AGENDA TITLE:
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Adopt a Resolution Authorizing the Acting City Manager to Execute a Professional Services Agreement with Hoslett Forensics for Accounting Review Services in an Amount Not to Exceed $45,000 (CM)
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MEETING DATE:
September 3, 2025
PREPARED BY:
James Lindsay, Acting City Manager
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing the Acting City Manager to execute a Professional Services Agreement with Hoslett Forensics, for accounting review services in an amount not to exceed $45,000.
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BACKGROUND INFORMATION:
On July 16, 2025, the City Council received an update during closed session from Financial Assessor Kevin Harper who was hired by outside legal counsel to investigate claims of financial mismanagement.
The report out from closed session stated Mr. Harper did not identify fraudulent activity, but he recommended that the Utility Deposit and Holding Account be further analyzed and reconciled. Additionally, he recommended further investigation of CAL-Card and Amazon business account transactions to ensure compliance with City policies.
Pursuant to Council direction, Acting City Manager Lindsay pursued a qualified consultant to analyze the Utility Deposit and Holding Account, and Cal-Card and Amazon transactions. Hoslett Forensics submitted a proposal to perform the recommended services for an amount not to exceed $45,000. Lodi Municipal Code Section 3.20.075 provides for exceptions to the formal bid process when a professional services agreement is for accounting and financial services.
STRATEGIC VISION:
3A. Fiscal Health: Promote City's transparency & fiscal fluency.
FISCAL IMPACT:
This would be an additional allocation of $45,000 from the General Fund Non-Departmental account to cover these services.
FUNDING AVAILABLE:
Non-Departmental account 10095000.72450.