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LSL - Lance, Soll & Lunghard, LLP PREPARED BY: Lance, Soll & Lunghard, LLP Certified Public Accountants 203 N. Brea Blvd., Suite 203 Brea, California 92821 (714) 672-0022 CONTACT PERSON: Bryan S. Gruber CPA, Engagement Partner Bryan.Gruber@lslcpas.com (714) 672-0022 May 15, 2020 Proposal Presented to CITY OF LA QUINTA Proposal for FEMA Project Administration Services TABLE OF CONTENTS Page No. INTRODUCTORY LETTER .................................................................................................................... 1 TECHNICAL PROPOSAL ...................................................................................................................... 2 A. QUALIFICATIONS AND OPERATIONAL EXPERIENCE ....................................................... 2 Firm’s Qualifications and Experience ......................................................................................... 2 B. SERVICE EXPERIENCE ........................................................................................................... 3 Firm’s Experience in Performing Work ...................................................................................... 3 C. PROJECT TEAM INFORMATION ............................................................................................ 4 Key Personnel Education, Experience and Professional Credentials ....................................... 4 Project Organization ................................................................................................................... 5 Resumes .................................................................................................................................... 5 D. PROJECT APPROACH ............................................................................................................. 9 COVID-19 Project Approach ...................................................................................................... 9 E. PROJECTS RATES FOR ADVISORS .................................................................................... 10 Rates/Estimated Fee ................................................................................................................ 10 www.lslcpas.com INTRODUCTORY LETTER May 15, 2020 Attention: Karla Romero, Finance Director City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Thank you for the opportunity to present the City of La Quinta with our proposal to manage documentation associated with COVID-19 pandemic. We plan to instill a control assessment of documentation and be an advisor and manager of all associated documentation. As you expect, we began the process of assembling our proposed delivery team by considering the information you provided us, knowledge we possess through existing relationships, audit exposure to federal grants, and experiences in delivering services to other cities. We believe that the unique blend of experienced personnel coupled with our knowledge of California municipal entities make our LSL team perfectly suited to be your project manager over the Federal Emergency Management Assistance (FEMA) grant. We have the breadth of experience and depth of knowledge to deliver the proactive, industry-specific service that you deserve. Our commitment to quality and timely service, range of service capabilities, and spirit of innovation and teamwork will exceed your expectations. On behalf of LSL, we pledge that the City of La Quinta will consistently receive high-quality service from our finest people. We are excited about the opportunity to work with you and trust that our sincere interest in building a long and valued relationship is evident. This proposal is a firm and irrevocable offer for a minimum of 180 days. For purposes of this proposal, Bryan S. Gruber, CPA, Partner, is entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City. I can be reached at the address below or by phone at (714) 672-0022, or through email at Bryan.Gruber@lslcpas.com. Sincerely, Bryan S. Gruber, Partner LANCE, SOLL & LUNGHARD, LLP www.lslcpas.com 1 TECHNICAL PROPOSAL QUALIFICATIONS AND OPERATIONAL EXPERIENCE Lance, Soll & Lunghard, LLP (LSL) is a leader in providing services to local government clients. We provide outsourced services to Municipalities located in California. Our programs, tools and resources are constantly being enhanced to help ensure that we can address the most current regulatory focus areas and provide the most value-added perspective to our clients. FIRM’S QUALIFICATIONS AND EXPERIENCE LSL is a public accounting firm licensed by the State of California, Department of Consumer Affairs, as a Public Accounting Partnership. All of our partners and managers are Certified Public Accountants licensed by the State of California. As a firm, we are members of the American Institute of Certified Public Accountants and the California Society of Certified Public Accountants. We provide general tax, attest and advisory services and have proactively developed a full-service team to address industry-specific and organization challenges. Some specific services that we provide include financial auditing and CAFR preparation, internal auditing, program specific audits, performance audits, and compliance audits in programs such as Housing Authorities, Child Care, TDA, AQMD, Proposition A, Proposition C, Measure M, TOT, and various accounting procedures reviews. We also work with cities in a variety of capacities to fill interim roles and special project assistance. We have three offices in California, which provide services to the western region of the United States. Our headquarters are located in Orange County in the City of Brea, California. We also have two other offices in Sacramento and Santa Ana. Our services provided to the City of La Quinta will be performed from our Brea office. Our firm has approximately 120 employees including seventeen partners and professional staff of approximately ninety. Governmental staff consists of four partners, two senior managers, three managers, five supervisors, six seniors and fifteen staff accountants. Depending on the need, LSL may use sub-contractors as subject matter experts. All sub-contractors will be communicated to the City for approval prior to the commencement of work. Our focused effort is to obtain and retain quality staff to maintain staff consistency and provide quality services. www.lslcpas.com 2 SERVICE EXPERIENCE FIRM’S EXPERIENCE IN PERFORMING WORK OF SIMILAR NATURE All key personnel proposed for the City of La Quinta are familiar with governmental entities and their internal control needs. As described under Key Personnel Education, Experience and Professional Credentials, each key engagement employee proposed for the assignment has outstanding qualifications. The Partner has extensive experience City governments and federal audit guidelines. The partner has served on similar engagements for the City of Burbank, Orange County Fire Authority, San Diego County Water Authority and the Orange County Sanitation District. The resource manager proposed for the engagement has experience as working as in Internal Auditor and Finance Director at two Southern California cities. The Project Manager has specific experience with working internal audit engagements at the firm with leading the City of Burbank internal audit and also had past experience as an auditor for California Emergency Management Agency (CalEMA) in 2010. Our team comprises of experts in the local government industry who understand the challenges that local governments are currently facing and have the experience necessary to make transitioning to an outsourced service provider a seamless process. We take the time to listen to your concerns in advance and react accordingly by matching the right resources to get the project completed on time with the highest level of quality. We will come prepared to provide progress updates as you see necessary to keep you up to date on our progress so that you can focus your time on the day-to-day activities of the City. Once we have earned your business, our goal is to assess how well we have met your expectations. We ask that you to complete a short, electronic post-engagement survey on specific projects we complete for you. We also conduct periodic surveys from our other clients, asking them what areas we should focus on. In addition to the survey, our leadership team performs a significant number of face-to-face interviews with clients each year. www.lslcpas.com 3 PROJECT TEAM INFORMATION KEY PERSONNEL EDUCATION, EXPERIENCE AND PROFESSIONAL CREDENTIALS We have earned an outstanding reputation for the integrity of our people and the consistently high level of professionalism with which our firm’s practices are conducted. We are a leader in the development and advancement of risk advisory services. To attract and retain the finest professionals, we have established high recruiting standards, a comprehensive training program and a recognition system for outstanding professional achievement. The partners at LSL are routinely an integral part of the process and will be overseeing and supervising staff personnel in the field. Resumes of the key personnel assigned are included on the following pages and list their governmental experience, applicable continuing professional education for the past three years, and memberships in professional organizations relevant to the performance with the City of La Quinta. Team Member Education and Experience Role to City of La Quinta Bryan Gruber, CPA Partner Bryan is the firm’s leader in providing assurance services such as performance audits, agreed-upon procedures and internal audits. Bryan is and has been the leading partner on the firm’s internal audit and similar engagements for the City of Burbank, Orange County Fire Authority, San Diego County Water Authority and the Orange County Sanitation District. Bryan will oversee all aspects of our relationship and delivery. Bryan’s experience local government will be integral to the engagement. Bryan will also provide you with direct access to subject-matter experts in the firm and work with you to ensure that we are constantly providing the appropriate nature, level and quality of service. Maria-Luisa Valdez, CPA Manager Ms. Valdez brings over thirteen (13) years of experience in governmental accounting and auditing. She has demonstrated a high-level of expertise in municipal accounting and operations. Ms. Valdez will be involved in the planning of the FEMA project. She will be responsible for organizing and scheduling the plan; communicating with the La Quinta city staff and ensure that all objectives are met. Kriste M. Saldana Project Coordinator Kriste brings over thirty years of experience in serving as a senior accountant, Fiscal Services Manager and Assistant Finance Director. Kriste will act as the project manager on the engagement; being available for management’s questions and ensure all documentation is indexed and maintained properly. www.lslcpas.com 4 PROJECT ORGANIZATION One of the critical factors for any successful engagement is the working relationship and communication that clients have with their sourcing provider. This relationship must be built on trust and confidence. We understand the importance of an effective partnership, which is why the foundation of our services emphasizes personal attention and responsiveness to our clients’ needs. We believe that our people are what set us apart from other firms. Our internal team brings the necessary experience, technical skills, industry knowledge, creativity and benchmarking capabilities to serve the La Quinta’s needs. RESUMES The most critical component of a successful project is the personnel assigned to carry out the responsibilities. We have assembled an LSL Resource Team composed of individuals with the optimum mix of talents. The individuals assigned have experience in performing the tasks for which they are responsible. In addition, each has developed extensive skills in a variety of other complementary subjects through their work with clients in other government areas. Thus, the experience gained on previous assignments can be applied and tailored to the unique needs of your organization. The partners at LSL are routinely an integral part of the process and will be overseeing and supervising staff personnel. Resumes of the key personnel assigned are included on the following pages and list their governmental experience, applicable continuing professional education for the past three years, and memberships in professional organizations relevant to the performance of services for the City. Our focused efforts to obtain and retain quality staff have further enabled us to provide high level of services to our clients. www.lslcpas.com 5 ACHIEVEMENTS Bryan has made numerous presentations for CSMFO on current accounting and auditing material. He also currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). Bryan has been involved with teaching current audit and accounting related material at Lance, Soll & Lunghard, LLP’s in-house training seminars. He serves as firm IT Specialist for his involvement in IT related controls, data mining and analysis, and auditing software. LICENSE Certified Public Accountant - California 2008 License Number: 99745 MEMBERSHIPS California Society of Certified Public Accountants (CalCPA); American Institute of Certified Public Accountants (AICPA); California Society of Municipal Finance Officers, Associate Member (CSMFO); Government Finance Officers Association, Associate Member (GFOA); Association of Local Government Auditors EXPERIENCE Over fifteen years of experience in governmental audits including CAFR audits, component-unit audits and Single Audits. Bryan has also made numerous presentations to Board of Directors, Boards of Directors and Audit Committees. He has been involved in the following municipal engagements: Bryan has also been involved in the following engagements: This work entailed:  The preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the Government Finance Officers Association of the United States and Canada.  Review the audit of these entities provide and technical assistance throughout the year to provide the most up to date information with current GASB pronouncement.  Present the overall audit results to audit committees or other Board Members. City of Cathedral City City of Burbank City of Santa Barbara City of Emeryville City of La Quinta Monterey One Water City of Oceanside City of Palm Springs Orange County Sanitation District City of Solana Beach City of Vista Ontario International Airport BRYAN S. GRUBER, CPA PARTNER www.lslcpas.com 6 MARIA-LUISA VALDEZ, CPA MANAGER LICENSE Certified Public Accountant - California 2010 License Number: 107969 MEMBERSHIPS California Society of Certified Public Accountants (CalCPA); American Institute of Certified Public Accountants (AICPA); California Society of Municipal Finance Officers, Associate Member (CSMFO) EXPERIENCE Over thirteen years of experience in governmental audits including CAFR audits, component-unit audits and Single Audits. Maria-Luisa has also made presentations to City Council, Boards of Directors and Audit Committees. Maria-Luisa has managed the following audit engagements: This work entailed:  The preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the Government Finance Officers Association of the United States and Canada.  Review the audit of these entities provide and technical assistance throughout the year to provide the most up to date information with current GASB pronouncement.  Present the overall audit results to audit committees or other Board Members. Maria-Luisa has served as the Finance Director for the City of Los Alamitos for two years. In addition, Maria-Luisa started her career as an internal auditor for the City of Torrance before pursuing her CPA at a firm. Additionally, she has served as an auditor to California Emergency Management Agency (CalEMA) in 2010. City of Agoura Hills City of Azusa City of Downey City of Irwindale City of La Quinta City of Malibu City of Monrovia City of San Marino City of Santa Monica City of Solana Beach County of Ventura www.lslcpas.com 7 EXPERIENCE Kriste has over thirty years of experience serving municipalities. Her resume includes Fiscal Services Manager for the City of Fullerton, Assistant Finance Director at the City of El Monte, Senior Accountant at the City of Rancho Cucamonga and Accounting Manager at the City of Alhambra. During his time, Kriste has performed all significant areas of Finance; including undergoing federal grant monitoring. Kriste is detailed with her work and has excellent verbal and written skills. Kriste M. Saldana PROJECT COORDINATOR www.lslcpas.com 8 PROJECT APPROACH COVID-19 PROJECT APPROACH Collaboratively with your City staff, LSL will discuss progress and identify project progress to date with COVID-19 documentation. We understand we will furnish our own computer, phone and will be granted remote access to City’s files. We will ensure there is a secure portal for documentation tracking and deposit on City’s intranet or preferred files for storing. After discussion of tracking mechanisms used by the City of La Quinta for COVID-19, LSL will work with the City of La Quinta to ensure there is proper documentation. LSL’s methodologies are defined, yet flexible to meet the specific needs and structure of our clients. Our methodologies for delivering risk advisory services focus on both the quality and efficiency of the process. As a nation we are faced with COVID-19 financial hardships experienced on the local government level and encounter risks at all levels. Nearly every action taken by a local government involves risk, billing, settlements, financial reporting or treasury management. We want to ensure there is limited interruptions to your day-to-day activities to keep the City of La Quinta going. Effective and complete documentation is critical to the City of La Quinta’s ability to request reimbursement and sustain its financial strength, and maintain the overall quality of its products, services and people. LSL intends to be that resource and project manager for FEMA reimbursement. www.lslcpas.com 9 PROJECT RATES FOR ADVISORS RATES/ ESTIMATED FEE The assessment and implementation process noted above is estimated at approximately 300 hours for the Project Coordinator, 40 hours for the Manager, 10 hours for the Partner. The discounted hourly rate of $105/hour would be provided for the Project Manager. This is an estimate of $39,100, which is dependent on the current status and condition of the City’s policies and procedures. Any additional time will be notified to the City immediately. Any change to this quoted price would need City approval. Key personnel to work on this engagement are as follows: Bryan Gruber: COVID-19 Partner- Advisor Rate: $200/hour Grant Monitoring Maintaining and Reconciling Records for federal reimbursement Uniform Guidance – Single Audit Compliance Maria-Luisa Valdez: COVID-19 Manager- Advisor Rate: $140/hour Grant Monitoring Maintaining and Reconciling Records for federal reimbursement Uniform Guidance – Single Audit Compliance Kriste Saldana: COVID-19 Project Coordinator- Advisor (Main Contact) Rate: $130/hour – Discounted to $105/hour Grant Monitoring Maintaining and Reconciling Records for federal reimbursement Uniform Guidance – Single Audit Compliance We are committed to providing the services discussed above. www.lslcpas.com 10