SECOND AMENDMENT TO
PROFESSIONAL SERVICES AGREEMENT FOR
AUDIT SERVICES
This Second Amendment to Professional Services Agreement for Audit Services (this “Second Amendment”) is made and entered into on this ____day of ________, 2025, by and between the CITY OF SAN CLEMENTE, a California municipal corporation (“City”), and Lance, Soll Lunghard, LLP (“Consultant”).
R E C I T A L S:
City and Consultant entered into that certain Professional Services Agreement for Audit Services to be performed at or in connection with Audit of the City’s Financial Records, Single Audit of Federal Grants, Audit of Coastal Animal Services Authority, and Issuance of related Financial Reports (the “Agreement”) on June 19, 2018.
City and Consultant entered into that certain First Amendment to the Professional Services Agreement for Audit Services (“First Amendment”) on April 16, 2024. The Original Agreement, as modified by the First Amendment, is hereinafter referred to as the “Agreement.” City and Consultant desire to amend the Agreement in the manner provided herein.
C O V E N A N T S:
1. Section 1.1 of the Agreement is hereby amended by extending the term of the agreement through June 30, 2027. In addition to the services to be performed by Consultant as referenced in Exhibit A to the Agreement, Consultant shall also perform those services for the fee described in Exhibit “A” to this Second Amendment, which exhibit is attached hereto and incorporated fully herein by this reference.
2. Section 3.1 of the Agreement is hereby amended to allow the total compensation to not exceed $134,750 cumulatively for Fiscal Year 2024-25 and Fiscal Year 2025-26 combined.
3. This Second Amendment and the Agreement may be executed electronically with the same force and effect as original ink signatures.
4. Except as expressly amended by this Second Amendment, the remaining portions of the Agreement shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE]
IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be duly executed on the respective dates set forth opposite of their signatures.
CITY OF SAN CLEMENTE
By:________________________________
Andy Hall, City Manager
ATTEST: Dated: _________________________
_____________________________
CITY CLERK of the City of
San Clemente, California
APPROVED AS TO FORM:
_____________________________
Elizabeth A. Mitchell, City Attorney
APPROVED AS TO AVAILABILITY
OF FUNDING:
_____________________________
Finance Authorization
Lance, Soll & Lunghard, LLP
(“CONSULTANT”)
By:_____________________________
Ryan Domino, Partner
Dated: _________________________
EXHIBIT A
TO SECOND AMENDMENT TO
PROFESSIONAL SERVICES AGREEMENT FOR
AUDIT SERVICES
Consultant shall perform the following services for Fiscal Year 2024-25 and Fiscal Year 2025-26 to the City’s satisfaction for the following fees in accordance with the terms and conditions of the Agreement:
HOURS FOR SCOPE OF WORK
The estimated hours to complete the scope of work are as follows:
TOTAL PROPOSED HOURS
Segment/Task
Partners/
Director
Manager
Senior
Staff
Clerical
Total
City's Annual Financial Audit
Interim test work
0 0
20 40
0 60
Year-End test work
0 0
60 120
0 180
Report/Review/Supervision
10 40
0 0
10 60
Subtotal
10 40
80 160
10 300
CASA Annual Financial Audit
Test work
0 0
5 10
0 15
Report/Review/Supervision
1 3
0 0
1 5
Subtotal
1 3
5 10
1 20
Single Audit *
Test work
0 0
10 20
0 30
Report/Review/Supervision
2 6
0 0
2 10
Subtotal
2 6
10 20
2 40
Optional Service - ACFR Preparation
Report/Review/Supervision
4 10
21 0
5 40
Subtotal
4 10
21 0
5 40
Optional Service - State Controller's Report Preparation Report/Review/Supervision
0 2
0 38
0 40
Subtotal
0 2
0 38
0 40
TOTAL PROPOSED HOURS:
17 61
116
228
18 440
* Hours proposed are for one (1) major program.
Consultant shall also provided as needed services as requested by the City as the City deems necessary to facilitate synchronization with the new Enterprise Resource Planning (ERP) system project. Such services shall be performed at the following hourly rates. Total ERP system synchronization services shall not exceed $10,000.
DOLLAR-COST
The total fee for fiscal year 2024-25 and 2025-26 services shall not exceed $134,750 and are broken down as follows:
As needed services to facilitate synchronization with the ERP system project shall not exceed $10,000.
Hourly rates by level are as follows:
Position
Standard Rate
Quoted Rate FY25
Quoted Rate FY26
Partner
$390
$312
$321
Director
$320
$256
$264
Senior Manager
$290
$232
$239
Manager
$250
$200
$206
Supervisor
$210
$168
$173
Senior Accountant
$190
$152
$157
Experienced Staff
$160
$128
$132
Staff Accountant
$140
$112
$115
Clerical
$120
$96
$99
A progress bill will be sent not more than monthly with the final 10% of the fee payable upon completion of the project. Invoices are payable upon receipt.
Attachment 2