Title
Emergency Medical Services, a division of the Chief Administrative Office, recommending the Board:
1) Approve and authorize the Chair to sign retroactive Amendment I to Agreement 9092 with LSL LPP, formerly Lance, Soll & Lunghard, LLP, to update the vendor’s name and address and to increase compensation by $77,000 for additional auditing services; and
2) Authorize the Purchasing Agent to execute any necessary amendments to said agreement, excluding term extensions and increases to compensation, contingent upon approval by County Counsel and Risk Management.
FUNDING: County Service Areas 3 and 7.
Body
DISCUSSION / BACKGROUND
The County contracts with two Joint Powers Authorities (JPAs) for the provision of ambulance services within the County. The El Dorado County Emergency Services Authority (EDCESA) provides services in the West Slope, and the California Tahoe Emergency Services Operations Authority (Cal Tahoe) provides services in the Tahoe Basin, excluding the West Shore area. The JPAs are public agencies that are fully funded by the County.
The JPAs are required to have their financial statements audited on an annual basis, both due to GAAP requirements and pursuant to their agreements with the County. The County historically selects and contracts with auditing firms for the auditing of the JPAs.
On November 12, 2024, the Board approved Legistar file 24-1688, authorizing Agreement 9092 with Lance, Soll & Lunghard, LLP for annual financial auditing services of the JPAs for Fiscal Year 2022-23 (FY22-23) through Fiscal Year 2025-26 (FY25-26).
Staff are requesting approval of retroactive Amendment I to Agreement 9092, effective as of the original contract execution date, November 18, 2024, to update the vendor’s name and address and to increase compensation by $77,000, for a total amount of $277,450, to allow for additional required auditing services.
Once the vendor began working on the contracted audits, it was determined that additional work was required to maintain compliance with auditing requirements. The additional work includes assistance with government wide financial statement adjustments, Governmental Accounting Standards Board (GASB) pronouncements, footnotes, and accounting standards for FY22-23 through FY25-26 for EDCESA and assistance with government wide financial statement adjustments for FY22-23 for Cal Tahoe.
During review of Amendment I, the County became aware that the vendor’s name was legally changed from Lance, Soll, & Lunghard, LLP, to LSL, LLP. Additionally, the vendor’s local address and headquarters location have changed. The proposed amendment reflects these changes.
The Board is being asked to approve this amendment retroactively due to the out-of-scope work being a necessary part of the auditing services. Had the vendor waited for the amendment before completing the out-of-scope work, the annual audits would not have been completed timely.
ALTERNATIVES
Should the Board choose not to approve the increase in the vendor’s compensation of $77,000 for the additional work, the JPAs will be unable to maintain compliance with auditing requirements.
PRIOR BOARD ACTION
On September 17, 2024, the Board of Supervisors authorized an exemption from the competitive bidding process and authorized the Purchasing Agent to negotiate a contract with Lance, Soll & Lunghard, LLP. (24-0976)
On November 12, 2024, the Board of Supervisors authorized Agreement 9092 with Lance, Soll & Lunghard, LLP for annual financial auditing services of the JPAs for Fiscal FY22-23 through FY25-26. (24-1688)
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management have reviewed and approved the proposed Amendment.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The annual financial audits of the JPAs are funded by County Service Areas 3 and 7. These County Service Areas were established to provide and fund ambulance services, and are funded primarily by ambulance fees, special taxes and assessments, and property taxes. The current budget includes allocations for these services.
The total compensation provided for under the agreement is $277,450, for services as indicated below:
FISCAL YEAR ENDING
JUNE 30, 2023 $89,000
JUNE 30, 2024 $62,000
JUNE 30, 2025 $62,810
JUNE 30, 2026 $63,640
TOTAL ANNUAL AUDITS $277,450
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain Board Chair signature on one copy of Amendment I to Agreement 9092 and send to CAO Fiscal Attn: Serena Lemmons.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Emma Owens, Chief Budget Officer