DATE: October 6, 2026
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute an Amendment or Amendments to the Professional Services Agreement with Maze & Associates for Audit and Financial Services, Increasing the Maximum Compensation from $389,807 Up to a Total Maximum Compensation Amount Not to Exceed $750,000 if All Contract Extensions Are Exercised
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RECOMMENDATION
Recommendation
That Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute an amendment or amendments to the Professional Services Agreement with Maze & Associates to increase the contract’s maximum compensation amount from $389,807 to a total maximum compensation amount not-to-exceed $750,000 if two options to extend the term are exercised for professional audit services required to complete any annual audits incorporated into any exercised option period and including additional audit services required to complete the Fiscal Year 2024-25 annual audit.
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SUMMARY
After an extensive request for proposal process to perform the City’s annual independent financial audit reports, the City entered into a Professional Services Agreement with Maze & Associates in July 2024. For the Fiscal Year 2025-25 annual audit, additional audit procedures became necessary due to the City’s current fiscal challenges and the increased level of audit work required to complete the audit. Therefore, the work exceeded the hours originally anticipated in the engagement.
In addition to additional work needed for the FY 2024-25 annual audit, staff is recommending that the City Manager is authorized to execute an amendment or amendments to exercise options to extend the contract term. The contract provides for up to two one-year options to extend the agreement with compensation increase based on Consumer Price Index (CPI). Therefore, staff has recommended an authorization to increase the maximum compensation by an amount slightly greater than 5%. During the Fiscal Year 2025-26 audit process, staff will evaluate if the options will be exercised and confirm the cost of each option period.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution