2025-27 Lance, Soll & Lunghard (LSL) Amendment 1 - Accounting & Advisory ServicesMEMORANDUM
DATE: 7/2/2025
TO: Jon McMillen,City Manager
FROM: Claudia Martinez, Finance Director/City Treasurer
Cv "a
CALIFORNIA -
RE: LSL 2025-27 Amend 1- Professional Accounting & Advisory Services
Please list the Contracting Party / Vendor Name, any change orders or amendments, and the type of services to be provided. Make
sure to list any related Project No. and Project Name.
V
Authority to execute this agreement is based upon:
Approved by City Council on March 4, 2025- Consent Item No.5
City Manager's signing authority provided under the City's Purchasing & Contracting Policy
[Resolution No. 2023-008] for budget expenditures of $50,000 or less.
❑ City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for
temporary employment positions.
❑ Department Director's or Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less.
Procurement Method (one must apply):
❑ Bid ❑ RFP ❑ RFQ ❑ 3 written informal bids
❑ Sole Source ❑✓ Select Source ❑ Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
❑✓ Agreement payment will be charged to Account No.: 101-1006-60106
❑✓ Agreement term: Start Date I July 1, 2025 End Date JJune 30, 2027
❑✓ Amount of Agreement, Amendment, Change Order, etc.: $ 150,000 (with extensions)
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual
Amendments or Change Orders!
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NOTE:
Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: myCOI compliant - MR Date: 6/10/2025
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant
FPPC regulation 18701(2)
❑ Business License No. Expires:
❑✓ Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES
WITH LANCE, SOLL & LUNGHARD, LLP
This Amendment No. 1 ("Amendment 1") to Agreement for Contract Services
("Agreement") is made and entered into as of the 11th day of June 2025 ("Effective Date")
by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and
Lance, Soll & Lunghard, LLP (LSL) with a place of business at 203 N. Brea Blvd, Suite
203 Brea, CA 92821 ("Contracting Party").
RECITALS
WHEREAS, on or about September 1, 2024, the City and Contracting Party
entered into an Agreement to provide professional accounting and advisory services, for
a total not to exceed amount of $150,000. The term of the Agreement expires on June
30, 2025 ("Initial Term"); and
WHEREAS, pursuant to Section 3.4 Term, the City and Contracting Party mutually
agree to extend the term of the agreement for two additional years from July 1, 2025,
through June 30, 2027 ("Extended Term").
NOW THEREFORE, in consideration of the mutual covenant herein contained, the
parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows:
1. Section 3.4 Term is amended to read as follows:
Unless earlier terminated in accordance with the provisions in Article 8.0 of this
Agreement, the term of this agreement shall commence on September 1, 2024, and
terminate on June 30, 2025 ("Initial Term"). This Agreement is being extended via
Amendment No. 1 from July 1, 2025, through June 30, 2027 ("Extended Term").
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA
a California municipal corporation
LANCE, SOLL & LUNGHARD, LLP
SIGNED IN COUNTERPART
JQN-IOfcMILLEN, City Manager Kelly Telford, CPA
City of La Quinta, California Partner
Dated: Z025
ATTEST:
MONIKA RADEVA,Liky Clerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
Dated:
IN WITNESS WHEREOF, the City and Contracting Party have executed this
Amendment No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA LANCE, SOLL & LUNGHARD, LLP
a California municipal corporation
SIGNED IN COUNTERPART
JON McMILLEN, City Manager Kelly Telford, CPA
City of La Quinta, California
Partner
Dated: Dated: 6/25/25
ATTEST:
SIGNED IN COUNTERPART
MONIKA RADEVA, City Clerk
City of La Quinta, California
APPROVED AS TO FORM:
SIGNED IN COUNTERPART
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
CONSENT CALENDAR ITEM NO. 4
City of La Quinta
CITY COUNCIL MEETING: March 4, 2025
STAFF REPORT
AGENDA TITLE: APPROVE AGREEMENT FOR CONTRACT SERVICES WITH LANCE,
SOLL & LUNGHARD, LLP FOR PROFESSIONAL ACCOUNTING AND ADVISORY
SERVICES
RECOMMENDATION
Approve agreement for contract services with Lance, Soll & Lunghard, LLP for professional
accounting and advisory services; and authorize the City Manager to execute the
agreement.
EXECUTIVE SUMMARY
• The City currently contracts with Lance, Soll & Lunghard, LLP (LSL) for auditing
services.
• The Finance Department is navigating increasingly complex regulatory
requirements, necessitating professional advisement to implement, and is proposing
to leverage LSL for additional support to ensure continuity, compliance, and
efficiency, including an assessment of the department's operations, Governmental
Accounting Standards Board (GASB) compliance assistance, and automation of
processes.
• The City's purchasing policy requires Council approval for contracts with vendors
paid over $50,000 annually.
FISCAL IMPACT
The proposed agreement with LSL is for fiscal year (FY) 2024/25, for a total not to exceed
amount of $50,000 per FY, with an optional two-year extension. Funds are available in the
current FY budget Professional Services account 101-1006-60106 and would be budgeted
accordingly in future FYs should the extension be exercised. Total fiscal commitment under
this agreement, with optional extensions, would be up to $150,000 for a three-year term.
BACKGROUND/ANALYSIS
In April 2024, following the competitive Request for Proposals procurement process,
Council approved a five-year agreement with LSL for auditing services at $103,040 per FY,
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with built-in escalators. The City's purchasing policy requires Council approval for vendors
paid over $50,000 annually.
The City's financial operations are complex and require specialized expertise to ensure
compliance with evolving accounting standards and regulations. LSL's professional
expertise and familiarity with the City's financial structure makes the firm suitable to provide
additional accounting services and advisory support and will ensure continuity and
efficiency of processes, allow for seamless integration of services, and ensure compliance
with the latest accounting standards and regulatory requirements. Additionally, retaining
LSL for additional services is cost-effective as it reduces onboarding time and associated
expenses compared to hiring a new firm. Finally, LSL's continued oversight strengthens
internal controls and enhances financial transparency, contributing to improved financial
management.
The proposed agreement (Attachment 1) is for a one-year initial term with an optional two-
year extension; the scope of services is for general accounting services, including, but not
limited to, the following:
1. Department Assessment — evaluation of departmental financial processes to identify
areas for improvement and efficiency.
2. GASB Implementation — guidance on adopting and complying with new GASB
regulations, ensuring adherence to industry -accepted standards.
3. Artificial Intelligence (Al) Automation Integration — exploring Al -driven solutions to
optimize accounting workflows, reduce manual processes, and enhance accuracy.
4. General Accounting Services — training, policy updates, internal controls, accounting
entries, etc.
ILTERNATIVES
Council may elect not to approve the proposed agreement, but this alternative is not
recommended, as these services will ensure that the City remains in compliance.
Prepared by:
Approved by:
Claudia Martinez, Finance Director
Jon McMillen, City Manager
Attachment: 1. Agreement for Contract Services with LSL
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