HomeMy WebLinkAbout2024-06-11 Policy & Services Committee Agenda PacketPOLICY AND SERVICES COMMITTEE
Regular Meeting
Tuesday, June 11, 2024
Council Chambers & Hybrid
7:00 PM
Amended Agenda
Amended agenda items appear below in RED
Policy and Services Committee meetings will be held as “hybrid” meetings with the option to
attend by teleconference/video conference or in person. To maximize public safety while still
maintaining transparency and public access, members of the public can choose to participate
from home or attend in person. Information on how the public may observe and participate in the
meeting is located at the end of the agenda. Masks are strongly encouraged if attending in
person. T h e m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o n
YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center https://midpenmedia.org.
VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621)
Meeting ID: 946 1874 4621 Phone: 1(669)900‐6833
PUBLIC COMMENTS
General Public Comment for items not on the agenda will be accepted in person for up to three
minutes or an amount of time determined by the Chair. General public comment will be heard for
30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Public
comments for agendized items will be accepted both in person and via Zoom for up to three
minutes or an amount of time determined by the Chair. Requests to speak will be taken until 5
minutes after the staff’s presentation or as determined by the Chair. Written public comments
can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the
Council and available for inspection on the City’s website. Please clearly indicate which agenda
item you are referencing in your subject line.
PowerPoints, videos, or other media to be presented during public comment are accepted only
by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,
the Clerk will have them shared at public comment for the specified item. To uphold strong
cybersecurity management practices, USB’s or other physical electronic storage devices are not
accepted.
Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,
posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not
create a facility, fire, or safety hazard; and (3) persons with such items remain seated when
displaying them and must not raise the items above shoulder level, obstruct the view or
passage of other attendees, or otherwise disturb the business of the meeting.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak inperson ONLY to any item NOT on the agenda. 13 minutes depending on #
of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end
of the agenda.
ACTION ITEMS
1.Presentation from Downtown Streets Team regarding the Downtown Streets Team
Program Presentation Added
2.Approval of Office of City Auditor FY2025 Task Orders Late Packet Report
Task 1: Citywide Risk Assessment
Task 2: Preparation of Annual Audit Plan
Task 3: Selection of External Financial Auditor and Annual Audit Coordination
Task 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline
and Other Ongoing Office Administrative Functions
3.Office of the City Auditor Presentation of the ALPR Technology Contract Management
Audit Item removed from the agenda
4.Office of the City Auditor Presentation of the Public Safety Building Construction Audit
Report Late Packet Report
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 946‐1874‐4621 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
1 Regular Meeting June 11, 2024
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org/agendas.
POLICY AND SERVICES COMMITTEERegular MeetingTuesday, June 11, 2024Council Chambers & Hybrid7:00 PMAmended AgendaAmended agenda items appear below in REDPolicy and Services Committee meetings will be held as “hybrid” meetings with the option toattend by teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621)Meeting ID: 946 1874 4621 Phone: 1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heard for30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.
Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,
posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do not
create a facility, fire, or safety hazard; and (3) persons with such items remain seated when
displaying them and must not raise the items above shoulder level, obstruct the view or
passage of other attendees, or otherwise disturb the business of the meeting.
CALL TO ORDER
PUBLIC COMMENT
Members of the public may speak inperson ONLY to any item NOT on the agenda. 13 minutes depending on #
of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end
of the agenda.
ACTION ITEMS
1.Presentation from Downtown Streets Team regarding the Downtown Streets Team
Program Presentation Added
2.Approval of Office of City Auditor FY2025 Task Orders Late Packet Report
Task 1: Citywide Risk Assessment
Task 2: Preparation of Annual Audit Plan
Task 3: Selection of External Financial Auditor and Annual Audit Coordination
Task 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline
and Other Ongoing Office Administrative Functions
3.Office of the City Auditor Presentation of the ALPR Technology Contract Management
Audit Item removed from the agenda
4.Office of the City Auditor Presentation of the Public Safety Building Construction Audit
Report Late Packet Report
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 946‐1874‐4621 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
2 Regular Meeting June 11, 2024
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org/agendas.
POLICY AND SERVICES COMMITTEERegular MeetingTuesday, June 11, 2024Council Chambers & Hybrid7:00 PMAmended AgendaAmended agenda items appear below in REDPolicy and Services Committee meetings will be held as “hybrid” meetings with the option toattend by teleconference/video conference or in person. To maximize public safety while stillmaintaining transparency and public access, members of the public can choose to participatefrom home or attend in person. Information on how the public may observe and participate in themeeting is located at the end of the agenda. Masks are strongly encouraged if attending inperson. T h e m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen MediaCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/94618744621)Meeting ID: 946 1874 4621 Phone: 1(669)900‐6833PUBLIC COMMENTSGeneral Public Comment for items not on the agenda will be accepted in person for up to threeminutes or an amount of time determined by the Chair. General public comment will be heard for30 minutes. Additional public comments, if any, will be heard at the end of the agenda. Publiccomments for agendized items will be accepted both in person and via Zoom for up to threeminutes or an amount of time determined by the Chair. Requests to speak will be taken until 5minutes after the staff’s presentation or as determined by the Chair. Written public commentscan be submitted in advance to city.council@CityofPaloAlto.org and will be provided to theCouncil and available for inspection on the City’s website. Please clearly indicate which agendaitem you are referencing in your subject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.Signs and symbolic materials less than 2 feet by 3 feet are permitted provided that: (1) sticks,posts, poles or similar/other type of handle objects are strictly prohibited; (2) the items do notcreate a facility, fire, or safety hazard; and (3) persons with such items remain seated whendisplaying them and must not raise the items above shoulder level, obstruct the view orpassage of other attendees, or otherwise disturb the business of the meeting.CALL TO ORDERPUBLIC COMMENT Members of the public may speak inperson ONLY to any item NOT on the agenda. 13 minutes depending on #of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the endof the agenda.ACTION ITEMS1.Presentation from Downtown Streets Team regarding the Downtown Streets TeamProgram Presentation Added2.Approval of Office of City Auditor FY2025 Task Orders Late Packet ReportTask 1: Citywide Risk AssessmentTask 2: Preparation of Annual Audit PlanTask 3: Selection of External Financial Auditor and Annual Audit CoordinationTask 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotlineand Other Ongoing Office Administrative Functions3.Office of the City Auditor Presentation of the ALPR Technology Contract ManagementAuditItem removed from the agenda4.Office of the City Auditor Presentation of the Public Safety Building Construction AuditReport Late Packet ReportFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)
ADJOURNMENT
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via email,
teleconference, or by phone.
1. Written public comments may be submitted by email to city.council@cityofpaloalto.org.
2. For in person public comments please complete a speaker request card located on the
table at the entrance to the Council Chambers and deliver it to the Clerk prior to
discussion of the item.
3. Spoken public comments for agendized items using a computer or smart phone will
be accepted through the teleconference meeting. To address the Council, click on the link
below to access a Zoom‐based meeting. Please read the following instructions carefully.
You may download the Zoom client or connect to the meeting in‐ browser. If using
your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 ,
Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in
older browsers including Internet Explorer. Or download the Zoom application onto
your smart phone from the Apple App Store or Google Play Store and enter in the
Meeting ID below.
You may be asked to enter an email address and name. We request that you
identify yourself by name as this will be visible online and will be used to notify you
that it is your turn to speak.
When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will
activate and unmute speakers in turn. Speakers will be notified shortly before they
are called to speak.
When called, please limit your remarks to the time limit allotted. A timer will be
shown on the computer to help keep track of your comments.
4. Spoken public comments for agendized items using a phone use the telephone number
listed below. When you wish to speak on an agenda item hit *9 on your phone so we
know that you wish to speak. You will be asked to provide your first and last name before
addressing the Council. You will be advised how long you have to speak. When called
please limit your remarks to the agenda item and time limit allotted.
CLICK HERE TO JOIN Meeting ID: 946‐1874‐4621 Phone: 1‐669‐900‐6833
Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public
programs, services and meetings in a manner that is readily accessible to all. Persons with
disabilities who require materials in an appropriate alternative format or who require auxiliary
aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at
(650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or
accommodations must be submitted at least 24 hours in advance of the meeting, program, or
service.
3 Regular Meeting June 11, 2024
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are
available for public inspection at www.CityofPaloAlto.org/agendas.
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: June 11, 2024
Report #:2405-3075
TITLE
Presentation from Downtown Streets Team regarding the Downtown Streets Team Program
RECOMMENDATION
Receive a presentation from the Downtown Streets Team (DST) about their program and
upcoming efforts. No action is requested during this item. It is a study session discussion.
BACKGROUND
The Downtown Streets Team requested the opportunity to make a presentation to the Council
Committee about their organization and programs. They will provide a PowerPoint
presentation prior to the meeting with some additional information.
FISCAL/RESOURCE IMPACT
There is no fiscal impact associated with this report or presentation. Separate from this
presentation, staff will be bringing a contract update related to Downtown Streets Team to the
City Council before the Council break.
ENVIRONMENTAL REVIEW
This is not a project and thus not subject to CEQA.
APPROVED BY:
Ed Shikada, City Manager
Item 1
Item 1 Staff Report
Packet Pg. 4
Item 1
Item 1 Presentation
Packet Pg. 5
INTRODUCTIONS
CPO – CHRIS RICHARDSON
NEW CEO – JULIE GARDNER
Item 1
Item 1 Presentation
Packet Pg. 6
PALO ALTO: 2005
Urban Blight Homelessness
Item 1
Item 1 Presentation
Packet Pg. 7
☐ The cold
☐ Not feeling safe at night/lack of sleep
☐ Services are lacking
☐ Don’t know where I’ll get my next meal
☐ Not sure if I’ll have shelter tonight or don’t like shelters
☐ Can’t shower, have clean clothes or practice good hygiene
☐ Have to stand in a lot of lines
☐ Can’t keep my things safe and have to carry them around
☐ No privacy
☐ Can’t always use the bathroom when I need to
☐ Other (please explain):
WORST PART ABOUT BEING
HOMELESS?
The way people look down at me
Item 1
Item 1 Presentation
Packet Pg. 8
HOMELESSNESS IS AN
EXPERIENCE
NOT AN
IDENTITY
Item 1
Item 1 Presentation
Packet Pg. 9
DST IS
ENDING
HOMELESSNESS
THROUGH THE
DIGNITY OF WORK
AND THE POWER
OF COMMUNITY
Item 1
Item 1 Presentation
Packet Pg. 10
DST CORE MODEL
§Unhoused and people at-risk of homelessness (Team Members) volunteer
to beautify their community
§In return, they earn a non-cash basic needs stipend, case management,
employment services and a support network
§LOW BARRIER
Item 1
Item 1 Presentation
Packet Pg. 11
BUILDING
COMMUNITY
Item 1
Item 1 Presentation
Packet Pg. 12
SUCCESS TEAM MEETING Item 1
Item 1 Presentation
Packet Pg. 13
STREETS TEAM ENTERPRISES
PAID TRANSITIONAL EMPLOYMENT
CASE MANAGEMENT
EMPLOYMENT SERVICES
LAUNCHED: JULY 2023
Item 1
Item 1 Presentation
Packet Pg. 14
Item 1
Item 1 Presentation
Packet Pg. 15
Item 1
Item 1 Presentation
Packet Pg. 16
MOVING PAST
2019– CLAIMS
2022- SF REGULATORY DISAGREEMENT
VISION
LEADERSHIP REFRESH
JOB PIPEINES (STE)
START SCC
OUTREACH
PLACE-BASED CASE MANAGEMENT
Item 1
Item 1 Presentation
Packet Pg. 17
GET INVOLVED
VISIT A TEAM MEETING
CONNECT
Julie Gardner
669.328.8444
Julie@StreetsTeam.org
Chris Richardson
650.804.6701
chris@StreetsTeam.org
Item 1
Item 1 Presentation
Packet Pg. 18
Policy & Services Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: June 11, 2024
Report #:2405-3105
TITLE
Approval of Office of City Auditor FY2025 Task Orders
Task 1: Citywide Risk Assessment
Task 2: Preparation of Annual Audit Plan
Task 3: Selection of External Financial Auditor and Annual Audit Coordination
Task 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline and
Other Ongoing Office Administrative Functions
BACKGROUND
This will be released as a late packet report.
APPROVED BY:
Kate Murdock
Item 2
Item 2 Staff Report
Packet Pg. 19
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: June 11, 2024
Report #:2405-3078
TITLE
Recommend City Council Approval of Various Task Orders with Baker Tilly for Internal Audit
Services 1) Extend deadline for FY 2024 Task Orders Task 1: Citywide Risk Assessment, Task 2:
Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor and Annual
Audit Coordination, 2) Execute New FY 2025 Task 5: Preparation of Quarterly Reports, Annual
Status Reports, Provision of City Hotline and Other Ongoing Office Administrative Functions,
and 3) Amend the budget for FY 2024 Task Orders; CEQA Status – Not a Project.
RECOMMENDATION
The City Auditor recommends that the Policy & Services Committee recommend City Council
approval of the following:
1. Extend the deadline from June 30, 2024 to December 31, 2024 for FY2024 Task Orders
still underway:
a. FY2024: Task 1: Citywide Risk Assessment
b. FY2024: Task 2: Preparation of Annual Audit Plan
c. FY2024: Task 3: Selection of External Financial Auditor and Annual Audit
Coordination
2. A new FY2025 Task 5 to commence on July 1, 2025 to support ongoing audit reporting
and administrative activities: Task 5: Preparation of Quarterly Reports, Annual Status
Reports, Provision of City Hotline and Other Ongoing Office Administrative Functions;
and
3. Amend FY2024 Task Orders to realign authorized budget with a net zero impact overall:
a. FY2024: Task 6: Evaluation and Benchmarking reduced by $20,000,
b. FY2024: Task 5: Preparation of Quarterly Reports, Annual Status Report,
Provision of City Hotline, and Other Ongoing Office Administrative Functions
increased by $20,000.
BACKGROUND
Item 2
Item 2 Late Packet Report
Packet Pg. 20
In accordance with our agreement with the City, Baker Tilly is required to conduct recurring
activities each year. Those recurring activities include the following tasks outlined in our
agreement.
• Task 1: Citywide Risk Assessment
• Task 2: Preparation of Annual Audit Plan
• Task 3: Selection of External Financial Auditor and Annual Audit Coordination
• Task 5: Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline
and Other Ongoing Office Administrative Functions
Various audit specific task orders are approved annually in alignment with the Annual Council
Approved Audit Workplan. Task Orders approved by the Council are executed by the Policy &
Services Committee Chair as the Project Manager for the Baker Tilly contract as stipulated in
the contract terms.
ANALYSIS
The Office of the City Auditor (OCA) is seeking three types of changes to task orders for the P&S
Committee’s recommendation for Council Approval. If these Task Orders are approved
unanimously by the Policy & Services Committee, this recommendation will be forwarded to
the full City Council approval on the June 18th consent calendar for Council approval.
1) Recommended Extension of Time (Attachment A)
FY2024 Task Orders are underway but not complete and currently are authorized through June
30, 2024. The recommended amendment would extend the term six months to December 31,
2024 for the task orders below. No change in budget is requested, this extension will enable
work underway to continue that was impacted by the change in City Auditor role.
• FY2024: Task 1: Beginning with year 1 and continuing at a minimum every other year
thereafter, prepare a citywide risk assessment following the same review and approval
requirements described in Task 2. The risk assessment process will be the primary
determinant of subsequent audit activity.
• FY2024: Task 2: Prepare an annual audit plan for review by the City Manager and
appropriate City Council Committee(s), and approval by the City council, that identifies
preliminary objectives of each audit to be performed, the schedule for each audit, and the
estimated not to exceed resources and costs for each audit. The city Auditor shall consult
with the city Attorney as necessary when developing audit plans. The annual audit plan will
be largely based on the risk assessment required in Task 1.
• FY2024: Task 3: Selection of an External Financial Auditor and Annual Audit Coordination.
2) New Task Orders for FY2025 (Attachment B)
Item 2
Item 2 Late Packet Report
Packet Pg. 21
To begin work in FY 2025, approval of the Task 5 commencing on July 1, 2025, ending June 30,
2025, will ensure support of ongoing audit reporting and administrative activities. Specifically,
Task 5 is “Preparation of Quarterly Reports, Annual Status Reports, Provision of City Hotline and
Other Ongoing Office Administrative Functions.” The work will include the review and
preparation of quarterly and annual reports, the provision of the City Hotline, and other
administrative functions. It will verify the reports for accuracy, timeliness, completeness, and
compliance with standards and regulations. The City Hotline's effectiveness, efficiency, and
compliance, including responsiveness and user satisfaction, will be evaluated. Administrative
functions will be assessed for efficiency, effectiveness, and compliance.
3) Amend FY2024 Task Orders to realign authorized budget with a net zero impact overall
(Attachment C)
In reconciling actual activity during the transition of both staffing and the fiscal year,
realignment of budgeted levels between task orders is recommended. No change in overall FY
2024 spending authority is recommended, however, this better aligns with the cost of these
tasks respectively.
The Office of the City Auditor would like to transfer unused funds from Task 6: Evaluation and
Benchmarking in the amount of $20,000 and reallocate these funds to Task 5: Preparation of
Quarterly Reports, Annual Status Report, Provision of City Hotline, and Other Ongoing
Administrative Functions.
FISCAL/RESOURCE IMPACT
Work recommended in these tasks is within both the approved scope and compensation of the
contract with Baker Tilly and funding levels in the FY2024 and FY2025 Operating Budget for the
Office of the City Auditor.
ENVIRONMENTAL IMPACT
Council action on this item is not a project as defined by CEQA because contracting for auditing
services is an organizational or administrative activity that will not result in direct or indirect
physical changes in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS:
Attachment A: Time Extension FY24 Task Orders 1, 2, & 3
Attachment B: FY25 Task 5: Preparation of Reports, City Hotline, & Other Tasks
Attachment C: Budget Alignment FY24 Task Orders 5 & 6
APPROVED BY:
Kate Murdock, City Auditor
Item 2
Item 2 Late Packet Report
Packet Pg. 22
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-01 Citywide Risk Assessment
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY24-01
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: November 1, 2023 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $35,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Councilmember Tanaka
8/28/2023
Council member Greg Tanaka
Baker Tilly US, LLP
City Auditor
8/29/2023
Adriane D. McCoy
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 23
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting the Citywide Risk Assessment involves four (4) primary
steps:
Step 1: Project Planning & Management
Step 2: Information Gathering
Step 3: Analysis
Step 4: Reporting
Step 1 – Project Planning & Management
This step includes those tasks necessary to solidify mutual understanding of the risk
assessment scope, objectives, deliverables, and timing as well as ensuring that appropriate
client and consultant resources are available and well-coordinated. Tasks include:
Finalize project design – The first project activities will be to:
o Identify communication channels and reporting relationships and
responsibilities of project staff
o Review and confirm project timelines
o Review and confirm deliverables
Arrange logistics/administrative support – Matters to be addressed include schedules
for interviews and data collection, contact persons in the departments, any other
logistical matters, etc.
Conduct kick-off meeting with key project stakeholders
Step 2 – Information Gathering
This step involves gathering information, through various means, that will enable the project
team to understand the various risks facing the City. Tasks include:
Request and review background information – the project team will develop an
information request(s) in order to obtain various background information from the
City. The request will include, but not be limited to:
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 24
o Strategic plan(s)
o Financial reports, including the most recent City Budget and Comprehensive
Annual Financial Report (CAFR)
o Operational policies and procedures
o Municipal code
o Consulting reports
o Other relevant information and reports
Conduct interviews with City Council and management
o Risk assessment interviews, aimed at understanding City functions and
identifying risks, will be conducted with City Council members as well as
department and division
Conduct a risk assessment survey, if necessary
Conduct research into key risks in order to identify relevant information to assess
risks
Overall, the project team will consider the risk categories including:
Strategic
Financial
Technology
Human Capital
Operational
Reputational
Economic
Compliance
Step 3 – Risk Analysis
In Step 3, the project team will develop a risk assessment consisting of auditable areas (also
referred to as an audit or risk universe). The risk assessment will be prepared in
consideration of the following risks types:
Environment, Strategy, and Governance – risks that have an organization wide impact
and are not subject to a specific department or function (e.g., ethics)
Significant Projects and Initiatives – risks associated with large projects (e.g., capital
projects, technology implementation) or City initiatives (e.g., employee engagement
initiative).
Function Specific Risks – risks associated with a specific department or function
(e.g., procurement policy compliance)
The project team will assess the likelihood and impact of potential adverse events in order to
quantitatively score each auditable area for purposes of prioritizing audit activities.
Step 4 – Reporting
In Step 4, the project team will finalize the draft Risk Matrix and prepare a draft Risk
Assessment Report. The project team will ask for input (general completeness, risk scoring)
on the Risk Matrix from key project stakeholders. Upon finalization of the Risk Matrix, the
project team will finalize the Risk Assessment Report.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 25
Deliverables:
The following deliverables will be prepared as part of this engagement:
Risk Assessment Report
Presentation of Results to City Council (note that this may be combined with
presentation of the Task 2 Annual Audit Plan)
Schedule of Performance
Anticipated Start Date: November 1, 2023
Anticipated End Date: June 30, 2024
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $35,000. The not-to-exceed budget is based on an estimate of 200 total project hours, of
which 20 are estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at
any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion
of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s
approval prior to traveling to Palo Alto.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 26
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-02 Annual Audit Plan
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY24-02
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: November 1, 2023 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $10,500
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Council member Greg Tanaka
Councilmember Tanaka
8/28/2023
Baker Tilly US, LLP
8/29/2023
Adriane D. McCoy
City Auditor
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 27
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to preparing the Annual Audit Plan involves two (2) primary steps:
Step 1: Consultation with City Council and Management
Step 2: Reporting
Step 1 – Consultation with City Council and Management
The Risk Matrix and Risk Assessment Report will serve as the primary drivers of the Annual
Audit Plan. The project team will initiate discussions over Risk Assessment results, potential
audit activities, and audit coverage with City Council and Management. The purpose of those
conversations will be to understand the priorities of City Council, and to develop a Draft
Annual Audit Plan:
The Draft Annual Audit Plan will identify the following components for each audit activity:
Audit activity type – audit or consulting activity
Audit objectives and scope
Anticipated budget – both in terms of hours and budget
Anticipated timeline
Step 2 – Reporting
The project team will present the Draft Annual Audit Plan to the City Council in order to
obtain input on each potential audit activity. Upon refining the plan, the project team will
finalize the Annual Audit Plan for presentation to City Council.
Deliverables
The following deliverable will be prepared as part of this engagement:
Annual Audit Plan
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 28
Schedule of Performance
Anticipated Start Date: November 1, 2023
Anticipated End Date: June 30, 2024
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $10,500. The not-to-exceed budget is based on an estimate of 50 total project hours, of
which 10 are estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. If at
any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion
of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s
approval prior to traveling to Palo Alto.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 29
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-03 External Financial Auditor
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY24-03
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $15,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Councilmember Tanaka
Council member Greg Tanaka
8/28/2023
Baker Tilly US, LLP
8/29/2023
City Auditor
Adriane D. McCoy
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 30
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to the Office of the City Auditor’s role on the financial audit involves one
(1) primary step in FY23:
Step 1: Assistance in Managing the Financial Audit
Step 1 – Role in Managing the Financial Audit
In FY23, the project team will assist in managing the financial audit and presenting financial
audit results to the Finance Committee and to the City Council, in accordance with municipal
code.
Deliverables:
Legislative documents will be prepared to present the financial statements and reports
prepared by an external auditor to the Finance Committee
Schedule of Performance
Anticipated Start Date: July 1, 2023
Anticipated End Date: June 30, 2024
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $15,000. The not-to-exceed budget is based on an estimate of 40 total project hours, of
which 40 are estimated to be completed by the City Auditor.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 31
Reimbursable Expenses
Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly
could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $3,250.
The following summarizes anticipated reimbursable expenses:
Round-trip Airfare – $1,000
Ground Transportation (car rental or Uber/taxi) - $400
Hotel accommodation - $1,500 (4 nights)
Food and incidentals – $350
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment A - Time
Extension FY24 Task
Order 1, 2, 3
Packet Pg. 32
4
7
7
5
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-05 Various Reporting & City Hotline
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY23-4.22
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2024 COMPLETION: June 30, 2025
4 TOTAL TASK ORDER PRICE: $60,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority to
sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 2
Attachment B - FY25 Task
5 Preparation of Reports,
City Hotline, & Other
Tasks
Packet Pg. 33
4
7
7
5
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•Services and Deliverables To Be Provided
•Schedule of Performance
•Maximum Compensation Amount and Rate Schedule (As Applicable)
•Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s will provide the following services in Task 5:
•Quarterly Reports
•Annual Status Report
•Provision of the City Hotline
•Office Administrative Functions
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Quarterly Reports (4 in FY2025)
•Annual Status Report
Schedule of Performance
Anticipated Start Date: July 1, 2024
Anticipated End Date: June 30, 2025
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $60,000. The not-to-exceed budget is based on an estimate of 300 total project hours, of
which 170 are estimated to be completed by the City Auditor.
Reimbursable Expenses
The City Auditor anticipates a trip every other month (total of 6 trips). Given this possibility,
Baker Tilly could incur reimbursable expenses for this Task.
Item 2
Attachment B - FY25 Task
5 Preparation of Reports,
City Hotline, & Other
Tasks
Packet Pg. 34
4
7
7
5
The not-to-exceed maximum for reimbursable expenses for this Task is $19,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $6,000 (6 round trip flights)
•Ground Transportation (car rental or Uber/taxi) - $2,400
•Hotel accommodation - $9,000 (24 nights)
•Food and incidentals – $2,100
Item 2
Attachment B - FY25 Task
5 Preparation of Reports,
City Hotline, & Other
Tasks
Packet Pg. 35
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-05 Various Reporting & City Hotline
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY24-05
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $90,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 36
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly will provide the following services in Task 5:
Quarterly Reports
Annual Status Report
Provision of the City Hotline
Office Administrative Functions
Deliverables:
The following deliverable will be prepared as part of this engagement:
Quarterly Reports (4 in FY24)
Annual Status Report
Schedule of Performance
Anticipated Start Date: July 1, 2023
Anticipated End Date: June 30, 2024
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $90,000. The not-to-exceed budget is based on an estimate of 300 total project hours, of
which 170 are estimated to be completed by the City Auditor.
Reimbursable Expenses
The City Auditor anticipates a trip every other month (total of 6 trips). Given this possibility,
Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $19,500.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 37
The following summarizes anticipated reimbursable expenses:
Round-trip Airfare – $6,000 (6 round trip flights)
Ground Transportation (car rental or Uber/taxi) - $2,400
Hotel accommodation - $9,000 (24 nights)
Food and incidentals – $2,100
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 38
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-06 Evaluation and Benchmarking
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the
Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this
Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY24-06
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2023 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $24,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greg Tanaka, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the
work described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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# !
!
$
! $
"$
#" !
Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 39
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
Services and Deliverables To Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to undergoing a peer review involves three (3) primary steps:
Step 1: Preparation for a peer review
Step 2: A peer review by an independent evaluator
Step 3: Cost per audit analysis
Step 1 – Preparation for a peer review
The Office of the City Auditor (OCA) will conduct a self-assessment before a peer review.
Step 2 – A peer review by a qualified organization
OCA will undergo a peer review conducted by an independent evaluator. In order to
accomplish this task, OCA will:
Request a peer review from the Association of Local Government Auditors (ALGA)
Provide documents and answer questions as requested by ALGA
Obtain a peer review report from ALGA
Step 3 – Cost per audit analysis
OCA will prepare a cost per audit analysis.
Deliverables:
Legislative documents will be prepared to present a peer review report from an
independent evaluator.
Schedule of Performance
Anticipated Start Date: June 1, 2023
Anticipated End Date: June 30, 2024
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 40
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $24,000. The not-to-exceed budget is based on an estimate of 95 total project hours, of
which 25 are estimated to be completed by the City Auditor.
Reimbursable Expenses
Baker Tilly anticipates no travel costs. All procedures including interviews and documentation
reviews are expected to be completed remotely.
DocuSign Envelope ID: 64EC69FD-9F22-4E31-A074-737EA405F27F
Item 2
Attachment C - Budget
Alignment FY24 Task
Order 5, 6
Packet Pg. 41
Policy & Services Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: June 11, 2024
Report #:2405-3106
TITLE
Office of the City Auditor Presentation of the ALPR Technology Contract Management Audit
BACKGROUND
This will be released as a late packet report.
APPROVED BY:
Kate Murdock
Item 3
Item 3 Staff Report
Packet Pg. 42
Policy & Services Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: June 11, 2024
Report #:2405-3107
TITLE
Office of the City Auditor Presentation of the Public Safety Building Construction Audit Report
BACKGROUND
This will be released as a late packet report.
APPROVED BY:
Kate Murdock
Item 4
Item 4 Staff Report
Packet Pg. 43
Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: June 11, 2024
Report #:2405-3084
TITLE
Recommend the City Council Approve the Office of the City Auditor Presentation of the Public
Safety Building Construction Audit Report
RECOMMENDATION
The City Auditor recommends that the Policy & Services Committee review and
recommend that the City Council Approve the Public Safety Building Construction
Audit Report
BACKGROUND
Baker Tilly US, LLP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for
the City of Palo Alto (the City) performed construction audit services on the Public Safety
Building project. The objectives of this audit were to verify that billings to the City from the
Architect, Engineer, Inspector of Record, Construction Manager, Contractor, and Waterproofing
Inspector were compliant with the terms of the applicable contracts.
DISCUSSION
The new Public Safety Building will house the Police Department, 911 Emergency Dispatch
Center, the Emergency Operations Center, the Office of Emergency Services, and the
administration needs of the Fire Department. The Public Safety Building is part of the Capital
Improvement (Infrastructure) Plan introduced in 2014. Non-compliance with contract terms
related to project billings can result in cost overruns that impact the overall project budget.
FISCAL/RESOURCE IMPACT
The Office of the City Auditor worked primarily with the Public Works Department and engaged
with additional stakeholders, as necessary. The attached report summarizes the analysis, audit
findings, and recommendations, if any.
ATTACHMENTS
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Attachment A: Public Safety Building Construction Audit Report, May 21, 2024
APPROVED BY:
Kate Murdock, City Auditor
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May 21, 2024
City of Palo Alto
Office of the City Auditor
Public Safety Building Construction
Audit Report
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Safety Building
Construction Audit
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Contents
Baker Tilly US, LLP, trading as Baker Tilly, is an independent member of Baker Tilly International. Baker Tilly International Limited is an English company. Baker
Tilly International provides no professional services to clients. Each member firm is a separate and independent legal entity, and each describes itself as such.
Baker Tilly US, LLP is not Baker Tilly International’s agent and does not have the authority to bind Baker Tilly International or act on Baker Tilly International’s
behalf. None of Baker Tilly International, Baker Tilly US, LLP nor any of the other member firms of Baker Tilly International has any liability for each other’s acts
or omissions. The name Baker Tilly and its associated logo is used under license from Baker Tilly International Limited.
EXECUTIVE SUMMARY ................................................................................................. 1
INTRODUCTION ............................................................................................................. 2
AUDIT RESULTS ............................................................................................................ 4
APPENDICES ................................................................................................................. 5
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1
Executive Summary
Purpose of the Audit
Baker Tilly US, LLP (Baker Tilly), in its capacity serving as the Office of the City Auditor (OCA) for the
City of Palo Alto (the City) performed construction audit services on the Public Safety Building project.
The objectives of this audit were to verify that billings to the City from the Architect, Engineer,
Inspector of Record, Construction Manager, Contractor, and Waterproofing Inspector were compliant
with the terms of the applicable contracts.
Report Highlights
Baker Tilly reviewed documentation provided by the Public Works Department for each of the
selected scopes on a monthly basis through March 2024 and found project billings were compliant
with the terms of the respective contracts. The billings, change orders, and additional services related
to each scope had the proper supporting documentation and authorizations. During the audit, we
identified several immaterial billing errors (see Finding 1 and Appendix A); however, these are
considered minor when compared to the overall value of the costs reviewed. The results of this audit
indicate the City’s implemented controls with respect to the review and approval of project billings are
operating as intended.
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Introduction
1 Invoiced amount includes design and construction administration services for the California Avenue Garage
project.
2 Invoiced amount includes project development and construction management services for the Fire Station No.
3 and California Avenue Garage projects.
Objective The objectives of this audit were to verify billings from the Architect, Engineer,
Inspector of Record, Construction Manager, Contractor, and Waterproofing Inspector
were contractually compliant, adequately supported, and authorized by the City.
Background The new Public Safety Building will house the Police Department, 911 Emergency
Dispatch Center, the Emergency Operations Center, the Office of Emergency
Services, and the administration needs of the Fire Department. The Public Safety
Building is part of the Capital Improvement (Infrastructure) Plan introduced in 2014.
Non-compliance with contract terms related to project billings can result in cost
overruns that impact the overall project budget.
Scope Our testing scope encompassed billings and cost documentation provided by the Public
Works Department through March 2024. This included the Swinerton Builders payment
application dated December 31, 2023, and billings for the other scopes through February
2024. At that time, billings reviewed for each of the contract scope subject to audit were
as follows:
Scope Contractor Invoiced Amount
Architect Ross Drulis Cusenbery (RDC) $ 9,497,850 1
Engineer Romig Engineers 92,976
Inspector of Record 4Leaf, Inc. 546,534
Construction Manager Nova Partners, Inc. 9,264,427 2
Contractor Swinerton Builders 86,888,316
Waterproofing Inspector Consolidated Engineering Laboratories (CEL) 106,317
Total $ 106,396,420
Methodology
and Analysis
To achieve the audit objectives, Baker Tilly performed the following procedures and
analysis:
• Inspected the contract to identify the key terms related to project billings for each
scope subject to audit
• Analyzed billings for each scope subject to audit on a monthly basis as follows:
o Created control schedules for billings and payment applications
o Footed and recalculated amounts billed to test for mathematical accuracy
o Rolled forward previous billed amounts to ensure reported totals were
accurate
o Verified lien waivers were collected where applicable
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INTRODUCTION
3 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto
Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through June 2022
with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Tilly's Public Sector practice, as
City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted after the third year
of Baker Tilly’s contract.
o Verified monthly invoices were submitted with a description of services
performed and the applicable charges (identification of personnel, hours
worked, hourly rates, and reimbursable expense)
o Where applicable, verified hourly rates reconciled to agreed upon rates
o Where applicable, reconciled support for reimbursable expenses to third
party cost support
o Verified aggregate billings did not exceed contractual limitations
o Verified billings and payment applications had the appropriate
authorizations
• Analyzed change orders, amendments, and additional services in scope as
follows:
o Reconciled the amounts reflected on change orders to supporting
documentation
o Verified the change order costs were contractually compliant and
reconciled to agreed upon rates where appliable
o Recalculated any markups and insurance amounts to ensure the applicable
rates adhered to the contract terms
o Verified change orders and additional services had the required
authorization
• Communicated the testing results to the Public Works Department on a monthly
basis:
o Verified any identified billing errors were corrected (see Appendix A)
o Requested additional documentation as necessary to complete testing
Compliance
Statement
This audit activity was conducted from March 2021 to March 2024 in accordance with
generally accepted government auditing standards, except for the requirement of an
external peer review 3. Those standards require that we plan and perform the audit to
obtain sufficient, appropriate evidence to provide a reasonable basis for our findings
and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit
objectives.
Organizational
Strengths
During this audit activity, we observed that the controls implemented by the City
related to the review of billings and change orders were operating as intended. This is
evidenced based on the low occurrence of findings and immaterial values thereof. All
parties were accommodating during the audit process and were forthcoming with
answers to questions and requests for additional documentation.
The Office of the City Auditor greatly appreciates the support of the Public Works Department in
conducting this audit activity.
Thank you!
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Audit Results
Finding 1:
Immaterial billing
errors
Baker Tilly identified nine billing errors totaling $10,122 throughout the audit
engagement. These errors were mostly related to labor billing rate errors
where the contractor in question billed for services at rates that were not
compliant with the agreed upon rates. Each of the identified errors was
resolved on a subsequent billing from the applicable contractor. See
Appendix A for additional detail related to the specific billing errors identified.
Recommendation No additional action is required. All billing errors have been resolved. In
addition, the errors in question occurred during the early months of our audit
and the occurrence of findings decreased as the audit progressed.
Recommended
follow-up
activities
As of the report date the project was not yet complete. Baker Tilly
recommends performing a closeout audit upon final completion of the
project. The current substantial completion is anticipated on July 31, 2024.
The closeout audit would kick off in August 2024 and conclude upon receipt
of the documentation required to complete closeout testing. The primary
objectives of the closeout audit would include:
• Analyze billings and change orders for the selected audit scopes
received by the Public Works Department from March 2024 through
project completion (Swinerton Payment applications subsequent to
December 31, 2023, and billings from the other selected scopes
subsequent to February 2024).
• Verify the allowances included in the construction contract are
reconciled and closed out per the contract terms
• Verify final lien waivers are collected from subcontractors
• Confirm final amounts paid to each contractor in the scope of the
audit does not exceed the contractual limitations
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Appendices
Appendices
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Appendix A: Public Safety Building – Construction Audit Issues Log
The following audit issues totaling $10,122 were identified during monthly testing. Each of these issues were communicated to the Public Works
Department when identified. All audit issues have been resolved.
AI ID
No. Audit Issue AI Date
Response
Date Status Result Amount
001 Swinerton Builders - COR #25 which was
included in Change Order #4 included a
duplicate charge for equipment markup
totaling $356.77 (see RFI #7).
9/23/2021 11/15/2021 Closed Public Works provided Change Order #8
reflecting the credit.
Baker Tilly reviewed Change Order #8
and confirmed credit.
$ 356.77
002 Nova Partners - Invoices from June 2017 to
December 2017 billed an Estimator at a
rate of $175 per hour rather than the
agreed-upon rate of $160 per hour. This
resulted in a billing rate overcharge totaling
$6,975 (see RFI #1).
10/15/2021 1/12/2022 Closed Public Works provided Invoice #104376
reflecting the credit.
Baker Tilly reviewed Invoice #104376
and confirmed credit.
$ 6,975.00
003 Consolidated Engineering Laboratories -
Invoice #191863 billed overtime at a rate of
$161.25 and double-time at a rate of
$215.00 rather than the agreed upon rates
of $142.50 for overtime and $190 for double
time. This resulted in a billing rate
overcharge totaling $400 (see RFI #24).
3/16/2022 4/13/2022 Closed Public Works provided Invoice #195679
reflecting the credit.
Baker Tilly reviewed Invoice #195679
and confirmed credit.
$ 400.00
004 Romig Engineers - Invoice #27139 and
#28131 billed the position "Engineering
Technician Prevailing Wage" at a rate of
$150 per hour rather than the agreed-upon
rate of $144 per hour. This resulted in a
billing rate overcharge totaling $473.40 (see
RFI #27).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31394
and #31569 reflecting the credit.
Baker Tilly reviewed Invoice #31394 and
#31569 and confirmed credit.
$ 473.40
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Appendix A: Public Safety Building – Construction Audit Issues Log (cont.)
7
AI ID
No. Audit Issue AI Date
Response
Date Status Result Amount
005 Romig Engineers - Invoice #28131 billed
overtime at a rate of $225 rather than the
agreed upon rate of $216. This resulted in a
billing rate overcharge totaling $63.00 (see
RFI #28).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31569
reflecting the credit.
Baker Tilly reviewed Invoice #31569 and
confirmed credit.
$ 63.00
006 Romig Engineers - Invoice #27784B billed
the position "Engineering Technician
Prevailing Wage" at a rate of $150 per hour
rather than the agreed-upon rate of $144
per hour. Overtime was also billed at a rate
of $225 rather than the agreed upon rate of
$216. This resulted in a billing rate
overcharge totaling $333.00 (see RFI #26).
4/21/2022 5/31/2023 Closed Public Works provided Invoice #31394
reflecting the credit.
Baker Tilly reviewed Invoice #31394 and
confirmed credit.
$ 333.00
007 Consolidated Engineering Laboratories
(CEL) Invoice #196433 billed the position
"Waterproof Inspector" at rate of $99.28 per
hour rather than the agreed-upon rate of
$96.90 per hour. This resulted in a billing
rate overcharge totaling $310.59 (see RFI
#31).
6/27/2022 7/26/2022 Closed Public Works provided Invoice #198423
reflecting the credit.
Baker Tilly reviewed Invoice #198423
and confirmed credit.
$ 310.59
008 Consolidated Engineering Laboratories
(CEL) Invoice #197348 billed the position
"Waterproof Inspector" at rate of $99.28 per
hour rather than the agreed-upon rate of
$96.90 per hour. This resulted in a billing
rate overcharge totaling $166.60 (see RFI
#35).
7/26/2022 7/26/2022 Closed Public Works provided Invoice #198423
reflecting the credit.
Baker Tilly reviewed Invoice #198423
and confirmed credit.
$ 166.60
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Appendix A: Public Safety Building – Construction Audit Issues Log (cont.)
8
AI ID
No. Audit Issue AI Date
Response
Date Status Result Amount
009 4 Leaf, Inc - Invoice #J3909W billed time for
Traci Craton at $169.95 per hour rather
than the agreed-upon rate of $54 per hour.
This resulted in a billing rate overcharge
totaling $1,043.64 (See RFI #42).
7/28/2023 8/29/2023 Closed Public Works provided Invoice #J309X-
REV reflecting the correct rates.
Baker Tilly reviewed Invoice #J309X-
REV and confirmed.
$ 1,043.64
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