Council opts to retain current auditor for three-year contract after competitive review

The Rolling Hills Estates City Council voted to retain its current auditing firm for a proposed three-year contract through audits for the fiscal year ending 2027, choosing the incumbent's lower-fee quote over a new firm recommended by staff.

Staff told the council that two firms submitted proposals through an informal request process and that Vasquez and Company had submitted a lower-price proposal than most other firms. At the council's direction, staff then asked the incumbent auditor (LSL) for an informal quote; LSL's quote was essentially unchanged from the current annual fee, at about $3,233,000 per year as presented. Staff briefed council that over a three-year period the difference between Vasquez and Company's proposal and LSL's quote would be roughly $42,000 to $43,000.

In presenting the options, staff acknowledged a common best practice to rotate audit firms on a multi-year cycle, noting continuity with the same firm can be valuable and that agencies often rotate partners or managers to mitigate the risks of a long-term relationship.

Council member Weston moved to continue with the city's current auditor at the price quoted by LSL. The council conducted a roll-call voice vote: Council member Mersch: yes; Council member Wilson: yes; Council member Black: yes; Mayor Pro Tem Deringer: yes; Mayor Piper: yes. The motion passed unanimously.

Staff said it will return to council with a contract amendment to award the audit engagement to LSL and to document the three-year term. Council discussion noted the cost savings cited but recognized the perception issue around long-term auditor relationships and that future councils could revisit rotation if desired.