CC - Item 4D - Contract Extension for Professional Services Agreement with Lance, Soll & Lunghard, LLP for Auditing ServicesROSEMEAD CITY COUNCIL
STAFF REPORT
TO:
THE HONORABLE MAYOR AND CITY COUNC/I�L
FROM:
GLORIA MOLLEDA, CITY MANAGER
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DATE:
JUNE 14, 2021
SUBJECT: CONTRACT EXTENSION FOR PROFESSIONAL SERVICES
AGREEMENT WITH LANCE, SOLL & LUNGHARD, LLP FOR
AUDITING SERVICES
SUMMARY
In 2018, the City Council awarded a three-year contract with two additional one-year extensions
to Lance, Soll & Lungard, LLP for auditing services. The City has completed the initial term of
the contract and staff recommends the acceptance of the two additional one-year extensions.
Approval of the extension would extend the contract through the FY 2021-22 audit period.
DISCUSSION
After seven years with its prior auditors, the City issued an RFP for auditing services in April of
2018. Six qualified responses were received and four were selected for interviews. Based on
factors such as the firm's technical support, size and structure, anticipated support requirements of
City's staff, overall experience of the firm, audit team's experience, planned audit hours,
understanding of the engagement, availability of client -education programs, and overall fit of the
firm for Rosemead's needs, the firm of Lance, Soll & Lunghard, LLP (LSL) was recommended as
the City's new auditors. On May 18, 2018, the City Council approved a three-year contract with
two additional one-year extensions and authorized the City Manager to sign the contract.
Due to the continued turnover in Interim Finance Directors, it is staff's recommendation that the
City approve the two one-year extensions with Lance, Soll & Lungard. The firm has provided
satisfactory services over the initial term of the contract and, if approved, will begin its preliminary
work for the FY 2020-21 audit in June. As an alternative to the approval of the two one-year
extensions, the City Council could approve a one-year extension with direction to release a new
RFP for the FY 2021-22 audit, however, unless a permanent director is hired soon, the RFP release,
analysis and recommendation may occur simultaneously with another change in Interim Finance
Directors.
AGENDA ITEM 4.1)
City Council Meeting
June 14, 2021
Page 2 of 2
STAFF RECOMMENDATION
Staff recommends that the City Council accept and approve the two additional one-year extensions
provided within the current auditing service contract with Lance, Soll & Lunghard, LLP and
authorize the City Manager to sign any required contract extension documents.
FISCAL IMPACT
The cost of the 2019-20 audit for the City, Successor Agency, Housing Development Corporation,
the required Single Audit Report and State Controllers' Report was $42,870. The fees quoted for
the next two fiscal year audits are $43,730 and $44,600 respectively, for the same services. The
quoted fee of $43,730 has been included in the proposed FY 2021-22 budget within the General
Fund, Housing Development Corporation, and Successor Agency.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
Paula Chamberlain, Interim Finance Director
Attachment A: Audit Fee Schedule
Attachment A
Audit Fee Schedule
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