Campbell City Council
April 21, 2026

City Council Agenda
City of Campbell, 70 N. First St., Campbell, California NOTE: This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act. Councilmember Scozzola will attend virtually from Playa de Deportes San Josecito, Calle Twin Rivers, Osa, Costa Rica. Councilmember Lopez will attend virtually from The Citizen Hotel, Autograph Collection 926 J. Street, Sacramento, CA 95814. A quorum of the City Council will be in attendance at the Campbell City Hall Council Chambers.

The City Council meeting will be live-streamed on Channel 26 (Xfinity) or Channel 88 (Direct TV), the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.

Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://www.campbellca.gov/signup. After registering, you will receive a confirmation email containing information about joining the meeting. Members of the public may attend the meeting in person at Campbell City Hall - Council Chambers.

Public comment will also be accepted via email at [email protected] until 12:00 p.m. prior to the start of the meeting. Written comments will be posted on the website and distributed to the Council. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, April 21, 2026 07:00 PM
City Hall Council Chamber

CALL TO ORDER/ROLL CALL

PLEDGE OF ALLEGIANCE

SPECIAL PRESENTATIONS AND PROCLAMATIONS
Please Note: Items listed under Special Presentations and Proclamations are considered ceremonial. The City Council will not take action on these matters.

Proclamation Declaring April 30, 2026, as "Arbor Day" in the City of Campbell

1. 2.

3. 3.1
Recommended Action
It is recommended that the City Council proclaim April 30, 2026, as “Arbor Day” in the City of Campbell.

COMMUNICATIONS AND PETITIONS

ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.

COUNCIL ANNOUNCEMENTS

CONSENT CALENDAR
NOTE: All matters listed under consent calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of City Council, City staff, or a member of the public. Any person wishing to speak on any item on the consent calendar should ask to have the item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.

Minutes of City Council Executive Session Meeting of April 7, 2026.

Recommended Action
Approve the executive session meeting minutes of April 7, 2026.

Minutes of City Council Regular Meeting of April 7, 2026. Page 12 Recommended Action
Approve the regular meeting minutes of April 7, 2026.

Approving the Bills and Claims Page 19
Recommended Action
Approve the bills and claims in the amount of $3,218,731.12.

Audit Services Contract Award (Resolution/Roll Call Vote) Page 21 Recommended Action

4. 5.

6. 7.

7.1 7.2

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That the City Council adopt a resolution approving a contract and authorizing the City Manager to execute a three-year agreement with an option to extend for two additional years with LSL, LLP, Inc. for financial audit services in an aggregate amount not to exceed $398,000 for the five-year period.

PUBLIC HEARINGS AND INTRODUCTIONS OF ORDINANCES
NOTE: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item.

Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

FY 2027 Business License Public Hearing and Introduction of an Ordinance Amending Provisions of the Campbell Municipal Code to Revise the Business License Tax Rates Effective in Fiscal Year 2027 (Ordinance/Roll Call Vote)

Recommended Action
That the City Council introduce and take first reading of an Ordinance amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal year (FY) 2027.

Public Hearing to Consider Options for Continued
Implementation of the Starter Home Revitalization Act: (1) Adoption of an Interim Ordinance Reestablishing the Urgency Measures of Interim Ordinance No. 2334, with an Amendment Revising the Method of Applying Vacancy Requirements to Single-Family Residential Properties; or (2) Direction to Return at a Subsequent Meeting with an Ordinance Extending Interim Ordinance No. 2334 Without Revision (Ordinance/ 4/5 Roll Call Vote)

Recommended Action
It is recommended that the City Council: (1) adopt the attached interim ordinance reestablishing the urgency measures of Interim Ordinance No. 2334, with an amendment revising the method of applying vacancy requirements to single-family residential properties, and consider whether to direct staff to pursue development of a potential demolition-control ordinance for future Council consideration; or (2) direct staff to return at a subsequent meeting with an ordinance extending Interim Ordinance No. 2334 without revision.

Public Hearing to Consider Adoption of an Ordinance to

8. 8.1

8.2 8.3
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Extend Interim Ordinance No. 26-2345 Which Established
Urgency Measures in Response to SB 79, the Abundant and Affordable Homes Near Transit Act of 2025 (File No. PLN-2025- 50) (Ordinance / Roll Call Vote)
Recommended Action
That the City Council adopt an Ordinance, extending Interim Ordinance No. 26- 2345, which established urgency measures in response to SB 79, the Abundant and Affordable Homes Near Transit Act of 2025.

Approval of Fiscal Year 2027 Schedule of Fees and Charges (Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a Resolution approving the Fiscal Year (FY) 2027 Schedule of Fees and Charges, effective July 1, 2026.

NEW BUSINESS
Review of Draft Climate Action and Adaptation Plan (CAAP) and Direction on Final Revisions

Recommended Action
That the City Council receive and review the Draft CAAP; receive and consider public comments provided during the review period; and provide direction to staff on modifications to be incorporated into the final CAAP to be returned for adoption.

UNFINISHED BUSINESS

COUNCIL COMMITTEE REPORTS
Council Committee Reports Page 771
Recommended Action
That the City Council report on activities from their committee assignments.

ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agenda packet in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://pub-campbell.escribemeetings.com with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to

8.4 9.

9.1 10.

11. 11.1

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the meeting. All documents not posted prior to the meeting will be posted the next business day.

In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.

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City Council Report
DATE: April 21, 2026
TITLE: Proclamation Declaring April 30, 2026, as "Arbor Day" in the City of Campbell
RECOMMENDED ACTION:

It is recommended that the City Council proclaim April 30, 2026, as “Arbor Day” in the City of Campbell.

BACKGROUND
On April 10, 1872, journalist and newspaper editor J. Sterling Morton established Arbor Day in the state of Nebraska with hopes that it would spread across the country. This first Arbor Day challenged the people of Nebraska who were pioneers and missed the trees and forests of the east. The challenge was to plant as many trees as possible on that day.

The citizens of Nebraska answered the challenge by planting more than 1 million trees on the first Arbor Day. During the 1870’s, other states passed legislation to observe Arbor Day, and the tradition began in schools nationwide in 1882. Arbor Day is a day on which individuals and groups are encouraged to plant and care for trees.

Trees provide vital protection for the earth’s topsoil from erosion, oxygen, and homes for wildlife. They also are a renewable resource that provides a variety of materials for building, fuel and office supplies. They beautify our environment, provide shade on a sunny day and improve our quality of life. National Arbor Day celebrates all these things and encourages American generations to enjoy and care for their natural environment.

DISCUSSION
National Arbor Day falls on the last Friday in April. Many states also have their own unique Arbor Day designations. The State of California usually designates an entire week in March to celebrate Arbor Day. For 2026, the state is recognizing the entire week of April 7 through 14 as Arbor Week, leaving it to individual agencies to select a more specific date for their Arbor Day celebration events.

The City of Campbell has been declared a “Tree City USA” by the National Arbor Day Foundation each year since 1982. For the past 43 years, the City has earned its eligibility for the recognition by meeting the foundation’s requirements for a “Tree City” status. To receive the award a city must:

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1. Have a tree protection ordinance

2. Have a tree board or department

3. Have a comprehensive community forest program; and

4. Observe Arbor Day
The City of Campbell will be observing Arbor Day this year on Thursday, April 30. This proclamation would designate April 30, 2026, as “Arbor Day” in the City of Campbell. It is customary for the City to host a tree planting event in conjunction with the Arbor Day observance. This year the event will take place at John D. Morgan Park and will include the planting of six 15-gallon sized trees. Planting participants will include the students from DaVinci Academy. West Valley Clean Water will also be present to share information. Staff will send out an informational item over social media to recognize Arbor Day.

FISCAL IMPACT
There is no fiscal impact associated with this action.

PREPARED BY: Ron Taormina, Public Works Superintendent
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Report Approval Details
Document Title: Report - Proclamation Declaring April 30, 2026, as Arbor Day in the City of Campbell.docx
Attachments: PROCLAMATION for Arbor Day.docx
Final Approval
Date:

April 15, 2026
This document and all of its attachments were approved and signed as outlined below:

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PROCLAMATION
OF THE

MAYOR OF THE CITY OF CAMPBELL
WHEREAS, in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS, this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska, and
WHEREAS, Arbor Day is now observed throughout the nation and the world; and WHEREAS, trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce oxygen, and provide habitat for wildlife; and
WHEREAS, trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and countless other wood products; and
WHEREAS, trees in our city increase property values, enhance the economic vitality of business areas and beautify our community; and
WHEREAS, trees are a source of joy and spiritual renewal; and WHEREAS, the Federal Government has declared the last Friday in April as National Arbor Day; and
WHEREAS, the City of Campbell is committed to growing and maintaining a vibrant Community Forest; and
WHEREAS, the City of Campbell has been recognized as a Tree City USA by The National Arbor Day Foundation and desires to continue its tree-caring ways.

NOW, THEREFORE, I, Daniel E. Furtado, Mayor of the City of Campbell, do hereby proclaim April 30, 2026, as ARBOR DAY in the City of Campbell, and I urge all citizens to support efforts to protect our trees and woodlands.

Further, I urge all citizens to plant trees to gladden the heart and promote the well-being of this and future generations.

WITNESS MY HAND AND SEAL OF THE CITY OF CAMPBELL this 21st day of April 2026.
___________________________________
Daniel E. Furtado, Mayor
City of Campbell, California
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CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

EXECUTIVE SESSION MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, April 07, 2026 06:30 PM
Doetsch Conference Room
This City Council meeting was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

PRESENT:

Mayor Furtado
Councilmember Lopez
Councilmember Hines
Vice Mayor Bybee
ABSENT:

Councilmember Scozzola

1. CALL TO ORDER/ROLL CALL
The City Council of the City of Campbell convened this day in the special meeting place, the Doetsch Conference Room, 70 N. First Street, Campbell, California.

2. PUBLIC COMMENT
There was no public comment.

3. MOVE INTO CLOSED EXECUTIVE SESSION
A. Personnel
B. Litigation - CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Paragraph (1) of subdivision (d) of California Government Code Section 54956.9) Name of Case: Leitz v. City of Campbell, et al; Santa Clara County Superior Court Case No. 24CV449456.

C. Real Property
D. Labor Negotiations
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The City Council met in Executive Session to discuss Item B – Litigation.

City Attorney Seligmann, City Manager Loventhal, Human Resources Manager Chang, and legal counsel Morin Jacob, of Liebert Cassidy Whitmore, were in attendance.

4. ADJOURN
Mayor Furtado adjourned the meeting at 6:55 p.m.

APPROVED: Daniel E. Furtado, Mayor
ATTEST: Kristen Epolite, Deputy City Clerk
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CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, April 07, 2026 07:00 PM
City Hall Council Chamber
This City Council meeting was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

This meeting was recorded and can be viewed in its entirety at: https://pubcampbell.escribemeetings.com PRESENT:

Vice Mayor Bybee
Councilmember Hines
Councilmember Lopez
Mayor Furtado
ABSENT:

Councilmember Scozzola

1. CALL TO ORDER/ROLL CALL
The City Council of the City of Campbell convened this day in the regular meeting place, the City Hall Council Chamber, 70 N. First St., Campbell, California.

Roll call was taken and quorum was confirmed.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Campbell Police Communications Supervisor, Jennifer Kenton in recognition of National Public Safety Telecommunicators Week.

Mayor Furtado presented a Certificate of Appreciation for leading the Pledge.

3. SPECIAL PRESENTATIONS AND PROCLAMATIONS

3.1 Request for Proclamation for National Public Safety Telecommunicators Item 7.2
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Week
Recommended Action: That the City Council recognize April 12-18, 2026, as “National Public Safety Telecommunicators Week” to honor the Dispatchers of the Campbell Police Department.

Mayor Furtado proclaimed the week of April 12-18, 2026 as "National Public Safety Telecommunicators Week" in the City of Campbell. Mayor Furtado spoke about the Campbell Police Dispatchers and their hard work, providing support on 911 calls and dispatching personnel to emergencies.

Mayor Furtado presented the proclamation to Campbell Police Communications Supervisor, Jennifer Kenton.

Ms. Kenton thanked the council for their support and expressed gratitude for the Campbell community.

Councilmembers expressed their appreciation to the department for their important work, professional demeanor and commitment to public service.

3.2 Proclamation Declaring April 15, 2026 as “National Laundry Day” in the City of Campbell
Recommended Action: That the Mayor proclaim April 15, 2026 as "National Laundry Day" in the City of Campbell.

Mayor Furtado proclaimed April 15, 2026 as "National Laundry Day" in the City of Campbell. Mayor Furtado spoke on the important role that access to clean clothing and linens plays in supporting public health, personal dignity, and overall quality of life.

Mayor Furtado presented the proclamation to Susan Reams, founder of The Little Free Laundry Services.

Ms. Reams voiced her gratitude to the City Council for recognizing National Laundry Day. The Little Free Laundry Services provides free access to laundry services for individuals and families in need, aiming to restore dignity, promote health, and uplift members of our community who may be struggling.

4. COMMUNICATIONS AND PETITIONS
There were no communications and petitions.

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5. ORAL REQUESTS
Laura Holmes, Campbell resident, stated concerns about the brightness of the Campbell Community Center flagpole lights.

The following Campbell residents spoke about Ordinance 2334; Adopting Urgency Measures to Implement Senate Bill No. 1123 (2024) and Assembly Bill No. 130 (2025), Regarding Ministerial Approval of Starter Home Projects.

Garrett Anderson
Rodney Asano
Adam Buchbinder
Rebecca Campos
Alan Crownover
Roy DiVittorio
Rajesh Dorairajan
Travis Galdieri
Bonnie Harper
Karen Holmes
Dale Luck
Raja Pallela
Jung Park
Rudy Ruano
Gordon Wong
Qing Zan
Mike Bogart, Campbell Resident, spoke about his concerns with a neighbor's approved plans to have an old oak tree removed and a new tree put in its place.

6. COUNCIL ANNOUNCEMENTS
TRUST is a community service that helps Santa Clara County residents during an urgent mental health or substance use situation. Call Centers and field response teams are available 24/7 to answer calls for help. Call 988 for the local 408 area code.

Are you ready for summer? Registration for summer camps and swim lessons is now available. Please visit the summer preview guide on the city’s website at www.campbellca.gov to find out more about these programs.

For the 44th consecutive year, the National Arbor Day Foundation has proclaimed the City of Campbell “Tree City USA.” In celebration of this award, the community is invited to participate in an Arbor Day celebration at 10:00 am on Thursday, April 30 at John D.

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Morgan Park at picnic area 2.

On Friday, April 24 from 5:30pm-7:30pm History Happy Hour at the Ainsley House will present Museum Researcher, Nick Garcia, to discuss how the golden era of New England whaling became intertwined with California—and even Campbell itself—revealing surprising maritime connections that helped shape our local history. For registration information please visit Campbellmuseums.com
The Boogie Music Fest draws over 45,000 attendees from across the Bay Area to Downtown Campbell each year. This year’s event will take place on Saturday, May 16 from 10am to 6pm and Sunday, May 17 from 10am to 5pm. There are many ways to be part of the excitement: volunteer at the festival, showcase your business with a booth, apply to become a food or artisan vendor, or join as a festival sponsor. To find out more, please visit the Campbell Chamber of Commerce website at [email protected]

7. CONSENT CALENDAR
Mayor Furtado asked if anyone wished to remove an item off the Consent Calendar.

The Consent Calendar was considered as follows:

MOVER Bybee
SECONDER Lopez
Recommended Action: That the City Council approve the Consent Calendar.

RESULT: ADOPTED [UNANIMOUS]

7.1 Minutes of City Council Special Meeting of March 5, 2026.

Recommended Action: Approve the special meeting minutes of March 5, 2026.

This action approves the special meeting minutes of March 5, 2026.

7.2 Minutes of City Council Regular Minutes of March 24, 2026.

Recommended Action: Approve the regular meeting minutes of March 24, 2026.

This action approves the regular meeting minutes of March 24, 2026.

7.3 Approving the Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $2,757,137.70.

This action approves the bills and claims in the amount of $2,757,137.70 as follows:

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bills and claims checks dated March 9, 2026, in the amount of $2,071,540.37; payroll checks dated March 12, 2026, in the amount of $71,015.67; and bills and claims checks dated March 16, 2026, in the amount of $614,581.66.

7.4 Monthly Treasurer’s Report (February 2026)
Recommended Action: That the City Council review and accept the Monthly Treasurer’s Report for the month ended February 28, 2026.

This action reviews and accepts the Monthly Treasurer’s Report for the month ended February 2026.

7.5 Initiate Proceedings of the Campbell Lighting and Landscaping District, Fiscal Year 2026-27 (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution Initiating Proceedings, describing the improvements, and directing staff to prepare the Engineer’s Report for the Campbell Lighting and Landscaping Assessment District for Fiscal Year 2026-27.

Resolution 26-13378 Initiates Proceedings, describes the improvements, and directs staff to prepare the Engineer’s Report for the Campbell Lighting and Landscaping Assessment District for Fiscal Year 2026-27.

7.6 Approval of Tract Map No. 10690 including Acceptance of Public Service Easements Shown on Said Map – 300 Redding Road (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving the Tract Map for Tract No. 10690 and accept the public service easements offered for dedication as shown on the map for the property located at 300 Redding Road.

Resolution 26-13379 adopts a resolution approving the Tract Map for Tract No. 10690 and accepts the public service easements offered for dedication as shown on the map for the property located at 300 Redding Road.

8. PUBLIC HEARINGS AND INTRODUCTIONS OF ORDINANCES
There were no Public Hearings or Introductions of Ordinances.

9. NEW BUSINESS

9.1 Approving a Contract and Authorizing the City Manager to Execute Lease Purchase Agreement with Leasing 2, Inc., for the Procurement of a Item 7.2
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DTC Thermoplastic Melter Trailer TPM-1500 (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution approving a contract and authorizing the City Manager to execute a five-year lease purchase agreement with Leasing 2, Inc. for the procurement of a TPM-1500 Thermoplastic Melter Trailer in the total amount of $225,388.

Mayor Furtado stated that item 9.1 is to be continued to a date uncertain.

9.2 Campbell Multimodal Transportation Plan Project Update Recommended Action: That the City Council receive an update on the development of the Campbell Multimodal Transportation Plan (MMTP); provide feedback on the proposed Vision and Goals and overall Network Recommendations; and provide direction on the proposed Concept Design focus areas and implementation priorities.

Environmental Programs Specialist Hudson introduced Christopher Kidd from Alta Planning + Design.

Mr. Kidd presented an update to the Campbell Multimodal Transportation Plan Project.

Following Council questions, Mayor Furtado asked if there was anyone from the public who wanted to speak on this item.

Trudy LaFrance, Campbell resident, spoke on bike safety, concerns with speeding cars and inconsistent bike pathways and supports an over crossing at San Tomas Expressway.

David Sausjord, Campbell resident, spoke about pedestrian safety and the need for sidewalks on Curtner Ave.

Thomas Hibner, Campbell resident, sought clarification on what a pedestrian walkway consists of and whether it precludes parking and supports sidewalks on Camden Ave. to access the Los Gatos Creek Trail.

Seeing no other speakers, Mayor Furtado opened the discussion with council.

Councilmembers thanked staff for the presentation and gave feedback on the Campbell Multimodal Transportation Plan.

After discussion, Mayor Furtado thanked staff for the thorough presentation.

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10. UNFINISHED BUSINESS
There was no unfinished business.

11. COUNCIL COMMITTEE REPORTS

11.1 Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.

Vice Mayor Bybee attended Silicon Valley Animal Control Authority; Legislative subcommittee meeting; Education Subcommittee Meeting; and the Bunnies and Bonnets Parade.

Councilmember Hines attended the League of California Cities Peninsula Division Housing, Community & Economic Development Committee; DCBA meeting; Bunnies and Bonnets; Tribute for Rod Diridon.

Councilmember Lopez attended the Valley Transportation Agency Board of Directors meeting; spoke on the passing of Rod Diridon and suggested adjourning the meeting in his honor.

Mayor Furtado Spoke on the passing of longtime resident and member of the Santa Clara County Board of Supervisors, Rod Diridon.

12. ADJOURN
Mayor Furtado adjourned the meeting in remembrance of Rod Diridon Sr. at 8:59p.m.

APPROVED: Daniel E. Furtado, Mayor
ATTEST: Kristen Epolite, Deputy City Clerk
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City Council Report
DATE: April 21, 2026
TITLE: Approving the Bills and Claims
RECOMMENDED ACTION:

Approve the bills and claims in the amount of $3,218,731.12

DISCUSSION
The bills and claims that have been audited and approved by staff for payments made as noted below:

Type Check Date Amount
Bills & Claims March 09, 2026 $876,509.13
Payroll March 12, 2026 $33,813.37
Bills & Claims March 16, 2026 $2,308,408.62
Total $3,218,731.12

FISCAL IMPACT
Requested action does not require a budget adjustment. Adequate funding was available to cover all expenses as listed.

PREPARED BY: Celia Cruz Deniz, Accounting Clerk II
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Report Approval Details
Document Title: Approving Bills and Claims 04.21.26.docx Attachments: Bills & Claims 03.23.26.pdf
Payroll 03.26.26.pdf
Bills & Claims 03.30.26.pdf
Final Approval Date: April 15, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
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City Council Report
DATE: April 21, 2026
TITLE: Audit Services Contract Award (Resolution/Roll Call Vote) RECOMMENDED ACTION:

That the City Council adopt a resolution approving a contract and authorizing the City Manager to execute a three-year agreement with an option to extend for two additional years with LSL, LLP, Inc. for financial audit services in an aggregate amount not to exceed $398,000 for the five-year period.

BACKGROUND
City policy requires an annual financial audit by an independent auditing firm. With respect to procuring and maintaining the services of an independent auditor, Administrative Policies and Procedures Manual, Financial Policies, Section VIII (H) states that: “The City will solicit an RFP for audit services no less frequently than every five (5) years.

Additionally, an audit firm may be retained for a maximum of two (2) consecutive five-year terms. The Council Finance Committee, City Manager, and Finance Director will review the qualifications of prospective firms and make a recommendation to the City Council.” The City’s current audit firm, Eide Bailly, was awarded a five (5) year contract in 2020 after selection in a competitive RFP process to provide audit services for fiscal years FY 2019-20, FY 2020-21, FY 2021-22, FY 2022-23, and FY 2023-24. The Government Finance Officers Association (GFOA) recommends that governmental entities enter into multiyear agreements of at least five (5) years in duration when obtaining the services of independent auditors. Furthermore, the GFOA recommends that governmental entities should undertake a full-scale competitive process such as an RFP for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements. This is also consistent with the City’s Administrative Policies and Procedures Manual, Financial Policies, Section VIII (H) detailed above.

However, due to limited staff capacity and bandwidth last year to undertake a labor intensive RFP process at the end of Eide Bailly’s 5-year contract, as well as the high quality work that Eide Bailly had provided the City to date, a recommendation was made by staff and approved by Council on May 20, 2025 to extend Eide Bailly’s contract for one additional year and provide audit services for FY 2024-25. Nevertheless, in spite of this one-year extension, the Finance Department was also assigned a Work Plan item in FY 2025-26 to issue an RFP for financial audit services and did so on November 5, 2025 via Attachment 1.

DISCUSSION
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GFOA again recommends that governmental entities enter into multiyear agreements of at least five (5) years in duration when obtaining the services of independent auditors.

Such multiyear agreements can take a variety of different forms (e.g., a series of singleyear contracts), consistent with applicable legal requirements. Such agreements allow for greater continuity and help to minimize the potential disruption in connection with the independent audit. Multiyear agreements can also help to reduce audit costs by allowing auditors to recover certain “startup” costs over several years, rather than over a single year. During the first one to two years of a new audit engagement, significant time is spent by the audit firm learning about the City’s operations. Conversely, during this period, significant time is also spent by City staff adjusting to the new firm’s audit approach, staff, and requirements.

Furthermore, the GFOA again recommends that governmental entities should undertake a full-scale competitive process such as an RFP for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements. While there is some belief that auditor independence is enhanced by a policy requiring that the independent audit firm be replaced at the end of each multiyear agreement, unfortunately, the frequent lack of competition amount audit firms fully qualified to perform public-sector audits could make a policy of mandatory audit firm rotation counterproductive. In such cases, it is recommended that a governmental entity actively seek the participation of all qualified firms, including the current auditors, assuming that the past performance of the current auditors has proven satisfactory.

Where audit firm rotation does not result from this process, governments may consider requesting that senior engagement staff, such as engagement partners and senior managers, be rotated to provide a fresh perspective. In fact, lead auditor rotation every six (6) fiscal years is required by California Assembly Bill (AB) No. 1345, Section 12410.6(b). It should again be noted that the City’s current audit firm, Eide Bailly, has performed high quality work and has been a great resource to the City during the past six (6) years. Under the City’s current policy, the firm would be able to bid for another contract as long as the contract term was for no more than four (4) years and a new lead auditor was provided in adherence to all requirements of AB No. 1345. This would not automatically guarantee their renewal, as staff would consider the qualifications and pricing of all bidders.

In regard to pricing, the GFOA recommends that the audit procurement process should be structured so that the principal factor in the selection of an independent auditor is the auditor’s ability to perform a quality audit. Price should not be allowed to serve as the sole criterion for the selection of an independent auditor; rather an independent auditor should have a demonstrated commitment to the state and local government audit practice.

Audit Firm Proposal Process
So as to adhere to City policy and recommended best practice from GFOA, City staff issued an RFP for financial audit services on November 5, 2025 via Attachment 1.

Within the RFP, staff requested a technical and cost proposal for the following required and optional deliverables:

Required
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1. City Financial Audit and Related Reports

2. Single Audit and Related Reports

3. Gann Limit Review Report

4. Measure O Audit and Related Reports for Last Year of Bond Expenditures (FY 2025-26)

5. West Valley Solid Waste Management Authority (WVSWMA) Audit and Related Reports

6. Transportation Development Act (TDA) Article 3 Audit and Related Reports

7. Board of State and Community Corrections (BSCC) Organized Retail Theft (ORT) Grant Audit and Related Reports
Optional

1. Measure O Annual Reports in Future Years Past FY 2025-26 If Needed

2. State Controller’s Office (SCO) Annual Financial Transactions Report

3. SCO Annual Streets Report

4. Governmental Accounting Standards Board (GASB) 68 / 75 Assistance Proposals were solicited via a publicly posted RFP on the City’s website as well as directly solicited from twenty-two (22) local and regional firms across California, including the City’s current audit firm, Eide Bailly. A total of ten (10) proposals were received from the following firms:
 Badawi & Associates (B&A)
 Chavan & Associates
 Eide Bailly
 Forvis Mazars
 Harshwal & Company
 LSL
 Moss, Levy & Hartzheim
 The Pun Group
 Rogers, Anderson, Malody & Scott (RAMS)
 Vasquez & Company
The remaining twelve (12) firms directly solicited were non-responsive or declined due to various reasons.

The Finance Director, Assistant Finance Director, and two (2) Accountant reviewed the technical and cost proposals of each firm and determined Chavan & Associates, Eide Bailly, LSL, and RAMS as the top four (4) based on each firm’s experience with comparable government engagements, quality of work, stability, size, staff training offerings, proposed cost, firm depth of resources and ability to meet the City’s needs.

After formal interviews were conducted by the Finance Director, Assistant Finance Director, and Accountants, staff eliminated Chavan & Associates from further consideration due to less depth and staffing resources in comparison to Eide Bailly, LSL, and RAMS. Staff then performed reference checks on the LSL and RAMS, with staff’s own experience with Eide Bailly acting as the best referenced check for the City’s current audit firm.

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The remaining three (3) firms’ five-year cost proposals for base and optional services are as follows:
 Eide Bailly - $393,103
 LSL - $398,000
 RAMS - $453,361
In year one of the engagement, which will be charged against the City’s budget in FY 2026-27, costs of the remaining three (3) firms are as follows for base and optional services:
 Eide Bailly - $77,864
 LSL - $71,200
 RAMS – $81,295
For reference, the City’s budget for audit services in the current fiscal year (FY 2025-26) is $73,000; which is in line with the first year costing of the remaining three (3) finalists.

Please note though that each firm builds in an inflationary increase annually over the course of their five-year proposals that will need to be factored into subsequent operating budgets. Staff expects to use both base and optional services in year one, but may take on some or all optional services internally in the future as staffing knowledge, capabilities, and capacity are developed. Some optional services may also be contracted with other lower cost providers if such services are of high quality and meet the City’s needs.

Additionally, please note that the City acts as the fiscal agent for the WVSWMA and all associated audit costs ranging from $8,000 to $10,000 annually will be passed onto the WVSWMA. Such costs are included within each audit firm’s proposals, but are not entirely borne by the City either other than the City’s share of WVSWMA expenses.

Eide Bailly is again the City’s current auditor and is a top 20 CPA firm with offices in 15 states and over 3,500 audit professionals. Their local office is located in Menlo Park. The firm has over 300 full-time professionals in their government practice with more than 1,300 governmental clients nationwide. Some of the firm’s more recent Bay Area clients include City of Alameda, Brentwood, Campbell, Concord, Davis, Foster City, Los Altos, Monte Sereno, Napa, Pleasanton, Roseville, San Leandro, San Ramon, Santa Clara, Santa Cruz, Saratoga, and Walnut Creek. They have extensive experience in the industry and are involved in organizations associated with governmental entities such as the American Institute of CPAs (AICPA) and GFOA.

LSL employs approximately 180 people, with a specialized governmental team of 42 professionals serving over 100 governmental clients. Recognized as a 2026 Accounting Today Regional Leader and ranked #17 on the Orange County Business Journal’s CPA firm list, LSL is a prominent auditor in California's governmental sector. Their local office is located in Sacramento. Some of the firm’s more recent Bay Area clients include Citrus Heights, Lodi, Napa, Newark, Roseville, Vacaville, Vallejo, and West Sacramento. They have extensive experience in the industry and are involved in organizations associated with governmental entities such as AICPA and GFOA. And they are also frequent presenters at California Society of Municipal Finance Officers (CSMFO trainings, conferences, and events.

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RAMS employs approximately 60 people, with 80% serving over 100 governmental clients. Recognized as a key professional firm in California by CalCPA. The firm specializes in public sector audits, serving a substantial number of local government clients and municipal bodies while ensuring all staff meet stringent governmental accounting education requirements. They do not have a Northern California office and are headquartered in San Bernardino, CA, but they have performed many successful remote audits since the pandemic and are able to travel to Campbell as needed and requested (with City paying for travel expenses). Some of the firm’s more recent California clients include South Pasadena, Thousand Oaks, San Bernardino, West Covina, and Claremont. They have extensive experience in the industry and are involved in organizations associated with governmental entities such as CalCPA and GFOA. And they are also frequent presenters at CSMFO trainings, conferences, and events.

Recommendation for Audit Firm Selection
While all three (3) firms are well suited to service the City, staff recommends the selection of LSL as the City’s next audit firm due to its better overall fit for the City’s needs, depth of resources focused exclusively on governmental clients, quality of its technical proposal, stellar client references and professional reputation, very active participation in GFOA and other professional organizations such as CSMFO, physical presence in Northern California and the Bay Area, and cost proposal that is on the lower end of the finalists in total and very similar to the City’s current auditor, Eide Bailly. However, while staff has greatly enjoyed working with Eide Bailly and acknowledges that hiring a new audit firm will require extra work in year one, staff also feels that LSL will be able to provide more dedicated attention to Campbell, help the Finance team to learn and grow more, ensure that financial reporting and accounting remains high quality and that City staff doesn’t get complacent or too comfortable with any one audit firm, and be a valuable asset should the City seek to implement a new Enterprise Resource Planning (ERP) system in the future. LSL has a number of educational and consulting resources valuable to the City and these will be of great benefit to the City now and into the future. In staff’s estimation, the benefits that LSL is expected to bring the City over other finalists outweigh the extra time and effort needed to onboard LSL in year one.

Finance Sub-Committee Meeting
The progress of the auditing services RFP was presented by Norite Vong, Assistant Finance Director for the City of Campbell, and was discussed with the City’s Finance SubCommittee on April 14, 2026. The Sub-Committee reviewed the technical and cost proposals of Eide Bailly LLP, LSL LLP, and RAMS LLP. They asked various questions regarding scheduling and cadence of required annual audits for both the City and JPAs the City acts as fiscal agent, proposal costing and escalation over time, onsite and remote availability, firm location, client makeup, additional available services, and areas of focus for different audit firms.

The Sub-Committee was satisfied with the presentation and the answers provided by staff. They recommend the City Council approve and award the audit services contract to the firm of LSL LLP and authorize the City Manager to execute an agreement in an aggregate amount not to exceed $398,000 over a five-year period.

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FISCAL IMPACT
An agreement for professional audit services with LSL LLP could cost the City $71,200 in year one (FY 2026-27) if all required and optional services are used. All costs will be built into the Proposed FY 2026-27 Operating Budget to be considered by City Council in June 2026. Anticipated year one costs are similar to the City’s current FY 2025-26 budget for these services at $73,000. If the City exercises all options and keeps the contract in place for the full five-years, the City could incur up to $398,000 in total.

ALTERNATIVES

1. Award audit services contract to City’s current audit firm Eide Bailly LLP for up to four (4) years, which would reach the maximum allowable ten (10) consecutive years for any one audit firm; or

2. Award audit services contract to RAMS LLP for up to five (5) years; or

3. Provide other direction to staff.

PREPARED BY: Will Fuentes, Finance Director
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Report Approval Details
Document Title: Report - Audit Services Contract Award.docx Attachments: Resolution Authorizing Award of Financial Audit Services Contract (LSL).docx
Consulting Services Agreement - LSL LLP (DRAFT 04-13-
26).pdf
RFP Financial Auditing Services.pdf
Eide Bailly Technical Proposal 2026.pdf
Eide Bailly Cost Proposal 2026.pdf
LSL Technical Proposal Audit 2026.pdf
LSL Cost Proposal Audit 2026.pdf
RAMS Technical Proposal Audit 2026.pdf
RAMS Cost Proposal Audit 2026.pdf
Final Approval
Date:

April 15, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
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RESOLUTION NO. _________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING THE AWARD OF A CONTRACT FOR FINANCIAL AUDIT SERVICES WHEREAS, the City Council of the City of Campbell has reviewed proposals for Financial Audit Services for the fiscal years ending June, 30 2026 through June 30, 2030, and; WHEREAS, City staff has reviewed the qualifications and experience of the firms submitting proposals and has determined that the audit firm of LSL LLP best meets the requirements of the City’s RFP dated November 5, 2020, and; WHEREAS, LSL LLP submitted its last, best, and final offer in the following amounts: not to exceed $71,200 for FY 2025-26, $79,290 for FY 2026-27, $78,510 for FY 2027-28, $82,440 for FY 2028-29 and $86,560 for FY 2029-30, for a total five-year contract not to exceed $398,000.

NOW, THEREFORE BE IT RESOLVED that the contract award for financial audit services with LLP LLP be approved, and
BE IT FURTHER RESOLVED, that the City Manager is directed to negotiate and execute a three-year contract with said firm with an option to extend an additional two years for a total of five years.

PASSED AND ADOPTED, this 21st day of April, 2026, by the City Council of the City of Campbell, California, as follows:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
______________________________
Daniel E. Furtado, Mayor
ATTEST:
_________________________________
Andrea Sanders, City Clerk
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1 CITY OF CAMPBELL

CONSULTANT SERVICES AGREEMENT FOR

PROFESSIONAL AUDIT SERVICES
This Agreement is entered into at Campbell, California on the day of April 2026, by and between the CITY OF CAMPBELL (hereinafter referred to as "City") and LSL LLP (hereinafter referred to as "Consultant").

WHEREAS, City has reviewed proposals for Financial Audit Services for the fiscal years ending June 30, 2026 through June 30, 2030, and;
WHEREAS, City staff has reviewed the qualifications and experience of the firms submitting proposals and has determined that the audit firm of LSL LLP best meets the requirements of the City’s RFP dated November 5, 2025, and;
WHEREAS, LSL LLP submitted its last, best, and final offer in the following amounts for all required and optional services included in the RFP: not to exceed $71,200 for FY 2025-26, $79,290 for FY 2026-27, $78,510 for FY 2027-28, $82,440 for FY 2028-29 and $86,350 for FY 2029-30, for a total five-year contract not to exceed $398,000, and; WHEREAS, Consultant represents that it has the expertise, means, and ability to perform said financial audit services; and
WHEREAS, the Consultant’s Technical Proposal and Cost Proposal, shown as Exhibit B and Exhibit C respectively, are incorporated by reference into this Agreement.

NOW, THEREFORE, in consideration of each other's mutual promises, Consultant and City agree as follows:

1. DUTIES OF CONSULTANT

1.1 Consultant agrees to perform services as set forth in Exhibit A - Scope of Services, attached hereto and incorporated herein by reference, and which shall be interpreted together and in harmony with this Agreement. In the event of any conflict between Exhibit A and this Agreement, this Agreement shall govern, control, and take precedence.

1.2 Consultant’s project manager will meet with the City’s project coordinator prior to commencement of the project to establish a clear understanding of the working relationships, authorities, and management philosophy of City as it relates to this Agreement.

1.3 Consultant, working with the City, will gather available existing information Item 7.4
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2 concerning the project, and shall review documents as necessary for compliance with the project’s objectives.

1.4 In performance of this Agreement by Consultant, time will be of the essence.

1.5 Notwithstanding Section 1.4, Consultant shall not be responsible for delay caused by activities or factors beyond Consultant’s reasonable control, including delays or by reason of strikes, work slow-downs or stoppages, or acts of God.

1.6 Consultant agrees to perform this Agreement in accordance with the highest degree of skill and expertise exercised by members of Consultant’s profession working on similar projects under similar circumstances.

1.7 Consultant shall cooperate in good faith with City in all aspects of the performance of this Agreement.

1.8 In the course of the performance of this Agreement, Consultant shall act in the City’s best interest as it relates to the project.

1.9 The designated project manager for Consultant shall be James Butera, MBA, CPA, Director. The Consultant’s project manager shall have all the necessary authority to direct technical and professional work within the scope of the Agreement and shall serve as the principal point of contact with the City and the City’s project coordinator. The authorized principal of Consultant executing this Agreement for the Consultant shall have authority to make decisions regarding changes in services, termination and other matters related to the performance of this agreement on behalf of Consultant.

1.10 The Consultant (and its employees, agents, representatives, and subconsultants), in the performance of this Agreement, shall act in an independent capacity and not as officers or employees or agents of the City. The City shall not direct the work and means for accomplishment of the services and work to be performed hereunder. The City, however, retains the right to require that work performed by Consultant meet specific standards consistent with the requirements of this Agreement without regard to the manner and means of accomplishment thereof. Subcontractors shall assume all of the rights, obligations and liabilities, applicable to it as an independent contractor hereunder. Consultant represents and warrants that it (i) is fully experienced and properly qualified to perform the class of work and services provided for herein, (ii) has the financial capability and shall finance its own operations required for the performance of the work and services and (iii) is properly equipped and organized to perform the work and services in a competent, timely and proper manner in accordance with the requirements of this Agreement.

1.11 This Agreement contains provisions that permit mutually acceptable changes in the scope, character or complexity of the work if such changes become desirable or necessary as the work progresses. Adjustments to the basis of payment and to the time for performance of the work, if any, shall be established by a written contract amendment (approved and executed by the Item 7.4
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3 City) to accommodate the changes in work.

2. DUTIES OF CITY

2.1 City shall furnish to Consultant all available and pertinent data and information requested by Consultant to facilitate the preparation of the documents called for in this Agreement. Consultant shall be entitled to reasonably rely on all such information.

2.2 City shall provide contract administration services. City shall notify Consultant of required administrative procedures and shall name representatives, if any, authorized to act in its behalf.

2.3 City shall review documents submitted by Consultant and shall render decisions pertaining thereto as promptly as reasonably possible.

3. COMPENSATION

3.1 For the full performance of the services described herein by Consultant, City agrees to compensate Consultant for all services (required and optional) and direct costs associated with the performance of the project in an amount not to exceed $398,000, as follows:
a. Once each month, Consultant shall submit for payment by City, an itemized invoice for services performed. The invoice shall describe the services rendered and the title of the item of work, and shall list labor hours by personnel classification. Said invoice shall be based on all labor and direct expense charges made for work performed on the project. Labor charges shall be in accordance with the fee schedule found in Exhibit A of this Agreement. City shall pay Consultant for services rendered and approved by the City within 30 days from the date the itemized invoice is received by the City, subject to the maximum not to exceed amount specified above and the City’s right to object.
b. Direct costs are those outside costs incurred on or directly for the project, and substantiated with invoices for the charges. Direct expenses include printing, reproduction, and delivery charges.

3.2 If Consultant incurs other costs which are not specifically covered by the terms of this Agreement, but which are necessary for performance of Consultant’s duties, City may approve payment for said costs if authorized in writing by the City in advance.

3.3 City may order changes in the scope or character of services in writing, including decreasing the amount of Consultant’s services. In the event that the work is decreased, Consultant is entitled to full compensation for all services performed and expenses incurred prior to receipt of notice of change. Under no conditions shall Consultant make any changes to the work, either as additions or deductions, without the prior written order of the City. In the event, that the City determinesthat a change to the work or servicesfrom thatspecified in this Agreement is required, the contract time and/or actual costs reimbursable by the City for the project may be adjusted by contract amendment or change order to accommodate the changed work. The Item 7.4
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4 maximum not to exceed total amount specified in this Article 3 (Compensation) shall not be exceeded, unless authorized by written contract amendment or change order, approved and executed by the City. Consultant shall obtain prior written approval for a revised fee schedule from the City before exceeding such fee schedule.

3.4 In no event, will the Consultant be reimbursed for any costs or expenses at any rates that exceed the rates for set forth in the fee schedule found in Exhibit A.

4. SUBCONSULTANTS

4.1 Consultant may not subcontract any services required under this Agreement without the prior written consent of the City.

4.2 Consultant shall be responsible to City for the performance of any and all subconsultants who perform work under this contract, and any acts of negligence or misconduct on their part. Consultant is solely responsible for all payments due to subconsultants.

5. OWNERSHIP OF DOCUMENTS AND MATERIALS
All original documents, papers, data, materials, and other work products prepared by the Consultant and/or its subconsultants in the performance of the services encompassed in this Agreement (whether in printed or electronic format) shall be the property of the City and may be used on this project without the consent of the Consultant or its subcontractors. City acknowledges that such documents and other items are instruments of professional services intended for use only on the subject project. Consultant agrees that all copyrights which arise from creation of the Project-related documents and materials pursuant to this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. Upon the completion or termination of this Agreement for any reason, the City shall be entitled to receive, and Consultant shall promptly provide to the City upon request, all finished and unfinished project-related documents and materials, produced or gathered by or on behalf of Consultant that are in Consultant’s possession, custody or control. Consultant may retain copies of said documents and materials for its files. In the event of termination, any dispute regarding compensation or damages shall not hinder, prevent, or otherwise impact the City’s right to promptly receive and use such documents and materials which are the sole and exclusive property of the City.

6. TERMINATION
Notwithstanding any other provision of this Agreement, City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Consultant of such termination. In the event of such termination, Consultant shall have the right and obligation to immediately assemble the work then in progress for the purpose of completing the work and turning over all materials and documents to City. In the event of such termination, Consultant shall be compensated for all work and services performed to the point of termination in accordance with the payment provisions set forth in Section 3.1, unless the termination is for Item 7.4
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5 cause, in which event Consultant need be compensated only to the extent required by law.

7. AUDIT AND INSPECTION
Consultant shall maintain such financial records and other records as may be prescribed by the City or by applicable federal and state laws, rules, and regulations. The selected Consultant shall retain these records for a period of seven (7) years after final payment, or until they are audited by the City, whichever event occurs first. These records shall be made available during the term of the contract or service agreement and the subsequent seven-year period for examination, transcription, and audit by the City or its designees.

8. EQUAL EMPLOYMENT OPPORTUNITY
Consultant agrees to refrain from discriminatory employment practices on the basis of race, religious creed, color, sex, national origin, handicap, sexual orientation, or ancestry of any employee of, or applicant for employment with, such Consultant or subcontractor.

9. INSURANCE AND INDEMNIFICATION

9.1 With respect to any design professional services provided by Consultant, the Consultant agrees to indemnify, and hold harmless the CITY, its officers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, damages, liabilities and losses, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, except for any claims, actions, causes of action, losses, damages or liabilities proximately caused by the sole negligence or willful misconduct of CITY. CITY shall not be liable for acts of Consultant in performing services described herein. Notwithstanding anything in this paragraph to the contrary, any defense costs charged to the design professional under this paragraph shall not exceed the design professional’s proportionate percentage of fault, except that in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the design professional shall meet and confer with the other parties regarding unpaid defense costs in good faith effort to agree on the allocation of those costs amongst the parties.

With respect to all matters other than those covered by the foregoing paragraph, Consultant agrees to indemnify, defend (with counsel reasonably satisfactory to the CITY) and hold harmless the CITY, its officers, officials, directors, agents representatives, volunteers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Consultant’s performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by the sole negligence or willful misconduct of CITY. CITY shall not be liable for acts of Consultant in performing services described herein.

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6 In no event shall this section be construed to require indemnification by the Consultant to a greater extent than permitted under the public policy of the State of California; and in the event that this contract is subject to California Civil Code section 2782(b), the foregoing indemnity provisions shall not apply to any liability for the active negligence of the City.

The defense and indemnity provisions obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations contained in this Agreement.

The foregoing indemnity provisions are intended to fully allocate the parties’ risk of liability to third-parties; and there shall be no rights to indemnity or contribution, in law or equity or otherwise between the parties that are not set forth in this section. Consultant waives all rights to subrogation for any matters covered by the provisions of this section. Consultant’s responsibility for such defense and indemnity obligations as set forth in this section shall survive the termination or completion of this Agreement for the full period of time allowed by law.

9.2 Consultant shall maintain insurance conforming to the following specifications to the fullest amount allowed by law for a minimum of two years following the termination or completion of this Agreement:

A. Types of Coverage
The policies shall afford the following types of coverage:

1. Commercial General Liability;

2. Automotive;

3. Workers’ Compensation and Employer Liability; and

4. Professional Liability and/or Errors and Omissions
B. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. For Commercial General Liability: Insurance Services Office (ISO) CGL Form 00 01 11 85; and

2. For Automotive Liability: ISO CA 00 01 06 92 including symbol 1(any auto); and

3. For Workers’ Compensation: insurance as required by the Labor Code of the State of California and Employer's Liability insurance; and

4. For Professional Liability and/or Errors and Omissions: insurance covering negligence committed by or on behalf of Consultant in rendering services Item 7.4
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7 to City.

C. Minimum Limits of Insurance
Consultant shall maintain limits no less than:

1. General Liability: $1,000,000 combined single limit per occurrence for bodily, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage.

3. Workers’ Compensation and Employer's Liability: Workers’ Compensation limits as required by the Labor Code of the State of California and Employer's Liability limits of $1,000,000 per accident.

4. Professional Liability and/or Errors and Omissions: $1,000,000 per claim and $2,000,000 in the annual aggregate.

The limits of insurance required in this Agreement 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 (as agreed to in this Agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

D. Deductible and Self-Insured Retention
Any deductibles or self-insured retention must be declared to and approved by the City, and shall not reduce the limits of liability. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its agents, officers, attorneys, employees, officials and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses related to investigations, claim administration, and defense expenses. Policies containing any self-insured retention provision shall provide or be endorsed to provide that the self-insured retention may be satisfied by either the named insured or the City.

E. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability Coverage:
a. The City, its agents, officers, attorneys, employees, officials and Item 7.4
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8 volunteers are to be covered as additional insureds as respects: liability arising out of this Agreement performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, leased, hired or borrowed by the Consultant. It is a requirement of this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits set forth in this Agreement shall be available to the City as an additional insured.

Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is affords greater coverage.
b. The Consultant's insurance coverage shall be primary insurance as respects the City, its agents, officers, attorneys, employees, officials and volunteers. Any insurance or self-insurance maintained by the City, its agents, officers, attorneys, employees, officials and volunteers shall be excess of the Consultant's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its agents, officers, attorneys, employees, officials, and volunteers.
d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability.

2. Workers’ Compensation and Employer’s Liability Coverage: The insurer shall agree to waive all rights of subrogation against the City, its agents, officers, attorneys, employees, officials, and volunteers for losses arising from work performed by the Consultant for the City.

3. All Coverages: Any unintentional failure to comply with reporting provisions of the policies shall not affect coverage provided to the City; and unless otherwise approved by the City, each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by regular mail has been given to the City, or ten (10) days for cancellation for non- payment of premium.

F. Suspension or Cancellation
If any of the coverages required by this Agreement should be suspended, voided, cancelled or reduced in coverage during the term of this Agreement, Consultant shall immediately notify City and replace such coverage with another policy meeting the requirements of this Agreement.

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9 G. Subcontractors
Consultant agrees that any and all contracts with subcontractors for performance of any matter under this Agreement shall require the subcontractors to comply with the same indemnity and insurance requirements set forth in this Agreement to the extent that they apply to the scope of the subcontractors’ work. Subcontractors are to be bound to contractor and to City in the same manner and to the same extent as the Consultant is bound to City under this Agreement. Subcontractors shall further agree to include these same provisions with any sub-subcontractor. A copy of this Agreement will be furnished to the subcontractor on request. The Consultant shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencing any work, and will provide proof of compliance to the City.

H. Acceptability of Insurers
Without limiting Consultant's indemnification provided hereunder, the policies of insurance listed in Article 9.2 of this Agreement are to be issued by an issuer with a current A.M. Best Rating of A:V and who is authorized to transact business in the State of California, unless otherwise approved by the City.

I. Verification of Coverage
Consultant shall furnish the City with endorsements and certificates of insurance evidencing coverage required by this clause. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms acceptable to the City. Where required by statue, forms approved by the Insurance Commissioner are to be submitted. All certificates are to be received and approved by the City before work commences.

10. MISCELLANEOUS

10.1 This Agreement shall be binding on the heirs, executors, assigns and successors of Consultant.

10.2 Neither party may assign this Agreement, or any portion hereof, without the prior written consent of the other.

10.3 This Agreement shall not be construed to alter, affect, or waive any lien or stop notice rights, which Consultant may have for the performance of services pursuant to this Agreement.

10.4 Neither party’s waiver of any term, condition or covenant, or breach of any term, condition or covenant shall be construed as the waiver of any other term, condition or covenant Item 7.4
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10 or waiver of the breach of any other term, condition or covenant.

10.5 This Agreement contains the entire Agreement between City and Consultant relating to the project and the provision of services to the project. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. Subsequent modifications to this Agreement shall be in writing and signed by both City and Consultant.

10.6 If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding on City and Consultant.

10.7 This Agreement shall be governed and construed in accordance with the laws of the State of California.

10.8 This Agreement may be executed in counterparts and will be binding as executed.

10.9 All changes or amendments to this Agreement must be in writing and approved by all parties.

10.10 The term of this Agreement shall commence upon execution of the Agreement and terminate following the completion of the audit period for fiscal year ending June 30, 2030. Unless either party gives written notice to the other party prior to March 1, 2029, the term of the Agreement shall be automatically extended for an additional two years to include the audits of fiscal year ending June 30, 2029 and 2030 at the not to exceed amounts specified in section 3 of this agreement. Either party may elect earlier termination by giving written notice at least one hundred eighty (180) days prior to the end of any fiscal year (on or before January 1st annually). If either party does not exercise such right to early termination, then this Agreement shall automatically continue pursuant to the stated term and the other provisions contained herein.

10.11 Consultant owes the City a duty of undivided loyalty in performing the work and services under this Agreement, including, but not limited to, the obligation to refrain from having economic interests and/or participating in activities that conflict with the City’s interests in respect to the work and/or services and project. The Consultant shall list current clients who may have a financial interest in the outcome of this Agreement. The Consultant hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of services under this agreement. Consultant shall not make or participate in making or in any way attempt to use Consultant’s position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a direct or indirect financial interest other than the compensation promised by this Agreement. Consultant will immediately advise the City if Consultant learns of a financial interest of Consultant's during the term of this Agreement.

10.12 This Agreement is entered into, and to be performed in Santa Clara County, California, and any action arising out of or related to this Agreement shall be maintained in a Item 7.4
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11 court of appropriate jurisdiction in Santa Clara County, California.

11. NOTICES
Notices required under this Agreement may be delivered by first class mail addressed to the appropriate party at one of the following addresses:

CITY: Will Fuentes
Finance Director
City of Campbell
70 North First Street
Campbell, CA 95008
CONSULTANT: Brandon Young, CPA
Partner/COO

LSL LLP
500 Capital Mall., Suite 2350
Sacramento, CA 95814
Having read and understood the foregoing Agreement, the undersigned parties agree to be bound hereby:

CONSULTANT
By
Title

CITY OF CAMPBELL
By
Title
Exhibit A – Scope of Services and Fees
Exhibit B – Consultant Technical Proposal
Exhibit C – Consultant Cost Proposal
Item 7.4
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12 EXHIBIT A

SCOPE OF SERVICES AND FEES
The City of Campbell desires an Annual Comprehensive Financial Report (ACFR) to be prepared by the Consultant and be fully compliant with Generally Accepted Accounting Principles for the fiscal year ended June 30, 2026 and each of the subsequent years of the Consultant's contract with the City. The City plans to submit the ACFR to the Government Finance Officers Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting program. The Consultant will perform the following tasks.

1. The Consultant will perform an audit of all funds of the City of Campbell. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States. The City's Annual Comprehensive Financial Report (ACFR) will be prepared and word processed by the Consultant and assembled digitally in Adobe Acrobat format (PDF). The ACFR will comply with the latest required GASB Statements applicable for the year under audit. The Consultant will render their auditors' report on the basic financial statements which will include both GovernmentWide Financial Statements and Fund Financial Statements. The Consultant will also apply limited audit procedures to Management's Discussion and Analysis (MD&A) and required supplementary information pertaining to the General Fund and each major fund of the City.

2. The Consultant may perform a single audit on the expenditures of federal grants in accordance with Uniform Guidance as well as any other applicable federal, state, local or programmatic audit requirements and render the appropriate audit reports on Internal Control over Financial Reporting based upon the audit of the City's financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with Uniform Guidance as well as any other applicable federal, state, local or programmatic audit requirements. The single audit report will include the appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings where required. If the City does not meet the minimum requirements to necessitate a single audit, the fees shall be adjusted accordingly.

3. The Consultant shall perform agreed-upon auditing procedures pertaining to the City's Gann Limit (Appropriations Limit) and render a letter annually to the City regarding compliance.

Item 7.4
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13 4. The Consultant shall issue letters required by the Statement on Auditing Standards 114 and 115 and any future required standards that includes identification of the most sensitive disclosures affecting the financial statements and recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be nonreportable conditions. Management letters shall be addressed to the City Council.

5. The Consultant will issue an examination report on management’s assertion regarding compliance with Measure O each fiscal year that bond proceeds are spent until they are exhausted in full. The Consultant will be provided with a “Schedule of Measure O Revenues and Expenditures for the Fiscal Year” (“Schedule”). The Consultant shall: 1) obtain supporting documentation for all amounts listed on the Schedule; 2) verify that the amounts and descriptions agree to the underlying accounting records and supporting documentation; 3) provide a written report on or before December 5th; and 4) provide an oral report to the Measure O Advisory Oversight Committee in January.

6. The Consultant shall perform an audit of and prepare basic financial statements and a management letter for the West Valley Solid Waste Management Authority (WVSWMA), a California Joint Powers Authority (JPA). The Authority includes the Cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos. The City maintains the financial records and provides accounting services for the Authority. The Authority's financial activities are reported in a single enterprise fund.

7. Periodically, the City receives Transportation Development Act (TDA) funds (Article 3 Bikeway Program) from the Metropolitan Transportation Commission for bicycle and pedestrian improvements. Whenever such funds are received (or expended by the City) an audit is required.

However, if funding is received during the contract period, an audit of the TDA activity will be required including an opinion of fair presentation in conformity with GAAP and compliance with applicable program guidelines.

8. Periodically, the City receives Organized Retail Theft (ORT) Grant funds from the Board of State and Community Corrections (BSCC) for associated grant activities. Per grant requirements near the end of the grant term, the City is required to perform an audit of grant activities. The financial audit report is due no later than June 1, 2027. The consultant shall perform this audit for the City.

9. The Consultant shall provide, compile, and file the Annual Financial Transactions Report (FTR) to the State Controller of California, from data provided by City staff. At any time, based on capacity, City staff may wish to perform this function internally and will remove this function from the engagement at that time upon sufficient notice to the Consultant.

10. The Consultant shall provide, compile, and file the Annual Street Report to the State Controller of California, from data provided by City staff. At any time, based on capacity, City staff Item 7.4
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14 may wish to perform this function internally and will remove this function from the engagement at that time upon sufficient notice to the Consultant.

11. Assistance with GASB 68 and 75 accounting entries as needed to record the City’s net pension liability and related deferred inflows and outflows. At any time, based on capacity, City staff may wish to perform this function entirely and internally and will remove this function from the engagement at that time upon sufficient notice to the Consultant.

Fees to the Consultant for fiscal years ending June 30, 2026 through June 30, 2030 for the required services shall not exceed $398,000. Fees for services performed shall be paid as follows:

Fees to the Consultant for any additional work agreed to by mutual consent between the Consultant the City shall be billed at following hourly rates for FY 2025-26 through FY 2029-30:

Positions FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Partner $295 $310 $326 $343 $361
Manager 175 184 194 204 215
Senior Auditor 125 132 139 146 154
Staff Auditor 95 100 105 111 117
Clerical 55 58 61 65 69
Service FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 TOTAL #1 City Audit and #4 Related Reports $ 51,620 $ 54,200 $ 56,910 $ 59,760 $ 62,750 $ 285,240 #2 Single Audit and Related Reports $ 4,300 $ 4,520 $ 4,750 $ 4,990 $ 5,240 $ 23,800 #3 Gann Limit Review Report $ 240 $ 250 $ 260 $ 270 $ 280 $ 1,300 #5 Measure O Audit Report $ - $ N/A $ N/A $ N/A $ N/A $ - #6 West Valley Solid Waste Management
Authority (JPA) $ 7,500 $ 7,880 $ 8,270 $ 8,680 $ 9,110 $ 41,440 #7 TDA Article 3 Audit $ 1,440 $ 1,510 $ 1,590 $ 1,670 $ 1,750 $ 7,960 #8 BSCC ORT Grant $ N/A $ 4,520 $ N/A $ N/A $ N/A $ 4,520 Out of Pocket Expenses $ -
-Meals and Lodging $ -
-Transportation $ -
-Other $ $ $ $ $ -
Total for Fiscal Year (not-to-exceed)
Without Optional Items $ 65,100 $ 72,880 $ 71,780 $ 75,370 $ 79,130 $ 364,260 Optional Items
#5 Measure O Annual Report (future years) $ N/A $ - $ - $ - $ - $ - #9 FTR $ 3,600 $ 3,780 $ 3,970 $ 4,170 $ 4,380 $ 19,900 #10 Street Report $ 2,500 $ 2,630 $ 2,760 $ 2,900 $ 3,050 $ 13,840 #11 GASB 68/75 $ - $ - $ - $ - $ - $ -
Total for Fiscal Year (not-to-exceed) With
Optional Items $ 71,200 $ 79,290 $ 78,510 $ 82,440 $ 86,560 $ 398,000 Item 7.4
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15 Positions FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Other
Director $233 $245 $258 $271 $285
Senior Manager 205 216 227 239 251
Supervisor 158 166 175 184 194
Experienced
Staff
105 111 117 123 130
Item 7.4
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REQUEST FOR PROPOSALS
(RFP)
Financial Auditing Services
RFP Release Date
November 5, 2025
Proposal Submittal Deadline
January 9, 2026 - 4:00 p.m.
(Pacific Time)
Contact Person: Norite Vong
Assistant Finance Director
City of Campbell
70 N. First Street
Campbell, CA 95008
(408) 866-2112
[email protected]
70 N. First Street • Campbell, CA 95008 • (408)-866-2100 • www.campbellca.gov Item 7.4
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1 Table of Contents
I. Proposal and Project Schedule......................................................................................................... 4 II. Background ..................................................................................................................................... 4 A. Government Information ............................................................................................................. 4 B. Fund Structure.............................................................................................................................. 5 C. Component Units......................................................................................................................... 5 D. Magnitude of Finance Operations................................................................................................ 5 E. Computer Systems....................................................................................................................... 5 F. Availability of Prior Reports and Work Papers ........................................................................... 6 III. Objective.......................................................................................................................................... 6 IV. Scope of Services............................................................................................................................. 6 V. Auditing Standards to Be Followed ................................................................................................. 8 VI. Time Requirements.......................................................................................................................... 8 A. Date Audit May Commence ........................................................................................................ 8 B. Date Reports are Due................................................................................................................... 9 VII. Assistance to Be Provided to the Auditor and Report Preparation ................................................... 9 A. Finance Department and Clerical Assistance............................................................................... 9 B. Work Area, Telephone, and Office Equipment............................................................................ 9 C. Report Preparation ....................................................................................................................... 9 VIII. General ............................................................................................................................................ 9 A. Working Paper Retention and Access to Working Papers........................................................... 9 B. State and National Developments................................................................................................ 9 IX. Irregularities and Illegal Acts......................................................................................................... 10 X. Proposal Submission Requirements............................................................................................... 10 A. General Requirements................................................................................................................ 10 B. Submission of Proposal.............................................................................................................. 10

1. Format for Technical Proposal .................................................................................................. 10

2. Contents of Technical Proposal................................................................................................. 11

3. Contents of Cost Proposal ......................................................................................................... 14 XI. Evaluation of Proposals and Selection Process.............................................................................. 15 A. Review of Proposals .................................................................................................................. 15 B. Evaluation Criteria..................................................................................................................... 15 XII. Miscellaneous................................................................................................................................ 15 A. Public Records........................................................................................................................... 15 B. Right to Cancel and Amend ....................................................................................................... 16 C. Additional Information .............................................................................................................. 16 D. Conflict of Interest..................................................................................................................... 16 E. Release of Public Information.................................................................................................... 16 Item 7.4
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2 F. Non-Assignment........................................................................................................................ 16 G. Collusion.................................................................................................................................... 16 H. Debarment.................................................................................................................................. 16 I. Equal Employment Opportunity Compliance............................................................................ 17 J. Right to Audit ............................................................................................................................ 17 XIII. ATTACHMENT A - Audit Cost Proposal Form........................................................................... 18 XIV.ATTACHMENT B - Estimate of Cost .......................................................................................... 19 XV. ATTACHMENT C - Sample Consultant Services Agreement ..................................................... 20 Item 7.4
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3 REQUEST FOR PROPOSALS
Financial Auditing Services
The City is issuing this Request for Proposals (“RFP”) for preparation of Financial Audit Services.

Consultants are solely responsible for ensuring proposals are received by the City on or before the submittal deadline. Proposals must be received (physically or by e-mail) no later than 4:00 p.m. Pacific Time, on Monday, January 9, 2026, at the following address:

Physically
City of Campbell
Office of the City
Clerk 70 N. First Street
Campbell, CA 95008
Or
By E-mail
[email protected]
If submitting a physical version by mail, please submit five (5) copies in a sealed package with the name of the Consultant and RFP title clearly marked on the outside of the package. If submitting by e-mail, please clearly identify the Consultant and RFP title in the subject line.

Failure to comply with the requirements set forth in this RFP may result in disqualification. Proposals and/or modifications received subsequent to the hour and date specified above will not be accepted.

Submitted proposals may be withdrawn at any time prior to the submission time specified in this RFP, provided notification is received in writing before the submittal deadline. No handwritten notations or corrections will be allowed. The responding Consultant is solely responsible for all costs related to the preparation of the proposal.

The City reserves the right to reject all proposals and to waive any minor informalities or irregularities contained in any proposal. Acceptance of any proposal submitted pursuant to this RFP shall not constitute any implied intent to enter into a contract.

During the evaluation process, the City of Campbell reserves the right, where it may serve the City’s best interest, to request additional information or clarification from proposers, or to allow corrections of errors or omissions. At the discretion of the City of Campbell, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.

The City reserves the right to retain all proposals submitted and to use any idea(s) in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the firm of the conditions contained in the request for proposals, unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Campbell and the firm selected.

The contract award, if any, will be made to the Consultant who, in the City’s sole discretion, is best able to perform the required services in a manner most beneficial to the City. Please submit all inquiries to [email protected] or via phone to Norite Vong at (408) 866-2112.

Item 7.4
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4 I. Proposal and Project Schedule
Below is a desired schedule for initiation of this project; however, dates may be subject to change and adjusted as necessary.

RFP Issued November 5, 2025
Request for Clarifications Due November 19, 2025
Clarification Responses Provided December 5, 2025
Proposal Submittal Deadline January 9, 2026 (by 4pm)
Interviews with City Staff TBD – Feb/Mar 2026
Finance Sub-Committee Review TBD - March 2026
Contract awarded by City Council April 7, 2026
Interim Audit TBD - June/July 2026
Final Audit TBD – Oct/Nov 2026
ACFR, Single Audit Report, and Other Reports December 4, 2026 II. Background
A. Government Information
The City of Campbell is located in the West Valley area of Santa Clara County and encompasses 6.35 square miles. The City was founded in 1887, and incorporated in 1952 as a general law city. As of January 1, 2025, the City’s population was 43,281. Campbell operates under a Council/Manager form of government and is organized into six departments - City Administration, Recreation and Community Services, Finance, Community Development, Police, and Public Works. Fire services are provided by contract with the Santa Clara County Fire Department. The City provides library, animal control, solid waste collection and recycling, and storm water management via Joint Powers Agreements (JPA’s).

On November 6, 2018, City of Campbell voters approved Measure O with a ‘Yes’ vote of 69.5% by the citizens that voted in the General Election. Bonds issued pursuant to Measure O will generate approximately $50 million to construct and/or renovate City facilities to house Police and Library services. The project has since been named the Civic Center Improvement Project. The Measure O Oversight Committee is responsible for reviewing and reporting on the expenditure of the proceeds of the Bonds. A separate capital project and debt service account has been created and held by the City, into which the proceeds of the Bonds are deposited and applied solely for the purpose of financing Improvements. The Finance Director of the City files a report with the City Council at least annually showing the amount of Bond proceeds collected and expended, and the status of improvements. The Civic Center Improvement Project is near the end of construction, with an estimated construction completion date in Spring 2026.

The City’s fiscal year begins on July 1 and ends on June 30. The City’s 2025-26 adopted General Fund budget is $69.0 million, and the total City budget is $106.7 million. The City’s primary sources of revenue for the General Fund are from property tax, sales tax, and other taxes such as franchise, transient occupancy and business license fees. To view the City’s current fiscal year budget, visit the following web address:
https://www.campbellca.gov/151/Budget
The City last completed a financial audit for the Fiscal Year Ending June 30, 2024 and is currently in the process of completing a financial audit for the Fiscal Year Ending June 30, 2025. To view the City’s current Annual Comprehensive Financial Report (ACFR), Item 7.4
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5 visit the following web address: https://www.campbellca.gov/153/Financial-Reports B. Fund Structure
The City of Campbell uses the following fund types and account groups in its financial statements:

Fund Type/Account Group # of Funds
General 1
Special Revenue Funds 15
Debt Service Funds 2
Capital Projects Funds 2
Internal Service Funds 3
Fiduciary Funds 4
TOTAL FUNDS 27
C. Component Units
The City is defined, for financial reporting purposes, in conformity with the Governmental Accepting Standards Board's Codification Governmental Accounting and Financial Reporting Standards, Section 2100. Using these criteria, component units are included in the City's financial statements.

The management of the City identified the following component unit (with fiscal year ending June 30) for inclusion in the City's financial statements:

City of Campbell Lighting and Landscape District
This component unit is to be audited as a special revenue fund of the City's financial statements. No separate financial statements are required.

The City became the Successor Agency to the former Community Redevelopment Agency. The Successor Agency is defined as a private-purpose trust fund and shall be part of the audit of the City’s financial statements
D. Magnitude of Finance Operations
The Finance Department is headed by Will Fuentes, Director of Finance and consists of

10.0 full-time equivalent (FTE) positions. The principal functions performed and the number of employees assigned to each are as follows:

Function # of FTEs
Accounting/Finance 3.0
Accounts Payable 1.0
Accounts Receivable 1.0
Payroll 1.0
Administrative/Risk Management 3.0
Cashiering 1.0
TOTAL FTEs 10.00
E. Computer Systems
The City's computerized systems are run on a Local Area Network (LAN). The accounting functions are computerized using CentralSquare eFinance/eCommunity Plus software on a cloud-based platform. The applications operating on this system are general ledger, accounts payable, purchasing, payroll, human resources, fixed assets, cash receipts, business licensing and miscellaneous billing.

Item 7.4
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6 F. Availability of Prior Reports and Work Papers
Eide Bailly LLP of Menlo Park, CA conducted the City's most recent audit as well as all audits from the fiscal year ended June 30, 2020. The work papers of the previous audits are the property of the previous auditor and can be reviewed by the successful Proposer.

The following financial statements or reports were prepared by and/or audited by Eide Bailly for the fiscal year ended June 30, 2024:

1. City of Campbell Annual Comprehensive Financial Report

2. West Valley Solid Waste Management Authority Basic Financial Statements

3. Proposition 4 / Gann Spending Limit

4. Single Audit Report on Federal Awards

5. Transportation Development Act (TDA) Article 3 Grant As a note, the City’s annual Streets Report is currently prepared by the California State Controller’s Office.

To view the City’s current Annual Comprehensive Financial Report (ACFR), visit the following web address: https://www.campbellca.gov/153/Financial-Reports III. Objective
The City of Campbell is requesting proposals from qualified certified public accountant firms to audit its financial statements for the three (3) fiscal years beginning with the fiscal year ending June 30, 2026, with the option of auditing its financial statements for each of the two (2) subsequent fiscal years, in addition to performing other financial audits and reviews as specified below. These audits are to be performed in accordance with auditing standards generally accepted in the United States of America, the standards set forth for financial audits contained in U. S. General Accounting Office's Government Auditing Standards (2024), the provisions of the Single Audit Act of 1984, as Amended in 1996, and Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) as well as any other applicable federal, state, local or programmatic audit requirements.

IV. Scope of Services
The City of Campbell desires an Annual Comprehensive Financial Report (ACFR) to be prepared by the independent auditor and be fully compliant with Generally Accepted Accounting Principles for the fiscal year ended June 30, 2026 and each of the subsequent years, June 30, 2027 and 2028 of the audit firm's contract with the City. The City plans to submit the ACFR to the Government Finance Officers Association (GFOA) for review in their Certificate of Achievement for Excellence in Financial Reporting program.

The selected independent auditor will be required to perform the following tasks. Please note that items at the end of this section are optional items which should be presented as separate line items in submitted Cost Proposal:

1. The audit firm will perform an audit of all funds of the City of Campbell. The audit will be conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States. The City's Annual Comprehensive Financial Report (ACFR) will be prepared and word processed by the audit firm and assembled digitally in Adobe Acrobat format (PDF). The ACFR will comply with the latest required GASB Statements applicable for the Item 7.4
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7 year under audit. The audit firm will render their auditors' report on the basic financial statements which will include both Government-Wide Financial Statements and Fund Financial Statements. The audit firm will also apply limited audit procedures to Management's Discussion and Analysis (MD&A) and required supplementary information pertaining to the General Fund and each major fund of the City.

2. The audit firm may perform a single audit on the expenditures of federal grants in accordance with Uniform Guidance as well as any other applicable federal, state, local or programmatic audit requirements and render the appropriate audit reports on Internal Control over Financial Reporting based upon the audit of the City's financial statements in accordance with Government Auditing Standards and the appropriate reports on compliance with Requirements Applicable to each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with Uniform Guidance as well as any other applicable federal, state, local or programmatic audit requirements. The single audit report will include the appropriate schedule of expenditures of federal awards, footnotes, findings and questioned costs, including reportable conditions and material weaknesses, and follow up on prior audit findings where required. If the City does not meet the minimum requirements to necessitate a single audit, the fees shall be adjusted accordingly. The City did exceed the $1.0 million expenditure threshold in fiscal year 2023-

24. 3. The audit firm shall perform agreed-upon auditing procedures pertaining to the City's Gann Limit (Appropriations Limit) and render a letter annually to the City regarding compliance.

4. The audit firm shall issue letters required by the Statement on Auditing Standards 114 and 115 and any future required standards that includes identification of the most sensitive disclosures affecting the financial statements and recommendations for improvements in internal control, accounting procedures and other significant observations that are considered to be non-reportable conditions. Management letters shall be addressed to the City Council.

5. The audit firm will issue an examination report on management’s assertion regarding compliance with Measure O each fiscal year. The audit firm will be provided with a “Schedule of Measure O Revenues and Expenditures for the Fiscal Year” (“Schedule”). The audit firm shall: 1) obtain supporting documentation for all amounts listed on the Schedule; 2) verify that the amounts and descriptions agree to the underlying accounting records and supporting documentation; 3) provide a written report on or before December 5th; and 4) provide an oral report to the Measure O Advisory Oversight Committee in January. Given the anticipated completion of Measure O bond funded capital projects in Spring 2026, associated Measure O activities and reports provided by the chosen audit firm will likely only be needed through the fiscal year ending June 30, 2026. Nevertheless, future year Measure O activities and reports are shown as optional Cost Proposal items in the event that Measure O bond funded capital projects extend past the fiscal year ending June 30, 2026.

6. The audit firm shall perform an audit of and prepare basic financial statements and a management letter for the West Valley Solid Waste Management Authority, a California Joint Powers Authority. The Authority includes the Cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos. The City maintains the financial records and provides accounting services for the Authority. The Authority's financial activities are reported in a single enterprise fund.

7. Periodically, the City receives Transportation Development Act (TDA) funds (Article 3 Item 7.4
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8 Bikeway Program) from the Metropolitan Transportation Commission for bicycle and pedestrian improvements. Whenever such funds are received (or expended by the City) an audit is required. The City did incur expenditures during the past fiscal year and an audit of the TDA activity will be required including an opinion of fair presentation in conformity with GAAP and compliance with applicable program guidelines.

8. The City received a grant award from the California Board of State and Community Corrections (BSCC) as part of their Organized Retail Theft Prevention (ORT) Grant Program. As part of the BSCC ORT grant agreement with the City, a financial audit covering the grant period of October 1, 2023 through December 31, 2026 is required. The audit report is due no later than June 1, 2027.

Optional Items (To be shown as separate line items in Cost Proposal):

9. The audit firm shall provide, compile, and file the Annual Financial Transactions Report (FTR) to the State Controller of California, from data provided by City staff. At any time, based on capacity, City staff may wish to perform this function internally and will remove this function from the engagement at that time upon sufficient notice to the audit firm.

10. The audit firm shall provide, compile, and file the Annual Street Report to the State Controller of California, from data provided by City staff. At any time, based on capacity, City staff may wish to perform this function internally and will remove this function from the engagement at that time upon sufficient notice to the audit firm.

11. Assistance with GASB 68/75 accounting entries as needed to record the City’s net pension liability and related deferred inflows and outflows. At any time, based on capacity, City staff may wish to perform this function entirely and internally and will remove this function from the engagement at that time upon sufficient notice to the audit firm.

V. Auditing Standards to Be Followed
To meet the requirements of this Request for Proposals, the audit shall be performed in accordance with:

1. Generally accepted auditing standards as set forth by the American Institute of Certified Public Accounts;

2. The standards applicable to financial audits contained in Government Auditing Standards (2024 Revision), issued by the Comptroller General of the United States;

3. The provisions of the Single Audit Act of 1984, as amended in 1996; and

4. The provisions of Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

VI. Time Requirements
A. Date Audit May Commence
Audit planning, documentation of systems of internal control and compliance and transaction testing should be completed during the interim stage which should be Item 7.4
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9 anticipated to occur during June or July. It is expected the City will close its books and be ready for the final audit by the beginning of October.

B. Date Reports are Due
The auditor shall provide all drafts and recommendations for improvements to the Director of Finance within a reasonable time period after the last day of field work. The auditor should be available for any meetings that may be necessary to discuss the draft audit reports. Once all issues of discussion are resolved, the completed ACFR, Single Audit report and other reports shall be delivered to the Director of Finance. It is anticipated that this process will be completed and the final products to be delivered by approximately December 4 of each year.

VII. Assistance to Be Provided to the Auditor and Report Preparation A. Finance Department and Clerical Assistance
The Finance Department staff will be available during the audit to assist the firm by providing information, documentation, and explanations. Norite Vong, Assistant Finance Director, will be responsible for acting as the liaison between the audit firm and the accounting personnel.

B. Work Area, Telephone, and Office Equipment
The City will provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to a telephone, access to the general ledger system, and photocopying, FAX machines, and other electronic machines as needed.

C. Report Preparation
Report preparation, editing, printing, and binding shall be the responsibility of the auditor as listed below:

1. Annual Comprehensive Financial Report (1 Camera Ready Color Copy Unbound)

2. Single Audit Report (10 Bound)

3. West Valley Solid Waste Management Authority (10 Bound)

4. Gann Appropriations Limit Report (5 Unbound)

5. Transportation Development Act (TDA) Article 3 Grant (10 Bound) All reports above should also be provided to City digitally in Adobe Acrobat format.

VIII.General
The Consultant may recommend other tasks that it deems appropriate to achieve the objectives set forth in this RFP.

A. Working Paper Retention and Access to Working Papers All working papers and reports must be retained at the auditor's expense for a minimum of seven (7) years, unless the firm is notified in writing by the City of Campbell of the need to extend the retention period. The auditor will be required to make working papers available to the City of Campbell or any government agencies included in the audit of federal grants. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance.

B. State and National Developments
It is expected that the selected firm will keep the City informed of new state and national developments affecting municipal finance and reporting, standards and trends including changes Item 7.4
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10 in federal/state grant program accounting and reporting requirements. This shall include at least one formal updating session per year with Finance staff.

IX. Irregularities and Illegal Acts
Auditors shall be required to make an immediate, written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the following parties: City Council; City Manager; City Attorney; and the Finance Director.

X. Proposal Submission Requirements
A. General Requirements
Inquiries concerning the Request for Proposals and the subject of the Request for Proposals must be made to:

Contact Person: Norite Vong
Assistant Finance Director
City of Campbell
70 N. First Street
Campbell, CA 95008
[email protected] / (408) 866-2112

CONTACT WITH PERSONNEL OF THE CITY OTHER THAN THE ABOVE

REGARDING THIS REQUEST FOR PROPOSALS MAY BE GROUNDS FOR ELIMINATION FROM THE SELECTION PROCESS.

B. Submission of Proposal
Proposals must be received (physically or by e-mail) no later than 4:00 p.m. Pacific Time, on Monday, January 9, 2026, at the following address:

Physically
City of
Campbell Office
of the City Clerk
70 N. First Street
Campbell, CA
95008
Or
By E-mail
[email protected]
If submitting a physical version by mail, please submit five (5) copies in a sealed package with the name of the Consultant and RFP title clearly marked on the outside of the package. If submitting by e-mail, please clearly identify the Consultant and RFP title in the subject line

1. Format for Technical Proposal
a. Title Page showing the request for proposals subject; the firm’s name; the Item 7.4
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11 name, address, telephone number, and e-mail address of the contact person; and the date of the proposal.
b. Table of Contents identifying the materials submitted by section and page number. Cross-referencing to section and page number in the RFP would be helpful.
c. Signed Transmittal Letter briefly stating the Proposer's understanding of the work to be done; the commitment to perform the work within the time period; and the name(s) of the person(s) authorized to represent the Proposer, title, address, telephone number, and e-mail address.
d. Detailed Proposal following the order set forth in Section 2 below.

2. Contents of Technical Proposal
The purpose of the Technical Proposal is to demonstrate the qualifications, competence and capacity of the firm seeking to undertake an independent audit of the City in conformity with the requirements of this request for proposals. As such, the substance of proposals will carry more weight than the form or manner of presentation. The Technical Proposal should demonstrate the qualifications of the firm and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the request for proposals requirements.

The Technical Proposal should address all points outlined in the request for proposals [excluding any cost information, which should only be included in the separate Cost Proposal (in a sealed envelope if physically mailed)]. The proposal should be prepared simply and economically, providing a straightforward, concise description of the proposer's capabilities to satisfy the requirements of this request for proposals. While additional data may be presented, the following subjects must be included. They represent the criteria against which the proposal will be evaluated.
a. License to Practice in California - An affirmative statement should be included verifying the firm and all assigned key professional staff are properly licensed to practice in California.
b. Independence - The firm should provide an affirmative statement that it is independent of the City of Campbell as defined by auditing standards generally accepted in the United States of America and the General Accounting Office's Government Auditing Standards.
c. Firm Qualifications and Experience - To qualify the firm must have extensive experience in audits of local governments as well as experience with preparation of Annual Comprehensive Financial Statements. The Proposer should state the size of the firm, the size of the firm's governmental audit staff, the location of the office from which the work on this engagement is to be performed, and the number and nature of the professional staff to be Item 7.4
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12 employed in this engagement on a full-time basis and the number and nature of the staff to be so employed on a part-time basis. Staff consistency is an important consideration.

The Proposer should provide the range of activities performed by the local office, e.g., audit, accounting, tax service and/or management consulting services.

The Proposer must provide a list of all current municipal clients.

The Proposer is also required to submit a copy of a report on its most recent external quality control review (peer review), with a statement whether that quality control review included a review of specific government engagements (required by Government Audit Standards).

The Proposer shall also provide information on the results of any Federal or State desk reviews or field reviews of its audits during the past three (3) years.

In addition, the Proposer shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with State regulatory bodies or professional organizations. d. Partner, Supervisory and Staff Qualifications and Experience - Identify the principal supervisory and management staff, including engagement partners, managers, other supervisors and specialists who would be assigned to this engagement. Include resumes, indicating whether each such person is registered or licensed to practice as a certified public account in California.

Provide information on the government auditing experience of each person, including information on relevant continuing professional education for the past (3) three years and membership in professional organizations relevant to the performance of this audit.

Provide as much information as possible regarding the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement.

Indicate how the quality of staff over the term of the agreement will be assured.

Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. However, in either case, the City retains the right to approve or reject replacements.

Other audit personnel may be changed at the discretion of the Proposer provided that replacements have substantially the same or better qualifications or experience.
e. Prior Engagements with the City of Campbell - List separately all Item 7.4
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13 engagements within the last five years, if any, ranked on the basis of total staff hours, performed for the City of Campbell by type of engagement (i.e., audit, management advisory services, other). Indicate the scope of work, date, engagement partners, total hours, the location of the firm's office from which the engagement was performed, and the name, title, telephone number, and e-mail address of the principal client contact.
f. Similar Engagements with Other Government Entities - For the firm's office that will be assigned responsibility for the audit, list the most significant engagements (maximum - 5) performed in the last three (3) years that are similar to the engagement described in this request for proposals. These engagements should be ranked on the basis of total staff hours. Indicate the scope of work, date, engagement partners, total hours, and the name, title, telephone number, and e-mail address of the principal client contact. Also please indicate whether the audit was part of an Annual Comprehensive Financial Report prepared in conformance with current GASB requirements.

Information should be provided regarding clients that the firm serves that have received the CSMFO and GFOA awards.

Please provide a list of not less than five client references for whom services similar to those outlined in the RFP are currently being provided. For each reference listed provide the name of the organization, dates for which the service(s) are being provided, type of service(s) being provided and the name, title, address, telephone number, and e-mail address of the responsible person within the reference's organization. The City reserves the right to contact any or all of the listed references regarding the audit services performed by the Proposer.
g. Specific Audit Approach - The proposal should set forth a work plan, including an explanation of the audit methodology to be followed, to perform the services required in Sections of this request for proposals for IV. Scope of Services, V. Auditing Standards to Be Followed, VIII. General, IX.

Irregularities and Illegal Acts. In developing the work plan, reference should be made to such sources of information as City of Campbell budget and related materials, ACFR, organizational charts, manuals, programs, and financial and other management information systems.

Proposers will be required to provide the following information on their audit approach:

1. Proposed segmentation for the engagement;

2. Level of staff and number of hours to be assigned to each proposed segment of the engagement;

3. Sample size and the extent to which statistical sampling is to be used in this engagement;

4. Extent of use of Management Information Systems (MIS) software in this Item 7.4
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14 engagement;

5. Type and extent of analytical procedures to be used in this engagement;

6. Approach to be taken to gain and document an understanding of the City's internal control structure;

7. Approach to be taken in determining laws and regulations that will be subject to audit test work; and

8. Approach to be taken in drawing audit samples for purposes of tests of compliance.
h. Identification of Potential Audit Problems - The proposal should identify and describe any potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City.

NO DOLLAR AMOUNTS SHOULD BE INCLUDED IN THE
TECHNICAL PROPOSAL.

3. Contents of Cost Proposal
In a separate proposal (in a sealed envelope if physically mailed) marked “Cost Proposal”, provide the following:
a. Total All-Inclusive Maximum Price - The cost proposal should contain all pricing information relative to performing the audit engagement as described in this request for proposals. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses.

The City will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal.

The first page of the sealed dollar cost proposal should include the following information:

1. Name of Firm

2. Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the proposal, and authorized to sign a contract with the City.

3. A Total All-Inclusive Maximum Price for each year of the engagement.

Item 7.4
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15 The cost proposal should be submitted in the format provided in Attachment A, "AUDIT WORK COST PROPOSAL FORM" and Attachment B,
"ESTIMATE OF COST."
b. Manner of Payment - Progress payment 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.

XI. Evaluation of Proposals and Selection Process
A. Review of Proposals
City Staff, consisting at a minimum, of the following, will evaluate submitted proposals:

Will Fuentes, Finance Director
Norite Vong, Assistant Finance Director
In addition, the City Council Finance Sub-Committee will review a shortlist of finalists as determined by City staff and make a recommendation to the City Council for award of the contract.

B. Evaluation Criteria
Proposals will be evaluated using three (3) sets of criteria: mandatory, technical, and price. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process:

1. The audit firm is independent and licensed to practice in California.

2. The firm has no conflict of interest with regard to any of the work performed by the firm for the City.

3. The firm adheres to the instructions in this request for proposals on preparing and submitting the proposal.

4. The firm submits a copy of its last external quality control review report and the firm has a record of quality audit work.

5. The firm's past experience and performance on comparable government engagements.

6. The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation.

7. Adequacy of proposed staffing plan for various segments of the engagement.

8. Thoroughness of approach to conducting the audit of the City and demonstration of the understanding of the objectives and scope of the audit.

9. Commitment to timeliness in the conduct of the audit.

10. Maximum fees to conduct the audit.

XII. Miscellaneous
A. Public Records
All proposals submitted in response to this RFP become the property of the City.

Item 7.4
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16 Information in the proposal, unless specified as trade protected, may be subject to public review under the California Public Records Act (Government Code Sec. 6250 et seq.), unless exempt. Any information contained in the proposal that is proprietary must be clearly designated. Marking the entire proposal as proprietary will be neither accepted nor honored. Proprietary information submitted in response to this RFP will be handled in accordance with the California Public Records Act.

B. Right to Cancel and Amend
The City reserves the right to cancel, for any or no reason, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements. If the City cancels or revises the RFP, all Consultants will be notified in writing.

C. AdditionalInformation
The City reserves the right to request additional information and/or clarification from any or all Consultants.

D. Conflict of Interest
Selected consultant covenants that the company, its officers, employees and/or agents presently have no interest, and shall not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the services requested herein by the City. Consultant further covenants that, in the performance of any contract or agreement resulting from this RFP, no subcontractor or person having such an interest shall be employed. Consultant certifies that to the best of Consultant’s knowledge, no one who has or will have any financial interest under any contract or agreement resulting from this RFP is an officer or employee of the City.

E. Release of Public Information
Consultants who respond to this RFP who wish to release information to the public regarding selection, contract award or data provided by the City must receive prior written approval from the City before disclosing such information to the public.

F. Non-Assignment
If a contract is awarded, the selected Consultant shall neither assign, nor delegate, in part or in whole, any duties without the prior written consent of the City which shall not be unreasonably withheld.

G. Collusion
Each Consultant certifies that the company, its officers, employees and/or agents are not a party to any collusive action, fraud, or any action that may be in violation of the Sherman Antitrust Act. The Consultant certifies that the company, its officers, employees and/or agents have not offered or received any kickbacks or inducements from any other bidding Consultant, supplier, manufacturer, or subcontractor in connection with the proposal and that the company, its officers, employees and/or agents have not conferred on any public employee having official responsibility for this procurement transaction any payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value. Any or all bids shall be rejected if there is any reason to believe collusion exists among the bidding Consultants.

H. Debarment
Item 7.4
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17 By submitting a proposal, the Consultant certifies that the company is not currently debarred from submitting proposals and/or bids for contracts issued by any City or political subdivision or agency of the State of California, and that it is not an agent of a person or entity that is currently debarred from submitting proposals and/or bids for contracts issued by any City or political subdivision or agency of the State of California.

I. Equal Employment Opportunity Compliance
The selected Consultant shall not discriminate against any employee or applicant for employment because of race, creed, color, or national origin. The Consultant shall ensure that all employees and applicants for employment shall be treated with equality in all aspects of employment processes including, but not limited to, hiring, transfer, promotion, training, compensation and termination, regardless of their race, creed, color, sex, national origin, age, or physical handicap.

J. Right to Audit
The selected Consultant shall maintain such financial records and other records as may be prescribed by the City or by applicable federal and state laws, rules, and regulations.

The selected Consultant shall retain these records for a period of seven (7) years after final payment, or until they are audited by the City, whichever event occurs first. These records shall be made available during the term of the contract or service agreement and the subsequent seven-year period for examination, transcription, and audit by the City or its designees.

Item 7.4
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18 XIII.ATTACHMENT A - Audit Cost Proposal Form
Service FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 #1 City Audit and #4
Related Reports
$ $ $ $ $
#2 Single Audit and
Related Reports
$ $ $ $ $
#3 Gann Limit
Review Report
$ $ $ $ $
#5 Measure O Audit
Report
$ $ N/A $ N/A $ N/A $ N/A
#6 West Valley Solid
Waste Management
Authority (JPA)
$ $ $ $ $
#7 TDA Article 3
Audit
$ $ $ $ $
#8 BSCC ORT Grant $ N/A $ $ N/A $ N/A $ N/A
Out of Pocket
Expenses
-Meals and Lodging
-Transportation
-Other
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total for Fiscal Year
(not-to-exceed)
Without Optional
Items
$ $ $ $ $
Optional Items
#5 Measure O Annual
Report (future years)
#9 FTR
#10 Street Report
#11 GASB 68/75
$ N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total for Fiscal Year
(not-to-exceed)
With Optional Items
Item 7.4
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19 XIV. ATTACHMENT B - Estimate of Cost
Name of Firm: ________________________________________________________________ Address: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Contact Name: ________________________________________________________________ Contact Phone #: ________________________________________________________________ Contact Fax #: ________________________________________________________________ Contact E-mail: ________________________________________________________________ Auditor’s Standard Billing Rates
Position FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 Partner $ $ $ $ $
Manager $ $ $ $ $
Senior Auditor $ $ $ $ $
Staff Auditor $ $ $ $ $
Clerical $ $ $ $ $
Other $ $ $ $ $
Item 7.4
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20 XV. ATTACHMENT C - Sample Consultant Services Agreement Item 7.4
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CITY OF CAMPBELL

CONSULTANT SERVICES AGREEMENT
This Agreement is entered into at Campbell, California on the <DATE> day of <MONTH>, YEAR, by and between the CITY OF CAMPBELL (hereinafter referred to as "City") and <BUSINESS OR INDIVIDUAL NAME> (hereinafter referred to as "Consultant").

WHEREAS, City desires to obtain consulting services for <PURPOSE>; and WHEREAS, Consultant represents that it has the expertise, means, and ability to perform said reviews and City Surveyor assignment;
NOW, THEREFORE, in consideration of each other's mutual promises, Consultant and City agree as follows:

1. DUTIES OF CONSULTANT

1.1 Consultant agrees to perform services as set forth in Exhibit A - Scope of Services, attached hereto and incorporated herein by reference, and which shall be interpreted together and in harmony with this Agreement. In the event of any conflict between Exhibit A and this Agreement, this Agreement shall govern, control, and take precedence.

1.2 Consultant’s project manager will meet with the City’s project coordinator prior to commencement of the project to establish a clear understanding of the working relationships, authorities, and management philosophy of City as it relates to this Agreement.

1.3 Consultant, working with the City, will gather available existing information concerning the project, and shall review documents as necessary for compliance with the project’s objectives.

1.4 In performance of this Agreement by Consultant, time will be of the essence.

1.5 Notwithstanding Section 1.4, Consultant shall not be responsible for delay caused by activities or factors beyond Consultant’s reasonable control, including delays or by reason of strikes, work slow-downs or stoppages, or acts of God.

1.6 Consultant agrees to perform this Agreement in accordance with the highest degree of skill and expertise exercised by members of Consultant’s profession working on similar projects under similar circumstances.

1.7 Consultant shall cooperate in good faith with City in all aspects of the performance of this Agreement.

1.8 In the course of the performance of this Agreement, Consultant shall act in the Item 7.4
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City’s best interest as it relates to the project.

1.9 All activities of Consultant, its employees, subcontractors and/or agents will be carried out in compliance with all applicable federal, state, and local laws and regulations.

1.10 The designated project manager for Consultant shall be <PROJECT MANAGER NAME>. The Consultant’s project manager shall have all the necessary authority to direct technical and professional work within the scope of the Agreement and shall serve as the principal point of contact with the City and the City’s project coordinator. The authorized principal of Consultant executing this Agreement for the Consultant shall have authority to make decisions regarding changes in services, termination and other matters related to the performance of this agreement on behalf of Consultant.

1.11 The Consultant (and its employees, agents, representatives, and subconsultants), in the performance of this Agreement, shall act in an independent capacity and not as officers or officials or employees or agents of the City. The City shall not direct the work and means for accomplishment of the services and work to be performed hereunder. The City, however, retains the right to require that work performed by Consultant meet specific standards consistent with the requirements of this Agreement without regard to the manner and means of accomplishment thereof. Subcontractors shall assume all of the rights, obligations and liabilities, applicable to it as an independent contractor hereunder. Consultant represents and warrants that it (i) is fully experienced and properly qualified to perform the class of work and services provided for herein, (ii) has the financial capability and shall finance its own operations required for the performance of the work and services and (iii) is properly equipped and organized to perform the work and services in a competent, timely and proper manner in accordance with the requirements of this Agreement. Consultant agrees to comply with AB5, codified at Labor Code section 2750.3, and shall indemnify, defend and hold harmless the City, its officers, officials, directors, agents representatives, volunteers, and employees against any claim or liability, including attorneys’ fees and costs, arising in any manner related to this Agreement that an employee, agent or others under Consultant’s supervision or control was misclassified.

1.12 This Agreement contains provisions that permit mutually acceptable changes in the scope, character or complexity of the work if such changes become desirable or necessary as the work progresses. Adjustments to the basis of payment and to the time for performance of the work, if any, shall be established by a written contract amendment (approved and executed by the City) to accommodate the changes in work.

2. DUTIES OF CITY

2.1 City shall furnish to Consultant all available and pertinent data and information requested by Consultant to facilitate the preparation of the documents called for in this Agreement.

Consultant shall be entitled to reasonably rely on accuracy and completeness of such information, provided that Consultant shall make any additional investigation reasonably necessary to confirm such information and provide City prompt written notice of any known or discovered defects in such data and information.

Item 7.4
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2.2 City shall provide contract administration services. City shall notify Consultant of required administrative procedures and shall name representatives, if any, authorized to act in its behalf.

2.3 City shall review documents submitted by Consultant and shall render decisions pertaining thereto as promptly as reasonably possible.

3. COMPENSATION

3.1 For the full performance of the services described herein by Consultant, City agrees to compensate Consultant for all services and direct costs associated with the performance of the project in an amount not to exceed $<AMOUNT>, as follows:
a. Once each month, Consultant shall submit for payment by City, an itemized invoice for services performed during the previous billing period. The invoice shall describe the services rendered and the title of the item of work, and shall list labor hours by personnel classification.

Said invoice shall be based on all labor and direct expense charges made for work performed on the project. Labor charges shall be in accordance with the fee schedule found in Exhibit A of this Agreement. City shall pay Consultant for services rendered and approved by the City within 30 days from the date the itemized invoice is received by the City, subject to the maximum not to exceed amount specified above and the City’s right to object. b. Direct costs are those outside costs incurred on or directly for the project, and substantiated with invoices for the charges. Direct expenses include printing, reproduction, and delivery charges.

3.2 If Consultant incurs other costs which are not specifically covered by the terms of this Agreement, but which are necessary for performance of Consultant’s duties, City may approve payment for said costs if authorized in writing by the City in advance.

3.3 City may order changes in the scope or character of services in writing, including decreasing the amount of Consultant’s services. In the event that the work is decreased, Consultant is entitled to full compensation for all services performed and expenses incurred prior to receipt of notice of change. Under no conditions shall Consultant make any changes to the work, either as additions or deductions, without the prior written order of the City. In the event, that the City determines that a change to the work or services from that specified in this Agreement is required, the contract time and/or actual costs reimbursable by the City for the project may be adjusted by contract amendment or change order to accommodate the changed work. The maximum not to exceed total amount specified in this Article 3 (Compensation) shall not be exceeded, unless authorized by written contract amendment or change order, approved and executed by the City.

Consultant shall obtain prior written approval for a revised fee schedule from the City before exceeding such fee schedule. Only City’s authorized representative(s) is authorized to approve changes to this Agreement on behalf of City.

3.4 In no event, will the Consultant be reimbursed for any costs or expenses at any rates that exceed the rates for set forth in the fee schedule found in Exhibit A.

Item 7.4
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3.5 Consultant agrees that the payments to Consultant specified in this Article 3 (Compensation) will constitute full and complete compensation for all obligations assumed by Consultant under this Agreement. Where conflicts regarding compensation may occur, the provisions of this section apply.

4. SUBCONSULTANTS

4.1 Consultant may not subcontract any services required under this Agreement without the prior written consent of the City.

4.2 Consultant shall be responsible to City for the performance of any and all subconsultants who perform work under this contract, and any acts of negligence or misconduct on their part. Consultant is solely responsible for all payments due to subconsultants.

4.3 Consultant shall require and verify that all subcontractors maintain insurance meeting all of the requirements stated herein, including naming the City of Campbell, its officers, officials, directors, agents representatives, volunteers, and employees as additional insureds. Any modification to the insurance requirements for subcontractors must be agreed to by the City in writing.

4.4 If at any time, the City determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract.

5. OWNERSHIP OF DOCUMENTS AND MATERIALS
All original drawings, documents, papers, data, materials, photographs, negatives and other work products prepared by the Consultant and/or its subconsultants in the performance of the services encompassed in this Agreement (whether in printed or electronic format) (“project-related documents and materials”) shall be the property of the City and may be used on this project without the consent of the Consultant or its subcontractors. City acknowledges that such drawings, documents, and other items are instruments of professional services intended for use only on the subject project. Consultant agrees that all copyrights which arise from creation of the Project-related documents and materials pursuant to this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. Any project-related documents and materials related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, or except as otherwise provided herein. Upon the completion or termination of this Agreement for any reason, the City shall be entitled to receive, and Consultant shall promptly provide to the City upon request, all finished and unfinished project-related documents and materials, produced or gathered by or on behalf of Consultant that Item 7.4
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are in Consultant’s possession, custody or control. Consultant may retain copies of said documents and materials for its files. In the event of termination, any dispute regarding compensation or damages shall not hinder, prevent, or otherwise impact the City’s right to promptly receive and use such documents and materials which are the sole and exclusive property of the City.

6. TERMINATION

6.1 Notwithstanding any other provision of this Agreement, City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Consultant not less than <# OF DAYS> calendar days prior to an effective termination date. In the event of such termination, Consultant shall have the right and obligation to immediately assemble the work then in progress for the purpose of completing the work and turning over all materials and documents to City.

6.2 In the event of such termination, Consultant shall be compensated for all work and services performed to the point of termination in accordance with the payment provisions set forth in Section 3.1, unless the termination is for cause, in which event Consultant need be compensated only to the extent required by law.

6.3 Upon notice of termination by City, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. All finished or unfinished work or documents procured or produced under the Agreement will become property of the City upon the termination date. In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City. Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set off until such time as the exact amount of damages due City from Consultant is determined. After the effective date of termination, Consultant will have no further claims against the City under the Agreement.

No other compensation will be payable for anticipated profit on unperformed services.

7. AUDIT AND INSPECTION
Consultant shall permit authorized representatives of City to inspect and audit all data and records relating to its performance under this Agreement for a period of three years following acceptance of the final study.

8. EQUAL EMPLOYMENT OPPORTUNITY
Consultant agrees to refrain from discriminatory employment practices on the basis of race, religious creed, color, sex, national origin, handicap, sexual orientation, marital status, medical condition, disability, ancestry, organizational affiliation, military or veteran status, or Item 7.4
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any other consideration made unlawful by local, State or Federal law, of any employee of, or applicant for employment with, such Consultant or subcontractor. City requires Consultant to comply with all applicable Federal and State and local equal employment opportunity laws and regulations.

9. INSURANCE AND INDEMNIFICATION

9.1 With respect to any design professional services provided by Consultant, the Consultant agrees to indemnify, and hold harmless the City, its officers, and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, damages, liabilities and losses, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, except for any claims, actions, causes of action, losses, damages or liabilities proximately caused by the sole negligence or willful misconduct of City. City shall not be liable for acts of Consultant in performing services described herein. Notwithstanding anything in this paragraph to the contrary, any defense costs charged to the design professional under this paragraph shall not exceed the design professional’s proportionate percentage of fault, except:
a. That in the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the design professional shall meet and confer with the other parties regarding unpaid defense costs in good faith effort to agree on the allocation of those costs amongst the parties; and
b. Where a project-specific general liability policy insures all project participants for general liability exposures on a primary basis and also covers all design professionals for their legal liability arising out of their professional services on a primary basis, then there shall be no limitation on the design professional's duty to provide a defense and cover the City's cost of defense.

With respect to all matters other than those covered by the foregoing paragraph, Consultant agrees to indemnify, defend (with counsel reasonably satisfactory to the City) and hold harmless the City, its officers, officials, directors, agents representatives, volunteers, and employees to the fullest extent allowed by law from and against any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including attorneys’ fees and costs (collectively, “Losses”) including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Consultant’s performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by the sole negligence or willful misconduct of City. City shall not be liable for acts of Consultant in performing services described herein.

In no event shall this section be construed to require indemnification by the Consultant to a greater extent than permitted under the public policy of the State of California; and in the event that this contract is subject to California Civil Code section 2782(b), the foregoing indemnity provisions shall not apply to any liability for the active negligence of the City.

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The defense and indemnity provisions obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations contained in this Agreement. The foregoing indemnity provisions are intended to fully allocate the parties’ risk of liability to thirdparties; and there shall be no rights to indemnity or contribution, in law or equity or otherwise between the parties that are not set forth in this section. Consultant waives all rights to subrogation for any matters covered by the provisions of this section. Consultant’s responsibility for such defense and indemnity obligations as set forth in this section shall survive the termination or completion of this Agreement for the full period of time allowed by law.

9.2 Consultant shall maintain insurance conforming to the following specifications to the fullest amount allowed by law for a minimum of three (3) years following the termination or completion of this Agreement:

A. Types of Coverage
The policies shall afford the following types of coverage:

1. Commercial General Liability;

2. Automotive;

3. Workers’ Compensation and Employer Liability; and

4. Professional Liability and/or Errors and Omissions
B. Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. For Commercial General Liability: Insurance Services Office (ISO) CGL Form 00 01 11 85; and

2. For Automotive Liability: ISO CA 00 01 06 92 including symbol 1(any auto); and

3. For Workers’ Compensation: insurance as required by the Labor Code of the State of California and Employer's Liability insurance; and

4. For Professional Liability and/or Errors and Omissions: insurance covering negligence committed by or on behalf of Consultant in rendering services to City.

C. Minimum Limits of Insurance
Consultant shall maintain limits no less than:

1. General Liability: $1,000,000 combined single limit per occurrence for Item 7.4
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bodily, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage.

3. Workers’ Compensation and Employer's Liability: Workers’ Compensation limits as required by the Labor Code of the State of California and Employer's Liability limits of $1,000,000 per accident. The Worker’s Compensation policy must be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant and its employees.

4. Professional Liability and/or Errors and Omissions: $1,000,000 per claim and $2,000,000 in the annual aggregate.

The limits of insurance required in this Agreement 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 (as agreed to in this Agreement) before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

D. Deductible and Self-Insured Retention
Any deductibles or self-insured retention must be declared to and approved by the City, and shall not reduce the limits of liability. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its agents, officers, attorneys, employees, officials and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses related to investigations, claim administration, and defense expenses. Policies containing any self-insured retention provision shall provide or be endorsed to provide that the self-insured retention may be satisfied by either the named insured or the City.

E. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability Coverage:
a. The City, its agents, officers, attorneys, employees, officials and volunteers are to be covered as additional insureds as respects: liability arising out of this Agreement performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, leased, hired or borrowed by the Consultant. It is a requirement of this Agreement that any available insurance proceeds broader Item 7.4
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than or in excess of the specified minimum insurance coverage requirements and/or limits set forth in this Agreement shall be available to the City as an additional insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured, whichever is affords greater coverage. b. The Consultant's insurance coverage shall be primary insurance as respects the City, its agents, officers, attorneys, employees, officials and volunteers.

Any insurance or self-insurance maintained by the City, its agents, officers, attorneys, employees, officials and volunteers shall be excess of the Consultant's insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its agents, officers, attorneys, employees, officials, and volunteers.
d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability.

2. Workers’ Compensation and Employer’s Liability Coverage: The insurer shall agree to waive all rights of subrogation against the City, its agents, officers, attorneys, employees, officials, and volunteers for losses arising from work performed by the Consultant for the City.

3. All Coverages: Any unintentional failure to comply with reporting provisions of the policies shall not affect coverage provided to the City; and unless otherwise approved by the City, each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by regular mail has been given to the City, or ten (10) days for cancellation for non- payment of premium.

F. Suspension or Cancellation
If any of the coverages required by this Agreement should be suspended, voided, cancelled or reduced in coverage during the term of this Agreement, Consultant shall immediately notify City and replace such coverage with another policy meeting the requirements of this Agreement.

G. Subcontractors
Consultant agrees that any and all contracts with subcontractors for performance of any matter under this Agreement shall require the subcontractors to comply with the same indemnity and insurance requirements set forth in this Agreement to the extent that they apply to the scope of the subcontractors’ work. Subcontractors are to be bound to contractor and to City in the same Item 7.4
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manner and to the same extent as the Consultant is bound to City under this Agreement.

Subcontractors shall further agree to include these same provisions with any sub-subcontractor. A copy of this Agreement will be furnished to the subcontractor on request. The Consultant shall require all subcontractors to provide a valid certificate of insurance and the required endorsements included in the Agreement prior to commencing any work, and will provide proof of compliance to the City.

H. Acceptability of Insurers
Without limiting Consultant's indemnification provided hereunder, the policies of insurance listed in Article 9.2 of this Agreement are to be issued by an issuer with a current A.M. Best Rating of A:V and who is authorized to transact business in the State of California, unless otherwise approved by the City.

I. Verification of Coverage
Consultant shall furnish the City with endorsements and certificates of insurance evidencing coverage required by this clause. The certificates for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates are to be on forms acceptable to the City. Where required by statue, forms approved by the Insurance Commissioner are to be submitted. All certificates are to be received and approved by the City before work commences.

J. Special Risks/Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances and provide notice to Consultant.

10. MISCELLANEOUS

10.1 This Agreement shall be binding on the heirs, executors, assigns and successors of Consultant.

10.2 Neither party may assign this Agreement, or any portion hereof, without the prior written consent of the other.

10.3 This Agreement shall not be construed to alter, affect, or waive any lien or stop notice rights, which Consultant may have for the performance of services pursuant to this Agreement.

10.4 Neither party’s waiver of any term, condition or covenant, or breach of any term, condition or covenant shall be construed as the waiver of any other term, condition or covenant or waiver of the breach of any other term, condition or covenant.

10.5 This Agreement contains the entire Agreement between City and Consultant relating to the project and the provision of services to the project. Any prior agreements, Item 7.4
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promises, negotiations, or representations not expressly set forth in this Agreement are of no force or effect. Subsequent modifications to this Agreement shall be in writing and signed by both City and Consultant.

10.6 If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding on City and Consultant.

10.7 This Agreement shall be governed and construed in accordance with the laws of the State of California.

10.8 All changes or amendments to this Agreement must be in writing and approved by all parties.

10.9 The initial contract term shall commence upon execution of the contract by the City and shall be for a <# OF YEARS> year period, unless terminated sooner in accordance with the contract. Any extension of the Agreement shall be mutually agreed upon in writing and shall require an amendment to the Agreement signed by both parties.

10.10 Consultant owes the City a duty of undivided loyalty in performing the work and services under this Agreement, including, but not limited to, the obligation to refrain from having economic interests and/or participating in activities that conflict with the City’s interests in respect to the work and/or services and project. The Consultant shall list current clients who may have a financial interest in the outcome of this Agreement. The Consultant hereby certifies that it does not now have, nor shall it acquire any financial or business interest that would conflict with the performance of services under this agreement. Consultant shall not make or participate in making or in any way attempt to use Consultant’s position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a direct or indirect financial interest other than the compensation promised by this Agreement. Consultant will immediately advise the City if Consultant learns of a financial interest of Consultant's during the term of this Agreement.

10.11 City is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If Consultant’s proprietary information is contained in documents or information submitted to City, and Consultant claims that such information falls within one or more CPRA exemptions, Consultant must clearly mark such information “Confidential and Proprietary,” and identify the specific lines containing the information. In the event of a request for such information, City will make best efforts to provide notice to Consultant prior to such disclosure. If Consultant contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief or other appropriate remedy from a court of law in Santa Clara County before the City is required to respond to the CPRA request. If Consultant fails to obtain such remedy within the time the City is required to respond to the CPRA request, City may disclose the requested information without any liability to Consultant. Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising Item 7.4
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from any representation, or any action (or inaction), by the Consultant.

10.12 Neither party hereto shall be considered in default in the performance of its obligation hereunder to the extent that the performance of any such obligation is prevented or delayed by an act of God, natural disaster, pandemic, acts of terrorism, war, or other peril, which is beyond the reasonable control of the affected party and without the negligence of the respective Parties. Each party hereto shall give notice promptly to the other of the nature and extent of any Force Majeure claimed to delay, hinder or prevent performance of the services under this Agreement. Each Party will, however, make all reasonable efforts to remove or eliminate such a cause of delay or default and will, upon the cessation of the cause, diligently pursue performance of its obligations in this Agreement. In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, there may be an equitable adjustment of the schedule and Consultant compensation based on City’s sole discretion.

10.13 Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

10.14 Consultant warrants that Consultant, its subcontractors and/or agents (if any) has/have complied with any and all federal, state, and local licensing requirements

10.15 Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

10.16 The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement.

10.17 This Agreement is entered into, and to be performed in Santa Clara County, California, and any action arising out of or related to this Agreement shall be maintained in a court of appropriate jurisdiction in Santa Clara County, California.

10.18 This Agreement may be executed in counterparts which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

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11. NOTICES
Notices required under this Agreement may be delivered by first class mail addressed to the appropriate party at one of the following addresses:

CITY: City of Campbell
Attention: <ATTENTION TO>
70 North First Street
Campbell, CA 95008
CONSULTANT:
[SIGNATURES ON FOLLOWING PAGE]
Attention:

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Having read and understood the foregoing Agreement, the undersigned parties agree to be bound hereby:

CONSULTANT CITY OF CAMPBELL
Name Name
Title Title
Approved as to Form
City Attorney
Name
/s/ /s/
/s/
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Exhibit A - Scope of Services and Fees
<DETAILED SCOPE OF SERVICES AND FEES INCLUDING ANY HOURLY RATES> Item 7.4
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Title Page
January 8, 2026
Proposal for Financial Auditing Services
City of Campbell
Submitted By:

Eide Bailly LLP
4040 Campbell Ave. Ste 200
Menlo Park, CA 94025
Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathaniel Edelman, CPA
Partner
650.223.6115
[email protected]
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Table of Contents
Title Page (X. Section B.1, page 10).............................................................................................................................................1 Table of Contents (X. Section B.1, page 10).............................................................................................................................2 Signed Transmittal Letter (X. Section B.1, page 10)..............................................................................................................3 License to Practice in California (X. Section B.2, page 11) ..................................................................................................5 Independence (X. Section B.2, page 11)....................................................................................................................................5 Firm Qualifications and Experience (X. Section B.2, page 12) ...........................................................................................5 Partner, Supervisory and Staff Qualifications and Experience (X. Section B.2, page 12) ........................................14 Prior Engagements with the City of Campbell (X. Section B.2, page 12) ......................................................................19 Similar Engagements with Other Government Entities (X. Section B.2, page 13) .....................................................19 Specific Audit Approach (X. Section B.2, page 13) ................................................................................................................21 Proposed Segmentation of Engagement (X. Section B.2, page 13) ........................................................................22 Level of Staffing and Number of Hours (X. Section B.2, page 13) ...........................................................................25 Statistical Sampling (X. Section B.2, page 13)..................................................................................................................25 Use of Management Information Systems (X. Section B.2, page 13) .....................................................................25 Analytical Procedures (X. Section B.2, page 14)..............................................................................................................26 Determining Laws and Regulations Subject to Audit Test Work (X. Section B.2, page 14) ...........................28 Drawing Audit Samples (X. Section B.2, page 14)..........................................................................................................28 Identification of Potential Audit Problems (X. Section B.2, page 14) .............................................................................28 The Right Choice for the City of Campbell......................................................................................................................31 Requested Contract Exceptions...........................................................................................................................................33 Item 7.4
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Signed Transmittal Letter
Your Goals, Our Commitment
Thank you for the opportunity to support City of Campbell (the City) in achieving your goals through providing financial auditing. We value our working relationship with the City and believe we remain the firm of choice, based on our historical knowledge and industry expertise.

Based upon the issued Request for Proposal (RFP) and our previous experience with the City, we understand your needs to include the following, beginning with the year ending June 30, 2026 through 2028:
• Annual audit of all funds of the City, conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller of the United States.
• Preparation of the City's Annual Comprehensive Financial Report (ACFR).
• A single audit on the expenditures of federal grants in accordance with Uniform Guidance.
• Agreed-upon auditing procedures pertaining to the City's Gann Limit (Appropriations Limit).
• Issuance of management letters.
• Measure O compliance report.
• Annual audit and financial statement preparation for the West Valley Solid Waste Management Authority.
• Audit of TDA activity.
• Audit of the grant award of the California Board of State and Community Corrections (BSCC) as part of their Organized Retail Theft Prevention (ORT) Grant Program. • Provision, compilation and filing of the Annual Financial Transactions Report (FTR) to the State Controller of California
• Provision, compilation and filing of the Annual Street Report to the State Controller of California • Assistance with GASB 68/75 accounting entries as needed to record the City’s net pension liability and related deferred inflows and outflows.

We’ll meet your deadlines. Our professionals are trained to anticipate, identify and respond to your needs in a timely manner. We believe in clear, up-front and open communication with no surprises. We understand and will comply with the schedules and scope for the engagement and will perform all work within the timeframes outlined.

We understand that today’s business environment demands more than just technical expertise — it requires a partner who listens, adapts, and delivers value that aligns with your vision for success. We’ve crafted this proposal with your team in mind, focusing on the outcomes that matter most to the City and the challenges you’re navigating right now.

Our objective is simple: to help you move forward with confidence. Whether it's protecting what you've built, improving performance, or uncovering new ways to grow, Eide Bailly is here to offer thoughtful support and practical solutions. Our service is always grounded in a genuine understanding of your world.

Authorized Contracts
Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathan Edelman, CPA
Partner
650.223.6115
[email protected]
4040 Campbell Ave., Ste. 200
Menlo Park, CA 94025
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The City won’t just retain an experienced service provider — you’ll continue working with a team that listens closely, responds quickly, and shows up with insight, not just answers. We’ve spent more than 70 years working with organizations in the government industry space, so we understand the pace, pressure, and purpose that drive your work. That perspective shapes everything we do. As in the past, you can expect the following from our relationship:
• Relationships come first. Our professionals work side by side with clients, building a deep understanding of their goals, challenges, and operations. This collaborative mindset allows us to offer tailored advice and solutions from a team that truly knows their clients’ organizations. • We believe in being more than just service providers — we’re partners in your success. Our team, from senior partners to support staff, stays involved year-round, offering timely, relevant insights, and fostering a relationship rooted in trust, responsiveness, and genuine care. • Every client is unique, and we take the time to understand their distinct qualities. With firmwide collaboration and seamless knowledge sharing, our teams leverage the experience of professionals across industries to deliver customized support and proactive guidance. • Strong relationships are built on consistent, meaningful communication. Eide Bailly’s client service model emphasizes open dialogue, prompt responsiveness, and a collaborative approach that treats clients as peers, ensuring the best outcomes for every engagement.

We know your organization and understand where you’re headed. Our team brings a thoughtful, hands-on approach designed to support the City’s momentum, strengthen your foundation, and help you move forward with clarity.

We’re committed to being responsive, reliable advisors and would be glad to answer any questions as you evaluate next steps. We look forward to working with you now and in the future.

Warm regards,
Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathaniel Edelman, CPA
Partner
650.223.6115
[email protected]
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License to Practice in California
Eide Bailly and each of the professional staff assigned to the City are properly registered and licensed to practice in California.

Secretary of State Registration: 202020121001
State Board of Accountancy Permit: 5973
Independence
Eide Bailly is independent of the City as defined by the generally accepted auditing standards (GAAS) and the U.S. Government Accountability Office’s Government Auditing Standards. We have served as the City’s external auditor since 2020, but verify we remain independent.

The second general standard for auditing requires the audit organization and the auditors be free from personal and external impairments to independence. As defined by these standards, Eide Bailly is independent in fact and in appearance, and no relationships, either personal or professional, exist that would cause our firm to not be impartial in dealing with the City.

Should Eide Bailly enter into any professional relationships deemed relevant during the course of this engagement, we will notify you in writing of such relationship.

Firm Qualifications and Experience
Your Goals, Our Commitment
What Sets Us Apart
At Eide Bailly, we believe every organization has untapped potential. With more than 100 years of service and a team of over 3,500 professionals, we align our strengths with your ambitions to move you forward.

Whether you’re navigating today’s challenges or preparing for what’s next, our mission is to help you optimize performance, safeguard what you have built, and plan for future growth so your business is stronger today, and even stronger tomorrow.

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Your experience with Eide Bailly will be different than working with other CPA and advisory firms. Yes, accounting is about numbers — but our business is about relationships. When you work with us, you’ll feel the difference in how we collaborate, communicate, and genuinely care about your success.

We deliver personalized service at a service-line level, while offering access to deep industry and service expertise across our national firm. Our professionals work with you to bring clarity, strategic thinking, and practical solutions to every engagement.

A Relationship, Not Just an Engagement
Our work with clients goes beyond the deliverables — it’s a relationship built on trust, shared values, and measurable results.

When you choose Eide Bailly, you’ll continue to:
• Partner with people who take the time to understand you and your organization — not just the numbers.
• Gain insights from specialized teams to address challenges, meet objectives, and uncover new opportunities.
• Make smarter decisions backed by experienced advisors who care about your long-term success. • Experience our proactive, hands-on service model — always focused on helping you operate at peak performance.

Core Services
Eide Bailly is a full-service CPA firm performing traditional CPA firm services of attest (audits, reviews, compilations) and tax. We also focus on management advisory services including vendor added reseller (VAR) of software and many other nontraditional services.

Our core services offered include the following:

Advisory
• Government Advisory Services
• Internal Audits
• Digital & Technology Services
• Enterprise Risk Management
• Financial Services
• Fraud & Forensic Advisory
• HR Consulting
• Business Valuation
• Transaction Advisory & Services
• Client Accounting Services
• Risk Advisory & Cybersecurity
Local Presence, Unmatched Resources
1,300
Government Clients
4040 Campbell Ave. Ste 200
Menlo Park, CA 94025
3,500+
Professionals Firmwide
300+
Government Professionals
The proposed team is uniquely qualified and
has past experience with the City. The team
will consist of two partners, one manager and
various senior and staff associates. All are fulltime employees.

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Audit & Assurance Tax
• Audits
• Reviews
• Compilations
• Single Audits
• Employee Benefit & Retirement Plan Audits
• International Financial Reporting Standards
• Agreed-Upon Procedures
• SEC Services
• System and Organization Controls (SOC 1, 2 & 3)
• Cost Segregation
• Fixed Asset Services
• Business Credits & Incentives
• International Tax
• State & Local Tax
• Exempt Organization Tax
• IRS Dispute Resolution & Collections
• R&D Tax Credits
• Tax Consulting
• Tax Planning & Compliance
• Wealth Transition Services
Proud to Serve California Governments
We have served local governments in California for over 70 years performing numerous audits of government entities. A summary of California government clients served within the last five years is provided below:

Cities
City of Alameda City of Folsom City of Lemon Grove City of Rancho Mirage City of Saratoga City of Brawley City of Foster City City of Los Altos City of Rohnert Park City of South Lake Tahoe City of Brea City of Glendale City of Monte Sereno City of Roseville City of Suisun City City of Brentwood City of Gonzales City of Napa City of Sacramento City of Temecula City of Campbell City of Grand Terrace City of Oceanside City of San Jacinto City of Temple City City of Chico City of Greenfield City of Palmdale City of San Leandro City of Walnut City of Concord City of Huntington Park City of Paramount City of San Ramon City of Walnut Creek City of Dana Point City of Indian Wells City of Pleasanton City of Santa Clara City of Whittier City of Davis City of Laguna Beach City of Rancho Cordova City of Santa Clarita City of Fairfield City of Laguna Niguel City of Rancho Palos Verdes City of Santa Cruz Transportation
John Wayne Airport Orange County Transportation Authority Riverside County Transportation Commission Caltrain Sacramento Area Council of Governments Golden Gate Bridge, Highway & Transportation District North County Transit District Transportation Authority of Marin San Francisco County Transportation Authority Monterey-Salinas Transit Sacramento International Airport Alameda County Transportation Commission High Desert Corridor JPA San Mateo County Transit District Santa Clara Valley Transportation Authority SR 91 Express Lanes Victor Valley Transit Authority Imperial County Transportation Commission Omnitrans San Joaquin Regional Rail Commission Ventura County Transportation Commission Solano Transportation Authority Capital SouthEast Connector JPA Sewer, Sanitation & Flood Agencies
Bayshore Sanitary District Knights Landing Community Services District Fairfield-Suisun Sewer District Central Contra Costa Sanitary District Sacramento Regional County Sanitation District Sacramento Area Sewer District Central Marin Sanitation Agency Alameda County Waste Management Authority West Bay Sanitary District Cupertino Sanitary District Vallejo Sanitation and Flood Control District Oro Loma Sanitary District Delta Diablo Sanitation District Madison Community Services District West Valley Sanitation District East Bay Discharge Authority Riverside County Waste Management Ross Valley Sanitation District Union Sanitary District Orange County Waste & Recycling County Governments Water Agencies
County of Riverside County of Shasta Helix Water District Sacramento County Water Agency County of Sacramento County of Solano Santa Clara Water District Sacramento Groundwater Authority County of San Diego County of Sonoma Reclamation District 2035 Elsinore Valley Municipal Water District County of San Joaquin County of Ventura Santa Margarita Water District Montara Water and Sanitary District County of San Bernardino County of Yolo Yolo-Davis Clean Water JPA Beaumont Cherry Valley Water District County of San Benito County of Placer Yucaipa Valley Water District Municipal Water District of Orange County County of Orange Moulton Niguel Water District California State Department of Water Resources Suisun-Solano Water Authority
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We Understand Governments
Our firm’s Government Industry Group has 300+ full-time professionals who share information, learn from others, and stay up to date on industry developments. To gain the greatest benefit, the knowledge is shared with professionals across the firm.

The government industry represents one of Eide Bailly’s largest niche areas — with more than 1,300 government clients firmwide. We provide audit services for a variety of cities, counties, colleges and universities, fire relief agencies, housing authorities, school districts, state agencies, and tribal entities.

Through serving these clients, our professionals have gained focused expertise in the government industry and will provide you with insightful advice.

These services include, but are not limited to, evaluating internal control structure, assessing control risk, and performing tests of controls, as well as testing compliance with applicable laws and regulations in accordance with Government Auditing Standards.

Government Industry Involvement
Eide Bailly prioritizes staying current with changes to the government industry. We help clients adapt to changes within the existing standards and implement any new standards.

Our team members are engaged in the government industry and are well positioned in organizations associated with government entities including:
• AGA (formerly Association of Government Accountants), local and national boards, and the Financial Management Standards Board. • American Institute of Certified Public Accountants’ (AICPA) Governmental Audit Quality Center (GAQC), Private Companies Practice Section (PCPS) Technical Committee.
• Governmental Accounting Standards Advisory Council (GASAC). • Review committee of the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting.
○ Brian Stavenger, Partner, serves on the GFOA’s Committee on Economic Development and Capital Planning.
○ James Ramsey, Partner, serves on the GFOA’s Accounting, Auditing, and Financial Reporting Standing Committee.
• National Association of State Auditors, Comptrollers and Treasurers (NASACT). • Association of Local Government Auditors (ALGA)
• National Association of Housing and Redevelopment Officials (NAHRO) Item 7.4
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In addition, our team members have been sought out to present on government topics for multiple professional associations including the Institute of Internal Auditors and the Association of Certified Fraud Examiners.

Gerry Boaz, Governmental Accounting Standards Board (GASB) Implementation Specialist, has regularly attended GASB meetings since 2000 as part of his liaison duties and responsibilities for the State of Tennessee, State Auditor’s Office, and provided detailed summaries of those meetings to the NASACT. Gerry’s attendance on behalf of Eide Bailly at these meetings provides information for newsletters, e-blasts, and webinars.

We have been involved with many GASB task forces over the years that have shaped the future of state and local government accounting and financial reporting. Our task force participation include what became GASB No. 74 and 75 on Other Post-Employment Benefits (OPEB); GASB No. 103, Financial Reporting Model Improvements; the note disclosure project, which evolved into GASB Concepts Statement No. 7, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements—an amendment of GASB Concepts Statement No. 3; and the current revenue and expense recognition (RER) model and voluntary digital financial reporting projects.

Due to our leadership positions, you will have access to information not available from other accounting firms.

Single Audit Experience
Eide Bailly has experience providing single audits related to federal expenditures which ensure our clients remain compliant. Our single audits include an audit of both the financial statements and the federal awards.

We also assist in the preparation of the Data Collection Form and prepare the reporting package for submission to the Federal Audit Clearinghouse.

Eide Bailly has a three-year average of auditing more than $28.8 billion in federal expenditures, which provides us with extensive experience in single audits. Not only are we on the forefront of new regulations, but because of our vast experience with government entities, we are also familiar with a wide variety of federal programs.

As the City looks to expand its current federal programs, we can pull from our expansive database of federal programs that we have audited and provide consultation on what has worked effectively for other entities.

This will help the City establish strong controls and processes over new federal programs rather than trying to rework controls and processes after the programs are established.

Our single audit experience includes the Department of Education, Department of Housing and Urban Development, Department of Agriculture, Department of Commerce, Department of Interior, Department of Transportation, Department of Justice, Department of Labor, Department of the Treasury, Department of Health and Human Services, Homeland Security, National Foundation on the Arts and the Humanities, Environmental Protection Agency, Department of Energy, Office of the National Drug Control Policy, Department of Defense and the Bureau of Land Management.

Paired with our many years of experience, we are qualified to effectively work with your organization to ensure federal requirements are met.

ACFR Preparation Experience
On our advisory side, we assist clients with year-end audit preparation, including performing periodic or yearend closes, preparing schedules to be included in the financial statements (such as footnote schedules), and even assisting in the preparation of the report themselves. Additionally, we prepare GAAP compliant reports for many of our assurance clients to ensure that all of the required disclosures are provided.

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We work with clients to prepare or provide
additional review and critique of their ACFR or other
financial reports the client prepares, in addition to or in lieu of the ACFR. When our client prepares the
ACFR containing audited financial statements, it is
our responsibility to provide assurance that the
information contained in the ACFR articulates the
work that has been audited during the engagement.

We use disclosure checklists and procedures are
updated for each new standard released to gain this
assurance.

In certain cases, we review the previously issued
ACFR for readability, clarity and consistency with
standards. We base this review not only on
disclosure checklists, but also on peer trends and
techniques. We perform this service for clients such
as the Office of Montana Board of Investments,
Office of the State Controller of California, the Office of the State Controller of California, State of South
Dakota Bureau of Finance and the State of Nevada
Controller’s Office, annually reporting to
management suggested changes, or assisting them
with other GASB thought leadership.

We work with and refer to GFOA’s Governmental
Accounting, Auditing and Financial Reporting
(GAAFR) and its supplements as an additional source
of guidance when assisting our clients in preparation
of the ACFR. We also have available to the team CCH
Wolters Kluwer’s Governmental Generally Accepted
Accounting Principles (GAAP) Guide, Governmental
GAAP Practice Manual and Governmental GAAP
Disclosures Manual, all of which are written by a
retired Eide Bailly partner.

GFOA’s Certificate of Achievement for
Excellence in Financial Reporting
Eide Bailly’s government professionals are wellpositioned in organizations associated with government entities. We are members of the AICPA’s GAQC, the primary purpose of which is to promote the importance of quality government audits. We have also held leadership roles in the GFOA at both the national and local levels.

Because we know how important achieving the GFOA Certificate of Achievement for Excellence in Financial Reporting is to clients, we work with them to achieve this certification.

GFOA
Certificate of Achievement for Excellence
in Financial Reporting
Below is a partial listing of our clients that have been awarded and maintain this certification.

City of Brea, CA
City of Bismarck, ND
City of Brookings, SD
City of Chico, CA
City of Davis, CA
City of Fargo, ND
City of Minot, MN
City of Snyder, TX
City of Walnut, CA
City of Alameda, CA
City of Buckeye, AZ
City of Concord, CA
City of Corinth, TX
City of Boise City, ID
City of Dana Point, CA
City of Lake Tahoe, CA
City of Louisville, CO
City of Paramount, CA
City of Pleasanton, CA
City of Sacramento, CA
City of Santa Cruz, CA
City of Maple Grove, MN
City of Moorhead, MN
City of San Leandro, CA
City of Sioux Falls, SD
County of Orange
County of Solano
County of San Benito
County of Placer
County of Riverside
Delaware County
County of Yolo
Benton County
Burke County
Dakota County
Richland County
Deschutes County
City of Roseville, CA
City of Durango, CO
City of Campbell, CA
City of Glendale, CA
City of La Palma, CA
City of Redlands, CA
City of Wichita, KS
City of Temecula, CA
City of Whittier, CA
City of Camarillo, CA
City of Fairfield, CA
City of Lafayette, CO
City of Palmdale , CA
City of San Ramon, CA
City of Suisun City, CA
City of Temple City, CA
City of Indian Wells, CA
City of Laguna Beach, CA
City of Walnut Creek, CA
City of Laguna Niguel, CA
City of Rancho Mirage, CA
City of Rancho Cordova, CA
City of Salt Lake City, UT
City of South Lake Tahoe, CA
City of Rancho Palos Verdes, CA
Town of Flower Mound, TX
County of San Mateo
County of Santa Clara
County of Ventura
County of Santa Barbara
County of Sacramento
Canyon County
King County
Kootenai County
Lincoln County
McLean County
Johnson County
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Several members of our firmwide government team are members of the GFOA’s Special Review Committee (SRC) for the Certificate of Achievement for Excellence in Financial Reporting, including:
• Ahmad Gharaibeh, Partner (10 years on SRC)
• Nathan Edelman, Partner (8 years on SRC)
• Michael Michelsen, Partner (15 years on SRC)
• Lealan Miller, Partner (15 years on SRC)
• Brian Stavenger, Partner (15 years on SRC)
• Brian Unsen, Partner (15 years on SRC)
• Brad Thiesen, Senior Manager (10 years on SRC)
• Jamie Fay, Partner (7 years on SRC)
• Jessica Andersen, Partner (5 years on SRC)
For those clients that we assisted with their initial submission to the certificate program, we used various resources. We worked closely with the entity in providing concise feedback in our review of the final statements.

We also use internal Generally Accepted Accounting Principles (GAAP) checklist, GFOA’s Governmental GAAP checklist as well as drawing upon our extensive experience with similar government entities that submit their annual ACFRs.

We review annual comprehensive financial reports (ACFR) each year supplied by GFOA’s SRC and provide all our staff with this valuable experience as well. We know how important maintaining the GFOA Certificate of Achievement for Excellence in Financial Reporting is to the City; we will continue to work with you to maintain this certification.

Thought Leadership
A number of Eide Bailly partners are nationally recognized state and local government thought leaders who present at dozens of national venues throughout the year.

These venues include: GFOA; NASACT; California Society of Municipal Finance Officers; California State Association of County Retirement Systems; California Association of Public Retirement Systems; AGA National Professional Development Conference and multiple AGA chapters across the country; National Association of Housing and Redevelopment Officials (NAHRO); California, Florida, Iowa, Idaho, South Carolina, and Utah Societies of CPAs; and Colorado, Oregon, and Great Plains GFOAs.

We also provide training for state and local agencies, including:
• Commonwealth of Massachusetts • North Dakota State Auditor's Office • Florida GFOA School of Governance • South Dakota State Auditor's Office • Florida GFOA seminars and conferences • State of Montana • Florida State Society of CPAs • State of Nevada
• Idaho State Auditor's Office • State of Tennessee Controllers’ offices • Minnesota State Auditor's Office • Texas AGA
• Mississippi State Auditor's Office • Texas State Auditor • Montana State Auditor's Office and State
Controller's Office
• Virginia Beach IIA Chapter
• North Carolina State Auditor's Office and
State Controller's Office
Stay Current and Learn More
www.eidebailly.com
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Furthermore, an Eide Bailly retired partner was the author for the entire Governmental Library for Commerce Clearinghouse Wolters Kluwer (CCH). This library serves as the interpretative reference on government Generally Accepted Accounting Principles (GAAP), government best practices and government audits for governments, auditors, and educators nationwide.

Online Publications: We publish articles related to hot issues within the government accounting arena. Below is a list of some of the recent articles posted to our website and emailed to our clients:
• CMMC: How Department of Defense Contractors Can Comply with Evolving Cybersecurity Requirements • GASB Advances Key Projects in September 2025 Meetings • 5 Benefits of Hiring a Virtual Chief Information Security Officer (vCISO) • What Governments Need to Know About New Accounting Standards Implementation of New Standards
In an industry where standards continually evolve and change, Eide Bailly makes it a priority to stay current and assist our clients with necessary changes. In addition to helping clients implement new standards, we also help them adapt to changes within the existing standards.

Several of our professionals serve on committees that have direct input into writing new standards. This enables our involvement from the beginning and ability to influence the final outcome. Our clients benefit from our strong understanding of the standards and how they may affect their organization. We will work with the City to create a plan to address new standards one to two years prior to implementation.

Desk Reviews
Pursuant to state-specific code, desk reviews are performed on certain audited financial statements and field reviews of audited financial statements and supporting working papers on a regular basis. In addition, Uniform Guidance and federal grant agreements and contracts may also require the review of financial statements and/or working papers by a federal or state agency. As these reviews are conducted, Eide Bailly cooperates fully with the agency requiring such reviews. We are not aware of any outstanding items as a result of the desk review.

Litigation/Disciplinary Actions
The firm and its partners, as well as our clients, may periodically be the subject of investigations, formal or informal inquiries, or requests for information from a variety of regulatory agencies. It is the policy of the firm not to discuss these matters, or any client-related matters, outside of the firm. It is the firm’s opinion that none of these activities have a material impact to the firm.

No member of the engagement team assigned to the City has been the subject of investigation or action by any law enforcement or regulatory agency in the past three years.

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Peer Review
Our AICPA membership requires a third-party peer review of our audit and accounting practice every three years. Our most recent quality review included several government engagements and received a rating of 'Pass'.

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Partner, Supervisory and Staff Qualifications and Experience Connecting the Right Resources
We’re passionate about our work — and your success. We’ve selected professionals for your service team who are the right fit for your engagement, based on their knowledge and experience in the government industry as well as historical experience with the City.

Nathan Edelman and Ahmad Gharaibeh will serve as the Engagement Partners, with Janice Yu serving as the Audit Manager. These professionals are licensed to practice public accounting and bring strong credentials and a desire to work with the City. If awarded these engagements, these individuals will serve as your primary contacts. Additional resources will support the project team as necessary.

Senior and Staff Associates
Once we determine the timing that works best for you, we’ll assign a senior and staff associates to your engagement. Our seniors are experienced in public accounting, with several who specialize in the government industry. All members of our staff are required to comply with necessary continuing professional education (CPE) requirements, and most members of our staff significantly exceed their required amount.

Team Continuity
To help ensure a strong business relationship and to minimize disruptions, we keep staffing changes to a minimum. Compared to the national average, Eide Bailly experiences a higher retention rate, which translates to providing our clients with consistent service teams. We’ll continue to strive for continuity of staff for your engagement. With this continuity comes quality as team members’ knowledge of your organization grows from year to year.

Team Overview
We know the importance of a strong business relationship, so we keep staffing changes to a minimum year to year. Our high retention rate allows us to provide stability. The following will provide an overview of your team.

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AHMAD GHARAIBEH, CPA
Partner
I truly enjoy helping my clients. The government accounting industry continues to change and I enjoy assisting my clients understand the changes and how to implement them.
650.223.6103 | [email protected]
Ahmad provides audit and accounting services to a variety of organizations focusing primarily on municipalities, including cities, transit agencies, counties, water, sewer and sanitation districts, joint powers authorities, community colleges and other special districts. He has performed the financial and compliance audits of federal awards in accordance with OMB Circular requirements to entities receiving over $1 billion in federal funds.

In addition to audits of government agencies, he provides audit and accounting services to commercial industry entities, including healthcare and manufacturing.

Ahmad provides annual training to firm staff through in-house continuing professional education to ensure consistency and knowledge are not just at the partner level, but also with the entire team providing services to our clients.

He also provides annual audit and accounting updates for many of his government clients and industry groups.

Client Work
Speaks at many of the municipal California Society of Certified Public Accountants (CalCPA) local chapters including Monterey Bay/Santa Cruz, Alameda and the Peninsula local chapter of the California Society of Municipal Finance Officers (CSMFO) and Association of Government Accountants (AGA).

With over 25 years of experience in auditing public agencies, he is the government department head, leads the government audit practice in the Bay Area and serves clients with revenues exceeding $1 billion.

Single audit experience includes audits of programs from the Department of Transportation, Department of Education, Department of Defense, Department of Health and Human Services and a variety of other agencies.

Provides other services to his government clients which includes forensic auditing, internal audit services and consultation on various aspects of accounting for municipal agencies.

Memberships
California Society of Certified
Public Accountants
American Institute of
Certified Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Master of Accountancy - East
Tennessee State University
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NATHAN EDELMAN, CPA
Partner
We're all working for the same goals; if our clients succeed, we succeed. 650.223.6115 | [email protected]
Nathan provides assurance services to some of the largest governmental organizations in the Bay Area. His current practice focuses on serving cities, transportation agencies, municipalities, school districts, and special districts. Nathan's experience includes leading federal single audits for entities that have received more than $1 billion in federal grants, which includes those labeled as "high risk" by federal or state granting agencies.

Nathan is dedicated to supporting the governmental accounting industry in the San Francisco Bay Area. Alongside our industry partners, he has led the design and delivery of highly specialized training materials and presentations on implementing new governmental accounting standards.

In addition to working with clients, Nathan is actively involved in governmental technical committees and conferences, including GFOA, CSMFO, AICPA, and CalCPA.

Client Work
Provides training to firm staff related to the Uniform Guidance Updates.

Advises and assists clients with disclosure and financial reporting requirements pursuant to the Government Finance Officers Association (GFOA) certificate program.

Provides comprehensive evaluation of financial reporting, internal controls and governance when performing audit procedures.

Memberships
American Institute of
Certified Public Accountants
California Society of Certified
Public Accountants
GFOA Annual Comprehensive
Financial Report Special
Review Committee
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Arts, Business
Management Economics -
University of California, Santa
Cruz
Community
California Society of Certified
Public Accountants, Board
Member, Peninsula/Silicon
Valley Chapter
Association of Government
Accountants, Silicon Valley
Chapter
California Society of
Municipal Finance Officers
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JANICE YU, CPA
Manager
I find great fulfillment in helping clients understand the regulatory standards, building a collaborative relationship with clients and supporting them in making informed decisions based on reliable data.
650.223.6164 | [email protected]
Janice has provided accounting and audit services to local governments for over seven years. She specialized in performing audit and assurance services of governmental entities including cities, transit authorities and special districts.

With Janice, you can expect to work with a dedicated and skilled auditor with a proven track record of delivering accurate, transparent and compliant financial assessments. She stays abreast of accounting standards, regulations and Government Accounting Standards Board (GASB) pronouncements. She has the ability to understand your organization, conduct an efficient and accurate audit enabling clients to make informed decisions and address any identified issues promptly. She communicates to clients fostering a collaborative relationship and facilitating a smooth audit process.

Outside of work, Janice enjoys traveling, spending time with her family and friends and exploring different restaurants.

Client Work
Performs financial statement audits, compliance testing and single audits for a variety of industries including cities, transportation agencies and special districts.

Leads the assurance and audit team to conduct audit engagements ensuring the financial statements are accurate, comply with regulations and provide a reliable basis for decision-making.

Deliver timely and accurate financial statements to meet deadlines.

Memberships
American Institute of
Certified Public Accountants
California Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Accountancy -
University of California, Santa
Barbara
Master of Accountancy - San
Jose State University, San
Jose
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Continuing Education
Because we are committed to the industries we serve, we provide our professionals with specific, ongoing training. This investment ensures our people stay current on the unique challenges and opportunities within their industries so they are in the best position to help clients address these issues.

Firmwide, our CPE program requires all professional staff obtain education that exceeds the requirements of the AICPA and where applicable, Government Auditing Standards. The firm places a strong emphasis on lifelong learning and recognizes the importance of developing our professionals to best serve our clients. We continually provide yearly CPE credits for our staff at a rate higher than the industry average. In addition, we regularly share information among the audit teams in different offices to ensure we are providing clients with the latest thinking and best possible solutions.

Our government professionals obtain continuing professional education through the following means:
• Government-specific seminars sponsored by the AICPA and GAQC. • Seminars sponsored by the GFOA.
• Involvement with local chapters of the GFOA (we teach and attend GFOA conferences, regularly). • Eide Bailly seminars specific to government issues which are taught by our experienced managers and partners.

By expanding our knowledge of issues important to government organizations, we are able to provide more indepth, knowledgeable solutions to our clients. Additional communication, webinars and training are provided throughout the year on a variety of topics important to state and local governments.

Team Member Period Dates Government
Credits
Professional
Proficiency
Total Completed
Credits
Ahmad Gharaibeh
1/1/2025 - 12/31/2025 35 11.5 46.5
1/1/2024 - 12/31/2024 18 16 34
1/1/2023 - 12/31/2023 31.5 14.5 46
Nathan Edelman
1/1/2025 - 12/31/2025 19.5 22.5 42
1/1/2024 - 12/31/2024 24.5 33.5 58
1/1/2023 - 12/31/2023 14.5 16.5 31
Janice Yu
1/1/2025 - 12/31/2025 19.4 20.5 39.9
1/1/2024 - 12/31/2024 16.5 36 52.5
1/1/2023 - 12/31/2023 16.5 42.5 59
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Prior Engagements with the City of Campbell
City of Campbell
Contact Norite Vong, Assistant Finance Director
408.866.2112 | [email protected]
Scope
ACFR-GFOA, Single Audit, State Controller’s Financial Transaction Report, State Controller’s Street Report, Gann Limit AUP, Measure O, TDA, West Valley Solid Waste Management Authority (JPA)
Total Hours 450 hours
Date 2020-Present
Partner Ahmad Gharaibeh
Office Location Menlo Park, CA
Similar Engagements with Other Government Entities
Experience You Can Trust
As a top 20 CPA firm, we’ve built our business on relationships and believe our clients to be the best critics of our service.

The clients below have similarities to your organization, and we encourage you to contact them to learn about their Eide Bailly experiences.

City of Livermore
Contact
David Doyle, Accounting Supervisor
925.960.4352 | [email protected]
1052 S Livermore Ave | Livermore, CA 94550
Scope ACFR-GFOA, Livermore-Pleasanton Fire District, Measure B, Measure BB, Measure F, Single Audit, State Controller’s Reports, and Street Report Total Hours 900 hours
Date 2021-Present
Partner Nathan Edelman, Ahmad Gharaibeh, Janice Yu
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City of East Palo Alto
Contact
Tomohito Oku, Finance Director
650.586.8443 | [email protected]
2415 University Ave | East Palo Alto, CA 94303
Scope ACFR-GFOA, Single Audit, State Controller’s Financial Transaction Report, State Controller’s Street Report, Gann Limit AUP
Total Hours 600 hours
Date 2023-Present
Partner Nathan Edelman, Ahmad Gharaibeh
City of Glendale
Contact
Shu-Jun Li, Assistant Director of Finance
818.551.3048 | [email protected]
613 E. Broadway | Glendale, CA 91206
Scope Internal Control Review over Accounts Payable, HR/Payroll, and Information Technology Asset Management (2024-Present); external audit services (2025-Present).

Total Hours 1,050 external audit hours; 400 internal audit hours Date 2024-Present
Partner David Showalter
Town of Hillsborough
Contact
Jan Cooke, Finance Director
650.375.7408| [email protected]
1600 Floribunda Ave | Hillsborough, CA 94010
Scope ACFR-GFOA, State Controller’s Financial Transaction Report, Gann Limit AUP Procedures Total Hours 500 hours
Date 2018-Present
Partner Ahmad Gharaibeh, Nathan Edelman
City of Palmdale
Contact
Janelle Samson, Director of Finance
661.267.5433 | [email protected]
38300 Sierra Highway | Palmdale, CA 93550
Scope
Preparation/audit of the ACFR (GFOA Award), Single Audit, GASB 87/96 implementation services, Housing Authority Audit, Public Financing Authority, Foundation Audit, Civic Authority Audit, GANN Limit AUP
Total Hours 900 hours
Date 1998-Present
Partner Roger Alfaro
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Specific Audit Approach
Audit Methodology
At Eide Bailly, we promise you a better overall experience. Though multiple firms are capable of accomplishing the objectives of an audit, we appreciate that every situation and every organization is different, and our tailored approach is based on the needs of each client.

We value our business relationships and demonstrate this through partner and manager involvement. Our senior-level professionals are involved with our clients and accessible throughout the year. They do not delegate all tasks to staff, but rather stay involved on-site during fieldwork and remain connected throughout the year.

This approach delivers the greatest benefit to our clients because we are able to stay abreast of changes in and updates to our clients’ operating environments and collaborate to achieve optimal results.

Our clients experience a communication approach that stands apart in both style and frequency. Because we recognize effective interaction is critical throughout the entire audit process, our service and communication begins with planning and continues throughout the year. Additionally, we communicate collaboratively with our clients and include them in the process as our peers. Our clients offer a wealth of knowledge and information about their organization, and interacting with them as a business peer ultimately produces the best outcome.

Prior to beginning the engagement, we will discuss with management:
• The engagement timeline.
• The audit approach and process.
• Additional considerations that may affect scope, schedules and workpapers to be prepared by your personnel.

Upon appointment as your auditor, we will discuss the audit schedules and work with you to ensure the timeline meets your needs and makes the most effective use of your staff members’ time.

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Proposed Segmentation of Engagement
Audit Work Plan
Our audit approach is designed for collaboration and optimal results. It consists of five major components:

Planning, Interim Work, Fieldwork, Reporting, and Ongoing Communication. If awarded, we will discuss with management our proposed schedule, but we also have the flexibility to make any changes to meet reporting deadlines. The objectives of each component are:

Planning
• Discuss and finalize the engagement timeline, audit approach, and process. • Discuss risks and concerns of the management and accounting staff, including the City Council, if requested.
• Evaluate the nature of the operating environment (e.g., changes in volume, degree of system and reporting centralization, sensitivity of processed data, impact on critical business processes, potential financial impacts, planning conversions, and economic and regulatory environment). • Review interim financial information and reports to identify significant risks and changes. • Review significant estimate areas and consider underlying assumptions. • Update our understanding of the City, its reporting units and their environments. • Document internal control systems, including IT, and related changes from prior periods. • Consider fraud, risk of noncompliance, illegal acts, abuse, etc. • Assess audit risk and identify potential audit issues. • Assess materiality and testing scopes, to the extent possible, and present audit plan. • Prepare and communicate audit request lists and workpapers. • Develop expectations regarding timing and audit progress. • Gain understanding of single audit programs and perform an analysis of potential major federal programs.

Interim Work: Single Audit
Phase I: Risk Assessment and Planning
This phase encompasses the planning and risk assessment of your federal programs. The planning phase sets the tone as well as set the stage for an efficient and effective single audit. We’ll work closely with management to properly identify federal programs and clusters to determine the major programs to be tested. The steps include:
• Determine grant awards and funding increments.
• Determine the Type A and Type B thresholds.
• Perform a review of the past two single audits and document the program risk to determine risk, for any programs above the threshold (Type A).
• Make final determination of major programs to be tested. • Review applicable Uniform Guidance Compliance Supplement for any unusual items and determine direct and material compliance areas for each major program.

Planning Interim Work Fieldwork Reporting Ongoing
Communication
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Phase II: Major Program Testing
After making the major program determination, we will test the major programs through the following steps:
• Obtain audit steps from the Compliance Supplement.
• Obtain the process and controls related to the direct and material compliance areas identified during planning. The controls for each area need to address the five components of Committee of Sponsoring Organizations of the Treadway Commission (COSO) as required by Uniform Guidance. • Select samples for control and compliance testing.
• Perform control testing for effectiveness and compliance testing of selected transactions. • Report material weaknesses or material noncompliance to management. • Hold periodic status meetings and discuss potential findings with management while our auditors are in the field.

Phase III: Assessment and Reporting
The above steps are based on the preliminary Schedule of Expenditures of Federal Awards (SEFA). Once the SEFA has been finalized, we will determine if any additional major programs are to be tested. We will:
• Perform major program testing steps for any newly identified programs. • Review prior findings, if any, and determine if findings were cleared by management and do not need to be reported during the current year.
• Prepare the Schedule of Findings and Questioned Costs. • Hold an exit conference with management and key grant personnel and provide a draft report of the single audit and any Yellow Book findings required to be reported. Findings are reviewed by the Manager and Engagement Partner prior to the exit conference.

Interim Work: Financial Statement
• Communicate with management to determine internal controls, perform walk-throughs and to discuss any potential audit issues.
• Determine audit procedures by area, based on results of planning and risk assessment. • Determine confirmation needs.
• Prepare listing of audit information requested from the City. • Review minutes, resolutions, and ordinances.
• Perform tests of legal compliance.
• Provide weekly updates to City staff.
• Hold exit conference with management.

Final Fieldwork
• Audit areas based on risk assessment.
• Obtain and prepare schedules and analyses supporting the financial information. • Discuss findings with management, if any.
• Discuss proposed journal entries with management, if any. • Finalize single audit testing.
• Provide weekly updates to City staff.
• Hold exit conference with management.

Reporting
• Review of financial statements by the Engagement Partner. • Review of financial statements by the Technical Review Partner to obtain a second opinion on the completeness and adequacy of financial statement disclosures and audit procedures.

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• Complete management letters and review with management. • Prepare other communications to management and the City Council. • Assist with preparation of the Data Collection Form and the reporting package for submission to the Federal Audit Clearinghouse.
• Present to the City Council at its regularly scheduled meeting, if requested.

Ongoing Communication
• Obtain interim financial statements throughout the year for review. • Analyze significant changes and identify areas to further tailor our audit plans and keep us up to date with continuing changes.
• Compare interim results to year-end results for the past few years to identify potential issues in the financial reporting process.
• Participate periodically at your City Council meetings, and any other meetings, upon request.

We take a “no surprises” approach to our engagements. We work closely with management and accounting personnel throughout the audit process, hold weekly meetings to review open items, discuss potential accounting or compliance issues, and provide periodic written or oral reports on the status of the audit to representatives of the City. At the end of fieldwork, we will hold an exit conference with management to discuss any potential findings and come to a conclusion. We strive not to have additional findings subsequent to the exit conference.

Audit Schedule
Eide Bailly commits to you that if your team is prepared for the audit when our team is in the field, we will meet your deadlines. We will work closely with your team through the planning stages to clearly define expectations and the items required from your team in order to facilitate an efficient audit to enable us to meet your deadline. The following table identifies the structure of our audit for the City reports and the timing of each section:

Activity Timing
Planning June
Interim Work June
Fieldwork October
Reporting December
Ongoing Communication Throughout the Year
By engaging in thorough audit planning and communications with management, we begin each engagement with a strong understanding of the various deadlines for each of the financial and single audits and the steps involved along the way to meet these deadlines. An audit project plan will be developed between our team and the City and then followed closely, and we will work with the City’s management team to customize our auditing services and specific timelines to your needs. We believe in clear, up-front, and open communication with no surprises.

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Level of Staffing and Number of Hours
Below is our proposed level of staffing and estimated hours for each segment of the audit.

Activity Partner Manager Senior Staff Other Total
Planning 5 10 -- --
-- 15
Interim Work 15 30 40 80 -- 165
Fieldwork 25 44 70 100 -- 239
Exit Conference 1 1 -- --
-- 2
Final Report 4 15 -- -- 10 29
Total 50 100 110 180 10 450
Statistical Sampling
Sampling may be performed for tests of controls, compliance testing and substantive tests of certain accounts and transactions. During our basic financial statement audit, we will also select various transactions for testing based on materiality assessed at the appropriate level. These transactions may include such items as capital asset additions, expenditures, subsequent disbursements and subsequent receipts. We will be pleased to discuss specific sample sizes and selection methods when they are determined, either during planning or fieldwork.

We will select the appropriate sample size to support our conclusions in compliance with laws and regulations.

We will use confirmations in areas deemed necessary such as cash and investments, and receivables.

Use of Management Information Systems
Eide Bailly staff utilizes progressive and effective software to streamline processes and make them as efficient as possible. These technologies include:

EB Bridge
Our client portal, EB Bridge, is designed to strengthen the relationship between Eide Bailly and our clients, facilitating collaboration and connection between our clients and employees. EB Bridge enables clients to engage effectively throughout their interactions with improved processes, better document management, and a more efficient annual client access review.

Suralink
Suralink is an interactive Provided by Client (PBC) software solution which improves the client experience for document exchange. This addition to our suite of tools saves a substantial amount of time managing PBC documents, creating increased efficiencies during your engagement.

Data Extraction Software
TeamMate Analytics: Eide Bailly designs our approach to incorporate the use of TeamMate Analytics to maximize efficiency while conducting a very effective audit. Through TeamMate Analytics, we can extract information from related databases and create databases that check for duplicate payments, summarize payments, extract journal entries from specific accounts, develop expectations for analytical procedures, and recalculate system calculations, among a host of other procedures developed by our audit team.

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DataSnipper: Eide Bailly's audit approach is enhanced by the use of DataSnipper, a powerful Excel add-in that improves efficiency and fosters effective auditing practices. This innovative tool allows us to leverage artificial intelligence (AI) for automated document matching. With configurable templates for standardized audit procedures, DataSnipper streamlines workpaper preparation and review while enhancing collaboration within our audit practice.

CCH ProSystem fx Engagement by Wolters Kluwer
This software is used to perform the audit, retains the electronic workpapers and supporting documentation, performs project tracking and facilitates quality engagement review.

Artificial Intelligence (AI)
Eide Bailly’s approved AI tools are Microsoft CoPilot and Ask Blue J. Microsoft CoPilot is available to be used throughout the organization to securely automate and enhance processes. Ask Blue J is available for use in our tax practice to research and analyze complex tax matters.

Our approved AI solutions are supported by a rigorous commitment to security, privacy, and compliance. All client data remains within our secure U.S. based environments and is never used to train external models. We leverage trusted platforms and enterprise-grade controls to ensure data protection, transparency, and traceability at every stage.

Flexibility to Meet Your Needs
Eide Bailly performs all engagements in a paperless environment. As a technology-driven firm, we’ve seen no issues in performing audit procedures off-site from our clients. We utilize tools, such as using Microsoft Teams, which allows us to communicate with our clients face to face, while sharing screens, to make the process as seamless as possible. We host webinars to educate our clients on changing circumstances and how to successfully navigate those changes. We have no concerns completing this audit remotely should the City desire it. We’ll discuss with management which approach, remote versus on-site, works best for you.

Analytical Procedures
Analytical procedures will be applied throughout general planning to improve our understanding of your operations and to identify audit areas for increased attention. These will assist in planning the nature, timing and extent of other procedures, and will be applied to all balance sheet, revenue/receipt and expense/expenditure areas. Procedures include the comparison of current year to prior year and budget amounts. Areas that show results different from those anticipated or planned will be further investigated to determine the validity of the variance.

During Year-end Fieldwork: Analytical procedures are used to test whether errors affecting account balances or classes of transactions have occurred by comparing the recorded amount with an independently developed expectation of that amount. The expectation is developed in such a way that a significant difference between the expectation and the recorded amount is indicative of a financial statement misstatement, unless we can obtain and corroborate explanations for the difference. Analytical procedures are a natural extension of our understanding of your business because the key factors that influence your business may be expected to affect the financial data.

During Reporting: Our last step is to perform a final analytical review at the financial statement level to ensure we comprehensively understand the financial statements during the audit engagement and to determine whether the financial statements are appropriately presented and contain appropriate disclosures. Such final analytical procedures highlight and explain significant changes from the previous year and ensure such changes are consistent with the knowledge of your business and our audit evidence.

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These procedures typically consider trends based on several previous years, instead of comparison only with the prior period.

Internal Control Structure
A significant aspect of the planning process involves understanding each reporting unit’s internal control environment, including IT controls and, where relevant, testing of internal controls. The following is a summary of our process regarding internal controls over financial reporting and compliance:

Internal Controls over Financial Reporting
Our approach will start with any documentation related to internal controls already developed. We review that documentation to obtain an overview of the internal control system and then conduct interviews with your staff to complete the documentation of our understanding related to internal controls and significant changes each year.

After conducting the interviews, we will evaluate the internal control system design and expected operating effectiveness for significant areas depending on the reporting unit. By completing control testing in these areas, we expect to reduce substantive testing to conduct an efficient audit. Our approach will be focused on key process controls or overall system controls, rather than detailed control processes. We will also focus on key IT related controls in areas such as revenue, payroll and claims, for more efficiency from an audit perspective relative to the control process.

Our risk-based approach incorporates control testing and substantive tests of balances, where appropriate. In certain areas that are not as significant, we will conduct the audit using a primarily substantive approach. Our experience is that substantively auditing a balance rather than completing an extensive control test is often more efficient and effective.

Internal Controls over Compliance
Our approach for internal controls over compliance associated with federal programs is similar to the approach regarding internal controls over financial reporting related to accumulation, documentation and evaluation of the control environment.

Test of controls over compliance are required for major federal programs. Our approach identifies key controls applicable to direct and material compliance requirements for testing, as well as incorporating results from tests of internal controls over financial reporting and IT.

The approach to understand your internal controls includes:
• Interview City personnel.
• Review organizational charts, accounting and procedure manuals and programs. • Complete internal control questionnaires.
• Write up system narratives.
• Evaluate items selected for testing.
• Review controls over financial information systems.

The timely completion of this work allows us to perform our work efficiently and promptly communicate any potential recommendations.

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In addition, our engagement approach is based on:
• Observations we believe will help achieve objectives. We are pleased to respond to inquiries about financial or other business matters.
• The assistance to be provided by your personnel, including preparation of schedules and analyses of accounts, will be discussed with the finance department. Timely completion of this work will assist us in performing our work efficiently.

Determining Laws and Regulations Subject to Audit Test Work During the planning process, we will also discuss with management and personnel the laws and regulations to which the City is subject. The objective will be to determine those laws and regulations that could have a material impact on the financial statements or are pertinent to your federal financial assistance programs. Our knowledge of such laws and regulations and Government Auditing Standards will be essential to the discussion.

We are aware of the applicable requirements and consider them when determining the necessary audit procedures.

During our audit procedures, we will:
• Perform tests of compliance with certain provisions of laws, regulations, contracts and grants. • Assess the risk of material misstatement resulting from violations of laws and regulations having a direct and material effect on the determination of financial statement amounts. These laws and regulations can relate to items such as budgetary compliance, purchasing compliance and cash and investment compliance, as well as single audit compliance, as applicable. • Combine compliance tests of laws and regulations involving the inspection of documentation supporting transactions with substantive tests of transactions and tests of control procedures.

Our audit will meet all applicable federal and state requirements. Samples will be used to the extent necessary to support our conclusions on compliance with laws and regulations.

Drawing Audit Samples
We design our audit procedures for compliance using sampling procedures to result in sample items being selected on a random basis. To accomplish this, we utilize our data extraction software, TeamMate Analytics, to ensure our selections meet the established criteria while maintaining the random selection. We also use samples across different audit areas to be as efficient as possible while testing the necessary items to get comfortable with the applicable balances. We will select the appropriate sample size to support our conclusions in compliance with laws and regulations. We will use confirmations in the areas of cash and investments, receivables and other areas deemed necessary.

Identification of Potential Audit Problems
Eide Bailly understands the potential for problems that may arise while conducting our audit and we are prepared to address any issues with you as they arise. We’re committed to making our relationships work and do what it takes to make our clients feel comfortable even if it means late-night conference calls.

We will also work our schedule so when we finish scheduled fieldwork, we will be 95% done with the audit and any wrap-up will be related to report issues. We believe we have a system in place that, combined with the experience we have gained, will translate to meeting your reporting deadlines with a smooth and efficient audit.

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As noted above, our service model does not view the audit process as an annual “event.” Instead, we communicate with management on an ongoing basis and keep you apprised of accounting pronouncements, changes in regulations and other changes that may impact the City.

Our communication with management will include the following:
• Personal interaction between the team serving the City and management in the form of meetings, phone calls and emails. We like to be involved with clients throughout the year to help address ongoing issues that impact your operations, and schedule quarterly calls to stay in touch.

Our preferred communication is through face-to-face meetings, or at least phone conversations. We value your time and attempt to keep meetings relevant, appropriate and productive. • Status updates as audits progress with appropriate members of management through oral and written communications.
• Ongoing communication of important regulatory changes and accounting updates occurs via email, shortly after the changes are announced or finalized.
• Occasional webinars and seminars on topics of critical interest to our government clients.

Under this approach, we will discuss specific preferences you have in communicating with us including frequency and style.

As we get to know your organization, our process will become increasingly customized to the City, yet it will still follow the framework we have put together as guidelines our staff are expected to embrace as part of our service culture.

Most audits have issues that arise from time to time; however, we will resolve these issues through frequent communications with you, and by helping you with implementation issues, adjusting journal entries or communications with GASB staff.

We're experienced in transitioning many clients from predecessor professional service providers. In each case, we worked closely with client personnel and accomplished the transition with minimal disruption of client activities. We further minimize the disruption to the City by staffing our first-year engagement with higher level resources, including managers and partners in detailed level work to assist with the set-up of documentation.

Assistance from Your Staff
Your service team will meet with the City’s management for initial planning and a pre-audit conference to discuss audit schedules and review prior year problems (if any). We'll then provide the City personnel a Prepared by Client Guide (PBC), which highlights the work papers and information needed for the engagement process.

We'll hold meetings with the accounting personnel throughout the audit process determining the list of open items and the plan to finalize those items.

During the engagement, our use of the City personnel will include answering questions, updating schedules, addressing issues identified, and obtaining support documentation. Our processes focus on performing the engagement efficiently, which includes constant communication amongst the team members so we're not asking redundant questions or requesting the same document several times. We also hold weekly meetings with management to determine the audit status and any outstanding items to be addressed. This keeps the number of hours needed by the City personnel to a minimum.

We ask our clients to have the requested schedules, documentation, confirmations, and financial statements prepared by the requested dates. Having these items prepared before we arrive for final fieldwork ensures the success of meeting the mutually agreed upon deadlines.

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Multi-Year Approach
We attempt to retain the majority of the audit team in order to develop a historical perspective of the operating and control environment of the City. This allows us a deeper understanding of the risks surrounding the City and the ability to perform a thorough audit without a learning curve. Our preliminary review results in a planned calendar of audit events, timing and expectations based on the budgets and related materials, organizational charts, manuals and programs, and financial and other management information systems.

We also have the resources to change your engagement team while retaining the organizational insight we gain over the years, if you think you would benefit from auditor rotation. Eide Bailly’s government professionals have extensive experience in the industry and an important advantage from the firm’s focus on continuing education.

These individuals are well positioned in organizations associated with government entities, such as the AICPA and GAQC, the primary purpose of which is to promote the importance of quality government audits, and have held leadership roles in the GFOA.

We will be available throughout the year as a valuable resource to answer questions, have discussions and confirm the appropriate accounting treatment for unique or infrequent transactions.

Maintaining Positive Relationships
Our number one goal is to meet the City’s expectations while providing the necessary required audit services.

We work with our teams to provide the best client service and select team members based on that goal.

However, there are times we may not meet that expectation or fall short in meeting client satisfaction. When those times occur, we admit our shortcomings and meet with management to determine on an agreed upon plan to improve those areas.

As the engagement partners, Nathan Edelman and Ahmad Gharaibeh are responsible for monitoring the City’s satisfaction of our services and will meet with management during the year to evaluate the overall satisfaction and make any necessary adjustments.

Our clients know and respect us for our positive culture — we’re also proud to be ranked in the 2025 Vault Top 25 Accounting Firms list for client interaction. Negative comments are relatively infrequent. Over the past three years, Eide Bailly’s Net Promoter Score (NPS) has maintained at or been near 70. For context, the professional survey firm ClearlyRated reports an average NPS of 38 for the accounting industry. While we know our score reflects a high level of satisfaction, we're committed to consistent and regular improvements to drive continual improvements for our client base.

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The Right Choice for the City of Campbell
Our longstanding relationship with the City has allowed us to build efficiencies into the audit process to enable an efficient and effective audit process. We will continue to leverage this historical knowledge to provide value to the City beyond our assurance engagement.

We understand and recognize the careful
consideration that the City must undertake when
determining whether to continue with Eide Bailly as
your current accounting firm or transition to a new
firm. Other firms responding to your proposal request
will highlight their abilities to create a smooth
transition; however, the reality is that a transition will cause some inconvenience to the City’s management
and staff. Sometimes circumstances exist that may
ultimately drive your decision to switch firms, but we
hope to highlight all the reasons not to.

The following are some of the many reasons why we
think our relationship with the City continues to be the best fit:
• Partner rotation requirements allow us to
provide a fresh, objective view of the audit
without causing additional disruption by
replacing the entire audit team or approach.
• Our extensive experience in the higher
education industry extends firmwide and
continues to provide additional resources at
the City’s disposal.
• Inquiries from management regarding
technical issues, including phone calls
throughout the year, are not billed separately and reflect our commitment to serve you beyond traditional offerings.

Our philosophy is to be proactive in our conversations with management, rather than identify potential issues during the audit engagement.
• Our willingness to be a trusted advisor extends beyond management, as demonstrated by recommendations and discussions on numerous occasions.

Advantages of Working with Us
Depth of Resources
We have the ability to rotate partners to
provide a fresh, objective view.

Additional Offerings
Extensive experience extends firmwide and
continues to provide additional resources at
your disposal.

Senior-Level Involvement
Partners and managers are extensively involved
throughout the audit process.

Proactive Communication
We’re responsive and direct, and we’ll continue
to present information relevant to decisionmaking.

A Trusted Advisor
We strive to be your trusted advisor, making
recommendations and identifying mutually
beneficial business opportunities.

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• We have demonstrated our responsiveness in returning email communications and phone calls so that you receive answers to inquiries on a timely basis.
• We have addressed difficult conversations with management and are direct in our communications. • We continue to present management and the audit committee with important information that is relevant to decision making.
• Our partners and managers spend extensive time in the field, so any issues identified are resolved in the field and not at the conclusion of the audit.

Eide Bailly has made a commitment to provide you with a level of service and attention that surpasses our competitors, and more importantly, makes you feel as valued as you are.

Exceeding Expectations and Achieving Goals
For us, work goes beyond mere tasks; we view it as an opportunity to assist you in addressing challenges, reaching objectives, and following your passions. After carefully assessing your requirements and investing time in understanding the City, we believe we’re an ideal fit for this opportunity.

We’re committed to being responsive, reliable advisors and would be glad to answer any questions as you evaluate next steps. We want to make sure you have everything you need to make your decision.

Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathaniel Edelman, CPA
Partner
650.223.6115
[email protected]
We Want to Work with You
Our goal objective is simple: to help you move forward with confidence. Whether it's protecting what you've built, improving performance, or uncovering new ways to grow, Eide Bailly is here to offer thoughtful support and practical solutions. We look forward to working with you.

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Requested Contract Exceptions
We have suggested modifications to the sample contract to conform with firm policies and professional standards, but we are happy to talk about concerns and finalize language that works for both parties.

Request for Proposals (RFP) Financial Auditing Services RFP, Section 10.B.C Firm Qualifications and Experience
In addition, the Proposer shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm during the past three (3) years with State regulatory bodies or professional organizations.

Comments: The firm and its partners, as well as our clients, may periodically be the subject of investigations, formal or informal inquiries, or requests for information from a variety of regulatory agencies. It is the policy of the firm not to discuss these matters, or any client-related matters, outside of the firm. It is the firm’s opinion that none of these activities have a material impact to the firm.

RFP, Section 10.B.D Partner, Supervisory and Staff Qualifications and Experience Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express written permission of the City. However, in either case, the City retains the right to approve or reject replacements, which shall not unreasonably be withheld or delayed.

Comments: The firm must retain at least some control over the personnel appropriate for the engagement.

Client ability to remove or approve auditor personnel constitutes potential undue influence threat to auditor independence under AICPA Code of Conduct Rule 1.000.010.16.

Consultant Services Agreement
Comments: We have suggested some modifications to the agreement, but we are happy to talk about concerns and finalize language that works for both parties. Additionally, there are some terms that are not included that we consider important to us and standard in our line of work, such as limitation of liability and dispute resolution that we will want to address. We will also expect the City to sign our Statement of Work.

We would like to discuss any prosed modifications and come to agreement on commercially reasonable terms.

Agreement, Section 1.8 Duties of Consultant
Intentionally omitted. In the course of the performance of this Agreement, Consultant shall act in the City’s best interest as it relates to the project.

Comments: A “best interest” standard is appropriate for other professional services, but frustrates the purpose of the audit.

Agreement, Section 1.12 Duties of Consultant
This Agreement contains provisions that permit mutually acceptable changes in the scope, character or complexity of the work if such changes become desirable or necessary as the work progresses. Adjustments to the basis of payment and to the time for performance of the work, if any, shall be established by a written contract amendment (approved and executed by the partiesCity) to accommodate the changes in work.

Comments: The firm must maintain the ability to negotiate contractual terms, if needed.

Agreement, Section 2.3 Duties of City
City shall review documents submitted by Consultant and shall render decisions responses pertaining thereto as promptly as reasonably possible.

Comments: Language modified to reflect the nature of professional services, where deliverables are based on independent professional judgment and cannot be rejected simply due to disagreement with conclusions.

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Agreement, Section 4.4 Subconsultants
If at any time, the City reasonably and in good faith determines any subcontractor is incompetent or unqualified, Consultant will be notified and will be expected to immediately cancel the subcontract.

Comments: Client ability to remove or approve auditor engagement team members constitutes potential undue influence threat to auditor independence under AICPA Code of Conduct Rule 1.000.010.16.

Agreement, Section 5. Ownership of Documents and Materials All original drawings, documents, papers, data, materials, photographs, negatives and other work products specifically prepared by the Consultant and/or its subconsultants and required to be delivered to the City in the performance of the services encompassed in this Agreement (whether in printed or electronic format) (“project-related documents and materials”) shall be the property of the City upon payment in full and may be used on this project without the consent of the Consultant or its subcontractors.1 City acknowledges that such drawings, documents, and other items are instruments of professional services intended for use only on the subject project. Consultant agrees that all copyrights which arise from creation of the Project-related documents and materials pursuant to this Agreement shall be vested in the City and waives and relinquishes all claims to copyright or other intellectual property rights in favor of the City. Any project-related documents and materials related to this Agreement shall be confidential, not to be used by the Consultant on other projects or disclosed to any third party, except by agreement in writing by the City, except as required by law, except as required by applicable professional standards, or except as otherwise provided herein.2 Upon the completion or termination of this Agreement for any reason, the City shall be entitled to receive, and Consultant shall promptly provide to the City upon request, all finished and unfinished project-related documents and materials, produced or gathered by or on behalf of Consultant that are in Consultant’s possession, custody or control. Consultant may retain copies of said documents and materials for its files. In the event of termination, any dispute regarding compensation or damages shall not hinder, prevent, or otherwise impact the City’s right to promptly receive and use such documents and materials which are the sole and exclusive property of the City.3
Comments: 1 This language suggests that all of the firm’s work papers will become the client’s property. An auditor must protect the privacy of its audit strategy, such as materiality calculations and testing thresholds.

In addition, there are unnecessary risks and unintended consequences for the firm and client if work papers are subject to state or federal open records laws. Lastly, the firm is a provider of professional services and must retain the ability to perform similar services for future clients. In lieu of complete transfer of all ownership rights associated with all work performed under the agreement, firm is glad to transfer ownership rights in contract deliverables. It is better for the firm and client that methods, tools, know-how, templates, workpapers, and the like remain the firm’s property. 2 Some disclosures are required by law (e.g., subpoena) or professional standards (e.g., mandatory peer review, where the reviewers are held to the same level of confidentiality as the firm providing the services to the client). 3 The City owns the document for which it has paid.

Agreement, Section 6.1 Termination
Notwithstanding any other provision of this Agreement, City may terminate this Agreement at any time, with or without cause, in its sole discretion, by giving notice in writing to Consultant not less than <# OF DAYS> calendar days prior to an effective termination date. In the event of such termination, Consultant shall have the right and obligation to immediately assemble the work then in progress for the purpose of completing the work and turning over all materials and documents which would have been required to be delivered to City had the contract not been terminated.

Comments: Language added to align deliverables due after termination with Section 5.

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Agreement, Section 6.2 Termination
In the event of such termination, Consultant shall be compensated for all work and services performed to the point of termination in accordance with the payment provisions set forth in Section 3.1, unless the termination is for cause, in which event Consultant need be compensated only to the extent required by law.

Comments: Compensation contingent on whether the City asserts “cause” creates an unworkable undue influence threat to auditor independence under AICPA Code of Conduct Rule 1.000.010.16.

Agreement, Section 6.3 Termination
Upon notice of termination by City, the Consultant will immediately act to not incur any additional obligations, costs or expenses, except as may be reasonably necessary to terminate its activities. All finished or unfinished work or documents procured or produced under the Agreement which would have been required to be delivered to City had the contract not been terminated will become property of the City upon payment in full the termination date.
1 In the event of Consultant’s failure to perform pursuant to the Agreement, the City reserves the right to obtain services elsewhere and seek to hold Consultant will be liable for the difference between the prices set forth in the terminated Agreement and the actual cost to the City.2 Termination of the Agreement pursuant to this paragraph shall not relieve the Consultant of any liability to City for additional costs, expenses, or damages sustained by City due to failure of the Consultant to perform pursuant to the Agreement. City may withhold any payments to Consultant for the purpose of set off until such time as the exact amount of damages due City from Consultant is determined.3 After the effective date of termination, Consultant will have no further claims against the City under the Agreement. No other compensation will be payable for anticipated profit on unperformed services.

Consultant may terminate this Agreement annually after the provision of the deliverable, with sixty (60) days written notice.4
Comments: 1 This language suggests that all of the firm’s work papers will become the client’s property. An auditor must protect the privacy of its audit strategy, such as materiality calculations and testing thresholds.

In addition, there are unnecessary risks and unintended consequences for the firm and client if work papers are subject to state or federal open records laws. Lastly, the firm is a provider of professional services and must retain the ability to perform similar services for future clients. In lieu of complete transfer of all ownership rights associated with all work performed under the agreement, firm is glad to transfer ownership rights in contract deliverables. It is better for the firm and client that methods, tools, know-how, templates, workpapers, and the like remain the firm’s property. 2 Entitlement to relief is not a foregone conclusion. 3 Withholding of payment due for work performed is an adverse interest threat to auditor independence. 4 The firm should maintain some termination right to accommodate changing needs of the parties and to protect auditor independence.

Agreement, Section 9.1 Insurance and Indemnification
With respect to all matters other than those covered by the foregoing paragraph, Consultant agrees to indemnify, defend (with counsel reasonably satisfactory to the City) and hold harmless the City,1its officers, officials, directors, agents representatives, volunteers, and employees to the fullest extent allowed by law from and against any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including attorneys’ fees and costs (collectively, “Losses”) including but not limited to all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, caused by or arising out of, or alleged to have been caused by or arise out of, in whole or in part, Consultant’s performance under this Agreement, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by the sole negligence or willful misconduct of City.

City shall not be liable for acts of Consultant in performing services described herein.2 Comments: 1 The firm cannot assume the duty to defend a client for claims arising from the firm’s actual or alleged errors and omissions in the performance of professional services. The firm’s professional liability policies are indemnity policies only. They do not provide a defense to the firm or its clients. Assuming a duty to defend places professional liability coverage at risk (problematic for both the firm and the client) and puts firm Item 7.4
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in position where any defense obligation is borne solely by firm and its partners. Further, assuming a defense has the potential to violate AICPA Conduct Rule 1.228.020. Under that rule, an auditor cannot indemnify an “attest client for damages, losses, or costs arising from lawsuits, claims, or settlements that relate, directly or indirectly, to the attest client’s acts.” Finally, to the extent auditor and client disagree about who is responsible for an alleged loss, assumption of a defense may create an adverse interest threat to auditor independence. If there is a disagreement between the firm and our client, we could not be represented by the same attorneys, nor could we assume the legal fees for a client to bring an action against us. 2 Use of the word “sole” suggests that the firm is required to indemnify where indemnitees are partially responsible for the loss. This is prohibited by AICPA Conduct Rule 1.228.020. Under that rule, an auditor cannot indemnify an “attest client for damages, losses, or costs arising from lawsuits, claims, or settlements that relate, directly or indirectly, to the attest client’s acts.”
Agreement, Section 9.2.B Minimum Scope of Insurance

2. For Automotive Liability: ISO CA 00 01 06 92 including symbol 8 (hired autos only) and 9 (non-owned autos only)1(any auto); and
Comments: Consultant does not own any autos and therefore does not have “Any Auto” coverage (symbol 1).

Agreement, Section 9.2.D Deductible and Self-Insured Retention Any deductibles or self-insured retention must be declared to and approved by the City, and shall not reduce the limits of liability. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retention as respects the City, its agents, officers, attorneys, employees, officials and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses related to investigations, claim administration, and defense expenses. Policies containing any self-insured retention provision shall provide or be endorsed to provide that the self-insured retention may be satisfied by either the named insured or the City.

Comments: The amount of the firm’s self-insured retention (SIR) is the firm’s confidential business information that, as a matter of longstanding firm policy, is not disclosed outside the firm. In lieu of disclosure, the firm would be glad to provide a letter from its insurers stating (in effect) that the amount of the firm’s SIR is reasonable and appropriate given factors such as the applicable market and the firm’s financial resources to pay for same.

Agreement, Section 9.2.E Other Insurance Provisions
All Coverages except Professional Liability: Any unintentional failure to comply with reporting provisions of the policies shall not affect coverage provided to the City; and unless otherwise approved by the City, each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days prior written notice by regular mail has been given to the City, or ten (10) days for cancellation for non- payment of premium.

Comments: Since this coverage provides no coverage directly to our client, the insurer/policy will not provide notice of cancellation to any other third parties such as clients. Consultant can provide this notice to our clients.

Agreement, Section 9.2.H Acceptability of Insurers
Without limiting Consultant's indemnification provided hereunder, the policies of insurance listed in Article

9.2 of this Agreement are to be issued by an issuer with a current A.M. Best Rating of A:V and who is authorized or otherwise legally allowed to transact business in the State of California, unless otherwise approved by the City.

Comments: Consultant’s insurance is issued on a surplus lines basis.

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Agreement, Section 10.10 Miscellaneous
Consultant shall perform the work and services under this Agreement in good faith and consistent with applicable law and professional standardsowes the City a duty of undivided loyalty in performing the work and services under this Agreement, including, but not limited to, the obligation to refrain from having economic interests and/or participating in activities that conflict with the City’s interests in respect to the work and/or services and project…
Comments:A “duty of undivided loyalty” is problematic for auditors, who must maintain independence, not loyalty to the client.

Agreement, Section 10.11 Miscellaneous
…Consultant further agrees that it shall defend, indemnify and hold City harmless against any claim, action or litigation (including but not limited to all judgments, costs, and attorney’s fees) that may result from denial by City of a CPRA request for information arising from any representation, or any action (or inaction), by the Consultant.

Comments: The firm cannot assume the duty to defend a client for claims arising from the firm’s actual or alleged errors and omissions in the performance of professional services. The firm’s professional liability policies are indemnity policies only. They do not provide a defense to the firm or its clients. Assuming a duty to defend places professional liability coverage at risk (problematic for both the firm and the client) and puts firm in position where any defense obligation is borne solely by firm and its partners. Further, assuming a defense has the potential to violate AICPA Conduct Rule 1.228.020. Under that rule, an auditor cannot indemnify an “attest client for damages, losses, or costs arising from lawsuits, claims, or settlements that relate, directly or indirectly, to the attest client’s acts.” Finally, to the extent auditor and client disagree about who is responsible for an alleged loss, assumption of a defense may create an adverse interest threat to auditor independence. If there is a disagreement between the firm and our client, we could not be represented by the same attorneys, nor could we assume the legal fees for a client to bring an action against us.

Agreement, Section 10.12 Miscellaneous
…In the event either party is prevented or delayed in the performance of its respective obligation by reason of such Force Majeure, there may be an equitable adjustment of the schedule and Consultant compensation based on City’s sole discretion.

Comments: Language modified to align with time and materials billing and to avoid creation of an undue influence threat to auditor independence under AICPA Code of Conduct Rule 1.000.010.16.

Agreement, Section 10.15 Miscellaneous
Intentionally omitted. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

Comments: The legal standard is that a contract is interpreted against the drafter. We will consider this subject to agreement on all other terms.

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January 8, 2026
Cost Proposal for Financial Auditing Services
City of Campbell
Submitted By:

Name of Firm Eide Bailly LLP
Certification: As partners of Eide Bailly, Ahmad Gharaibeh and Nathan Edelman are entitled to represent the firm, empowered to submit this bid and authorized to sign a contract with the City.

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XIII.ATTACHMENT A - Audit Cost Proposal Form
Service FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 #1 City Audit and #4
Related Reports
$53,450 $54,786 $56,156 $57,560 $58,999
#2 Single Audit and
Related Reports
$2,000 $2,050 $2,101 $2,154 $2,207
#3 Gann Limit
Review Report
$1,500 $1,538 $1,576 $1,615 $1,656
#5 Measure O Audit
Report
$1,550 $ N/A $ N/A $ N/A $ N/A
#6 West Valley Solid
Waste Management
Authority (JPA)
$9,000 $9,225 $9,456 $9,692 $9,935
#7 TDA Article 3
Audit
$1,500 $1,538 $1,576 $1,615 $1,656
#8 BSCC ORT Grant $ N/A $1,500 $ N/A $ N/A $ N/A
Out of Pocket
Expenses
-Meals and Lodging
-Transportation
-Other
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Total for Fiscal Year
(not-to-exceed)
Without Optional
Items
$69,000 $70,637 $70,865 $72,637 $74,453
Optional Items
#5 Measure O Annual
Report (future years) $ N/A $ 1,589 $ 1,629 $ 1,670 $ 1,712 #9 FTR $ 3,000 $ 3,075 $ 3,152 $ 3,231 $ 3,312
#10 Street Report $ 1,500 $ 1,538 $ 1,576 $ 1,615 $ 1,655 #11 GASB 68/75 $ 1,000 $ 1,025 $ 1,051 $ 1,077 $ 1,104
Total for Fiscal Year
(not-to-exceed)
With Optional Items
$74,500 $77,864 $78,273 $80,230 $82,236
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XIV. ATTACHMENT B - Estimate of Cost
Name of Firm: Eide Bailly LLP
Address: 4040 Campbell Ave. Ste 200 | Menlo Park, CA 94025 Contact Name: Ahmad Gharaibeh, Partner
Contact Phone #: 650.223.6103
Contact Fax #: 650.645.7393
Contact E-mail: [email protected]
Auditor’s Standard Billing Rates
Position FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 Partner $ 300 $ 308 $ 316 $ 324 $ 332
Manager $ 180 $ 185 $ 190 $ 195 $ 200
Senior Auditor $ 130 $ 133 $ 136 $ 139 $ 142
Staff Auditor $ 100 $ 103 $ 106 $ 109 $ 112
Clerical $ 75 $ 77 $ 79 $ 81 $ 83
Other $ - $ - $ - $ - $ -
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PREPARED BY

LSL, LLP
Certified Public Accountants
License Number 2584

TECHNICAL PROPOSAL
City of Campbell
Financial Auditing Services
Date of Submission: January 9, 2025
Valid for 90 Days
Authorized by:

Brandon Young, CPA, Partner
[email protected]
500 Capitol Mall., Suite 2350
Sacramento, CA 95814
(916) 503-9691
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Table of Contents
TABLE OF CONTENTS ...........................................................................................................................1 TRANSMITTAL LETTER .........................................................................................................................2 Authorized Representative ....................................................................................................................3 DETAILED PROPOSAL...........................................................................................................................4 License to Practice in California ............................................................................................................4 Independence........................................................................................................................................4 Firm Qualifications and Experience.......................................................................................................4 Partner, Supervisory and Staff Qualifications and Experience............................................................10 PRIOR ENGAGEMENTS WITH THE CITY............................................................................................13 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES ................................................13 Most Significant Engagements ............................................................................................................13 Client References ................................................................................................................................15 SPECIFIC AUDIT APPROACH..............................................................................................................17 EXCEPTIONS.........................................................................................................................................25

3. Compensation .................................................................................................................................25

5. Ownership of Documents and Materials..........................................................................................26

6. Termination......................................................................................................................................26 INSURANCE ..........................................................................................................................................26 LSL HIGHLIGHTS: AWARDS & VALUES ............................................................................................27 Accounting Today Regional Leader ....................................................................................................27 INSIDE Public Accounting Award........................................................................................................27 Best of Accounting Award ...................................................................................................................27 Our Core Values..................................................................................................................................27 TRAINING SERVICES & LSL SEMINARS............................................................................................28 APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS ................................................................29 APPENDIX B – ENGAGEMENT TEAM RESUMES ..............................................................................31 APPENDIX C – COI EVIDENCE OF COVERAGE.................................................................................42 Item 7.4
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Transmittal Letter
January 9, 2025
City of Campbell
Office of the City Clerk
70 N. First Street
Campbell, CA 95008
Dear Evaluation Committee,
LSL, LLP (“LSL”) is pleased to present our proposal for Financial Auditing Services, and we value the opportunity to demonstrate our professional qualifications and commitment to excellence to the City of Campbell (“City”).

This proposal details our understanding of the scope of work outlined in the City’s RFP and showcases our firm’s experience, knowledge, and creative problem-solving capabilities in governmental auditing. Our government assurance team specializes in high-quality governmental audits aligned with GAAS and current GASB pronouncements. We prioritize accuracy and thoroughness while ensuring timely report delivery. Our commitment to effective collaboration and transparency with the City safeguards the integrity of its financial reporting and compliance with all regulatory requirements.

We understand that the City of Campbell is seeking a qualified firm to audit its financial statements for a contract period of three (3) fiscal years, beginning with the fiscal year ending June 30, 2026, through 2028, with the option to extend for two years, extending through 2030.

This includes expressing an opinion on the fairness of the City‘s financial statements, performing a Single Audit, performing agreed-upon procedures on the Gann Appropriations Limit, conducting audits and reports on Measure O Audit Report, West Valley Solid Waste Management Authority Audit Report, TDA Article 3 Audit, audit the California Board of State and Community Corrections as part of the Organized Retail Theft Prevention Grant Program (BSCC ORT Grant), as well as the optional engagements to prepare and file the Financial Transactions Report and Annual Street Report, and GASB 68/75 assistance.

At LSL, our Government Services team isn’t just another department – it’s the backbone of our firm. With a robust team of 60+ audit and consulting professionals, we bring decades of experience and highly specialized industry knowledge dedicated to serving state and local governments across the United States. Our expertise has shaped efficient procedures and streamlined work plans that deliver results. With unequaled government experience, we are confident that LSL is the best-qualified accounting firm for the City.

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AUTHORIZED REPRESENTATIVE
Brandon Young is the designated Engagement Partner who will serve as the primary point of contact for this proposal. He is authorized to make representations on behalf of our firm and can be reached directly by phone at (916) 562-1579 or by email at [email protected].

Please contact Brandon for any clarification or contract negotiations related to this proposal.

We affirm that our proposal fully aligns with all terms, conditions, and requirements outlined in the City’s RFP. Our proposal is a firm and irrevocable offer for ninety (90) calendar days following the closing date of the receipt of proposals.

We welcome the opportunity to discuss any aspect of our proposal to ensure your complete satisfaction.

Sincerely,
Brandon Young, CPA, Partner

LSL, LLP
500 Capitol Mall., Suite 2350
Sacramento, CA 95814
(916) 503-9691
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Detailed Proposal

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 (AICPA) and the California Society of Certified Public Accountants (CalCPA). 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.

Business License
LSL affirms that we will obtain and maintain active business licensure with the City of Campbell upon award of contract.

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.

FIRM QUALIFICATIONS AND EXPERIENCE
History & Size
LSL, LLP is a limited liability partnership and is not a wholly owned subsidiary of a parent company.

LSL was established in 1929 and has grown as a leader in the government sector. Our full-service accounting firm is powered by a dynamic team of 15 partners, 4 principals, and 165 employees. We proudly serve over 100 municipal clients, including counties, cities, water and electric utility districts, and special-purpose government agencies. Our dedicated government sector encompasses the following major classifications: attestation, compliance, consulting, outsourced accounting and reporting, year-end close assistance, interim staffing, strategic planning, and tax services.

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Location

OUR OFFICES
Irvine, CA
500 Technology Drive, Suite 350
Irvine, CA 92618
Phone: (949) 829-8299
Sacramento, CA
500 Capitol Mall., Suite 2350
Sacramento, CA 95814
Phone: (916) 503-9691
Phoenix Metropolitan Area, AZ
950 W. Elliot Rd., Suite 110
Tempe, AZ 85284
Phone: (480) 424-7855
The Woodlands, TX
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
Phone: (936) 828-4587
The Sacramento office is available to locally support the City; however, we regularly share staff and resources across our offices to leverage the virtual footprint of our government team that spans across the United States. This collaborative approach ensures that you receive the highest level of industry-specialized service while maintaining a streamlined, reliable audit and comprehensive coverage.

LSL’s Government Team Resources
Our governmental staff consists of three (3) Partners, one (1) Director, four (4) Senior Managers, five (5) Managers, nine (9) Supervisors, and twenty (20) Professional Staff.

Number and Nature of Staff Assigned to the City
Five (5) LSL staff will be assigned to the audit portion of the engagement: an engagement partner, a concurring partner, a project manager, an audit manager, and an in-charge. Detailed team information can be found in PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE on page 10. All audit staff 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.

LSL will not be subcontracting any portion of the City’s audit. All staff assigned to the. However, LSL does collaborate with a third-party for the preparation of the SCO (State Controller's Office) reports to ensure that the reports are prepared and filed correctly and timely by experts in those reports.

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 Government Finance Officers Association (GFOA).

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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.

Current List of Municipal Clients
A current list of municipal clients can be found in APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS on page 29, which includes LSL’s most significant engagements conducted within the last three (3) years that are similar to the engagement described in this request for proposal.

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 APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS.

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).

APPENDIX A – CURRENT LIST OF MUNICIPAL CLIENTS also includes a list of government audit clients for which a Single Audit has been performed in the last fiscal year. Additionally, the table on the following page highlights recent examples of federal programs audited by LSL.

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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.

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 Item 7.4
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PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE Principal Audit Staff Assigned to the City
ENGAGEMENT PARTNER Brandon Young, CPA, Partner/ COO
CONCURRING PARTNER Ryan Domino, CPA, Partner
PROJECT MANAGER James Butera, MBA, CPA, Director
AUDIT MANAGER Heather Flores, CPA, Manager
AUDIT IN-CHARGE Chloe Zabrek, MPAc, CPA, Manager
AUDIT SUPERVISOR To be determined
Organizational Chart
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Brandon Young, CPA
Engagement 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 is appointed to a 3-year term to serve the prestigious 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.

Ryan Domino, CPA
Concurring 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.

Engagement Team Resumes
Team resumes are available in APPENDIX B – ENGAGEMENT TEAM RESUMES on page 31, which details 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 relevant continuing education completed by the team members during the past three years. Proposed team members 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.

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.

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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.

Additional Resources
The LSL team is comprised of top talent within the industry with comprehensive experience beyond governmental audit, accounting, and advisory services. When you partner with LSL, you gain access to the experience, knowledge, and resources of our entire team, including our consulting and technology teams. We are committed to helping finance departments thrive by providing the guidance, tools, and services that foster lifelong success for your finance team.

We encourage our clients to tap into our full professional team of industry and product experts for your full-service consulting and staffing.

Financial & Compliance
Audits
Consulting, Staffing &
Training
ERP &
Other Technologies
Kelly Telford, CPA
Consulting Partner
Kelly is a respected leader in public finance and is known for being a change agent and thought leader in organizational strategy. She has developed her expertise in public and local government accounting and auditing, financial forecasting, budget development, public utilities, investment management, grant management, human resources, and information technology. She has taught classes for GFOA and CSMFO and has presented at annual conferences for GFOA, CSMFO and GFOAA. She has previously served as Finance Director for the cities of Costa Mesa and Seal Beach as well as the Los Angeles Community Development Agency. Kelly has a proven track record of helping agencies identify operating inefficiencies assisted in departmental reorganizations, identify internal control challenges, completing yearend close procedures, and serving as an outsourced Finance Director.

Her practical recommendations are instrumental in helping our team and our clients achieve a high-quality and efficient audit while providing valuable feedback for organizational improvements.

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Prior Engagements with the City
LSL has had no previous engagements within the last five years with the City of Campbell.

Similar Engagements with Other Government Entities

MOST SIGNIFICANT ENGAGEMENTS
City of Burbank
Contact Craig Wood, Deputy Finance Director
Telephone (818) 238-5500
Email Address [email protected]
Dates of Service 2012 - Present
Total Hours 750
Type of Service Audit of the City’s ACFR; Housing Co Audit; Citywide Cash Handling Audit; EMS Membership Program; Burbank Airport; Tennis Center; AUP: Ambulence, BUSD, TPT; Burbank TOT;
Feature Parking TPT Audit; Starlight Bowl AUP; Utility User’s Tax; Golf Course Audit; Franchise Fees; Oracle; Burbank Housing Corp.

Engagement Partner Brandon Young
City of Santa Monica
Contact Steve Gomez, MBA, CPA
Telephone (310) 458-8272
Email Address [email protected]
Dates of Service 2016 - Present
Total Hours 800
Type of Service Audit of City’s ACFR which receives the GFOA award; in accordance with GASB. Single Audit; compliance audit of the City’s Housing Successor; compliance audit of the City’s Air Quality Management District revenues and expenditures; audit of the “Big Blue Bus” Enterprise Fund, National Transit Database (NTD) AUP; REAC submission, and application of AUP of City’s GANN Limit calculation
Engagement Partner Ryan Domino
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City of Pasadena
Contact Armine Trashian, Controller
Telephone (626) 744-4355
Email Address [email protected]
Dates of Service 2015 – 2019; 2023 – Present
Total Hours 800
Type of Service Audit of the City’s ACFR which receives the GFOA award, in accordance with GASB. Audit and preparation of financial statements for the City’s Discretely Presented Component Units, the Rose Bowl Operating Company, the Pasadena
Center Operating Company, the Pasadena Community Access Corporation and Single Audit in accordance with OMB Uniform Guidance. Review and issue a report on the calculation of the City’s Appropriations Limit (GANN), as required by Article XIIIB Section 1.5 of the California Constitution.

Engagement Partner Brandon Young
County of Yolo
Contact Tom Haynes, Interim Chief Financial Officer
Telephone (530) 666-8050
Email Address [email protected]
Dates of Service 2019 – present
Total Hours 800
Type of Service Audit of the County’s ACFR which receieves the GFOA award; in accordance with GASB. Single Audit; audit of County’s Treasury, GASB 68 and 75 Employer Allocation Schedules
Engagement Partner Ryan Domino
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County of Placer
Contact Nicole Howard, Auditor-Controller
Telephone (530) 889-4210
Email Address [email protected]
Dates of Service 2024 - Present
Total Hours 1400
Type of Service Audit of the County’s ACFR, which receives the GFOA award; in accordance with GASB. Single Audit; REAC AUP
Submisson; First 5 COmmission Audit, Western Placer Waste Management Authority Audit, GANN Limit AUP, Golden Sierra Job Training Agency Audit & SIngle Audit, Placer Mosquito Vector Control Audit, Placer County Treasury Review Panel Engagement Partner Christian Townes

CLIENT REFERENCES
City of Newark
Contact Krysten Lee, Director of Finance
Telephone (510) 578-4337
Email [email protected]
Address 37101 Newark Boulevard, Newark, CA 94560
Date 2019 - Present
Type of Service Audit of the City’s ACFR, which receives the GFOA award; Single Audit; performance of agreed-upon procedures over the City’s GANN limit; performance of special purpose audits specific to Measure B/BB, VRF, Measure G, and the TDA
Audit.

City of Galt
Contact Cindy Nguyen, Accounting Manager
Telephone (209) 366-7150
Email [email protected]
Address 380 Civic Dr., Galt, CA 95632
Date 2018 - Present
Type of Service Audit of the City’s ACFR, which receives the GFOA award; Single Audit; performance of agreed-upon procedures over the City’s GANN limit; performance of compliance audit over AB 3773
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City of Citrus Heights
Contact Alberto Preciado, Accounting Manager
Telephone (916) 727-4776
Email [email protected]
Address 6360 Fountain Square Dr., Citrus Heights, CA
Date 2019 - Present
Type of Service Audit of the City’s ACFR, which receives the GFOA award; Single Audit; performance of agreed-upon procedures over the City’s GANN limit; and audit of City 401(a) plan
City of West Sacramento
Contact Becky Robertson, Finance Director
Telephone (916) 617-4584
Email [email protected]
Address 1110 W. Capitol Ave., West Sacramento, CA 95691 Date 2023 - Present
Type of Service Audit of the City's ACFR, which receives the GFOA award; Single Audit; performance of agreed-upon procedures over the City's GANN limit; performance of special purpose audits specific to the West Sacramento Area Flood Control Agency, the Reclamation 900 District, and the Enhanced Infrastructure Financing District
City of Vallejo
Contact Florta Cruz, CPA, Assistant Finance Director
Telephone (707) 648-5542
Email [email protected]
Address 555 Santa Clara Street, Vallejo, CA 94590
Date 2019 - Present
Type of Service Audit of the City’s ACFR, which receives the GFOA award; Single Audit; performance of agreed-upon procedures over the City’s GANN limit; Housing Authority financial statement audit and related REAC report; compliance audits for Measure B/V and Measure P
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Financial Auditing Services
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Specific Audit Approach
Our Understanding of the Scope of Work
LSL understands that the City of Campbell is seeking a qualified firm to perform the City’s financial audit and related services, consisting of the following final financial and compliance reports:
• City Audit and Related Reports
• Single Audit and Related Reports
• Gann Limit Review Report
• Measure O Audit Report
• West Valley Solid Waste Management Authority (JPA)
• TDA Article 3 Audit
• BSCC ORT Grant
• Financial Transactions Reports
• Annual Street Reports
Report Preparation – LSL Responsibility to Prepare, Edit, Print, and Bind

1. ACFR

2. Single Audit Report

3. West Valley Solid Waste Management Authority

4. Gann Appropriations Limit Report

5. TDA Article 3 Grant
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 our 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.

Project Management Methodology
The LSL team holds itself to a high standard for timely delivery and effective communication of key milestones. We understand 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.

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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 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.

Quality Management System
LSL’s Quality Management System fully complies with the AICPA's Statement of Quality Management Standards No. 1 and showcases our unwavering commitment to excellence in audit and assurance services. Designed to meet and exceed industry standards, our framework integrates robust risk management, ethical compliance, and continuous improvement across every engagement. With clear policies for governance, client relationships, resource allocation, and performance monitoring, our system empowers every team member to deliver reliable, high-quality results. By fostering a culture of transparency, accountability, and innovation, LSL ensures clients receive exceptional service and peace of mind, backed by proven processes and a dedication to quality at every level.

Project Schedule
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.

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Financial Auditing Services
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Proposed Work Plan
At LSL, we use a governmental audit program that will be tailored to the City’s operations to accommodate its specific circumstances 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
take place sometime
between October and
November.

Exit Conference will
be held on the last day
of fieldwork.

Entrance
Conference will be
held before interim
begins.

Segment 1
Interim Testing will
take place between
June and July.

November
Segment 3
Draft Audit Letters
and Other Reports
will be provided to
the City in
November.

Final ACFR, Single
Audit, & other
Reports and
Approval will be
delivered no later than
December 4th.

Delivery of Financial
Statements and
Presentation of
Financials - LSL will
be available as
requested to present
the results of the
financial audit.

NOTE: BSCC ORT
Grant June 1, 2027
June - July October - November December
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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.

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Financial Auditing Services
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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 by mid-December of each year.

Level of Staff Assigned and Number of Hours to be Assigned Segment/Task
Partners/
Director Manager Supervisor Staff Total
#1 City Audit and #4 Related Report
Interim test work 5 20 40 50 115
Year-End test work 0 0 20 130 150
Report/Review/Supervision 15 60 60 0 135
Subtotal 20 80 120 180 400
#2 Single Audit and Related Reports *
Test work 0 0 0 13 13
Report/Review/Supervision 2 6 9 0 17
Subtotal 2 6 9 13 30
#3 Gann Limit Review Report
Report/Review/Supervision 0 1 0 2 3
Subtotal 0 1 0 2 3
#6 West Valley Solid Waste Management Authority (JPA)
Test work 0 0 0 70 70
Report/Review/Supervision 5 30 45 0 80
Subtotal 5 30 45 70 150
#7 TDA Article 3 Audit
Report/Review/Supervision 1 1 3 5 10
Subtotal 1 1 3 5 10
#8 BSCC ORT Grant
Report/Review/Supervision 2 6 9 13 30
Subtotal 2 6 9 13 30
#9 Annual Financial Transactions Report
Report/Review/Supervision 0 2 30 0 32
Subtotal 0 2 30 0 32
#10 Annual Street Report
Report/Review/Supervision 0 1 2 0 3
Subtotal 0 1 2 0 3
TOTAL PROPOSED HOURS: 30 127 218 283 658

TOTAL PROPOSED HOURS
*Hours proposed are for one (1) major program.

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Financial Auditing Services
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Workload Accomplishment
Our team at LSL is highly experienced and well-equipped to manage the project workload efficiently. The assigned team, who bring decades of experience in public accounting and auditing, has a proven track record of delivering high-quality results. We are confident in our ability to devote sufficient time and resources to this project, ensuring its successful completion.

Audit Sampling
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.

Electronic Data Processing Software, Management Information Systems Software, & AI Technology
LSL is always at the forefront of technology and finding ways to increase efficiency in our audits.

Our goal is to effectively streamline the audit process to make the burden of an audit easier on our clients and ease any technical disagreements.

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Caseware
At LSL, we partner with and utilize Caseware to perform our audits and retain electronic workpapers and supporting documentation in a fully cloud-based platform. During our preparation of the ACFR, all financial statements and schedules are linked to Caseware and audit documentation, ensuring accuracy and consistency with City records and eliminating the risk of manual errors.

LSL Caseware Cloud Portal
Our web-based portal system provides clients with the ability to securely share information in a user-friendly platform. Integrated with Caseware OnPoint Collaborate, this state-of-the-art tool enhances collaboration in accounting and auditing. It enables direct communication with clients throughout the audit process for feedback exchange and tracks activities such as audit requests, client uploads, and progress. Access to the secure hub can be restricted to relevant individuals.

This tool eliminates the necessity of sending sensitive documents via email, enhancing efficiency. Client dashboards are customizable to meet specific needs.

Data Extraction & Audit Analytics
We believe software is only as effective as those who know how to use it. That's why we train all our staff and incorporate the use of Caseware Analytics AI and IDEA into our audit approach. These two complement each other to create a risk-based transaction analysis tool.

We utilize them to scan transaction sets, identify exceptions warranting further investigation, and provide additional assurances to our clients. These tools offer users a high-level summary and reduce time spent in transaction analysis by automatically performing multiple tests on the entire transaction set. They assist in identifying duplicate payments, high-risk journal entries, and developing expectations for analytical procedures used during the audit.

Experience With ERP Systems
Many of our clients have updated their system software with new Enterprise Resource Planning (ERP) systems over the years. We make ourselves available for questions and recommendations, including assistance with the vendor selection process. Our clients' transition to more sophisticated ERP systems has allowed us to gain a better understanding of each system and its unique capabilities. We often obtain read-only access to our clients’ software and can work directly within the system. This allows us to provide useful observations and recommendations regarding internal controls and facilitates efficient audit test work. Some of the ERP and Property Tax Systems we have extensive experience with include Tyler Technologies (Munis, New World, Eden, Incode), One Solution, Oracle, SAP, Infor, Megabyte, and more.

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Financial Auditing Services
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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.

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.

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.

Our process is to obtain and review the City’s annual budget book, organizational charts, standard operations procedures, manuals, policies, or other written documentation to identify processes and controls for critical transaction cycles. As much as is possible, we attempt to gather the data from the City’s publicly available documents prior to beginning the audit to reduce the workload of the City’s audit staff. Additionally, during Segment 1 of the audit, 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.

Anticipation Of Potential Audit Problems, Roles & Responsibilities of the City Outside of the complexities that arise with the implementation of GASB pronouncements, LSL does not anticipate any audit problems or conflicts in the performance of the services requested in this RFP. Our approach is to partner with our clients to provide information, training, and the resources necessary to successfully implement any new changes in accounting principles.

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Financial Auditing Services
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As mentioned previously, LSL assumes that the City will provide all necessary information to complete the financial statement and single audits. The LSL team assigned to this engagement will help identify and communicate any pending information needed from the City that may hinder the engagement's objectives and timely completion. Additionally, LSL assumes that the City will have closed its books and present auditable general ledger balances.

Working Paper Retention and Access
All working papers and reports will be retained at LSL’s expense for a minimum of seven (7) 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.

Exceptions
LSL raises the following exceptions to the terms and conditions of the Consultant Services Agreement provided by the City of Campbell in the RFP.

3. COMPENSATION

3.1 – a
We request to adhere to LSL’s manner of payment that consist of two manners of payment to our government audit clients. The first manner of payment is an upfront payment for the services to be rendered, less a 10% retention. This payment is due upon execution of the professional services agreement or the engagement letter. We apply an additional 5% discount to the overall audit fee for up-front payments. The second method of payment is that 90% of the total fees are invoiced in equal, monthly installment payments commencing from the month the professional services agreement or engagement letter is executed and scheduled to conclude December each year. If the installment payment method is selected, if the scope of work is concluded earlier than December of each year, the remaining balance becomes due and payable upon completion of the annual scope of work. Under both methods, the final 10% retention is due and payable upon completion of the scope of work. The peripheral reports (e.g., the Single Audit and Appropriations Limit) are invoiced upon completion of the scope of work. Invoices will not be provided on a more than monthly interval.

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Financial Auditing Services
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5. OWNERSHIP OF DOCUMENTS AND MATERIALS
All original drawings, documents, papers, data, materials, photographs, negatives and other work products prepared by the consultant in the performance of the services encompassed in the Agreement shall be the property of the Consultant. AICPA Code of Professional Conduct clearly states that the working papers, lead sheets, reconciliations, draft reports, and any other data prepared by the auditor in the scope of an audit engagement are to remain the sole property of the certified public accountants. These documents may be made available for review by the City at LSL’s discretion or upon request by a regulatory agency or court subpoena. As such, we would need this section to be revised such that these types of documents are exempt from ondemand review by the City.

6. TERMINATION
We request a dual termination clause to be added. Notwithstanding any other provision of this Agreement, should either party fail to perform any of its obligation hereunder within the time and in the manner herein provided, or otherwise violate any of the terms of this Agreement, the nonbreaching party may immediately terminate this Agreement by giving written notice, stating the reason for termination.

Insurance
LSL confirms that we will maintain the minimum insurance requirements throughout the entire term of this engagement. We have provided evidence of coverage with the submission of our proposal in APPENDIX C – COI EVIDENCE OF COVERAGE on page 31, and the actual insurance form will be provided upon the award of contract.

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Financial Auditing Services
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LSL Highlights: Awards & Values
LSL is a multi-location firm with formidable resources that provides a personal feel and handson client experience.

Ranked #17 on the Orange
County Business Journal’s
CPA Firm Book of Lists
Established
in 1929
15 Partners
4 Principals
165 Employees
(and growing!)

ACCOUNTING TODAY REGIONAL LEADER
LSL has again been recognized as an Accounting Today Regional Leader in 2025. The list ranks the top CPA firms that have shown exceptional growth, embraced technology, and who ‘think outside the box’ when providing solutions.

INSIDE PUBLIC ACCOUNTING AWARD
LSL is honored to be recognized among the Top 300 accounting firms in the nation by INSIDE Public Accounting! Each year, IPA ranks CPA firms based on net revenue, and LSL proudly advanced from #220 in 2024 to #201 in 2025.

Our fantastic team and the trust of our valued clients are the driving force behind this upward momentum and continued growth.

BEST OF ACCOUNTING AWARD
LSL has consistently secured the ClearlyRated Best of Accounting award since 2019. This exclusive program awards accounting firms who demonstrate highlevel service of excellence within the accounting industry and solely leverages statistically validated survey responses from our clients.

OUR CORE VALUES
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.

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Financial Auditing Services
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Training Services & LSL Seminars
LSL offers a comprehensive suite of training options including written materials, in-person, online and webinars covering both current topics and foundational concepts. These programs are tailored towards finance department teams to ensure that both clients and staff are informed and prepared in governmental accounting and auditing with continued support throughout. We regularly lead instructional sessions and learning opportunities in financial reporting, internal control risk assessments, and the latest GASB updates delivering the most current information and ideas that impact your industry. These opportunities are made available through our firm to the City for professional development or continuing professional education credits. Some of the topics include:

Uniform Guidance
(UG) Updates GASB Updates Addressing Staffing
Challenges
ERP
Implementation
Panel
LSL Back to Basics
Series
Back to Basics topics include:
• GASB 101: Compensated Absences
• Capital Assets
• Bank Reconciliations
• Pension & OPEB
• Accounts Receivable
• A/P, Accrued Liabilities, and Long-Term Debt
• Leases & SBITAS
For upcoming webinars, please visit https://lslcpas.com/webinars/.

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Financial Auditing Services
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Appendix A – Current List of Municipal Clients
olumClient Name Client Class Contact Person Services Years Phone * Barstow M Sydnie Harris A1, A2 11 760-255-5115
Big Bear Fire Authority S Kristin Mandolini A1 9 909-866-5831 * Big Bear Lake M Joseph Toney A1, A2 27 909-866-5831
* Brea M Monica Lo A1, A2 13 714-990-7600
* Burbank M Heidi Okimoto A1, A2 15 818-238-5500
* Butte County C Graciela Gutierrez A1, A2 1 530-552-3600 Canyon Lake M Aaron Brown A1, A2 30 951-244-2955
* Carlsbad M Zach Korach A1, A2 3 760-602-2430
* Cathedral City M Kevin Biersack A1, A2 15 760-770-0378 * Chino Hills M Nicole Lugotoff A1, A2 28 909-364-2648
* Citrus Heights M Alberto Preciado A1, A2 6 916-272-4776 * Citrus Heights Water District S Annie Liu A1 4 916-735-7703 * Coachella Valley Water District S Karla Romero A1, A2 12 760-398-2651 * Culver City M Lisa Soghor A1, A2 1 310-253-6016
* Dana Point M Sheryl Mariano A1 1 949-248-3516
* Diamond Bar M Jason Jacobsen A1, A2 15 909-839-7051
* Downey M Francesca Navarro A1, A2 11 562-904-7265
Duarte M Angela Chiaromonte A1 1 626-357-7931
Durham Mosquito Abatement District S Anita Weinreich A1 1 530-518-0364 * East Bay Municipal Utility District S Melody Wang A1, A2 6 510-287-0280 * Eastern Municipal Water District S Wilma Garriz A1, A2 4 951-928-3777 El Dorado County C Alison Winter A1, A2 1 530-621-6729
* El Toro Water District S Vishav Sharma A1 1 949-599-2504 * Fullerton M Toni Smart A1, A2 4 714-738-6522
* Galt M Cindy Nguyen A1 7 209-366-7150
Grand Terrace M Christine Clayton A1, A2 11 909-824-6621 Inglewood M Sharon Koike A1, A2 10 310-412-5257
* Irwindale M Lori Svet A1 30 626-430-2200
Kress T Johnny Taylor A1 1 806-994-5051
* La Quinta M Claudia Martinez A1, A2 1 760-777-7055
* Laguna Beach M Shannon Espinoza A1 1 949-497-0319
Livingston M Happy Bains A1 4 209-394-8041
* Lodi M Chia Lor A1, A2 2 209-269-4638
* Lompoc M Christie Donnelly A1, A2 4 805-875-8283
* Malibu M Renee Neerman A1 21 310-456-2489
* Manhattan Beach M Julie Bondarchuk A1 15 310-802-5564 * Mesa Water District S Anthony Phou A1 3 949-574-1022
* Monrovia M Buffy Bullis A1, A2 24 626-932-5513
Monterey Peninsula Airport District S Mark Wilson A1, A2 6 831-648-7000 * Napa M Rajneil (Raj) Prasad A1, A2 1 707-257-9698
Nevada City M Stephen Erlandson A1 1 530-265-2496
* Nevada County C Gina Will A1 1 530-265-1580
* Newark M Krysten Lee A1, A2 6 510-578-4288
* Oceanside M Jill Moya A1, A2 16 760-435-3887
Orange M Trang Nguyen A1, A2 2 714-744-2251
Orchard Dale Water District S Ron Richard A1 6 562-941-0114 Current List of Municipal Clients
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* Palm Desert M Veronica Chavez A1, A2 8 760-346-0611
* Pasadena M Armine Trashian A1, A2 12 626-744-4000
* Placer County C Debbie Chan A1, A2 1 530-889-4180
* Rainbow Municipal Water District S Rick Aragon A1 5 760-728-1178 * Rancho Cucamonga M Caroline Cruz-Contreras A1, A2 47 909-774-2434 Rolling Hills M Robert Samario A1, A2 16 310-377-1521
* Rosemead M Maria Teresita Anson A1, A2 7 626-569-2146 * Roseville M Kyle Horton A1, A2 4 916-774-5526
* Sacramento Transportation Authority S Dustin Purinton A1 2 916-323-0894 * San Bernardino Municipal Water Departm S Cynthia Mouser A1, A2 6 909-453-6010 * San Clemente M Jacob Rahn A1, A2 7 949-361-8360
* San Joaquin Council of Governments S Lynette Castle A1, A2 6 209-235-0454 San Juan Capistrano M Ken Al-Imam A1, A2 4 949-493-1171 * San Marino M Hillary Guirola-Leon A1, A2 32 626-300-0708 * Santa Monica M Steve Gomez A1, A2 9 310-458-8272
* Shasta County C Nolda Short A1 1 530-245-6657
* South Coast Air Quality Management Dis S Susanna Leung A1, A2 2 909-396-2623 Stanislaus Council of Governments S Jean Foletta A1 1 209-525-4891 Sutter County C Nathan Black A1, A2 6 530-822-7127
* Three Valleys Municipal Water District S Jose Velasquez A1 17 909-626-5568 * United Water Conservation District S Brian Zahn A1 2 805-695-3870 * Vacaville M Ken Matsumiya A1, A2 5 707-449-5180
* Vallejo M Rekha Nayar A1, A2 6 707-648-5433
* West Sacramento M Becky Robertson A1, A2 2 916-617-4584 Woodland M Kimberly McKinney A1, A2 5 530-661-5849
Yolo County C Tom Haynes A1, A2 6 530-666-8162
* Yorba Linda Water District S David Christian A1 3 714-961-7140 C - California County
S - California Special District or Other Government
T - Texas Municipality (City)
A1 - Audit Under Government Auditing Standards
A2 - Single Audit Act Engagement
* Participated in the GFOA Award Programs and has received or anticipates receiving outstanding awards Client Codes:

M - California Municipality (City)
Service Codes:

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Appendix B – Engagement Team Resumes
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1 Brandon Young, CPA

ENGAGEMENT PARTNER

ACHIEVEMENTS
Brandon is an expert in Governmental Accounting and Auditing, with over 13 years of experience serving a wide range of clients. He is appointed to serve on the prestigious AICPA State and Local Government Expert Panel, with a three-year the term that began in May of 2023, and also has served on the CalCPA Governmental Accounting and Auditing Committee since 2018.

CONTINUING EDUCATION
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. Brandon meets the requirements for Government Auditing Standards in governmental CPE.

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 thirteen years. He routinely presents at CSMFO, local chapter meetings and CalSACA on current accounting and auditing material. He also regularly teaches current audit and accountingrelated 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 Dixon
City of Lodi
City of Galt
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 Placer
County of Nevada
County of Sutter
County of Yolo
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
Union Sanitary District
City of Campbell
Financial Auditing Services
www.lslcpas.com | 32
Item 7.4
Tuesday, April 21, 2026 152 of 774
Program Sponsor Completed
California Anti-Harassment: Introduction to California Harassment and Discrimination HSI 12/15/2025 California Anti-Harassment: California Harassment and Discrimination Scenarios HSI 12/15/2025 Anti-Harassment: 02. Anti-Harassment for Managers HSI 12/15/2025 The New Psychology of Fraud 2024-2025 Calcpa 10/30/2025 Ethics in the Real World 2025-26 Calcpa 10/30/2025
2025 Fall Western Roundtable Primeglobal 08/26/2025
2025 Boomer Circle Summit Boomer Consulting 08/20/2025
June 2025 GAAC Meeting Calcpa 06/26/2025
2025 State and Local Government Audit Planning Considerations Aicpa 05/29/2025 2025 State and Local Government Audit Planning Considerations Aicpa 05/29/2025 Quality Management Standards Becker Professional Education 04/28/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change -Uniform Guidance (UG) Update LSL, LLP 04/10/2025
LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change - IT Strategic Plan: A Blueprint for Transformation LSL, LLP 04/10/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change -ERP Panel: Implementation Lessons Learned LSL, LLP 04/10/2025 LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change LSL, LLP 04/10/2025 2025 Winter Western Subregional Roundtable Primeglobal 01/13/2025 2024 Government Year-End Training (In-Person) LSL CPAs 08/09/2024 2024 Gov't Levels Training - Level 4 (Day 1) LSL CPAs 08/07/2024 Inventory Count Training (Government) LSL CPAs 06/06/2024 Firm Operations & Administration (COOs & FAs) Discussion Webinar Primeglobal 06/05/2024 2024 Annual Required GACQC Webcast Aicpa 05/09/2024
LSL Government Audit, Accounting & Technology (GAAT) Update LSL CPAs 05/01/2024 2024 Govt. Interim Training: Expectations LSL CPAs 04/05/2024 CSMFO Annual Conference 2024 Csmfo 02/29/2024
LSL CPAs Strategic Planning Boomer Consulting 01/18/2024 2024 Winter Western Subregional Roundtable Primeglobal 01/16/2024 San Gabriel Valley Holiday Luncheon Csmfo 11/29/2023
Audit and Assurance Discussion Webinar Primeglobal 10/19/2023 Annual Professional Ethics Update 2023 Becker Professional Education 10/03/2023 Ethics - Understanding and applying the AICPA Code of Professional Conduct Becker Professional Education 10/03/2023 Fraud Stories Series: Accounting Fraud Calcpa 10/02/2023 September 2023 GAAC Meeting Calcpa 09/14/2023
Fraud Stories Series Crypto Promises Sept 2022 Calcpa 09/13/2023 2023 Summer Western Subregional Roundtable Primeglobal 08/22/2023 GASB 96: Lost In Translation.... Implementation Challenges No One is Talking About LSL CPAs 07/31/2023 2023 Govt. Lunch & Learn! Writing Good Findings LSL CPAs 07/14/2023 2023 Govt. Year-End Training - People Management (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Communication Skills/Audit Documentation (Level 1) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Expenditures & Payables (Level 1) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - Payroll (Level 2) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - Year-End Expectations LSL CPAs 06/27/2023 2023 Govt. Year-End Training - GASB 100 LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Audit Documentation (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Expenditures & Payables (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Basics of Government LSL CPAs 06/26/2023 2023 Govt. Year-End Training - Inventory and YE Expectations LSL CPAs 06/26/2023 California Regulatory Review Becker Professional Education 05/06/2023 2023 GASB Update: The Age of Enlightenment (for finance departments!)_LIVE LSL CPAs 05/04/2023 2023 Annual Required GAQC Webcast Aicpa 05/02/2023
Annual Conference of the State Association of County Auditors State Association Of County Auditors 04/20/2023 CCH Axcess/Document Beyond the Basics LSL CPAs 03/16/2023 2023 Interim Training - Assignments and Expectations LSL CPAs 03/10/2023 2023 Interim Training - Live Case Study LSL CPAs 03/10/2023 2023 Interim Training - Basics of Internal Control LSL CPAs 03/09/2023 2023 Interim Training - Changes Since Re-Engineering LSL CPAs 03/09/2023 2023 Interim Training - Introduction to Government Audits LSL CPAs 03/09/2023 2023 Interim Training - Audit Documentation LSL CPAs 03/09/2023 Brandon Young CPE Records 2023 - Current
City of Campbell
Financial Auditing Services
www.lslcpas.com | 33
Item 7.4
Tuesday, April 21, 2026 153 of 774
Ryan Domino, CPA

CONCURRING PARTNER

ACHIEVEMENTS
Ryan currently serves as a technical reviewer for the Government Finance Officers Association (GFOA), and has been a presenter for CSMFO’s annual conference and various 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
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. Ryan meets the requirements for Government Auditing Standards in governmental CPE.

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 and the annual CSFMO Conference.

Some of his presentations have covered:
 General auditing in accordance with GAGAS
 Accounting for capital assets
 GASB Statement Nos. 89, 90, 91, 94, 100, 101, and 102  Fraud risks and internal controls

MEMBERSHIPS
AICPA, CalCPA, CSMFO, GFOA, GFOAT

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 Certificate

AUDIT ENGAGEMENTS
City of Agoura Hills, CA
City of Big Bear Lake, CA
City of Brea, CA
City of Burbank, CA
City of Carlsbad, CA
City of Cathedral City, CA
City of Chino Hills, CA
City of Dana Point, CA
City of Kress, TX
City of La Quinta, CA
City of Lompoc, CA
City of Monrovia, CA
City of Moorpark, CA
City of Oceanside, CA
City of Orange, CA
City of Palm Desert, CA
City of Rialto, CA
City of Rosemead, CA
City of San Clemente, CA
City of San Juan Capistrano, CA
City of Santa Monica, CA
Monterey Peninsula Airport District
Orange County Water District
Orchard Dale Water District
Rainbow Municipal Water District
San Bernardino Muni. Water Dept.

Three Valleys Muni. Water District
United Water Conservation District
Yorba Linda Water District
City of Campbell
Financial Auditing Services
www.lslcpas.com | 34
Item 7.4
Tuesday, April 21, 2026 154 of 774
Program Sponsor Completed
Back to Basics | Uniform Guidance Update Encore Presentation LSL, LLP 09/10/2025 2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
2025 GAGAS Training Day 2 LSL, LLP 08/28/2025
2025 Government Workshop Series LSL CPAs 08/26/2025
2025 GAGAS Training Day 1 LSL, LLP 08/27/2025
2025 Government Workshop Series LSL CPAs 08/05/2025
Developing as a Rainmaker Convergence Coaching 06/23/2025 Back to Basics | GASB 101: Compensated absences LSL, LLP 06/05/2025 The New Psychology of Fraud 2024-2025 Calcpa 05/14/2025 New Quality Management Standards: Bringing It All Together - Exploring All Components of a Quality Management System Aicpa 04/24/2025 New Quality Management Standards: What's New for Firms' Monitoring and Remediation Processes Aicpa 04/17/2025
Single Audit Training - 01/24/2025 LSL CPAs 01/24/2025
Back to Basics - Capital Assets Crash Course LSL CPAs 09/10/2024 Back to Basics | Put the Pieces Together: A Guide to Bank Reconciliations LSL CPAs 08/27/2024 A CPA’s Guidebook to Ethical Behavior: A CPE Ethics Course for Texas CPAs Becker Professional Education 08/23/2024 Government Year-End Training 8/8/24 (Webinar) LSL CPAs 08/09/2024 LSL Government Audit, Accounting & Technology (GAAT) Update LSL CPAs 05/01/2024 2024 Govt. Interim Training - Audit Roadmap LSL CPAs 04/05/2024 2024 Govt. Interim Training: Internal Control Documentation in Orb LSL CPAs 04/04/2024 Audit Nightmares: Expenses Lumiq 02/13/2024
LSL CPAs Strategic Planning Boomer Consulting 01/18/2024 Designing a Training Program: Setting Goals, Objectives, and Mediums 01/03/2024 Key Recipient Roles and Responsibilities in Single Audits Aicpa 12/15/2023 Audit & Assurance Discussion Webinar Primeglobal 10/19/2023 2023 DHCS GAGAS Training Day 2 LSL CPAs 08/31/2023
2023 DHCS GAGAS Training Day 1 LSL CPAs 08/30/2023
2023 Uniform Guidance Update Becker Professional Education 08/21/2023 Understanding and Applying SAS 142: Audit Evidence Becker Professional Education 07/31/2023 Risk Assessment Under SAS No. 145 Aicpa 07/20/2023
Selecting and Managing a Project Portfolio with Microsoft Project 07/18/2023 2023 Govt. Lunch & Learn! Writing Good Findings LSL CPAs 07/14/2023 Becoming a Thought Leader 07/13/2023
2023 Govt. Year-End Training - Time Management (Level 1) LSL CPAs 06/30/2023 2023 Govt. Year-End Training - Financial Statements (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Payroll (Level 1) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Revenue & Receivables (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Revenue & Receivables (Level 1) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - GASB 100 LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Year-End Expectations LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Inventory and YE Expectations LSL CPAs 06/26/2023 2023 Govt. Year-End Training - Basics of Government LSL CPAs 06/26/2023 2023 Govt. Lunch & Learn! Long-term Debt LSL CPAs 06/16/2023 Critical Thinking – The Key to Success in Any Job Becker Professional Education 06/14/2023 2023 OMB Compliance Supplement and Single Audit Update Aicpa 06/13/2023 GASB Other Postemployment Benefits (OPEB) Becker Professional Education 06/12/2023 Building Professional Relationships 06/06/2023
Balancing Multiple Roles as a Leader 06/05/2023
2023 Govt. Lunch & Learn! Cash and Investments LSL CPAs 06/02/2023 2023 Fraud Update Becker Professional Education 05/09/2023 Start-up and Small Business Financial Statements: Issues and Fraud 2022 Calcpa 05/09/2023 2023 GASB Update: The Age of Enlightenment (for finance departments!)_LIVE LSL CPAs 05/04/2023 2023 Annual Required GAQC Webcast Aicpa 05/02/2023
California Ethics Becker Professional Education 04/26/2023 2023 Interim Training - Assignments and Expectations LSL CPAs 03/10/2023 2023 Interim Training - Live Case Study LSL CPAs 03/10/2023 2023 Interim Training - Changes Since Re-Engineering LSL CPAs 03/09/2023 2023 Interim Training - Introduction to Government Audits LSL CPAs 03/09/2023 2023 Interim Training - Audit Documentation LSL CPAs 03/09/2023 2023 Interim Training - Basics of Internal Control LSL CPAs 03/09/2023 Accounting Firm’s System of Quality Control, Part 1 Becker Professional Education 01/16/2023 Ryan Domino CPE Records 2023 - Current
City of Campbell
Financial Auditing Services
www.lslcpas.com | 35
Item 7.4
Tuesday, April 21, 2026 155 of 774
James Butera, MBA, CPA
DIRECTOR | PROJECT MANAGER

ACHIEVEMENTS
James was previously a Director of Finance at a regional municipality in New York. He brings his experience in financial audits, Single Audits, ACFR, and financial statement preparation, plus in-depth knowledge of GASB implementation consulting, bookkeeping consulting, and Controller consulting services.

CONTINUING EDUCATION
133 total hours over the last three years, 110 of which were in governmental accounting and auditing subjects. James meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
James has performed all phases of our government audits, including cities, counties, and special districts for their ACFR and Single Audits.

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
AICPA, CalCPA, GFOA

EDUCATION
Bachelor of Science in Accounting, Cum Laude &
Master of Business Administration in Accounting -
St. John Fisher University

LICENSE
Certified Public Accountant
New York

ENGAGEMENTS
City of American Canyon
City of Batavia, NY
City of Big Bear Lake
City of Chino Hills
City of Chula Vista
City of Fullerton
City of Geneva, NY
City of Irwindale
City of Livingston
City of Napa
City of Newark
City of Palm Desert
City of Pasadena
City of Pleasanton
City of Rialto
City of Rochester, NY
City of Rosemead
City of West Sacramento
County of Butte
County of Genesee, NY
County of Nevada
County of Placer
County of Sutter
County of Yolo
Jamestown Board of Public
Utilities
Monterey One Water District
Rochester City School District
City of Campbell
Financial Auditing Services
www.lslcpas.com | 36
Item 7.4
Tuesday, April 21, 2026 156 of 774
Program Sponsor Completed
New York State Anti-Harassment: Introduction to New York State Harassment and Discrimination HSI 12/08/2025
2025 Government Workshop Series LSL CPAs 11/04/2025
2025 Government Workshop Series LSL CPAs 10/28/2025
2025 Government Workshop Series LSL CPAs 10/14/2025
2025 Government Workshop Series LSL CPAs 10/07/2025
2025 Government Workshop Series LSL CPAs 09/30/2025
2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
Annual GASB Update 2025 Becker Professional Education 08/27/2025 2025 Government Workshop Series LSL CPAs 08/26/2025
Building Your Sphere of Influence Convergence Coaching 08/25/2025 2025 Government Workshop Series LSL CPAs 08/12/2025
2025 Government Workshop Series LSL CPAs 08/05/2025
Making a Bigger Difference for Your Clients Convergence Coaching 07/28/2025 2025 Government Year-End Training LSL CPAs 07/24/2025
Governmental and Not-for-Profit Annual Update Aicpa 07/15/2025 Back to Basics | Bank Reconciliations LSL, LLP 06/26/2025 Developing as a Rainmaker Convergence Coaching 06/23/2025 New York Government Finance Officer's Association Inc. NYGFOA 06/18/2025 Back to Basics | Capital Assets LSL, LLP 06/17/2025
Back to Basics | GASB 101: Compensated absences LSL, LLP 06/05/2025 Annual Professional Ethics Update 2025 Becker Professional Education 06/02/2025 Quality Management Standards Becker Professional Education 04/29/2025 Annual GASB Update 2024 Becker Professional Education 04/09/2025 Maximizing Transient Occupancy Tax Revenue: Don’t Leave Money on the Table LSL CPAs 03/26/2025 Single Audit Training - 01/24/2025 LSL CPAs 01/24/2025
Back to Basics - Capital Assets Crash Course LSL CPAs 09/10/2024 Lunch & Learn - Government Audit File Updates LSL CPAs 09/06/2024 2024 Gov't Levels Training - Levels 1-2 (Day 2) LSL CPAs 08/08/2024 2024 Gov't Levels Training - Level 3 (Day 1) LSL CPAs 08/07/2024 Inventory Count Training (Government) LSL CPAs 06/06/2024 LSL Government Audit, Accounting & Technology (GAAT) Update LSL CPAs 05/01/2024 2024 Govt. Interim Training: Expectations LSL CPAs 04/05/2024 2024 Govt. Interim Training - Audit Roadmap LSL CPAs 04/05/2024 2024 Govt. Interim Training: Internal Control Documentation in Orb LSL CPAs 04/04/2024 Yellow Book and Single Audit Update 2024 Becker Professional Education 01/24/2024 Yellow Book Update 2024 Becker Professional Education 01/09/2024 Single Audit Quality: Focus on Designing and Performing Test of Control and Compliance Becker Professional Education 01/08/2024 2023 Audit Update Becker Professional Education 08/24/2023 2023 Yellow Book Update Becker Professional Education 08/22/2023 2023 Uniform Guidance Update Becker Professional Education 08/21/2023 Understanding and Applying SAS 142: Audit Evidence Becker Professional Education 07/31/2023 2023 Govt. Year-End Training - Financial Statements (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Revenue & Receivables (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - People Management (Level 2) LSL CPAs 06/29/2023 2023 Govt. Year-End Training - Payroll (Level 2) LSL CPAs 06/28/2023 2023 Govt. Year-End Training - Year-End Expectations LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Expenditures & Payables (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Audit Documentation (Level 2) LSL CPAs 06/27/2023 2023 Govt. Year-End Training - GASB 100 LSL CPAs 06/27/2023 2023 Govt. Year-End Training - Basics of Government LSL CPAs 06/26/2023 2023 Govt. Year-End Training - Inventory and YE Expectations LSL CPAs 06/26/2023 2023 Govt. Lunch & Learn! Cash and Investments LSL CPAs 06/02/2023 Yellow Book:Staying Compliance with GAS 05/08/2023
2023 GASB Update: The Age of Enlightenment (for finance departments!)_ZOOM LSL CPAs 05/04/2023 Performing a Single Audit Under the Uniform Guidance 04/25/2023 Yellowbook: Application of GAGAS Principles 04/18/2023
Excel Essential Training (Office 365/Microsoft 365) 04/11/2023 Becoming Indistractable 04/10/2023
Balancing Multiple Roles as a Leader 04/10/2023
Excel 2019 Essential Training 04/10/2023
Getting Your Ideas Approved 04/08/2023
Building Trust 04/04/2023
10 Habits of highly successful careers Becker Professional Education 04/04/2023 Becoming a Manager Becker Professional Education 04/04/2023 AICPA and the Future of the Profession Becker Professional Education 04/04/2023 James Butera CPE Records 2023 - Current
City of Campbell
Financial Auditing Services
www.lslcpas.com | 37
Item 7.4
Tuesday, April 21, 2026 157 of 774
Heather Flores, CPA
MANAGER | AUDIT MANAGER

ACHIEVEMENTS
Heather brings 16 years of experience across both the public and private accounting sectors. She specializes in governmental audits – helping cities, districts, and public agencies navigate their financial reporting and compliance requirements with confidence. Heather’s practical approach to handling the pressure finance teams face during year-end allows her to make the audit process efficient, clear, and as stress-free as possible.

CONTINUING EDUCATION
140 total hours over the last three years, 95 of which were in governmental accounting and auditing subjects. Heather meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
Heather has performed a variety of government audits, including school districts, water districts, other special districts, ACFR audits, and Single Audits.

Her work has entailed:
 Annual Comprehensive Financial Report preparation
 Assisting clients achieve the Government Finance Officers Association (GFOA) Award
 Compliance testing for Single Audits under Uniform Guidance  Preparing government-wide conversion entries
 Assisting clients with the preparation and review of GASB 34, 87, and 96 journal entries
 Review of capital assets, debt service, and federal and state award

MEMBERSHIPS
AICPA, CalCPA, CREW-OC

EDUCATION
Bachelor of Business Administration in Accounting &
Master of Science in Finance -
Texas A&M University in College Station, Texas

LICENSES
Certified Public Accountant
Texas

ENGAGEMENTS
City of Nevada City
City of West Sacramento
County of Placer
Monterey Peninsula Airport
District
City of Campbell
Financial Auditing Services
www.lslcpas.com | 38
Item 7.4
Tuesday, April 21, 2026 158 of 774
Program Sponsor Completed
2025 Government Workshop Series LSL CPAs 11/04/2025
2025 Government Workshop Series LSL CPAs 10/28/2025
2025 Government Workshop Series LSL CPAs 10/21/2025
2025 Government Workshop Series LSL CPAs 10/14/2025
2025 Government Workshop Series LSL CPAs 09/30/2025
2025 Government Workshop Series LSL CPAs 09/23/2025
GAS‐Single Audit Guide: An Overview of AMERICAN INSTITUTE OF CPAS 9/18/2025 2025 Government Workshop Series LSL CPAs 09/16/2025
Back to Basics | Uniform Guidance Update Encore Presentation LSL, LLP 09/10/2025 2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
2025 Government Workshop Series LSL CPAs 08/26/2025
2025 Government Workshop Series LSL CPAs 08/19/2025
2025 Government Workshop Series LSL CPAs 08/12/2025
2025 Government Year‐End Training LSL CPAs 07/24/2025
2025 Assurance Department Training LSL CPAs 07/23/2025
2025 Assurance Department Training LSL CPAs 07/22/2025
Governmental and Not-for-Profit Annual AMERICAN INSTITUTE OF CPAS 7/15/2025 Anti‐Harassment for Bystanders: 05. Harassment Bystander Scenarios HSI 06/10/2025 California Workplace Bullying HSI 06/10/2025
Anti‐Harassment: 06. Review of Anti‐Harassment HSI 06/10/2025 Anti‐Harassment: 01. Anti‐Harassment for Everyone HSI 06/10/2025 Anti-Harassment: 02. Anti-Harassment for Managers HSI 06/10/2025 Overview: Harassment Prevention and the Respectful Workplace HSI 06/10/2025 Workplace Violence for Supervisors HSI 06/10/2025
Anti‐Discrimination: Protected Classes and the Inclusive Workplace HSI 06/10/2025 California Workplace Violence Prevention Plan HSI 06/10/2025 Back to Basics | GASB 101: Compensated absences LSL, LLP 06/05/2025 2024 Internal Inspector Results CARR RIGGS & INGRAM, LLC GASB 9/25/2024 100 FInancial Statement Impact CARR RIGGS & INGRAM, LLC IT 8/22/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/22/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/21/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/21/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/20/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC IT 8/20/2024 as Part of the Financial Statement CARR RIGGS & INGRAM, LLC 6/27/2024 CAATs / Active Data Part 1 CARR RIGGS & INGRAM, LLC A 6/25/2024 Deep Dive into GASB Statement 103's CARR RIGGS & INGRAM, LLC 6/21/2024 2024 Compliance Supplement CARR RIGGS & INGRAM, LLC 5/23/2024 2024 CRI IT Technology Review CARR RIGGS & INGRAM, LLC 5/10/2024 Introduction to Auditing Employee Benefit CARR RIGGS & INGRAM, LLC 5/10/2024 Employee Benefit Plan Audit Topics ‐ Part CARR RIGGS & INGRAM, LLC 5/10/2024 Employee Benefit Plan Audit Topics ‐ Part CARR RIGGS & INGRAM, LLC 5/9/2024 2024 Not‐for‐Profit Overview CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Common Deficiencies CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Update - Part 2 CARR RIGGS & INGRAM, LLC 5/9/2024 Single Audit Update ‐ Part 1 CARR RIGGS & INGRAM, LLC 5/8/2024 Yellow Book Overview CARR RIGGS & INGRAM, LLC 5/8/2024
Government Practice Topics CARR RIGGS & INGRAM, LLC 5/8/2024 Common Government Reporting Errors CARR RIGGS & INGRAM, LLC GASB 5/8/2024 Overview CARR RIGGS & INGRAM, LLC 5/7/2024
General Audit Topics CARR RIGGS & INGRAM, LLC 5/7/2024
Independence CARR RIGGS & INGRAM, LLC 5/7/2024
2024 ASB Overview CARR RIGGS & INGRAM, LLC 5/7/2024
2024 FASB Overview CARR RIGGS & INGRAM, LLC 5/6/2024
Auditing Revenue CARR RIGGS & INGRAM, LLC 5/6/2024
Consideration of Fraud in a Financial CARR RIGGS & INGRAM, LLC 5/6/2024 Auditor Engaged Valuation Specialist ‐ CARR RIGGS & INGRAM, LLC 5/6/2024 Auditing Leases (ASC 842) CARR RIGGS & INGRAM, LLC 1/17/2024 HubSync Introduction for CAAS Training CARR RIGGS & INGRAM, LLC 12/14/2023 2023 Internal Inspection Results CARR RIGGS & INGRAM, LLC 12/13/2023 Internal Controls - Payroll and CARR RIGGS & INGRAM, LLC 12/12/2023 Understanding Yourself & Others CARR RIGGS & INGRAM, LLC 12/7/2023 Teamwork CARR RIGGS & INGRAM, LLC 10/25/2023
Risk Assessment Update for SAS 145 CARR RIGGS & INGRAM, LLC EBP 9/20/2023 Highlights Thus Far and Reminders CARR RIGGS & INGRAM, LLC 6/21/2023 Internal Controls - Part 2 - Module 3 CARR RIGGS & INGRAM, LLC 6/21/2023 Internal Controls - Part 2 - Module 2 CARR RIGGS & INGRAM, LLC 6/20/2023 Internal Controls Part 2 ‐ Module 1 CARR RIGGS & INGRAM, LLC 6/20/2023 Internal Controls Part 1 ‐ Module 3 CARR RIGGS & INGRAM, LLC 6/19/2023 Internal Controls ‐ Part 1 ‐ Module 1 CARR RIGGS & INGRAM, LLC 6/19/2023 Internal Controls ‐ Part 1 ‐ Module 2 CARR RIGGS & INGRAM, LLC 5/12/2023 Employee Benefit Plan Audit Topics - Part CARR RIGGS & INGRAM, LLC 5/12/2023 General SSARS Overview CARR RIGGS & INGRAM, LLC 5/12/2023 Not‐for‐Profit Overview CARR RIGGS & INGRAM, LLC 5/11/2023 Introduction to Auditing Employee Benefit CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Update ‐ Part 2 CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Update ‐ Part 1 CARR RIGGS & INGRAM, LLC 5/11/2023 Single Audit Common Deficiencies CARR RIGGS & INGRAM, LLC 5/10/2023 Yellow Book Overview CARR RIGGS & INGRAM, LLC 5/10/2023 2023 GASB Overview CARR RIGGS & INGRAM, LLC GASB 5/10/2023 87 (Leases) Lessons Learned CARR RIGGS & INGRAM, LLC 5/10/2023 Government Practice Topics CARR RIGGS & INGRAM, LLC 5/9/2023 2023 FASB Overview CARR RIGGS & INGRAM, LLC 5/9/2023
2023 ASB Overview CARR RIGGS & INGRAM, LLC 5/9/2023
Risk Assessment CARR RIGGS & INGRAM, LLC 5/9/2023
General Audit Topics CARR RIGGS & INGRAM, LLC 5/8/2023
Debt Classification, Impairment, Going CARR RIGGS & INGRAM, LLC 5/8/2023 Considerations of Fraud in a Financial CARR RIGGS & INGRAM, LLC 5/8/2023 Professional Skepticism CARR RIGGS & INGRAM, LLC 5/8/2023 Leases CARR RIGGS & INGRAM, LLC 4/19/2023
Efficient Ways to Approach Journal Entry CARR RIGGS & INGRAM, LLC 2/8/2023 Tips and Tricks for a More Efficient Busy CARR RIGGS & INGRAM, LLC 2/8/2023 Heather Flores CPE Records 2025
City of Campbell
Financial Auditing Services
www.lslcpas.com | 39
Item 7.4
Tuesday, April 21, 2026 159 of 774
Chloe Zabrek, MPAc, CPA
MANAGER | AUDIT IN-CHARGE

ACHIEVEMENTS
Chloe is an experienced auditor specializing in state and local government audits, fund accounting, and compliance audits. She began her career at LSL as an Associate Auditor and has advanced to the role of a Manager. In this capacity, Chloe leads her team and every audit engagement with a strong commitment to accuracy and compliance with both regulatory and professional standards, while focusing on the quality and effectiveness of the audit engagement.

CONTINUING EDUCATION
120 total hours over the last three years, 100 of which were in governmental accounting and auditing subjects. Chloe meets the requirements of governmental CPE Government Auditing Standards.

EXPERIENCE
With 6 years of experience in governmental auditing, Chloe has honed her expertise in all phases of government audits, including ACFR audits, housing authority audits, Transportation Development Act audits, Air Pollution Districts, State department audit, and Single Audits.

Her work has entailed:
 Assisting in the preparation of the Annual Comprehensive Financial Report (ACFR)
 Performing analytical and substantive audit procedures on account balances
 Supervising the nature, timing and extent of procedures involved in the audit process as well as Junior Staff
 Assisting clients with the preparation and review of GASB 68, 75, 87, and 96 journal entries
 Review of capital asset, debt service, federal and state award schedules

EDUCATION
Bachelor of Arts in Business Administration
with an emphasis in Accounting – Seattle University
Master of Professional Accountancy – University of California, Davis

LICENSE
Certified Public Accountant
California

ENGAGEMENTS
County of Butte
County of El Dorado
City of Diamond Bar
City of Rancho Cucamonga
City of Redondo Beach
City of Roseville
City of San Juan Capistrano
City of Vallejo
South Coast Air Quality District
Engagements at CLA
County of Butte
County of Calaveras
County of El Dorado
County of Glenn
County of Humboldt
County of Kern
County of Lake
County of Mendocino
County of Monterey
County of Placer
County of San Bernadino
County of San Joaquin
County of San Luis Obispo
County of Shasta
County of Stanislaus
County of Tehama
County of Trinity
County of Yuba
City of Benicia
City of Porterville
City of Redding
California Housing Finance Agency
California Infrastructure and Economic
Development Bank
California Cannabis Authority
Eastern Sierra Transit Authority
Sacramento Law Library
San Luis Obispo APCD
City of Campbell
Financial Auditing Services
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Program Sponsor Completed
Understanding Harassment: 05. Warning Signs HSI 12/10/2025 Understanding Harassment: 03. Understanding Targets HSI 12/10/2025 California Anti-Harassment: California Harassment and Discrimination Scenarios HSI 12/10/2025 Anti-Harassment: 05. Sexual Harassment Cases in Court HSI 12/10/2025 Understanding Harassment: 06. Healthy Culture HSI 12/10/2025 Anti-Harassment: 04. Writing and Communicating Anti-Harassment Policy HSI 12/10/2025 California Anti-Harassment: Introduction to California Harassment and Discrimination HSI 12/10/2025 Anti-Harassment: 01. Anti-Harassment for Everyone HSI 12/10/2025 Anti-Harassment: 02. Anti-Harassment for Managers HSI 12/10/2025 Anti-Harassment: 06. Review of Anti-Harassment HSI 12/10/2025 Anti-Harassment: 03. Investigating Harassment Claims HSI 12/10/2025 Understanding Harassment: 02. Understanding Offenders HSI 12/10/2025 Understanding Harassment: 07. Understanding Harassment Review HSI 12/10/2025 Understanding Harassment: 04. Bystander Training HSI 12/10/2025 Understanding Harassment: 01. Introduction to Understanding Harassment HSI 12/10/2025 2025 Government Workshop Series LSL CPAs 11/04/2025
2025 Government Workshop Series LSL CPAs 10/28/2025
2025 Government Workshop Series LSL CPAs 10/21/2025
2025 Government Workshop Series LSL CPAs 10/14/2025
2025 Government Workshop Series LSL CPAs 10/07/2025
2025 Government Workshop Series LSL CPAs 09/30/2025
Driving Change with Confidence: From Vision to Result Association Of International Certifie 09/24/2025 2025 Government Workshop Series LSL CPAs 09/23/2025
2025 Government Workshop Series LSL CPAs 09/16/2025
Back to Basics | Uniform Guidance Update Encore Presentation LSL, LLP 09/10/2025 2025 Government Workshop Series LSL CPAs 09/09/2025
2025 Government Workshop Series LSL CPAs 09/02/2025
2025 Government Workshop Series LSL CPAs 08/26/2025
2025 Government Workshop Series LSL CPAs 08/19/2025
2025 Government Workshop Series LSL CPAs 08/12/2025
2025 Government Workshop Series LSL CPAs 08/05/2025
2025 Government Year-End Training LSL CPAs 07/24/2025
2025 Assurance Department Training LSL CPAs 07/23/2025
2025 Assurance Department Training LSL CPAs 07/22/2025
LSL GAAT Update 2025 Power Moves: Stay Ahead & Thrive Through Change LSL, LLP 04/10/2025 Single Audit Training - 01/24/2025 LSL CPAs 01/24/2025
Back to Basics | Put the Pieces Together: A Guide to Bank Reconciliations LSL CPAs 08/27/2024 Government Year-End Training 8/8/24 (Webinar) LSL CPAs 08/09/2024 Back to Basics | Leases & SBITA Accounting: Year Two & Beyond LSL CPAs 06/18/2024 Inventory Count Training (Government) LSL CPAs 06/06/2024 2024 Govt. Interim Training - Audit Roadmap LSL CPAs 04/05/2024 2024 Govt. Interim Training: Expectations LSL CPAs 04/05/2024 2024 Govt. Interim Training: Internal Control Documentation in Orb LSL CPAs 04/04/2024 Ethical and Independence Considerations in Yellow Book Engagements Becker Professional Education 04/03/2024 Motivating remote workers Becker Professional Education 04/03/2024 Identifying and Communicating Internal Control Matters on An Audit Becker Professional Education 04/03/2024 GAO Green Book - Government Internal Control Standards Becker Professional Education 04/02/2024 Evaluating internal controls post-pandemic Becker Professional Education 04/02/2024 Evaluating Design and Implementation of Internal Controls on Audits Becker Professional Education 04/01/2024 What is Changing in Risk Assessment Becker Professional Education 03/21/2024 Financial Statement Fraud Becker Professional Education 03/13/2024 Completing the Audit Becker Professional Education 03/12/2024 Accounting Firm’s System of Quality Control, Part 2 Becker Professional Education 03/08/2024 Accounting Firm’s System of Quality Control, Part 1 Becker Professional Education 03/04/2024 Single Audit Quality: Focus on Designing and Performing Test of Control and Compliance Becker Professional Education 02/28/2024 Writing Yellow Book and Single Audit Reports That Comply With Requirements Becker Professional Education 02/27/2024 The Top 10 Project Management Mistakes‚Äîand How to Avoid Them 02/26/2024 Data Analytics for Students 02/19/2024
Working with Real-Time Data in Excel 02/19/2024
Fraud and Abuse in Nonprofit and Government Environments Becker Professional Education 02/16/2024 Developing Your Leadership Philosophy 02/12/2024
Cultivating a Growth Mindset 02/09/2024
Audit Sampling, Part 2: Attribute Sampling for Tests of Controls and Selecting a Representative Sample Becker Professional Education 02/06/2024 A Guide Through Common Audit Deficiencies Becker Professional Education 02/06/2024 Audit Risk Assessment: The Do's and Don'ts, Part 1 Becker Professional Education 01/29/2024 Audit Risk Assessment: The Do's and Don'ts, Part 2 Becker Professional Education 01/29/2024 Big Data in the Age of AI 01/25/2024
Business Ethics for Managers and Leaders 01/25/2024
Yellow Book and Single Audit Update 2024 Becker Professional Education 01/24/2024 Asset Misappropriation Schemes Becker Professional Education 01/24/2024 2023 Uniform Guidance Update Becker Professional Education 01/23/2024 Business Collaboration in the Modern Workplace 01/23/2024 Finding a Better Work-Life Balance Becker Professional Education 01/23/2024 AICPA Risk Assessment Requirements Becker Professional Education 01/22/2024 AICPA's Ethics Codification Project Becker Professional Education 01/22/2024 Critical Thinking 01/22/2024
Being an Effective Team Member 01/22/2024
Accountants' Responsibility Regarding Fraud, Part 2 Becker Professional Education 01/18/2024 Accounting Foundations: Internal Controls 01/18/2024
AICPA Control Risk Assessment Requirements Becker Professional Education 01/18/2024 Accountants' Responsibility Regarding Fraud, Part 1 Becker Professional Education 01/17/2024 How to Properly Prepare Audit Documentation and Workpapers, Part 2 Becker Professional Education 01/16/2024 How to Properly Prepare Audit Documentation and Workpapers, Part 1 Becker Professional Education 01/16/2024 Government Ethics and Independence Becker Professional Education 01/15/2024 Time Management for Busy People 01/12/2024
Fraud Update 2024 Becker Professional Education 01/12/2024 Writing Email 01/12/2024
Microsoft Teams Essential Training 01/12/2024
Professional Skepticism for Public Accountants Becker Professional Education 01/11/2024 Working with Difficult People 01/11/2024
Getting “UP!” Supercharging Your Energy Becker Professional Education 01/11/2024 10 Habits of highly successful careers Becker Professional Education 01/11/2024 Prioritizing Your Tasks 01/11/2024
2023 Yellow Book Update Becker Professional Education 01/10/2024 Internal Control Considerations—Focus on Non-profits and Governmental Entities Becker Professional Education 01/10/2024 Introduction to Government/Fund Accounting Becker Professional Education 01/09/2024 Chloe Zabrek CPE Records 2023 - Current
City of Campbell
Financial Auditing Services
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Financial Auditing Services
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Appendix C – COI Evidence of Coverage
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Financial Auditing Services
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Financial Audit Services
1 www.lslcpas.com

1. FIRM NAME

LSL, LLP

2. AUTHORIZED REPRESENTATIVE
Brandon Young is the designated Engagement Partner who will serve as the primary point of contact for this proposal. He is authorized to make representations on behalf of our firm, empowered to submit the proposal, and can be reached directly by phone at (916) 562-1579 or by email at [email protected]. Please contact Brandon for any clarification or contract negotiations related to this proposal.

3. TOTAL ALL-INCLUSIVE MAXIMUM PRICE
Please find the Audit Work Cost Proposal Form and Estimate of Cost on the following pages.

4. MANNER OF PAYMENT
LSL offers two manners of payment to our government audit clients. The first manner of payment is an upfront payment for the services to be rendered, less a 10% retention. This payment is due upon execution of the professional services agreement or the engagement letter. We apply an additional 5% discount to the overall audit fee for upfront payments. The second method of payment is that 90% of the total fees are invoiced in equal, monthly installment payments commencing from the month the professional services agreement or engagement letter is executed and scheduled to conclude December each year. If the installment payment method is selected, if the scope of work is concluded earlier than December of each year, the remaining balance becomes due and payable upon completion of the annual scope of work. Under both methods, the final 10% retention is due and payable upon completion of the scope of work. The peripheral reports (e.g., the Single Audit and Appropriations Limit) are invoiced upon completion of the scope of work. Invoices will not be provided on a more than monthly interval.

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XIII.ATTACHMENT A - Audit Cost Proposal Form
Service FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 #1 City Audit and #4
Related Reports
$ $ $ $ $
#2 Single Audit and
Related Reports *
$ $ $ $ $
#3 Gann Limit
Review Report
$ $ $ $ $
#5 Measure O Audit
Report
$ $ N/A $ N/A $ N/A $ N/A
#6 West Valley Solid
Waste Management
Authority (JPA)
$ $ $ $ $
#7 TDA Article 3
Audit
$ $ $ $ $
#8 BSCC ORT Grant $ N/A $ $ N/A $ N/A $ N/A
Out of Pocket
Expenses
-Meals and Lodging
-Transportation
-Other
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total for Fiscal Year
(not-to-exceed)
Without Optional
Items
$ $ $ $ $
Optional Items
#5 Measure O Annual
Report (future years)
#9 FTR
#10 Street Report
#11 GASB 68/75
$ N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total for Fiscal Year
(not-to-exceed)
With Optional Items
51,620
4,300
240
Included
7,500
1,440
Included
Included
Included
65,100
54,200
4,520
250
7,880
1,510
4,520
Included
Included
Included
72,880
56,910
4,750
260
8,270
1,590
Included
Included
Included
71,780
59,760
4,990
270
8,680
1,670
Included
Included
Included
75,370
62,750
5,240
280
9,110
1,750
Included
Included
Included
79,130
3,600
2,500
$ Included
Included
3,780
2,630
$ Included
Included
3,970
2,760
$ Included
Included
4,170
2,900
$ Included
Included
4,380
3,050
$ Included
$71,200 $79,290 $78,510 $82,440 $86,560
*Price includes one (1) major program. Each additional program is $3,000.

City of Campbell
Financial Audit Services
Cost Proposal LSL, LLP Item 7.4
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19 XIV. ATTACHMENT B - Estimate of Cost
Name of Firm: ________________________________________________________________ Address: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ Contact Name: ________________________________________________________________ Contact Phone #: ________________________________________________________________ Contact Fax #: ________________________________________________________________ Contact E-mail: ________________________________________________________________ Auditor’s Standard Billing Rates
Position FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 Partner $ $ $ $ $
Manager $ $ $ $ $
Senior Auditor $ $ $ $ $
Staff Auditor $ $ $ $ $
Clerical $ $ $ $ $
Other $ $ $ $ $

LSL, LLP
500 Technology Drive
Suite 350
Irvine, CA 92618
Brandon Young, CPA, Partner
949-829-8299
714-672-0331
[email protected]
Director
Senior Manager
Supervisor
Experienced Staff
295 310 326 343 361
233 245 258 271 285
205 216 227 239 251
175 184 194 204 215
158 166 175 184 194
125 132 139 146 154
105 111 117 123 130
95 100 105 111 117
55 58 61 65 69
City of Campbell
Financial Audit Services
Cost Proposal LSL, LLP Item 7.4
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0 The auditor may advise management in the proposal or otherwise that the auditor’s acceptance of the engagement cannot be final until the inquiries have been made and the responses of the predecessor auditor have been evaluated.

CITY OF CAMPBELL

PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
FOR THE FISCAL YEARS ENDING JUNE 30, 2026 THROUGH 2030
CONTACT PERSONS:

GARDENYA DURAN, CPA, CGMA
[email protected]

SCOTT MANNO, CPA, CGMA
[email protected]
909.889.0871

PREPARED BY

ROGERS ANDERSON MALODY & SCOTT, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, CA 92408
LICENSE #2596
FEIN 95-2662063
JANUARY 9, 2026
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City of Campbell
Proposal for Professional Auditing Services
Table of Contents
Page
Transmittal letter .................................................................................................................................. i Technical Proposal
Experience and Qualifications ................................................................................................... 1 License to practice in California
Independence
Firm qualifications and experience
Range of services
Current municipal clients
Government Audit Quality Center
Housing Authority and Successor Agency experience
Single Audit experience
ACFR preparation
Engagement quality control
Equal opportunity employer
External quality control review
Disciplinary action
Partner and supervisory staff involvement
Staff continuity
Continuing professional education
Assigned personnel
Engagement team resumes
Prior engagements with the City of Campbell
Similar engagements with other government entities
References ................................................................................................................................. 14 Specific audit approach .............................................................................................................. 15 Engagement approach
Audit approach and proposed audit segmentation
Level of staff and approximate number of hours assigned to each segment Sample sizes (including for compliance testing)
Intelligent audit technology
Analytical procedures
Identification of potential audit problems
Auditing in a remote environment
Estimated Project Timeline and Pricing ..................................................................................... 22 Services to be provided
Proposed audit timing
Proposed cost
Exhibit A: Listing of current municipal clients
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Tel. 909-889-0871 | www.ramscpa.net | 735 E. Carnegie Dr. Suite 100, San Bernardino, CA 92408

CERTIFIED PUBLIC ACCOUNTANTS
-iJanuary 9, 2026
City of Campbell
70 N. First Street
Campbell, CA 95008
We are pleased to respond, on behalf of Rogers, Anderson, Malody & Scott, LLP (RAMS), to your request for a proposal regarding professional auditing services. As a recognized industry leader and innovator for the past 77 years, our goal has been to provide honest, high-quality, and objective results to all our clients, including governmental organizations such as yours. This dedication has fueled our firm's tremendous organic growth while ensuring personalized, client-focused services, with some governmental clients being with us for over 25 years.

At RAMS, we are committed to achieving the highest quality audit in the most effective manner possible.

We understand the complexities of performing governmental audits, which is why we have a dedicated team of auditors with specialized knowledge and experience to ensure our audits are planned and executed efficiently and effectively, providing you with the highest quality services.

We understand that the City of Campbell (the City) will review other proposals during this process, but we believe that RAMS is the exceptional choice for your audit for the following reasons:

Reputation: We have an established reputation in the governmental and not-for-profit accounting and auditing community for providing excellent, timely service with high-quality reporting.

Advanced Tools: We utilize Teammate Analytics, a suite of over 200 Computer Aided Audit Tools (CAATs), empowering our audit teams to perform powerful data analysis that enhances our substantive audit procedures and helps identify transactions or amounts indicative of potential fraud.

Risk-Based Approach: Our intelligent, risk-based audit (using CAAT) allows us to focus on key audit areas, increasing efficiency and resulting in a higher quality audit at a reasonable fee.

Experience: We currently provide auditing services to over 70 governmental agencies and not-forprofit organizations, including over 30 cities with enterprise activities and over 35 special districts.

Remote Capabilities: We have developed a comprehensive remote working environment for our audits. All our staff are equipped to work remotely effectively and efficiently, ensuring a quality audit.

Commitment to Deadlines: We are committed to meeting all reporting/auditing deadlines, resolving any issues encountered during your audit, and providing you with quality audit services.

Minimizing Stress: We understand the audit process can be stressful for you and your staff. We strive to make the audit process as trouble-free as possible by comprehensively planning and utilizing our staff and audit technologies efficiently and effectively while minimizing disruptions and miscommunications.

Personable Team: Our audit team members are personable and easy to work with, yet focused on the audit. Through open and responsive communication, we aim to minimize operational distractions for your staff while maximizing quality service.

Quality Control: We have an extensive internal quality control review process to ensure your financial reports meet the highest standards. Each report is prepared by the engagement team, reviewed by the engagement manager, and thoroughly examined by two partners and at least one professional proofreader.

Award-Winning Assistance: We have assisted many clients with the preparation of their Annual Comprehensive Financial Reports. All our clients who submitted reports for the GFOA award have received them. Our participation as a GFOA reviewer also indirectly benefits our clients in the quality review process.

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-iiValue for Investment: Our fee estimate provides a fair and reasonable investment, commensurate with the level of service provided and the experience of the audit team members. While we may not be the lowest bidder, our focus is on delivering the best value and high-quality services, pricing our engagements accordingly.

Our proposal is prepared clearly, concisely, and in accordance with the request for proposal. We believe our firm, staff, and reputation as a leader in governmental auditing exceed the need for the typical excessive information found in other proposals.

Rogers, Anderson, Malody & Scott, LLP is properly licensed to practice in California, including all the professional staff assigned to this engagement. Mrs. Gardenya Duran, Partner, and Mr. Manno, Partner are authorized to represent the firm, submit the bid, and sign a contract with the City. They can be reached at 735 E Carnegie Drive, Suite 100, San Bernardino, CA 92408 or 909.889.0871. We understand the work to be done as listed in the section of this proposal titled "Services to be Provided," and we are committed to meeting any agreed-upon time frames.

Thank you for the opportunity to present our proposal to the City. We are committed to exceeding your expectations of an auditor and believe this proposal provides you with comprehensive information about our firm, service team members, and our customized audit approach. We look forward to establishing a long and mutually beneficial relationship with the City. Please feel free to contact us if you have any questions regarding this proposal.

Respectfully yours,

ROGERS, ANDERSON, MALODY & SCOTT, LLP

Gardenya Duran, CPA, CGMA
Partner
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City of Campbell
Proposal for Professional Auditing Services
-1-
Experience and qualifications
License to practice in California
Rogers, Anderson, Malody & Scott, LLP is licensed to practice in the State of California. Our key professional staff, which includes the partners, managers, and supervisors, are all certified public accountants licensed to practice in the State of California and follow all applicable Board of Accountancy standards.

Independence
Rogers, Anderson, Malody & Scott, LLP is independent of the City and any component units, as defined by general standard number two of the generally accepted auditing standards, and by the second general standard for government auditing in the U.S. Government Accountability Office’s Government Auditing Standards.

Working paper retention
Rogers, Anderson, Malody & Scott, LLP will retain all workpapers and reports related to the audit for a minimum of seven (7) years, unless we are notified by the City of Campbell to extend that period.

Firm qualifications and experience
We were established in 1948, located at 735 E. Carnegie Drive, Suite 100, San Bernardino, California.

As a comprehensive accounting firm, we offer a full spectrum of services. With over 77 years of public practice experience, we are one of the oldest, most trusted, and respected CPA firms in Southern California, specializing in auditing, accounting, and management advisory services for governmental agencies and not-for-profit organizations. Annually, we dedicate over sixteen thousand hours to our audit practice, encompassing cities, redevelopment successor agencies, water districts, other special districts, not-for-profit corporations, and joint power authorities. Our focus on government accounting and auditing is a primary commitment, ensuring we deliver top-quality services to local governments.

We recognize the importance of engaging auditors with a deep understanding of the complex and everevolving accounting and compliance issues that governments face today. Our firm boasts a rich history in governmental accounting and auditing, equipping us with invaluable experience, in-depth knowledge, and the technical expertise necessary to conduct high-quality governmental audits. This expertise enables us to provide exceptional service and effective solutions at competitive fees, reflecting our value to clients. Furthermore, our active participation in various industry associations ensures we stay updated on the latest issues in governmental accounting, auditing, and operations. We promptly share any valuable insights with our clients to enhance their benefit.

Our firm has a total staff of 60 people, which includes sixteen certified public accountants. The staff consists of six partners, six managers, fifteen supervisors/senior accountants, twenty-seven staff accountants, and six support staff. The audit staff consists of thirty-six members who devote over 80% of their time to municipal engagements. The engagement team assigned to the City’s engagement will consist of the following full-time staff: one audit partner, one audit manager, one audit supervisor/senior, and two to three staff auditors.

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City of Campbell
Proposal for Professional Auditing Services
-2-
Experience and qualifications (continued)
Range of services
In addition to auditing services for governmental entities, our firm offers a wide range of other services, including:
 SB 341 compliance (Successor Agencies)
 Internal control agreed-upon procedures
 Finance director and accounting support services
 Studies and evaluations of financial condition and fiscal policies  Development and review of accounting policies and procedures  Cash management studies
 Assistance with financing and public bond offerings
Additionally, we provide accounting, auditing, attest, and consulting services to both for-profit and notfor-profit entities. Our services also include tax preparation and consulting for individuals, corporations, and partnerships. We offer complimentary tax consultation services to our municipal audit clients.

Current Municipal Clients
A listing of our current municipal clients can be found at the end of this proposal as Attachment A.

Governmental Audit Quality Center
As a member of the American Institute of CPAs Governmental Audit Quality Center (GAQC), we at RAMS are dedicated to maintaining the highest quality standards. Our commitment to the GAQC membership requirements includes designating a partner responsible for the quality of our governmental audit practice, establishing rigorous quality control programs, conducting annual internal inspections, and publicly sharing our peer review report findings. Our goal is to continually enhance our quality initiatives to provide the highest quality audit services possible.

Being a part of the GAQC also grants us access to comprehensive resources that further improve the quality of your audit. Our membership ensures we receive timely information on technical, legislative, and regulatory matters, which we apply to your audit to ensure compliance with current standards and regulatory changes, benefiting our clients.

Housing Authority and Successor Agency experience
Over the past five fiscal years, the firm has audited the Housing Authorities and Successor Agencies for the following entities:

City of South Pasadena City of San Bernardino
City of Thousand Oaks City of La Verne
City of San Marcos City of San Jacinto
City of Moorpark City of Twentynine Palms
City of Fillmore City of La Mesa
City of Sierra Madre City of Rosemead
City of El Cajon City of Hawthorne
Town of Yucca Valley City of West Covina
City of Poway City of Claremont

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City of Campbell
Proposal for Professional Auditing Services
-3-
Experience and qualifications (continued)
Single audit experience
Many of our municipal clients, as well as other governmental and not-for-profit clients, require audits in accordance with Uniform Guidance. Recently, we have conducted single audits for numerous entities.

Our specialized Single Audits Team is led by Partners and Managers who hold Intermediate and Advanced Single Audit Certifications from the AICPA, ensuring a successful and thorough engagement.

ACFR preparation
We have extensive experience in preparing Annual Comprehensive Financial Reports (ACFR). For the fiscal years ending June 30, 2023, and 2024, our team prepared over 20 ACFRs, with each entity receiving the Certificate of Achievement for Excellence in Financial Reporting from the GFOA. For the fiscal year ending June 30, 2025, we prepared over 25 ACFRs for our clients for submission to the GFOA. Additionally, we have assisted many cities and special districts in developing their first-year reports for submission. Four of our audit partners and five of our managers/supervisory staff serve as technical reviewers for the GFOA award program. We ensure all ACFRs comply with the GFOA certificate program checklist and address any prior year comments to guarantee thorough and compliant reports.

Engagement quality control
Our internal quality control review process ensures your audit meets the highest standards. Financial reports prepared by a senior member of the engagement team undergo multiple levels of review: first by the engagement manager/supervisor, followed by the engagement partner, and finally a technical review by the engagement Quality Control partner. Additionally, all reports are proofread by at least one professional staff member. All audit workpapers are reviewed by the in-charge auditor and the partner in charge of the engagement.

Equal Opportunity Employer
Our firm is an equal opportunity employer committed to providing employment opportunities to all qualified individuals, regardless of race, color, sex, religion, national origin, or disability. Our diverse staff represents a wide range of cultures and ethnic backgrounds. We offer advancement opportunities based on ability, skill, and desire to progress within the firm.

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City of Campbell
Proposal for Professional Auditing Services
-4-
Experience and qualifications (continued)
External quality control review
As a member of the AICPA Private
Companies Practice Section, our
firm has actively participated in the
“Peer Review” program since
1993. Every three years, an
independent firm of certified public
accountants conducts an external
review of our firm. This
participation ensures that our
engagements, firm policies, and
audit procedures consistently meet
the standards set by the AICPA,
the Yellow Book, and the California
State Board of Accountancy.

Notably, throughout our
participation in this program, our
firm has consistently received pass
ratings from the peer reviewers.

During each peer review, an
independent firm assesses our
policies and procedures and
inspects a representative sample
of engagement workpapers and
reports, including those related to
governmental entities and
engagements subject to the
Uniform Guidance. For the year
ended November 30, 2023, our
firm received a pass rating. This
rating indicates that our auditing
practices are suitably designed
and complied with, providing
reasonable assurance of
performing and reporting in
accordance with applicable standards. The results affirm that our custom audit approach and procedures are technically sound and compliant with all relevant standards.

Disciplinary action
Our firm has a spotless record with no disciplinary actions taken or pending against it by state regulatory bodies or professional organizations. Additionally, there has never been any pending or settled litigation, nor any civil or criminal investigations. We are also not aware of any federal or state desk reviews or field reviews of our audits in the last three years.

Our firm has no record of substandard work.

In addition to external quality control reviews, our firm conducts annual in-house monitoring procedures that mirror the external peer review processes, ensuring ongoing compliance and quality in our audit and attest engagements.

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City of Campbell
Proposal for Professional Auditing Services
-5-
Experience and qualifications (continued)
The quality of service you receive hinges on the capabilities of the individuals assigned to your engagement and how effectively these personnel resources are organized. Our professionals are highly trained, knowledgeable, and have a deep understanding of the environment in which governmental and not-for-profit entities operate. This expertise is crucial for providing the City with an effective and efficient audit.

Our engagement team brings significant experience and a practical understanding of governmental accounting and auditing, combined with a broad business perspective. Each member has access to a wide range of technical resources and knowledge bases, enabling them to offer practical observations and effective solutions to the City.

Partner and supervisory staff involvement
Our partners and supervisory staff are actively and continuously involved in all aspects of their engagements. We believe that their involvement is a key aspect of the overall audit process. This includes being on-site for interim and year-end fieldwork, ensuring a proper, efficient, and effective audit with minimal disruption to your staff. The time spent on-site by partners and supervisory staff allows them to understand the City’s accounting processes and procedures thoroughly. This understanding helps in evaluating and developing opportunities for efficiency and offering practical advice to improve your accounting processes and procedures.

All professionals on this engagement have extensive experience with audits similar to the City’s, eliminating the need for the City to train our team.

Staff continuity
Maintaining continuity of audit staff is a principal concern for our firm. To retain our staff, we offer competitive wages, advancement opportunities, generous medical packages, a retirement plan, bonus opportunities, and educational benefits. While we strive for continuity, we acknowledge that staff changes may occur. We plan to provide consistent staff year to year, which is in the best interest of both the City and our firm. Continuity ensures an orderly, efficient, and less disruptive audit experience.

In case of staff changes, principal supervisory and management staff, including engagement partners, managers, other supervisory staff, and specialists, may be replaced if they leave the firm or are promoted. However, the City reserves the right to accept or reject replacements.

Due to the significant involvement of our partners in all engagements, any staff transition would have a minimal impact on audit efficiency and effectiveness in subsequent years. Other audit personnel may be changed at the discretion of the City provided that the replacements have substantially the same or better qualifications/experience.

Continuing Professional Education
Our auditor specialists stay current in this technical practice area by adhering to, and typically exceeding, the continuing professional education requirements of Government Auditing Standards and the State Board of Accountancy guidelines. All professionals at our firm participate in continuing professional education (CPE) programs sponsored by various organizations, including the Government Finance Officers Association, the American Institute of Certified Public Accountants, the California State Society of Certified Public Accountants, the California Society of Municipal Finance Officers, and the Association of Government Accountants. These programs ensure our clients are serviced by the best-trained and most proficient government auditors and accountants available. We also provide inhouse training conducted by our partners and senior staff using published resources. All staff are required to attend fraud and ethics training. Our goal is to provide professional staff with continuing education that exceeds the minimum standard of 80 hours over two years.

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Experience and qualifications (continued)
According to our firm’s Quality Control document and Government Auditing Standards (GAS), all staff working on audits subject to GAS must complete CPE in line with GAS standards, requiring 24 hours directly related to governmental accounting and auditing.

To further increase our technical knowledge, we utilize resources such as the Governmental Audit Quality Center Annual Webcast Update, other relevant seminars, and monthly publications from the AICPA, the GFOA, and other sources. We also attend conferences and seminars sponsored by the GFOA, California Society of Municipal Finance Officers, California State Society of Certified Public Accountants, and the California Special Districts Association.

Assigned personnel
Our goal is to provide you with capable, competent, and personable individuals who possess an extensive background in governmental accounting and auditing and general business practices. This allows us to offer practical solutions and technical support, keeping you at the forefront of governmental accounting and helping you navigate complex issues.

Our engagement team has the managerial and supervisory experience to provide the City with a comprehensive audit of the highest quality while focusing on personal service. The resumes of the key engagement personnel assigned to the audit are presented below. These individuals will be assigned to the engagement for the entire contract period.

Gardenya Duran, CPA, CGMA – Partner, Engagement Partner Gardenya will serve as the Engagement Partner for your municipal audit. She is licensed to practice as a certified public accountant in the State of California and has over 15 years of practical, governmental accounting and auditing experience. As the engagement partner, Gardenya will be responsible for the overall quality of the engagement, ensuring it is performed efficiently and effectively. She will directly oversee all engagement staff, assist in planning and performing the engagement, and review all workpapers and required reports prepared during the engagement.

Gardenya, like all our partners, is a working partner and will be actively involved in all aspects of the engagement, ensuring a high standard of service and attention to detail throughout the process.

Scott W. Manno, CPA, CGMA – Partner, Concurring Partner Scott will be the Concurring Partner for the engagement. He is licensed to practice as a certified public accountant in the State of California and brings over 29 years of public accounting experience, specializing in serving local governments. As the concurring partner Scott will work directly with Gardenya in planning and performing the engagement. In addition, he will provide technical consultation for the engagement team.

Brianna Schultz, CPA - Partner, Quality Control Reviewer Brianna will be the Quality Control Reviewer. She is licensed to practice as a certified public accountant in the State of California. She has over 15 years of practical, governmental accounting and auditing experience. Brianna will be responsible for the final quality control review of all released opinions and related reports.

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Experience and qualifications (continued)
Evelyn Morentin-Barcena, CPA – Audit Manager
Evelyn is an Audit Manager with the firm. She is licensed to practice as a certified public accountant in the State of California. Evelyn has over 10 years’ experience in providing accounting and auditing services for municipalities, special districts and various not-for-profit organizations. As an audit manager, she will work directly with the audit in-charge and partner, while supervising the engagement team during all phases of the engagement. In conjunction with the audit in-charge, she will also oversee the preparation of any required reports.

Daniel Hernandez – Audit Senior
Daniel is an Audit Senior with our firm, bringing three years of experience in providing accounting and auditing services to municipalities, special districts, and various not-for-profit organizations.

As an Audit Senior, Daniel will work closely with the engagement partner and manager. He will be responsible for planning the audit, supervising the staff assigned to the engagement, and reviewing all workpapers prepared for the engagement. Additionally, he will oversee the preparation of any required reports, ensuring thoroughness and compliance with all standards.

Mr. Terry Shea, CPA – Consultant
Terry is a retired municipal audit partner with the firm providing consulting services. He is licensed to practice as a certified public accountant in the State of California. Terry has over 40 years of public accounting experience and has provided accounting, auditing, and consulting services for municipalities, special districts, water agencies, and various not-for-profit organizations. Terry will assist on an as needed basis with the engagement. In addition, he will provide technical consultation for the engagement team.

Staff level accountants
All our staff accountants working on governmental audits are highly qualified to perform these audits. Prior to the audit season, our staff undergoes rigorous training that covers all aspects of our audit process and programs, ensuring they have a solid foundation before starting fieldwork. Each staff member is encouraged to take on increased responsibilities in engagements they have previously worked on, enabling them to grow and continually enhance their skills and knowledge.

In summary, we emphasize the credentials of the professionals who will be directly responsible for the quality of service you will receive. Additionally, our audit team possesses an important, albeit intangible, attribute: the professionals assigned to your audits have previously worked together as a multi-disciplined team. This ensures a smooth, efficient, and effective audit process. We are committed to allocating the necessary resources to ensure continuity of personnel throughout our relationship with the City.

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Experience and qualifications (continued)
Gardenya Duran, CPA, CGMA
Engagement Partner
Professional experience
Mrs. Duran joined Rogers, Anderson, Malody & Scott, LLP in 2010. She works primarily on audits of governmental agencies, small to mid-sized businesses, and nonprofit organizations. Mrs. Duran has served as a technical reviewer for the GFOA ACFR Award program. Mrs. Duran specializes in advisory services gearing towards helping local governments restore their finance departments and compliance after staffing disruptions for governments, municipalities and various non-profit organizations Prior to joining our firm, she was an Information Systems Technician in the U.S. Navy for nine years.

Education/licenses
Bachelor of Science – California State University, San Bernardino Certified Public Accountant – State of California
Chartered Global Management Accountant – American Institute of Certified Public Accountants Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):

City of Hawthorne* City of El Cajon* City of Aliso Viejo City of Capitola City of Poway* City of San Jacinto* City of San Bernardino City of Goleta City of Canyon Lake City of San Marcos* City of Redondo Beach* City of West Covina* City of La Mesa* City of Thousand Oaks* City of Claremont* City of Chula Vista* Continuing professional education
Mrs. Duran has completed over 145 hours of continuing professional education courses in the past three years of which the following select courses are relevant to this engagement:
 GASB Update - Recently issued Pronouncements
 Fundamental of Preparing an Annual Comprehensive Financial Report  Single Audit Update
 Audits of State and Local Governments
Professional affiliations
Mrs. Duran is a member of the following professional organizations:
 American Institute of Certified Public Accountants (AICPA)  California Society of Certified Public Accountants (CalCPA)  Government Finance Officers Association (GFOA)
 California Society of Municipal Finance Officers (CSMFO)

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Experience and qualifications (continued)
Engagement team resumes
Scott W. Manno, CPA, CGMA
Concurring Partner
Professional experience
Mr. Manno began his career with Thomas, Bigbie and Smith in 1996 after serving in the United States Army. He spent six years with the firm primarily working on audits of municipalities, special districts and redevelopment agencies as well as various not-forprofit organizations. He joined Rogers, Anderson, Malody & Scott, LLP in July 2001.

Currently, Mr. Manno serves as a technical reviewer for the GFOA ACFR Award program and he is also on the GFOA Special Review Executive Committee. In addition, he is part of the California State Society of Certified Public Accountants Governmental Accounting which meets periodically to discuss current events, pronouncements, etc.

Education/licenses
Bachelor of Science, Business Administration – California State University, San Bernardino Certified Public Accountant – State of California
Chartered Global Management Accountant – American Institute of Certified Public Accountants Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):

City of El Cajon* Town of Yucca Valley City of La Mesa* City of Santee City of Sierra Madre* City of Santa Paula* City of Eastvale City of 29 Palms City of Moreno Valley* City of Beaumont* City of San Marcos* City of Loma Linda* City of Live Oak* City of Perris* City of Exeter* City of Woodlake* City of San Jacinto* City of Menifee City of Rolling Hills Est. City of Ojai* Mr. Manno has completed over 183 hours of continuing professional education courses over the past three years of which the following select courses are relevant to this engagement:
 State and Local Government Audit Planning Considerations  Audits of State and Local Governments
 2025 Government Accounting and Auditing Update
 Auditing Internal Controls for Governments
Professional affiliations
Mr. Manno is a member of the following organizations:
 American Institute of Certified Public Accountants (AICPA)  California Society of Certified Public Accountants (CalCPA)  Association of Government Accountants (AGA)
 Association of Certified Fraud Examiners (ACFE)
 Government Finance Officers Association (GFOA)
 California Special Districts Association (CSDA)
 California Society of Municipal Finance Officers (CSMFO)

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Experience and qualifications (continued)
Brianna Schultz, CPA, CGMA
Quality Control Partner
Professional experience
Mrs. Schultz began her career with Rogers, Anderson, Malody & Scott, LLP in 2014, and had over three years’ experience with another public accounting firm serving the same industry. Currently, Mrs. Schultz serves as a technical reviewer for the GFOA ACFR Award program. During her time with the firm, she has worked primarily on audits of municipalities, special districts and redevelopment agencies, as well as various nonprofit organizations.

Education
Bachelor of Science – California State University, San Bernardino Certified Public Accountant – State of California
Chartered Global Management Accountant – American Institute of Certified Public Accountants Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):

City of Menifee City of Aliso Viejo City of Claremont* City of Chino* City of Glendora* City of Rolling Hills Est. City of San Bernardino City of Sierra Madre* City of La Verne* City of Loma Linda* City of South Pasadena* City of West Covina* City of La Mesa* City of Baldwin Park City of El Cajon* City of Hawthorne* Mrs. Schultz obtained the AICPA’s Advanced Single Audit Certificate in 2019 and the Intermediate Single Audit Certificate in 2017. She served as the contract Interim Accounting Manager for the City of Glendora in 2016 and the Senior Accountant for the City of Rancho Cucamonga in 2015. Additionally, she is a reviewer for the GFOA ACFR Program.

Continuing professional education
Mrs. Schultz has completed over 160 hours of continuing professional education courses over the past three years of which the following select courses are relevant to this engagement:
 Governmental Accounting and Auditing Conference
 Single Audit Update
 How to Implement GASBS 87 and Maintain Compliance
Professional Affiliations
Mrs. Schultz is a member of the following organizations:
 American Institute of Certified Public Accountants (AICPA)  California Society of Certified Public Accountants (CalCPA)  Government Finance Officers Association (GFOA)
 California Society of Municipal Finance Officers (CSMFO)

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Experience and qualifications (continued)
Evelyn Morentin-Barcena, CPA
Audit Manager
Professional experience
Evelyn is an Audit Manager with the firm. She has over 10 years’ experience in providing accounting and auditing services for municipalities, special districts and various nonprofit organizations. As an audit manager, she will work closely with the engagement partner and manager and be responsible for planning the audit, supervising the staff assigned to the engagement, and performing reviews of all workpapers prepared for the engagement. In addition, she will also be responsible for the preparation of any required reports. Currently, Evelyn serves as a technical reviewer for the GFOA ACFR Award program.

Education
Bachelor of Science – California State University, San Bernardino Certified Public Accountant – State of California
Intermediate Single Audit Certificate – AICPA
Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):

City of Menifee City of Thousand Oaks* City of San Jacinto* City of San Marcos* City of Calabasas* Town of Yucca Valley City of San Bernardino City of Calimesa City of Goleta City of Signal Hill* City of Chula Vista* Town of Windsor* City of Carpinteria City of Lawndale City of Live Oak* City of Hawthorne* Continuing professional education
Ms. Morentin-Barcena has completed over 120 hours of continuing professional education courses over the past two years of which the following select courses are relevant to this engagement:
 Governmental Accounting and Auditing Update: Single Audit Update  2025 Annual Governmental GAAP Update
 GASB Update
Professional affiliations
Ms. Morentin-Barcena is a member of the following professional organizations:
 American Institute of Certified Public Accountants (AICPA)  California Society of Certified Public Accountants (CalCPA)  Government Finance Officers Association (GFOA)
 California Society of Municipal Finance Officers (CSMFO)

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Experience and qualifications (continued)
Daniel Hernandez
Audit Senior
Professional experience
Mr. Hernandez joined Rogers, Anderson, Malody & Scott, LLP in 2023, primarily providing accounting and auditing services for municipalities, special districts, and various nonprofit organizations. As an audit senior, he will work closely with the engagement partner and manager and be responsible for planning the audit, supervising the staff assigned to the engagement, and performing reviews of all workpapers prepared for the engagement. In addition, he will also be responsible for the preparation of any required reports.

Education
Bachelor of Arts in Business Administration - California State University, San Bernardino Related professional experience
Partial listing of relevant governmental agencies served (*includes enterprise fund accounting):

City of Goleta City of Menifee City of Signal Hill
City of Murrieta* City of San Marcos* City of Exeter
City of Carpinteria* City of Live Oak* City of El Cajon* City of Loma Linda City of Los Alamitos* City of Woodlake Continuing professional education
Mr. Hernandez has completed over 92 hours of continuing professional education courses over the past two years of which the following select courses are relevant to this engagement:
 GFOA Annual Comprehensive Financial Report Preparation Training  GASB 101
 GAAP Update
Professional affiliations
Mr. Hernandez is a member of the following professional organizations:
 California Society of Certified Public Accountants (CalCPA)  California Society of Municipal Finance Officers (CSMFO)

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Experience and qualifications (continued)
Prior Engagements with the City of Campbell
We have not had any engagements with the City within the past five (5) years.

Similar Engagements with Other Government Entities
Our firm has provided similar services to various public section agencies over the past three years. Below is a listing of those most similar to the City of Campbell.

Entity: City of Chula Vista
Scope of work: Financial Audit/ACFR*/Successor Agency/Single Audit/Measure Audits/BSCC Audit
Date: Years ending June 30, 2024- present
Engagement partner: Mrs. Gardenya Duran
Total hours: Approximately 500 hours each year
Contact person: Mr. Sarah Schoen, Finance Director (619) 409-3818, [email protected]
Entity: City of Menifee
Scope of work: Financial Audit/ACFR*
Date: Years ending June 30, 2014 - present
Engagement partner: Mr. Scott Manno
Total hours: Approximately 350 hours each year
Contact person: Ms. Ann-Marie Etienne, Finance Manager, (951) 672-6777, [email protected]
Entity: City of Signal Hill
Scope of work: Financial Audit/ACFR*/Successor Agency/Single Audit/Measure Audits Date: Years ending June 30, 2019 - present
Engagement partner: Mrs. Gardenya Duran
Total hours: Approximately 250 hours each year
Contact person: Ms. Siamlu Cox, Adminstrative Services Officer/Finance Director, (562) 989-7312, [email protected]
Entity: City of San Marcos
Scope of work: Financial Audit/ACFR*/Successor Agency/Single Audit/Measure Audits Date: Years ending June 30, 2010 - present
Engagement partner: Mr. Scott Manno
Total hours: Approximately 250 hours each year
Contact person: Ms. Donna Apar, Finance Director, (760) 744-1050, ext. 3133, [email protected]
Entity: City of San Jacinto
Scope of work: Financial Audit/ Single Audit/Successor Agency Date: Years ending June 30, 2011 - present
Engagement partner: Mr. Scott Manno/Mrs. Gardenya Duran Total hours: Approximately 350 hours each year
Contact Person:

Mr. Tom Prill, Deputy City Manager, (951) 487-7330,
[email protected]
*GFOA award recipients
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References
Our firm has proudly partnered with a wide range of government entities over the past five years, including cities, successor agencies, special districts, and Federal Single Audit engagements. The breadth of our client base reflects our deep expertise in public sector auditing and our ability to deliver high-quality, reliable service tailored to each organization’s unique needs.

Because of the large number of government clients we have served, providing a complete listing for this proposal would not be practical. However, we are pleased to provide detailed client references for five current clients, including contact information, the nature of services performed, and years of service, when such information is explicitly necessary for evaluation. This ensures that the requesting agency receives the most relevant examples of our experience. If a full client list is determined to be absolutely necessary, we can provide it upon request.

Entity: Town of Yucca Valley
Scope of work: Financial Audit/ACFR*/Successor Agency
Date: Years ending June 30, 2008 - present
Engagement partner: Mr. Scott Manno
Total hours: Approximately 350 hours each year
Contact person: Mr. Curtis Yakimow, Town Manager (760) 369-7207 Entity: City of Thousand Oaks
Scope of work: Financial Audit/ACFR*/Successor Agency/Single Audit Date: Years ending June 30, 2018 - present
Engagement partner: Mrs. Gardenya Duran
Total hours: Approximately 420 hours each year
Contact person: Ms. Elisa Quezada, Accounting Manager, (805) 449-2216, [email protected]
Entity: City of Santa Paula
Scope of work: Financial Audit/ACFR
Date: Years ending June 30, 2021 - present
Engagement partner: Mrs. Gardenya Duran
Total hours: Approximately 300 hours each year
Contact person: Ms. Christy Ramirez, Finance Director, (805) 933-4211, ext.204, [email protected]
Entity: City of San Dimas
Scope of work: Financial audit/ACFR*/Single Audit
Date: Years ending June 30, 2021- present
Engagement partner: Mrs. Gardenya Duran
Total hours: Approximately 350 hours each year
Contact person: Mr. Michael O'Brien Finance Director, (909) 394-6200, [email protected]
Entity: City of San Jacinto
Scope of work: Financial Audit/ Single Audit/Successor Agency Date: Years ending June 30, 2011 - present
Engagement partner: Mr. Scott Manno/Mrs. Gardenya Duran Total hours: Approximately 350 hours each year
Contact Person: Mr. Tom Prill, Deputy City Manager, (951) 487-7330, [email protected]
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Specific audit approach
Engagement approach
Our engagement approach for your audit is meticulously designed to ensure measurable progress and successful outcomes. This involves setting clear goals and maintaining frequent communication between the engagement partner, lead auditor, and the team. Our approach leverages our extensive knowledge and expertise in governmental accounting and auditing to identify and address key audit and accounting risks specific to the government sector. Each year's audit includes a complete reassessment of the control environment, enabling us to respond to any changes in risk assessment effectively.

Key components of our engagement approach
Knowledge and Experience: With over 77 years of auditing governmental entities of all sizes, we possess in-depth knowledge of the governmental environment. This enables us to perform efficient and effective audits, conduct detailed risk assessments, and identify significant audit risk areas within the City's control environment.

Intelligent Design: Utilizing advanced audit software and data analytic tools (Engagement and Teammate Analytics), we can analyze large volumes of data quickly, enhancing both the efficiency and effectiveness of our audits.

Professional Oversight: Our partners, managers, and supervisors have extensive experience in governmental audits, allowing us to design and execute audit strategies that are both effective and efficient.

Timeliness: Meeting deadlines is a professional commitment for us. We ensure that all required and agreed-upon deadlines are met.

Open Communication: Maintaining open lines of communication with all parties involved, including City management and staff, helps eliminate surprises and ensures a smooth audit process.

Availability: Our engagement team members are available year-round for any questions or additional consultation. City staff will have direct access to the partner, manager, and supervisory staff during and after the engagement.

Cost-Effectiveness: Our customized audit approach and experienced auditors help reduce overall audit costs while delivering effective audits and high-quality reports.

Risk-Based Approach: We perform detailed risk assessment procedures to understand the City and its environment, including internal controls. This forms the basis for our assessment of risks of material misstatement at the financial statement and relevant assertion levels. We may perform further audit procedures concurrently with risk assessment as necessary.

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Specific audit approach (continued)
As stated in our proposal, our primary objective is to conduct an audit of the financial statements in accordance with required auditing standards and to express an opinion on those statements. Our engagement approach also offers several value-added benefits at no additional cost:

Efficiency and Minimal Disruption: Our audits are designed to be efficient and effective, minimizing disruption to office operations.

Practical Observations and Recommendations: We provide practical observations and recommendations on internal control issues, accounting standards implementation, and related policies and procedures.

Operating Efficiency Opportunities: We identify opportunities for operating efficiencies that can help reduce the City's operating costs.

By employing this comprehensive engagement approach, we ensure that the City's audit is conducted with the highest standards of quality and professionalism.

Audit approach and proposed audit segmentation
The following is a summary of the audit team’s approach for your engagement. The audit will be divided into the following segments:

Segment 1 - Interim Testing: Planning, Pre-Audit Administration, and Internal Control Testing Objectives: During this phase, our principal objectives will be to gather information about the City and its environment, including its internal controls over financial reporting.

Approach:
 Initial Meetings:
o Meet with the City’s staff to determine convenient dates to begin our audit and to discuss the assistance to be provided by the City’s staff.
 Engagement Team Brainstorming:
o Hold brainstorming sessions with engagement team members to discuss the susceptibility of the City’s financial statements to material misstatement and fraud.  Review and Evaluation:
o Review and evaluate the City’s accounting and reporting processes by examining the prior year's audit workpapers, City-prepared documents such as budgets, in-house financial reports, previously issued ACFR, organizational charts, manuals, programs, policies and procedures manuals, and minutes of governance meetings.
o Perform analytical procedures to enhance our understanding of the City and identify areas that may need further assessment and additional testing.
 Regulatory Review:
o Review and retain copies of any pertinent local, state, and federal statutes, regulations, or charters that apply to the City.
o Obtain a full population of potential compliance areas to perform testing and select a random or stratified sample, utilizing our data analytic software, to ensure a true representation of the appropriate compliance requirements are being selected.

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Specific audit approach (continued)
 Internal Control Evaluation:
o Obtain a thorough understanding of the City’s internal controls over financial reporting and compliance by documenting key internal control components, utilizing questionnaires, walkthroughs, inquiries, and observation.
o Evaluate the design of controls relevant to the audit and test controls, if control risk is to be assessed below maximum, by selecting a sample of transactions and reviewing supporting documentation.
 Management Communication:
o Document and review any findings noted during the testing of internal controls with management.
o Provide a preliminary management letter with recommendations for improving any weaknesses in operations and suggestions for enhancing the efficiency of the City’s operations.  Audit Data Analytics:
o Utilize powerful audit data analytic software to analyze large amounts of data quickly and focus on areas/transactions that are red flagged.

IT General Controls:
 Security Access Controls:
o Evaluate general system security settings, password parameters, processes for adding, deleting, and changing security access, access capabilities of various user types, access controls to networks and financial applications, data file access controls, and physical access to networks and servers.
 Computer Operations:
o Evaluate backup and recovery processes and review procedures for identifying and handling operational problems.
 System Development and Changes:
o Evaluate processes related to system development and system changes, if applicable.  Application Testing:
o Determine the necessity of testing application controls based on professional judgment during the planning stages of the engagement.

Audit Team: This phase will be performed by the audit senior and two to three staff accountants, under the direct supervision of the audit manager and partner.

This comprehensive approach ensures a thorough understanding of the City's financial environment and internal controls, setting a solid foundation for the audit.

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Specific audit approach (continued)
Segment 2 - Year-End Testing: Substantive Testing
Objectives: During this phase, our primary objectives will be to assess the risk of material misstatement at the financial statement level and specific assertions, design overall responses to assessed risks and further audit procedures, perform substantive tests, and complete the audit while evaluating audit findings, if applicable.

Approach:
 Risk Assessment and Audit Plan Development:
o Identify significant risks and develop a detailed audit plan using the results from Segment 1.  Design and Perform Substantive Tests:
o Design substantive tests of account balances tailored to the City’s operations and assessed level of risk. Substantive procedures will include testing material balance sheet accounts, material revenue and expenditure/expense accounts, along with various analytical procedures as necessary.
o Confirm various accounts with outside parties (e.g., cash, investments).  Risk Evaluation:
o Determine whether our testing supports the initially assessed level of risk at both the financial statement level and the assertion level.
 Audit Adjustments:
o If any proposed audit adjustments are noted, we will discuss and explain them in detail with the appropriate level of management before posting.

Audit Team: This phase will be performed by the senior accountant and two to three staff accountants, under the direct supervision of the audit manager and partner.

Segment 3 - Reporting: Report Preparation and Audit Conclusion (Workpaper Review) Objectives: During this phase, our principal objectives will be to evaluate whether the financial statements, as a whole, are free from material misstatement, form an opinion(s), and issue our report.

Approach:
 Material Misstatement Evaluation:
o Determine, based on our substantive testing and other procedures, whether the financial statements, as a whole, are free of material misstatement. This will provide the basis for our opinion(s).
 Workpaper Review:
o Review all audit workpapers to ensure the audit was performed in accordance with required standards (GAAS, GAGAS, etc.) and prepare drafts of all required reports by the agreed-upon dates.
 Quality Control Review:
o Conduct an independent review of the financial statement draft by the engagement’s quality control partner and issue all reports by the agreed-upon dates.

Audit Team: This phase will be performed by the audit senior and one staff accountant, under the direct supervision of the audit manager and partner. Additionally, the engagement’s quality control partner will perform a detailed quality control review of the financial statements.

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Specific audit approach (continued)
Customization and Communication: The procedures listed above are general. After our initial review of the City and our detailed risk assessment, we will customize the engagement to address the specifics of the City and the audit itself. We will determine which procedures to perform based on our risk assessment.

All our audits are customized to each entity, ensuring a complete, effective, and efficient audit. Our approach is founded on open communication, a strong knowledge of the City's operations, and detailed planning at the initial stages of the audit.

Timeliness and Resource Allocation: Our firm is dedicated to performing a timely audit engagement.

Prior to the start of the audit, we will meet with City staff to agree on adequate timeframes for the performance of the audit and the release of the financial statements. We will allocate the necessary resources to meet these agreed-upon timeframes.

Level of staff and approximate number of hours assigned to each segment Segment Partner Manager Senior Staff Total
Segment 1 14 9 21 100 144 Segment 2 22 18 33 131 204 Segment 3 20 18 29 30 97 Totals* 56 45 83 261 445 * = excludes Single Audit hours and ACFR prep Sample sizes (including for compliance testing)
Our sample sizes will be determined in accordance with the AICPA's Audit and Accounting Guide, Audit Sampling, and will be selected using professional judgment or our TeamMate Analytics software, depending upon circumstance, as permitted by Statement on Auditing Standards. Our methods are designed to provide the most audit coverage without expending excess time. Our sample sizes will depend upon our preliminary assessment of control risk, our planned substantive testing and analytical procedures as well as our professional judgement.

We utilize our Computer Aided Audit Tools (CAAT) software, Teammate Analytics, to draw our audit samples. The software allows us to generate random samples, systematic samples, stratified samples, attributes samples as well as monetary unit samples (also called probability-proportional-to-size or dollar unit sampling).

Intelligent audit technology
Our audits leverage advanced technology through powerful software tools such as Engagement and Teammate Analytics. Additionally, all audit team members are connected wirelessly, enabling real-time information sharing. The benefits of our audit technologies include:
 Teammate Analytics: This suite of over 200 dynamic Computer Aided Audit Tools (CAATs) allows us to analyze large amounts of data in seconds. Using data directly from the City, we can search for duplicate checks, detect transactions during unusual hours or on holidays/weekends, perform Benford’s Law analysis, and identify instances where a vendor has issued multiple invoices with sequential references, among many other tests. This empowers our audit teams to perform powerful and meaningful data analysis, enhancing our value-added services.

Item 7.4
Tuesday, April 21, 2026 189 of 774
City of Campbell
Proposal for Professional Auditing Services
-20-
Specific audit approach (continued)
 Customized Analytical Schedules: We create our own analytical schedules to easily compare current balances to prior year balances and current vs. budget balances, significantly reducing the time required from City staff.
 Real-Time Financial Statement Analysis: Once your trial balances and financial statements are entered into our software, we can review your financial statements in the field, allowing us to notice and address any variances immediately.
 Linked Financial Statement Schedules: We link financial statement schedules directly to our audit software trial balances, enabling us to provide the City with fund financial statements almost immediately after importing the trial balances.
 Audited Trial Balances: We provide the City with audited trial balances that show the coding of the financial statement schedules, making it easier for City staff to review. These reports include each account coded to a specific financial statement line item/function and journal entries posted during the audit.

Analytical Procedures
To effectively utilize analytical procedures, industry background and knowledge are essential. With our firm’s extensive experience and qualified staff, we possess the necessary knowledge to apply analytical procedures efficiently throughout our audit of the City.  Interim Phase:
o Compare current and prior year unadjusted balances to identify areas requiring additional analysis.
o Compare current year actual amounts to the City’s annual budget (both original and adopted).  Final Phase:
o Perform procedures similar to those in the interim phase. o Compare certain financial ratios for current and prior years. o Conduct reasonableness tests.
o Investigate any significant variances further through inquiry and additional substantive testing until resolved to our satisfaction.
 Post-Fieldwork:
o Compare current and prior year audited balances, considering expected relationships based on our knowledge of the City, similar entities, and the general economic environment. o Utilize additional analytical techniques such as trend analysis as needed.

Unlike other audit firms, we use analytical procedures to supplement, not supplant, our substantive testing, ensuring a thorough and comprehensive audit.

Identification of potential audit problems
One potential problem could be the implementation of any future GASBS. With our deep understanding of governmental accounting and auditing, constant training, and broad resources, we do not anticipate any issues during a GASB implementation. Our approach to any GASB statement implementation would be as follows: gain a thorough understanding of the pronouncement; determine applicability to the City; if applicable, discuss the statement and how it will affect the City with City staff; and provide guidance to City staff on the accounting and financial reporting implications.

Item 7.4
Tuesday, April 21, 2026 190 of 774
City of Campbell
Proposal for Professional Auditing Services
-21-
Specific audit approach (continued)
Auditing in a remote environment
The evolution of technology has revolutionized the accounting and auditing profession, enabling us to provide high-quality services remotely with efficiency, precision, and timeliness. During the COVID-19 pandemic, our firm adapted quickly to a fully remote audit environment and developed processes that have since become integral to our standard approach. These advancements not only enhanced the quality of our audits but also resulted in significant efficiencies for both our team and our clients.

Remote Audit Approach
 Technology Utilization:
o We use secure cloud-based platforms for document sharing and management, such as Engagement Organizer, ensuring client data remains safe and accessible. o Video conferencing tools (e.g., Zoom, Microsoft Teams) facilitate real-time communication with City staff, enabling collaborative discussions and efficient issue resolution.  Workflow and Communication:
o Regular Communication: We maintain routine contact with clients throughout all phases of the audit via email, phone calls, and video meetings.
o Responsiveness: Our team prides itself on quick turnaround times for questions or issues, making remote collaboration as seamless as on-site interactions.  Flexibility for On-Site Presence:
o While we anticipate performing the majority of our work remotely, we understand that some aspects of the audit may benefit from an on-site presence. If desired, we will work with the City to determine an acceptable staffing level for in-person activities, balancing health, safety, and operational needs.

Benefits of Remote Auditing
 Efficiency Gains:
o Remote auditing reduces the need for travel time, allowing both auditor and auditee to focus on the tasks at hand, resulting in faster turnaround on requests and issue resolution. o Immediate access to digital documents and records eliminates delays associated with physical transfers of information.
 Enhanced Quality of Life:
o By minimizing travel, our staff can dedicate more time to client work and professional development, improving overall morale and productivity.  Environmental Impact:
o Reducing unnecessary travel decreases traffic congestion, lowers fuel consumption, and contributes to improved air quality in Southern California.  Year-Round Availability:
o Our remote-first approach fosters an ongoing partnership, encouraging clients to reach out throughout the year for guidance on matters that could impact the audit or their financial reporting.

Item 7.4
Tuesday, April 21, 2026 191 of 774
City of Campbell
Proposal for Professional Auditing Services
-22-
Estimated Project Timeline and Pricing
Services to be provided
The City desires the auditor to express opinions on the fair presentation of the financial statements for the following: the City of Campbell, in accordance with generally accepted accounting principles.

In addition, we shall:
 Prepare the financial statements (ACFR), in accordance with General Accepted Accounting Principles, with management’s direct oversight and approval.  Apply certain limited procedures related to Management’s Discussion and Analysis and Required Supplementary Information and provide an “in-relation-to" report on the combining and individual fund financial statements and supporting schedules, if applicable.  Provide opinions as to the compliance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (OMB Uniform Guidance). RAMS is to provide an "in-relation-to" report on the Schedule of Expenditures of Federal Awards based on the auditing procedures applied during the audit of the financial statements.  Test compliance with Article XIIIB pertaining to the City's appropriation limit and prepare an Agreed-Upon Procedures report to the City Council regarding compliance.  Test compliance with Measure O Revenues and Expenditures for the fiscal years under audit.  Perform an audit and prepare basic financial statements and a management letter for the West Valley Solid Waste Management Authority, a California Joint Powers Authority.  Perform an audit on the Transportation Development Act (TDA) Article 3, when required.  Perform an audit on the California Board of State and Community Corrections (BSCC) program for the periods covering October 1, 2023 through December 31, 2026.  As needed services, such as the preparation and filing of the Annual Financial Transactions Report to the State Controller of California, preparation and filing of the Annual Street Report to the State Controller of California, assistance with GASB 68/87 accounting entries to record the City’s net pension/OPEB liabilities and related deferred inflows and outflows.

Our audit(s) will be in accordance with:
 Generally Accepted Auditing Standards as promulgated by the American Institute of Certified Public Accountants, including requirements found in the most recent AICPA audit guide Audits of State and Local Governments.
 Government Auditing Standards issued by the Comptroller of the United States of America.  Single Audit Act of 1984, as amended in 1996.
 Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (OMB Uniform Guidance).
 Any other applicable standards for other items outlined in the Scope of Work to be performed and/or reports to be issued.

Reports to be issued:
 A report on the fair presentation of the financial statements in conformity with GAAP.  A report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards (material weaknesses or significant deficiencies).  A report in compliance with requirements applicable to each major federal program and internal control over compliance in accordance with the Uniform Guidance.  Prepare Management Letter that includes significant and less significant (i.e., reportable and non-reportable) recommendations for improvements to internal control.  We will issue reports to those charged with governance (SAS 114 letters) as required by auditing standards.
 An examination report on management’s assertion regarding compliance with Measure O.  A report on the fair presentation of the West Valley Solid Waste Management Authority’s financial statements in conformity with GAAP.

Item 7.4
Tuesday, April 21, 2026 192 of 774
City of Campbell
Proposal for Professional Auditing Services
-23-
Estimated Project Timeline and Pricing (continued)
 A report on the fair presentation in conformity with GAAP and compliance with applicable program guidelines for the City’s TDA program.
 A report over compliance with the City’s BSCC grant program.

RAMS will also perform the following:
 Make an immediate, written notification of all irregularities and illegal acts or indication of illegal acts of which we become aware to the following: City Council, City Manager, City Attorney and Finance Director.
 Provide 10 bound copies of the single audit report, 10 bound copies of the West Valley Solid Waste Management Authority, 5 unbound copies of the Gann Appropriations Limit Report, and 10 bound copies of the Transportation Development Act (TDA) Article 3 Grant Report.

Proposed audit timing
 Auditor
transition:

Meet with
prior auditor
to review
workpapers.
 Entrance
conference
to meet with
management
for pre-audit
planning.
 Preliminary
risk
assessment
procedures.

Anticipated timing of each segment
June/July October/November November/December
 Obtain an understanding of
systems, internal controls,
and current-year issues.
 Assess and evaluate design
and implementation of key
internal controls (including
IT related).
 Perform tests of internal
controls as needed.
 Identify control deficiencies
 Perform detailed risk
assessment procedures.
 Draft internal control
comment letter.
 Develop detailed audit plan
– provide management with
a detailed listing of items
needed to perform the audit,
including the timing of when
items are needed.
 Perform substantive audit
fieldwork, including
substantive analytical
procedures.
 Consider whether audit
evidence is sufficient to
form an opinion.
 Conduct exit conference
with management to
discuss proposed entries,
internal control issues, etc.
 Determine whether,
based on our substantive
testing and other
procedures, the financial
statements, taken as a
whole, are free of
material misstatement.
 Review all workpapers.
 Evaluate financial
statements and note
disclosures.
 Perform final analytical
procedures.
 Draft required reports.
 Issue final required
reports by or before
agreed upon date of
December 4th of each
year, provided that all
previous milestones have
been achieved.
 Present to governing
body as needed.

Proposed cost
See separate cost proposal.

Segment 1 -
Planning/internal
control
Segment 2 -
Substantive
testing/analysis
Segment 3 -
Report
preparation/work
paper review
Audit planning
Item 7.4
Tuesday, April 21, 2026 193 of 774
Exhibit A
Municipalities Special Districts (continued)
City of Aliso Viejo Capistrano Bay Community Services District City of Beaumont Chino Basin Desalter Authority
City of Brawley Conejo Recreation and Park District
City of Calabasas Consolidated Fire Agencies
City of Calimesa Crestline Sanitation District
City of Carpinteria Crestline Village Water District
City of Chula Vista Crestline-Lake Arrowhead Water Agency City of Claremont East Valley Water District
City of Eastvale Elsinore Valley Municipal Water District City of El Cajon Elsinore Valley Municipal Water District - WESA City of Exeter Elsinore Valley Municipal Water District FA City of Fountain Valley Fillmore-Piru Groundwater Sustainability Agency City of Goleta Foresthill Public Utility District
City of Hanford Heartlands Communications Fac Auth
City of Hawthorne Heartlands Fire Training Authority
City of Imperial Beach Idyllwild Water District
City of Industry Inland Valley Development Agency
City of La Mesa Las Virgenes Municipal Water District
City of La Verne Leucadia Wastewater District
City of Lawndale March Joint Powers Authority
City of Live Oak Mission Springs Water District
City of Loma Linda Mojave Water Agency
City of Los Alamitos Montalvo Community Services District City of Menifee Mound Basin Groundwater Sustainability Agency City of Mission Viejo Mountain Communities Fire Safe Council City of Moorpark Mountains Recreation and Conservation Authority City of Moreno Valley Nipomo Community Services District City of Murrieta North County Dispatch Joint Powers Authority City of Ojai Palos Verdes Peninsula Transit Authority
City of Perris Pine Cove Water District
City of Rolling Hills Estates Pomona Valley Transportation Authority City of San Bernardino Resource Con. Dist. of the Santa Monica Mountains City of San Dimas Rim of the World Park & Rec. District City of San Jacinto Riverside County Citrus Pest Control District No. 2 City of San Marcos Riverside County Citrus Pest Control District No. 3 City of Santa Paula Rosamond Community Services District City of Santee Rossmoor Community Services District
City of Sierra Madre Rubidoux Community Services District City of Signal Hill Running Springs Water District
City of South Pasadena San Bernardino County Special Districts City of Thousand Oaks San Bernardino International Airport Authority City of Twentynine Palms San Bernardino Valley Municipal Water District City of Wildomar San Bernardino Valley Water Conservation District City of Woodlake San Joaquin Regional Rail Commission
City of Yorba Linda San Luis Rey Municipal Water District Town of Windsor Southern California Coastal Water Research Powers Authority Town of Yucca Valley Successor Agency to the County of SB RDA City of Canyon Lake Thousand Oaks Alliance for the Arts City of Yucaipa Triunfo Water & Sanitation District
City of Grand Terrace Upper San Gabriel Valley Municipal Water District Valley of Enchantment Municipal Water Company
Special Districts Valley Water Company
Beaumont Cherry Valley Water District Ventura County Public Financing Authority Bedford-Coldwater Groundwater Sustainability Authority West Basin Municipal Water District Big Bear Area Regional Wastewater Agency Yucca Valley Airport District Item 7.4
Tuesday, April 21, 2026 194 of 774

CITY OF CAMPBELL

COST PROPOSAL FOR PROFESSIONAL AUDITING SERVICES
FOR THE FISCAL YEARS ENDING JUNE 30, 2026 THROUGH 2030
CONTACT PERSONS:

GARDENYA DURAN, CPA, CGMA
[email protected]

SCOTT MANNO, CPA, CGMA
[email protected]
909.889.0871

PREPARED BY

ROGERS ANDERSON MALODY & SCOTT, LLP
735 E Carnegie Drive, Suite 100
San Bernardino, CA 92408
LICENSE #2596
FEIN 95-2662063
JANUARY 9, 2026
Item 7.4
Tuesday, April 21, 2026 195 of 774
City of Campbell
Proposal for Professional Auditing Services
Cost Proposal
-1-
Proposed cost
As highlighted in our technical proposal, we believe our fee estimate represents a fair and reasonable investment, aligned with the high level of service and expertise provided by our audit team members.

While our bid may not be the lowest, our focus is on delivering the best value, and our pricing reflects this commitment.

We understand the importance of cost considerations and do not want fees to be a barrier in the City's selection of an auditor. We are open to discussing and negotiating fee-related matters to ensure they meet the City's needs and expectations.

In accordance with the Request for Proposal for Audit Services issued by the City of Campbell, Rogers, Anderson, Malody & Scott, LLP hereby submits the following all-inclusive maximum cost proposal:

XIII. ATTACHMENT A - Audit Cost Proposal Form
FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
$ 44,065 42,575 $ 45,607 $ 47,204 $ 48,856 $
$ 7,447 7,195 $ 7,707 $ 7,977 $ 8,256 $
$ 854 825 $ 884 $ 915 $ 947 $
$ $N/A $N/A $N/A $N/A 6,150
$ 8,021 7,750 $ 8,302 $ 8,593 $ 8,893 $
$ 2,137 2,065 $ 2,212 $ 2,290 $ 2,370 $
$N/A 15,500 $ $N/A $N/A $N/A
Out of Pocket Expenses
$ 1,500 1,500 $ 1,750 $ 1,750 $ 2,000 $
$ 1,500 1,500 $ 1,750 $ 1,750 $ 2,000 $
$ 500 500 $ 750 $ 750 $ 1,000 $
$ 81,524 70,060 $ 68,963 $ 71,228 $ 74,322 $
$ 6,365 - $ 6,588 $ 6,819 $ 7,057 $
$ 3,571 3,450 $ 3,696 $ 3,825 $ 3,959 $
$ 2,882 2,785 $ 2,983 $ 3,088 $ 3,196 $
$ 5,000 5,000 $ 5,500 $ 5,500 $ 6,000 $
$ 99,343 81,295 $ 87,730 $ 90,459 $ 94,534 $
* = for the first major program, each additional major program are as follows, FY 2025-26, $5,000, FY 2026-27 $5,175, FY 2027-28 $5,350, FY 2028-29 $5,550, FY 2029-30 $5,750
#1 City Audit and #4 Related
Reports
Total for Fiscal Year
(not-to-exceed)
Without Optional Items
Total for Fiscal Year
(not-to-exceed)
With Optional Items
#2 Single Audit and Related
Reports*
#3 Gann Limit Review Report
#5 Meausre O Audit Report
#6 West Valley Solid Waste
Management Authority (JPA)
#7 TDA Article 3 Audit
#8 BSCC ORT Grant
Service
- Meals and lodging
- Transportation
#10 Street Report
#11 GASB 68/75
- Other
Optional Items #5 Measure O Annual Report (future
years)
#9 FTR
Item 7.4
Tuesday, April 21, 2026 196 of 774
City of Campbell
Proposal for Professional Auditing Services
Cost Proposal
-2-
Proposed cost (continued)
XIV. ATTACHMENT B - Estimate of Cost Name of Firm: Rogers, Anderson, Malody & Scott, LLP Address:
735 E. Carnegie Drive
Suite 100
San Bernardino, California 92408
Contact Name: Gardenya Duran
Contact Phone#: 909-889-0871
Contact Fax#: 909-889-5361
Contact E-mail: [email protected]
Auditor’s Standard Billing Rates
Position FY 2025-
26 FY 2026-
27 FY 2027-
28 FY 2028-
29 FY 2029-
30 Partner $ 300 $ 311 $ 321 $ 333 $ 344
Manager $ 180 $ 186 $ 193 $ 200 $ 207
Senior Auditor $ 145 $ 150 $ 155 $ 161 $ 166
Staff Auditor $ 115 $ 119 $ 123 $ 128 $ 132
Clerical $ 50 $ 52 $ 54 $ 55 $ 57
Other $ - $ - $ - $ - $ -
Item 7.4
Tuesday, April 21, 2026 197 of 774
City of Campbell
Proposal for Professional Auditing Services
Cost Proposal
-3-
Proposed cost (continued)
Condition of records
Our proposed fee assumes the following: the City will be adequately prepared for the audit and the City’s financial operations and working trial balance will be consistent from year to year. If, after we receive the working trial balances, we notice there are excessive new accounts over the prior year; or if there are excessive subsequent journal entries; prepared by client workpapers do not agree to the working trial balances, there are new funds/functions within the City, etc., or other changes that necessitate a significant amount of time to address, we will need to come to an agreed upon change order to address any possible additional costs incurred by the firm. If the need for additional work comes to our attention, we will immediately notify City staff. If you choose to have us perform the additional work, then such work will be performed at the same hourly rates applicable to the audit and set forth in an addendum to the contract between the City and our firm.

Management is also responsible for the implementation of new standards issued by the Governmental Accounting Standards Board. We will provide reasonable assistance in the preparation of the items, but any significant time needed to complete the financial statements will be billed separately.

Our proposed fee is also dependent on all items requested being completed in the format requested or in a mutually agreed upon format and uploaded to the Engagement Organizer hosted by our firm in a timely manner in accordance with the agreed-upon audit timeline.

Software conversion/change
We understand that the City may occasionally implement software changes or conversions as part of its ongoing efforts to improve operational efficiency and financial management. Our firm is wellequipped to support clients through these transitions and ensure that the audit process remains seamless.

If the City initiates a software change or conversion, our firm will work closely with City staff to update account numbers, names, coding, and other financial data elements in alignment with the new system.

However, due to the additional time and resources required to accommodate these changes, there will be a minimum charge of $5,000 associated with this work.

This fee covers:
 Data Mapping and Reconciliation:
o Updating account structures and mapping old accounts to the new system. o Verifying accuracy and consistency in account names, numbers, and coding.  System Testing and Validation:
o Testing reports and financial statements generated from the new system to ensure they align with audit requirements.
o Addressing discrepancies or issues resulting from the conversion.  Process Adjustments:
o Modifying audit procedures to align with the new system’s capabilities and reporting outputs. o Providing guidance on system-generated reports required for audit purposes.

We are committed to working efficiently and collaboratively with the City to minimize disruption and ensure a smooth transition. This additional charge reflects the specialized expertise and resources necessary to maintain the integrity and quality of the audit during periods of significant system change.

Item 7.4
Tuesday, April 21, 2026 198 of 774
City Council Report
DATE: April 21, 2026
TITLE: FY 2027 Business License Public Hearing and Introduction of an Ordinance Amending Provisions of the Campbell Municipal Code to Revise the Business License Tax Rates Effective in Fiscal Year 2027 (Ordinance/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council introduce and take first reading of an Ordinance amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal year (FY) 2027.

BACKGROUND
As part of Measure M, approved by the voters in November 2010, Campbell Municipal Code (CMC) Section 5.01.170 (Business Licenses and Regulations) was amended by Ordinance 2132 to provide that the City Council may, by ordinance, increase the amount of any tax set forth in this title by no more than two percent (2%) per year to account for inflation.

DISCUSSION
The process for implementing amended Business License Tax Rates requires a first and second reading of the proposed ordinance. Consistent with public noticing requirements contained within California Government Code (GC) section 54954.6, if the first reading is approved on April 21, the second reading will be presented at the May 5 Council meeting.

If approved at second reading, the FY 2027 rates will become effective on July 1, 2026.

Ordinance 2132 again includes a provision that allows Business License Tax rates to be increased by ordinance in an amount not to exceed 2% on an annual basis, subject to Council approval. As such, staff is recommending increasing the existing Business License Tax rate schedule by the allowed 2% factor. Exceptions include the sub- category per-unit fees for Apartments (Each Additional Unit), Hotels (Each Room), Mobile Home Parks (Each Additional Unit), Taxicabs (Each Cab / Limo), and Trailer Courts (Each Additional Unit) which result in fractional amounts. The rental dispute fee is a passthrough collection that goes to Project Sentinel for landlord-tenant mediation services during the fiscal year. It will also remain unchanged.

Attachment 1 is the authorizing ordinance. Attachment 2 is the updated comparative schedule of fees reflecting recommended changes noted above. The latter has also been Item 8.1
Tuesday, April 21, 2026 199 of 774

published in the City’s designated newspaper of general circulation; along with a notice of the public hearing dates of April 21 and May 5.

FISCAL IMPACT
The fiscal impact of approving the proposed Ordinance with a 2% increase to Business License Tax rates will be an estimated increase in FY 2027 General Fund revenue of approximately $14,000; based on annual expected Business License Tax revenue of $700,000 in FY 2026 prior to the proposed rate increases.

ALTERNATIVES

1. Do not approve an increase in business license fees and provide alternate direction to staff.

PREPARED BY: Michael Nakamura, Account Clerk
Item 8.1
Tuesday, April 21, 2026 200 of 774

Report Approval Details
Document Title: Report - Business License Ordinance.docx Attachments: Business_License_Tax_Ordinance_FY2027.docx Comparative_Business_License_Tax_Schedule_FY2027.docx
Final Approval Date: April 15, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 8.1
Tuesday, April 21, 2026 201 of 774

BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AMENDING PROVISIONS OF THE CAMPBELL MUNICIPAL CODE TO REVISE

BUSINESS LICENSE TAX RATES
WHEREAS, pursuant to section 5.01.170 of the Campbell Municipal Code, as approved by the voters as part of Measure M, the City Council may by ordinance increase the amount of any tax set forth in this title by no more than two percent per year to account for inflation.

The City Council of the City of Campbell does ordain as follows:

SECTION ONE: Section 5.04.010 of the Campbell Municipal Code is amended to read as follows:

5.04.010 - Designated.

Every person conducting businesses, professions and activities in the city, the primary nature of which is indicated in the following schedule, shall annually pay the license tax set opposite the same, based upon the average number of employees in such business, according to the following schedules, unless such business is otherwise specifically taxed by other provisions of this chapter:

Commercial:
(Schedule I) 1 to 5 employees $133.00
6 to 15 employees $214.00
16 to 50 employees $308.00
51+ employees $618.00
Industrial and manufacturing:
(Schedule II) 1 to 5 employees $133.00
6 to 50 employees $214.00
51+ employees $370.00
Professional:
(Schedule III) 1 to 3 employees $133.00
4 to 10 employees $246.00
11 to 50 employees $432.00
51+ employees $618.00
Hotels: $183.00 per year plus $3.00/room
Live commercial entertainment: $370.00
Marijuana Businesses: 7% of gross receipts per Chapter 5.12 Massage Establishment: 1 to 3 employees $133.00
4 or more employees $246.00
Massage Therapist: $133.00
Item 8.1
Tuesday, April 21, 2026 202 of 774
Mobile home parks and trailer courts: $246.00 per year plus $2/unit Out-of-town business: $107.00
Rental or income producing residences located
on single or contiguous parcels of land:
$71.00 per year for the first unit plus
$3.00 for each additional unit.
(Owners occupying one unit of a 3 or more unit building are entitled to a $3.00 exemption if said owner files an affidavit with the City claiming the exemption.) Taxicab or limousine service: $133.00 per year plus $21.00 per vehicle Theaters: $493.00
Tow Services: $61.00
Solicitors: $370.00 per year
SECTION TWO: Section 5.08.010 of the Campbell Municipal Code is hereby amended to read:

5.08.010 - Activities designated—Fees.

No person shall conduct any of the following businesses and activities in the City without first securing a permit therefor from the City Council on written application filed therefor with the City Clerk, approved by the Chief of Police, the Chief of the Fire Department, and the Community Development Director. The application shall comply with the requirements of Section 5.08.020. The following are the activities regulated by this chapter and the license fee therefor:
(1) Fire and/or bankruptcy and/or wreck sale, first day $54.00 Each additional day, per day $26.00
(2) Grinding and/or sharpening knives, scissors, cutlery, lawn mowers, etc., when the person conducting such business travels from place to place by vehicle or on foot, per year ....._$26.00
(3) Itinerant medicine vendor, street vendor, temporary vendor and/or peddler, per day $31.00
(4) Pawnbroker, per year $363.00
(5) Dancehall, public dances, per year $108.00
SECTION FOUR: This Ordinance shall become effective July 1, 2026, following its passage and adoption and shall be published once within fifteen (15) days upon passage and adoption in the City’s designated newspaper of general circulation.

PASSED AND ADOPTED this day of 2026 by the following roll call vote:

Item 8.1
Tuesday, April 21, 2026 203 of 774
AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

APPROVED:
________________________
Daniel E. Furtado, Mayor
ATTEST:
________________________
Andrea Sanders, City Clerk
Item 8.1
Tuesday, April 21, 2026 204 of 774
City of Campbell ~ Business License Taxes
Fee Category Current FY 2026** Proposed FY 2027**
BUSINESS CLASSIFICATION*/**
Out of Town $ 105.00 $ 107.00
Industrial 1 to 5 Employees $ 131.00 $ 133.00
6 to 50 Employees $ 210.00 $ 214.00
51 or more Employees $ 363.00 $ 370.00
Commercial 1 to 5 Employees $ 131.00 $ 133.00
6 to 15 Employees $ 210.00 $ 214.00
16 to 50 Employees $ 302.00 $ 308.00
51 or more Employees $ 606.00 $ 618.00
Professional 1 to 3 Employees $ 131.00 $ 133.00
4 to 10 Employees $ 242.00 $ 246.00
11 to 50 Employees $ 424.00 $ 432.00
51 or more Employees $ 606.00 $ 618.00
Apartments (First Unit) $ 70.00 $ 71.00
(Each additional Unit) $ 3.00 $ 3.00
Rental Dispute Fee (Each Unit) $ 11.00 $ 11.00
Hotels $ 180.00 $ 183.00
(Each Room) $ 3.00 $ 3.00
Kennels-Animal Hospitals- Groomers Same as Professional Same as Professional Marijuana Business 7% of gross receipts
per Chapter 5.12
7% of gross receipts
per Chapter 5.12
Massage Establishment 1 to 3 Employees $ 131.00 $ 133.00 4 or more Employees $ 242.00 $ 246.00
Massage Therapist $ 131.00 $ 133.00
Mobile Home Parks $ 242.00 $ 246.00
(Each additional Unit) $ 2.00 $ 2.00
Non-profit Organizations Exempt from Fee Exempt from Fee Scavenger Companies Same as Professional Same as Professional Solicitors -Pawnbrokers -Private Patrol -
Live Commercial Entertainment
$ 363.00 $ 370.00
Taxicabs - Limousines $ 131.00 $ 133.00
(Each Cab/ Limo) $ 21.00 $ 21.00
Theaters $ 484.00 $ 493.00
Tow Service $ 60.00 $ 61.00
Trailer Courts (First Unit) $ 242.00 $ 246.00
(Each additional Unit) $ 2.00 $ 2.00
Veterinarians Same as Professional Same as Professional Tobacco Retailer Permit *** $ 60.00 $ 61.00
* If your business classification is not listed, please contact the Finance Department at 866-2174 for the appropriate fee. ** A mandatory $4.00 State ADA Fee will be added to each business license tax. *** Per Ordinance 2165.

Business License Taxes FY 27
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City Council Report
DATE: April 21, 2026
TITLE: Public Hearing to Consider Options for Continued Implementation of the Starter Home Revitalization Act: (1) Adoption of an Interim Ordinance Reestablishing the Urgency Measures of Interim Ordinance No. 2334, with an Amendment Revising the Method of Applying Vacancy Requirements to Single-Family Residential Properties; or (2) Direction to Return at a Subsequent Meeting with an Ordinance Extending Interim Ordinance No. 2334 Without Revision (Ordinance/ 4/5 Roll Call Vote) RECOMMENDED ACTION:

It is recommended that the City Council: (1) adopt the attached interim ordinance reestablishing the urgency measures of Interim Ordinance No. 2334, with an amendment revising the method of applying vacancy requirements to single-family residential properties, and consider whether to direct staff to pursue development of a potential demolition-control ordinance for future Council consideration; or (2) direct staff to return at a subsequent meeting with an ordinance extending Interim Ordinance No. 2334 without revision.

ENVIRONMENTAL DETERMINATION
Adoption of this interim ordinance is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.28(e) and 66499.41(i).

BACKGROUND
Overview of the Starter Home Revitalization Act: The Starter Home Revitalization Act was substantially expanded with the passage of Senate Bill 684 in 2023. As amended, it established a streamlined, ministerial approval process for small-scale housing development projects of up to ten residential units and associated subdivisions. The law is intended to facilitate modest infill housing opportunities that are “affordable by design.” Projects approved under the Act are not subject to discretionary review and must be approved without a public hearing, provided they meet applicable objective standards and statutory requirements.

The Act allows cities to apply objective development standards and adopt local implementing procedures, provided those standards are generally applicable to comparable residential projects and do not impose special or more restrictive requirements solely because a project is processed under the law. The statute also limits the application of standards that would physically preclude construction at a specified density threshold (up to 30 units per acre). As a result, jurisdictions must reconcile the Item 8.2
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statute with their zoning codes through local ordinances or other administrative measures to ensure compliant implementation.

As further amended by Senate Bill 1123 in 2024, the Act reduced the minimum density threshold applicable to qualifying projects, thereby expanding the range of sites and development types that can utilize the law. The legislation also extends eligibility to include certain vacant parcels located within single-family residential zoning districts, subject to specified criteria. The statute defines “vacant” to include parcels "having no permanent structure, unless the permanent structure is abandoned and uninhabitable,” with limited exceptions, including housing occupied by tenants within the last five years.

Lastly, Assembly Bill 130, a budget trailer bill adopted in June 2025, introduced additional amendments to the Act, including provisions allowing for the designation of remainder parcels, clarifying restrictions on the sale, lease, and financing of newly created lots, and refining implementation requirements for local agencies.

Local Ordinance Implementation: The following summarizes the actions taken to date by the City to implement The Starter Home Revitalization Act:
 June 2024 – The City Council adopted an interim ordinance to implement Senate Bill 684, establishing a local set of standards and procedures for ministerial approval of small-scale housing development projects. The ordinance included broad exemptions from the City’s Multifamily Development and Design Standards (MFDDS), recognizing that application of those standards, particularly in combination, could physically preclude development of starter home projects at the densities permitted by State law. The ordinance also introduced targeted subdivision standards in Title 20 to ensure appropriate lot configuration and access. These subdivision standards remain in effect through incorporation by reference in the City’s current interim ordinance.
 July 2025 – The City Council adopted a new interim ordinance to implement Senate Bill 1123, which expanded the applicability of the Starter Home Revitalization Act to include certain vacant single-family parcels. The ordinance continued the City’s approach of providing broad exemptions from the MFDDS, while retaining certain core standards (e.g., height and front setbacks). As part of that action, the City established its current method of applying the vacancy requirement, allowing a parcel to qualify where demolition of an existing structure is proposed in conjunction with a starter home project.  August 2025 – Following the adoption of Assembly Bill 130 in late June 2025, a budget trailer bill that made amendments to the Starter Home Revitalization Act, the City Council adopted a revised interim ordinance to incorporate those changes.

The City Council subsequently extended the ordinance in September 2025, which remains in effect and is set to expire on July 31, 2026.

Following adoption of the interim ordinances, the City established a dedicated webpage to provide guidance on starter home project eligibility, standards, and application procedures, and to track application status. The webpage is available on the City’s website at https://www.campbellca.gov/1535/Starter-Home-Projects.

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Current Vacancy Implementation: As discussed in the July 1, 2025 staff report, while Senate Bill 1123 defines “vacant,” it does not provide additional guidance regarding when and how vacancy is established. This omission is notable, as many State housing laws tie eligibility criteria to a defined point in time, such as application submittal or another clearly established date (e.g., January 1, 2025).

As such, this ambiguity could create an incentive for property owners to speculatively demolish existing homes in advance of submitting a starter home application. Under the City’s current municipal code standards, demolition permits are processed ministerially and must be issued if applicable Building Code requirements are met, except in limited circumstances such as designated historic structures. As a result, preemptive demolition could occur without any assurance that a starter home project would ultimately be approved or constructed. Moreover, the statute’s definition of “vacant” includes parcels with structures that are abandoned and uninhabitable, which could create an incentive to allow existing homes to fall into disrepair.

To address these concerns, the City’s local ordinance allows a parcel to be considered “vacant” where demolition of an existing structure would be completed prior to issuance of building permits or recordation of a subdivision map for a starter home project. This approach was intended to allow applicants to secure planning approval prior to demolition, thereby reducing the risk of unnecessary housing loss with the creation of property blight, and addressing financing constraints, as lenders often require project entitlements to be in place before funding demolition and construction.

Need for Council Action: Recent starter home project applications on single-family residential parcels have generated public comment and policy questions, particularly with respect to the City’s current method of implementing the vacancy requirement for single family properties. As discussed further below, a number of current applications involve properties with existing single-family residences. At the City Council meeting of April 7, 2026, many public speakers provided public comment on this issue, and some Councilmembers indicated that timely reconsideration of the City’s approach was warranted.

Separately, the City’s current interim ordinance is set to expire on July 31, 2026, and must be superseded by adoption of a new interim ordinance to maintain continuity of the City’s local implementation. As such, the pending expiration of the ordinance provides an opportunity for the City Council to consider whether to retain or revise the City’s current vacancy implementation, based on the City’s initial experience with the ordinance and feedback received from the public.

Starter Home Applications Received to Date: Since adoption of the City’s first interim ordinance in 2024, the City has received a total of fifteen (15) applications for starter home projects. As shown in the table below, these applications reflect a range of project types across multi-family, mixed-use, and single-family zoning districts, with unit counts ranging from two to ten units. Four projects have been approved to date, while the remaining applications are currently under review. Notably, 10 applications have been submitted since the end of January, eight of which are located on single-family residential properties.

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Of the eight applications located on single-family residential parcels, all involve sites that are currently developed with an existing single-family residence, with demolition proposed as part of the project. These applications are being processed under the City’s current ordinance, which allows a parcel to qualify where demolition is proposed in conjunction with a starter home project. In some cases, demolition permits have already been submitted and are under review, such that the site may be vacated prior to final action by the City on the associated starter home application.

Address File No. Submittal
Date
# of
Units
Zoning Status Project Files
300 REDDING RD PLN-2024-160 10/31/2024 6 Multi-Family Approved Project Files 1236 W HACIENDA
AVE
PLN-2025-57 04/24/2025 8 Mixed-Use Approved Project Files 900 S SAN TOMAS

AQUINO RD
PLN-2025-98 07/09/2025 6 Mixed-Use Approved Project Files 1200 SMITH AVE PLN-2025-114 08/07/2025 6 Mixed-Use Under Review
Project Files
321 INDUSTRIAL ST PLN-2025-164 11/24/2025 2 Multi-Family Approved Project Files 474 BUDD AVE PLN-2026-13 01/28/2026 5 Single-Family Under Review
Project Files
120-132 KENNEDY
AVE
PLN-2026-20 02/23/2026 9 Multi-Family Under
Review
Project Files
1573 WALNUT DR PLN-2026-23 02/26/2026 9 Single-Family Under Review
Project Files
661 W PARR AVE PLN-2026-24 02/26/2026 9 Single-Family Under Review
Project Files
2265 S

WINCHESTER BLVD
PLN-2026-36 03/23/2026 8 Mixed-Use Under
Review
Project Files
935 S SAN TOMAS

AQUINO RD
PLN-2026-33 04/01/2026 9 Single-Family Under
Review
Project Files
930 S SAN TOMAS

AQUINO RD
PLN-2026-37 03/24/2026 5 Single-Family Under
Review
Project Files
1170 STEINWAY
AVE
PLN-2026-35 04/01/2026 10 Single-Family Under
Review
Project Files
1995 WHITE OAKS
RD
PLN-2026-39 03/30/2026 6 Single-Family Under
Review
Project Files
127 BUDD AVE PLN-2026-40 03/31/2026 6 Single-Family Under Review
Project Files
Interaction with Other State Housing Laws: In addition to the provisions of the Starter Home Revitalization Act, these projects are subject to other State housing laws that operate concurrently and may be used in combination. The Act itself includes an internal exception mechanism allowing relief from objective development standards to the minimum extent necessary to achieve the required density thresholds, although maximum height and number of stories, are not eligible for exception under the Act. Qualifying projects must be processed ministerially, including any determinations regarding requested exceptions. Because they are not subject to discretionary review, no public hearings are permitted and traditional public outreach and notification requirements do not apply, including mailed notifications prior to a decision being rendered.

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 State Density Bonus Law – Projects may utilize provisions of State Density Bonus Law (Government Code Section 65915) if they include the provision of a deed restricted affordable housing unit, which can allow waivers from otherwise applicable development standards, including height, where those standards would physically preclude construction of the project as proposed, consistent with Bankers Hill 150 v. City of San Diego. Several of the proposed Starter Home Projects have proposed an affordable housing unit and are utilizing State Density Bonus Law to waive the City’s design standards.
 Housing Accountability Act – Under the Housing Accountability Act (Government Code Section 65589.5), the City’s ability to deny or impose conditions that would render a housing development project infeasible is narrowly constrained, where the project complies with applicable objective standards.
 Housing Crisis Act – Pursuant to the Housing Crisis Act of 2019 (Government Code Section 66300 et seq.), applicable development standards, policies, and fees may be fixed as of the date a preliminary application (“SB 330 pre-application”) is submitted, limiting the City’s ability to apply subsequently adopted standards.

Several of the Starter Home applications have submitted a SB 330 Preapplication that requires the City to only apply the standards, policies and fees in effect at that time.

As a result, the overall development potential of a starter home project may be shaped by the combined effect of multiple State laws, rather than the Starter Home Revitalization Act alone.

DISCUSSION
It is recommended that the Council provide direction on whether to retain the City’s current method of applying the vacancy requirement or revise it for starter home applications. As discussed above, the City’s existing approach allows a parcel to qualify for starter home development where demolition of an existing structure is proposed in conjunction with the proposal. Many starter home projects are now being processed on single-family parcels with existing homes, bringing into focus the practical and policy implications of how the vacancy requirement is applied. The following options are provided for Council consideration.

Option 1 – (No Changes): Maintains the City’s current vacancy implementation, under which a parcel may qualify as “vacant” where demolition of an existing structure is proposed in conjunction with a starter home project.

Considerations
 Allows applicants to secure project approval prior to demolition.  Reduces the risk of premature or speculative demolition of existing housing.  Maintains continuity with the City’s current ordinance and implementation approach.

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 Will result in continued redevelopment of single-family parcels with existing homes.

Option 2 – Change the Vacancy Requirement: Revise the City’s ordinance to require that a parcel be vacant at the time a starter home application is submitted.

Considerations
 Aligns with a narrower interpretation of the statutory vacancy requirement.  May incentivize demolition prior to application submittal, resulting in the loss of housing stock and the creation of blighted properties.
 Reduces the ability to secure project approval prior to demolition, as vacancy would need to be established at the time of application submittal.  Would likely affect how future projects are structured or financed, likely reducing the development potential of Starter Home projects.

Demolition-Control Ordinance (Optional Direction if Option 2 is Adopted): In addition to the options above, the City Council may consider whether to direct staff to pursue development of a demolition-control ordinance intended to discourage removal of existing housing prior to redevelopment approvals. This would address the potential effects of adopting Option 2, where vacancy would be required at the time a Starter Home application is submitted, potentially resulting in premature demolition of existing singlefamily homes.

Such an ordinance could involve restricting the issuance of demolition permits unless a corresponding development proposal for replacement housing has been approved or proposed, thereby tying demolition activity to approved redevelopment and reducing the likelihood that properties are rendered vacant solely to establish eligibility for a Starter Home application.

In contrast with the Option 1 and the City’s existing interim ordinance, a potential demolition control ordinance could result in demolished single family homes being replaced with another single-family home or a SB 9 project (duplex), but not a Starter Home project.

Considerations
 Practical Considerations: A demolition-control ordinance would likely not prevent all scenarios where a single family property could be deemed "vacant" for purposes of project eligibility. Under the Starter Home Revitalization Act, a parcel may also qualify as “vacant” where structures are abandoned and uninhabitable.

As a result, even if demolition permits are more tightly regulated, a property owner or developer could potentially allow a house to intentionally fall into disrepair or be damaged to the point where the residence could be deemed “uninhabitable”, and thus eligible for Starter Home development. Therefore, questions may still arise regarding whether a structure has been rendered “vacant”.

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In addition, a demolition control ordinance may not control for changes in circumstances for a redevelopment project. For example, an applicant could obtain approval for a new house or subdivision (e.g., an urban lot split) where demolition of an existing structure is required to proceed. If the structure is subsequently demolished and the approved project is not pursued, the parcel could be rendered vacant and may qualify for a subsequent starter home project application.  Legal Considerations: Any demolition-control ordinance would need to be carefully structured to avoid conflict with State housing laws, including provisions that limit local actions that constrain or prevent housing development projects.

Recent amendments to the Housing Crisis Act impose specific limitations on demolition of existing housing, particularly with respect to units occupied by lowerincome households, including a five-year lookback period and requirements related to replacement of demolished units. Similar protections are also reflected in State Density Bonus Law. In this context, adoption of a local demolition-control ordinance may raise questions regarding the necessity and scope of additional local regulation beyond what is already provided under State law.

In addition, the City would also need to ensure that a future demolition control ordinance does not represent an action to prohibit or hinder the implementation of the Starter Home Revitalization Act, which would subject the City to enforcement actions by the State.
 Administrative Considerations: Development of a demolition-control ordinance would constitute a separate work effort and is not part of the current interim ordinance action. Such an ordinance needs to be developed through the City’s standard ordinance adoption process, which would require additional time for research, analysis, and legal review.

Given the complexity of this area of law and the need to evaluate approaches used by other jurisdictions, this effort would need to be incorporated into the Community Development Department’s FY 2027 Work Plan. Based on current staffing constraints within the Planning Division, advancing a demolition-control ordinance may be challenging without reprioritization of existing work plan items or allocation of additional resources.

Effect on Pending Applications: Under Campbell Municipal Code Section 21.01.050.E and Government Code § 65589.5(f)(5) (Housing Accountability Act), housing development applications are reviewed based on the ordinances and objective standards in effect at the time the application is deemed complete. In addition, pursuant to Government Code § 65941.1 (Housing Crisis Act / SB 330), an applicant for a housing development project may submit a preliminary application (SB 330 pre-application) to establish (“lock in”) the applicable development standards, policies, and fees for a project in effect at the time of the pre-application, even if those standards are subsequently modified.

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the current standards (such as the application of vacancy). As such, the City’s ability to apply revised standards (such as the application of vacancy) to pending housing development projects is limited. As a practical matter, even under a revised ordinance that requires vacancy prior to submittal of a Starter Home application, a property owner may seek to obtain a demolition permit and remove the existing structure, thereby establishing vacancy and restoring project eligibility.

The vacancy standard notwithstanding, under the Housing Accountability Act (Government Code Section 65589.5), a housing development project that complies with applicable objective standards generally may not be disapproved or conditioned in a manner that renders the project infeasible, absent specific, adverse impacts to public health or safety or other limited statutory findings. Similarly, under the Starter Home Revitalization Act (Government Code Section 65852.28), denial of a project requires a written finding, supported by a preponderance of the evidence, of a specific, adverse impact to public health or safety.

Related Concerns Raised by the Public: The City has received public comments on several aspects of starter home projects. Under State law, many of these issues are outside the scope of the City Council’s discretion. Key areas of concern include:
 State Density Bonus Law: Applicants may request waivers or concessions from development standards, including height, where required to achieve the permitted density. The City is required to grant a waiver if a development standard would physically preclude construction of the project as proposed. Courts have interpreted this requirement broadly. In Bankers Hill 150 v. City of San Diego, the court held that a waiver must be granted to allow the project as designed, even if the project could be redesigned to comply with the applicable standard.  Ministerial Review Process: Starter home projects are subject to ministerial approval, which does not allow for the exercise of independent judgment or discretion and is limited to the application of objective standards. State law does not permit public hearings for these projects, and there is no mechanism for appeal to the Planning Commission or City Council. As the applications are reviewed ministerially, they are not subject to public notification to neighbors.  Project-by-Project Review: At least two of the Starter Home projects are located adjacent to each other and sponsored by the same applicant, raising questions if the City needs to review them as one application. Per guidance issued by the State Department of Housing and Community Development , each application must be reviewed independently based on applicable objective standards. The City may not consider cumulative impacts or evaluate projects in relation to broader neighborhood context as part of the approval process.
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related to public health or safety. Any such finding must be based on a specific, adverse impact that is objective, documented, and based on written standards in effect at the time the application was deemed complete, and that cannot be feasibly mitigated. No such basis for denial has been identified for the starter home applications currently under review.

Accordingly, while these concerns have been raised and are acknowledged, they are not within the scope of the City Council’s deliberation for this item.

PUBLIC NOTICE
In response to community interest in this matter, the City conducted targeted outreach, including distribution of an email notification via MailChimp to interested parties concerning the Council meeting and review of the Starter Home ordinance. In addition, the City’s Starter Home Projects webpage was updated to include expanded frequently asked questions and related information.

FISCAL IMPACT
Absent the subsequent adoption of a demolition control ordinance that precludes demolition of existing structures, adoption of a revised interim ordinance requiring vacancy at the time of application submittal is unlikely to have a substantive fiscal impact.

ALTERNATIVE
If the City Council does not adopt a new interim ordinance, the current ordinance will expire on July 31st. The Starter Home Revitalization Act would remain operative under State law, but the City would lose the benefit of local codification, including locally adopted procedures, standards, and clarifications, making implementation more difficult and less predictable.

If the City Council does not achieve the four-fifths vote required to adopt an interim ordinance, a simple majority may instead direct staff to return with a standard ordinance through the regular legislative process. While such an ordinance would not take effect immediately, it may be possible to complete adoption prior to expiration of the current interim ordinance, or shortly thereafter with only a limited gap in implementation, provided the ordinance is considered by the Planning Commission in May. Given current Planning Division staffing constraints, however, meeting this timeline may be challenging.

NEXT STEPS
If a new interim ordinance is adopted (Option 2), with or without direction to evaluate a demolition-control ordinance, staff will return to the City Council on May 5, 2026 with a request to extend the ordinance for up to 10 months and 15 days, consistent with Government Code Section 65858. Adoption of the interim ordinance at this time, followed by a timely extension, will maintain continuity of the City’s local implementation and provide sufficient time to plan for pending revisions to State law.

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Senator Caballero, the author of Senate Bills 684 and 1123, has introduced Senate Bill 1116, which would make further revisions to the Starter Home Revitalization Act. The bill remains pending in the Legislature and, as of April 8, 2026, had been approved by the Senate Housing Committee and re-referred to the Senate Local Government Committee for further consideration.

Staff has been in contact with Senator Caballero’s office regarding potential amendments under Senate Bill 1116. If adopted, the legislation is anticipated to take effect on January 1, 2027. Accordingly, staff expects to return to the City Council later this year with recommended updates to the City’s local implementation, which may include a revised interim ordinance and/or a permanent ordinance, as appropriate.

Given the evolving nature of State law, staff also sought technical guidance from HCD regarding the City’s implementation of the Starter Home Revitalization Act, including questions related to the vacancy requirement. This input will inform the development of any future interim or permanent ordinance. However, it is unclear when HCD will provide a formal response.

PREPARED BY: Daniel Fama, Senior Planner
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Report Approval Details
Document Title: Report - Options for Continued Implementation of the Starter Home Revitalization Act.docx
Attachments: New SB-1123 Interim Ordinance (2026) - Vacancy Change.docx Final Approval
Date:

April 15, 2026
This document and all of its attachments were approved and signed as outlined below:

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ORDINANCE NO. _____

BEING AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL REESTABLISHING THE URGENCY MEASURES OF INTERIM ORDINANCE NO. 2334, WITH AN AMENDMENT REVISING THE METHOD OF APPLYING VACANCY

REQUIREMENTS TO SINGLE-FAMILY RESIDENTIAL PROPERTIES, FOR CONTINUED

IMPLEMENTATION OF THE STARTER HOME REVITALIZATION ACT PURSUANT TO SENATE BILL NO. 1123 (2024) AND ASSEMBLY BILL NO. 130 (2025) WHEREAS, on October 11, 2023, the Governor of the State of California signed into law Senate Bill No. 684 (Caballero), which added Sections 65852.28, 65913.4.5, and 66499.41 to the California Government Code, collectively establishing a streamlined, ministerial approval process for small-scale housing development projects of up to ten residential units on urban lots, and authorizing the application of objective development and design standards; WHEREAS, on September 19, 2024, the Governor of the State of California signed into law Senate Bill No. 1123 (Caballero), which amended Sections 65852.28 and 66499.41 of the California Government Code to expand and clarify eligibility for ministerial approval under the Starter Home Revitalization Act, including by permitting qualifying projects on certain vacant single-family residential parcels, reducing applicable density thresholds, and clarifying key implementation provisions;
WHEREAS, on June 30, 2025, the Governor of the State of California signed into law Assembly Bill No. 130 (Committee on Budget), a budget trailer bill that enacted amendments to Government Code Section 66499.41 and related provisions, including clarifying the treatment of remainder parcels, refining the relationship between unit construction and map recordation, and establishing additional limitations on the sale, lease, or financing of subdivided parcels prior to final inspection;
WHEREAS, the provisions of Senate Bill No. 1123 and Assembly Bill No. 130 became operative on July 1, 2025, and, in the absence of locally adopted development standards, requirements, and implementation procedures, may conflict with existing provisions of the Campbell Municipal Code and create uncertainty, inconsistencies, and administrative challenges in the implementation of State law;
WHEREAS, certain development standards, requirements, and permitting procedures in the Campbell Municipal Code are inconsistent with, or do not fully implement, the provisions of Government Code Sections 65852.28, 65913.4.5, and 66499.41, including, but not limited to, standards related to lot configuration, land use definitions, and review procedures; WHEREAS, Government Code Sections 65852.28(e), 65913.4.5(b), and 66499.41(i) authorize local agencies to adopt ordinances and procedures to implement the provisions of the Starter Home Revitalization Act;
WHEREAS, pursuant to Government Code Section 65858 and Section 21.60.090 of the Campbell Municipal Code, the City Council may adopt urgency measures as an interim ordinance upon a four-fifths vote to address a current and immediate threat to the public health, safety, or welfare;
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