HomeMy WebLinkAbout2004-03-16 City Council (3)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTN:FINANCE COMMITTEE
FROM:CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES.
DATE:MARCH 16, 2004 CMR: 184:04
SUBJECT: SAP REPORT ON CITY CONSULTANT SERVICES CONTRACTS
This is an informational report and no Council action is required.
BACKGROUND
The Finance Committee has periodically requested information on the City’s consultant
contracts. In the past, this information was not readily available and was collected
manually in response to specific informational requests. Following the implementation
of SAP, staff has the ability to collect and report on this information in a more automated
fashion. Recently, staff configured a report in SAP to generate information on consultant
contracts.
DISCUSSION
The attached SAP report contains information on fiscal year 2003-04 consultant
contracts. The report includes all open consultant aueements brought over from IFAS to
SAP on July 1, 2003 as well as aueements awarded from July 1, 2003 through December
31, 2003, the first half of fiscal year 2003-04. It is important to note that portions of the
City’s consultant costs are funded through ~ant prouams, Joint Powers Authority
a~’eements, external se~a, ice a~eements, and other revenue generating mechanisms.
These costs are also funded from various sources such as the General Fund, Enterprise
Fund & Internal Services Fund.
For purposes of gathering the information for this report, staff has developed a definition
of "service" that is consistent with the proposed new Purchasing and Contracting
Ordinance (Ordinance) and the California Government Code. The City’s Ordinance will
define professional service contracts as "contracts for se~wices which involve the exercise
CMR: 184:04 Page 1 of 3
of professional discretion and independent judgment based on specialized knowledge,
expertise or training.:’ Consultant services are a subset of professional services. What
distinguishes consultant services from other types of professional services is that a
consultant typically provides the City with advisory services on a one-time basis. In
addition to the non-recurring nature of such services, a consultant also provides the City
with al_Jl of the following:
1) services that are advisory in nature;
2) a recommended course of action; and
3) an end product (such as a study or feasibility analysis) transmitted verbally or in
writing.
In contrast, professional services are normally routine services delivered ?,ear after year.
Professional services are often obtained to satisf), regulatory or legal mandates or to
provide the City with expertise not found in-house.
As an example, a company studying the region’s water needs to advise the City on
developing a regional water quality system would be a consultant whereas a company
determining the various types and amounts of industrial waste discharged fromthe Water
Quality Control Plant is providing the City with a professional service. In this case, the
distinguishing factor is the advisory nature of the services. The consultant is providing
the City with broad based expert advice while the professional services are more routine
services.
The attached report provides data only on consultant services. It does not include
information on basic professional services such as those offered by appraisers, plan check
engineers, computer maintenance personnel, or instructors. Nor does it include routine
services provided by accountants, auditors, architects, engineers, financial advisors,
gaphic designers and planners, In addition, any services pertaining to legal counsel and
experts retained for the purpose of litigation or other legal proceedings are excluded from
this report.
In the coming year, staff will work on refining the configuration, format and content of
this and other SAP-generated reports. The Council will continue to receive information
on consultant and professional service ageements on a regular basis. A biannual
informational report will be provided to Council for all professional service contracts,
including consultant contracts, approved by the City Manager or the Purchasing Manager
from $25,000 to $65,000. All professional service and consultant contracts geater than
$65,000 will continue to be presented to Council for approval. Additionally, during the
annual budget process, the Council Committees will be provided with an opportunity to
review the scope of services for anticipated consultant contracts other than those for
infrastructure projects over $65,000.
CMR: 184:04 Page 2 of 3
ATTACHMENTS
Assistant Director, Administrative Services
APPROVED BY:
Director,Services
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR: 184:04 Page 3 of 3
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