The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the City in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities has agreed to and acknowledged that the procedures performed are appropriate to meet for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the completed worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the
population and inflation options included in the aforementioned documents to those that were selected by a recorded vote of the City Council.

Finding: No exceptions were noted as a result of our
procedures.

2. For the accompanying Appropriations Limit Worksheet, we added last year’s limit to total adjustments and agreed the resulting amount to this year’s limit.

Finding: No exceptions were noted as a result of our
procedures.
-2-

3. We agreed the current year information presented in the accompanying Appropriations Limit Worksheet to the other documents referenced in number one above.

Finding: No exceptions were noted as a result of our procedures.

4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet to the prior year appropriations limit adopted by the City Council during the prior year.

Finding: No exceptions were noted as a result of our procedures.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the AICPA.

We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on accompanying Appropriations Limit Worksheet for the year ended June 30, 2024. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City of Lawndale, California, and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.

San Bernardino, California
March 19, 2025
-3-

FISCAL YEAR
2023 - 2024
Change in California Per Capita Personal Income 4.44%
Change in the Population for the
City of Lawndale -0.93%
Change in California Per Capita Personal Income
Converted to a Ratio 1.044400
Change in City of Lawndale Population
Converted to a Ratio 0.990700
Calculation of Growth Factor (1.044400 x 0.990700) 1.034687 Fiscal Year 2022 - 2023 Limit 40,377,453 $
Fiscal Year 2023 - 2024 Limit
($40,377,453 x 1.034687) 41,778,029 $
Appropriations limit per resolution 41,778,029 $

APPROPRIATION LIMIT WORKSHEET

CITY OF LAWNDALE

ATTACHMENT E
735 E. Carnegie Dr. Suite I 00
San Bernardino. CA 92408
909 889 0871 T
909 889 5361 F
ramscpa. net

ROGERS, ANDERSON , MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STABILITY. ACCURACY. TRUST.
-1-
REPORT ON COMPLIANCE FOR THE U.S. DEPARTMENT OF

TREASURY CORONAVIRUS STATE AND LOCAL FISCAL

RECOVERY FUNDS PROGRAM (CSLFRF) REQUIREMENTS FOR

AN ALTERNATIVE CSLFRF

COMPLIANCE EXAMINATION ENGAGEMENT
Independent Accountant’s Report
To the Honorable City Council
City of Lawndale, California
We have examined City of Lawndale’s (the City) compliance with the compliance requirements “activities allowed or unallowed” and “allowable cost/cost principles” (the specified requirements) as described in Part IV “Requirements for an Alternative Compliance Examination Engagement for Recipients That Would Otherwise be Required to Undergo a Single Audit or Program-Specific Audit as a Result of Receiving Coronavirus State and Local Fiscal Recovery Funds” of the CSLFRF section of the 2024 OMB Compliance Supplement (referred to herein as “Requirements for an Alternative CSLFRF Compliance Examination Engagement”) during the year ended June 30, 2024. Management of the City is responsible for the City’s compliance with the specified requirements. Our responsibility is to express an opinion on the City’s compliance with the specified requirements based on our examination.

Our examination was conducted in accordance with attestation standards established by the AICPA; the standards applicable to attestation engagements contained in Government Auditing Standards, issued by the Comptroller General of the United States; and in the “Requirements for an Alternative CSLFRF Compliance Examination Engagement.” Those standards and requirements require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. -2-
We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement.

Our examination does not provide a legal determination on the City’s compliance with specified requirements.

In our opinion, the City complied, in all material respects, with the specified requirements referenced above during the year ended June 30, 2024.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we are required to report all deficiencies that are considered to be significant deficiencies or material weaknesses in internal control; fraud, and noncompliance with provisions of laws, regulations, contracts or grant agreements that have a material effect on the City’s compliance with the specified requirements and any other instances that warrant the attention of those charged with governance. We are also required to obtain and report the views of responsible officials concerning the findings, conclusions, and recommendations, as well as any planned corrective actions. We performed our examination to express an opinion on the City’s compliance with the specified requirements and not for the purpose of expressing an opinion on the internal control over the specified requirements or on compliance and other matters; accordingly, we express no such opinions. The results of our tests disclosed no matters that are required to be reported under Government Auditing Standards.

Intended Purpose
The purpose of this examination report is solely to express an opinion on whether the City complied, in all material respects with the specified requirements referenced above during the year ended June 30, 2024. Accordingly, this report is not suitable for any other purpose.

San Bernardino, California
March 6, 2025

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: April 7, 2025
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Hrant Manuelian, Finance Director/City Treasurer SUBJECT: Award of Professional Auditing Services Contract

BACKGROUND
We are currently in our 5
th and final year of the current audit contract. To ensure independence and competitive practice, a Request for Proposal (RFP) for Professional Auditing Services was issued on February 27, 2025, to solicit a qualified public accounting firm to audit the City of Lawndale financial statements for the fiscal year ending June 30, 2025, and four subsequent fiscal years thereafter. The scope of work including auditing the financial statements of the City, auditing the Schedule of Expenditures of Federal Awards (SEFA), if the annual expenditure exceeds the $750,000 audit threshold to perform a Single Audit; and optional services to perform a Transient Occupancy Tax audit. The RFP was e-mailed directly to six certified public accounting firms known to perform audits of local governments and was published in the City’s website. Two firms responded timely to the proposal: The Pun Group, and Rogers Anderson Malody and Scott, LLP. Also, one firm (Badawi & Associates) responded that they would not be submitting a proposal due to having a full schedule.

STAFF REVIEW
The two submitted proposals were evaluated based on understanding of the scope of work and time period for audit performance, experience and knowledge of engagement team and firm, specific experience in auditing Federal and State assistance programs, grants and proposed cost. Both firms demonstrated an understanding of the scope of work and knowledge of the time requirement to perform audits. The two firms specialize in auditing governments entities with extensive technical knowledge. Rogers Anderson Malody and Scott, LLP, are our current auditor and also came in with the lowest bid, therefore they are recommended for the audit contract award.

LEGAL REVIEW
The City Attorney’s office has reviewed this staff report and has approved it as to form.

FISCAL IMPACT
The cost of the audit services will be budgeted annually.

RECOMMENDATION
Staff recommend that the City Council approve the Contract Services Agreement for Professional Auditing Services with Rogers Anderson Malody and Scott, LLP and authorize the Mayor to execute the agreement on behalf of the City.

Attachments
A. Audit Agreement FY 25.pdf
B. RAMS FY 25 Proposal.pdf
C. The Pun Group LLP.pdf
D. Maze & Associates.pdf

ATTACHMENT A
01001.0001/50590.5

CITY OF LAWNDALE

CONTRACT SERVICES AGREEMENT FOR

PROFESSIONAL AUDITING SERVICES
This Contract Services Agreement ("Agreement") is made and entered into this 7th day of April, 2025, by and between the City of Lawndale, a municipal corporation ("City"), and Rogers, Anderson, Malody & Scott, LLP ("Consultant"). The term Consultant includes professionals performing in a consulting capacity. The parties hereto agree as follows:

1.0 SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide the work and services specified in the "Scope of Services" attached hereto as Exhibit "A" and incorporated herein by this reference. Consultant warrants that all work or services set forth in the Scope of Services will be performed in a competent, professional and satisfactory manner.

1.2 Consultant's Proposal. The Scope of Services shall include the Consultant's proposal or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having jurisdiction.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense, such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments, taxes, including applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant's performance of the services required by this Agreement; and shall indemnify, defend and hold harmless City against any claim for such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant (a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the work and services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement.

1.6 Additional Services. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
2 in compensation must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor.

1.7 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the "Special Requirements" attached hereto as Exhibit "B" and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit "B" and any other provisions of this Agreement, the provisions of Exhibit "B" shall govern.

1.8 Environmental Laws. Consultant shall comply with all applicable environmental laws, ordinances, codes and regulations of Federal, State, and local governments. Consultant shall also comply with all applicable mandatory standards and policies relating to energy efficiency.

2.0 COMPENSATION

2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of two hundred fifty-nine thousand, six hundred thirty dollars ($259,630) ("Contract Sum"), except as provided in Section 1.6. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with the percentage of completion of the services, (iii) payment for time and materials based upon the Consultant's rates as specified in the Schedule of Compensation, but not exceeding the Contract Sum or (iv) such other methods as may be specified in the Schedule of Compensation. Compensation may include reimbursement for actual and necessary expenditures approved by the Contract Officer in advance if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City.

Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

2.2 Method of Payment. Unless some other method of payment is specified in the Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first (1st) working day of such month, Consultant shall submit to the City, in a form approved by the City's Director of Finance, an invoice for services rendered prior to the date of the invoice. Except as provided in Section 7.2, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and no later than forty-five (45) days, from the submission of an invoice in an approved form.

2.3 Availability of Funds. It is mutually understood between the parties that this Agreement is valid and enforceable only if sufficient funds are made available by the City Council of the City for the purposes of this Agreement. The availability of funding is affected by matters outside 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
3 the City’s control, including other governmental entities. Accordingly, the City has the option to void the whole Agreement or to amend the Agreement to reflect unanticipated reduction in funding for any reason.

3.0 PERFORMANCE SCHEDULE

3.1 Time of Essence. Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance. Consultant shall commence and shall perform all services within the time period(s) established in the "Schedule of Performance" attached hereto as Exhibit "D", if any, and incorporated herein by this reference.

3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall, within ten (10) days of the commencement of such delay, notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if, in the judgment of the Contract Officer, such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused; Consultant's sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term. Unless earlier terminated in accordance with Section 7.4 below, this Agreement shall begin thirty days after execution and continue in full force and effect until completion of the services no later than June 30, 2025 (after the fifth audited fiscal year is completed).

4.0 COORDINATION OF WORK

4.1 Representative of Consultant. Scott Manno, Partner, is hereby designated as being the representative of Consultant authorized to act on its behalf with respect to the work or services specified herein and to make all decisions in connection therewith.

It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may his responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Contract Officer. The City's City Manager is hereby designated as the representative of the City authorized to act in its behalf with respect to the work and services and to make all decisions in connection therewith ("Contract Officer"). It shall be the Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. The City may designate another Contract Officer by providing written notice to Consultant. 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
4 4.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred or assigned without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant taking all transfers into account on a cumulative basis. A prohibited transfer or assignment shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

5.0 INSURANCE AND INDEMNIFICATION

5.1 Insurance. Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance:
(a) Commercial General Liability Insurance. A policy of commercial general liability insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01, with an edition date prior to 2004, or the exact equivalent. Coverage for an additional insured shall not be limited to its vicarious liability. Defense costs must be paid in addition to limits. Limits shall be no less than $1,000,00.00 per occurrence for all covered losses and no less than $2,000,000.00 general aggregate.
(b) Workers' Compensation Insurance. A policy of workers' compensation insurance on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident for all covered losses. (c) Automotive Insurance. A policy of comprehensive automobile liability insurance written on a per occurrence basis in an amount not less than $1,000,000.00 per accident, combined single limit. Said policy shall include coverage for owned, non owned, leased and hired cars.
(d) Professional Liability or Error and Omissions Insurance. A policy of Professional Liability for Errors and Omissions insurance in an amount not less than $1,000,000.00 per claim with respect to loss arising from the actions of Consultant performing professional services hereunder on behalf of the City.

All of the above policies of insurance shall be primary insurance. The general liability policy shall name the City, its officers, employees and agents ("City Parties") as additional insureds and shall 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
5 waive all rights of subrogation and contribution it may have against the City and the City's Parties and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.

All of said policies of insurance shall also provide that said insurance may be not cancelled without providing ten (10) days prior written notice by registered mail to the City. In the event any of said policies of insurance are cancelled or amended, Consultant shall, prior to the cancellation or amendment date, submit new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until Consultant has provided City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by City.

Consultant agrees that the provisions of this Section 5.1 shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant's activities or the activities of any person or persons for which Consultant is otherwise responsible. If the Consultant’s insurance policies have higher limits and coverage than those required by this contract, the City will have access to those higher limits and coverage maintained by the Consultant.

The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or better in the most recent edition of Best Rating Guide or The Key Rating Guide, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City due to unique circumstances.

In the event that the Consultant is authorized to subcontract any portion of the work or services provided pursuant to this Agreement, the contract between the Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Consultant is required to maintain pursuant to this Section 5.1.

5.2 Indemnification.
(a) Indemnity for Design Professional Liability. When the law establishes a professional standard of care for Consultant's services, to the fullest extent permitted by law, and except for the statutory limits set forth under California Civil Code Section 2782,8 applicable to services provided by a “design professional”, Consultant shall indemnify, defend and hold harmless City and the City's Parties from and against any and all losses, liabilities, damages, costs and expenses, including attorneys' fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees of subcontractors (or any entity or individual for which Consultant shall bear legal liability) in the performance of professional services under this Agreement.
(b) Indemnity for Other Than Design Professional Liability. Other than in the performance of design professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City and City's Parties from and against any liability (including liability for claims, suits, actions, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys' fees and costs, court costs, defense costs and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
6 Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant.

6.0 RECORDS AND REPORTS

6.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require.

6.2 Records. Consultant shall keep, and require subcontractors to keep, such books and records as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required.

6.3 Ownership of Documents. All drawings, specifications, reports, records, documents and other materials prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership of such documents and materials. Consultant may retain copies of such documents for its own use and Consultant shall have an unrestricted right to use the concepts embodied therein.

Any use of such completed documents by City for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City's sole risk and without liability to Consultant and the City shall indemnify the Consultant for all damages resulting therefrom.

All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom.

7.0 ENFORCEMENT OF AGREEMENT

7.1 California Law. This Agreement shall be construed and interpreted both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action.

7.2 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant's acts or omissions in performing or failing to perform Consultant's obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
7 of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein.

7.3 Waiver. No delay or omission in the exercise of any right or remedy by a nondefaulting party on any default shall impair such right or remedy or be construed as a waiver. A party's consent to or approval of any act by the other party requiring the party's consent or approval shall not be deemed to waive or render unnecessary the other party's consent to or approval of any subsequent act. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.4 Termination Prior to Expiration of Term. Either party may terminate this Agreement at any time, with or without cause, upon thirty (30) days' written notice to the other party. Upon receipt of any notice of termination, Consultant shall immediately cease all work or services hereunder except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for the reasonable value of the work product actually produced prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation and City shall be entitled to reimbursement for any compensation paid in excess of the services rendered.

7.5 Completion of Work After Termination for Default of Consultant. If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.6 Attorneys' Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, shall be entitled to reasonable attorneys’ fees, whether or not the matter proceeds to judgment, and to all other reasonable costs for investigating such action, taking depositions and discovery, including all other necessary costs the court allows which are incurred in such litigation.

8.0 CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest; City. No officer or employee of the City shall have any financial interest in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his financial interest or the financial interest of any corporation, partnership or association in which he is interested, in violation of any State statute or regulation.

8.3 Conflict of Interest; Consultant. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
8 Consultant shall comply with all conflict of interest laws and regulations including, without limitation, City's Conflict of Interest Code which is on file in the City Clerk's office. Accordingly, should the City Manager determine that Consultant will be performing a specialized or general service for the City and there is substantial likelihood that the Consultant's work product will be presented, either written or orally, for the purpose of influencing a governmental decision, the Consultant and its officers, agents or employees, as applicable, shall be subject to the City's Conflict of Interest Code.

8.4 Covenant Against Discrimination. Consultant covenants that, by and for itself, its executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the performance of this Agreement.

Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, national origin or ancestry.

9.0 MISCELLANEOUS PROVISIONS

9.1 Notice. Any notice or other communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer, City of Lawndale, 14717 Burin Avenue, Lawndale, California 90260, and in the case of the Consultant, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Integration; Amendment. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by an instrument in writing signed by both parties.

9.4 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

9.5 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. 01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
9 IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the date first written above.

CITY:

CITY OF LAWNDALE,
a municipal corporation
By: ________________________________
Robert Pullen Miles, Mayor
ATTEST:
________________________________
Erica Harbison, City Clerk
APPROVED AS TO FORM:

Burke, Williams & Sorenson, LLP
________________________________
Gregory M. Murphy, City Attorney
CONSULTANT:

Rogers, Anderson, Malody & Scott
a Limited Liability Partnership
By: ________________________________
Name: Scott W. Manno, CPA, CGMA
Title: Partner
Address: 735 E. Carnegie Drive, Suite 100
San Bernardino, CA 92408

01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
D-1
EXHIBIT "A"

SCOPE OF SERVICES
Rogers, Anderson, Malody & Scott, LLP, CPAs are to perform audit services of the City of Lawndale for the fiscal year ending June 30, 2025 and four subsequent fiscal years thereafter, for a total of five fiscal years. These services are to include:

1. An audit of the City of Lawndale’s Annual Comprehensive Financial Report (ACFR) in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. The audit includes:
a. Assisting the City of Lawndale’s Finance Department in the preparation of the financial statements, notes to the financial statements, and the Required Supplemental Information (RSI).
b. Rendering an opinion on the basic financial statements, including both the Government-Wide and Fund Financial Statements.
c. Applying limited procedures on the Management’s Discussion and Analysis and the RSI and analyzing data relationships to determine reasonableness of information on the combining and individual fund financial statements and supporting schedules.

2. If the Schedule of Expenditures of Federal Awards (SEFA) meets or exceeds the $750,000 audit threshold for the fiscal year:
a. Perform a Single Audit in order to render an opinion as to the compliance of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Procedures will include data relationship tests between the audited financial statements (CAFR) and the SEFA.
b. Prepare data collection form and required information to file with the Federal Audit Clearinghouse on behalf of the City of Lawndale.

3. Prepare report on the GANN Appropriation Spending Limit Calculation.

4. If requested, perform a Transient Occupancy Tax (TOT) audit of two hotels/motels for a two year period and prepare a report on the results.

01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
D-2
EXHIBIT "B"

SPECIAL REQUIREMENTS
Section 6.3 shall be replaced by the following language:
“Section 6.3 Ownership of Documents
All audit workpapers created by the Consultant, its employees, subcontractors and agents during the performance of the Consultant’s duties under this Agreement, including related electronic media and copies of City supplied documentation, is the property of the Consultant.

Any original documentation provided by the City will be returned to the City prior to completion of the required services. Any final financial statements created by Consultant in the performance of its duties along with the opinion from the Consultant will become the property of the City upon completion of the required services by the Consultant and payment by the City of all amounts owed to the Consultant.”
01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
D-3
EXHIBIT "C"

SCHEDULE OF COMPENSATION
Compensation for each year’s fiscal audit and related reporting requirements shall be based on the following table, subject to the specific audits performed (i.e. Single Audit performance and fee are based on the Schedule of Expenditures of Federal Awards meeting or exceeding the $750,000 audit threshold for the fiscal year and performance of the Transient Occupancy Tax audit is at the City’s discretion).

Year Audit Period CAFR Single Audit TOT Audit Total
1 7/1/24 – 6/30/25 $41,300 $4,640 + $4,250 $50,190
2 7/1/25 – 6/30/26 41,300 4,640 + 4,250 50,190
3 7/1/26 – 6/30/27 42,600 4,795 + 4,465 51,860
4 7/1/27 – 6/30/28 44,050 4,955 + 4,690 53,695
5 7/1/28 – 6/30/29 44,050 4,955 + 4,690 53,695
+ Single Audit fee is for one major program per year, each additional Major Program will be $3,750.

Rogers, Anderson, Malody & Scott (RAMS), LLP, CPAs may request monthly periodic progress payments based on actual work performed for each of the audits. Any amount equal to ten percent (10%) of each payment request shall be retained until acceptance of the reports for the particular audit. The City may withhold payment in the amount of ten (10%) of the total annual audit fee should RAMS fail to fulfill the audit requirements stated in the Request for Proposal.

Any adjustment to fees paid for audit services due to an increase in the number of funds or support accounts shall be subject to negotiations between the City and RAMS. The City shall have the final decision on any fee adjustment. RAMS shall be required to complete the requirements of the audits and the agreement as outlined in the Request for Proposal regardless of any fee adjustments being approved by the City.

RAMS will not be reimbursed for travel time or expenses unless the expenses relate to an increase in audit scope and it is approved in writing by the City before the expenses are incurred.

The above compensation amount contracted includes attendance of RAMS at all related audit meetings, including presentation of the audit reports to City Council, as deemed necessary by the City.
01001.0001/50590.5
Rogers, Anderson, Malody & Scott, LLP
D-4
EXHIBIT "D"

SCHEDULE OF PERFORMANCE
Schedule for the 2024-25 Fiscal Year Audit (similar schedules will be developed in subsequent years). Each of the following should be completed by the auditor no later than the dates indicated:

1. Entrance conference June 26, 2025
The purpose of this meeting will be to discuss any prior audit problems and the interim work to be performed. This meeting will also be used to establish an overall liaison for the audit and to make arrangements for workspace and other needs of the auditor. The auditor shall also provide both a detailed audit plan and a list of all schedules to be prepared by the City of Lawndale for interim fieldwork.

2. Interim work June 2025

3. Progress conference Scheduled after Interim

4. Detailed Audit Plan August 28, 2025
The auditor shall provide both a detailed audit plan and a list of all schedules to be prepared by the City of Lawndale for final fieldwork.

5. Entrance conference to commence
Year-end audit work October 9, 2025

6. Fieldwork November 6, 2025

7. Exit conference November 13, 2025
The purpose of this meeting will be to summarize the results of the fieldwork and to review significant findings.

8. Draft Reports December 4, 2025

The auditor shall have drafts of the audit reports and recommendations to management available for review by the Accounting Manager by this date.

9. Final Reports

Photo-Ready CAFR December 18, 2025
Management Letter Comments December 18, 2025
Report on the Gann Limit Calculation December 18, 2025
Single Audit Report February 26, 2026

ATTACHMENT B

ATTACHMENT C

ATTACHMENT D
1 Vanesa Alvarez
From: Liz Therssen <[email protected]>
Sent: Friday, February 28, 2025 11:17 AM
To: Vanesa Alvarez
Cc: Admin
Subject: RE: Inviting You to Review RFP for Professional Audit Services CAUTION: This email originated from outside of the organizaƟon. Do not click links or open aƩachments unless you recognize the sender and know the content is safe.

Good morning Vanesa,
Thank you for your request for proposal for the City of Lawndale. Due to our present workload, we are unable to propose at this time.

Thank you for the interest in our firm.

Yours very truly,
Liz Therssen | Administrative Assistant
We are in Business to Help Our Clients Succeed.
3478 Buskirk Ave. Ste. 217, Pleasant Hill, CA 94523
[email protected] | www.mazeassociates.com
Phone: (925) 228-2800 or Direct: (925) 890-7626 Fax: (925) 887-6636 From: Vanesa Alvarez <[email protected]>
Sent: Thursday, February 27, 2025 5:55 PM
Cc: Vanesa Alvarez <[email protected]>
Subject: Inviting You to Review RFP for Professional Audit Services

Good aŌernoon,

The City of Lawndale would like to invite you to review the aƩached Request for Proposals for Professional Audit Services.

You may also access the NoƟce on the City’s website here: BIDS & REQUESTS FOR PROPOSALS.

Thank you,

Vanesa Alvarez
Administrative Assistant
City of Lawndale | Office of the City Clerk
Phone: (310) 973-3211
14717 Burin Avenue, Lawndale, CA 90260
Monday-Thursday, 7 AM-6 PM

2 This email has been scanned for email related threats and delivered safely by Mimecast.

For more information please visit http://www.mimecast.com

BACKGROUND
The City contracted with Intrado Interactive Services Corporation to build the City's website and also provide annual hosting, maintenance and support on an on-going basis. The hosting, maintenance and support has been provided by PowerSchool. An agreement was entered into on 03/15/2020 for a five year period ending 3/15/2025. The annual support and maintenance was $4,800. Since 2021 the City has been paying the annual fee of $4,800 with no increases. PowerSchool is now building in annual increased for the hosting, maintenance and support of the City's website as the contract has expired.

STAFF REVIEW
The current annual subscription expired on March 15, 2025. We received a quote for a one year renewal at a rate of $5,280 and they stated that there will be a minimum annual 8% increase. We inquired about a longer term contract to lock in rates and to avoid surprises moving forward. They provided us with a quote for $5,257.60 for the first year then a 6% increase for the following two years. Agreeing to this three year deal saves at least $400 over the three years and locks us in to an agreement with fixed rates.

LEGAL REVIEW
The City Attorney's office has reviewed this staff report and has approved it as to form.

FISCAL IMPACT
The cost of the annual City Website maintenance will be budgeted for during the annual City budget.

RECOMMENDATION
Staff recommends that City council approve the 3 year agreement with PowerSchool for a total of $16,738.10
Attachments
PowerSchool Website Quote Agreement.pdf
ATTACHMENT $
PowerSchool Group LLC
150 Parkshore Dr.

Folsom CA 95630
Quote #: Q-133347-1
Sales Quote - This Is Not An Invoice
Prepared By: Aanchal Bajpai Customer Contact: Matthew Ceballos Customer Name: City of Lawndale, CA Title:

Address: 14717 Burin Ave
Contract Term: 36 Months City: Lawndale
Start Date: March 15, 2025 State/Province: California
End Date: March 14, 2028 Zip Code: 90260
Payment Terms: Net 30 Phone #
Pricing Vehicle: Pricing Vehicle Contract #:

Contract Term : March 15, 2025 to March 14, 2028
Quote Summary
License and Subscription Period(s) Software Total
Subscription Period 1: March 15, 2025 to
March 14, 2026
USD 5,257.6 USD 5,257.6
Subscription Period 2: March 15, 2026 to
March 14, 2027
USD 5,573.06 USD 5,573.06
Subscription Period 3: March 15, 2027 to
March 14, 2028
USD 5,907.44 USD 5,907.44
Total Contract : March 15, 2025 to March
14, 2028
USD 16,738.1 USD 16,738.1
License and Subscription Fees
Subscription Period 1 License and
Subscription Fees
Product Description Quantity Unit Disc (%or
$)
Price
CivicLive 31,000.00 Each USD
5,257.60
Subscription Period 1 License and Subscription Fees TOTAL: USD 5,257.60
Subscription Period 2 License and
Subscription Fees
Product Description Quantity Unit Disc (%or
$)
Price
CivicLive 31,000.00 Each USD
5,573.06
Subscription Period 2 License and Subscription Fees TOTAL: USD 5,573.06

Page 1 of 2 ends

Subscription Period 3 License and
Subscription Fees
Product Description Quantity Unit Disc (%or
$)
Price
CivicLive 31,000.00 Each USD
5,907.44
Subscription Period 3 License and Subscription Fees TOTAL: USD 5,907.44
Total License and Subscription Fees : USD 16,738.10
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Subscription Start and End Dates shall be as set forth above. On-Going PowerSchool Subscription/Maintenance and Support Fees are invoiced at the then-current rates and enrollment per existing terms of the executed agreement between Customer and PowerSchool.

Any applicable sales or other tax has not been added to this quote. If this quote includes promotional pricing, such promotional pricing may not be valid for the entire duration of this quote.

All purchase orders must include the exact quote number of this quote. Customer agrees that purchase orders are for administrative purposes only and do not impact the terms or conditions of this quote or any agreement executed between the parties. Any credit provided by PowerSchool is nonrefundable and must be used within 12 months of issuance. Unused credits will expire after 12 months.

This quote incorporates any statement of work attached hereto. This quote is subject to and incorporate the terms and conditions found at
www.powerschool.com/MSA_2024/.

"
#

THE PARTIES BELOW ACKNOWLEDGE THAT THEY HAVE READ THE AGREEMENT, UNDERSTAND IT AND AGREE TO BE BOUND BY ITS TERMS.

POWERSCHOOL GROUP LLC City of Lawndale, CA

Signature: Signature:
\s1\
Printed Name: Jon Scrimshaw Printed Name:
\n1\
Title: Chief Accounting Officer Title:
\t1\
Date: 26-MAR-2025 Date:
\d1\

PO Number: ___________________________

Page 2 of 2 ends

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: April 7, 2025
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Vanesa Alvarez, Administrative Assistant
SUBJECT: Conference with Labor Negotiator
The City Council will conduct a closed session, pursuant to Government Code section 54957.6, with the City Manager, the City Attorney, and the City's negotiators, regarding labor negotiations with Local 1895, Council 36, American Federation of State, County and Municipal Employees, AFL-CIO, representing the City's mid-management and classified employees.

CITY OF LAWNDALE
14717 BURIN AVENUE, LAWNDALE, CALIFORNIA 90260
PHONE (310) 973-3200 ♦ www.lawndalecity.org
DATE: April 7, 2025
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Yvette Palomo, Assistant City Clerk
SUBJECT: Conference with Legal Counsel – Existing Litigation The City Council will conduct a closed session, pursuant to Government Code section 54956.9(d)(1), to discuss existing litigation: Name of Case: Corprue v. City of Lawndale (LA Superior Court Case No. 20STCV14617).

Lawndale City CouncilApril 7, 2025

Lawndale City Council
April 7, 2025