TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: December 10, 2025
SUBJECT: APPROVAL OF AMENDMENT NO. 2 TO THE AGREEMENT
WITH EIDE BAILLY, LLP TO INCREASE NOT-TO- EXCEED
AMOUNT TO $90,000 AND EXTEND THE CONTRACT TERM
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Fiscally Responsible and Transparent City Government
BACKGROUND/DISCUSSION
In August 2025, the City’s Accounting Manager/Controller position became vacant. To minimize disruption to critical financial operations, the City entered into a professional services agreement with Eide Bailly LLP in the amount of $20,000. On October 31, 2025, Council approved Amendment No. 1 to increase the not-to-exceed amount to $50,000. Since then, Eide Bailly has assisted with year-end closing in preparation for the annual audit, bank reconciliations, and journal entries.
As the City continues to actively recruit for this vacancy, and the City's continued need for accounting assistance, staff recommends amending the agreement with Eide Bailly LLP to increase the not-to-exceed amount to $90,000 and extend the contract term to April 30, 2026. This adjustment would provide funding for continued support through the end of the calendar year, including assistance with bank reconciliations, journal entries, and other accounting tasks.
As Finance Department staff, in collaboration with staff from other departments begin work on several large initiatives, the continued operational assistance from Eide Bailly will be important until the Accounting Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
Manager/Controller position is filled. These initiatives include the start of the City’s 2026-27 Fiscal Year Budget Process, preparation of the City’s 2025-26 Mid-Year Financial Review, work surrounding the City Council’s direction regarding a 1% Transaction and Use Tax, and preparation for the renewal of the City’s expiring Utility Users Tax.
FISCAL IMPACT & PROCUREMENT REVIEW
The contract will be funded through Account #101-11-4150-0000. There is no budget amendment necessary, since the department will absorb this amount in the FY 2025-26 adopted budget.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve amendment No. 2 to the agreement with Eide Bailly, LLP.
If the City Council concurs with staff’s recommendation an appropriate motion would be:
”I move to approve Amendment No. 2 to the agreement with Eide Bailly, LLP and authorize the City Manager to execute the amendment.”
ATTACHMENTS
1. Eide Bailly LLP Agreement Signed
2. Draft Amendment No. 2