HomeMy WebLinkAbout2024-12-10 Policy & Services Committee Agenda PacketPOLICY AND SERVICES COMMITTEE
Regular Meeting
Tuesday, December 10, 2024
Council Chambers & Hybrid
7:00 PM
Policy and Services Committee meetings will be held as “hybrid” meetings with the option to
attend by teleconference/video conference or in person. Information on how the public may
observe and participate in the meeting is located at the end of the agenda. The meeting will be
broadcast on Cable TV Channel 26, live on 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
1.2025 City Council Priority Setting Process Discussion and
Recommendations Supplemental Report
2.Referral: Discussion and Recommendation to Council Regarding Potential New Procedure
for Councilmembers to Make Referrals to Staff
3.Recommend City Council Approval of Various Task Orders with Baker Tilly for Internal
Audit Services to 1) Execute FY 2025 Task 1: Citywide Risk Assessment, Task 2:
Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor and
Annual Audit Coordination; 2) Amend the FY 2025 budget for Task Orders; and 3) Amend
the FY 2024 budget for FY 2024 Task 4: Execute the Annual Audit Plan
4.Office of the City Auditor Presentation of Recruitment & Succession Planning Audit
Report
5.Approval of Office of the City Auditor Annual Risk Assessment and FY2025 Audit Plan
Late Packet Report
FUTURE MEETINGS AND AGENDAS
Members of the public may not speak to the item(s)
ADJOURNMENT
1.2025 City Council Priority Setting Process Discussion and Recommendations
5.Recommend City Council Approve the Office of the City Auditor Risk Assessment and FY
2025 Audit Plan and Corresponding Task Orders
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.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
1 Regular Meeting December 10, 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, December 10, 2024Council Chambers & Hybrid7:00 PMPolicy and Services Committee meetings will be held as “hybrid” meetings with the option toattend by teleconference/video conference or in person. Information on how the public mayobserve and participate in the meeting is located at the end of the agenda. The meeting will bebroadcast on Cable TV Channel 26, live on 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)900‐6833PUBLIC 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 heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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
1.2025 City Council Priority Setting Process Discussion and
Recommendations Supplemental Report
2.Referral: Discussion and Recommendation to Council Regarding Potential New Procedure
for Councilmembers to Make Referrals to Staff
3.Recommend City Council Approval of Various Task Orders with Baker Tilly for Internal
Audit Services to 1) Execute FY 2025 Task 1: Citywide Risk Assessment, Task 2:
Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor and
Annual Audit Coordination; 2) Amend the FY 2025 budget for Task Orders; and 3) Amend
the FY 2024 budget for FY 2024 Task 4: Execute the Annual Audit Plan
4.Office of the City Auditor Presentation of Recruitment & Succession Planning Audit
Report
5.Approval of Office of the City Auditor Annual Risk Assessment and FY2025 Audit Plan
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.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
2 Regular Meeting December 10, 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, December 10, 2024Council Chambers & Hybrid7:00 PMPolicy and Services Committee meetings will be held as “hybrid” meetings with the option toattend by teleconference/video conference or in person. Information on how the public mayobserve and participate in the meeting is located at the end of the agenda. The meeting will bebroadcast on Cable TV Channel 26, live on 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)900‐6833PUBLIC 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 heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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 # ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end ofthe agenda.ACTION ITEMS1.2025 City Council Priority Setting Process Discussion andRecommendations Supplemental Report2.Referral: Discussion and Recommendation to Council Regarding Potential New Procedurefor Councilmembers to Make Referrals to Staff3.Recommend City Council Approval of Various Task Orders with Baker Tilly for InternalAudit Services to 1) Execute FY 2025 Task 1: Citywide Risk Assessment, Task 2:Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor andAnnual Audit Coordination; 2) Amend the FY 2025 budget for Task Orders; and 3) Amendthe FY 2024 budget for FY 2024 Task 4: Execute the Annual Audit Plan4.Office of the City Auditor Presentation of Recruitment & Succession Planning AuditReport5.Approval of Office of the City Auditor Annual Risk Assessment and FY2025 Audit PlanLate Packet ReportFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENT1.2025 City Council Priority Setting Process Discussion and Recommendations5.Recommend City Council Approve the Office of the City Auditor Risk Assessment and FY
2025 Audit Plan and Corresponding Task Orders
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.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
3 Regular Meeting December 10, 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, December 10, 2024Council Chambers & Hybrid7:00 PMPolicy and Services Committee meetings will be held as “hybrid” meetings with the option toattend by teleconference/video conference or in person. Information on how the public mayobserve and participate in the meeting is located at the end of the agenda. The meeting will bebroadcast on Cable TV Channel 26, live on 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)900‐6833PUBLIC 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 heardfor 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 tothree minutes or an amount of time determined by the Chair. Requests to speak will be takenuntil 5 minutes after the staff’s presentation or as determined by the Chair. Written publiccomments can be submitted in advance to city.council@CityofPaloAlto.org and will be providedto the Council and available for inspection on the City’s website. Please clearly indicate whichagenda item 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 # ofspeakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard at the end ofthe agenda.ACTION ITEMS1.2025 City Council Priority Setting Process Discussion andRecommendations Supplemental Report2.Referral: Discussion and Recommendation to Council Regarding Potential New Procedurefor Councilmembers to Make Referrals to Staff3.Recommend City Council Approval of Various Task Orders with Baker Tilly for InternalAudit Services to 1) Execute FY 2025 Task 1: Citywide Risk Assessment, Task 2:Preparation of Annual Audit Plan, Task 3: Selection of External Financial Auditor andAnnual Audit Coordination; 2) Amend the FY 2025 budget for Task Orders; and 3) Amendthe FY 2024 budget for FY 2024 Task 4: Execute the Annual Audit Plan4.Office of the City Auditor Presentation of Recruitment & Succession Planning AuditReport5.Approval of Office of the City Auditor Annual Risk Assessment and FY2025 Audit PlanLate Packet ReportFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENT1.2025 City Council Priority Setting Process Discussion and Recommendations5.Recommend City Council Approve the Office of the City Auditor Risk Assessment and FY2025 Audit Plan and Corresponding Task OrdersPUBLIC COMMENT INSTRUCTIONSMembers 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 thetable at the entrance to the Council Chambers and deliver it to the Clerk prior todiscussion of the item.3. Spoken public comments for agendized items using a computer or smart phone willbe accepted through the teleconference meeting. To address the Council, click on the linkbelow 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 usingyour 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 inolder browsers including Internet Explorer. Or download the Zoom application ontoyour smart phone from the Apple App Store or Google Play Store and enter in theMeeting ID below.You may be asked to enter an email address and name. We request that youidentify yourself by name as this will be visible online and will be used to notify youthat it is your turn to speak.When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk willactivate and unmute speakers in turn. Speakers will be notified shortly before theyare called to speak.When called, please limit your remarks to the time limit allotted. A timer will beshown on the computer to help keep track of your comments.4. Spoken public comments for agendized items using a phone use the telephone numberlisted below. When you wish to speak on an agenda item hit *9 on your phone so weknow that you wish to speak. You will be asked to provide your first and last name beforeaddressing the Council. You will be advised how long you have to speak. When calledplease limit your remarks to the agenda item and time limit allotted.CLICK HERE TO JOIN Meeting ID: 946‐1874‐4621 Phone: 1‐669‐900‐6833Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its publicprograms, services and meetings in a manner that is readily accessible to all. Persons withdisabilities 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.
California Government Code §84308, commonly referred to as the "Levine Act," prohibits an
elected official of a local government agency from participating in a proceeding involving a
license, permit, or other entitlement for use if the official received a campaign contribution
exceeding $250 from a party or participant, including their agents, to the proceeding within the
last 12 months. A “license, permit, or other entitlement for use” includes most land use and
planning approvals and the approval of contracts that are not subject to lowest responsible bid
procedures. A “party” is a person who files an application for, or is the subject of, a proceeding
involving a license, permit, or other entitlement for use. A “participant” is a person who actively
supports or opposes a particular decision in a proceeding involving a license, permit, or other
entitlement for use, and has a financial interest in the decision. The Levine Act incorporates the
definition of “financial interest” in the Political Reform Act, which encompasses interests in
business entities, real property, sources of income, sources of gifts, and personal finances that
may be affected by the Council’s actions. If you qualify as a “party” or “participant” to a
proceeding, and you have made a campaign contribution to a Council Member exceeding $250
made within the last 12 months, you must disclose the campaign contribution before making
your comments.
4 Regular Meeting December 10, 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: December 10, 2024
Report #:2410-3673
TITLE
2025 City Council Priority Setting Process Discussion and Recommendations
RECOMMENDATION
Staff recommends the Policy and Services Committee make recommendations to the City Council
regarding the 2025 priority-setting process and annual retreat in January.
This includes recommending Council forgo a substantive review of the City Council Procedures and
Protocols Handbook, given that significant edits were made in 2024.
BACKGROUND
The City Council Procedures and Protocols Handbook (Handbook), Section 7(b) Annual Council Priorities,
defines a Priority as topic that will receive particular, unusual and significant attention during the year1.
Council Priorities should reflect shorter-term projects and goals and should be limited to no more than
three to four per year, with an up to three-year time limit to be set at its annual retreat. Within each
Priority, Council may identify up to three specific objectives.
The 2024 Priorities, as selected at the City Council’s Annual Retreat on January 29, 20242 are:
Economic Development and Transition
Climate Change and the Natural Environment: Protection and Adaptation
Housing for Social and Economic Balance
Community Health, Safety, Wellness & Belonging
The Council Handbook also refers to the Council Values, which are defined as enduring goals and
intention to guide the work of the Council. These values help guide decisions that:
1. Balance revenues and expenses, now and in the future.
2. Are environmentally sustainable.
1 City Council Procedures and Protocols Handbook: https://www.cityofpaloalto.org/files/assets/public/v/6/city-
clerk/city-charterprocedures/2024-adopted-council-protocols-and-procedures-manual-10.2024.pdf
2 City Council Retreat 1/29/2024: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=13339
Item 1
Item 1 Staff Report
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3. Integrate equity into our decisions, considering how decisions affect people differently based on
their identity or circumstances.
4. Make decisions that create a healthy, safe and welcoming community for all.
5. Safeguard public trust through transparent practices and open communication.
6. Embrace innovation.
The Handbook also states that if needed, the Policy and Services Committee make recommendations to
the Council about the process that will be used at the Annual Retreat, paying particular attention to the
number of priorities suggested by Councilmembers.
This report outlines recommendations for the Policy & Services to discuss and consider.
ANALYSIS
Focused Priorities and Resources
Council Priorities
The purpose of establishing priorities is to assist the Council and staff to better allot and utilize time for
discussion and decision making. Adhering to our established policy of focusing on a maximum of four
priorities each year supports our effectiveness and meaningful progress on key issues. At the 2024
Annual Retreat, Council elected to continue the prior year’s priorities, shifting discussion toward longer-
term strategic approach to issues and initiatives. A 2024 Council Priorities and Objectives update on Q4
activity (October-December), is expected to be shared in January prior to the Annual Retreat.
With two new councilmembers, the 2025 Annual Retreat is the time to revisit priorities to ensure
alignment with both fresh perspectives and emerging issues. Staff recommends that the Council again,
take a longer-term strategic approach, focusing on issues and initiatives over a two-year period to allow
for sustained progress and meaningful impact on priorities.
Per the Handbook process, the Policy & Services Committee recommends to the Council, which
suggestions if any, should be considered at the Annual Retreat. Attachment A includes responses to
date from the survey on Council Priority recommendations.
Standing and Ad Hoc Committees as resources to advance Council Priorities
At its 2024 Annual Retreat, the Council took a strategic approach to advancing its identified priorities,
engaging in a thoughtful discussion on its envisioned role in each priority area. This approach included
the identification of ad hoc committees to advance specific goals. In 2024, there were seven Ad Hoc
committees in addition to the Council’s standing committees (Finance, Policy & Services, Council
Appointed Officers, and City/Schools Liaison): Retail, Stanford, Housing, Climate Action, Rail, Cubberley
and El Camino Real.
According to the Council Handbook 1.2(f) Ad Hoc Committees- the Council may create Ad Hoc
Committees on a limited time basis where necessary to study City business in greater depth than is
possible in the time allotted for Council and Standing Committee meetings. Ad Hocs are intended to be
temporary, and therefore should be concluded or at least reconsidered each year. Most Ad Hocs will
complete their work within one year or less, though in some cases the need for an Ad Hoc may extend
for several years. For Ad Hocs that have a single or limited purpose and are dissolved in a short period of
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time--one year or less--the Ad Hoc may meet without observing Brown Act procedures. Ad Hocs that
have continuing subject matter jurisdiction over a matter or group of related matters, or that continue
their work for more than one year, should observe Brown Act procedures.
2025 Council Priority Discussion:
Council Ad Hoc Committees:
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Staff is currently in discussion with MRG to determine their ability to facilitate the Annual Retreat.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
Attachment A: Council and Council-elect Survey Responses on 2025 Priorities
APPROVED BY:
Ed Shikada, City Manager
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ATTACHMENT A
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Council and Council-elect Survey Responses on 2025 Priorities
Per the City Council Procedures and Protocols Handbook process, the Policy & Services Committee
recommends to the Council, which suggestions if any, should be considered at the Annual Retreat. The
Council and Council-elect were surveyed November 15 - November 27 on recommended 2025 Priorities
for the Policy & Services Committee to consider, below are the responses received at the publishing of
this report:
Councilmember Veenker
I suggest:
•Climate and Sustainability Action and Adaptation (our goal is not Climate Change, it is Climate
Action)
•Community Health, Safety, Wellness & Belonging
•Economic Development
•Housing for Social & Economic Balance
It would be good if we could also share any ideas for the "placemat" at a time that allows staff to
consider them during development of the more detailed plan. That way, staff can have thought through
our more specific suggestions in the context of other demands, instead of as an afterthought. Staff may
still recommend against these suggestions, but it allows for greater reflection than our throwing out
ideas during a public meeting and asking for your first impression. I have a couple ideas that I thought I'd
mention at the retreat, but I'm not sure if that's the right timing.
Councilmember-elect Lu
I realize the final priorities will probably evolve incrementally, so I'm taking some refinements /
prioritization with existing priorities. My hope is to have the clearest possible milestones (or finish)
projects that make it into our final list.
My top 3 (unranked):
1. Housing for Economic Balance
o Clear milestones for the San Antonio + Downtown plans
o Finalize plans + restart Buena Vista redevelopment
o Implementation of Housing Element Goals
2. Economic Development
o Clear milestones for Cal Ave / University streetscapes (i.e. designs and funding?)
o Implement another round of retail streamlining ordinances, focused on a more complex
set of zoning issues (including parking)
o Permanent parklet ordinance (with as much simplicity + documentation for
3. Community Safety and Wellness
o Taking a Vision Zero goal (with a deadline and plan to fund improvements) coming out
of our Safe Systems / Bike and Pedestrian planning processes
o TBD milestones for mental health resources (with a focus on youth)”
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Attachment A - Council
and Council-elect Survey
Responses on 2025
Priorities
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: December 10, 2024
Report #:2410-3667
TITLE
Referral: Discussion and Recommendation to Council Regarding Potential New Procedure for
Councilmembers to Make Referrals to Staff
RECOMMENDATION
Staff recommends the Policy and Services Committee discuss the City Council referral to
consider establishing a mechanism for Councilmembers to make simple referrals to staff, in lieu
of requiring a Colleagues Memo.
BACKGROUND
On May 20, 2024, during discussion of the City Council Procedures and Protocols Handbook, the
City Council referred to the Policy and Services Committee the following:
Whether there should be a mechanism under Council Comments to be able to refer to
staff a simpler request than would be required in a Colleague's Memo (with the
boundaries defined).
Staff is bringing this item to the Policy and Services Committee for discussion.
ANALYSIS
By procedure and practice, there are several existing ways that the City Council initiates new
projects or assignments. The Council can initiate new work as part of annual planning during
the City Council Retreat and Priority-setting. In addition, the City Council acting as body can
refer follow-up or related work to staff during a City Council agenda item. For City Council
Members acting on their own or in a group of two or three, the Procedures and Protocols
Handbook provides that City Council Members may confer with staff on potential new projects
or initiatives, generally limited to one hour of initial work (the “one hour rule”). For projects
requiring more than one hour, two or three City Council Members may recommend to the
whole City Council, through a Colleagues’ Memo, that a new project or assignment be initiated
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and placed at an appropriate place within the City Council‘s existing priorities and workplan.
Attachment A. The full handbook is online at:
https://www.cityofpaloalto.org/files/assets/public/v/5/city-clerk/city-
charterprocedures/adopted-council-protocols-and-procedures-manual.pdf. Context on the
inclusion of these sections is that they represent the current processes related to this
discussion topic.
•Written requests minimize the likelihood of misunderstandings and differing
expectations of proposals and the follow-up required.
•There are currently no requirements for the length or time required to prepare a
Colleagues Memo. Memos may be as brief or comprehensive as Councilmembers feel
necessary to communicate the issues.
•Colleague Memos appear on the City Council agenda, enabling public awareness in
advance of Council consideration and action.
•Colleagues Memos can address a variety of topics, with a wide range of time and
resources required to bring the issue to fruition. Some Colleagues Memo issues are
straightforward and can be addressed the same night they are raised, with no further
resources required. Other Colleagues Memos initiate complex programs or services that
may take many months and significant financial and staff resources to realize. The
Colleagues Memo process enables staff to identify fiscal and staff resources required to
address the issue proposed, so that Council can consider the proposal in balance with
the Council’s priorities and the overall workplan.
•The City Council recently streamlined the process for handling routine matters such as
allocation of Council Contingency funds up to $10,000 so that Colleagues Memos are
not required.
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circumstances, a Colleagues Memo enables thoughtful City Council action that provides the
benefits outlined above.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMMENTS
APPROVED BY:
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Excerpts from the City Council Procedures and Protocols Handbook
The full handbook is online at:
https://www.cityofpaloalto.org/files/assets/public/v/5/city-clerk/city-
charterprocedures/adopted-council-protocols-and-procedures-manual.pdf
Part I: City Council Procedures
2.4 Colleagues’ Memos
Council members may bring forward a colleagues’ memo on any topic to be considered
by the entire Council. A minimum of two Council members are required to place such a
memo on the agenda, reflective of the Council procedure requiring a motion and a
second for consideration of a motion by the Council. Up to three Council members may
sign a colleague memo. To comply with the Brown Act, three is the maximum number
Council members who may discuss or sign onto a colleagues’ memo.
Prior to preparing a colleagues’ memo, Council members should consult with the City
Manager to determine whether the City Manager is able to address the issues as part of
their operational authority and within current budgeted resources. Colleagues’ memos
should include a section drafted by the City Manager that identifies any potential
staffing or fiscal impacts of the contemplated action. Council members shall provide a
copy of the proposed memo to the City Manager and City Attorney prior to finalization.
Completed Council colleagues’ memos should be provided to the City Manager, City
Attorney and City Clerk with as much advance notice as possible, to provide time for
staff to prepare the resource impact section and prepare the memo for placement on
the agenda.
The Council will not take action on the night that a colleagues’ memo is introduced if it
has any implications for staff resources or current work priorities which are not
addressed in the memo. The Council will discuss the colleagues’ memo and refer it to a
committee or direct the City Manager to agendize the matter for Council action. Action
may be taken immediately by the Council on colleagues’ memos where there are no
resource or staffing implications, or where these implications are fully outlined in the
colleagues’ memo. The Brown Act requires that the public be fully informed of the
potential action by the Council when the agenda is published. In order to satisfy the
Brown Act requirements, the Council should consult with the City Attorney to ensure
that the proposed title to the colleagues’ memo contains all actions that the Council
members want completed on the night of the Council review.
Council members nearing the end of their term desiring to submit a colleagues’ memo
should consider submittal timing and steps needed in order to ensure Council discussion
prior to the end of their term. Staff will make best efforts to agendize such memos prior
to the end of the Council term.
* * *
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Attachment A - Excerpts
from the City Council
Procedures and Protocols
Handbook
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Part I: City Council Procedures
Section 7(b) Annual Council Priorities
Priorities Background and Definition
The Council adopted its first Council priorities in 1986. Each year the Council reviews its
priorities at its Annual Council Retreat. On October 1, 2012 the Council formally adopted
the definition of a Council priority, and the Council’s process and guidelines for selection
of priorities.
There is a goal of no more than three to four priorities per year and priorities generally
have a two- to three-year time limit. Council can identify two to three specific objectives
within a priority.
A Council priority is defined as a topic that will receive particular, unusual and significant
attention during the year. This varies from a Council value which is defined as an
enduring goal and intention to guide the work of the Council. The values (shared above)
allow the Council to maintain these enduring intentions while also selecting annual
priorities that reflect shorter- term projects and goals.
Purpose
The establishment of Council priorities will assist the Council and staff to better allot and
utilize time for discussion and decision making.
Process
In advance of the annual Council Retreat, staff will solicit input from the Council on the
priorities to be reviewed and considered for the following year.
1) Council members may submit up to three priorities.
2) Priorities should be submitted no later than December 1.
3) As applicable, the City Manager will contact newly elected officials for their input by
December 1.
4) The City Manager and the City Clerk will solicit for the public to share proposed
priorities prior to the Council retreat. The Policy and Services Committee shall
recommend to the Council which suggestions if any shall be considered at the
Council retreat.
5) Staff will collect and organize the recommended priorities into a list for Council
consideration and provide to Council in the packet for the Council retreat.
6) If needed, the Policy and Services Committee, each year at its December meeting,
shall make recommendations about the process that will be used at the Annual
Retreat paying particular attention to the number of priorities suggested by Council
members. The recommended process is to be forwarded to Council for adoption in
advance of the Council retreat.
* * *
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Attachment A - Excerpts
from the City Council
Procedures and Protocols
Handbook
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Part II: City Council Protocols
1.8 (b) Respect the “One Hour” Rule for Staff Work
Requests for staff support should be made to the appropriate senior staff member,
according to the protocol for channeling communications. Any request, which would
require more than one hour of staff time to research a problem or prepare a response,
will need to be approved by the full council to ensure that staff resources are allocated
in accordance with overall council priorities. Once City Council Procedures and Protocols
Handbook notified that a request for information or staff support would require more
than one hour, the Councilmember may request that the City Manager place the
request on an upcoming Council agenda. The 1-hour rule applies to all Councilmembers
equally.
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Attachment A - Excerpts
from the City Council
Procedures and Protocols
Handbook
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: December 10, 2024
Report #:2411-3785
TITLE
Recommend City Council Approval of Various Task Orders with Baker Tilly for Internal Audit
Services to 1) Execute FY 2025 Task 1: Citywide Risk Assessment, Task 2: Preparation of Annual
Audit Plan, Task 3: Selection of External Financial Auditor and Annual Audit Coordination; 2)
Amend the FY 2025 budget for Task Orders; and 3) Amend the FY 2024 budget for FY 2024 Task
4: Execute the Annual Audit Plan
RECOMMENDATION
The City Auditor recommends that the Policy & Services Committee recommend City Council
approve of the following:
1. Execution of the following FY2025 Task Orders with activities to be carried out from
January 2025 through June 2025:
a. FY2025: Task 1: Citywide Risk Assessment with amendment
b. FY2025: Task 2: Preparation of Annual Audit Plan
c. FY2025: Task 3: Selection of External Financial Auditor and Annual Audit
Coordination
2. Amend FY 2025 Task Orders to realign the authorized budget with a net zero impact
overall:
a. FY 2025: Task 1: Citywide Risk Assessment reduced by $40,000
b. FY 2025: Task 5: Preparation of Quarterly Reports, Annual Status Reports,
Provision of City Hotline and Other Ongoing Office Administrative Functions
increased by $40,000
3. Amend the FY2024 Task 4: Execute the Annual Audit Plan to realign the authorized
budget with a net zero impact overall:
a. Task 4.22: ADA Compliance Audit reduced by $11,000
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b.Task 4.23: Recruitment & Succession Planning Audit increased by $3,500
c.Task 4.25: Emergency Preparedness/Wildfire Audit increased by $2,000
d.Task 4.26: Utility Billing increased by $3,000
e.Task 4.28: Dispatch Center Assessment increased by $2,500
BACKGROUND
In accordance with our agreement with the City, Baker Tilly1 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
Various audit specific task orders are approved annually in alignment with the Annual Council
Approved Audit Work plan. 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 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 December 18th consent calendar for Council approval.
1) Recommended Execution of FY2025 Tasks
Work for three FY2025 Task Orders has not been approved or started yet. This work will be
performed from January 2025 through June 2025. No change in budget is requested, this
execution will enable work to begin on these tasks:
•FY2025 Task 1: Citywide Risk Assessment - Beginning with year 1 and continuing at a
minimum of every other year thereafter, prepare a citywide risk assessment for review
by the City Manager and appropriate City Council Committee(s), and approval by the
City Council. The risk assessment will inform and contribute to the development of the
City’s Annual Audit Plan.
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•FY2025 Task 2: Preparation of Annual Audit Plan: 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 audit objectives, 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 outlined in Task 1.
•FY2025 Task 3: Selection of External Financial Auditor and Annual Audit Coordination.
2) Amend FY 2025 Task Orders to realign the authorized budget with a net zero impact overall
For FY 2025, the Baker Tilly Contract specifies a budget of $55,000 to conduct a risk assessment
which would culminate in the FY26 Annual Audit Plan. Due to the delayed start of the FY24 and
FY25 Annual Audit Plans, the City Auditor is presenting the FY25 Annual Audit Plan at the
December 10, 2024 Policy & Services Committee Meeting. The FY26 Annual Audit Plan would
need to be presented in April 2025 in order for the FY26 Annual Audit Plan to begin on July 1,
2026.
Rather than conduct another full risk assessment so close to the current effort, the City Auditor
is presenting proposed FY26 Annual Audit Plan topics in concert with presentation of the FY24
Risk Assessment and FY25 Annual Audit Plan Reports to more efficiently use City resources and
reduce reporting burdens on the Policy & Services Committee. Instead, the City Auditor
proposes to conduct a brief risk assessment survey to supplement the FY26 Audit Plan in early
CY 2025. This survey is estimated to cost $15,000.
The remaining risk assessment funds of $40,000 will be added to FY 2025 Task 5: Preparation of
Quarterly Reports, Annual Status Reports, Provision of City Hotline and Other Ongoing Office
Administrative Functions. The budget for Task 5 has been insufficient each year of the City’s
contract with Baker Tilly and the FY 2025 budget is close to being fully expended. There will be
no change in the overall FY 2025 budget, but this action will align the budget with the actual
costs of these respective tasks.
3) Amend the FY2024 Task 4: Execute the Annual Audit Plan2
Work on the FY2024 Annual Audit Plan began in June 2024 and largely be completed by the end
of December 2024 with some audits being reported in the Spring of 2025. These reports
include: ADA Compliance (4.22), Recruitment & Succession Planning (4.23), Grant Management
(4.24), Emergency Preparedness (4.25), Utility Billing (4.26), PCI DSS (4.27), and Dispatch Center
Assessment (4.28). While the City Auditor endeavors to estimate the necessary audit hours and
budget for each audit in the Annual Audit Plan, audits can sometimes take more or less time
2 Staff Report 2310-2174
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than estimated. The City Auditor seeks to apply savings from the ADA Compliance Audit which
was reported to and approved by the Policy & Services Committee on October 8, 2024 and
apply them to some of the other FY2024 Annual Audits that have gone or are anticipated to go
over budget. No change to the overall FY 2024 budget is requested.
•Task 4.22 ADA Compliance Audit: reduce budget by $11,000
•Task 4.23 Recruitment & Succession Planning: increase budget by $3,500
•Task 4.25 Emergency Preparedness/Wildfire Audit: increased budget by $2,000
•Task 4.26 Utility Billing: increase budget by $3,000
•Task 4.28: Dispatch Center Assessment increase budget by $2,500
FISCAL/RESOURCE IMPACT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-01 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: January 1, 2025 COMPLETION: June 30, 2025
4 TOTAL TASK ORDER PRICE: $55,000
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 ___________________________________
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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Attachment A - FY2025
Task Orders 1, 2, 3, 5
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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:
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Task Orders 1, 2, 3, 5
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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
• Operational
• Technology
• Compliance
• Reputational
• Political
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.
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Attachment A - FY2025
Task Orders 1, 2, 3, 5
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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: January 1, 2025
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 $55,000. 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.
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-02 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: January, 2025 COMPLETION: June 30, 2025
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:
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 ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 9 Packet Pg. 24 of 124
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
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 10 Packet Pg. 25 of 124
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $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.
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 11 Packet Pg. 26 of 124
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-03 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: January, 2025 COMPLETION: June 30, 2025
4 TOTAL TASK ORDER PRICE: $25,000
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 ___________________________________
this Task Order and warrant that I have
authority to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: ______________________
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 12 Packet Pg. 27 of 124
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 FY25:
• Step 1: Assistance in Managing the Financial Audit
Step 1 – Role in Managing the Financial Audit
In FY25, 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: January 1, 2025
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 $25,000. The not-to-exceed budget is based on an estimate of 80 total project hours, of
which 80 are estimated to be completed by the City Auditor.
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 13 Packet Pg. 28 of 124
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 $3,160.
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 – $260
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 14 Packet Pg. 29 of 124
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 O RDER NO.: FY25-05
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 ___________________________________
Docusign Envelope ID: B1E1DF90-6F0B-41B1-AA70-0ECDD0979627
Kate Murdock
Manager serving as City Auditor
8/15/2024
Council Member Lydia Kou
P&S Chair, Council Member
8/15/2024
Baker Tilly US, LLP
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 15 Packet Pg. 30 of 124
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.
Docusign Envelope ID: B1E1DF90-6F0B-41B1-AA70-0ECDD0979627
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 16 Packet Pg. 31 of 124
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
Docusign Envelope ID: B1E1DF90-6F0B-41B1-AA70-0ECDD0979627
Item 3
Attachment A - FY2025
Task Orders 1, 2, 3, 5
Item 3: Staff Report Pg. 17 Packet Pg. 32 of 124
7
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.21 Purchasing Card Program
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 referencedFY24 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.: FY23-4.22
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: January 1, 2024 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $69,940
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: D0674866-3201-457B-8D4D-7808B8CB33D6
Managing Director
Adriane D. McCoy
Baker Tilly US, LLP
1/26/2024
Council member
Council Member Lydia Kou
1/26/2024
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 18 Packet Pg. 33 of 124
8
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 an internal audit of Purchasing Card Program involves
three (3) primary steps:
Step 1: Audit Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 19 Packet Pg. 34 of 124
9
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to determine whether (1)
Determine whether procurement cards are used appropriately in compliance with the City's
policy and pertinent laws and regulations; (2) Evaluate the administration of the Purchasing
Card Program for adequate internal controls to safeguard the City from fraud, waste, and
abuse. Procedures include, but not limited to:
Interview the appropriate individuals to gain an understanding of the organizational
structure, processes, and controls related to the Purchasing Card Program.
Review policies and procedures as well as the legislative and regulatory requirements
to identify the criteria to be used for evaluation of control design and effectiveness.
Select a sample of the P-Card transactions
Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Audit Report
Schedule of Performance
Anticipated Start Date: January 1, 2024
Anticipated End Date: June 30, 2024
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 20 Packet Pg. 35 of 124
10
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $69,940. The not-to-exceed budget is based on an estimate of 375 total project hours, of
which 15 are estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review.
However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may
mutually determine it will be beneficial to perform a portion of the work on-site. Given this
possibility, Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors)
Ground Transportation (car rental or Uber/taxi) - $800
Hotel accommodation - $3,000 (2 rooms x 4 nights)
Food and incidentals – $2,100
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 21 Packet Pg. 36 of 124
11
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.22 ADA Compliance Review
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 FY24 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.: FY23-4.23
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: January 1, 2024 COMPLETION: June 30, 2024
4 TOTAL TASK ORDER PRICE: $73,110
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: D0674866-3201-457B-8D4D-7808B8CB33D6
Baker Tilly US, LLP
1/26/2024
Adriane D. McCoy
Managing DirectorCouncil member
Council Member Lydia Kou
1/26/2024
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 22 Packet Pg. 37 of 124
12
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 an internal audit of ADA (Americans Disabilities Act)
Compliance involves three (3) primary steps:
Step 1: Audit Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 23 Packet Pg. 38 of 124
13
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to determine whether
improvements have been made to make facilities, programs, and services accessible in
accordance with the Transition Plan and Self-Evaluation Final Study to ensure compliance
with the Americans with Disabilities Act (ADA) of 1990. Specifically, we will determine
whether (1) necessary remediation work, projects, or programs are included in the annual
capital budget to meet the ADA Transition Plan Schedules; (2) the progress of the
remediation efforts and any change in laws and regulations are assessed periodically to
ensure continued improvements in ADA compliance; (3) the City monitors the contractor’s
compliance with the contractual requirements to ensure that the City receives necessary
services. Procedures include, but not limited to:
Interview the appropriate individuals to gain an understanding of the organizational
structure, processes, and controls related to the ADA compliance efforts.
Review policies and procedures as well as the legislative and regulatory requirements
to identify the criteria to be used for evaluation of control design and effectiveness.
Review the relevant documents such as ADA Transition Plan, ADA Self-Evaluation
Report, the Transition Plan Schedule, progress assessment reports, and the contract
with the consultants.
Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Audit Report
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 24 Packet Pg. 39 of 124
14
Schedule of Performance
Anticipated Start Date: January 1, 2024
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 $73,110. The not-to-exceed budget is based on an estimate of 385 total project hours, of
which 15 are estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review.
However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may
mutually determine it will be beneficial to perform a portion of the work on-site. Given this
possibility, Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors)
Ground Transportation (car rental or Uber/taxi) - $800
Hotel accommodation - $3,000 (2 rooms x 4 nights)
Food and incidentals – $2,100
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 25 Packet Pg. 40 of 124
15
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-05 Various Reporting & City Hotline (Modified)
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: $120,592 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 ___________________________________
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
1/26/2024 Managing Director
Baker Tilly US, LLP
Adriane D. McCoy
1/26/2024
Council Member Lydia Kou
Council member
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 26 Packet Pg. 41 of 124
16
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, including quarterly follow-up activities and testing of
corrective actions for the completed audits
Deliverables:
Legislative documents will be prepared to present the financial statements and reports
prepared by an external auditor to the Finance Committee
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 $120,592 90,000. The not-to-exceed budget is based on an estimate of 440 300 total
project hours, of which 170 are estimated to be completed by the City Auditor.
Reimbursable Expenses
Baker Tilly anticipates several site visits by the City Auditor throughout FY2024 planning one
on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses
for this Task.
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 27 Packet Pg. 42 of 124
17
The not-to-exceed maximum for reimbursable expenses for this Task is $19,500 19,000.
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 1,600
DocuSign Envelope ID: D0674866-3201-457B-8D4D-7808B8CB33D6
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 28 Packet Pg. 43 of 124
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.23 Recruitment and Succession Planning
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 referencedFY24 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.: FY23-4.23
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024
4 TOTAL TASK ORDER PRICE: $58,890
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 ___________________________________
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Council Member
3/7/2024
Council Member Lydia Kou Kate Crowley
3/11/2024
Baker Tilly US, LLP
Director
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 29 Packet Pg. 44 of 124
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 an internal audit of Recruitment and Succession Planning
involves three (3) primary steps:
Step 1: Audit Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 30 Packet Pg. 45 of 124
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to (1) determine the efficiency
and effectiveness of the recruitment and hiring process; (2) determine whether a formal
succession plan and related policies and procedures are in place. Procedures include, but not
limited to:
Interview the appropriate individuals to gain an understanding of the organizational
structure, processes, and controls related to recruitment and succession planning.
Review policies and procedures as well as the legislative and regulatory requirements
to identify the criteria to be used for evaluation of control design and effectiveness.
Select a sample of the recruitment activities for documentation review
Review the existing succession plan
Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Audit Report
Schedule of Performance
Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 31 Packet Pg. 46 of 124
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $58,890. The not-to-exceed budget is based on an estimate of 290 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: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 32 Packet Pg. 47 of 124
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.25 Emergency Preparedness
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 referencedFY24 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.: FY23-4.25
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024
4 TOTAL TASK ORDER PRICE: $73,110
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 ___________________________________
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Council Member
Council Member Lydia Kou
3/7/2024
Baker Tilly US, LLP
Kate Crowley
3/11/2024
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 33 Packet Pg. 48 of 124
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 an internal audit of Emergency Preparedness involves three
(3) primary steps:
Step 1: Audit Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 34 Packet Pg. 49 of 124
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to determine whether the City
is working to prevent wildfire and adequately prepared to respond to wildfire as part of the
City’s emergency management plan. Procedures include, but not limited to:
Interview the appropriate individuals in all relevant departments to gain an
understanding of the organizational structure, processes, and controls related to
wildfire prevention and response as well as the City’s overall emergency
preparedness.
Review policies and procedures as well as the legislative and regulatory requirements
to identify the criteria to be used for evaluation of control design and effectiveness.
Review the existing emergency management plan and other related documents such
as prevention activities, training and exercises, equipment, and service contracts.
Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Audit Report
Schedule of Performance
Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 35 Packet Pg. 50 of 124
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $73,110. The not-to-exceed budget is based on an estimate of 385 total project hours, of
which 25 are estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review.
However, during the planning and fieldwork phases of this audit, the City and Baker Tilly may
mutually determine it will be beneficial to perform a portion of the work on-site. Given this
possibility, Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
Round-trip Airfare – $2,000 (1 round trip flights x 2 auditors)
Ground Transportation (car rental or Uber/taxi) - $800
Hotel accommodation - $3,000 (2 rooms x 4 nights)
Food and incidentals – $700
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 36 Packet Pg. 51 of 124
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.26 Utility Billing
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 referencedFY24 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.: FY23-4.26
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024
4 TOTAL TASK ORDER PRICE: $72,010
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 ___________________________________
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Council Member
Council Member Lydia Kou
3/7/2024
Director
Kate Crowley
Baker Tilly US, LLP
3/11/2024
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 37 Packet Pg. 52 of 124
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 an internal audit of Utility Billing involves three (3)
primary steps:
Step 1: Audit Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
Assess the audit risk
Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 38 Packet Pg. 53 of 124
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to
address the audit objectives. The preliminary audit objective is to (1) determine whether the
internal controls over the utility billing process are adequate and working effectively to
ensure billing is accurate and in compliance with the City's policy and regulations; (2)
determine whether billing adjustments are properly supported and approved. Procedures
include, but not limited to:
Interview the appropriate individuals to gain an understanding of the organizational
structure, processes, and controls related to utility billing.
Review policies and procedures as well as the legislative and regulatory requirements
to identify the criteria to be used for evaluation of control design and effectiveness.
Select a sample of utility invoices and a sample of billing adjustments for testing.
Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
Complete supervisory review of working papers and a draft audit report
Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Audit Report
Schedule of Performance
Anticipated Start Date: March 1, 2024
Anticipated End Date: December 31, 2024
DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 39 Packet Pg. 54 of 124
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $72,010. The not-to-exceed budget is based on an estimate of 385 total project hours, of
which 24 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: 62185555-39CD-4C18-8BA9-8E5B08CEB256
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 40 Packet Pg. 55 of 124
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY24-4.28 Dispatch Center Program
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. C21179340A
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.: FY24-4.28
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: August 15, 2024 COMPLETION: February 28, 2025
4. TOTAL TASK ORDER PRICE: $76,540
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: Baker Tilly Advisory Group, LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Docusign Envelope ID: 4706E0C8-94EF-49E8-BA34-3D09C9016BF5
10/8/2024
Manager, Palo Alto City Auditor
Kate Murdock
Council Member
Council Member Lydia Kou
10/8/2024
Item 3
Attachment B - FY2024
Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
Item 3: Staff Report Pg. 41 Packet Pg. 56 of 124
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 an assessment of the Dispatch Center Program involves three (3) primary steps:
Step 1: Assessment Planning
Step 2: Control Review and Testing
Step 3: Reporting
Step 1 – Assessment Planning
This step consists of the tasks performed to adequately plan the work necessary to address the overall assessment
objective and to solidify mutual understanding of the project scope, objectives, process, and timing between
stakeholders and auditors. Tasks include:
Gather information to understand the environment under assessment
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit and/or assessment results, as applicable
o Review additional documentation and conduct interviews as necessary
Write an assessment program
o Refine objectives and scope
o Identify the assessment procedures to be performed and the evidence to be obtained and examined
Announce initiation of the assessment and conduct kick-off meeting with key stakeholders
o Discuss objectives, scope, assessment process, timing, resources, and expectations
o Discuss documentation and interview requests for the assessment
Step 2 – Control Review and Testing
This step involves executing the procedures in the assessment program to gather information, interview
individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The
preliminary assessment objective is to: (1) Determine whether the City’s Dispatch Center Program is operating
efficiently and effectively to meet community needs. Procedures include, but are not limited to:
Interview the appropriate individuals to gain an understanding of the organizational structure, processes,
and controls related to the Dispatch Center Program.
Review policies and procedures as well as the legislative and regulatory requirements to identify the
criteria to be used for evaluation of control program effectiveness.
Review overall Dispatch Center Program performance, including selecting a sample of Dispatch Center
Calls to test for efficiency and effectiveness of response and triage for services.
Compare the performance, process, and controls against the best practices.
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Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
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Ste p 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and review
a draft report with the stakeholders, and submit a final report. Tasks include:
Develop findings, conclusions, and recommendations based on the supporting evidence gathered
Validate findings with the appropriate individuals and discuss the root cause of the identified findings
Complete supervisory review of working papers and a draft report
Distribute a draft report and conduct a closing meeting with key stakeholders o
o Discuss the results, finings, conclusions, and recommendations
o Discuss management responses
Obtain written management responses and finalize a report
Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
Report
Schedule of Performance
Anticipated Start Date: August 15, 2024
Anticipated End Date: February 28, 2025
Maximum Compensation Amount
The not-to exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $76,540. The
not-to exceed budget is based on an estimate of 415 total project hours, of which 100 are estimated to be completed by the
City Auditor.
Reimbursable Expenses
If circumstances allow, 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 $8,500
The following summarizes anticipated reimbursable expenses (for three team members):
Round-trip Airfare - $2,000 (3 round trip flights)
Ground Transportation (car rental or Uber/taxi) - $1,500
Hotel Accommodation - $3,500 (12 nights)
Food and incidentals - $1,500
Confidential Information
1. In the performance of this Task Order, Baker Tilly (“AUDITOR”) may have access to CITY’s
Confidential Information (defined below). AUDITOR will hold Confidential Information in strict confidence, not disclose
it to any third party, and will use it only for the performance of its obligations to CITY under this Task Order and for no
other purpose. AUDITOR will maintain reasonable and appropriate administrative, technical and physical safeguards to
ensure the security, confidentiality and integrity of the Confidential Information. This includes the use of encrypted, access-
controlled storage for any Confidential Information stored in electronic form. Notwithstanding the foregoing, AUDITOR
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may disclose Confidential Information to its employees, agents and subcontractors, if any, only to the extent they have a
need to know in order to perform AUDITOR’s obligations to CITY under this Task Order and for no other purpose, and
provided that the AUDITOR informs them of, and requires them to follow, the confidentiality and security obligation s of
this Task Order.
2. “Confidential Information” means all data, information, and materials of a non-public, proprietary
or confidential nature, in any form or medium, tangible or intangible, provided or otherwise made available to AUDITOR
by CITY, directly or indirectly, pursuant to this Task Order. For this Task Order, such Confidential Information may include
dispatch calls, dispatch radio/phone traffic (including recordings, summaries, and transcripts of such traffic), dispatch logs
and computer-aided dispatch (CAD) data, observations of the dispatch service (including recordings, summaries, notes, and
transcripts of such observation), any information protected by law obtained by AUDITOR in conducting this Task Order
(including but not limited to criminal background data, customer utility data, medical information, mental health
conservatorship data, witness and victim identities protected by law, law enforcement intelligence, law enforcement
investigations, law enforcement personnel file information protected by law, and “Personal Information” about a California
resident as defined in Civil Code Section 1798 et seq., as amended from time to time)). In addition to the Confidential
Information itself, AUDITOR agrees that deliberations, conversations and discussions pertaining to the Confidential
Information shall be kept confidential and shall not be disclosed without approval of CITY, and any required reporting
incorporating Confidential Information will present findings in de-identified or summary formats as agreed by the Parties.
2.1. Exceptions: Confidential Information excludes information that AUDITOR can show by appropriate
documentation: (i) was publicly known at the time it was provided or has subsequently become pub licly known other than
by a breach of this Agreement and is not otherwise protected from further sharing by law; (ii) was rightfully in AUDITOR’s
possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfu lly obtained by
AUDITOR from a third party without breach of any confidentiality obligation; (iv) is independently developed by
employees of AUDITOR without any use of or access to the Confidential Information; or (v) AUDITOR has written consent
to disclose signed by an authorized representative of CITY.
2.2 Confidential Markings: As practicable, the Confidential Information shall be marked with the words
“Confidential” or “Confidential Material” or with words of similar import. To the extent possible, t he disclosing party
(whether CITY or AUDITOR) shall endeavor to mark any electronic document intended to be covered by the terms of these
confidentiality provisions with the words “Confidential” or similar words, shall notify the receiving parties (for example,
by cover e-mail transmitting the electronic document) that the electronic document is Confidential Information, and, for
documents shared via encrypted cloud storage, shall file such Confidential Information in folders so labeled. The City’s
failure, for whatever reason, to mark any material at the time it is produced to the AUDITOR, or to notify AUDITOR that
oral or electronic material is Confidential Information at the time it is provided, shall not remove the material from the
coverage of these confidentiality obligations, and the AUDITOR shall treat the material as Confidential Information once
the CITY has notified it that the material is to be covered by these provisions.
3. Notwithstanding the foregoing, AUDITOR may disclose Confidential Information to the extent
required by order of a court of competent jurisdiction or governmental body, provided that AUDITOR will notify CITY in
writing of such order immediately upon receipt and prior to any such disclosure (unless AUDITOR is prohibited by law
from doing so), to give CITY an opportunity to oppose or otherwise respond to such order.
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Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
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4. AUDITOR will notify City promptly upon learning of any breach in the security of its systems or
unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential
Information consists of Personal Information, AUDITOR will provide information to CITY sufficient to meet the notice
requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time.
5. Prior to or upon termination or expiration of this Task Order, AUDITOR will honor any request
from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will
remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential
Information on AUDITOR. Notwithstanding the return or destruction of tangible Confidential Information as contemplated
by this subsection, AUDITOR and its representatives will continue to be bound by all obligations of confidentiality with
respect to the CITY’s Confidential Information.
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Task Orders 4.22, 4.23,
4.25, 4.26, 4.28
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: December 10, 2024
Report #:2410-3633
TITLE
Office of the City Auditor Presentation of Recruitment & Succession Planning Audit Report
RECOMMENDATION
The Office of the City Auditor recommends that Policy & Services Committee review and
approve the results of the Recruitment and Succession Planning Audit report.
BACKGROUND
Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide
risk assessment that assessed a wide range of risk areas, including strategic, financial,
operational, compliance, technological, and reputation risks. The purpose of the assessment
was to identify and prioritize risks to develop the annual audit plan.
During the FY22 risk assessment, the OCA identified potential risks related to the City’s
recruitment and succession planning efforts.
ANALYSIS
The objectives of the Recruitment and Succession Planning audit were to determine 1) the
efficiency and effectiveness of the recruitment and hiring process; and 2) whether a formal
succession plan and related policies and procedures are in place.
In August 2023, the City commissioned a comprehensive assessment of its recruitment process
which resulted in a Recruitment Strategic Plan with 31 initiatives related to recruitment and
hiring process improvements across four categories. In May 2024, under the leadership of the
City Manager and the Human Resources Department, progress was reported on several
initiatives to implement the Plan’s recommendations.
Also in May 2024, the City implemented a pilot Workforce Career Advancement & Continuity
Planning program based on state guidance issued by Cal-ICMA. The statewide issued guidance
is designed to facilitate talent discussions among local governments’ executive teams and help
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executives assess current talent pools, identify gaps, recognize emerging leaders and pinpoint
development opportunities.
•While the City has made progress implementing recommendations from the Municipal
Resource Group Recruitment Strategic Plan and seen improvements in hiring and
recruitment metrics, oversight and monitoring of implementation progress can be
strengthened. The OCA recommends the City identify which initiatives to implement
and establish a clear timeframe for completion.
•Due to developments facilitated by the Recruitment Strategic Plan, the City’s policies
and procedures no longer reflect current recruitment and hiring practices. The OCA
recommends developing comprehensive recruitment and hiring policies and procedures
to ensure consistent, effective and efficient practices are followed in the future.
•The City has undertaken several steps to enhance succession planning efforts but lacks a
formalized succession planning program, policies and procedures. The OCA
recommends formalizing succession planning efforts as well as policies and procedures
to facilitate the transfer of knowledge when key positions are vacated due to retirement
or attrition.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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October 30, 2024
City of Palo Alto
Office of City Auditor
Recruitment and Succession Planning Audit
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Contents
network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are
not licensed CPA firms.
EXECUTIVE SUMMARY .................................................................................................. 2
PURPOSE OF THE AUDIT ........................................................................................................................ 2
REPORT HIGHLIGHTS ............................................................................................................................... 2
INTRODUCTION ............................................................................................................... 4
AUDIT RESULTS.............................................................................................................. 6
FINDING 1 ...................................................................................................................................................... 6
FINDING 2 .................................................................................................................................................... 11
FINDING 3 .................................................................................................................................................... 12
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Executive Summary
Purpose of the Audit
Baker Tilly Advisory Group, LP (Baker Tilly), in its capacity serving as the Office of the City Auditor
(OCA) for the City of Palo Alto (the City), conducted a performance audit of the recruitment and
succession planning processes and controls based on the approved Task Order 4.23. The objectives
were to:
1) Determine the efficiency and effectiveness of the recruitment and hiring process.
2) Determine whether a formal succession plan and related policies and procedures (“P&P”) are in
place.
Report Highlights
Finding 1:
While the City has made progress implementing recommendations from the
Municipal Resource Group (“MRG”) Recruitment Strategic Plan issued May
2024 and has seen improvement in recruitment and hiring metrics, oversight
MRG, a third-party consulting group specializing in organizational assessments and
staffing solutions, issued a Recruitment Strategic Plan, hereafter referred to as
Recruitment Plan, with 31 initiatives related to recruitment and hiring process
improvements across four categories. Under the leadership of the City Manager and
Human Resources (“HR”), progress towards the initiatives within these categories is
already underway, demonstrating a commitment to enhancing City recruitment
processes. The City has made progress in improving its recruitment and hiring
metrics, specifically in vacancy rates, time to hire, and turnover rate.
Although the City has begun addressing recommendations from the Recruitment
Plan, it lacks a formal implementation approach, making it unclear which
recommendations are prioritized or agreed upon by stakeholders, and specific
implementation timelines have not been established.
Key Recommendation
We recommend the City establish a formalized implementation approach with clear
steps, timelines, and resources, ensuring stakeholder consensus, defined priorities,
specific timelines for each recommendation, and a system for regular monitoring and
reporting to maintain oversight and accountability. Monitoring should include defining
Finding 2:
Due to developments facilitated by the Recruitment Plan, the City’s P&P no
longer reflect current recruitment and hiring practices.
Since the HR Department implementing various initiatives to address the recent
Recruitment Plan findings, and continues to enhance its current recruitment
processes, P&Ps will need to be updated to reflect these changes and ensure they
continue to be followed in the future.
The City does not have formal recruitment P&P and has not regularly reviewed and
updated its hiring P&Ps.
Key Recommendation
We recommend the City develop and document comprehensive recruitment and
hiring P&P, including detailed P&P for the recruitment process such as job postings,
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Finding 3:
The City has undertaken several steps to enhance succession planning efforts,
but needs to formalize a succession planning program and P&P.
The City has implemented a succession planning pilot program called “Workforce
Career Advancement & Continuity Planning,” with the assistance of department
heads. This program is expected to enhance the City’s ability to effectively develop
and retain talent. Although the City does not have a formal centralized citywide
succession planning program, the pilot program incorporates most of the key
succession planning program best practices.
To ensure a seamless transition of leadership and critical roles within its various
departments, the City should consider establishing formal succession planning
program and P&P, which includes a knowledge transfer program.
Key Recommendation
Given the strong foundation of the City’s pilot program, we recommend enhancing
the framework that is in place. This recommendation includes establishing formal
succession planning P&P, as well as a structured knowledge transfer program to
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Introduction
The objectives of the audit were to:
1) Determine the efficiency and effectiveness of the recruitment and hiring process.
2) Determine whether a formal succession plan and related P&P are in place.
Background During the FY2022 risk assessment, Baker Tilly identified risks with the City’s
recruitment and succession planning processes. Key public sector risks include:
1. Competitive candidate market and salary structure – private sector may offer
more attractive salaries and benefits
2. Increased turnover rates – public sector has higher retirement rates and not
as many opportunities for advancement
3. Limited resources – constrained budgets and difficulty hiring qualified
candidates can impact resources around generating a succession planning
framework
4. Inadequate training and development – limited resources can lead to
inadequate training for leadership roles
As highlighted in the audit results, the HR Department has made increasingly positive
strides to help improve recruiting, hiring, and succession planning processes.
The scope of this audit was to assess the recruitment and hiring process, as well as
determine whether a formal succession plan framework is established, and if P&P are
in place. The OCA conducted an analysis of the City’s recruitment and hiring and
succession planning P&P to ensure they are current and functioning as intended.
This audit was designed to identify any gaps or areas for improvement to align the
City’s processes with best practices and effectively support its staffing needs.
Methodology 1. In order to address our audit objective (1), we performed the following
procedures:
• Interviewed the appropriate individuals to understand the process, the
information system used, and internal controls related to the current
recruitment and hiring process.
• Requested and analyzed P&P as well as the regulations and standards to
identify the criteria to be used to assess efficiency and effectiveness.
• Examined the City’s Recruitment Strategic Plan, recruitment and hiring
metrics in place, and annual vacancy data.
• Compared recruitment and hiring activities against industry best practices.
2. In order to address our audit objective (2), we performed the following
procedures:
• Interviewed the appropriate individuals to understand the process around
succession planning for leadership positions.
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1 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 with Baker Tilly U.S, LLP for internal audit
services for October 2020 through June 2022 with an extension through June 2025. City Council appointed Kate Murdock, Audit Manager
in Baker Tilly’s Risk Advisory practice, as City Auditor in May 2024. Baker Tilly’s most recent firmwide peer review was completed in
October 2021 with a rating of “Pass”. The scope of that peer review includes projects completed under government auditing standards. A
report on the next firmwide peer review should be available later in 2024.
•
are in place.
• Compared succession planning initiatives against industry best practices.
Compliance
Statement generally accepted government auditing standards, except for the requirement of an
external peer review 1. 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 include:
• The HR Department was supportive of the audit process.
• In 2024, the City utilized a third-party, MRG, to complete a case study on their
Recruitment Strategic Plan, highlighting the critical importance of
understanding and prioritizing the recruitment and hiring process.
• In 2024, the City initiated a pilot program through California Local Government
Management Collaborative (“Cal-ICMA”)
program.
The OCA greatly appreciates the support of the HR Department in conducting this audit
activity.
Thank you!
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Audit Results
2 Municipal Resource Group. 2024. Recruitment Strategic Plan Navigating Talent Streams to Reel in Excellence. City of Palo Alto
Finding 1: While
the City has
made progress
implementing
recommenda-
tions from the
Municipal
Resource Group
Recruitment
Strategic Plan
and seen
improvements in
hiring and
recruitment
metrics,
oversight and
monitoring of
implementation
progress can be
strengthened.
Efforts underway to improve recruitment and hiring
In August 2023, the City commissioned the MRG to conduct a comprehensive
assessment of its recruitment process, including interviews with department
stakeholders, hiring managers, recent candidates, current and former
recruitment staff, and all current HR Department staff involved in any aspect of
recruitment, marketing, or onboarding.
Based on interviews and data analysis, MRG issued a Recruitment Strategic
Plan 2, hereafter referred to as the Recruitment Plan, with 31 initiatives related
to recruitment and hiring process improvements across four categories. In May
of 2024, under the leadership of the City Manager and HR, progress towards
the initiatives within these categories is already underway, demonstrating a
commitment to enhancing City recruitment processes:
Initiative Category City Action
Boost Recruitment Capacity and
Capabilities
Regular meetings involving the City
Manager, Assistant City Manager, HR
Director, and Assistant HR Director to
discuss recruitment and hiring activities.
Active Marketing, Advertising, and
Sourcing
Positions within Public Works and
Utilities were selected to pilot enhanced
digital advertising campaigns meant to
drive candidate engagement and lead
Streamline Processes and Enhance
Data/Metrics
City Manager with key data metrics,
such as total vacancies, vacancies by
department, positions budgeted,
positions filled, terminations, hires, and
promotions;
Piloting a dashboard to communicate in
real-time with department directors,
improving their ability to drill down into
specific metrics such as turnover rates
and vacancy rates for individual
positions. This granular visibility will
allow for more informed decision-making
and strategic planning;
Piloting a new onboarding program to
streamline the new hire experience.
Invest in Talent Pipeline
In addition to the actions listed above, HR staff started tracking progress on
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management had determined which recommendations to implement, the
priority in which they should be implemented and an appropriate timeframe for
doing so were unclear, however, these efforts are underway.
Improvement in Recruitment and Hiring Metrics
The City of Palo Alto has made significant progress in improving its recruitment
and hiring metrics, particularly in terms of its vacancy rates. Since July of
2021, the City has seen decreases in its vacancy rates despite increasing the
number of budgeted positions.
Annual Vacancy Rates
Date Budgeted Filled Vacant Vacancy %
7/1/2021 1,035.85 861.85 174
7/1/2022 1,014.35 852.60 161.75
7/1/2023 1,063.10 901.10 162
7/1/2024 1,092.10 948.10 144
This improvement is significant considering, historically, the City of Palo Alto’s
lowest vacancy rate of 10%.² Turnover in Palo Alto can be attributed to the
high cost of living, a competitive job market encouraging frequent job changes,
and a limited availability of affordable housing. Competitive private sector
salaries also contribute to higher turnover in government jobs as employees
seek better financial rewards and career opportunities, especially among highly
skilled workers who can command higher salaries. To combat this, the City
has adjusted their hiring approach, by revising salary ranges up to the 75th
percentile for certain positions. This, along with incorporating MRG broader
strategy recommendations such as improving career development
opportunities has contributed to reduced turnover.
The City of Palo Alto’s “time to hire” metric, indicating the average number of
days it took to fill a position from the time it was posted, has also shown
improvement.
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Table 1: Time to Hire - All Departments
From September 2023 to October 2024, figures fluctuate significantly, with a
peak in October 2023 at 106.8 days and a low in November 2023 at 57.6 days.
While variability exists from month to month, the “time to hire” metric continues
to trend positively.
This improvement is significant as prolonged hiring times can increase
departmental costs due to extended vacancy periods and the resources
required for lengthy recruitment processes. It can also impact team productivity
and morale, as existing employees may need to take on extra responsibilities
while positions remain unfilled. Additionally, delays in making offers can result
in losing candidates to other opportunities.
Improvement is also evident in the City of Palo Alto’s “turnover rate,” which
indicates the percentage of employees who leave an organization within a
specific period. Quarterly improvement can be seen over the duration of FY
24.
Table 2: Turnover Rate FY24 (July23-June24)
Month
Number of
Separated
Employees
Average
Number of
Employees
Turnover
Rates
Quarterly
Turnover
Rates
July 9 901 1.00%
August 3 888 0.30%
September 9 890 1.00% 2.30%
October 5 900 0.60%
November 6 903 0.70%
December 11 905 1.20% 2.40%
0
20
40
60
80
100
120
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3 White Paper: 10 Recruiting Metrics to Measure | NEOGOV
January 5 917 0.50%
February 6 921 0.70%
March 4 919 0.40% 1.60%
April 9 924 1.00%
May 2 930 0.20%
June 6 945 0.60% 1.80%
Overall, the improvements made by HR are contributing to fewer vacancies,
shorter hiring times, decreased turnover, enhanced operational efficiency and
reduced costs. Continuing to understand and analyze these trends can help
the City optimize their recruitment strategies, ensuring they are prepared for
periods of high demand and can maintain a steady pipeline of qualified
candidates.
Efforts to improve recruitment and hiring data
Due to the challenges the City faces with data management in its recruitment
processes, specifically the lack of integration between NEOGOV and SAP, HR
staff is forced to manually generate data metric reports. This in turn requires
HR staff to perform extensive manual integration and quality control reviews
which can be time-consuming. The lack of a centralized information system
further complicates data management, making it difficult to centralize and
streamline these tasks. HR staff is planning to integrate its information
systems, and it is essential for City leadership to prioritize support for this
initiative. This integration is vital for streamlining operations, improving data
accuracy, and enhancing overall efficiency. Supporting this initiative will also
demonstrate a commitment to modernizing infrastructure and optimizing
resource management, ultimately benefiting the entire organization.
Recruiting Best Practices to Consider
Creating a data-driven recruitment strategy is essential for public sector
agencies facing challenges with staffing shortages and high employee
turnover. To enhance the public sector recruitment process, it’s crucial to
measure the appropriate metrics. This requires careful planning and foresight.
NeoGov’s “10 of the Most Important Recruiting Metrics to Measure for Public
Sector Agencies”, provided guidance around the most important metrics to
capture when recruiting in the public sector. The 10 metrics, referenced in
more detail in the NeoGov report, are:3
1. Application conversion rate
2. Application per job posting
3. Time-to-hire
4. Time-to-fill
5. Cost-to-hire
6. Source-to-hire
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Recommendation
Management
Response
8. Offer acceptance rate
9. Quality of hire
10. First-year attrition rate
Palo Alto is currently tracking all but three from this list: Candidate experience,
quality of hire, and first-year attrition rates. HR leadership should consider if
adding these additional metrics to its KPI monitoring would help to strengthen
its recruiting strategies.
Given the depth of the recommended Recruitment Strategic Plan, with 31
initiatives across four categories, as well as the acknowledged multiple-year
effort needed to complete implementation, it is imperative that oversight of the
implementation be thoroughly monitored, documented, and reported with
regular frequency to ensure successful adoption and execution of the
recommendations.
Although the City has started to address the recommendations, the
implementation approach can be enhanced and formalized to ensure a clear
roadmap is established. This roadmap should detail the necessary steps,
timelines, and resources. Additionally, it remains unclear which initiatives the
City has chosen to prioritize or abandon.
Furthermore, the City should establish specific timelines for implementing each
recommendation wherever feasible and provide justifications for those deemed
lower priority with ongoing or open-ended timelines. This approach enhances
transparency and demonstrates a good faith effort to implement
recommendations appropriately.
Finally, the City should implement a system for regular monitoring,
documentation, and reporting of progress to maintain oversight and
accountability.
By formalizing the implementation plan, the City can transform strategic
recommendations into actionable steps, ensuring a structured and efficient
approach to achieving the project’s objectives and maximizing the value of City
funds spent on these improvements.
Responsible Department(s): Human Resources with support from
stakeholder departments and the City Manager’s Office
Concurrence: Agree
Target Date: CY Q1 2025
Action Plan: A tool to track and oversee the progress of the various actions
recommended in the Recruitment Plan has been established, as noted in the
report) including oversight with the Human Resources team identifying clear
actions and routine oversight by the City Manager’s Office on progress. In
addition, to ensure increased dedicated focus, a new position of Division
Manager Recruitment was added in July 2024 to oversee the ongoing iteration
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4 https://www.dgs.ca.gov/OHR/Resources/Hiring-Handbook?search=hiring%20handbook
__________________
Finding 2: Due to
developments
facilitated by the
Recruitment
Plan, the City’s
P&P no longer
reflect current
recruitment and
hiring practices.
Recommendation
including implementing a report out on the Recruitment Plan as well.
_____________________________________________________________________
The City does not have formalized P&P outlining its recruitment processes.
While the HR Department implements various initiatives intended to address
the recent MRG study recruitment findings, previously mentioned, and
continues to enhance its current recruitment processes, having a documented
framework is critical to the future success of the department in this area.
Without documenting the procedures, guidelines, and targets established
during this period of growth, inconsistencies in the City’s recruiting processes
may continue or new issues may develop.
The HR Department has plans to hire a new Recruitment Division Manager in
FY 2025, expand its City HR Liaison Program, integrate its information
systems, and overhaul its data metric communication process with a new
manager dashboard, among others. The Human Resources Liaison Program
has a Guidebook and to maximize the success of these efforts and minimize
confusion among staff, standardized P&P are needed.
Additionally, a review and update are needed for the City’s hiring procedures.
While the City currently has a thoroughly documented procedure, it has not
been revised since March of 1999. Over time, procedures can change or
become unclear. Regular reviews help ensure they are still relevant, clear,
and effective in guiding employee behavior and management decisions.
We recommend the City expand and formalize a comprehensive recruitment
and hiring P&P, with appropriate direction for hiring managers on recruitment
processes and resources.
The City should ensure these P&P are aligned with current employment laws,
rules, and regulations to maintain compliance and reduce legal risks.
Additionally, City leadership should implement a schedule for regular reviews
and updates of its P&P, at least annually, or as needed, based on changes in
laws or organizational needs. Detailed P&P can lead to a more consistent,
efficient, and legally compliant recruitment process, ultimately leading to better
hiring decisions and a more effective workforce.
The California Government, Office of HR, offers a strong resource for
recruitment with their “Hiring Handbook”. High-level areas covered in the Hiring
Handbook include:4
1. Identifying vacancy and evaluating need
2. Hiring Toolkit
3. Application/Interview planning
4. Language on hiring process
5. Application screening
6. Interview process – start to finish, including critical questions
7. Job offer
8. Hiring package
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5 Key Issues in Succession Planning (gfoa.org)
Management
Response
__________________
Finding 3: The
City has
undertaken
several steps to
enhance
succession
planning efforts,
but lacks a
formalized
succession
planning
program and
P&P.
updating recruiting and hiring P&P.
Responsible Department(s): Human Resources
Concurrence: Partially Agree
Target Date: CY Q3 2025
Action Plan: While the City's current Policy on selection (2-10) complies with
current employment laws, it does not align with best/next practices the City is
already seeking to implement. The Policy in current form does not inhibit the
city's streamlining of processes due to its ambiguity, staff agree that an update
to come into alignment with more commonplace terminology and the current
methods will ensure clarity on business operations today. Overall, the policy
update will seek to strike a balance between conformance to best practices
while still allowing for the flexibility needed to run an agile recruitment process
responsive to every changing recruitment markets. Therefore, the level of
granularity may remain in the Human Resources Liaison Guidebook versus
formalized in a policy and procedure.
__________________________________________________________
In January 2024, Cal-ICMA issued a statewide template designed to facilitate
talent discussions among local governments’ executive teams. This initiative
aims to bolster talent development efforts across local governments in
California. The template’s primary objectives are to help executive teams
assess their current talent pool, identify gaps, recognize emerging leaders, and
pinpoint development opportunities.
Per the Government Finance Officers Association’s (“GFOA”) “Key Issues in
Succession Planning,” a successful succession planning program should
include key criteria to avoid issues:5
1. Provide a formal, written succession plan as a framework for
succession initiatives.
2. Develop written P&P to facilitate knowledge transfer.
3. Promote development of leadership skills.
4. Encourage personal professional development activities
5. Design better recruitment and retention practices to aid in the
succession process.
Succession planning program is not yet formalized.
As of May 31, 2024, the City has implemented the Cal-ICMA template through
a pilot program called “Workforce Career Advancement & Continuity Planning,”
with the assistance of department heads. This program follows a four-step
process that is expected to enhance the City’s ability to effectively develop and
retain talent:
1. Department Directors, Assistant Directors, and Division Managers
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employees.
3. The completed templates are submitted to the HR Director for review
with the City Manager’s Office.
4. Following the review, Department Directors, Assistant Directors, and
Division Managers conduct Talent Discussions with employees.
Although the City does not have a formal centralized citywide succession
planning program, the pilot program incorporates most of the key succession
planning program best practices, as highlighted by the GFOA. If the City were
to improve their current program, they should consider developing succession
planning P&P.
The City currently lacks formal succession planning P&P to facilitate
knowledge transfer.
Currently, the City does not have P&P for facilitating knowledge transfer to new
employees. Succession planning P&P help to ensure the seamless transition
of leadership and critical roles within an organization’s various departments.
Documented P&P at the department level can serve as an effective training
tool, streamlining processes for employees. By clearly documenting standard
operating procedures, employees can familiarize themselves with their roles
and responsibilities, reducing the need for extensive hands-on training from
managers and supervisors. This approach not only ensures consistency and
clarity in task execution but also allows leadership to allocate more time to
strategic initiatives and other critical functions, thereby enhancing overall
departmental efficiency and productivity.
While the HR Department plays a crucial role in overseeing the development of
organizational P&P, the responsibility for creating specific procedures at the
department level falls to the individual departments themselves.
Focusing on the development, implementation, and accuracy of department
level procedures can help the City meet its objectives. As the process owner
for succession planning, HR should consider leading the transfer of knowledge
initiative and formalize the approach so that all departments have supporting
documentation that new and existing employees can reference.
The City is actively promoting development of leadership capabilities.
Additionally, the City established and implemented a Leadership
Competencies framework in November 2023. This framework highlights key
areas that are necessary for leadership positions. These focus areas include:
1. Overarching Competencies
2. Leading Change while Maintaining Stability
3. Leading People & Building Coalitions
4. Service in the Public Realm
A few of the critical competencies within the framework include integrity,
communication, external/community awareness, strategic thinking, leveraging
the positive impact of diversity, problem solving, accountability, and financial
and operational management. By integrating competencies into succession
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risks associated with leadership transitions, ensuring the organization remains
resilient and competitive.
Succession Planning – Census Data
The HR Department provided census data for City employees as of July 31,
2024. The key data highlighted in the tables below includes the total number of
employees, ages, years of service, and those eligible for retirement
(estimated). This data aims to provide an understanding of the current
workforce landscape. Accurately predicting the timing of employee retirements
presents challenges, such as legal implications and privacy concerns
associated with inquiring about employees’ retirement plans.
Table 3: Full-time vs. Par-time Employees
Type Percentage
Regular 962 74%
Hourly 330 26%
Table 4: Age of City Employees
1 2 13 16 8 8 7
0 3 3 4 1 1 0
1 2 2 0 0 0 0
59 61 48 45 22 24 43
0 16 30 22 18 8 3
0 3 15 1 2 1 1
0 2 3 13 3 6 4
1 7 20 14 6 13 20
1 2 8 3 0 1 2
0 2 6 8 3 0 0
0 5 23 11 8 6 11
0 23 38 51 11 10 9
2 19 44 61 24 25 26
1 34 56 70 28 24 30
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Table 5: Employee Years of Service
26 12 6 3 5 2 1
7 3 2 0 0 0 0
5 0 0 0 0 0 0
201 37 17 20 13 10 4
35 13 16 14 14 5 0
16 2 0 3 1 0 1
8 11 5 3 3 0 1
57 10 1 4 4 4 1
12 5 0 0 0 0 0
12 5 0 1 1 0 0
37 12 4 5 5 1 0
53 25 25 15 15 6 3
84 38 31 14 20 10 4
100 50 28 24 20 12 9
Table 6: Retirement Eligible City Employees – Overall*
Yes 16%
No 84%
*Estimated based on employees over the age of 55 and have at least 5 years’ service
Table 7: Retirement Eligible City Employees – by Department*
12 43
1 11
0 5
48 254
7 90
2 21
10 21
15 66
1 16
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6 10 Steps to Succession Planning (gfoa.org)
OOT 19
PLA 64
POL 142
PWD 201
UTL 243
Total Years
Service 202 1,090 1,292
*Estimated based on employees over the age of 55 and have at least 5 years’ service
According to our estimated retirement analysis, 32% of the IT Department are
retirement eligible, followed by the Administrative Services Department (22%)
and the Public Works Department (21%).
The City’s workforce exhibits a well-balanced distribution of experience across
various age groups and lengths of service. This stability ensures a dynamic
and versatile team, combining the fresh perspectives of newer employees with
the seasoned insights of long-term staff members. Such a diverse range of
experience levels allows for a collaborative environment where innovative
ideas and proven strategies can thrive, ultimately enhancing the overall
effectiveness and adaptability of the City’s workforce.
Succession Planning Best Practices to Consider
GFOA suggests, "Knowledge transfer is a critical component of succession
management. There should be written procedures in place to formalize the
knowledge transfer. A meeting should be held with departing staff to document
job responsibilities."⁴
“Succession planning has gotten even more challenging in recent years, given
a changing job market, shorter employee tenure, and COVID-19 job turnover—
which means that governments should make it an even higher priority.” GFOA
has created a 10-step approach to succession planning so that organizations
can retain critical talent and hire skilled employees that replace staff that leave
the City. The 10-steps summarized include:6
1. Develop an integrated approach.
2. Continually assess potential employee turnover.
3. Provide a formal, written succession plan as a framework.
4. Develop written policies and procedures to encourage knowledge
transfer.
5. Develop leadership skills as a key component.
6. Encourage personal professional development activities.
7. Design better recruitment and retention practices.
8. Work out how collective bargaining agreements fit in with the overall
succession plan.
9. Consider non-traditional hiring strategies.
10. Be prepared by addressing the succession planning risks associated
with essential positions.
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Recommendation
Management
Response
structured knowledge transfer program to ensure critical information and
expertise are retained at the City.
A structured knowledge transfer program complements succession planning by
systematically capturing and sharing essential knowledge and skills from
experienced employees to their successors. This program can include
mentorship opportunities, detailed documentation of processes, and regular
training sessions. By institutionalizing these practices, the City can mitigate the
risk of knowledge loss, maintain operational efficiency, and foster a culture of
continuous learning and development.
Knowledge transfer initiatives not only safeguard the City’s institutional
knowledge but also empower employees by providing clear career progression
pathways and professional development opportunities. This holistic approach
to workforce planning ensures that the City remains resilient, adaptable, and
well-equipped to meet future challenges.
In conclusion, the City should designate a responsible entity to lead the
development of P&P for knowledge transfer across departments. This
responsibility could be assigned to the City Manager’s Office, the HR
Department, or a Succession Planning Committee comprised of department
heads.
Responsible Department(s): Human Resources and Citywide Departments
Concurrence: Partially Agree
Target Date: Ongoing
Action Plan: As noted in the report, the City initiated the Workplace Career
Advancement and Continuity Planning effort or "WCACP". This initiative
focuses on the identification of critical roles within the organization, the
identification of existing talent with growth potential, and the creation of
Individual Development Plans IDPs for those existing employees. This
program is curated to help departments with succession planning,
safeguarding institutional knowledge, and retaining existing talent. While still in
its initial phase the program is set to expand in 2025 to include more
individuals and more structure planning documents as recommended by the
Auditors report. However, staff expect that documents to support this effort and
knowledge transfer will focus on a framework for such initiatives; given the
diverse workforce and job functions.
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Policy & Services Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: December 10, 2024
Report #:2411-3841
TITLE
Approval of Office of the City Auditor Annual Risk Assessment and FY2025 Audit Plan
This report will be a late packet report published on December 5, 2025.
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Item No. 1. Page 1 of 2
Policy & Services Committee
Supplemental Report
From: Ed Shikada, City Manager
Meeting Date: December 10, 2024
Item Number: 1
Report #:2412-3849
TITLE
2025 City Council Priority Setting Process Discussion and Recommendations
COUNCIL UPDATES
Per the Handbook process, the Policy & Services Committee recommends to the Council, which
suggestions if any, should be considered at the Annual Retreat. The Council and Council-elect
were surveyed November 15 - November 27 on recommended 2025 Priorities for the Policy &
Services Committee to consider. Since the publication of the staff report, the following
additional responses have been received:
Councilmember Lauing-
Each of this year’s objectives is massive and requires a multi-year approach. As I have reflected
on this, I don’t see any objective more crucial than what we already have. And we don’t want
to change key objectives just for the novelty of it. If anything, I could see dropping the word
“transition” this year on the economic recovery objective as we are far from the pandemic.
This could help emphasize that this objective is not just about retail.
Councilmember Lythcott-Haims-
Keep same priorities.
Councilmember Kou-
1. Preservation & Expansion of the Natural Environment including Palo Alto’s tree canopy and
open spaces.
2. Defend Palo Alto’s Charter against State mandates
3. Fiscal Frugality
Councilmember Burt-
I don’t have recommendations for changes to the priorities, but I listed below in [bullets] some
areas that I would like to prioritized to advance these priorities.
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Item No. 1. Page 2 of 2
Climate Change & Natural Environment - Protection & Adaptation
•A summary and communication program on recent and planned permitting and
inspection streamlining related to solar, energy storage, and electrification appliances.
•Identification of expanded or enhanced special events to date and those projected for
2025 resulting from additions made to special events staffing.
•A plan with milestones for Cal Ave and University Ave downtowns nearer term
improvements, including a permanent parklet program for Cal Ave early in Q1 2025.
•A summary and communication program of recent and planned retail related permit
streamlining.
APPROVED BY:
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: December 10, 2024
Report #:2410-3553
TITLE
Recommend City Council Approve the Office of the City Auditor Risk Assessment and FY 2025
Audit Plan and Corresponding Task Orders
RECOMMENDATION
The City Auditor recommends that the Policy and Services Committee recommend
the City Council approve the following reports:
1. Fiscal Year 2024 Risk Assessment Report
2. Fiscal Year 2025 Audit Plan Report
BACKGROUND
The Palo Alto Municipal Code (Section 2.08.1301) requires the City auditor prepare and submit
an annual audit plan to the City Council for review and approval. In its capacity serving as the
City Auditor function, and in accordance with Baker Tilly’s agreement with the City, Baker Tilly
performed a citywide risk assessment (Task 1 of the agreement2). The purpose of the
assessment was to identify and prioritize risks to develop the annual audit plan (Task 2). During
the risk assessment, Baker Tilly assessed a wide range of risk areas, including strategic, financial,
technological, human capitol, operational, reputational, economic, and including compliance
risk categories.
ANALYSIS
Baker Tilly, serving as the City Auditor, interviewed City Council members and executive
leadership across all departments within the City regarding risks to the City and individual
departments. Baker Tilly analyzed the results of these interviews and other data and
information gathered from industry associations and publications. Identified risks were scored
1 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-60361
2 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11624.pdf?t=64761.15
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and ranked based on likelihood and impact. The FY2025 Audit Plan was prepared based on the
results of the FY2023 risk assessment survey conducted in the fall of 2023 and the FY2024 risk
assessment interviews conducted in summer of 2024 and informed by current business factors
such as other planned assessments and studies to ensure efficient allocation of City resources.
FISCAL/RESOURCE IMPACT
STAKEHOLDER ENGAGEMENT
ENVIRONMENTAL REVIEW
ATTACHMENTS
APPROVED BY:
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November 20, 2024
City of Palo Alto
Office of the City Auditor
FY2024 Annual Risk Assessment
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Contents
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global
network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are
not licensed CPA firms.
INTRODUCTION...............................................................................................................1
RISK ASSESSMENT APPROACH...................................................................................2
RISK ASSESSMENT RESULTS......................................................................................3
APPENDICES...................................................................................................................9
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1
Introduction
Overview
According to City Ordinance of the City of Palo Alto (the City), the mission of the Office of the City Auditor (OCA)
is to promote honest, efficient, effective, economical, and fully accountable and transparent city government. To
fulfill this mission, the OCA conducts performance audits and performs financial/operational analyses of
city departments, programs, services, or activities as approved by the City Council. (Section 2.08.130). In its
capacity serving as the City Auditor function, and in accordance with Baker Tilly’s agreement with the City (Task
#1 of the agreement), Baker Tilly Advisory Group, LP (Baker Tilly) conducted the fiscal year (FY) 2024 citywide
risk assessment in order to develop the FY2025 annual audit plan (Task #2).
The California Government Code Section 1236 requires all cities that conduct audit activities to conduct their
work under the general and specified standards prescribed by the Institute of Internal Auditors (IIA) or the
Government Auditing Standards (GAO) issued by the Comptroller General of the United States, as appropriate.
According to the IIA Standard 2010, the head of internal audit function “must establish a risk-based plan to
determine the priorities of the internal audit activity, consistent with the organization’s goals” and consider the
input of senior management and a governing board.
The purpose of the risk assessment is to develop an internal audit plan that assigns internal audit resources to
the activities that add the most value to the City. The risk assessment process involves identifying, measuring,
and prioritizing risks associated with the audit universe (list of specific departments, functions, processes,
programs, etc. that can be subject to an audit). Risk is defined as “the possibility of an event or condition
occurring that will have an impact on the ability of an organization to achieve its objectives.”1
Our risk assessment involved collaboration with City Council and executive leadership from 14 main
departments across the organization. This report summarizes our risk assessment methodology, analysis, and
results. The FY2025 annual audit plan is based on the results of this risk assessment.
Through the risk assessment, we observed certain strengths of the City. Key strengths include:
Commitment to public service
High value on efficient and effective government
Focus on long term strategy
Dedicated and highly professional management and staff
Demonstrated history of innovation and commitment to sustainability
Risk Assessment Process Considerations
The starting point of internal auditing is to conduct a risk assessment that is the basis for determining the
internal audit activities. However, it is not a one-size-fits-all process. The scope and complexity of the risk
assessment are affected by various factors such as the maturity level of the internal audit function’s products
and services, the organization’s enterprise risk management efforts, coordination with other monitoring and risk
management functions, and the stakeholders’ expectations. As every organization is subject to a changing
environment, the results of the annual risk assessment represent the information considered at the time of the
assessment.
In addition to the annual macro-level risk assessment, the internal audit function is required to perform an
engagement-level risk assessment when starting each audit listed in the approved audit plan. The IIA Standard
2200 states, “Internal auditors must develop and document a plan for each engagement, including the
engagement’s objectives, scope, timing, and resource allocations. The plan must consider the organization’s
strategies, objectives, and risks relevant to the engagement.”
1 Rick A. Wright Jr., CIA, “The Internal Auditor’s Guide to Risk Assessment” The Institute of Internal Auditors Research Foundation (IIARF),
2018
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Risk Assessment Approach
Baker Tilly’s risk assessment approach consisted of four phases as illustrated in the graphic below.
2024 RISK ASSESSMENT PHASES
Planning •Scheduled the interviews with City Council members and Executive Leadership Team (ELT)
members.
Information
Gathering
•Analyzed key documents such as City Council Priorities and the progress report, the budget
documents, the annual comprehensive financial report, departmental strategic plans,
employee turnover, the information on the City’s website and other relevant documents.
•Interviewed all available City Council Members and ELT members (24 individuals) to identify
the events and conditions that may affect the achievement of objectives.
•Updated the risk assessment matrix with the information gathered.
Analysis
•Scored the auditable units (listed in Appendix A) in the risk assessment matrix based on the
likelihood and the impact2 of potential adverse events.
o Each of the auditable units received scores for various risk factors related to the
likelihood or impact (defined in Appendix B).
o Risk factor scores were summed to create a single score for the auditable unit.
•Identified potential internal audit activities for the auditable units with high risk scores.
Reporting •Summarized the approach and results of the risk assessment
Baker Tilly conducted an initial comprehensive risk assessment in FY2021 by interviewing all Council Members
and Executive Leadership Team (ELT) members to create a risk assessment matrix. For the FY2022 risk
assessment, Baker Tilly surveyed all ELT members and some additional members of management and
conducted interviews with available Council Members as well as key ELT members representing areas of
perceived high risk (e.g., Information Technology, Human Resources). For the third year risk assessment, all
Council Members and ELT members were interviewed, 51 managers were surveyed, and the risk assessment
matrix was redeveloped for a comprehensive picture of the risk landscape, which will be continuously improved.
For FY2024, Baker Tilly met with all available City Council and ELT members (24 individuals in total). These
interviews focused on identifying strategic and operational strengths, weaknesses, opportunities, and threats.
Our risk assessment primarily measured inherent risk (the risk without mitigating controls/factors) for each risk
factor although we also considered specific risks based on the City’s processes, controls, and other factors we
learned through internal audit activities. Using the information gathered, we identified risks and determined the
likelihood and impact of the risks.
2 Likelihood is the possibility that an event will occur. Impact is the extent to which an event might affect an organization.
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Risk Assessment Results
Department Descriptions and Key Risk Areas
When identifying risk areas throughout the City, Baker Tilly considered each department and associated risks.
Based on the concerns described by interviewees, departments’ functions, and their inherent risks, Baker Tilly
identified the auditable risk areas for each department. Below is an overview of the City’s departments and their
key risk areas.
Administrative Services
The Administrative Services Department provides financial and
analytical support to the City. Departmental functions include
finance and accounting, purchasing, administration, budget, real
estate, and others.
Key Risk Areas
Purchasing Card Program
Procurement Process
Property Management
Contract & Consultant Oversight
City Attorney’s Office
The City Attorney’s Office provides legal services to the City,
including providing legal advice and training to City leaders,
negotiating on behalf of the City, drafting contracts and other
legal documents, investigating claims, and defending the City in
litigation
Key Risk Areas
Identification of Legal Risks
Contracts & Legal Documents
City Clerk’s Office
The City Clerk serves as a liaison between the public and City
Council. Office functions include Public Records Act requests,
public hearings, local elections, board and commission
recruitments, record management, and others.
Key Risk Areas
Election Administration
Record Retention & Management
Council Meeting Management
City Manager’s Office
The City Manager’s Office provides leadership to the City
departments and is responsible for facilitating City Council
legislative actions, managing special interdepartmental projects,
and more. The Communications Office is housed under the City
Manager’s Office and is the primary correspondent between the
City and the public.
Key Risk Areas
Citywide Risk Management
Government Efficiency
Economic Development
Strategic Planning
Office of Transportation
The Office of Transportation works to enhance quality of life and
improve the safety of the users of all modes of transportation.
The Office is responsible for sustainable transportation systems,
managing parking, and oversees the City’s traffic and
transportation capital improvement projects.
Key Risk Areas
Intersection Safety Improvements
Federal Railroad Administration (FRA)
Quiet Zone
Transit-Related Growth
Community Services Department
The Community Services Departments offers a variety of
services administered through the following three divisions and
the Office of Human Services: Arts and Sciences; Open Spaces,
Parks, and Golf; and Recreation.
Key Risk Areas
Human Services Resource Allocation
Process (HSRAP)
Junior Museum and Zoo (JMZ)
Operation
Equipment & Materials Management
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Fire
The Fire Department oversees emergency response such as
ambulance transports and fire response/rescue, emergency
protection services such as fire prevention, and hazardous
materials planning. The department highlights safeguarding the
community and compassionate care.
Key Risk Areas
Emergency Preparedness (Foothills
Fire Master Plan)
Staffing
Fleet Electrification
Human Resources
The Human Resources (HR) Department is responsible for
recruiting, developing, and retaining a well-qualified and
professional workforce. The Department ensures compliance with
relevant labor laws, adheres to record keeping practices, and
serves as a strategic partner for executive decision making.
Key Risk Areas
Recruitment
Succession Planning
HR Strategy & Risk Management
Workplace Safety
Information Technology
The Information Technology Department's provides innovative
technology solutions that support City departments. The
department oversees IT project management, operations,
enterprise systems, and security services.
Key Risk Areas
- PCI/DSS Compliance
- AMI Implementation
- ERP Upgrade
- Adoption & Integration of New Tech
Library
The Library Department operates five libraries throughout the
City, each offering unique resources. The Library provides
educational programming, multi-cultural events, and large and
diverse book, information and technology resources.
Key Risk Areas
Operations
Events and Programming
Volunteer Engagement
Office of Emergency Services
The Office of Emergency Services is designed to prevent,
prepare for, and recover from various hazards. The Office is
responsible for overseeing various risk management programs.
Key Risk Areas
Emergency Preparedness (Foothills
Fire Mitigation Program; Evacuation
Plans, COOPs, Interlocal Agreements)
Training Compliance
Planning and Development Services
The Planning Department supports the City in land use
development, planning, transportation, housing and
environmental policies, and plans and programs that “maintain
and enhance the City as a safe, vital, and attractive community”.
Key Risk Areas
Building Permit & Inspection Processes
Building Permit & Inspection Fees
Zoning Ordinance
Code Enforcement
Long Range Planning
RHNA Affordable Housing Mandate
Police
The Police Department oversees technical services such as
dispatch and record management, field services such as patrol
and emergency response, and animal control. The Police
Department also places a high value on community relations.
Key Risk Areas
Crime Reduction
Psychiatric Emergency Response Team
(PERT) Program
Safety and Wellness
Training
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Overall Risk Scoring Distribution
Baker Tilly structured the audit universe based on the department/division/program from the budget document
and management’s feedback, which resulted in 96 auditable units (Appendix A). We scored them based on the
information gathered for each risk factor related to the likelihood, impact, or fraud. Appendix B lists the risk
factors, definitions, and scoring method. The maximum score for an auditable unit is 30. The following chart
shows the distribution of overall risk scoring.
Baker Tilly rated the auditable units as follows:
•High Risk – Scores 14 and above
•Moderate Risk – Scores more than 9 and less than 14
•Low Risk – Scores below 9
Listed in the following pages are the auditable units with a score over 12 (out of 30) based on our scoring. The
list includes 28 functions rated as high risk (with a score between 14 and 30) and 17 functions rated as
moderate risk (with a score between 12 and 14). Items in grey text, were part of the FY2024 Audit Plan. In
determining the audit activities to be performed in FY2025, we further evaluated specific risks and functional
Public Works
The Public Works Department is broken into four divisions:
Engineering, Airport, Public Services, and Environmental
Services. The Divisions are responsible for a variety of tasks
including design and implementation of capital projects,
maintenance of City-owned and leased structures, and
management of the solid waste programs.
Key Risk Areas
Wastewater Treatment Capital Program
The Americans with Disabilities Act
(ADA) Compliance
Flood Protection Capital Project
Airport Operations
Utilities
The Utilities Department owns and operates electric, gas, water,
wastewater and fiber optic services to the City. The City
purchases all their power from external sources. The mission of
the Department is to “provide safe, reliable, environmentally
sustainable and cost effective services.”
Key Risk Areas
Power Purchase Agreements
Utility Billing
Fiber Optics Billing & Rates
Rate Setting and Adjustment
Utility Asset Management
7
24
44
18
3
Score ≤ 5 5 - 10 10 - 15 15 - 20 > 20
Overall Risk Score Distribution
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areas and considered risk-based priorities as well as other factors such as requirements by law or regulation,
timing of activities, special projects, and requests from City Council and management. The proposed audit plan
will be included in a separate FY2025 Annual Audit Plan Report.
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Appendix A: Resumes
Appendices
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Appendix A: Audit Universe
City Attorney’s Office
Administration
Consultation and Advisory
Litigation and Dispute Resolution
Official and Administration Duties
City Clerk’s Office
Administration
Administrative Citations
Council Support Services
Election/Conflict of Interest
Legislative Records Management
City Manager’s Office
Administration and City Management
Economic Development
Public Communication
Administrative Services Department
Accounting
Administration
Office of Management and Budget
Printing and Mailing
Purchasing
Real Estate
Treasury/Revenue Collection/Warehouse
Community Services Department
Administration and Human Services
Animal Shelter
Aquatics
Arts and Sciences
Open Space, Parks and Golf
Recreation and Cubberley
Fire Department
Administration
Emergency Response
Environmental Safety Management
Records and Information Management
Training and Personnel
Human Resources Department
Administration, Employee Org Development and HR Systems
Benefits and Compensation
Employee and Labor Relations
Recruitment
Risk Management, Safety, Workers’ Compensation
Information Technology Department
Enterprise Systems
Office of the CIO
Operations
Project Services
Library Department
Administration
Collection and Technical Services
Public Services
Office of Emergency Services
Emergency Services
Office of Transportation
Administration
Parking Districts
Programs
Special Revenue Funds
Planning and Development Services Department
Administration
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Building
Development Services
Planning and Transportation
Special Districts
Police Department
Administration
Animal Control
Field Services
Investigations and Crime Prevention Services
Law Enforcement Services
Parking Services
Police Personnel Selection
Technical Services
Traffic Services
Department of Public Works
Administration
Airport
Engineering Services
Refuse
Storm Drainage
Streets
Structures and Grounds
Sustainability
Trees
Vehicle Replacement and Maintenance
Wastewater Treatment
Utilities Department
Electric Administration
Electric Customer Service
Electric Demand Side Management
Electric Engineering (Operating)
Electric Operations and Maintenance
Electric Resource Management
Fiber Optics Administration
Fiber Optics Customer Service
Fiber Optic Operations and Maintenance
Gas Administration
Gas Customer Service
Gas Demand Side Management
Gas Engineering (Operating)
Gas Operations and Maintenance
Gas Resource Management
Wastewater Collection Administration
Wastewater Collection Customer Service
Wastewater Collection Engineering (Operating)
Wastewater Collection Operations and Maintenance
Water Administration
Water Customer Service
Water Engineering (Operating)
Water Operations and Maintenance
Water Resource Management
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Appendix B: Risk Factor Definition
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November 20, 2024
City of Palo Alto
Office of the City Auditor
FY2025 Annual Audit Plan
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Contents
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global
network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are
not licensed CPA firms.
INTRODUCTION...............................................................................................................1
RISK ASSESSMENT RESULTS......................................................................................3
PROPOSED AUDIT PROJECTS FOR FY2024................................................................4
APPENDICES...................................................................................................................6
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Introduction
Introduction
The purpose of the audit activities performed by Baker Tilly Advisory Group, LP (Baker Tilly) as the outsourced
Office of the City Auditor (OCA) for the City of Palo Alto (the City) is “to ensure that city management is using its
financial, physical, and informational resources effectively, efficiently, economically, ethically, and equitably, and
in compliance with laws, regulations, contract and grant requirements, and city policies and procedures”,
according to the Palo Alto Municipal Code (Section 2.08.130). It requires the City Auditor to prepare an annual
audit plan for the City Council’s approval.
Conformance with Local Ordinances and Standards
Section 2.08.130 of the Palo Alto Municipal Code defines that the mission of the OCA is to promote honest,
efficient, effective, economical, and fully accountable and transparent city government. Audits are to be
conducted and non-audit services provided in accordance with Government Auditing Standards, as established
by the Comptroller General of the United States, Governmental Accountability Office.
The following duties of the City Auditor exist regarding the plan and scope of internal audits.
Palo Alto City Charter
Article IV Sec. 12 requires the City Auditor to perform the following:
–Conduct audits in accordance with a schedule approved by the City Council and may conduct
unscheduled audits from time to time.
–Conducts internal audits of all the fiscal transactions of the City.
Title 2 Administrative Code
Section 2.08.130 requires the City Auditor to perform the following:
–Prepare an annual audit plan for City Council approval.
–Identify the preliminary objectives of each audit to be performed, reflecting the purpose of the
engagement and a preliminary description of the areas that may be addressed.
–Conduct performance audits and perform non-audit services of any City department, program, service,
or activity as approved by the City Council.
California Government Code
Section 1236 requires all cities that conduct audit activities to conduct their work under the general and
specified standards prescribed by the Institute of Internal Auditors (IIA) or the Government Auditing
Standards (GAO) issued by the Comptroller General of the United States, as appropriate.
Audit Activity Type
The OCA will conduct performance audits and perform financial/operational analyses of any City department,
program, service, or activity as approved by the City Council in accordance with the Baker Tilly agreement.
Performance Audits
According to the Government Auditing Standards (GAO-18-568G, Section 1.21 and 1.22, page 10-12),
performance audits provide objective analysis, findings, and conclusions to assist management and those
charged with governance and oversight with, among other things, improving program performance and
operations, reducing costs, facilitating decision making by parties responsible for overseeing or initiating
corrective action, and contributing to public accountability. Performance audits may include the following four
(4) audit objectives:
–Program effectiveness and results
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INTRODUCTION
–Internal control design and effectiveness
–Compliance with laws, regulations, and policies
–Prospective analysis
Audit Planning Considerations
While maintaining its independence and objectivity in accordance with standards, the City Auditor considers a
variety of matters when developing the Annual Audit Plan, including but not limited to:
–Risk Assessment – the OCA performed a risk assessment and summarized the results in a separate
report (Task #2). Generally speaking, audit activities target high(er) risk areas. The results are shown
on the following page.
–Ability to Add Value – audit seeks to add value through independent and objective analysis.
–City Council – the City Auditor reports to the City Council and seeks input on audit priorities.
–Coverage and Prior Audits – the City Auditor considers prior audits conducted by the OCA, the financial
audit, and other audit and consulting reports recently issued.
–“Ripeness” and On-Going Initiatives – certain risk areas may be addressed through operational
activities, which could mean they are not ripe for audit to add value.
–Scheduling – the City Auditor takes into consideration the timing of an audit and other on-going
initiatives that directly relate. Putting an undue burden on City staff may exacerbate the risk at hand or
other interrelated risks.
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Risk Assessment Results
The OCA performed a citywide risk assessment to plan for FY2025 audit activities and documented the
methodology and the detailed results in a separate Risk Assessment Report. In summary, we identified the
following areas rated as High or Moderate risks. Items in grey were included in the FY2024 Annual Audit Plan.
In determining the audit activities to be performed in FY2025, we further reviewed these risks and functional
areas and considered the matters listed in the previous page.
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PROPOSED PROJECTS FOR FY2025
Proposed Projects for FY2025
Summary
The proposed audits, special projects and follow-up project for FY2025 are listed on the next page. The projects
were selected from the auditable units that were rated as High or Moderate in the results of our risk assessment
and selected based on some factors such as risk rating, the pervasiveness of the processes or controls, the
audit coverage, the timing of projects, and the value-adding activities that help the City enhance the ability to
manage risks, strengthen accountability, and improve efficiency and effectiveness.
The preliminary audit objectives are described for each audit listed. These objectives and scope will be further
defined based on the result of the engagement level risk assessment performed at the beginning of each audit.
Amendments to this audit plan may need to be proposed during FY2025 in response to changes in the City’s
environment such as organizational structure, operations, risks, systems, and controls.
For each audit, a task order is submitted to the City Council for approval before an audit commences. We
prepared six task orders which are included in the Appendix. The OCA is seeking approval from the City
Council to begin all six audits in January 2025.
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Proposed Audit Plan for FY2025
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Appendix A: Resumes
Appendices
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PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.29
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $95,670
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
Introduction
•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
•Step 1: Audit Planning
•Step 2: Fieldwork and Testing
•Step 3: Reporting
Step 1 – Audit Planning
•Gather information to understand the environment under review
o Understand the environment under assessment
o Assess the City code, regulations, and other standards and expectations
o Assess prior audit results, as applicable
o Assess additional documentation and conduct interviews as necessary
•Assess the audit risk
•Prepare an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and
examined
•Announce the initiation of the audit and kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit
Step 2 – Fieldwork and Testing
•Interviewing the appropriate individuals to gain an understanding of the organizational structure,
processes, and controls related to the Purchasing Card Program
•Analyze policies and procedures as well as the legislative and regulatory requirements to identify
the criteria to be used for evaluation of control design and effectiveness
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•Select a sample of P-Card transactions to assess
•Compare processes and controls against best practices
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing findings, conclusions, and recommendations based on the supporting evidence
gathered
•Validating findings with appropriate individuals and discuss the root cause of the identified
findings
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, findings, conclusions, and recommendations
o Discuss management responses
•Obtain written management responses and finalize a report
•Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Audit Report
•Policy & Services Committee Audit Report Presentation
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $95,670.
The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 50 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.30
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $95,670
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
Introduction
•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
•Step 1: Audit Planning
•Step 2: Fieldwork and Testing
•Step 3: Reporting
Step 1 – Audit Planning
•Gather information to understand the environment under review
o Understand the environment under assessment
o Assess the City code, regulations, and other standards and expectations
o Assess prior audit results, as applicable
o Assess additional documentation and conduct interviews as necessary
•Assess the audit risk
•Prepare an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the audit and kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit
Step 2 – Fieldwork and Testing
•Interviewing the appropriate individuals to gain an understanding of the organizational structure,
processes, and controls related to the Development Services Program
•Analyze policies and procedures as well as the legislative and regulatory requirements to identify
the criteria to be used for evaluation of control design and effectiveness
•Select a sample of Building Permit and Inspection Fee transactions to assess
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•Compare processes and controls against best practices
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing findings, conclusions, and recommendations based on the supporting evidence
gathered
•Validating findings with appropriate individuals and discuss the root cause of the identified
findings
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, findings, conclusions, and recommendations
o Discuss management responses
•Obtain written management responses and finalize a report
•Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Audit Report
•Policy & Services Committee Audit Report Presentation
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $95,670.
The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 50 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.31
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $89,900
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
Introduction
•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
•Step 1: Audit Planning
•Step 2: Fieldwork and Testing
•Step 3: Reporting
Step 1 – Audit Planning
•Gather information to understand the environment under review
o Understand the environment under assessment
o Assess the City code, regulations, and other standards and expectations
o Assess prior audit results, as applicable
o Assess additional documentation and conduct interviews as necessary
•Assess the audit risk
•Prepare an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the audit and kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit
Step 2 – Fieldwork and Testing
•Interviewing the appropriate individuals to gain an understanding of the organizational structure,
processes, and controls related to the Junior Museum and Zoo
•Analyze policies and procedures as well as the program mission and objectives to identify the
criteria to be used for evaluation of control design and effectiveness
•Compare processes and controls against best practices
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Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing findings, conclusions, and recommendations based on the supporting evidence
gathered
•Validating findings with appropriate individuals and discuss the root cause of the identified
findings
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, findings, conclusions, and recommendations
o Discuss management responses
•Obtain written management responses and finalize a report
•Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Audit Report
•Policy & Services Committee Audit Report Presentation
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $89,900.
The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 40 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 33 Packet Pg. 116 of 124
16
PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.32
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $89,900
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 34 Packet Pg. 117 of 124
17
Attachment A
Introduction
•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
•Step 1: Audit Planning
•Step 2: Fieldwork and Testing
•Step 3: Reporting
Step 1 – Audit Planning
•Gather information to understand the environment under review
o Understand the environment under assessment
o Assess the City code, regulations, and other standards and expectations
o Assess prior audit results, as applicable
o Assess additional documentation and conduct interviews as necessary
•Assess the audit risk
•Prepare an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the audit and kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit
Step 2 – Fieldwork and Testing
•Interviewing the appropriate individuals to gain an understanding of the equipment and materials
inventory management system
•Analyze policies and procedures related to equipment and material management and procurement
to identify the criteria to be used for evaluation of control design and effectiveness
•Compare processes and controls against best practices
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 35 Packet Pg. 118 of 124
18
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing findings, conclusions, and recommendations based on the supporting evidence
gathered
•Validating findings with appropriate individuals and discuss the root cause of the identified
findings
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, findings, conclusions, and recommendations
o Discuss management responses
•Obtain written management responses and finalize a report
•Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Audit Report
•Policy & Services Committee Audit Report Presentation
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $89,900.
The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 40 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 36 Packet Pg. 119 of 124
19
PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.33
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $95,670
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 37 Packet Pg. 120 of 124
20
Attachment A
Introduction
•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
•Step 1: Audit Planning
•Step 2: Fieldwork and Testing
•Step 3: Reporting
Step 1 – Audit Planning
•Gather information to understand the environment under review
o Understand the environment under assessment
o Assess the City code, regulations, and other standards and expectations
o Assess prior audit results, as applicable
o Assess additional documentation and conduct interviews as necessary
•Assess the audit risk
•Prepare an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the audit and kick-off meeting with key stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and expectations
o Discuss documentation and interview requests for the audit
Step 2 – Fieldwork and Testing
•Interviewing the appropriate individuals to gain an understanding of the organizational structures,
processes, and controls related to staffing and use of overtime including plans and systems used
•Analyze policies and procedures related to Public Safety staffing to identify the criteria to be used
for evaluation of control design and effectiveness
•Analyze Public Safety performance metrics to determine if staffing levels enable desired
performance outcomes
•Compare performance processes and controls against best practices
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 38 Packet Pg. 121 of 124
21
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing findings, conclusions, and recommendations based on the supporting evidence
gathered
•Validating findings with appropriate individuals and discuss the root cause of the identified
findings
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, findings, conclusions, and recommendations
o Discuss management responses
•Obtain written management responses and finalize a report
•Review report with members of City Council and/or the appropriate Council Committee
Deliverables:
The following deliverables will be prepared as part of this engagement:
•Audit Report
•Policy & Services Committee Audit Report Presentation
Schedule of Performance
Anticipated Start Date: January 1, 2025
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 $95,670.
The not-to-exceed budget is based on an estimate of 500 total project hours, of which a minimum of 50 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 39 Packet Pg. 122 of 124
22
PROFESSIONAL SERVICES TASK ORDER
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.: FY25-4.34
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: January 1, 2025 COMPLETION: June 30, 2025
4. TOTAL TASK ORDER PRICE: $59,390
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: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 40 Packet Pg. 123 of 124
23
Attachment A
Introduction
•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
•Track and monitor progress on all audit recommendations
•Obtain sufficient evidence to support conclusions regarding the status of audit recommendations
•Annually report on the status of recommendations
Deliverables:
•Annual Status of Audit Recommendations Report
•Policy & Services Committee Report Presentation
Schedule of Performance
Maximum Compensation Amount and Rate Schedule
Item 5
Attachment B - OCA -
FY2025 Annual Audit Plan
Item 5: Staff Report Pg. 41 Packet Pg. 124 of 124