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Home My WebLink About2024-01-22 FC Special Meeting Agenda PacketCity of Palm Desert Page 1 FINANCE COMMITTEE CITY OF PALM DESERT, CALIFORNIA AGENDA (HYBRID MEETING) City Hall, Administrative Conference Room 73-510 Fred Waring Drive Palm Desert, CA 92260 Pursuant to Assembly Bill 2449, this meeting will be conducted as a hybrid meeting and there will be in-person access to this location. •To participate via Zoom, use the following link: https://palmdesert.zoom.us/j/86292070396 or call (213) 338-8477, Zoom Meeting ID: 862 9207 0396. •Written public comment may also be submitted to mnance@palmdesert.gov. Emails received by 4:00 p.m. the day prior to the meeting will be distributed to the Committee. Any correspondence received during or after the meeting will be distributed to the Committee as soon as practicable and retained for the official record. Emails will not be read aloud except as an ADA accommodation. 1.CALL TO ORDER 2.ROLL CALL 3.NON-AGENDA PUBLIC COMMENT: This time has been set aside for the public to address the Finance Committee on issues that are not on the agenda for up to three minutes. Because the Brown Act does not allow the Committee to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 4.CONSENT CALENDAR: All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by Committee Members for a separate discussion. A.APPROVAL OF MINUTES RECOMMENDATION: Approve the Finance Committee Regular Meeting minutes of November 28, 2023. Monday January 22, 2024 3:00 p.m. Special Meeting Finance Committee Agenda January 22, 2024 City of Palm Desert Page 2 5.ACTION CALENDAR A.FINANCE DIRECTOR’S REPORT FOR GENERAL FUND FINANCIAL REPORTS RECOMMENDATION: Receive and file the General Fund Financial Reports for months ending November 30, 2023, and December 31, 2023. B.PARKVIEW OFFICE COMPLEX FINANCIAL AND VACANCY REPORTS RECOMMENDATION: Receive and file the Parkview Office Complex Financial Reports for months ending November 30, 2023, and December 31, 2023; and the Parkview Office Complex Vacancy Report for the month ending December 31, 2023. C.DESERT WILLOW GOLF RESORT FINANCIAL REPORTS RECOMMENDATION: Receive and file the Desert Willow Financial Reports for months ending November 30, 2023, and December 31, 2023. D.CITY TREASURER’S INVESTMENT REPORTS RECOMMENDATION: Receive and file the City Treasurer’s Investment Reports for months ending November 30, 2023, and December 31, 2023. E.INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. F.REPORT ON THE AWARD OF CONTRACT TO LANCE, SOLL & LUNGHARD, LLP (LSL, CPAS) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE FISCAL YEARS ENDING JUNE 30, 2024, THROUGH 2026 RECOMMENDATION: Recommend award of contract to Lance, Soll & Lunghard, LLP (LSL CPAs) to perform professional auditing services for the fiscal years ending June 30, 2024 through 2026 in the amount of $89,082 for the first year, $91,755 for the second year and $94,507 for the third year. 6.INFORMATIONAL REPORTS & COMMENTS A.FINANCE COMMITTEE MEMBERS B.CITY STAFF C.ATTENDANCE REPORT 7.ADJOURNMENT: The next Regular Meeting will be held on Tuesday, March 26, 2024. Finance Committee Agenda January 22, 2024 City of Palm Desert Page 3 AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Finance Committee was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. /s/ Michelle Nance Recording Secretary PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the City’s City Clerk Department, City Hall, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. Remote Location: Pursuant to traditional Brown Act teleconferencing requirements, the teleconference location must be listed on the agenda and be accessible to the public. Vice Chair Garcia may participate remotely from residence located at 74390 Zeppelin Drive, Palm Desert, CA 92211. To enter HOA, enter guest gate on Dinah Shore Drive near Gerald Ford Drive, search Garcia on the call box. [This page has intentionally been left blank.] City of Palm Desert Page 1 FINANCE COMMITTEE CITY OF PALM DESERT, CALIFORNIA MINUTES Click HERE to review the meeting audio. Click HERE to access the meeting agenda packet. 1.CALL TO ORDER A Regular Meeting of the Finance Committee was called to order by Chair Leo on Tuesday, September 26, 2023, at 10:00 a.m., in the North Wing Conference Room, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2.ROLL CALL Present: Committee Members Carlos Garcia, Gretchen Heuring, Kathleen Kelly, Faith Messenger, Karina Quintanilla, Jake Wuest and Chair Robert Leo. Absent: None. Liaisons: Derek White and Anthony Hernandez of Desert Willow Golf Resort. City Staff Present: Veronica Chavez, Director of Finance; John Ramont, Deputy Director of Finance; and Michelle Nance, Recording Secretary. 3.NON-AGENDA PUBLIC COMMENT: None. 4.CONSENT CALENDAR: A.APPROVAL OF MINUTES MOTION BY COMMITTEE MEMBER GARCIA, SECOND BY COMMITTEE MEMBER MESSENGER, CARRIED 7-0, to approve the Finance Committee Regular Meeting minutes of September 26, 2023. Tuesday November 28, 2023 10:00 a.m. Regular Meeting Finance Committee Minutes November 28, 2023 City of Palm Desert Page 2 ALL ACTIONS ARE DRAFT, PENDING APPROVAL OF THE MINUTES 5.ACTION CALENDAR A.FINANCE DIRECTOR’S REPORTS Finance Director Chavez presented the General Fund Financial Report for months ending September 30, 2023, and October 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER WUEST, SECOND BY COMMITTEE MEMBER MESSENGER, CARRIED 7-0, to receive and file the General Fund Financial Report for months ending September 30, 2023, and October 31, 2023. B.PARKVIEW OFFICE COMPLEX FINANCIAL REPORTS Finance Deputy Director Ramont presented the Parkview Office Complex Financial Report for months ending September 30, 2023, and October 31, 2023; and the Parkview Office Complex Vacancy Report for the month ending October 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER QUINTANILLA, SECOND BY COMMITTEE MEMBER GARCIA, CARRIED 7-0, to receive and file the Parkview Office Complex Financial Report for months ending September 30, 2023, and October 31, 2023; and the Parkview Office Complex Vacancy Report for the month ending October 31, 2023. C.DESERT WILLOW GOLF RESORT FINANCIAL REPORTS Desert Willow Golf Resort General Manager White presented the Desert Willow Golf Resort Financial Reports for months ending September 30, 2023, and October 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER KELLY, SECOND BY COMMITTEE MEMBER GARCIA, CARRIED 7-0, to receive and file the Desert Willow Financial Report for months ending September 30, 2023, and October 31, 2023. D.CITY TREASURER’S INVESTMENT REPORTS Finance Director Chavez presented the City Treasurer’s Reports for months ending September 30, 2023, and October 31, 2023, and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER GARCIA, SECOND BY COMMITTEE MEMBER WUEST, CARRIED 7-0, to receive and file the City Treasurer’s Investment Report for months ending September 30, 2023, and October 31, 2023. Finance Committee Minutes November 28, 2023 City of Palm Desert Page 3 ALL ACTIONS ARE DRAFT, PENDING APPROVAL OF THE MINUTES E.RESOLUTIONS APPROVING THE PALM DESERT “STATEMENT OF INVESTMENT POLICY”, AS AMENDED Finance Director Chavez, Sarah Meacham and Richard Babbe from PFM presented the Resolutions approving the Palm Desert “Statement of Investment Policy” as amended and responded to Committee Member inquiries. MOTION BY COMMITTEE MEMBER MESSENGER, SECOND BY COMMITTEE MEMBER HUERING, CARRIED 7-0, to recommend that the City Council adopt City, Successor Agency, Financing Authority, and Housing Authority Resolutions approving the City of Palm Desert Investment Policy (FIN-002), as amended. 6.INFORMATIONAL REPORTS & COMMENTS A.FINANCE COMMITTEE MEMBERS In response to inquiries, Mayor Kelly provided an update on the City Council’s recent Study Session regarding power poles and ongoing rail feasibility studies. Committee Member Wuest commented on budgeting in relation to interest rates for 2024. B.CITY STAFF Finance Deputy Director Ramont provided an update on Audit Services RFP process. C.ATTENDANCE REPORT – Report was provided as supplemental material; no action taken on this item. 7.ADJOURNMENT The Finance Committee adjourned at 10:56 a.m. Respectfully submitted, Michelle Nance, Deputy Clerk I Recording Secretary ATTEST: Veronica Chavez, Director of Finance Staff Liaison APPROVED BY THE FINANCE COMMITTEE: __/__/2024 [This page has intentionally been left blank.] Monthly Financial Report November, 2023 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending November 30, 2023. Financial analysis for this report is provided for the General Fund REVENUES TO DATE As of November 30, 2023, approximately $15.8M or 21% of the General Fund operating budget revenue has been received as detailed below. GENERAL FUND REVENUE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUNDSUMMARY Monthly Financial Report November, 2023 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov PERFORMANCE SUMMARY Monthly Financial Report December - 2023 CITY OF PALM DESERT OVERVIEW This report summarizes the City’s financial performance for the month ending December 31, 2023. Financial analysis for this report is provided for the General Fund R EVENUES TO DATE EXPLAINED The first half of every fiscal year presents a negative cash flow picture as our primary revenue sources ramp up for the year for the following reasons: Property Tax is received in January/June. Sales Tax is generally highest in Q4 and Q1. Transient Occupancy Tax is also at its peak in Q4 and Q1, as those times are considered “season” for the desert. CY YTD Actual reflects a slight decrease compared to PY Actual and CY Budget. This is on trend with current economic forecasts. Budgets are approved as an annual total, so for the purpose of this report YTD Budget is calculated by percentage of PY YTD Actual. General Govt costs include costs associated with disaster/emergency expenditures related to Tropical Storm Hillary. Expenditure variances may result from timing differences in billing. GENERAL FUND SUMMARY Monthly Financial Report December - 2023 CITY OF PALM DESERT Page 2 Timing of expenditures vary throughout the fiscal year. General Government costs include insurance, internal departments costs, homelessness services, audit and contributions. EXPENDITURES TO DATE GENERAL FUND EXPENDITURES This summary report is derived from detailed financial information generated by the City’s Finance Department. If you have questions or would like additional information on this report, please contact the Finance Department via email at vchavez@palmdesert.gov YEAR OVER YEAR COMPARISON Parkview Office Complex Statement of Activities Month Ended November 30, 2023 November‐23 November‐23 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues* Rental 62,500$ 58,172$ (4,328)$ 93.08% 312,500$ 304,971$ (7,529)$ 97.59% Total Revenues 62,500$ 58,172$ (4,328)$ 93.08% 312,500$ 304,971$ (7,529)$ 97.59% Expenses** Tenant Improvements 10,833$ ‐$ (10,833)$ 0.00% 54,167$ ‐$ 54,167$ 0.00% Repairs & Maintenance‐ Building 2,500$ 3,368$ 868$ 134.74% 12,500$ 4,619$ 7,881$ 36.95% Repairs & Maintenance‐ Streets 1,667$ 376$ (1,291)$ 22.56% 8,333$ 752$ 7,581$ 9.02% Repairs & Maintenance‐ Other Equip 1,667$ ‐$ (1,667)$ 0.00% 8,333$ ‐$ 8,333$ 0.00% CAM Janitorial Services [2] 13,740$ 63,310$ 49,570$ 460.77% 68,700$ 65,842$ 2,858$ 95.84% CAM Landscaping Services 2,642$ 4,600$ 1,958$ 174.13% 13,208$ 9,200$ 4,008$ 69.65% CAM Alarm 315$ 905$ 590$ 287.38% 1,575$ 2,063$ (488)$ 130.96% CAM Pest Control 171$ 512$ 341$ 0.00% 853$ 682$ 171$ 80.00% CAM Utilities‐Gas/Electric [1] 1,175$ 13,634$ 12,459$ 1160.36% 47,542$ 38,185$ 9,357$ 80.32% CAM Utilities‐Waste Disposal 820$ 834$ 14$ 101.66% 4,100$ 4,168$ (68)$ 101.66% CAM Utilities‐Water 400$ 257$ (143)$ 64.13% 2,000$ 1,029$ 971$ 51.46% CAM Utilities‐Telephone 750$ 534$ (216)$ 71.16% 3,750$ 2,097$ 1,653$ 55.92% Total Expenses 36,679$ 88,329$ (51,650)$ 240.82% 225,061$ 128,637$ 96,424$ 57.16% Operating Income 25,821$ (30,157)$ (55,978)$ ‐116.79% 87,439$ 176,334$ 88,895$ 201.66% Equipment Replacement Reserve ‐$ ‐$ ‐$ 0.00%‐$ ‐$ ‐$ 0.00% Net Income 25,821$ (30,157)$ (55,978)$ >100% 87,439$ 176,334$ 88,895$ >100% [1] Amount paid includes October's billing. [2] Amount paid includes July‐ October 2023 billing *Revenues do not include interest income, which is allocated at fiscal year‐end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for other City‐owned buildings Parkview Office Complex Statement of Activities Month Ended December 31, 2023 December-23 December-23 #%YTD YTD #% Budget Actual Variance Variance Budget Actual Variance Variance Revenues* Rental 62,500$ 56,759$ (5,741)$ 90.81%375,000$ 361,730$ (13,270)$ 96.46% Total Revenues 62,500$ 56,759$ (5,741)$ 90.81%375,000$ 361,730$ (13,270)$ 96.46% Expenses** Tenant Improvements 10,833$ 318$ (10,516)$ 2.93%65,000$ 318$ 64,682$ 0.49% Repairs & Maintenance- Building 2,500$ 608$ (1,892)$ 24.30%15,000$ 5,226$ 9,774$ 34.84% Repairs & Maintenance- Streets 1,667$ -$ (1,667)$ 0.00%10,000$ 752$ 9,248$ 7.52% Repairs & Maintenance- Other Equip 1,667$ 512$ (1,154)$ 30.73%10,000$ 512$ 9,488$ 5.12% CAM Janitorial Services 13,740$ 23$ (13,717)$ 0.16%82,440$ 65,865$ 16,575$ 79.89% CAM Landscaping Services 2,642$ 2,000$ (642)$ 75.71%15,850$ 11,200$ 4,650$ 70.66% CAM Alarm 315$ -$ (315)$ 0.00%1,890$ 2,063$ (173)$ 109.13% CAM Pest Control 171$ -$ (171)$ 0.00%1,023$ 682$ 341$ 66.67% CAM Utilities-Gas/Electric 1,175$ 3,761$ 2,586$ 320.13%57,050$ 41,947$ 15,103$ 73.53% CAM Utilities-Waste Disposal 820$ 483$ (337)$ 58.87%4,920$ 4,651$ 269$ 94.53% CAM Utilities-Water 400$ 187$ (213)$ 46.82%2,400$ 1,216$ 1,184$ 50.68% CAM Utilities-Telephone 750$ 423$ (327)$ 56.41%4,500$ 2,520$ 1,980$ 56.00% Total Expenses 36,679$ 8,315$ 28,364$ 22.67%270,073$ 136,952$ 133,122$ 50.71% Operating Income 25,821$ 48,445$ 22,623$ 187.62%104,927$ 224,779$ 119,852$ 214.22% Equipment Replacement Reserve -$ -$ -$ 0.00%-$ -$ -$ 0.00% Net Income 25,821$ 48,445$ 22,623$ >100%104,927$ 224,779$ 119,852$ >100% *Revenues do not include interest income, which is allocated at fiscal year-end. **CAM charges are broken out for Finance Committee reporting purposes, but are all budgeted as "Common Area Maintenance." Budget overages in CAM line items are often offset by budget savings in other CAM line items. Note: This schedule does not include rents received into this enterprise fund for other City-owned buildings City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite December 31,2023 Rentable Square Feet:51,327 Square Feet Occupied:33,890 % Occupied:66% % Vacant:34% Suite No.Tenant Square Ft. 10-101 Medium Conference Room - 10-104 Large Conference Room - 10-110 Advantec 1,250 10-113 Lift to Rise 720 10-117 Lift to Rise 1,227 10-120 State of California 1,000 10-123 Lift to Rise 758 10-126 ACT for Multiple Sclerosis 928 10-129 Congressman Ken Calvert 41st District 875 10-132 Anser Advisory 1,345 10-135 Desert Recreation District 2,560 10-138 Golden Construction 488 10-141 Small Conference Room - 10-201 State of California 766 10-212 State of California 1,104 10-220 Lift to Rise 1,240 20-100 State of California 15,233 20-102 State of California 4,396 Total Occupied Suites 33,890 sq/ft Suite No.Tenant Square Ft. 10-107 Vacant 1,750 10-205 Vacant 5,730 10-209 Vacant 3,040 10-215 Vacant 5,833 10-219 Vacant 1,084 Total Vacant Suites 17,437 sq/ft Vacancy Rate Summary Occupied Suites Vacant Suites [This page has intentionally been left blank.] Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT YIE LD PE RFORMANCE The City’s current yield of 4.82% is .97% higher than LAIF’s 3.843%, which is our current policy benchmark as of November 2023. ACTIVITY The City’s investment portfolio is summarized here. Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy, and all bond indentures. Key Highlights: • 3 million in Agencies matured and reinvested in US Treasury • 7 million was withdrawn from CAMP for a loan to an Affordable Housing Developer OVERVIEW This report summarizes the City’s investment activities and Staff analysis for the month ending November 30, 2023. INVESTMENT SUMMARY CAMP is continuing to outperform LAIF, which is why 169 million is currently held in CAMP. That said, the yield performance chart above shows that CAMP’s growth is slowing in comparison to LAIF’s growth. Staff will continue to monitor and makes transfers between the pooled accounts as yields begin to change. $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value % of Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 Portfolio Agencies 23.97$ -$ (3.00)$ 20.97$ 9% Corporates 24.99 - - 24.99 11% US Treasury 8.86 3.00 - 11.86 5% CAMP Pool 175.68 0.78 (7.24) 169.22 73% LAIF Pool 0.91 - - 0.91 0% County Pool 2.72 - - 2.72 1% Investments Total 237.13$ 3.78$ (10.24)$ 230.68$ 100% Custodian ^65.25 0.29 - 65.54 Trustee ^2.95 0.00 - 2.95 Cash 10.69 19.86 (19.19) 11.36 Cash & Cash w/Fiscal Agentys Total 78.89$ 20.15$ (19.19)$ 79.85$ Total 316.03$ 23.93$ (29.43)$ 310.53$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT CURRENT ASSET ALLOCATION Currently, investments in Local Government Pooled investments are maxed @ 75% to take advantage of CAMP’s ongoing high yield of 5.58%, and to maintain liquidity during the first half of the fiscal year, as mentioned in the Monthly Financial Report. INVESTMENT MATURITIES Investment scheduled to mature in 0 – 2 years make up 70.24% of core assets. Future asset purchases will be more evenly laddered from 0 – 5 years dependent on cash flow needs due to upcoming capital projects. 9% 11% 5% 75% Max Allocation, Agencies, 100% Max Allocation, Corporates, 30% Max Allocation, US Treasury, 100% Max Allocation, Local Govt, 75% 0%25%50%75%100% Agencies Corporates US Treasury Local Govt Investment Allocation Actual to Max Allocation Max Allocation Allocation 0.00% 10.00% 20.00% 30.00% 0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y 0-6M, 19.07% 6-12M, 25.51%1-2Y, 25.66% 2-3Y, 7.51% 3-4Y, 15.47% 4-5Y, 6.78% Investment Maturity DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT MONTHLY MARKET VALUE CHANGES Market Values for the current month compared to the prior month are now being compared to evaluate market activity based on PFM’s investment recommendations. For the month of November, the overall core investment is performing 0.75% better that the prior month. Market Values October November $ Change Federal Agency 23,405,821.00 20,508,484.00 (2,897,337.00) * Corporate Note 24,280,082.00 24,435,892.00 155,810.00 US Treasury 8,833,039.08 12,000,210.90 3,167,171.82 * Total 56,518,942.08 56,944,586.90 425,644.82 0.753% * The high dollar changes between investment types are related to PFM’s diversification of our portfolio, in order to take better advantage of current available yields. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________ Veronica Chavez, Finance Director DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE 1/11/2024 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE 12/4/23, 9 59 AM LAIF Regular Monthly Statement https //laifms treasurer ca gov/RegularStatement aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields CITY OF PALM DESERT CITY TREASURER 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:911,067.51 Total Withdrawal:0.00 Ending Balance:911,067 51 DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE DocuSign Envelope ID: 2507DD05-29BA-406A-A2F9-8B85032813EE Palm Desert Housing Authority Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the Palm Desert Housing Authority investment activities for the month ending November 30, 2023. INVESTMENT SUMMARY $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 CAMP Pool 51.86 0.24 - 52.10 LAIF Pool 1.01 - - 1.01 Investments Total 52.87$ 0.24$ -$ 53.11$ Cash 4.43 0.78 (0.77) 4.44 Total 57.30$ 1.02$ (0.77)$ 57.55$ DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 1/12/2024 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 12/4/23, 10:03 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields PALM DESERT HOUSING AUTHORITY CITY TREASURER 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:1,007,017.89 Total Withdrawal:0.00 Ending Balance:1,007,017 89 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 RDA Successor Agency Monthly Investment Summary Report November 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the RDA Successor Agency investment activities for the month ending November 30, 2023. INVESTMENT SUMMARY Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 11/1/2023 Deposits Withdrawals 11/30/2023 CAMP Pool 6,084.24 27.91 - 6,112.15 LAIF Pool 769.22 - - 769.22 County Pool 346.75 - - 346.75 Investments Total 7,200.21$ 27.91$ -$ 7,228.12$ Trustee ^15,777,345.70 1,836.53 - 15,779,182.23 Cash 2,901,229.32 426.45 (6,699.45) 2,894,956.32 Cash & Cash w/Fiscal Agentys Total 18,678,575.02$ 2,262.98$ (6,699.45)$ 18,674,138.55$ Total 18,685,775.23$ 2,290.89$ (6,699.45)$ 18,681,366.67$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 1/12/2024 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 12/4/23, 10:01 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209 0001 (916) 653-3001 December 04, 2023 LAIF Home PMIA Average Monthly Yields S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73 510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: November 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:769.22 Total Withdrawal:0.00 Ending Balance:769 22 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 DocuSign Envelope ID: 076D71AD-20B5-4256-83DF-B5D86BDC68C9 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT YIE LD PE RFORMANCE The City’s current yield is performing better than our current benchmark of LAIF. In relation to the 1Y T-Bill, which fell by .32% over the prior month, causing the City to have a slightly better performance by .06% . ACTIVITY The City’s investment portfolio is summarized here. Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy, and all bond indentures. Key Highlights: • 6 million was purchased with CAMP • 5 million in Agencies matured and reinvested in US Treasury OVERVIEW This report summarizes the City’s investment activities and Staff analysis for the month ending December 31, 2023. INVESTMENT SUMMARY CAMP is continuing to outperform LAIF, which is why the additional 6 million was purchased from CAMP. Staff noted that CAMP has yield lost .03%, as indicated by the above chart, and will continue to monitor. $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value % of Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 Portfolio Agencies 20.97$ -$ (5.00)$ 15.97$ 6.7% Corporates 24.99 - - 24.99 10.5% US Treasury 11.86 5.13 - 16.99 7.1% CAMP Pool 169.22 6.81 - 176.04 74.1% LAIF Pool 0.91 - - 0.91 0.4% County Pool 2.72 0.02 - 2.75 1.2% Investments Total 230.68$ 11.96$ (5.00)$ 237.64$ 100% Custodian ^65.54 - - 65.54 Trustee ^2.95 - - 2.95 Cash 11.20 21.81 (31.15) 1.86 Cash & Cash w/Fiscal Agentys Total 79.69$ 21.81$ (31.15)$ 70.35$ Total 310.37$ 33.77$ (36.15)$ 307.99$ ^ = Restricted funds based upon bond indenture terms. 4.21 4.53 4.59 4.82 4.82 4.9 City Yield 3.3 3.3 3.59 3.67 3.843 3.929 5.37 5.37 5.46 5.44 5.16 4.84 1Y T-Bill 5.31 5.52 5.55 5.56 5.58 5.55 3 3.5 4 4.5 5 5.5 6 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec Yield Performance -Total Porfolio In Percentages City Yield LAIF Yield 1Y T-Bill CAMP DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT CURRENT ASSET ALLOCATION Earnings in Q4 were higher than anticipated, causing a .62% excess in permitted deposits with Local Governments. Assets have been reallocated to bring it back in line with the policy. MANAGED PORTFOLIO MATURITIES Compared to November’s Investment Maturity Chart the ladder for the managed portfolio is beginning to be spread out with 38.85 % of investments scheduled to mature in 2-5 years 0.00% 10.00% 20.00% 30.00% 0-6M 6-12M 1-2Y 2-3Y 3-4Y 4-5Y 25.50%27.08% 8.57% 11.92%17.01% 9.92% Investment Maturity Agencies, 6.72% Corporates, 10.52% US Treasury, 7.15% Local Govt, 75.62% 0%25%50%75%100% Agencies Corporates US Treasury Local Govt Investment Allocation Actual to Max Allocation Max Allocation Allocation DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT MONTHLY MARKET VALUE CHANGES For the month of December shows an overall increase of 1.115% compared to the prior month. Market Values November December $ Change Federal Agency 20,508,484.00 17,386,214.86 (3,122,269.14) * Corporate Note 24,435,892.00 24,601,929.00 166,037.00 US Treasury 12,000,210.90 15,591,367.00 3,591,156.10 * Total 56,944,586.90 57,579,510.86 634,923.96 1.115% * The high dollar changes between investment types are related to PFM better diversifying our portfolio, in line with our current portfolio, to take better advantage of high available yields. This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund city expenditures for the next six months. US Bank Custody Services has provided market value prices for all corporate securities. All balances are bank balances. The "% of Portfolio" calculation on the Portfolio Summary page omits demand deposits. _______________________________________________ Veronica Chavez, Finance Director DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 1/12/2024 For the Month Ending December 31, 2023Managed Account Summary Statement CITY OF PALM DESERT - Total Cash Basis Earnings Plus Net Realized Gains/Losses Less Purchased Interest Related to Interest/Coupons Interest/Dividends/Coupons Received Earnings Reconciliation (Cash Basis) - Managed Account Less Beginning Accrued Interest Less Beginning Amortized Value of Securities Less Cost of New Purchases Plus Coupons/Dividends Received Plus Proceeds of Maturities/Calls/Principal Payments Plus Proceeds from Sales Ending Accrued Interest Ending Amortized Value of Securities Earnings Reconciliation (Accrual Basis) $56,944,586.90 (5,000,000.00) 0.00 5,131,210.95 0.00 503,713.01 $57,579,510.86 216,056.30 (25,943.26) 0.00 $190,113.04 Total 58,028,140.36 272,184.91 0.00 5,012,500.00 203,556.30 (5,157,154.21) (57,869,708.92) (345,974.29) Total Accrual Basis Earnings $143,544.15 Closing Market Value Change in Current Value Unsettled Trades Principal Acquisitions Principal Dispositions Maturities/Calls Opening Market Value Transaction Summary - Managed Account _________________ _________________ _______________________________________________ _______________________________________________Reconciling Transactions Net Cash Contribution Security Purchases Principal Payments Coupon/Interest/Dividend Income Sale Proceeds Maturities/Calls Cash Transactions Summary - Managed Account 5,012,500.00 0.00 203,556.30 0.00 (5,157,154.21) 0.00 0.00 Cash Balance $349,340.34 Closing Cash Balance Account 68910100 Page 1 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Portfolio Summary and Statistics CITY OF PALM DESERT - Account Summary Percent Par Value Market ValueDescription U.S. Treasury Bond / Note 18,325,000.00 17,386,214.86 30.20 Federal Agency Bond / Note 16,000,000.00 15,591,367.00 27.08 Corporate Note 25,000,000.00 24,601,929.00 42.72 Managed Account Sub-Total 59,325,000.00 57,579,510.86 100.00% Accrued Interest 272,184.91 Total Portfolio 59,325,000.00 57,851,695.77 Unsettled Trades 0.00 0.00 Sector Allocation 42.72% Corporate Note 27.08% Fed Agy Bond / Note 30.20% US TSY Bond / Note 0 - 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years Over 5 Years 25.50% 27.08% 8.57% 11.92% 17.01% 9.92% 0.00% Maturity Distribution Characteristics Yield to Maturity at Cost Yield to Maturity at Market Weighted Average Days to Maturity 690 2.98% 5.00% Account 68910100 Page 2 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Issuer Summary CITY OF PALM DESERT - Credit Quality (S&P Ratings) 5.11% A 15.27% A+ 8.57% A- 5.12% AA 57.27% AA+ 8.66% BBB+ Issuer Summary Percentof HoldingsIssuer Market Value 2,947,026.00 5.12 AMAZON.COM INC 2,942,757.00 5.11 CATERPILLAR INC 4,785,150.00 8.31 FEDERAL FARM CREDIT BANKS 5,813,112.00 10.10 FEDERAL HOME LOAN BANKS 4,993,105.00 8.67 FREDDIE MAC 4,988,055.00 8.66 GOLDMAN SACHS GROUP INC 4,932,180.00 8.57 MORGAN STANLEY 8,791,911.00 15.27 TOYOTA MOTOR CORP 17,386,214.86 30.19 UNITED STATES TREASURY $57,579,510.86 Total 100.00% Account 68910100 Page 3 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 1,000,000.00 979,592.37 1,915.98 977,929.69 10/20/2310/17/23AaaAA+ 1,000,000.00 91282CHH7 5.02 US TREASURY NOTES DTD 07/15/2023 4.500% 07/15/2026 1,009,687.50 991,633.23 20,788.04 990,937.50 10/16/2310/13/23AaaAA+ 1,000,000.00 91282CHM6 4.85 US TREASURY NOTES DTD 08/15/2023 4.375% 08/15/2026 1,007,187.50 989,988.04 16,525.14 989,140.63 10/12/2310/11/23AaaAA+ 1,000,000.00 91282CHU8 4.79 US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 1,267,578.13 1,259,021.30 17,153.16 1,259,228.52 12/08/2312/07/23AaaAA+ 1,250,000.00 91282CHY0 4.34 US TREASURY NOTES DTD 10/31/2019 1.625% 10/31/2026 1,310,750.00 1,290,756.93 3,875.00 1,286,742.19 11/24/2311/22/23AaaAA+ 1,400,000.00 912828YQ7 4.60 US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 1,270,117.25 1,260,085.34 7,464.80 1,260,302.73 12/08/2312/07/23AaaAA+ 1,250,000.00 91282CJK8 4.32 US TREASURY NOTES DTD 04/30/2022 2.750% 04/30/2027 1,010,296.88 980,859.22 4,918.27 976,705.08 10/20/2310/17/23AaaAA+ 1,050,000.00 91282CEN7 4.93 US TREASURY NOTES DTD 07/31/2022 2.750% 07/31/2027 1,032,167.92 1,007,265.18 12,371.26 1,003,067.38 10/12/2310/11/23AaaAA+ 1,075,000.00 91282CFB2 4.69 US TREASURY NOTES DTD 09/30/2020 0.375% 09/30/2027 877,187.50 859,603.05 952.87 855,703.13 11/24/2311/22/23AaaAA+ 1,000,000.00 91282CAL5 4.50 US TREASURY NOTES DTD 10/31/2022 4.125% 10/31/2027 1,006,718.80 979,451.30 7,026.10 978,320.31 10/16/2310/13/23AaaAA+ 1,000,000.00 91282CFU0 4.72 US TREASURY NOTES DTD 11/30/2020 0.625% 11/30/2027 881,718.80 863,284.00 546.45 859,648.44 11/24/2311/22/23AaaAA+ 1,000,000.00 91282CAY7 4.48 US TREASURY NOTES DTD 04/30/2021 1.250% 04/30/2028 1,029,968.75 997,590.81 2,448.49 990,167.97 10/16/2310/13/23AaaAA+ 1,150,000.00 91282CBZ3 4.68 US TREASURY NOTES DTD 05/31/2021 1.250% 05/31/2028 1,027,992.13 996,916.76 1,256.83 989,224.61 10/12/2310/11/23AaaAA+ 1,150,000.00 91282CCE9 4.64 US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 1,005,156.20 966,115.80 109.89 964,609.38 10/20/2310/17/23AaaAA+ 1,000,000.00 91282CHK0 4.85 Account 68910100 Page 4 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 879,843.80 869,142.84 4,184.78 867,265.63 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCR0 4.17 US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 883,281.20 872,344.84 3,801.51 870,546.88 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCV1 4.17 US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 886,562.50 875,589.14 3,176.23 873,867.19 12/08/2312/07/23AaaAA+ 1,000,000.00 91282CCY5 4.17 108,514.80 17,386,214.86 17,039,240.15 4.59 16,993,407.26 18,325,000.00 Security Type Sub-Total Federal Agency Bond / Note FEDERAL HOME LOAN BANK NOTES DTD 07/29/2021 0.400% 07/29/2024 2,919,450.00 3,000,000.00 5,066.67 3,000,000.00 07/09/2107/09/21AaaAA+ 3,000,000.00 3130AN7K0 0.40 FEDERAL HOME LOAN BANK NOTES (CALLABLE) DTD 07/28/2021 0.500% 10/28/2024 2,893,662.00 2,999,886.08 6,375.00 2,999,550.00 07/27/2107/27/21AaaAA+ 3,000,000.00 3130ANAC4 0.50 FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 4,785,150.00 4,990,331.25 355.56 4,967,500.00 09/10/2109/10/21AaaAA+ 5,000,000.00 3133EMLP5 0.52 FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 4,993,105.00 5,000,000.00 729.17 5,000,000.00 12/12/2212/12/22AaaAA+ 5,000,000.00 3134GYAB8 5.25 12,526.40 15,591,367.00 15,990,217.33 2.01 15,967,050.00 16,000,000.00 Security Type Sub-Total Corporate Note AMAZON.COM INC CORPORATE NOTES DTD 05/12/2021 0.450% 05/12/2024 2,947,026.00 3,000,000.00 1,837.50 3,000,000.00 07/15/2107/15/21A1AA 3,000,000.00 023135BW5 0.45 CATERPILLAR FINL SERVICE CORPORATE NOTES DTD 05/17/2021 0.450% 05/17/2024 2,942,757.00 2,999,439.94 1,650.00 2,996,100.00 10/06/2110/06/21A2A 3,000,000.00 14913R2L0 0.50 Account 68910100 Page 5 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Detail of Securities Held CITY OF PALM DESERT - Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 3,000,000.00 541.67 3,000,000.00 06/15/2106/15/21A1A+ 3,000,000.00 89236TJH9 0.50 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 2,999,586.12 541.67 2,997,360.00 07/06/2107/06/21A1A+ 3,000,000.00 89236TJH9 0.53 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 2,930,637.00 2,999,656.82 541.67 2,997,945.00 09/10/2109/10/21A1A+ 3,000,000.00 89236TJH9 0.52 MORGAN STANLEY CORP NOTES DTD 07/23/2015 4.000% 07/23/2025 4,932,180.00 5,000,000.00 87,777.78 5,000,000.00 08/30/2208/30/22A1A- 5,000,000.00 6174468C6 4.00 GOLDMAN SACHS CORP NOTES (CALLABLE) DTD 10/31/2022 6.750% 10/29/2027 4,988,055.00 5,000,000.00 58,253.42 5,000,000.00 10/27/2210/27/22A2BBB+ 5,000,000.00 38150APM1 6.75 151,143.71 24,601,929.00 24,998,682.88 2.47 24,991,405.00 25,000,000.00 Security Type Sub-Total 59,325,000.00 57,951,862.26 2.98 272,184.91 58,028,140.36 57,579,510.86 Managed Account Sub-Total $59,325,000.00 $57,951,862.26 $272,184.91 $58,028,140.36 $57,579,510.86 2.98% $57,851,695.77 $272,184.91 Total Investments Accrued Interest Securities Sub-Total Account 68910100 Page 6 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration U.S. Treasury Bond / Note 20,407.63 22,070.31 1,000,000.00 100.00 STIFEL 1,000,000.00 91282CHH7US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 4.12 2.36 18,054.27 18,750.00 1,009,687.50 100.97 JPM_CHA 1,000,000.00 91282CHM6US TREASURY NOTES DTD 07/15/2023 4.500% 07/15/2026 4.09 2.39 17,199.46 18,046.87 1,007,187.50 100.72 JPM_CHA 1,000,000.00 91282CHU8US TREASURY NOTES DTD 08/15/2023 4.375% 08/15/2026 4.08 2.47 8,556.83 8,349.61 1,267,578.13 101.41 JPM_CHA 1,250,000.00 91282CHY0US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 4.07 2.55 19,993.07 24,007.81 1,310,750.00 93.63 JPM_CHA 1,400,000.00 912828YQ7US TREASURY NOTES DTD 10/31/2019 1.625% 10/31/2026 4.03 2.78 10,031.91 9,814.52 1,270,117.25 101.61 JPM_CHA 1,250,000.00 91282CJK8US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 4.03 2.71 29,437.66 33,591.80 1,010,296.88 96.22 WELLS_F 1,050,000.00 91282CEN7US TREASURY NOTES DTD 04/30/2022 2.750% 04/30/2027 3.97 3.20 24,902.74 29,100.54 1,032,167.92 96.02 JPM_CHA 1,075,000.00 91282CFB2US TREASURY NOTES DTD 07/31/2022 2.750% 07/31/2027 3.95 3.40 17,584.45 21,484.37 877,187.50 87.72 WELLS_F 1,000,000.00 91282CAL5US TREASURY NOTES DTD 09/30/2020 0.375% 09/30/2027 3.93 3.73 27,267.50 28,398.49 1,006,718.80 100.67 JPM_CHA 1,000,000.00 91282CFU0US TREASURY NOTES DTD 10/31/2022 4.125% 10/31/2027 3.93 3.57 18,434.80 22,070.36 881,718.80 88.17 WELLS_F 1,000,000.00 91282CAY7US TREASURY NOTES DTD 11/30/2020 0.625% 11/30/2027 3.91 3.87 32,377.94 39,800.78 1,029,968.75 89.56 JPM_CHA 1,150,000.00 91282CBZ3US TREASURY NOTES DTD 04/30/2021 1.250% 04/30/2028 3.89 4.22 31,075.37 38,767.52 1,027,992.13 89.39 JPM_CHA 1,150,000.00 91282CCE9US TREASURY NOTES DTD 05/31/2021 1.250% 05/31/2028 3.89 4.30 39,040.40 40,546.82 1,005,156.20 100.52 JPM_CHA 1,000,000.00 91282CHK0US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 3.87 4.09 10,700.96 12,578.17 879,843.80 87.98 JPM_CHA 1,000,000.00 91282CCR0US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 3.89 4.47 10,936.36 12,734.32 883,281.20 88.33 JPM_CHA 1,000,000.00 91282CCV1US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 3.88 4.54 10,973.36 12,695.31 886,562.50 88.66 JPM_CHA 1,000,000.00 91282CCY5US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 3.89 4.60 Account 68910100 Page 7 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration 392,807.60 3.97 346,974.71 17,386,214.86 18,325,000.00 Security Type Sub-Total 3.42 Federal Agency Bond / Note (80,550.00)(80,550.00) 2,919,450.00 97.32 DIRECT 3,000,000.00 3130AN7K0FEDERAL HOME LOAN BANK NOTES DTD 07/29/2021 0.400% 07/29/2024 5.15 0.58 (106,224.08)(105,888.00) 2,893,662.00 96.46 01/28/24DIRECT 3,000,000.00 3130ANAC4FEDERAL HOME LOAN BANK NOTES (CALLABLE) DTD 07/28/2021 0.500% 10/28/2024 4.92 0.10 (205,181.25)(182,350.00) 4,785,150.00 95.70 DIRECT 5,000,000.00 3133EMLP5FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 4.86 0.98 (6,895.00)(6,895.00) 4,993,105.00 99.86 03/30/24DIRECT 5,000,000.00 3134GYAB8FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 5.39 0.00 (375,683.00) 5.10 (398,850.33) 15,591,367.00 16,000,000.00 Security Type Sub-Total 0.43 Corporate Note (52,974.00)(52,974.00) 2,947,026.00 98.23 DIRECT 3,000,000.00 023135BW5AMAZON.COM INC CORPORATE NOTES DTD 05/12/2021 0.450% 05/12/2024 5.36 0.37 (56,682.94)(53,343.00) 2,942,757.00 98.09 DIRECT 3,000,000.00 14913R2L0CATERPILLAR FINL SERVICE CORPORATE NOTES DTD 05/17/2021 0.450% 05/17/2024 5.57 0.39 (69,363.00)(69,363.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (68,949.12)(66,723.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (69,019.82)(67,308.00) 2,930,637.00 97.69 DIRECT 3,000,000.00 89236TJH9TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 5.58 0.47 (67,820.00)(67,820.00) 4,932,180.00 98.64 DIRECT 5,000,000.00 6174468C6MORGAN STANLEY CORP NOTES DTD 07/23/2015 4.000% 07/23/2025 4.91 1.51 (11,945.00)(11,945.00) 4,988,055.00 99.76 01/31/24DIRECT 5,000,000.00 38150APM1GOLDMAN SACHS CORP NOTES (CALLABLE) DTD 10/31/2022 6.750% 10/29/2027 6.82 0.09 Account 68910100 Page 8 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Fair Market Value & Analytics CITY OF PALM DESERT - Value On Cost Amort CostCUSIPBrokerDate PriceDated Date/Coupon/Maturity Par at Mkt Market Unreal G/L Unreal G/LNext Call MarketSecurity Type/Description YTMEffective Duration (389,476.00) 5.67 (396,753.88) 24,601,929.00 25,000,000.00 Security Type Sub-Total 0.58 59,325,000.00 57,579,510.86 (372,351.40) (448,629.50) 5.00 Managed Account Sub-Total 1.40 Total Investments $57,851,695.77 $272,184.91 $57,579,510.86 Accrued Interest Securities Sub-Total $59,325,000.00 ($372,351.40) ($448,629.50) 5.00% 1.40 Account 68910100 Page 9 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Security Transactions & Interest CITY OF PALM DESERT - Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 12/08/23 US TREASURY N/B NOTES DTD 11/15/2023 4.625% 11/15/2026 91282CJK8 (1,260,302.73)(3,652.99)(1,263,955.72) 1,250,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 09/15/2023 4.625% 09/15/2026 91282CHY0 (1,259,228.52)(13,341.35)(1,272,569.87) 1,250,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 07/31/2021 1.000% 07/31/2028 91282CCR0 (867,265.63)(3,532.61)(870,798.24) 1,000,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 08/31/2021 1.125% 08/31/2028 91282CCV1 (870,546.88)(3,059.75)(873,606.63) 1,000,000.00 12/07/23 12/08/23 US TREASURY NOTES DTD 09/30/2021 1.250% 09/30/2028 91282CCY5 (873,867.19)(2,356.56)(876,223.75) 1,000,000.00 12/07/23 (25,943.26) (5,157,154.21)(5,131,210.95) 5,500,000.00 Transaction Type Sub-Total INTEREST 12/01/23 MONEY MARKET FUND MONEY0002 0.00 1,181.30 1,181.30 0.00 12/01/23 12/15/23 US TREASURY NOTES DTD 06/15/2023 4.125% 06/15/2026 91282CHH7 0.00 20,625.00 20,625.00 1,000,000.00 12/15/23 12/18/23 TOYOTA MOTOR CREDIT CORP CORPORATE NOTES DTD 06/18/2021 0.500% 06/18/2024 89236TJH9 0.00 22,500.00 22,500.00 9,000,000.00 12/18/23 12/23/23 FEDERAL FARM CREDIT BANK NOTES (CALLABLE DTD 12/23/2020 0.320% 12/23/2024 3133EMLP5 0.00 8,000.00 8,000.00 5,000,000.00 12/23/23 12/30/23 FREDDIE MAC NOTES (CALLABLE) DTD 12/30/2022 5.250% 12/30/2024 3134GYAB8 0.00 131,250.00 131,250.00 5,000,000.00 12/30/23 12/31/23 US TREASURY NOTES DTD 06/30/2023 4.000% 06/30/2028 91282CHK0 0.00 20,000.00 20,000.00 1,000,000.00 12/31/23 203,556.30 203,556.30 0.00 21,000,000.00 Transaction Type Sub-Total MATURITY 12/08/23 FEDERAL HOME LOAN BANK NOTES DTD 11/01/2021 0.500% 12/08/2023 3130APR72 5,000,000.00 12,500.00 5,012,500.00 0.00 0.00 5,000,000.00 12/08/23 12,500.00 0.00 0.00 5,012,500.00 5,000,000.00 5,000,000.00 Transaction Type Sub-Total Account 68910100 Page 10 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 For the Month Ending December 31, 2023Managed Account Security Transactions & Interest CITY OF PALM DESERT - Transaction Type Trade CUSIPSecurity DescriptionSettle Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method (131,210.95) 190,113.04 58,902.09 0.00 0.00 Managed Account Sub-Total Total Security Transactions $0.00 $58,902.09 $190,113.04 ($131,210.95)$0.00 Account 68910100 Page 11 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields CITY OF PALM DESERT CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:911,067.51 Total Withdrawal:0.00 Ending Balance:911,067.51 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 DocuSign Envelope ID: 4F60D7B8-0110-459E-873C-27097C600240 Palm Desert Housing Authority Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio complies with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Barring unforeseen events, it has sufficient cash to fund Housing Authority operations for the next six months. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the Palm Desert Housing Authority investment activities for the month ending December 31, 2023. INVESTMENT SUMMARY $ Millions Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 CAMP Pool 52.10 3.26 - 55.35 LAIF Pool 1.01 - - 1.01 Investments Total 53.11$ 3.26$ -$ 56.36$ Cash 4.44 0.76 (3.72) 1.48 Total 57.55$ 4.02$ (3.72)$ 57.84$ DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 1/12/2024 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields PALM DESERT HOUSING AUTHORITY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:1,007,017.89 Total Withdrawal:0.00 Ending Balance:1,007,017.89 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 RDA Successor Agency Monthly Investment Summary Report December 2023 _________________________________________________________________________________ CITY OF PALM DESERT This investment portfolio is in compliance with the provisions of California Government Code Section 53601 and the City of Palm Desert investment policy. Pursuant to ABX126, the availability of cash to fund the Palm Desert RDA Successor Agency's debt service is dependent upon the County of Riverside and the State of California. All balances are bank balances. _______________________________________________ Veronica Chavez, Finance Director OVERVIEW This report summarizes the RDA Successor Agency investment activities for the month ending December 31, 2023. INVESTMENT SUMMARY Beginning Ending Book Value Purchases &Redemptions &Book Value Asset Class 12/1/2023 Deposits Withdrawals 12/31/2023 CAMP Pool 6,112.15 28.82 - 6,140.97 LAIF Pool 769.22 - - 769.22 County Pool 346.75 2.95 - 349.70 Investments Total 7,228.12$ 31.77$ -$ 7,259.89$ Trustee ^15,779,182.23 1,741.43 - 15,780,923.66 Cash 2,894,956.32 - (35,753.70) 2,859,202.62 Cash & Cash w/Fiscal Agentys Total 18,674,138.55$ 1,741.43$ (35,753.70)$ 18,640,126.28$ Total 18,681,366.67$ 1,773.20$ (35,753.70)$ 18,647,386.17$ ^ = Restricted funds based upon bond indenture terms. DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 1/12/2024 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 04, 2024 LAIF Home PMIA Average Monthly Yields S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Account Number: December 2023 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:769.22 Total Withdrawal:0.00 Ending Balance:769.22 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 DocuSign Envelope ID: 3447EC4F-861F-4618-8C3E-7D58D7A79EB1 [This page has intentionally been left blank.] Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: JANUARY 22, 2024 PREPARED BY: Liberty Urban, Deputy Director of Finance REQUEST: RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Receive and file the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. BACKGROUND/ANALYSIS: The Measure A fund is a special revenue fund that was created to keep track of funds received by the Riverside County Transportation Commission. In 1988, Riverside County voters approved a half cent sales tax, known as Measure A, to fund a variety of highway improvements, local streets and roads maintenance, commuter assistance and specialized transit projects. Conrad LLP performed the procedures that were agreed to by the Riverside County Transportation Commission, Riverside, California (RCTC) solely to assist RCTC with respect to an evaluation of the City of Palm Desert’s Measure A Transportation Fund and degree of the City’s compliance with RCTC requirements for the year ended June 30, 2023. Staff requests that the Council receive and file the Independent Accountants’ Report on Agreed- Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2023. Legal Review: This report has been reviewed by the City Attorney’s office. Appointed Body Recommendation: The Finance Committee received the Independent Accountants’ Report at their meeting on January 22, 2024 and made a recommendation to receive and file the report as presented. FINANCIAL IMPACT: There is no fiscal impact associated with this action. ATTACHMENTS: 1. Independent Accountants’ Report on Agreed-Upon Procedures [This page has intentionally been left blank.] Page 1 of 2 CITY OF PALM DESERT FINANCE COMMITTEE STAFF REPORT MEETING DATE: January 22, 2024 PREPARED BY: Liberty Urban, Deputy Director of Finance REQUEST: RECOMMEND AWARD OF CONTRACT TO LANCE, SOLL & LUNGHARD, LLP (LSL, CPAS) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE FISCAL YEARS ENDING JUNE 30, 2024 THROUGH 2026 RECOMMENDATION: Recommend award of contract to Lance, Soll & Lunghard, LLP (LSL CPAs) to perform professional auditing services for the fiscal years ending June 30, 2024 through 2026 in the amount of $89,082 for the first year, and subsequent years as outlined in Attachment 2. BACKGROUND/ANALYSIS: On October 3, 2023, staff issued a Request for Proposals for certified public accounting firms to provide professional auditing services for the fiscal years ending June 30, 2024 through 2028. Five proposals were received and reviewed by staff, and the top three firms were selected to make a presentation to the Auditing Services Contract subcommittee, which was made up of three staff members and two volunteers from the Finance Committee, including the following: • Robert Leo, Finance Committee Member • Faith Messinger, Finance Committee Member • Veronica Chavez, Finance Director • John Ramont, Deputy Director of Finance • Liberty Urban, Deputy Director of Finance The subcommittee concluded that during the interview process, LSL CPAs demonstrated a strong ability to fulfill the contract requirements by illustrating their dedication to recruiting and retaining high-quality professional staff, discussing their commitment to fostering a collaborative relationship with city staff, and showcasing their ability to meet ongoing independence requirements while maintaining continuity of service. The original Request for Proposals proposed a five-year contract with two one-year extension options, however, the subcommittee recommended a three-year contract with two one-year extension options. FINANCIAL IMPACT: The City performs an annual audit and funds are budgeted each year for this purpose. The cost is $89,082 for the fiscal year ended June 30, 2024. Subsequent years increase as detailed in Attachment 2. City of Palm Desert Recommend Award of Auditing Services Contract Page 2 of 2 ATTACHMENTS: 1. LSL Technical Proposal 2. LSL Cost Proposal 3. Draft Professional Services Agreement PREPARED BY Lance, Soll & Lunghard, LLP Certified Public Accountants License Number 2584 TECHNICAL PROPOSAL City of Palm Desert Professional Auditing Services RFP No. 2023-RFP-213 Date of Submission: November 9, 2023 Valid for 90 Days Authorized by Ryan Domino, CPA, Partner Ryan.Domino@lslcpas.com 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Attachment 1 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 1 www.lslcpas.com | 1 COVER LETTER November 9, 2023 John Ramont, Deputy Director City of Palm Desert, Finance Department 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Mr. Ramont, LANCE, SOLL & LUNGHARD, LLP (“LSL”) is pleased to present our proposal for professional auditing services and demonstrate our continued commitment to excellence to the City of Palm Desert (“City”). This proposal highlights our firm’s strength and stability, outlining our demonstrated experience, knowledge, and creative problem-solving capabilities as a leader in the field of governmental auditing. With our comprehensive government experience and our history with the City, we believe you will continue to find that LSL is the best-qualified accounting firm for the City. We understand that the City of Palm Desert is seeking a qualified firm to provide financial audit services, including related services, covering an initial term of five (5) years, beginning with the audit of the 2023-24 fiscal year, with the potential option to extend the contract for three (3) additional one-year terms through 2031. We affirm that our proposal fully aligns with all terms, conditions, and requirements stated in the RFP released on October 3, 2023. Ryan Domino is the assigned Engagement Partner for this proposal. He is authorized to make representations on behalf of our firm and can be reached by phone at (714) 672-0022 or by email at Ryan.Domino@lslcpas.com. We welcome the opportunity to discuss any aspect of our proposal to ensure your complete satisfaction. Please contact Ryan for any clarification or contract negotiations regarding this proposal. Sincerely, Ryan Domino, CPA, Partner Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Suite 203 Brea, CA 92821 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 2 www.lslcpas.com | 2 TABLE OF CONTENTS COVER LETTER ...................................................................................................................................... 1 TABLE OF CONTENTS ........................................................................................................................... 2 EXPERIENCE & TECHNICAL COMPETENCE ....................................................................................... 3 Firm History & Size ................................................................................................................................ 3 Location ................................................................................................................................................. 3 License to Practice in California ............................................................................................................ 4 Independence ........................................................................................................................................ 4 Government Auditing Standards ........................................................................................................... 4 Desk Review / Disciplinary Action ......................................................................................................... 4 Peer Review .......................................................................................................................................... 4 Similar Engagements with Other Government Entities ......................................................................... 7 Single Audit Experience ........................................................................................................................ 7 GFOA Award Program .......................................................................................................................... 8 REFERENCES ......................................................................................................................................... 8 FIRM STAFFING & KEY PERSONNEL ................................................................................................. 11 Organizational Chart ............................................................................................................................ 11 Engagement Team Resumes .............................................................................................................. 11 LSL Team Resources .......................................................................................................................... 12 PROPOSED METHOD TO ACCOMPLISH THE WORK ....................................................................... 13 LSL’s Understanding of the Scope of Work ......................................................................................... 13 Project Management Methodology ...................................................................................................... 14 Project Timeline ................................................................................................................................... 14 Proposed Work Plan ............................................................................................................................ 15 Proposed Segmentation ...................................................................................................................... 15 Approach to Selecting Sample Sizes .................................................................................................. 17 Type And Extent Of Analytical Procedures ......................................................................................... 17 Drawing Audit Samples for Compliance .............................................................................................. 17 LSL’s Approach to Understanding the City’s Internal Control Structure .............................................. 18 Determining Laws and Regulations Subject To Audit Test Work ........................................................ 18 Working Paper Retention and Access ................................................................................................. 18 Irregularities and Illegal Acts ............................................................................................................... 18 BENEFITS OF WORKING WITH LSL ................................................................................................... 19 Our Core Values .................................................................................................................................. 19 Best of Accounting Award ................................................................................................................... 20 Accounting Today Regional Leader .................................................................................................... 20 Training & Seminars ............................................................................................................................ 20 EXHIBIT A – CURRENT LIST OF MUNICIPAL CLIENTS .................................................................... 21 EXHIBIT B – ENGAGEMENT TEAM RESUMES .................................................................................. 24 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 3 www.lslcpas.com | 3 EXPERIENCE & TECHNICAL COMPETENCE FIRM HISTORY & SIZE LSL was established in 1929 and has grown as a leader in the government sector. Our full- service accounting firm is headquartered in Brea, California, with a dynamic team of 15 partners and 145 employees. We provide auditing, accounting, and consulting services to over 100 municipal clients, including cities, counties, water and electric utilities, 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. LOCATION 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 4 www.lslcpas.com | 4 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. 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 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. DESK REVIEW / DISCIPLINARY ACTION There have been no disciplinary actions against our organization since its inception. There have been no litigations against our firm in the past three years. 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. 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 5 www.lslcpas.com | 5 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 6 www.lslcpas.com | 6 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 7 www.lslcpas.com | 7 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES A current list of municipal clients can be found in Exhibit A, which lists LSL's most significant engagements of comparable complexity, scale, and nature to the scope of services described in this request for proposal performed within the last five (5) years. 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). Exhibit A includes a list of government audit clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table below highlights recent examples of federal programs audited by LSL. 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 Income 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 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 8 www.lslcpas.com | 8 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 also noted in Exhibit A. REFERENCES The following references highlight our experience in providing professional auditing services to other governmental organizations with similar size and scope as the City of Palm Desert. We invite you to contact them to gain insight into our working relationships and quality of service. City of Indio Contact Rob Rockwell, Assistant City Manager/Finance Director E-mail Address RRockwell@indio.org Address 100 Civic Center Mall Indio, CA. 92201 Telephone (760) 391-4029 Dates of Service 2015 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; Measure S AUP; Measure X Audit AUP; AQMD Audit; ERICA Audit; EVRA Audit; AUP over the City’s GANN limit; Indio Water Authority Audit; Landmark Golf AUP City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 9 www.lslcpas.com | 9 City of Oceanside Contact Jill Moya, CPA, Financial Services Director E-mail Address JMoya@oceansideca.org Address 300 N. Coast Hwy. Oceanside, CA 92054 Telephone (760) 435-3887 Dates of Service 2012 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; AUP over the City’s Gann Limit; RDA State Controller’s Report; Building Authority; CDC Audit; Public Financing Authority; Ocean Eleven AUP; REAC Submission AUP; Small Craft Harbor District Audit; Ocean Eleven Casino AUP; OPFA Audit City of Riverside Contact Nancy Garcia, Controller E-mail Address ngarcia@riversideca.gov Address 3900 Main Street Riverside, CA 92522 Telephone (951) 826-5466 Dates of Service 2019 – present Scope of Work Audit of the City’s ACFR, which receives the GFOA Award; Single Audit; audit of the City’s Water and Electric Utilities; audit of the City’s public financing authority’s financial statements; compliance audit and preparation of the City’s AQMD Fund’s financial statements; compliance audit of the City’s Successor Agency; and performance of agreed-upon procedures over the City’s Appropriations Limit Calculation and NTD reporting. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 10 www.lslcpas.com | 10 City of Fullerton Contact Toni Smart, Fiscal Services Manager E-mail Address Tonette.Smart@cityoffullerton.com Address 303 W. Commonwealth Ave. Fullerton, CA 92832 Telephone (714) 738-6522 Dates of Service 2012 – present Scope of Work Audit of City’s ACFR, which receives the GFOA Award; Single Audit; State Controller’s Report, City; AQMD Audit; Final RDA Audit; AUP Gann Limit; FFMA, FFA, FMEF, FPMA AUP; FMA Labor Costing AUP; POA Labor Costing AUP; Due Diligence Review; Cost Allocation Plan; Firefighters Association Negotiations; and Special Consulting Services City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 11 www.lslcpas.com | 11 FIRM STAFFING & KEY PERSONNEL ORGANIZATIONAL CHART ENGAGEMENT TEAM RESUMES Team resumes are available in Exhibit B, which detail 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 any continuing education courses taken by the team members during the past three years. Brandon Young, CPA Quality Assurance Partner 13 years of experience Ryan Domino, CPA Engagement Partner 11 years of experience Frank North, CPA Senior Manager 30 years of experience Calvin Kunkel, CPAAudit Manager9 years of experience Senior Associate Staff Associate Staff Associate Staff Associate Staff Associate City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 12 www.lslcpas.com | 12 Ryan Domino, CPA Engagement 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. Brandon Young, CPA Quality Assurance Partner Brandon is an expert in governmental accounting and auditing and trains our government team on the proper implementation of new GASB pronouncements, ensuring that our clients receive the highest level of service and expertise. Brandon was recently appointed to the AICPA State and Local Government Expert Panel, further demonstrating his expertise in the field. Brandon also serves on the CalCPA Governmental Accounting and Auditing Committee, specific to the State of California, and he is responsible for numerous white papers and technical clarifications, including those for GASB 68, 75, and 87. His contributions to this committee have helped to shape the accounting and auditing practices of government organizations in California. Other key employees who would be assigned to this engagement include Frank North and Calvin Kunkel. The audit team will also consist of Senior Auditor and an additional 3-4 staff associates for audit fieldwork. LSL TEAM RESOURCES LSL will not be subcontracting any portion of the engagement. All staff assigned to 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. Our governmental staff consists of three (3) Partners, two (2) Senior Managers, six (6) Managers, three (3) Supervisors, and sixteen (16) Professional Staff. Proposed team members City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 13 www.lslcpas.com | 13 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. 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. 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. 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. 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 GFOA. PROPOSED METHOD TO ACCOMPLISH THE WORK LSL’S UNDERSTANDING OF THE SCOPE OF WORK LSL understands that the City of Palm Desert is seeking a qualified firm to perform the City’s financial audit and related services, consisting of the following final financial and compliance reports: 1. City of Palm Desert’s ACFR Financial Audit 2. Palm Desert Recreational Facilities Corporation Audit 3. Single Audit 4. Gann Limit Verifications City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing 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 recognize 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. PROJECT TIMELINE 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 15 www.lslcpas.com | 15 PROPOSED WORK PLAN At LSL, we use a governmental audit program that will be tailored to the City’s operations to accommodate its specific circumstance 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. 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 2 Year-end Testing will begin in late September-early October. 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 April/May. October Segment 3 Draft Audit Letters, and Other Reports will be provided to the City in late October. The City will provide the Draft ACFR to LSL in late October or early November. Final Reports and Approval will be delivered by December 15th with bound copies delivered by January 5th. Delivery of Financial Statements and Presentation of Financials - LSL will be available as requested to present the results of the financial audit. December/January September April/May City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 16 www.lslcpas.com | 16 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. 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 17 www.lslcpas.com | 17 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 quality assurance partner. After the review and receipt of the signed Representation Letter from the City, LSL will provide a final report around December 15th of each year. APPROACH TO SELECTING SAMPLE SIZES 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. 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 18 www.lslcpas.com | 18 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. 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. WORKING PAPER RETENTION AND ACCESS All working papers and reports will be retained at LSL’s expense for a minimum of five (5) 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. IRREGULARITIES AND ILLEGAL ACTS LSL acknowledges our responsibility to make an immediate, written report of all irregularities and illegal acts, or indications of illegal acts, of which we become aware to the City Council, City Manager, City Attorney, the Finance Committee, and the Director of Finance. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 19 www.lslcpas.com | 19 BENEFITS OF WORKING WITH LSL LSL is a multi-location firm with formidable resources that provides a personal feel and hands- on client experience. LSL is ranked #15 on the Orange County Business Journal’s CPA Firm Book of Lists, which highlights the top accounting firms in Orange County. OUR CORE VALUES As we continue to grow and evolve, we recognized 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. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 20 www.lslcpas.com | 20 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. ACCOUNTING TODAY REGIONAL LEADER LSL CPAs has been recognized as an Accounting Today Regional Leader in 2023. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions. TRAINING & SEMINARS LSL regularly leads seminars and training courses on introductory governmental accounting, preliminary views on financial reporting, internal control risk assessments, and all GASB updates and best practices, which are made 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 or governmental auditing and accounting in general. City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 21 www.lslcpas.com | 21 EXHIBIT A – CURRENT LIST OF MUNICIPAL CLIENTS olum Client Contact Person Services Years Phone Agoura Hills Ms. C. Pinuelas, Finance Manager F 8 818-597-7319 * Barstow Ms. H. Riley, Admin Services Manager F, S 3 760-255-5115 * Big Bear Lake Ms. K. Ent, Director of Government Services F, S 25 909-866-5831 Burbank Ms. C. L Giraldo, Financial Services Director I 12 818-238-5487 Canyon Lake Mr. C. Mann, City Manager F 28 909-244-2955 * Carlsbad Mr. Z. Korach, Finance Director F, S 2 442-339-2127 * Cathedral City Mr. K. Biersack, Fiscal Officer F, S 13 760-770-0378 * Chino Hills Ms. C. Buhagiar, Finance Director F, S 26 909-364-2600 * Chula Vista Ms. S. Schoen, Director of Finance F, S 9 619-409-3818 * Citrus Heights Mr. A. Preciado, Accounting Manager F, S 4 916-727-4705 * Citrus Heights Water District Ms. T. Nossardi, Finance Manager F, U 2 916-735-7703 * Cypress Ms. D. Mullally, Assistant Finance Director F, S 6 714-229-6700 * Diamond Bar Mr. R. Samario, Interim Finance Director F, S 13 909-839-7051 * Dixon Ms. K. Zawadzki, Finance Director F, S 9 707-678-7000 * Downey Mr. A. Gandhy, Finance Director F, S 8 562-904-7265 * East Bay Municipal Utility District Ms. A. Miller, Controller F, U 5 510-287-0230 * Eastern Municipal Water District Ms. W. Garriz, Controller F, S 2 951-928-3777 * Fullerton Ms. T. Smart, Fiscal Services Manager F, S 12 714-738-3139 * Galt Mr. M. Boring, Finance Director F, S 6 209-366-7140 Georgetown Divide Public Utility District Ms. J. Buckle, Accounting Manager F, S, C 6 530-333-4356 Grand Terrace Ms. C. Clayton, Senior Accountant F 9 909-824-6621 * Indio Mr. R. Rockwell, Assistant City Manager/Director of Finance F, S 7 760-391-4029 Inglewood Ms. L. Gomez, Accounting Manager F, S 8 310-412-5127 * Irwindale Ms. K. Borhani, Finance Director F 28 626-430-2268 Jurupa Community Services District Mr. S. Popelar, Director of Finance and Administration F 4 951-685-7434 * Lake Elsinore Ms. N. Lassey, Finance Manager F, S 6 951-674-3124 * Lathrop Mr. T. Hedegard, Deputy Finance Director F, S 3 209-941-7320 Livingston Ms. V. Portillo, City Manager F, S 2 209-394-5550 * Lodi Ms. M. Munoz, Accounting Manager F, S 1 209-333-6700 * Lompoc Ms. C. Donnelly, Acting Management Services Director F, S 2 805-875-8283 * Los Angeles County Development Authority Mr. M. Fortini, Finance Director F, S 6 626-586-1890 * Malibu Ms. R. Feldman, City Manager F 19 310-456-2489 * Manhattan Beach Mr. S. Charelian, Finance Director F 18 310-802-5553 * Menlo Park Mr. M. Davis, Finance & Budget Manager F 5 650-330-6632 * Monrovia Ms. B. Bullis, Director of Administrative Services F, S 22 626-932-5510 * Monterey One Water Mr. F. Marsh, Chief Financial Officer F, S, U 9 831-645-4623 Monterey Peninsula Airport District Mr. M. Wilson, Controller F, S 5 831-648-7000 x201 * Moorpark Mr. P. Gagajena, Finance Director F, S 5 805-517-6213 * Newark Ms. K. Lee, Finance Director F 5 510-578-4288 * Oceanside Ms. J. Moya, Accounting Manager F, S 14 760-435-3887 Ontario International Airport Ms. K. Snow, Finance Manager F, S 6 714-415-9636 * Orange Ms. K. Bandhauer, Assistant Finance Director F, S 2 714-744-5500 * Orange County Fire Authority Ms. G. Cheung, Accounting Manager F, S 4 714-573-6000 * Orange County Water District Mr. R. Fick, CFO/Treasurer F, S 2 714-378-3200 Orchard Dale Water District Mr. R. Richard, Finance Manager F, U 4 562-941-0114 * Palm Desert Mr. V. Chavez, Finance Director F 6 760-346-0611 * Pleasanton Ms. D. Punzo, Financial Services Manager F, S 3 925-931-5402 * Rainbow Municipal Water District Ms. T. Largent, Finance Manager F, S 3 760-728-1178 * Rancho Cucamonga Ms. N. Daniels, Finance Director F, S, U 45 909-989-1851 Current List of Municipal Clients olum Client Contact Person Services Years Phone * Redondo Beach Ms. W. Collazo, Chief Deputy City Treasurer F, S 6 310-372-1171 x2428 * Rialto Ms. K. Stevens, Deputy Director of Finance F, S 2 909-421-7242 * Riverside Ms. N. Garcia, Controller F, S, U 4 951-826-5466 Rolling Hills Mr. R. Samario, Interim Finance Director F 14 310-377-1521 * Rosemead Ms. G. Molleda, City Manager 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 4 909-453-6010 * San Clemente Mr. J. Rahn, Finance Director F 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 Ms. G. Decavalles-Hughes, Finance Director F, S 7 310-458-8281 Shafter Mr. R. Sanchez, Administrative Services Director F, S 2 661-746-5043 Six Basins Watermaster Mr. L. Stahlhoefer, Controller F 14 949-420-3030 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. Linthicum, Chief Financial Officer F, U 15 909-621-5568 * Union Sanitary District Mr. M. Carlson, CFO/Business Services Manager F, U 6 510-477-7647 * Vacaville Ms. C. Reams, Accounting Manager F, S 3 707-449-5688 * Vallejo Ms. F. Cruz, Assistant Director, Finance F, S 4 707-648-5542 * Yolo County Mr. T. Haynes, Interim 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 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 24 www.lslcpas.com | 24 EXHIBIT B – ENGAGEMENT TEAM RESUMES Ryan Domino, CPA ENGAGEMENT PARTNER ACHIEVEMENTS Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA) and has been a presenter at CSMFO’s 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 231 total hours over the last three years, 204 of which were in governmental accounting and auditing subjects. Ryan meets the requirements of governmental CPE Government Auditing Standards. 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. Some of his presentations have covered: General auditing in accordance with GAGAS Accounting for capital assets GASB Statement Nos. 89, 90, 91, and 94 MEMBERSHIPS AICPA, CalCPA, CSMFO, GFOA EDUCATION Bachelor of Arts Degree in Business Administration with an emphasis in Accounting – California State University, Fullerton LICENSES & CERTIFICATIONS Certified Public Accountant: California Texas AICPA Advanced Single Audit Certification AUDIT ENGAGEMENTS City of Agoura Hills, CA City of Carlsbad, CA City of Cathedral City, CA City of Chula Vista, CA City of Fullerton, CA City of Indio, CA City of Lompoc, CA City of Moorpark, CA City of Orange, CA City of Pleasanton, CA City of Rialto, CA City of Riverside, CA City of San Clemente, CA City of San Juan Capistrano, CA City of Santa Monica, CA Eastern Municipal Water District Jurupa Community Services District Orange County Fire Authority Orange County Water District Orchard Dale Water District Rainbow Municipal Water District San Bernardino Muni. Water Dept. Three Valleys Muni. Water Dist. United Water Conservation Dist. Yorba Linda Water Dist. OTHER ENGAGEMENTS California Dept. of Healthcare Svcs. City of American Canyon, CA City of Marfa, TX Brandon Young, CPA QUALITY ASSURANCE PARTNER ACHIEVEMENTS Brandon is an expert in Governmental Accounting and Auditing, with over 12 years of experience serving a wide range of clients. He recently was appointed to serve on the prestigious AICPA State and Local Government Expert Panel, with the term beginning in May of 2023, and also has served on the CalCPA Governmental Accounting and Auditing Committee since 2018. CONTINUING EDUCATION 125 total hours over the last three years, 74 of which were in governmental accounting and auditing subjects. Brandon meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Brandon has performed all phases of governmental audits with numerous presentations to City Councils, Board of Supervisors, Board of Directors, and Audit Committees over the past twelve years. He routinely presents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material. He also regularly teaches current audit and accounting-related material at LSL training seminars, webinars, and client education workshops and training events. His work has entailed: The preparation of the ACFR for entities involved in CSMFO and GFOA in the U.S. Audit review and technical assistance throughout the year to deliver the most up-to-date information with current GASB pronouncements Presentation of audit results to Audit Committees or others charged with governance Risk assessment and evaluation of internal controls with COSO and Federal Green Book Single Audits in accordance with new Uniform Guidance MEMBERSHIPS AICPA, AICPA SLG Expert Panel CalCPA, CalCPA State GAA, CSMFO, GFOA EDUCATION Bachelor of Arts Degree in Accounting, Magna Cum Laude – Vanguard University LICENSE Certified Public Accountant: California ENGAGEMENTS City of Chula Vista City of Citrus Heights City of Coronado City of Dinuba City of Dixon City of Emeryville City of Galt City of Lathrop City of Live Oak City of Livingston City of Menlo Park City of Newark City of Pasadena City of Pleasanton City of Riverside City of Roseville City of Santa Monica City of Shafter Coachella Valley Water District County of Sutter County of Yolo Covered California East Bay Municipal Utility District GDPUD Inland Empire Utilities Agency Monterey Peninsula Airport District Orange County Water District San Joaquin Council of Gov. Santa Clarita Valley Water Agency Three Valleys Municipal Water Dist. Union Sanitary District Frank North, CPA SENIOR MANAGER ACHIEVEMENTS Frank currently serves as a technical reviewer for the Government Finance Officers Association (GFOA). He has earned the Advanced Single Audit Certification issued by the AICPA for planning, performing, and evaluating Single Audits in compliance with the Uniform Guidance. CONTINUING EDUCATION 142 total hours over the last three years, 86 of which were in governmental accounting and auditing subjects. Frank meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE With 30 years of experience in governmental audits, Frank has established himself as an outstanding asset and resource at LSL. He has demonstrated his talents in the areas of municipal accounting and auditing. During his time with the firm, Frank has performed all phases of our municipal audits, including ACFR audits, successor agency audits, component units, municipal utilities, and single audits. He has been involved in the following municipal engagements. His work entailed the preparation of the Comprehensive Annual Financial Report for those entities involved in the award programs of the California Society of Municipal Finance Officers and the Government Finance Officers Association of the United States and Canada. MEMBERSHIPS AICPA, CalCPA, GFOA EDUCATION Bachelor of Arts Degree in Business Administration, emphasis in Accounting – California State University, Fullerton LICENSE Certified Public Accountant: California ENGAGEMENTS City of Barstow City of Big Bear Lake City of Canyon Lake City of Chino Hills City of Downey City of Grand Terrace City of Inglewood City of Irwindale City of Malibu City of Manhattan Beach City of Rancho Cucamonga City of Redondo Beach City of Riverside City of Rialto City of San Marino Eastern Municipal Water District Calvin Kunkel, CPA AUDIT MANAGER ACHIEVEMENTS Calvin helps our clients prepare and implement their Annual Comprehensive Financial Report (ACFR) for the Government Finance Officers Association (GFOA) award. He brings insightful perspectives to tackling our client’s toughest obstacles. He loves helping clients recognize patterns and effectively apply analytic procedures to resolve their unique and complex challenges. CONTINUING EDUCATION 230 total hours over the last three years, 75 of which were in governmental accounting and auditing subjects. Calvin meets the requirements of governmental CPE Government Auditing Standards. EXPERIENCE Calvin has performed all phases of our government audits, including ACFR audits, Single Audits, and special districts. His 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 68, 75, and 84 journal entries Review of capital assets, debt service, and federal and state award schedules MEMBERSHIPS Firm Member, PrimeGlobal EDUCATION B.A. degree in English – Illinois State University Master of Accountancy – Northern Illinois University LICENSE Certified Public Accountant Illinois ENGAGEMENTS City of Burbank City of Cathedral City City of Diamond Bar City of Inglewood City of Palm Desert City of Redondo Beach City of Rialto City of Vacaville Ontario Intl Airport Authority San Bernadino MWD SCAQMD PREPARED BY Lance, Soll & Lunghard, LLP Certified Public Accountants License Number 2584 COST PROPOSAL City of Palm Desert Professional Auditing Services RFP No. 2023-RFP-213 Date of Submission: November 9, 2023 Valid for 90 Days Authorized by Ryan Domino, CPA, Partner Ryan.Domino@lslcpas.com 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Attachment 2 City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 1 www.lslcpas.com | 1 COST PROPOSAL ALL-INCLUSIVE MAXIMUM PRICE *Price includes one (1) major program. Each additional program is $3,500. LSL’S STANDARD HOURLY BILLING RATES *The quoted fees above include a standard 3% increase year-over-year. However, this percentage increase will be compared to the CPI indicator each year and will be adjusted if that amount exceeds 3%. The higher of the 3% or CPI indicator will be used each year. Report 2023/24 2024/25 2025/26 2026/27 2027/28 Optional 2028/29* Optional 2029/30* Optional 2030/31* $78,450 $80,804 $83,228 $85,725 $88,297 $90,946 $93,674 $96,484 $7,370 $7,591 $7,819 $8,054 $8,296 $8,545 $8,801 $9,065 $12,570 $12,947 $13,335 $13,735 $14,147 $14,571 $15,008 $15,458 $590 $608 $626 $645 $664 $684 $705 $726 Included Included Included Included Included Included Included Included $98,980 $101,950 $105,008 $108,159 $111,404 $114,746 $118,188 $121,733 ($9,898) ($10,195) ($10,501) ($10,816) ($11,140) ($11,475) ($11,819) ($12,173) $89,082 $91,755 $94,507 $97,343 $100,264 $103,271 $106,369 $109,560 OptionalAll-Inclusive Maximum Price by Report Palm Desert Recreational Facilities Corporation Audit Financial Statements Single Audit* Total for Fiscal Year (Not-to-Exceed) Out-of-Pocket Expenses SUBTOTAL FOR FISCAL YEAR Gann Limit Verifications Current Client Discount (10%) City of Palm Desert RFP No. 2023-RFP-213 Professional Auditing Services 2 www.lslcpas.com | 2 LEVEL OF STAFF ASSIGNED AND NUMBER OF HOURS TO BE ASSIGNED *Hours proposed are for one (1) major program. MANNER OF PAYMENT Progress payments will be made on the basis of hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's proposal. Interim billings shall cover a period of not less than a calendar month. The final ten percent (10%) of the total all-inclusive maximum price will be paid upon delivery of the firm's final reports. Segment/Task Partners Manager Senior Experienced Staff Staff Clerical Total Financial Statements Interim Testwork 4 4 40 - 80 - 128 Year-End Testwork - - 120 50 100 - 270 Report/Review/Supervision 16 40 - - - 13 69 Subtotal 20 44 160 50 180 13 467 Single Audit* Testwork - - 10 24 - - 34 Report/Review/Supervision 2 4 - - - 3 9 Subtotal 2 4 10 24 - 3 43 Testwork 2 3 62 - - - 67 Report/Review/Supervision - - - - - - - Subtotal 2 3 62 - - - 67 Gann Limit Verifications Testwork - 1 2 - - - 3 Report/Review/Supervision - - - - - - - Subtotal - 1 2 - - - 3 TOTAL PROPOSED HOURS: 24 52 234 74 180 16 580 TOTAL PROPOSED HOURS Palm Desert Recreational Facilities Corporation Audit DRAFTContract No. ___________ 1 Revised 07-2023 BBK 72500.00001\32374915.1 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1.Parties and Date. This Agreement is made and entered into this 15th day of February, 2024, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California 92260-2578 (“City”) and LANCE, SOLL & LUNGHARD, a Limited Liability Partnership, with its principal place of business at 203 N. BREA BLVD., STE. 203, BREA, CA 92821 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Audit Services (hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3. Terms. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from February 15, 2024, to June 30, 2026, with two optional one-year extensions at the City’s discretion, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees, or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be DRAFTContract No. ___________ 2 Revised 07-2023 BBK 72500.00001\32374915.1 responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Ryan Domino, Partner. 3.2.5 City's Representative. The City hereby designates Veronica Chavez, Finance Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates Ryan Domino, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants, and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such DRAFTContract No. ___________ 3 Revised 07-2023 BBK 72500.00001\32374915.1 licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration DRAFTContract No. ___________ 4 Revised 07-2023 BBK 72500.00001\32374915.1 Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, physical disability, ancestry, sex, age, marital status, gender, gender identity, gender expression, sexual orientation, reproductive health decision making, veteran or military status, or any other consideration made unlawful by federal, state, or local laws. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. DRAFTContract No. ___________ 5 Revised 07-2023 BBK 72500.00001\32374915.1 (D) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers, and representatives. (E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (1) A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies. (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies. (F) Fidelity Coverage. Consultant shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence. (G) Cyber Liability Insurance. [Reserved] If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. (A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B) Duration of Coverage. Consultant shall procure and maintain for the duration of the 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, his/her agents, representatives, employees or subconsultants. DRAFTContract No. ___________ 6 Revised 07-2023 BBK 72500.00001\32374915.1 (C) Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured. (D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. (G) Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. DRAFTContract No. ___________ 7 Revised 07-2023 BBK 72500.00001\32374915.1 (J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall DRAFTContract No. ___________ 8 Revised 07-2023 BBK 72500.00001\32374915.1 not exceed EIGHTY-NINE THOUSAND, EIGHTY-TWO DOLLARS ($89,082.00) for the first year, NINETY-ONE THOUSAND, SEVEN HUNDRED FIFTY-FIVE DOLLARS ($91,755.00) for the second year and NINETY-FOUR THOUSAND, FIVE HUNDRED SEVEN DOLLARS ($94,507.00) for the third year, without written approval of the City Council or City Manager, as applicable. Compensation for additional optional years of service is set forth in Exhibit “C.” 3.3.2 Payment of Compensation. Consultant shall submit to City invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City or included in Exhibit "C" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Labor Code Requirements. 3.4.1 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which 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. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, DRAFTContract No. ___________ 9 Revised 07-2023 BBK 72500.00001\32374915.1 at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Lance, Soll & Lunghard, LLP 203 N. Brea Blvd., Ste. 203 Brea, CA 92821 ATTN: Ryan Domino, CPA, Partner City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 ATTN: Veronica Chavez, Finance Department Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be DRAFTContract No. ___________ 10 Revised 07-2023 BBK 72500.00001\32374915.1 prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents, and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment, or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such DRAFTContract No. ___________ 11 Revised 07-2023 BBK 72500.00001\32374915.1 materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful DRAFTContract No. ___________ 12 Revised 07-2023 BBK 72500.00001\32374915.1 misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, DRAFTContract No. ___________ 13 Revised 07-2023 BBK 72500.00001\32374915.1 illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE] DRAFTContract No. ___________ 14 Revised 07-2023 BBK 72500.00001\32374915.1 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND LANCE, SOLL & LUNGHARD, LLP. IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT By: Veronica Chavez Finance Director Attest: By: Anthony Hernandez City Clerk Approved as to form: By: Best Best & Krieger LLP City Attorney LANCE, SOLL & LUNGHARD, A LIMITED LIABILITY PARTNERSHIP By: Its: Printed Name: Ryan Domino, CPA, Partner QC: _____ Insurance: _____ Initial Review _____ Final Approval DRAFTContract No. ___________ Exhibit “A” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT “A” SCOPE OF SERVICES PROVIDE AUDITING SERVICES TO THE CITY OF PALM DESERT FOR ITS FINANCIAL REPORT FOR THE FISCAL YEARS ENDING JUNE 30, 2024 THROUGH 2026. DRAFTContract No. ___________ Exhibit “B” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT "B" SCHEDULE OF SERVICES Completion Date* Description of Tasks April/May  An entrance conference will be held before interim testing begins in April/May. Late September/Early October  Year-end testing begins in late September/early October, exit conference held on the last day of fieldwork Late October/Early November  Draft audit letters and other reports provided to the City in late October  The City will provide the draft ACFR to LSL in late October/early November December  Final reports and approval delivered by December 15th, with bound copies delivered by January 5th January  Delivery of financial statements and presentation of financials  LSL will be available as requested to present the results of the financial audit *These dates may be modified to accommodate scheduling if mutually agreed upon by both parties. DRAFTContract No. ___________ Exhibit “C” Revised 07-2023 BBK 72500.00001\32374915.1 EXHIBIT "C" COMPENSATION All-Inclusive Maximum Price by Report Optional Optional Optional Report 2023/24 2024/25 2025/26 2026/27 2027/28 Financial Statements $78,450 $80,804 $83,228 $85,725 $88,297 Single Audit* $7,370 $7,591 $7,819 $8,054 $8,296 Palm Desert Recreational Facilities Corporation Audit $12,570 $12,947 $13,335 $13,735 $14,147 Gann Limit Verifications $590 $608 $626 $645 $664 Out-of-Pocket Expenses Included Included Included Included Included Subtotal for Fiscal Year $98,980 $101,950 $105,008 $108,159 $111,404 Current Client Discount (10%) ($9,898) ($10,195) ($10,501) ($10,816) ($11,140) Total for Fiscal Year (Not-to-Exceed) $89,082 $91,755 $94,507 $97,343 $100,264 *Price includes one (1) major program. Each additional program is $3,500. [This page has intentionally been left blank.] CITY OF PALM DESERT ATTENDANCE REPORT Advisory Body: Prepared By: Year 2023 2023 2023 2023 2023 2023 Month Jan Mar May Jul Sep Nov Date 24-Jan 28-Mar 31-May N/A 26-Sep 28-Nov Alexander, Karen A P A - N/A N/A 3 3 Garcia, Carlos P P P - P P 0 0 Heuring, Gretchen N/A N/A N/A N/A P P 0 0 Leo, Robert P P P - P P 0 0 Messenger, Faith E P P - P P 2 0 Wuest, Jake P P P - E P 0 0 Harnik, Jan*N/A N/A N/A - N/A N/A 0 0 Kelly, Kathleen*P P P - P P 0 0 Quintanilla, Karina*P P A - P P 1 1 Palm Desert Municipal Code 2.34.010: P Present A Absent E Excused -No meeting Bimonthly: Two unexcused absences from regular meetings in any twelve-month period shall constitute an automatic resignation of members holding office on boards that meet bimonthly. Total Absences Total Unexcused Absences Finance Committee Michelle Nance * Mayor and Mayor Pro Tem rotating positions are voting members of this Committee [This page has intentionally been left blank.]