Loading...
HomeMy WebLinkAboutCO 2025-025 - Lance, Soll & Lunghard, LLP____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 1 Last Revised: 10/02/13 AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT is made and entered into this 6th day of March, 2025, by and between the City of Rancho Cucamonga, a municipal corporation (“City”) and Lance, Soll & Lunghard, LLP, a Limited-Liability Partnership (“Consultant”). RECITALS A. City has heretofore issued its request for proposals to perform the following professional services: Professional Auditing Services (“the Project”). B. Consultant has submitted a proposal to perform the professional services described in Recital “A”, above, necessary to complete the Project. C. City desires to engage Consultant to complete the Project in the manner set forth and more fully described herein. D. Consultant represents that it is fully qualified and licensed under the laws of the State of California to perform the services contemplated by this Agreement in a good and professional manner. AGREEMENT NOW, THEREFORE, in consideration of performance by the parties of the mutual promises, covenants, and conditions herein contained, the parties hereto agree as follows: 1. Consultant’s Services. 1.1 Scope and Level of Services. Subject to the terms and conditions set forth in this Agreement, City hereby engages Consultant to perform all technical and professional services described in Recitals “A” and “B” above, including, but not limited to professional auditing services for the fiscal years June 30, 2025 and 2026, with options to renew for fiscal years June 30, 2027 and 2028, all as more fully set forth in the Consultant’s proposal, dated January 8, 2025 and entitled “Scope of Work”, attached hereto as Exhibit “A”, and incorporated by reference herein. The nature, scope, and level of the services required to be performed by Consultant are set forth in the Scope of Work and are referred to herein as “the Services.” In the event of any inconsistencies between the Scope of Work and this Agreement, the terms and provisions of this Agreement shall control. 1.2 Revisions to Scope of Work. Upon request of the City, the Consultant will promptly meet with City staff to discuss any revisions to the Project City of Rancho Cucamonga CONTRACT NUMBER 2025-025 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 2 Last Revised: 10/02/13 desired by the City. Consultant agrees that the Scope of Work may be amended based upon said meetings, and, by amendment to this Agreement, the parties may agree on a revision or revisions to Consultant’s compensation based thereon. A revision pursuant to this Section that does not increase the total cost payable to Consultant by more than ten percent (10%) of the total compensation specified in Section 3, may be approved in writing by City’s City Manager without amendment. 1.3 Time for Performance. Consultant shall perform all services under this Agreement in a timely, regular basis consistent with industry standards for professional skill and care, and in accordance with any schedule of performance set forth in the Scope of Work, or as set forth in a “Schedule of Performance”, if such Schedule is attached hereto as Exhibit “A”. 1.4 Standard of Care. As a material inducement to City to enter into this Agreement, Consultant hereby represents that it has the experience necessary to undertake the services to be provided. In light of such status and experience, Consultant hereby covenants that it shall follow the customary professional standards in performing the Services. 1.5 Familiarity with Services. By executing this Agreement, Consultant represents that, to the extent required by the standard of practice, Consultant (a) has investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c) understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. Consultant represents that Consultant, to the extent required by the standard of practice, has investigated any areas of work, as applicable, and is reasonably acquainted with the conditions therein. Should Consultant discover any latent or unknown conditions, which will materially affect the performance of services, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the City Representative. 2. Term of Agreement. The term of this Agreement shall be 2 (two) year(s) and shall become effective as of the date of the mutual execution by way of both parties signature (the “Effective Date”). No work shall be conducted; service or goods will not be provided until this Agreement has been executed and requirements have been fulfilled. Parties to this Agreement shall have the option to renew in 1 (one) year(s) increments to a total of 2 (two) years, unless sooner terminated as provided in Section 14 herein. Options to renew are contingent upon the City Manager’s approval, subject to pricing review, and in accordance to all Terms and Conditions stated herein unless otherwise provided in writing by the City. 3. Compensation. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 3 Last Revised: 10/02/13 3.1 Compensation. City shall compensate Consultant as set forth in Exhibit A, provided, however, that full, total and complete amount payable to Consultant shall not exceed $511,230 (five hundered eleven thousand, two hundred thirty dollars), including all out of pocket expenses, unless additional compensation is approved by the City Manager or City Council. City shall not withhold any federal, state or other taxes, or other deductions. However, City shall withhold not more than ten percent (10%) of any invoice amount pending receipt of any deliverables reflected in such invoice. Under no circumstance shall Consultant be entitled to compensation for services not yet satisfactorily performed. The parties further agree that compensation may be adjusted in accordance with Section 1.2 to reflect subsequent changes to the Scope of Services. City shall compensate Consultant for any authorized extra services as set forth in Exhibit A. 4. Method of Payment. 4.1 Invoices. Consultant shall submit to City monthly invoices for the Services performed pursuant to this Agreement. The invoices shall describe in detail the Services rendered during the period and shall separately describe any authorized extra services. Any invoice claiming compensation for extra services shall include appropriate documentation of prior authorization of such services. All invoices shall be remitted to the City of Rancho Cucamonga, California. 4.2 City shall review such invoices and notify Consultant in writing within ten (10) business days of any disputed amounts. 4.3 City shall pay all undisputed portions of the invoice within thirty (30) calendar days after receipt of the invoice up to the not-to-exceed amounts set forth in Section 3. 4.4 All records, invoices, time cards, cost control sheets and other records maintained by Consultant relating to services hereunder shall be available for review and audit by the City. 5. Representatives. 5.1 City Representative. For the purposes of this Agreement, the contract administrator and City’s representative shall be Caroline Cruz-Contreras, Principal Accountant, or such other person as designated in writing by the City (“City Representative”). It shall be Consultant’s responsibility to assure that the City Representative is kept informed of the progress of the performance of the services, and Consultant shall refer any decisions that must be made by City to the City Representative. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the City Representative. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 4 Last Revised: 10/02/13 5.2 Consultant Representative. For the purposes of this Agreement, Christian Townes, Partner is hereby designated as the principal and representative of Consultant authorized to act in its behalf with respect to the services specified herein and make all decisions in connection therewith (“Consultant’s Representative”). It is expressly understood that the experience, knowledge, capability and reputation of the Consultant’s Representative were a substantial inducement for City to enter into this Agreement. Therefore, the Consultant’s 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. Consultant may not change the Responsible Principal without the prior written approval of City. 6. Consultant’s Personnel. 6.1 All Services shall be performed by Consultant or under Consultant’s direct supervision, and all personnel shall possess the qualifications, permits, and licenses required by State and local law to perform such Services, including, without limitation, a City business license as required by the City’s Municipal Code. 6.2 Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Services and compliance with the standard of care set forth in Section 1.4. 6.3 Consultant shall be responsible for payment of all employees’ and subcontractors’ wages and benefits, and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security. By its execution of this Agreement, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code that require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 6.4 Consultant shall indemnify, defend and hold harmless City and its elected officials, officers and employees, servants, designated volunteers, and agents serving as independent contractors in the role of City officials, from any and all liability, damages, claims, costs and expenses of any nature to the extent arising from Consultant’s violations of personnel practices and/or any violation of the California Labor Code. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 6. 7. Ownership of Work Product. 7.1 Ownership. All documents, ideas, concepts, electronic files, drawings, photographs and any and all other writings, including drafts thereof, prepared, created or provided by Consultant in the course of performing the Services, including any and all intellectual and proprietary rights arising from the creation of the same Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 5 Last Revised: 10/02/13 (collectively, “Work Product”), are considered to be “works made for hire” for the benefit of the City. Upon payment being made, and provided Consultant is not in breach of this Agreement, all Work Product shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Basic survey notes, sketches, charts, computations and similar data prepared or obtained by Consultant under this Agreement shall, upon request, be made available to City. None of the Work Product shall be the subject of any common law or statutory copyright or copyright application by Consultant. In the event of the return of any of the Work Product to Consultant or its representative, Consultant shall be responsible for its safe return to City. Under no circumstances shall Consultant fail to deliver any draft or final designs, plans, drawings, reports or specifications to City upon written demand by City for their delivery, notwithstanding any disputes between Consultant and City concerning payment, performance of the contract, or otherwise. This covenant shall survive the termination of this Agreement. City’s reuse of the Work Product for any purpose other than the Project, shall be at City’s sole risk. 7.2. Assignment of Intellectual Property Interests: Upon execution of this Agreement and to the extent not otherwise conveyed to City by Section 7.1, above, the Consultant shall be deemed to grant and assign to City, and shall require all of its subcontractors to assign to City, all ownership rights, and all common law and statutory copyrights, trademarks, and other intellectual and proprietary property rights relating to the Work Product and the Project itself, and Consultant shall disclaim and retain no rights whatsoever as to any of the Work Product, to the maximum extent permitted by law. City shall be entitled to utilize the Work Product for any and all purposes, including but not limited to constructing, using, maintaining, altering, adding to, restoring, rebuilding and publicizing the Project or any aspect of the Project. 7.3 Title to Intellectual Property. Consultant warrants and represents that it has secured all necessary licenses, consents or approvals to use any instrumentality, thing or component as to which any intellectual property right exists, including computer software, used in the rendering of the Services and the production of the Work Product and/or materials produced under this Agreement, and that City has full legal title to and the right to reproduce any of the Work Product. Consultant shall defend, indemnify and hold City, and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City officials, harmless from any loss, claim or liability in any way related to a claim that City’s use is violating federal, state or local laws, or any contractual provisions, relating to trade names, licenses, franchises, patents or other means of protecting intellectual property rights and/or interests in products or inventions. Consultant shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, software, equipment, devices or processes used or incorporated in the Services and materials produced under this Agreement. In the event City’s use of any of the Work Product is held to constitute an infringement and any use thereof is enjoined, Consultant, at its expense, shall: (a) secure for City the right to continue using the Work Product by suspension of any injunction or by procuring a Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 6 Last Revised: 10/02/13 license or licenses for City; or (b) modify the Work Product so that it becomes non- infringing. This covenant shall survive the termination of this Agreement. 8. Status as Independent Contractor. Consultant is, and shall at all times remain as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise act as an agent of City. Neither City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its officers, agents or employees are in any manner employees of City. Consultant shall pay all required taxes on amounts paid to Consultant under this Agreement, and to defend, indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Consultant shall fully comply with the workers’ compensation law regarding Consultant and Consultant’s employees. 9. Confidentiality. Consultant may have access to financial, accounting, statistical, and personnel data of individuals and City employees. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are confidential and shall not be disclosed by Consultant without prior written authorization by City. City shall grant such authorization if applicable law requires disclosure. All City data shall be returned to City upon the termination of this Agreement. Consultant’s covenant under this Section shall survive the termination of this Agreement. This provision shall not apply to information in whatever form that is in the public domain, nor shall it restrict the Consultant from giving notices required by law or complying with an order to provide information or data when such an order is issued by a court, administrative agency or other legitimate authority, or if disclosure is otherwise permitted by law and reasonably necessary for the Consultant to defend itself from any legal action or claim. 10. Conflict of Interest. 10.1 Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the Services, or which would conflict in any manner with the performance of the Services. Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest, which would conflict in any manner with the performance of the Services. Consultant shall not accept any employment or representation during the term of this Agreement which is or may likely make Consultant “financially interested” (as provided in California Government Code §§1090 and 87100) in any decision made by City on any matter in connection with which Consultant has been retained. 10.2 Consultant further represents that it has not employed or retained any person or entity, other than a bona fide employee working exclusively for Consultant, Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 7 Last Revised: 10/02/13 to solicit or obtain this Agreement. Consultant has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for Consultant, any fee, commission, gift, percentage, or any other consideration contingent upon the execution of this Agreement. Upon any breach or violation of this warranty, City shall have the right, at its sole and absolute discretion, to terminate this Agreement without further liability, or to deduct from any sums payable to Consultant hereunder the full amount or value of any such fee, commission, percentage or gift. 10.3 Consultant has no knowledge that any officer or employee of City has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of Consultant, and that if any such interest comes to the knowledge of Consultant at any time during the term of this Agreement, Consultant shall immediately make a complete, written disclosure of such interest to City, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws as described in subsection 10.1. 11. Indemnification. 11.1 Professional Services. In the connection with its professional services, the Consultant shall defend, indemnify, and hold the City, and its elected officials, officers, employees, servants, volunteers, and agents serving as independent contractors in the role of City officials, (collectively, “Indemnitees”), free and harmless with respect to any and all damages, liabilities, losses, reasonable defense costs or expenses (collectively, “Claims”), including but not limited to liability for death or injury to any person and injury to any property, to the extent the same arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant or any of its officers, employees, subcontractors, consultants, or agents in the performance of its professional services under this Agreement. Consultant shall pay all reasonable defense costs and expenses, including actual attorney’s fees and experts’ costs incurred in connection with such defense. 11.2 Other Indemnities. In connection with all Claims not covered by Section 11.1, and to the maximum extent permitted by law, the Consultant shall defend, hold harmless and indemnify the Indemnitees with respect to any and all Claims including but not limited to Claims relating to death or injury to any person and injury to any property, which arise out of, pertain to, or relate to the acts, omissions, activities or operations of Consultant or any of its officers, employees, subcontractors, subconsultants, or agents in the performance of this Agreement. Consultant shall defend Indemnitees in any action or actions filed in connection with any such Claims with counsel of City’s choice, and shall pay all costs and expenses, including actual attorney’s fees and experts’ costs incurred in connection with such defense. The indemnification obligation herein shall not in any way be limited by the insurance obligations contained in this Agreement provided, however, that the Contractor shall have no obligation to indemnify for Claims arising out of the sole negligence or willful misconduct of any of the Indemnitees. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 8 Last Revised: 10/02/13 11.3 Nonwaiver of Rights. Indemnitees do not, and shall not, waive any rights that they may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. 11.4 Waiver of Right of Subrogation. Except as otherwise expressly provided in this Agreement, Consultant, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Consultant. 11.5 Survival. The provisions of this Section 11 shall survive the termination of the Agreement and are in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against Consultant shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision. 12. Insurance. 12.1 Liability Insurance. Consultant shall procure and maintain in full force and effect for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by Consultant, and/or its agents, representatives, employees and subcontractors. 12.2 Minimum Scope of Insurance. Unless otherwise approved by City, coverage shall be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). (2) Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). (3) Worker’s Compensation insurance as required by the State of California, and Employer’s Liability Insurance. (4) Professional Liability insurance in a form approved by the City, having, at City’s option, an extended reporting period of not less than three (3) years; or professional liability insurance shall be maintained for a period of three (3) years after completion of the Services which shall, during the entire three (3) year period, provide protection against claims of professional negligence arising out of Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 9 Last Revised: 10/02/13 Consultant’s performance of the Services and otherwise complying with all applicable provisions of this Section 12. The policy shall be endorsed to include contractual liability to the extent insurable. 12.3 Minimum Limits of Insurance. Consultant shall maintain limits no less than: (1) Commercial General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. Commercial General Liability Insurance with a general aggregate limit shall apply separately to this Agreement or the general limit shall be twice the required occurrence limit. (2) Automobile Liability: $2,000,000 per accident for bodily injury and property damage. (3) Employer’s Liability: $1,000,000 per accident and in the aggregate for bodily injury or disease and Workers’ Compensation Insurance in the amount required by law. (4) Professional Liability: $1,000,000 per claim/aggregate. (5) The Insurance obligations under this agreement shall be the greater of (i) the Insurance coverages and limits carried by the Contractor; or (ii) the minimum insurance requirements shown in this Agreement. Any insurance proceeds in excess of the specified limits and coverage required which are applicable to a given loss, shall be available to the City. No representation is made that the minimum insurance requirements of this Agreement are sufficient to cover the obligations of the Contractor under this Agreement. 12.4 Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions must be declared to and approved by the City and shall not reduce the limits of coverage. City reserves the right to obtain a full certified copy of any required insurance policy and endorsements. 12.5 Other Insurance Provisions. (1) The commercial general liability and automobile liability policies are to contain the following provisions on a separate additionally insured endorsement naming the City, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 10 Last Revised: 10/02/13 City officials as additional insureds as respects: liability arising out of activities performed by or on behalf of Consultant; products and completed operations of Consultant; premises owned, occupied or used by Consultant; and/or automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no limitations on the scope of protection afforded to City, its officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of City officials which are not also limitations applicable to the named insured. (2) For any claims related to this Agreement, Consultant’s insurance coverage shall be primary insurance as respects City, its officers, officials, employees, designated volunteers and agents serving as independent contractors in the role of City or officials. Any insurance or self- insurance maintained by City, its officers, officials, employees, designated volunteers or agents serving as independent contractors in the role of City officials shall be excess of Consultant’s insurance and shall not contribute with it. (3) Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. (4) Contractor shall provide immediate written notice if (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; (3) or the deductible or self insured retention is increased. In the event of any cancellation or reduction in coverage or limits of any insurance, Contractor shall forthwith obtain and submit proof of substitute insurance. Should Contractor fail to immediately procure other insurance, as specified, to substitute for any canceled policy, the City may procure such insurance at Contractor’s sole cost and expense. (5) Each insurance policy, required by this clause shall expressly waive the insurer’s right of subrogation against City and its elected officials, officers, employees, servants, attorneys, designated volunteers, and agents serving as independent contractors in the role of City officials. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 11 Last Revised: 10/02/13 (6)Each policy shall be issued by an insurance company approved in writing by City, which is admitted and licensed to do business in the State of California and which is rated A:VII or better according to the most recent A.M. Best Co. Rating Guide. (7) Each policy shall specify that any failure to comply with reporting or other provisions of the required policy, including breaches of warranty, shall not affect the coverage required to be provided. (8) Each policy shall specify that any and all costs of adjusting and/or defending any claim against any insured, including court costs and attorneys' fees, shall be paid in addition to and shall not deplete any policy limits. (9) Contractor shall provide any and all other required insurance, endorsements, or exclusions as required by the City in any request for proposals applicable to this Agreement. 12.6 Evidence of coverage. Prior to commencing performance under this Agreement, the Consultant shall furnish the City with certificates and original endorsements, or copies of each required policy, effecting and evidencing the insurance coverage required by this Agreement including (1) Additional Insured Endorsement(s), (2) Worker’s Compensation waiver of subrogation endorsement, and (3) General liability declarations or endorsement page listing all policy endorsements. The endorsements shall be signed by a person authorized by the insurer(s) to bind coverage on its behalf. All endorsements or policies shall be received and approved by the City before Consultant commences performance. If performance of this Agreement shall extend beyond one year, Consultant shall provide City with the required policies or endorsements evidencing renewal of the required policies of insurance prior to the expiration of any required policies of insurance. 12.7 Contractor agrees to include in all contracts with all subcontractors performing work pursuant to this Agreement, the same requirements and provisions of this Agreement including the indemnity and insurance requirements to the extent they apply to the scope of any such subcontractor’s work. Contractor shall require its subcontractors to be bound to Contractor and City in the same manner and to the same extent as Contractor is bound to City pursuant to this Agreement, and to require each of its subcontractors to include these same provisions in its contract with any sub- subcontractor. 13.Cooperation. In the event any claim or action is brought against City relating to Consultant’s performance or services rendered under this Agreement, Consultant shall render any reasonable assistance and cooperation that City might require. City shall compensate Consultant for any litigation support services in an amount to be agreed upon by the parties. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 12 Last Revised: 10/02/13 14. Termination. City shall have the right to terminate this Agreement at any time for any or no reason on not less than ten (10) days prior written notice to Consultant. In the event City exercises its right to terminate this Agreement, City shall pay Consultant for any services satisfactorily rendered prior to the effective date of the termination, provided Consultant is not then in breach of this Agreement. Consultant shall have no other claim against City by reason of such termination, including any claim for compensation. City may terminate for cause following a default remaining uncured more than five (5) business days after service of a notice to cure on the breaching party. Consultant may terminate this Agreement for cause upon giving the City ten (10) business days prior written notice for any of the following: (1) uncured breach by the City of any material term of this Agreement, including but not limited to Payment Terms; (2) material changes in the conditions under which this Agreement was entered into, coupled with the failure of the parties to reach accord on the fees and charges for any Additional Services required because of such changes. 15. Notices. Any notices, bills, invoices, or reports authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Consultant’s and City’s regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses set forth in this Section, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this Section. All notices shall be addressed as follows: If to City: City of Rancho Cucamonga Caroline Cruz-Contreras 10500 Civic Center Drive Rancho Cucamonga, CA 91730 caroline.ccontreras@cityofrc.us If to Consultant: LSL, LLP Christian Townes, Partner 500 Technology Drive Irvine, CA 92618 christian.townes@lslcpas.com 16. Non-Discrimination and Equal Employment Opportunity. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 13 Last Revised: 10/02/13 employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. 17. Assignment and Subcontracting. Consultant shall not assign or transfer any interest in this Agreement or subcontract the performance of any of Consultant’s obligations hereunder without City’s prior written consent. Except as provided herein, any attempt by Consultant to so assign, transfer, or subcontract any rights, duties, or obligations arising hereunder shall be null, void and of no effect. 18 Compliance with Laws. Consultant shall comply with all applicable federal, state and local laws, ordinances, codes and regulations in force at the time Consultant performs the Services. CONSULTANT is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, CONSULTANT agrees to fully comply with such Prevailing Wage Laws. The applicable prevailing wage rate determinations can be found at http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm CONSULTANT shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant’s principal place of business and at the Project site. CONSULTANT shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 19. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. 20. Attorney’s Fees. In the event that either party to this Agreement shall commence any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney’s fees and costs of experts. 21. Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 ____________ Vendor Initials PSA with Professional Liability Insurance (non-design) Page 14 Last Revised: 10/02/13 document incorporated herein by reference, the provisions of this Agreement shall prevail. 22.Applicable Law and Venue. The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California. Venue for any action relating to this Agreement shall be in the San Bernardino County Superior Court. 23. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted the Agreement or who drafted that portion of the Agreement. 24.Entire Agreement. This Agreement consists of this document, and any other documents, attachments and/or exhibits referenced herein and attached hereto, each of which is incorporated herein by such reference, and the same represents the entire and integrated agreement between Consultant and City. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the parties which expressly refers to this Agreement. IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. Consultant Name: LSL, LLP By: ______________________________ Name Date ______________________________ Title City of Rancho Cucamonga By:________________________________ Name Date _________________________________ Title By: ______________________________ Name Date ______________________________ Title City of Rancho Cucamonga By:________________________________ Name Date _________________________________ Title (two signatures required if corporation) Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 3/4/2025 | 11:55 AM PST Partner 3/6/2025 | 9:17 AM PST Mayor/President Last Revised: 11/04/13 Page 1 of 1 ADDENDUM NO. 01 to Professional Services Agreement Whereas; Lance, Soll & Lunghard, LLP (hereinafter “Consultant”) and the City of Rancho Cucamonga (hereinafter the “City”) intend to enter into a Professional Services Agreement (hereinafter “Agreement”), and Whereas; The Consultant has identified the following exceptions to the Agreement; 7.3 Title to Intellectual Property Omit wording, "and that City has full legal title to and the right to reproduce any of the Work Product". Per the AICPA Code of Professional Conduct, any review of the Consultant's workpapers are at the sole discretion of the Consultant and cannot be incorporated as part of the contract. Now therefore: The Consultant and the City desire to incorporate the above exceptions to the attached Professional Services Agreement. Please indicate your agreement by way of signature to this Addendum No. 01 and the attached Professional Services Agreement. Please return two (2) original signed copies to the City no later than March 5, 2025 The City will process for signature and provide the Consultant with one (1) fully executed copy of the Professional Services Agreement and Addendum No. 01. Lance, Soll & Lunghard, LLP By: ______________________________ Name Date ______________________________ Title City of Rancho Cucamonga By:________________________________ Name Date _________________________________ Title By: ______________________________ Name Date ______________________________ Title By:________________________________ Name Date _________________________________ Title (two signatures required if corporation) Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 3/4/2025 | 11:55 AM PST Partner Mayor/President 3/6/2025 | 9:17 AM PST PREPARED BY LSL, LLP Certified Public Accountants License Number 2584 TECHNICAL PROPOSAL City of Rancho Cucamonga Professional Audit Services RFP No. #24/25-016 Date of Submission: January 8, 2025 Valid for 90 Days Authorized by: Christian Townes, CPA, Partner Christian.Townes@lslcpas.com 500 Technology Drive Suite 350 Irvine, CA 92618 (949) 829 - 8299 EXHIBIT "A" Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 1 www.lslcpas.com | 1 TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................................................................... 1  EXECUTIVE SUMMARY .......................................................................................................................... 2  Business License ................................................................................................................................... 2  Authorized Representative .................................................................................................................... 3  EXPERIENCE ........................................................................................................................................... 4  History & Size ........................................................................................................................................ 4  Government Auditing Standards ........................................................................................................... 4  GFOA Award Program .......................................................................................................................... 4  Single Audit Experience ........................................................................................................................ 4  THIRD-PARTY / SUBCONTRACTORS ................................................................................................... 5  STAFF BIOGRAPHIES ............................................................................................................................ 5  Engagement Team Resumes ................................................................................................................ 5  PROPOSAL RESPONSE ......................................................................................................................... 6  License to Practice in California ............................................................................................................ 6  Independence ........................................................................................................................................ 6  Qualifications and Experience ............................................................................................................... 6  Partner, Supervisory and staff qualifications and experience .............................................................. 10  Specific Audit Approach ...................................................................................................................... 13  Level of Staff Assigned and Number of Hours to be Assigned ............................................................ 17  Anticipation Of Potential Audit Problems, Roles & Responsibilities of the City ................................... 20  INSURANCE .......................................................................................................................................... 21  BENEFITS OF WORKING WITH LSL ................................................................................................... 21  Accounting Today Regional Leader .................................................................................................... 21  Our Core Values .................................................................................................................................. 22  Best of Accounting Award ................................................................................................................... 22  APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS ................................................................ 23  APPENDIX B – ENGAGEMENT TEAM RESUMES .............................................................................. 26  APPENDIX C – COI EVIDENCE OF COVERAGE ................................................................................. 33  Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 2 www.lslcpas.com | 2 EXECUTIVE SUMMARY January 8, 2025 Jevin Kaye, Finance Director & Ruth Cain, Procurement Division City of Rancho Cucamonga 10500 Civic Center Drive Rancho Cucamonga, CA 91730 LSL, LLP (“LSL”, “LSL CPAs”) is pleased to present our proposal for audit services, and we value the opportunity to demonstrate our professional qualifications and commitment to excellence to the City of Rancho Cucamonga (“City”). This proposal details our understanding of the scope of work outlined in the City’s RFP (#24/25-016) and showcases our firm’s experience, knowledge, and creative problem-solving capabilities in governmental auditing. With our extensive government experience, we are confident that LSL is the best-qualified accounting firm for the City. We understand that the City of Rancho Cucamonga is seeking a qualified firm to conduct the annual audit of the City‘s financial statements for a contract period of three years, beginning with the fiscal year ending June 30, 2025, through 2027, with the option to extend for two years, extending through 2029. This includes an audit of the City’s financial records and its component units. At LSL, we specialize in high-quality governmental audits aligned with GAAS and current GASB pronouncements including GASB 34. With our extensive experience in local government audits, we prioritize accuracy and thoroughness while ensuring timely report delivery. Our commitment to effective collaboration and transparency with the City ensures the integrity of its financial reporting and compliance with all regulatory requirements. BUSINESS LICENSE LSL affirms that we will obtain and maintain active business licensure with the City of Rancho Cucamonga no later than 5 business days from notification of award prior to being issued a Purchase Order. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 3 www.lslcpas.com | 3 AUTHORIZED REPRESENTATIVE Christian Townes is the designated Engagement Partner who will serve as the primary point of contact for this proposal. She is authorized to make representations on behalf of our firm and can be reached by phone at (949) 829-8299 or by email at Christian.Townes@lslcpas.com. Please contact Christian for any clarification or contract negotiations related to this proposal. We affirm that our proposal fully aligns with all terms, conditions, and requirements outlined in the City’s RFP. Our proposal is a firm and irrevocable offer for ninety (90) calendar days following the closing date of the receipt of proposals. We welcome the opportunity to discuss any aspect of our proposal to ensure your complete satisfaction. Sincerely, Christian Townes, CPA, Partner LSL, LLP 500 Technology Drive Suite 350 Irvine, CA 92618 (949) 829 - 8299 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 4 www.lslcpas.com | 4 EXPERIENCE HISTORY & SIZE LSL, LLP (“LSL”) is a limited liability partnership and is not a wholly owned subsidiary of a parent company. Headquartered in Irvine, California, LSL was established in 1929 and has grown as a leader in the government sector. We provide auditing, accounting, and consulting services to over 100 municipal clients, including counties, cities, water and electric utility districts, and special-purpose government agencies. Our government sector services encompass a broad range of specialties, including attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services. There have been no litigations against our firm in the past three years. GOVERNMENT AUDITING STANDARDS LSL understands its responsibilities to perform audits and issue opinions on the City’s financial statements as well as its fair presentation. Our financial audits are performed in accordance with the Generally Accepted Government Auditing Standards (GAGAS) issued by the Comptroller General of the United States, and our Single Audits are performed in accordance with the requirements of the Uniform Guidance. We will also evaluate the City's internal control system and provide recommendations for growth and improvement. GFOA AWARD PROGRAM LSL understands the significance of obtaining and maintaining the Certificate of Excellence in Financial Reporting from the GFOA. We have prepared financial statements and footnote disclosures for many of our local government clients who have received this award. Our governmental partners, managers, and seniors are closely involved in the preparation of these reports. Clients currently receiving the GFOA award are noted in Appendix A. SINGLE AUDIT EXPERIENCE Our firm has extensive experience in performing Single Audits for local government agencies under the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, Audit Requirements of Federal Awards (Uniform Guidance), and the United States Office of Management and Budget (OMB). Appendix A also includes a list of government audit clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table on the following page highlights recent examples of federal programs audited by LSL. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 5 www.lslcpas.com | 5 THIRD-PARTY / SUBCONTRACTORS LSL will not be subcontracting any portion of the City’s audit. All staff assigned to the audit portion of the engagement will be employed by LSL on a full-time basis and have extensive experience providing auditing services for cities, counties, and special-purpose government agencies. However, LSL does collaborate with a third-party for the preparation of the SCO (State Controller's Office) reports to ensure that the reports are prepared and filed correctly and timely by experts in those reports. STAFF BIOGRAPHIES ENGAGEMENT TEAM RESUMES Team resumes are available in Appendix B, which details the position of each team member in the firm, their educational background, and their years and types of experience. The resumes also provide information on relevant continuing education completed by the team members during the past three years. Proposed team members will be available for ninety (90) days from the proposal due date. LSL will promptly notify the City of any changes in key personnel prior to award. Federal Granting Agency AL #Name of Program U.S. Department of Agriculture 10.557 Special Supplemental Nutrition Program for Women, Infant, and Children U.S. Department of Housing & Urban Development 14.195 Section 8 Housing Assistance Payment Program U.S. Department of Housing & Urban Development 14.218 Community Development Block Grants/Entitlement Grants U.S. Department of Housing & Urban Development 14.228 Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii U.S. Department of Housing & Urban Development 14.239 HOME Investment Partnerships Program U.S. Department of Housing & Urban Development 14.856 Lower Incom e Housing Assistance Program Section 8 Moderate Rehabilitation U.S. Department of Housing & Urban Development 14.871 Section 8 Housing Choice Vouchers U.S. Department of Transportation 20.106 Airport Improvement Program U.S. Department of Transportation 20.205 Highway Planning and Construction U.S. Department of Transportation 20.507 Federal Transit Formula Grants U.S. Department of Treasury 21.019 Coronavirus Relief Fund (CRF) U.S. Department of Treasury 21.027 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) U.S. Environmental Protection Agency 66.458 Capitalization Grants for Clean Water State Revolving Funds U.S. Department of Health and Human Services 93.563 Child Support Enforcement U.S. Department of Health and Human Services 93.667 Social Services Block Grant U.S. Department of Health and Human Services 93.676 Unaccompanied Alien Children Program U.S. Department of Health and Human Services 93.778 Medical Assistant Program - Medicaid Cluster U.S. Department of Homeland Security 97.036 Disaster Grants- Public Assistance (Presidentially Declared Disasters) U.S. Department of Homeland Security 97.067 Homeland Security Grant Program Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 6 www.lslcpas.com | 6 PROPOSAL RESPONSE LICENSE TO PRACTICE IN CALIFORNIA LSL is a public accounting firm licensed by the State of California Department of Consumer Affairs as a Public Accounting Partnership. Additionally, we are members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. All key members assigned to this engagement are licensed or are in the process of obtaining their license as Certified Public Accountants by the State of California. INDEPENDENCE LSL meets the independence requirements set forth by the Government Auditing Standards. Our partners have no ownership in any other business organization that currently or will potentially provide services, supplies, materials, or equipment to the City. We annually distribute a listing of our firm's clients to all employees to ensure that any possible independence threats are properly documented and reviewed. QUALIFICATIONS AND EXPERIENCE LSL’s Government Team Resources LSL has a dynamic team of 16 partners and 145 employees. Our governmental staff consists of three (3) Partners, one (1) Director, three (3) Senior Managers, three (3) Managers, five (5) Supervisors, and nineteen (19) Professional Staff. Our educational programs are designed to provide our team members with the knowledge and skills necessary to deliver high-quality services to our clients. We offer a variety of training opportunities, including those provided by CalCPA, AICPA, Government Audit Quality Center, and Government Finance Officers Association (GFOA). Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 7 www.lslcpas.com | 7 Location Our Offices The Woodlands, TX 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 Phone: (936) 828-4587 Sacramento, CA 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 Phone: (916) 503-9691 LSL’s virtual footprint of our government team spans across the United States. At LSL, we regularly share staff and resources across our offices, providing you with access to our entire governmental team. This approach ensures that you receive the highest level of service and expertise possible, allowing us to deliver optimal results. Continuing Education At LSL, we strongly emphasize professional development and continuing education to ensure that our team members are up to date on the latest developments in governmental accounting and auditing. As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Current List of Municipal Clients A current list of municipal clients can be found in Appendix A, which includes LSL’s most significant engagements conducted within the last three (3) years that are similar to the engagement described in this request for proposal, including local agencies with 50,000 or more population and $100 million or more in general governmental revenues. Peer Review Our firm has participated in the AICPA Peer Review Program since its inception. All our peer reviews have covered governmental engagements and have received pass ratings. Our most recent peer review conducted by Spafford and Landry CPAs is provided on the following pages. Irvine, CA 500 Technology Dr., Suite 350 Irvine, CA 92618 Phone: (949) 829 - 8299 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 8 www.lslcpas.com | 8 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 9 www.lslcpas.com | 9 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 10 www.lslcpas.com | 10 Desk Review / Disciplinary Action There have been no disciplinary actions against our organization since its inception. Our Single Audit reports are desk reviewed either by the federal cognizant agency or the State Controller’s Office acting as the Oversight Agency. LSL has never had a report rejected by any of these agencies and is highly regarded and recognized by the staff of the State Controller’s Office for top-quality reports. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE Organizational Chart Ryan Domino, CPA Concurring Partner 12 years of experience Christian Townes, CPA Engagement Partner 12 years of experience Nielsine Sherk, CPA Sr. Manager 18 years of experience Keili Gonzalez Supervisor 6 years of experience Chloe Zabrek Supervisor 5 years of experience Staff Associate Staff Associate Staff Associate Staff Associate Kelly Telford, CPA Consulting Partner 22 years of experience Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 11 www.lslcpas.com | 11 Christian Townes, CPA Engagement Partner Christian has dedicated over 12 years to public accounting, with a focus on governmental services and auditing, including federal grant compliance. She has a strong background in navigating the complexities of GASB regulations, ensuring compliance and accuracy in financial processes. Additionally, Christian specializes in Single Audit planning and execution, along with a strategic approach to audit processes. She excels in evaluating and performing Single Audit-specific requirements, including major program determination, audit sampling, and reporting on the compliance of internal controls. As a Partner in LSL’s Government Services, Christian takes the initiative to work closely with her clients, troubleshooting their difficulties and developing the best processes that fit their needs. Ryan Domino, CPA Concurring Partner Ryan Domino has a strong technical focus and specializes in governmental accounting and auditing. He currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and regularly presents at our firm’s annual GASB Update and at CSMFO’s chapter meetings where he presents and trains on the latest GASB pronouncements. Ryan is an expert on Single Audit planning and execution and holds advanced certification from the AICPA. Ryan provides our clients with a competitive advantage as a member of GFOA’s Special Review Committee for the Award for Excellence in Financial Reporting and able to provide valuable insights and recommendations to help organizations achieve excellence in financial reporting. Quality of Staff Assurance LSL is committed to providing the City with a stable and experienced team that is dedicated to delivering a high-quality audit and exceptional service. We understand the importance of maintaining a strong and reliable team throughout the engagement, and we will work closely with the City to ensure that any staffing changes are handled with minimal disruption to the continuity of the engagement. Staff Continuity To ensure the quality of our staffing, we have established firm policies that prioritize the continuity of engagement teams, except in cases where an employee has left the firm or has been promoted. In the event of any changes in staffing at the Manager position and above, LSL will first seek written permission from the City. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 12 www.lslcpas.com | 12 Additional Resources The LSL team is comprised of top talent within the industry with comprehensive experience beyond governmental audit, accounting, and advisory services. When you partner with LSL, you gain access to the experience, knowledge, and resources of our entire team, including our consulting and technology teams. We are committed to helping finance departments thrive by providing the guidance, tools, and services that foster lifelong success for your finance team. We encourage our clients to tap into our full professional team of industry and product experts for your full-service consulting, staffing, and financial report automation solutions. Financial & Compliance Audits Consulting, Staffing & Training Technology & RPA Kelly Telford, CPA Consulting Partner Kelly is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. She has developed her expertise in public and local government accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology. She has taught classes for GFOA and CSMFO and has presented at annual conferences for GFOA, CSMFO and GFOAA. She has previously served as Finance Director for the cities of Costa Mesa and Seal Beach as well as the Los Angeles Community Development Agency. Kelly has a proven track record of helping agencies identify operating inefficiencies assisted in departmental reorganizations, identify internal control challenges, completing year- end close procedures, and serving as an outsourced Finance Director. Her practical recommendations are instrumental in helping our team and our clients achieve a high-quality and efficient audit while providing valuable feedback for organizational improvements. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 13 www.lslcpas.com | 13 Gail Gray, CPA Technology Partner Gail is a well-established expert in governmental accounting and finance technology. As a Partner in LSL's Technology Consulting Services, Gail has over 20 years of experience in training, mentoring, and automating finance teams. Gail specializes in process automation consulting, software implementation, customization, and robotic process automation (RPA), leveraging technology and automation for accounting, auditing, and financial reporting. With her extensive background in governmental accounting, Gail uniquely enables LSL to offer top-tier implementation services for government-specific financial management solutions. Gail and her team provide exceptional training and ongoing support, while ensuring that our software partners also uphold high standards and provide high-quality service. Training & Seminars LSL regularly leads training courses and seminars on introductory governmental accounting, financial reporting, internal control risk assessments, and all GASB updates and best practices. These resources are available to our clients for additional information and continued support. These will be opportunities made available through our firm to the City for training or continuing professional education credits on current issues in governmental auditing and accounting. SPECIFIC AUDIT APPROACH Our Understanding of the Scope of Work LSL understands that the City of Rancho Cucamonga is seeking a qualified firm to perform the City’s financial audit and related services, consisting of the following final financial and compliance reports: Audit of City’s Basic Financial Statements Audit of Rancho Cucamonga Fire Protection District Financial Statements Single Audit Audit of the Air Quality Improvement Trust Fund of the City Audit of the Landscape Maintenance District 1, Street Lighting District 2, and Assessment District PD-85 of the City Audit of the Landscape Maintenance Districts 2, 4-R, 6-R, and 7 of the City Audit of the Rancho Cucamonga Housing Successor Agency Agreed-upon procedures on the Gann Limit, Fire District’s Appropriations Limit, and Community Facility District’s 88-1 and 85-1 Appropriation’s Limit ACFR for the City and the Rancho Cucamonga Fire Protection District Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 14 www.lslcpas.com | 14 Project Management Methodology The LSL team holds itself to a high standard for timely delivery and effective communication of key milestones. We understand the importance of being responsive and communicative with our clients, and we are committed to being available on a day-to-day basis to address any questions or concerns that may arise throughout the engagement. Areas of concern and potential findings will be communicated to the City as soon as they are discovered to mitigate any surprises throughout the audit. At the beginning of the engagement, we will hold a planning meeting with you to determine the timeline, expectations, and desired outcome of the agreement on the issuance of financial statements. Throughout the process, we will have periodic meetings with you to provide updates and discuss progress. Upon award of contract and per the City’s requested timeline, LSL will work closely with the City to develop an audit plan and timeline to ensure compliance and timely deliverables. As part of the Scope of Work and time requirements, we assume that the City will provide all necessary information needed to complete the financial statement and single audits. We will proactively identify and communicate any pending information from the City that could hinder our ability to complete the objectives of the engagement in a timely manner. Proposed Work Plan At LSL, we use a governmental audit program that will be tailored to the City’s operations to accommodate its specific circumstances and organizational structure. LSL’s audit programs are organized by financial statement category, which we believe is the most effective and efficient approach to substantially reduce the risk of omitting important procedures. Our approach is designed to increase audit efficiency by linking financial statement assertions, audit objectives, and procedures that are basic to most governmental audit engagements. Project Schedule LSL assumes under the time requirements that the City will have closed its books and will present the LSL team with general ledger balances that are auditable prior to the start of fieldwork. A sample timeline is provided on the following page displaying the key stages of the audit and the deliverables. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 15 www.lslcpas.com | 15 Proposed Segmentation Our audit services will be divided into the three succeeding segments: Segment 1 – Planning and Obtaining an Understanding Segment 2 – Financial Audit Testing Segment 3 – Conclusion Segment 1 – Planning and Obtaining an Understanding LSL will provide an annual audit communication letter, engagement letter, and Government Audit Quality Center Information letter. The audit communication letter is to be provided to the City Council and/or Board of Directors and can be communicated orally to those charged with governance, if requested, where we will discuss planning stages, responsibilities of the City Council and/or Board of Directors, Auditors, and Management, and provide an opportunity to communicate with us as the auditors. Segment 2 Year-end Testing will begin by the end of October or earlier, if possible. Exit Conference will be held on the last day of fieldwork. Entrance Conference will be held before interim begins. Segment 1 Interim Testing will begin in May or earlier, if possible. September - November Segment 3 Draft Audit Letters and Other Reports will be provided to the City no later than November 1st. Final ACFR Report and Approval will be delivered no later than December 1st. Delivery of Financial Statements and Presentation of Financials - LSL will be available as requested to present the results of the financial audit. December August May Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 16 www.lslcpas.com | 16 An entrance conference will be scheduled prior to the agreed-upon week of interim testing to ensure that the transition to new auditors is as seamless as possible. Discussions in this meeting include, but are not limited to, an understanding of reports and key milestones for deliverables, prior audit reportable conditions and issues, and “Prepared by Client” (PBC) schedules. A trial balance is requested for our planning meeting to assist the LSL team in obtaining knowledge of economic conditions, industry elements, and new standards that may affect the City. We will compile a list of PBC items based on our review of the prior year's financial statements and the gathered information that will be provided to the City one month prior to testing or earlier if requested. We operate on a paperless software system and provide a secured cloud-based portal for all clients. The City will have a separate folder that can be customized to organize, and upload requested schedules, support documents, etc. After interim testing, we will hold an exit meeting to discuss potential weaknesses, if any, and provide feedback for improvements or valuable information gathered from any outside clientele that would benefit the City. Segment 2 – Financial Audit Testing Based on the information gathered thus far, we will utilize a customized audit program based on the risk assessment developed during our assessment of the City’s internal controls and Government Auditing Standards. The primary benefit of a tailored program is a focused set of procedures to address relevant areas. We believe that this approach is both effective and efficient and is critical to compliance with other material laws and regulations. We will annually compile another customized PBC list for the year-end testing provided at least one month prior or earlier if requested. We will request trial balances from the City for our analytical review to be provided one week before testing is scheduled to commence. Year-end testing will include testing of the balance sheet, revenue and expenditures accounts, confirmation of selected balances, analytical procedures, evaluation of the internal controls, and preparation of reports and letters. Segment 3 – Conclusion Based on our year-end exit meeting we will discuss a plan to finalize the financial statements according to the timetable of the City. We will schedule dates for the initial and final drafts including time for LSL’s and the City’s review and approval of the financial statements. This period will also account for review by the engagement partner and Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 17 www.lslcpas.com | 17 quality assurance partner. After the review and receipt of the signed Representation Letter from the City, LSL will provide a final report by mid-December of each year. LEVEL OF STAFF ASSIGNED AND NUMBER OF HOURS TO BE ASSIGNED Segment/Task Partners Manager Senior Experienced Staff Staff Total City's Financial Audit and ACFR Preparation Interim test work 6 15 30 40 40 131 Year-End test work 0 10 40 80 140 270 Report/Review/Supervision 24 55 80 0 0 159 Subtotal 30 80 150 120 180 560 Fire Protection District Audit and Financial Statements Test work 003 8 819 Report/Review/Supervision 2 3 8 2 0 15 Subtotal 2 3 11 10 8 34 Single Audit Test work 006 0 2026 Report/Review/Supervision 2 5 5 0 2 14 Subtotal 2 5 11 0 22 40 Air Quality Improvement Trust Fund Audit and Financial Statements Test work 002 0 68 Report/Review/Supervision 1 2 2 0 2 7 Subtotal 124 0 815 LMD 1, SLD 2 and PD-85 Audit and Financial Statements Test work 002 0 68 Report/Review/Supervision 1 2 2 0 2 7 Subtotal 124 0 815 LMDs 2, 4-R, 6-R, and 7 Audit and Financial Statements Test work 002 0 68 Report/Review/Supervision 1 2 2 0 2 7 Subtotal 124 0 815 Housing Successor Agency's Compliance Audit Test work 001 0 34 Report/Review/Supervision 1 1 1 0 2 5 Subtotal 112 0 59 City GANN Limit Report Test work 000 0 11 Report/Review/Supervision 0 1 1 0 0 2 Subtotal 011 0 13 Fire District GANN Limit Report Test work 000 0 11 Report/Review/Supervision 0 1 1 0 0 2 Subtotal 011 0 13 CFD 88-1 GANN Limit Report Test work 000 0 11 Report/Review/Supervision 0 1 1 0 0 2 Subtotal 011 0 13 CFD 85-1 GANN Limit Report Test work 000 0 11 Report/Review/Supervision 0 1 1 0 0 2 Subtotal 011 0 13 TOTAL PROPOSED HOURS: 38 99 190 130 243 700 Hours proposed are for 1 major program. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 18 www.lslcpas.com | 18 Audit Sampling For tests of controls, we use audit sampling. Tests of controls are procedures directed towards determining the effectiveness of the design or operation of an internal structure policy or procedures. Audit sampling is typically used for tests of controls and compliance that involve the inspection of documents and reports indicating the performance of the applicable policy or procedures and compliance with the applicable laws and regulations. Sample sizes vary based on the population and risk-based calculations. Type And Extent of Analytical Procedures For the audits of the financial statements, we will use analytical procedures as an overall review of the financial information in the preliminary and final stages of the audits. These procedures are designed to assist us in planning our audits and in assessing the propriety of the conclusions reached and evaluating the overall financial statement presentation. The procedures to be utilized consist of determining expectations for changes to significant revenue, expenditure, and balance sheet accounts, reading the financial statements and related notes, reviewing the budget and related material, and focusing on overall relationships within the financial statements. Once determined, these are reviewed to evaluate if the changes appear reasonable or require further analysis. For all significant differences, explanations are obtained as to why the situation occurred and additional substantive procedures may be applied, and related evidence is gathered to resolve concerns and questions. Electronic Data Processing Software & AI Technology LSL is always at the forefront of technology and finding ways to increase efficiency in our audits. Our goal is to effectively streamline the audit process to make the burden of an audit easier on our clients and ease any technical disagreements. Caseware At LSL, we partner with and utilize Caseware to perform our audits and retain electronic workpapers and supporting documentation in a fully cloud-based platform. During our preparation of the ACFR, all financial statements and schedules are linked to Caseware and audit documentation, ensuring accuracy and consistency with City records and eliminating the risk of manual errors. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 19 www.lslcpas.com | 19 LSL Caseware Cloud Portal Our web-based portal system provides clients with the ability to securely share information in a user-friendly platform. Integrated with Caseware OnPoint Collaborate, this state-of-the-art tool enhances collaboration in accounting and auditing. It enables direct communication with clients throughout the audit process for feedback exchange and tracks activities such as audit requests, client uploads, and progress. Access to the secure hub can be restricted to relevant individuals. This tool eliminates the necessity of sending sensitive documents via email, enhancing efficiency. Client dashboards are customizable to meet specific needs. Data Extraction & Audit Analytics We believe software is only as effective as those who know how to use it. That's why we train all our staff and incorporate the use of Caseware Analytics AI and IDEA into our audit approach. These two complement each other to create a risk-based transaction analysis tool. We utilize them to scan transaction sets, identify exceptions warranting further investigation, and provide additional assurances to our clients. These tools offer users a high-level summary and reduce time spent in transaction analysis by automatically performing multiple tests on the entire transaction set. They assist in identifying duplicate payments, high-risk journal entries, and developing expectations for analytical procedures used during the audit. Experience With ERP Systems Many of our clients have updated their system software with new Enterprise Resource Planning (ERP) systems over the years. We make ourselves available for questions and recommendations, including assistance with the vendor selection process. Our clients' transition to more sophisticated ERP systems has allowed us to gain a better understanding of each system and its unique capabilities. We often obtain read-only access to our clients’ software and can work directly within the system. This allows us to provide useful observations and recommendations regarding internal controls and facilitates efficient audit test work. Some of the ERP and Property Tax Systems we have extensive experience with include Tyler Technologies (Munis, New World, Eden, Incode), One Solution, Oracle, SAP, Infor, Megabyte, and more. Determining Laws and Regulations Subject to Audit Test Work The Laws and Regulations that will be subject to audit test work are determined by the applicable laws, regulations, contracts, and grant agreements which we identify through the understanding we obtain of the City and our extensive experience with other governmental entities. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 20 www.lslcpas.com | 20 Drawing Audit Samples for Compliance The sampling procedures test the operating effectiveness of an internal control structure policy or procedure by determining how the policy or procedure was applied, the consistency with which it was applied during the audit period, and by whom it was applied. We will draw samples for disbursements, receipts, and payroll when applicable. Each document selected will be tested for various attributes that are designed to verify compliance with different aspects of internal controls and applicable laws and regulations. Additionally, each sample item will be tested for coding to the proper accounts and posting to the general ledger. LSL’s Approach to Understanding the City’s Internal Control Structure LSL will perform procedures as required by SAS 122-125 to obtain an understanding of the City and its environment along with assessing the risks of material misstatements in order to gain insight into the internal control structure over the financial statements. Our review will encompass various areas such as financial reporting, cash, revenues and receivables, utility billing, expenses, accounts payable, payroll, capital assets, long-term debt, and grant reporting. We will issue a management letter (SAS 115 Letter) that identifies any significant deficiencies and/or material weaknesses found as required by the Government Auditing Standards. Throughout the year, LSL will conduct interviews with the management of finance and responsible parties of each audit section to understand the processes and controls through observation and discussions. We will also perform sampling transactions as part of a “walk-through” process to verify that the system of control is functioning as per the policies and procedures. Working Paper Retention and Access All working papers and reports will be retained at LSL’s expense for a minimum of seven (7) years unless otherwise notified in writing by the City of the need to extend that retention period. Upon written request, we will make working papers available to parties designated by the City. Furthermore, we will respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. ANTICIPATION OF POTENTIAL AUDIT PROBLEMS, ROLES & RESPONSIBILITIES OF THE CITY Outside of the complexities that arise with the implementation of GASB pronouncements, LSL does not anticipate any audit problems or conflicts in the performance of the services requested in this RFP. Our approach is to partner with our clients to provide information, training, and the resources necessary to successfully implement any new changes in accounting principles. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 21 www.lslcpas.com | 21 As mentioned previously, LSL assumes that the City will provide all necessary information to complete the financial statement and single audits. The LSL assigned to this engagement will help identify and communicate any pending information needed from the City that may hinder the engagement's objectives and timely completion. Additionally, LSL assumes that the City will have closed its books and present auditable general ledger balances. INSURANCE LSL confirms that we will maintain the minimum insurance requirements throughout the entire term of this engagement. We have provided evidence of coverage with the submission of our proposal in Appendix C, and the actual insurance form will be provided upon the award of contract. BENEFITS OF WORKING WITH LSL LSL is a multi-location firm with formidable resources that provides a personal feel and hands- on client experience. ACCOUNTING TODAY REGIONAL LEADER LSL CPAs has again been recognized as an Accounting Today Regional Leader in 2024. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 22 www.lslcpas.com | 22 OUR CORE VALUES As we continue to grow and evolve, we recognize our core values needed to grow and change with us. Our values weren’t decided on by management and handed down, every member of the LSL team worked together to share what values matter most to us. From there, we came up with the following five core values that embody how we approach each other, our work, and our clients. BEST OF ACCOUNTING AWARD LSL CPAs delivers high-quality service and has consistently secured the ClearlyRated Best of Accounting award. This exclusive program awards accounting firms who demonstrate high-level service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients. Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 23 www.lslcpas.com | 23 APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 24 www.lslcpas.com | 24 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 25 www.lslcpas.com | 25 * Rosemead Mr. B. Chua, Director of Finance F, S 5 626-569-2146 * Roseville Mr. D. Kaufman, Assistant City Manager/CFO F, S 2 916-774-5314 * San Bernardino Municipal Water Dept. Ms. C. Mouser, Director of Finance F, S, U 4 909-453-6010 * San Clemente Mr. J. Rahn, Finance Director F, S 5 949-361-8360 * San Joaquin Council of Governments Ms. G. Orosco, Manager of Finance F, S 4 209-235-0454 * San Juan Capistrano Mr. K. Al-Imam, Chief Financial Officer F, S 2 949-443-6301 * San Marino Mr. M. Siegfried, Controller F 29 626-300-0700 * Santa Clarita Valley Water Agency Ms. A. Aguer, Controller F, U 4 661-513-1237 * Santa Monica Mr. S. Gomez, Financial Operations Manager F, S 7 310-458-8281 Shafter Mr. R. Sanchez, Administrative Services Director F, S 2 661-746-5043 Sonoma County Fair & Exposition, Inc. Mr. M. Margetts, Fair Financial Officer F 5 707-573-9342 Sutter County Mr. N. Black, Auditor-Controller F, S 4 530-822-7439 * Three Valleys Water District Mr. J. Velasquez, Chief Financial Officer F, U 15 909-621-5568 * United Water Conservation District Mr. B. Zahn, Chief Financial Officer F, S, U 1 805-695-3870 * Vacaville Mr. K. Matsumiya, Director of Finance F, S 3 707-449-5688 * Vallejo Ms. F. Cruz, Assistant Director, Finance F, S 4 707-648-5542 * West Sacramento Ms. B. Robertson, Finance Manager F, S 1 916-617-4584 * Yolo County Mr. T. Haynes, Chief Financial Officer F, S 4 530-666-8050 * Yorba Linda Water District Ms. D. Lugo, Finance Manager F 2 714-701-3040 S - Single Audit I - Internal Audit C - Consulting U - Utility Agency * Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards Service Codes: F - Financial Audit Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 26 www.lslcpas.com | 26 APPENDIX B – ENGAGEMENT TEAM RESUMES Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Christian Townes, CPA ENGAGEMENT PARTNER ACHIEVEMENTS With over 12 years of experience in public accounting, Christian brings a strong focus on governmental services and auditing, including federal grant compliance. She has a strong background in navigating the complexities of GASB regulations, ensuring compliance and accuracy in financial processes. Additionally, she specializes in Single Audit planning and execution and excels in evaluating requirements, including major program determination, audit sampling, and internal control compliance. CONTINUING EDUCATION As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Christian meets the requirements for Government Auditing Standards in governmental CPE. EXPERIENCE She has performed all phases of our government audits, including special districts, ACFR audits, and Single Audits. Her work has entailed: •Assisting in the preparation of the Annual Comprehensive Financial Report •Performing analytical and substantive audit procedures on account balances •Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards and the provisions of the Single Audit Act and the Uniform Guidance •Assisting clients with the preparation and review of GASB related journal entries, including implementation of GASB 87 and 96. MEMBERSHIPS AICPA, GFOA, CSMFO EDUCATION Bachelor of Science in Accounting with a minor in Economics – The College at Brockport, State University of New York A.S. in Business Administration – Genesee Community College LICENSE Certified Public Accountant New York ENGAGEMENTS Bay Area Clean Water Agencies City of Citrus Heights City of Diamond Bar City of Dixon City of Escalon, TDA City of Galt City of Lathrop, TDA City of Lodi, TDA City of Ripon, TDA City of Shafter City of Stockton, TDA City of Tracy, TDA City of Vacaville City of Vallejo County of Sutter DSRSD-EBMUD Recycled Water Authority East Bay Municipal Utility District Freeport Regional Water Project Monterey One Water San Joaquin COG San Joaquin Rail Commission, TDA San Joaquin Transit District, TDA San Joaquin County, TDA Santa Clarita Valley Water Agency Sutter County Upper Mokelumne River Watershed Authority City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 27 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Ryan Domino, CPA CONCURRING PARTNER ACHIEVEMENTS Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA), and has been a presenter for CSMFO’s annual conference and various chapter meetings. He has been involved with teaching current audit and accounting-related material at LSL’s in-house training seminars, and annual GASB Update. CONTINUING EDUCATION As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Ryan meets the requirements for Government Auditing Standards in governmental CPE. EXPERIENCE Ryan has over 11 years of experience in governmental auditing including financial statement audits, preparation of Annual Comprehensive Financial Reports, Housing Successor compliance audits, TDA compliance audits, Single Audits, Federal Student Financial Aid audits, and various consulting and agreed-upon procedures projects. Ryan is one of the firm’s leaders in ensuring audit quality control and Government Practice training for staff. He is a regular presenter at the firm’s annual GASB Update where he has presented training to our clients on the latest GASB pronouncements and has been a presenter for CSMFO’s chapter meetings and the annual CSFMO Conference. Some of his presentations have covered: •General auditing in accordance with GAGAS •Accounting for capital assets •GASB Statement Nos. 89, 90, 91, 94, 100, 101, and 102 •Fraud risks and internal controls MEMBERSHIPS AICPA, CalCPA, CSMFO, GFOA, GFOAT EDUCATION Bachelor of Arts Degree in Business Administration, with an emphasis in Accounting – California State University, Fullerton LICENSES Certified Public Accountant California Texas AUDIT ENGAGEMENTS City of Agoura Hills, CA City of Big Bear Lake, CA City of Brea, CA City of Burbank, CA City of Carlsbad, CA City of Cathedral City, CA City of Chino Hills, CA City of Dana Point, CA City of Kress, TX City of La Quinta, CA City of Lompoc, CA City of Monrovia, CA City of Moorpark, CA City of Oceanside, CA City of Orange, CA City of Palm Desert, CA City of Rialto, CA City of Rosemead, CA City of San Clemente, CA City of San Juan Capistrano, CA City of Santa Monica, CA Monterey Peninsula Airport District Orange County Water District Orchard Dale Water District Rainbow Municipal Water District San Bernardino Muni. Water Dept. Three Valleys Muni. Water District United Water Conservation District Yorba Linda Water District City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 28 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Kelly A. Telford, CPA CONSULTING PARTNER ACHIEVEMENTS Kelly has developed her expertise in accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology. She has taught classes for GFOA and has presented at annual conferences for CSMFO and GFOA. She is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. CONTINUING EDUCATION As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Kelly meets the requirements for Government Auditing Standards in governmental CPE. EXPERIENCE Kelly has over 20 years of experience working both in and with government agencies including counties, cities, successor agencies, special districts, and Native American tribes and tribal casinos. She served as a Director of Finance/City Treasurer for the cities of Seal Beach and Costa Mesa and has served as the Director of Financial Management for the Los Angeles County Community Development Agency. She has also been an auditor and consultant for 14 years specializing in the audits of government agencies. Her work has entailed: Implementation of month-end and year-end close procedures, and preparation of the ACFR submissions for the GFOA award Implementation of new ERP systems, including PeopleSoft, Incode and QuickBooks. Audit review and technical assistance to deliver the most up-to- date information with current GASB pronouncements Presentations to City Councils, Board of Supervisors, Boards of Directors, and Audit Committees Technical reviewer for the Government Finance Officers Association (GFOA) Certificate of Excellence in Financial Reporting and the Distinguished Budget Presentation Award Program Serves on the CSMFO Professional Standards Committee MEMBERSHIPS AICPA, CalCPA, CSMFO, GFOA, TML (Texas Municipal League), GFOA-T (GFOA of Texas) EDUCATION Bachelor of Arts, Accounting – California State University, Fullerton LICENSE Certified Public Accountant: California Texas CONSULTING ENGAGEMENTS City of Manteca, CA City of Marfa, TX City of Moses Lake, WA City of Rancho Cucamonga, CA City of Redondo Beach, CA City of Tustin, CA City of Winters, CA County of Hidalgo, TX County of San Bernardino, CA Georgetown Divide Public Utilities District, CA Pomona Valley Transportation Authority, CA Puente Hills Habitat Preservation Authority, CA Yolo County Public Agency Risk Management Insurance Auth., CA AUDIT ENGAGEMENTS City of Barstow City of Downey City of Inglewood City of Irwindale City of Lake Elsinore City of Manhattan Beach City of Palm Desert City of Redondo Beach City of Shafter Mesa Water District Ontario International Airport Auth. City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 29 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Keili Gonzalez SUPERVISOR ACHIEVEMENTS Keili has earned the AICPA Intermediate Single Audit certificate and holds an extensive background in demonstrating her ability to perform single audits in accordance with the requirements of the Uniform Guidance. She brings with her extensive experience, knowledge, and application of GAAP, Auditing Standards (GAS & GAAS), and the principles of internal accounting `controls as it relates to client-specific matters. CONTINUING EDUCATION As a firm policy, all LSL government staff are required to complete a minimum of 40 hours of continuing education every year, with at least 24 hours in governmental accounting and auditing in a two-year period. Keili meets the requirements for Government Auditing Standards in governmental CPE. EXPERIENCE During her time with the firm, Keili has performed and supervised all phases of our government audits, including ACFR audits, successor agency audits, and Single Audits. Her work has entailed: •Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR) •Performing analytical and substantive audit procedures on account balances •Planning the nature, timing and extent of procedures involved in the audit process •Assisting clients with the preparation and review of GASB 68 and 75 journal entries •Review of capital asset, debt service, federal and state award schedules EDUCATION Bachelor of Science in Business Administration, Accounting – California State Fullerton LICENSE CPA In Progress AICPA Intermediate Single Audit Certificate ENGAGEMENTS City of Big Bear lake City of Chino Hills City of Downey City of Fullerton City of Grand Terrace City of Inglewood City of Lompoc City of Manhattan Beach City of Moorpark City of Orange City of Pasadena City of Pomona City of Rancho Cucamonga City of Riverside City of Rosemead City of San Juan Capistrano City of Santa Monica City of Shafter City of Vallejo Coachella Valley Water District County of Sutter County of Yolo East Bay Municipal Utility District Easter Municipal Water District Jurupa Community Services District Ontario International Airport Orchard Dale Water District San Bernardino Municipal Water District San Joaquin County of Governments Santa Clarita Valley Water Agency Southeast Animal Control Authority City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 30 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Nielsine Sherk, CPA SENIOR MANAGER ACHIEVEMENTS Nielsine has worked on a variety of clients to help them meet their financial reporting requirements. She brings her experience in financial audits, ACFR and financial statement preparation, plus in- depth knowledge of GASB implementation consulting. CONTINUING EDUCATION 208 total hours over the last three years, 145 of which were in governmental accounting and auditing subjects. Nielsine meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Nielsine has performed all phases of our government audits and worked on a variety of governments, including state, cities, counties, and special districts for their financial statement audits. Her work has entailed: •Planning the nature, timing, and extent of procedures involved in the audit process audits in accordance with the provisions of Government Auditing Standards •Performing analytical and substantive audit procedures on account balances •Assisting in the preparation of the Annual Comprehensive Financial Report •Providing technical reviews of audit engagements to ensure compliance. EDUCATION Bachelor of Science, Accounting – University of Nevada, Reno LICENSE Certified Public Accountant – Nevada, 2015 ENGAGEMENTS City of San Marino, CA City of Burbank, CA City of Napa, CA Placer County, CA State of Nevada NV Self Insurance Trust Fund NV Prepaid Tuition Trust Fund South Coast Air Quality Municipal District, CA Washington State University City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 31 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Chloe Zabrek SUPERVISOR ACHIEVEMENTS Chloe is a skilled and dedicated senior auditor with a comprehensive understanding of all audit procedures and the ability to identify and resolve complex issues. As an experienced auditor, Chloe plays a crucial role in ensuring accuracy and compliance with both regulatory and professional standards, while focusing on the quality and effectiveness of the audit engagement. CONTINUING EDUCATION 120 total hours over the last three years, 100 of which were in governmental accounting and auditing subjects. Chloe meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE With 5 years of experience in governmental auditing, Chloe has honed her expertise in all phases of government audits, including ACFR audits, housing authority audits, Transportation Development Act audits, Air Pollution Districts, State department audit, and Single Audits. Her work has entailed: •Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR) •Performing analytical and substantive audit procedures on account balances •Planning the nature, timing and extent of procedures involved in the audit process •Assisting clients with the preparation and review of GASB 68, 75, 87, and 96 journal entries •Review of capital asset, debt service, federal and state award schedules EDUCATION Bachelor of Arts in Business Administration with an emphasis in Accounting – Seattle University Master of Professional Accountancy – University of California, Davis LICENSE CPA: In-Progress ENGAGEMENTS County of Butte County of El Dorado City of Diamond Bar City of Rancho Cucamonga City of Redondo Beach City of Roseville City of San Juan Capistrano City of Vallejo South Coast Air Quality District Engagements at CLA County of Butte County of Calaveras County of El Dorado County of Glenn County of Humboldt County of Kern County of Lake County of Mendocino County of Monterey County of Placer County of San Bernadino County of San Joaquin County of San Luis Obispo County of Shasta County of Stanislaus County of Tehama County of Trinity County of Yuba City of Benicia City of Porterville City of Redding California Housing Finance Agency California Infrastructure and Economic Development Bank California Cannabis Authority Eastern Sierra Transit Authority Sacramento Law Library San Luis Obispo APCD City of Rancho Cucamonga Professional Audit Services www.lslcpas.com | 32 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 33 www.lslcpas.com | 33 APPENDIX C – COI EVIDENCE OF COVERAGE Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 34 www.lslcpas.com | 34 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 City of Rancho Cucamonga; RFP # #24/25-016 Professional Audit Services 35 www.lslcpas.com | 35 Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 2 Thank you! Docusign Envelope ID: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Electronic Record and Signature Disclosure Certificate Of Completion Envelope Id: F6BE0B24-9F7B-4917-ADE4-9779D4FEA910 Status: Completed Subject: Complete with Docusign: CO 2025-025 LSL Auditing Services PSA FY 2025 2026 - Revised Source Envelope: Document Pages: 52 Signatures: 4 Envelope Originator: Certificate Pages: 5 Initials: 0 Melanie Morris AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) melanie.morris@cityofrc.us IP Address: 199.201.174.250 Record Tracking Status: Original 3/4/2025 11:30:38 AM Holder: Melanie Morris melanie.morris@cityofrc.us Location: DocuSign Signer Events Signature Timestamp Christian Townes christian.townes@lslcpas.com Partner Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 38.162.167.157 Sent: 3/4/2025 11:44:58 AM Viewed: 3/4/2025 11:53:34 AM Signed: 3/4/2025 11:55:15 AM Electronic Record and Signature Disclosure: Accepted: 3/4/2025 11:53:34 AM ID: ca7e01e8-fe37-42e0-ad35-fd70befa2b56 L. Dennis Michael Dennis.Michael@CityofRC.us Mayor/President City of Rancho Cucamonga Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 199.201.174.250 Sent: 3/6/2025 9:00:07 AM Viewed: 3/6/2025 9:16:07 AM Signed: 3/6/2025 9:17:24 AM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Melanie Morris melanie.morris@cityofrc.us Executive Assistant City of Rancho Cucamonga Security Level: Email, Account Authentication (None) Using IP Address: 199.201.174.250 Sent: 3/4/2025 11:55:17 AM Viewed: 3/4/2025 2:10:54 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Certified Delivery Events Status Timestamp City Clerk Services Department ClerkContracts@CityofRC.us City Clerk City of Rancho Cucamonga Security Level: Email, Account Authentication (None) Using IP Address: 199.201.174.250 Sent: 3/6/2025 9:17:26 AM Viewed: 3/6/2025 9:23:41 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 3/4/2025 11:44:58 AM Certified Delivered Security Checked 3/6/2025 9:23:41 AM Signing Complete Security Checked 3/6/2025 9:17:24 AM Completed Security Checked 3/6/2025 9:23:41 AM Payment Events Status Timestamps Electronic Record and Signature Disclosure ELECTRONIC RECORD AND SIGNATURE DISCLOSURE From time to time, City of Rancho Cucamonga City Clerk's Office (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system. Getting paper copies At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below. Withdrawing your consent If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below. Consequences of changing your mind If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us. All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/22/2022 12:08:29 PM Parties agreed to: Christian Townes, Christian Townes Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us. How to contact City of Rancho Cucamonga City Clerk's Office: You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows: To contact us by email send messages to: jasmin.oriel@cityofrc.us To advise City of Rancho Cucamonga City Clerk's Office of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at jasmin.oriel@cityofrc.us and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address. If you created a DocuSign account, you may update it with your new email address through your account preferences. To request paper copies from City of Rancho Cucamonga City Clerk's Office To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to jasmin.oriel@cityofrc.us and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any. To withdraw your consent with City of Rancho Cucamonga City Clerk's Office To inform us that you no longer wish to receive future notices and disclosures in electronic format you may: i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to jasmin.oriel@cityofrc.us and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process.. Required hardware and software The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guide- signing-system-requirements. Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system. By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:  You can access and read this Electronic Record and Signature Disclosure; and  You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and  Until or unless you notify City of Rancho Cucamonga City Clerk's Office as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by City of Rancho Cucamonga City Clerk's Office during the course of your relationship with City of Rancho Cucamonga City Clerk's Office.