TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Hillary Guirola-Leon, Finance Director
DATE: March 11, 2026
SUBJECT: APPROVAL OF AMENDMENT NO. 3 TO THE AGREEMENT
WITH EIDE BAILLY, LLP TO INCREASE NOT-TO- EXCEED
AMOUNT TO $130,000 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. On December 10, 2025, Council approved Amendment No. 2 to increase the not-to-exceed amount to $90,000.
As the City continues to actively recruit for this vacancy, and the City's continued need for accounting assistance, staff recommend amending the agreement with Eide Bailly LLP to increase the not-to-exceed amount to $130,000 and extend the contract term to October 31, 2026. This adjustment would provide funding for continued support including assistance with bank reconciliations, journal entries, budgeting, 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 Tony Chou, Mayor
Calvin Lo, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Gretchen Shepherd Romey, Council Member
from Eide Bailly will be important until the Accounting Manager/Controller position is filled.
FISCAL IMPACT & PROCUREMENT REVIEW
The contract will be funded through Account #101-11-4150-0000 Other Contract Services. Of the $130,000 required, $91,300 can be absorbed within the Finance Department’s overall department budget due to the current vacancy. The remaining amount will be addressed through the mid-year budget adjustments proposed.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the Council approve amendment No. 3 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. 3 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. 3