Council members also are scheduled to discuss more restructuring to avoid losing millions in funding.
The contract with Allen J. Parker, who has 30 years of experience, largely with financially distressed cities, was not available Sunday evening.
Mayor Pat Morris hopes to finish negotiating today, according to his son and chief of staff, Jim Morris.
If approved, Parker will manage day-to-day affairs for a city that - along with its ongoing bankruptcy case - has drawn scrutiny from the Department of Housing and Urban Development over its handling of HUD funds.
As part of the federal Dodd-Frank law passed in 2010, the city must spend at least 50percent of the $3.27million it received through the Neighborhood Stabilization Program within two years.
But as the March 8 deadline approaches, the city had only spent 10.5percent by Jan. 3, according to a letter from William Vasquez, director of HUD's Office of Community Planning and Development.
"If the city fails to demonstrate that it has met the expenditure requirement on March 8, 2013, HUD will issue a finding of non-compliance and offer an informal consultation with the Deputy Assistant Secretary for Grant Programs," Vasquez wrote.
HUD is also auditing the city, and, according to a report by city staff, HUD is concerned about the lack of one person to implement any suggestions.
The timeliness of the city's responses has also been problematic, especially since the housing and community development director left the city.
Acting City Manager Andrea-Travis Miller, whose last day is today, has spoken with HUD's Los Angeles director to assure him the city will move swiftly to prevent the suspension of the city's funding, according to a staff report.
"That action would severely shock crucial programs that rely on these funds," the report says.
In reaction to HUD's concerns, staff from the City Manager's Office have recommended a significant reorganization of the housing and community development programs that will be presented to the council on Tuesday.
The proposed reogranization, which isn't expected to have any effect on the general fund, would move all HUD-funded programs to a division that reports to the community development director.
The changes would put San Bernardino in line with other area cities, according to staff.
Reach Ryan via email, find him on Twitter @SBcityNow, or call him at 909-386-3916.