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HomeMy WebLinkAbout2025-04-08 Policy & Services Committee Agenda PacketPOLICY AND SERVICES COMMITTEE Regular Meeting Tuesday, April 08, 2025 Council Chambers & Hybrid 6:00 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 types 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 number 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.Office of the City Auditor Presentation of the Emergency Preparedness/Wildfire Audit Report Late Packet Report 2.Recommend City Council Approval to Extend the Deadline for Several FY2024 Audit Plan and FY25 Audit Plan Task Orders 3.Update, Discussion, and Potential Direction Regarding State and Federal Legislation, Executive Orders and Other Regulatory and Funding Activity 4.Establish a City Council Interview Selection Process for Boards, Commissions, and Committees 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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  1 Regular Meeting April 08, 2025 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, April 08, 2025Council Chambers & Hybrid6:00 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 types 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 number 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.Office of the City Auditor Presentation of the Emergency Preparedness/Wildfire Audit Report Late Packet Report 2.Recommend City Council Approval to Extend the Deadline for Several FY2024 Audit Plan and FY25 Audit Plan Task Orders 3.Update, Discussion, and Potential Direction Regarding State and Federal Legislation, Executive Orders and Other Regulatory and Funding Activity 4.Establish a City Council Interview Selection Process for Boards, Commissions, and Committees 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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments. 2 Regular Meeting April 08, 2025 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, April 08, 2025Council Chambers & Hybrid6:00 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 types 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 onnumber of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard atthe end of the agenda.ACTION ITEMS1.Office of the City Auditor Presentation of the Emergency Preparedness/Wildfire AuditReport Late Packet Report2.Recommend City Council Approval to Extend the Deadline for Several FY2024 Audit Planand FY25 Audit Plan Task Orders3.Update, Discussion, and Potential Direction Regarding State and Federal Legislation,Executive Orders and Other Regulatory and Funding Activity4.Establish a City Council Interview Selection Process for Boards, Commissions, andCommitteesFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENT PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1.Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2.For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3.Spoken public comments for agendized items using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments for agendized items using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN    Meeting ID: 946‐1874‐4621   Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  3 Regular Meeting April 08, 2025 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, April 08, 2025Council Chambers & Hybrid6:00 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 types 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 onnumber of speakers. Public Comment is limited to 30 minutes. Additional public comments, if any, will be heard atthe end of the agenda.ACTION ITEMS1.Office of the City Auditor Presentation of the Emergency Preparedness/Wildfire AuditReport Late Packet Report2.Recommend City Council Approval to Extend the Deadline for Several FY2024 Audit Planand FY25 Audit Plan Task Orders3.Update, Discussion, and Potential Direction Regarding State and Federal Legislation,Executive Orders and Other Regulatory and Funding Activity4.Establish a City Council Interview Selection Process for Boards, Commissions, andCommitteesFUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)ADJOURNMENTPUBLIC 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 $500 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 and have a value over $50,000. 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 $500 made within the last 12 months, you must disclose the campaign contribution before making your comments.  4 Regular Meeting April 08, 2025 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 Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: April 8, 2025 Report #:2503-4449 TITLE Office of the City Auditor Presentation of the Emergency Preparedness/Wildfire Audit Report This item will be a late packet distribution published on April 3, 2025. Item 1 Item 1 Staff Report        Item 1: Staff Report Pg. 1  Packet Pg. 5 of 113  6 9 2 5 Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: April 8, 2025 Report #: 2503-4430 TITLE Recommend City Council Approval to Extend the Deadline for Several FY2024 Audit Plan and FY25 Audit Plan Task Orders RECOMMENDATION The Office of the City Auditor recommends that the Policy & Services Committee recommend City Council approve the extension of the following task orders from the FY24 and FY25 Annual Audit Plans. These extensions will have no fiscal impact. 1. Extend the deadline from December 31, 2024 to June 31, 2025 for FY2024 Annual Audit Plan Task Orders still underway: 1. Task Order 4.24 – Grant Management Audit 2. Task Order 4.25 – Emergency Preparedness (Wildfire) 3. Task Order 4.26 – Utility Billing Audit 4. Task Order 4.27 – Payment Card Industry Data Security Standards Audit 5. Task Order 4.28 – Dispatch Center Assessment 2. Extend the deadline from June 31, 2025 to October 31, 2025 for FY2025 Annual Audit Plan Task Orders still underway: 1. Task Order 4.29 – Purchasing Card Audit 2. Task Order 4.30 – Building Permit & Inspection Fees Audit 3. Task Order 4.31 – Junior Museum & Zoo Audit 4. Task Order 4.32 – CSD Equipment & Materials Inventory Management Audit 5. Task Order 4.33 – Public Safety Staffing & Overtime 6. Task Order 4.34 – Follow Up Audit Activities Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 1  Packet Pg. 6 of 113  6 9 2 5 BACKGROUND In accordance with our agreement with the City, Baker Tilly is required to execute the Annual Audit Plan each year which consists of specific, approved audit task orders. •Task 4: Execute Annual Audit 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 is seeking for the P&S Committee to recommend Council approval to extend the deadlines for task orders still underway from the FY2024 and FY2025 Annual Audit Plans. The recommended amendment would extend the term of the FY2024 Audit Plan by 6 months to June 30, 2025 and the FY2025 Annual Audit Plan by 4 months to October 31, 2025. The outstanding FY2024 Annual Audit Plan task orders are all in the reporting phase and scheduled for presentation or been reported to P&S. 1. Task Order 4.24 – Grant Management and Task Order 4.26 – Utility Billing were presented at the February 11, 2025 P&S Committee meeting. 2. Task Order 4.25 – Emergency Preparedness (Wildfire) is scheduled for presentation at the April 8, 2025 P&S Committee meeting. 3. Task Order 4.27 – Payment Card Industry Data Security Standards is scheduled for presentation via closed session at the April 7, 2025 City Council meeting. 4. Task Order 4.28 – Dispatch Center Assessment is scheduled for presentation at the May 13, 2025 P&S Committee meeting. The FY2025 Annual Audit Plan task orders are in various audit stages with some audits anticipated for reporting at the June 10, 2025 P&S Committee meeting and the remaining audits reported in August, September and October depending on scheduling. FISCAL/RESOURCE IMPACT Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY2024 and FY2025 Operating Bugets for the Office of the City Auditor. Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 2  Packet Pg. 7 of 113  6 9 2 5 ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 2 Item 2 Staff Report        Item 2: Staff Report Pg. 3  Packet Pg. 8 of 113  7 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.29 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 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): C21179340A 1B. TASK ORDER 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 12/23/2024 Kate Murdock Manager/ City Auditor12/25/2024 Council Member Council Member Lydia Kou October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 4  Packet Pg. 9 of 113  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 the Purchasing Card Program involves three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork 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 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 The 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 (1) whether procurement are used appropriately in compliance with the City’s policies 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 are not limited to: Interviewing the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to the Purchasing Card Program Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 5  Packet Pg. 10 of 113  9 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 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) Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 6  Packet Pg. 11 of 113  10 Hotel accommodation – $3,000 (2 rooms x 4 nights) Food & Incidentals – $2,100 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.30 Building Permit and Inspection Fees 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock 12/23/2024 Manager/ City Auditor Council Member Council Member Lydia Kou 12/25/2024 October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 7  Packet Pg. 12 of 113  11 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 the Building Permit and Inspection Fees involves three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork 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 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 The 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 (1) If the City’s building permit and inspection fees are accurately and consistently applied; (2) Evaluate the administration of the Development Services Program for adequate internal controls to safeguard the City from fraud, waste, and abuse. Procedures include, but are not limited to: Interviewing the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to the Development Services Program Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 8  Packet Pg. 13 of 113  12 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 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 9  Packet Pg. 14 of 113  13 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.31 Junior Museum and Zoo 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): C21179340A 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock Manager/ City Auditor 12/23/2024 Council Member Council Member Lydia Kou 12/25/2024 October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 10  Packet Pg. 15 of 113  14 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 the Junior Museum and Zoo involves three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork 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 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 The 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 if the City’s Junior Museum and Zoo is operating effectively and efficiently to fulfill the program’s mission. Procedures include, but are not limited to: 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 11  Packet Pg. 16 of 113  15 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 12  Packet Pg. 17 of 113  16 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.32 CSD Equipment and Materials Inventory Management 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): C21179340A 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock 12/23/2024 Manager/ City Auditor Council Member Council Member Lydia Kou 12/25/2024 October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 13  Packet Pg. 18 of 113  17 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 the Community Services Department Equipment and Materials Inventory Management three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork 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 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 The 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 if the Community Services Department Equipment and Materials Inventory Management system is operating effectively and efficiently: 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 14  Packet Pg. 19 of 113  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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 15  Packet Pg. 20 of 113  19 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.33 Public Safety Staffing 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): C21179340A 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Manager/ City Auditor Kate Murdock 12/23/2024 Council Member Council Member Lydia Kou 12/25/2024 October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 16  Packet Pg. 21 of 113  20 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 Public Safety Staffing including Overtime three (3) primary steps: Step 1: Audit Planning Step 2: Fieldwork 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 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 The 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 if the Public Safety Departments (Fire and Police) are effectively and efficiently staffed including use of overtime: 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 17  Packet Pg. 22 of 113  21 Analyze Public Safety performance metrics to determine if staffing levels enable desired performance outcomes Compare performance 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 18  Packet Pg. 23 of 113  22 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY25-4.34 Follow-Up Audit Activities 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): C21179340A 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 Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Kate Murdock Manager/ City Auditor 12/23/2024 Council Member 12/25/2024 Council Member Lydia Kou October 31, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 19  Packet Pg. 24 of 113  23 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: Services and Deliverables To Be Provided Schedule of Performance Maximum Compensation Amount and Rate Schedule (As Applicable) Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly will provide the following services in conducting Follow-Up Audit Activities:: 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: The following deliverables will be prepared as part of this engagement: Annual Status of Audit Recommendations Report Policy & Services Committee 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 $59,390. 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. Docusign Envelope ID: F60E09CC-400F-404E-8132-93318BE5ADE6 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 20  Packet Pg. 25 of 113  PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.24 Grant Management 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.: FY23-4.24 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $60,330 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 3/7/2024 Council Member Lydia Kou Council Member Kate Crowley 3/11/2024 Baker Tilly US, LLP Director June 30, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 21  Packet Pg. 26 of 113  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 Grant Management 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 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 22  Packet Pg. 27 of 113  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 has adequate internal controls to manage the grant lifecycle efficiently and effectively. Procedures include, but not limited to: Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to grant management. 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 grants for documentation review. 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 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this DocuSign Envelope ID: 62185555-39CD-4C18-8BA9-8E5B08CEB256 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 23  Packet Pg. 28 of 113  Task is $60,330. The not-to-exceed budget is based on an estimate of 315 total project hours, of which 23 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 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 24  Packet Pg. 29 of 113  PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY24-4.27 Payment Card Industry Data Security Standard (PCI DSS) 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.: FY23-4.27 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $69,680 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 3/7/2024 Council Member Lydia Kou Council Member Baker Tilly US, LLP Director 3/11/2024 Kate Crowley June 30, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 25  Packet Pg. 30 of 113  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 Payment Card Industry Data Security Standard (PCI DSS) 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: 62185555-39CD-4C18-8BA9-8E5B08CEB256 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 26  Packet Pg. 31 of 113  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 internal controls over the payment card processing are adequate and working effectively for the City and any third party service provider. Procedures include, but not limited to: Interview the appropriate individuals to gain an understanding of the organizational structure, processes, and controls related to compliance with PCI/DSS for payment card processing. Review policies and procedures as well as the legislative and regulatory requirements (including PCI/DSS) to identify the criteria to be used for evaluation of control design and effectiveness. Review the documentation related to ensuring third party providers’ PCI/DSS compliance 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 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 27  Packet Pg. 32 of 113  Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $69,680. The not-to-exceed budget is based on an estimate of 370 total project hours, of which 10 hours 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 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 28  Packet Pg. 33 of 113  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. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. 1B. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A TASK O RDER NO.: FY23-4.26 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $72,010 $75,010.00 Increased by $3,000 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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Kate Murdock Baker Tilly Advisory Group, LP 12/23/2024 Manager/ City AuditorManager Council Member Lydia Kou 12/25/2024 June 30, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 29  Packet Pg. 34 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 30  Packet Pg. 35 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 31  Packet Pg. 36 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 32  Packet Pg. 37 of 113  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. C21179340A OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. 1B. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340A TASK O RDER NO.: FY23-4.25 2.CONSULTANT NAME: Baker Tilly Advisory Group, LP 3.PERIOD OF PERFORMANCE: START: March 1, 2024 COMPLETION: December 31, 2024 4 TOTAL TASK ORDER PRICE: $73,110 $75,110.00 Increased by $2,000.00 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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Baker Tilly Advisory Group, LP 12/23/2024Manager/ City Auditor Kate Murdock 12/25/2024 Council Member Council Member Lydia Kou June 30, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 33  Packet Pg. 38 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 34  Packet Pg. 39 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 35  Packet Pg. 40 of 113  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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 36  Packet Pg. 41 of 113  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 $79,040 Increased by $2,500.00 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5.BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6.CITY DEPARTMENT PROJECT MANAGER’S NAME & 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) 8.ATTACHMENT REIMBURSABLE EXPENSES, if a Task Order Scope any of Service “not to exceed” (with amount) B (if any): N/A 9. 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: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Kate Murdock Manager/ City Auditor 12/23/2024 Council Member 12/25/2024 Council Member Lydia Kou June 30, 2025 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 37  Packet Pg. 42 of 113  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. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 38  Packet Pg. 43 of 113  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 Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 39  Packet Pg. 44 of 113  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. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 40  Packet Pg. 45 of 113  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. Docusign Envelope ID: E008AC75-7AE6-49DD-B29E-91EE8C83AC25 Item 2 Attachment A - Time Extension FY2024 and FY2025 Annual Audit Plans Task Orders        Item 2: Staff Report Pg. 41  Packet Pg. 46 of 113  Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: April 8, 2025 Report #:2503-4303 TITLE Update, Discussion, and Potential Direction Regarding State and Federal Legislation, Executive Orders and Other Regulatory and Funding Activity RECOMMENDATION Staff recommends that the Policy and Services Committee receive an update on state and federal legislation, executive orders and other regulatory and funding activity, and provide feedback on advocacy efforts. BACKGROUND AND ANALYSIS The City Council adopted the 2025 Federal and State Legislative Guidelines1 on January 13, 2025. The guidelines provide a baseline for the City’s legislative advocates at the state and federal level to advocate on the City’s behalf in relation to proposed legislation and other federal and state governmental activity. Where the Guidelines provide sufficient direction, the City’s legislative advocates may discuss Palo Alto's interests with state legislators and their staff and/or prepare a letter of advocacy in alignment with the guidelines for the Mayor's signature. This is key to enabling the City to weigh in on fast-moving developments. The Policy and Services Committee receives regular updates from Townsend Public Affairs (TPA), the City’s legislative advocates, and recommends legislation for TPA to monitor on behalf of the City. For the April 8 Committee discussion, TPA prepared the attached memo (Attachment A) outlining major legislative and budgetary updates for the state and federal governments. Attachment B lists legislation with potential Palo Alto impacts that TPA and staff will monitor as they progress. If desired, Committee members may also raise for discussion other legislation of Palo Alto interest that is not listed in the memo or may recommend action on any of the bills listed on the monitoring list. 1 City of Palo Alto’s 2025 Federal and State Legislative Guidelines: https://www.cityofpaloalto.org/files/assets/public/v/1/city-manager/legislation/2025-legislative-guidelines.pdf Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 1  Packet Pg. 47 of 113  The 2025 State legislative calendar (which includes deadlines and other important dates) can be found online at: https://www.assembly.ca.gov/schedules-publications/legislative-deadlines. This calendar provides helpful context when reviewing the bills included in the Townsend memo. 2 and continued the item to its April 7, 2025 City Council meeting. A brief summary of the bill and TPA’s engagement is included in the memo. TPA will provide additional verbal updates on actions that take place between the agenda packet publication and the committee meeting. 3 the City Council adopted a Resolution Reaffirming City Council's Commitment to Palo Alto Values which links to actions at the Federal government. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 2 SB-457https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB457 3 March 17, 2025 City Council Meeting, Item AA1: Adoption of a Resolution Responding to Federal Actions. Link: Item 3 Item 3 Staff Report        Item 3: Staff Report Pg. 2  Packet Pg. 48 of 113  1 7 4 6 7 M E M O R A N D U M To: The Honorable Ed Lauing and Members of the Palo Alto City Council CC:Ed Shikada, City Manager From: Townsend Public Affairs Christopher Townsend, President Niccolo De Luca, Vice President Alex Gibbs, Grants Director Carlin Shelby, Senior Associate Joseph Melo, Senior Federal Associate Date: March 27, 2025 Subject: State and Federal Legislative Updates Townsend Public Affairs, Inc. (TPA) has prepared this report for the City of Palo Alto to provide a summary of State, Federal, and funding efforts and highlight the current status of the legislative process. STATE LEGISLATIVE UPDATES State Legislative Updates Since reconvening on January 6, the California State Legislature has introduced a total of 2,350 new bill vehicles—comprised of 850 Senate bills and 1,500 Assembly bills. This year marks the implementation of a new rule that caps the number of bills each legislator may introduce during the two-year session from 40 or 50 down to 35 bills per member, contributing to a modest reduction in overall bill volume. Following the bill introduction deadline in late February, the Legislature has shifted focus toward budget informational hearings—which serve to unpack the Governor’s January Budget Proposal—and policy committee hearings. These hearings will continue through early to mid-May, depending on whether bills have a fiscal impact and must move through the Appropriations Committees. As a result, late April through early May is expected to be an especially busy time at the Capitol, with packed hearing agendas as lawmakers work to move the more than 2,000 active bills through their first policy committees. Notable themes that have dominated the legislature this year include: 1.Permitting Reforms: A major package of bills aims to accelerate housing construction, particularly in areas impacted by wildfires, including the coastal zone. These proposals would require local governments and state agencies to speed up permitting processes, place temporary freezes on certain building standards, and provide stronger protections for tenants displaced by natural disasters. Speaker Rivas has indicated that several of these bills will include urgency clauses to ensure immediate implementation. Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 3  Packet Pg. 49 of 113  2 7 4 6 7 2.Viewing All Measures Through the Lens of Affordability: Speaker Rivas has emphasized to his caucus that all policy proposals will be evaluated based on their impact on working families and affordability. Several key bills already reflect this focus, addressing student loan forgiveness, tax relief on essential goods, lower utility bills, and expansion of the state child tax credit. Despite this broad affordability push, housing remains the top priority—particularly in the wake of the devastating LA wildfires, which destroyed more than 16,000 homes in a region already grappling with a severe housing shortage. 3.Brown Act Reforms: Several temporary statutes granting local officials remote meeting flexibility—enacted during emergencies—are set to expire during the 2025–26 session. While multiple bills have been introduced to extend specific provisions, Senate Local Government Committee Chair María Elena Durazo is calling for a comprehensive overhaul of the Brown Act. Her aim is to modernize local transparency laws in a cohesive and forward-looking way. 4.Wildfire Insurance Affordability and Availability: Fire insurance has emerged as a dominant issue amid widespread policy cancellations by major insurers, new fire hazard mapping, and regulatory reforms meant to stabilize the insurance market. Legislators are considering bills to make coverage more accessible, incentivize best practices in defensible space and home hardening, and provide funding for local wildfire resilience and prevention programs. 5.Proposition 36 Implementation: Following the overwhelming voter approval of Proposition 36 in the November 2024 election—which rolled back some leniencies related to serial theft under Proposition 47—lawmakers are now advancing bills to implement the new provisions. These include establishing diversion programs and services for repeat offenders, particularly those struggling with substance use or behavioral health disorders. State Budget Update Despite the fact that Governor Newsom presented a balanced budget proposal in early January, California’s fiscal picture remains in flux. Several dynamic factors are reshaping the budget conversation in real time — including federal uncertainty, unanticipated wildfire response costs, and structural pressures from previously enacted program expansions. Key Drivers of Budget Uncertainty: 1.California–DC Fiscal Dynamics: Federal action—or inaction—continues to significantly influence California’s fiscal standing. As of March, Congress has yet to finalize key appropriations or act on potential extensions of federal health and human services waivers, leaving states like California in a holding pattern. For example, delayed federal matching funds for Medicaid and housing programs are creating uncertainty in budget planning. California’s Department of Finance is closely monitoring whether anticipated federal reimbursements will materialize, particularly for behavioral health initiatives funded in prior years. 2.Impact of the LA Wildfires: The catastrophic wildfires that swept through Los Angeles in late 2024, destroying more than 16,000 structures, have had widespread fiscal ripple effects. The Governor’s Office of Emergency Services has submitted multiple requests for federal disaster aid, but reimbursement timelines remain unclear. In the interim, the Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 4  Packet Pg. 50 of 113  3 7 4 6 7 state is advancing more than $325 million in emergency wildfire response and cleanup costs, straining the General Fund. Budget writers are considering reserve fund withdrawals and potential deferrals to other programs to offset wildfire-related expenditures. 3.Overspending in Key Programs – Especially Medi-Cal: The expansion of Medi-Cal to all income-eligible Californians, regardless of immigration status, while widely applauded, has introduced steep cost overruns. The Department of Health Care Services recently revised its cost projections, estimating that Medi-Cal will run a $6.2 billion shortfall in 2025-26. The Governor’s budget proposes a mix of internal borrowing, one-time fund transfers, and an additional $2.8 billion in emergency General Fund support to stabilize the program. This comes on top of a previously approved $3.4 billion bridge loan, prompting legislators to scrutinize the sustainability of the program’s long- term growth. Updated Revenue Conditions and Legislative Response: While November personal income tax withholdings fell short by $806 million, collections rebounded in December and January, largely due to delayed stock option and bonus payments. As a result, the state is still projected to close the fiscal year with a small operating surplus, but the Legislative Analyst’s Office (LAO) continues to warn of $20–30 billion structural deficits in future years if spending patterns persist. Speaker Robert Rivas and Senate Pro Tem Mike McGuire have both emphasized the need for a "preservation-first" approach, signaling that new programs are unlikely to be funded unless offset by cuts or savings elsewhere. Both houses are also examining sunsetting or delaying previously approved initiatives that have yet to launch. Looking Ahead: •The May Revision (May Revise) of the Governor’s budget is expected to reflect updated tax filing data and incorporate adjustments for wildfire, Medi-Cal, and any finalized federal aid. •Budget subcommittees are currently reviewing every major program for cost containment opportunities. •The state’s Rainy Day Fund remains at approximately $22 billion, but lawmakers are hesitant to tap into it early in the fiscal year unless revenue forecasts worsen. While the January budget proposal struck a cautiously optimistic tone, California’s fiscal outlook is still evolving. Lawmakers face difficult choices in the months ahead as they balance long-term investments with near-term stability in the face of natural disasters, federal delays, and ballooning costs in health and human services. SB 457 (Becker) – Housing Element Compliance and Builder’s Remedy Reform On March 24, the amended language for SB 457 (Becker) was released, reflecting critical changes developed in collaboration with the City of Palo Alto and Senator Becker’s office. SB 457 seeks to uphold the intent of the Builder’s Remedy provision while preventing its misuse, and at the same time, incentivizes timely compliance with state housing element requirements. Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 5  Packet Pg. 51 of 113  4 7 4 6 7 Under current law, a jurisdiction’s housing element is not deemed compliant until formally certified by the California Department of Housing and Community Development (HCD) or a court. This creates a significant vulnerability: even if a local agency adopts a substantively compliant housing element well in advance, it remains subject to the Builder’s Remedy until HCD completes its review—often delayed due to capacity constraints. FEDERAL UPDATES Federal Appropriations Update: FY 2025 and Outlook for FY 2026 Full-Year Continuing Appropriations and Extensions Act, 2025, by a vote of 217 to 213. Subsequently, the Senate approved the measure on March 14, 2025, with a 54 to 46 vote, and President Trump signed it into law on March 15, 2025. Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 6  Packet Pg. 52 of 113  5 7 4 6 7 This legislation extends federal government funding through September 30, 2025, effectively maintaining FY 2024 funding levels via a continuing resolution (CR). Notably, the CR does not incorporate any FY 2025 Congressionally Directed Spending (CDS) projects. As a result, previously approved earmarks—including Congresswoman Eshoo’s $1.25 million request for the City of Palo Alto’s Fire Station No. 4 project—were not included in this funding package. Implications for Palo Alto’s Fire Station No. 4 Project Looking Ahead to FY 2026 GRANT FUNDING UPDATES Ongoing Advocacy Efforts Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 7  Packet Pg. 53 of 113  6 7 4 6 7 Potentially Impacted City Funding Grant Name Award Amount Project Award Year DOT – Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) $16,500,000 Pipeline and Hazardous Materials Safety Administration – Natural Gas Distribution Modernization 2024 DOT – Federal Highway Administration: Safe Streets and Roads for All (SS4A) $338,000 Safe Streets for All Action Plan: Implementation Project 2024 DOE – Energy Efficiency and Conservation Block Grant (EECBG)$141,008 Fleet Modernization: Electric Vehicle Purchase 2024 Item 3 Attachment A - Townsend Public Affairs State and Federal Legislative Updates        Item 3: Staff Report Pg. 8  Packet Pg. 54 of 113  M E M O R A N D U M To: City of Palo Alto From: Townsend Public Affairs Date: March 27, 2025 Subject: Priority Bill Matrix Building and Development Standards AB 306 (Schultz, D) Building regulations: state building standards. Status: 03/20/2025 - Read second time. Ordered to third reading. Summary: Current law establishes the Department of Housing and Community Development (department) in the Business, Consumer Services, and Housing Agency. The California Building Standards Law establishes the California Building Standards Commission (commission) within the Department of General Services. Current law requires the commission to approve and adopt building standards and to codify those standards in the California Building Standards Code (code). The State Housing Law establishes statewide construction and occupancy standards for buildings used for human habitation. Current law requires, among other things, the building standards adopted and submitted by the department for approval by the commission, as specified, to be adopted by reference, with certain exceptions. Current law authorizes any city or county to make changes in those building standards that are published in the code, including to green building standards. Current law requires the governing body of a city or county, before making modifications or changes to those green building standards, to make an express finding that those modifications or changes are reasonably necessary because of local climatic, geological, or topographical conditions. This bill would, from June 1, 2025, until June 1, 2031, inclusive, prohibit a city or county from making changes that are applicable to residential units to the above- described building standards unless a certain condition is met, including that the commission deems those changes or modifications necessary as emergency standards to protect health and safety. (Based on 03/12/2025 text) Position: Watch Community Services AB 421 (Solache, D) Immigration enforcement: prohibitions on access, sharing information, and law enforcement collaboration. Status: 03/19/2025 - In committee: Set, first hearing. Hearing canceled at the request of author. Summary: The California Values Act generally prohibits California law enforcement agencies from investigating, interrogating, detaining, detecting, or arresting persons for immigration enforcement purposes. Current law provides certain limited exceptions to this prohibition. This bill would prohibit California law enforcement agencies from collaborating with, or providing any information in writing, verbally, on in any other manner to, immigration authorities regarding proposed or currently underway immigration enforcement actions when the actions could be or are taking place within a radius of one mile of any childcare or daycare facility, religious institution, place of worship, hospital, or medical office. To Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 9  Packet Pg. 55 of 113  the extent this bill would impose additional duties on local law enforcement agencies or officials, the bill would impose a state-mandated local program. (Based on 02/05/2025 text) Position: Watch SB 456 (Ashby, D) Contractors: exemptions: muralists. Status: 03/18/2025 - Set for hearing April 7. Summary: Current law makes it a misdemeanor for a person to engage in the business, or act in the capacity, of a contractor without a license, unless exempted. Current law exempts from the Contractors State License Law, among other things, a nonprofit corporation providing assistance to an owner, as specified. This bill would exempt from that law a muralist, as defined, who produces a mural, as defined, pursuant to an agreement with a person who could legally authorize the work. (Based on 02/19/2025 text) Position: Support Energy, Utilities, and Communications AB 737 (Quirk-Silva, D) Energy: building decarbonization: notice and recordation of a decarbonization charge. Status: 03/03/2025 - Referred to Com. on U. & E. Summary: Current law requires the Public Utilities Commission, or the governing board of a local publicly owned electric utility or electrical cooperative, to require an energy supplier, defined as an electrical corporation, local publicly owned electric utility, electric service provider, community choice aggregator, or electrical cooperative, administering a decarbonization upgrade program or initiative, to record, no later than 30 days after funding a decarbonization upgrade, a notice of decarbonization charge, as defined, with the county recorder of the county where the property subject to the decarbonization charge is located, as specified. Current law requires, among other things, an energy supplier, within 30 days of full cost recovery of the outstanding charges related to the recorded notice of decarbonization charge, to record a notice of the full cost recovery and removal of the decarbonization charge with the county recorder of the county where the property subject to the decarbonization charge is located. This bill would additionally add gas corporations to the definition of “energy supplier” for purposes of the above-described provisions. (Based on 02/18/2025 text) AB 1020 (Schiavo, D) Public utilities: energy: nontraditional funding: reporting. Status: 03/11/2025 - Re-referred to Com. on U. & E. Summary: Current law requires electrical corporations and gas corporations to submit various information to the Public Utilities Commission, and requires the commission to annually report to the Legislature on, among other things, all sources and amounts of funding and actual and proposed expenditures, including any costs to ratepayers, related to entities or programs established by the commission, as specified. This bill would require each utility, defined as an investor-owned electrical corporation or gas corporation, to report certain information for any nontraditional funding, as defined, that the utility has applied for or received. The bill would require the commission, for each application in which a utility is seeking ratepayer funding, to require the utility to report all relevant nontraditional funding the utility is pursuing or has secured, and, if the commission determines that a utility is not in compliance with that requirement, the bill would authorize the commission to impose a penalty against the utility, as specified. The bill would require the commission to require each utility to promptly deliver the financial benefits of nontraditional funding to ratepayers, as provided. This bill would require the commission to provide an annual report to the Legislature with a summary of the information on nontraditional funding Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 10  Packet Pg. 56 of 113  reported by each utility, including the number of grants or loans, the source of those grants or loans, the dollar amount received, the projects funded by the grants or loans, and the demonstrated ratepayer savings. (Based on 03/10/2025 text) Position: Watch AB 1191 (Tangipa, R) California Renewables Portfolio Standard Program: hydroelectric generation. Status: 03/10/2025 - Referred to Coms. on U. & E. and NAT. RES. Summary: Current law establishes the California Renewables Portfolio Standard Program, which requires the Public Utilities Commission to implement annual procurement targets for the procurement of eligible renewable energy resources, as defined, for all retail sellers, as defined, and requires local publicly owned electric utilities to adopt and implement renewable energy resources procurement plans to achieve the targets and goals of the program. Under current law, eligible renewable energy resources include small hydroelectric generation facilities of 30 megawatts or less that meet specified criteria. This bill would revise the definition of an eligible renewable energy resource for the purposes of the California Renewables Portfolio Standard Program to include all hydroelectric generating facilities and would make conforming changes. (Based on 02/21/2025 text) Position: Watch SB 282 (Wiener, D) Residential heat pump systems: water heaters and HVAC: installations. Status: 03/24/2025 - Set for hearing April 7. Summary: Current law requires the State Energy Resources Conservation and Development Commission, on or before January 1, 2019, in consultation with the Contractors State License Board, local building officials, and other stakeholders, to approve a plan that promotes compliance with specified regulations relating to building energy efficiency standards in the installation of central air conditioning and heat pumps, as specified. Current law authorizes the commission to adopt regulations to increase compliance with permitting and inspection requirements for central air conditioning and heat pumps, and associated sales and installations, consistent with the above-described plan. This bill would require the commission, on or before January 1, 2027, to establish a statewide certification program for licensed contractors of residential heat pump water heaters and heat pump heating, ventilation, and air conditioning (HVAC) systems to obtain a heat pump installation certification, and would require the commission to create a state training program, as described, on residential heat pump water heaters and heat pump HVAC systems for purposes of the certification program, as specified. (Based on 03/17/2025 text) Position: Watch SB 540 (Becker, D) Independent System Operator: independent regional organization. Status: 03/24/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on E., U & C. Summary: Existing law provides for the establishment of an Independent System Operator (ISO) as a nonprofit public benefit corporation and requires the ISO to ensure efficient use and reliable operation of the electrical transmission grid consistent with achieving planning and operating reserve criteria no less stringent than those established by the Western Electricity Coordinating Council and the North American Electric Reliability Council. Existing law, the Clean Energy and Pollution Reduction Act of 2015, provides for the transformation of the ISO into a regional organization, with the approval of the Legislature, pursuant to a specified process. That process provides that modifications to the ISO’s governance structure, through changes to its bylaws or other corporate governance documents, will not become effective until the ISO, the Public Utilities Commission, the State Energy Resources Conservation and Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 11  Packet Pg. 57 of 113  Development Commission, the State Air Resources Board (state board), the Governor, and the Legislature take specified actions on or before January 1, 2019. This bill would delete the above- described provisions providing for the transformation of the ISO into a regional organization. The bill would authorize the ISO and the electrical corporations that are participating transmission owners whose transmission systems are operated by the ISO, in lieu of the ISO managing related energy markets, as provided, to use voluntary energy markets governed by an independent regional organization, provided that specified requirements are satisfied. (Based on 03/24/2025 text) Position: Watch SB 593 (Hurtado, D) Power surges: ratepayer notice. Status: 03/24/2025 - Set for hearing April 7. Summary: Existing law vests the Public Utilities Commission with regulatory jurisdiction over public utilities, including electrical corporations, while local publicly owned electric utilities are under the direction of their governing board. This bill would require a utility, which includes a community choice aggregator, an electrical corporation, and a local publicly owned electric utility, to develop and implement a system to notify a ratepayer of a power surge, as defined. The bill would require the notification to be transmitted within 5 minutes of detecting a power surge and to include specified information. The bill would also require a preemptive warning of a power surge, as provided, under specified circumstances. The bill would require a utility to install and maintain equipment capable of detecting power surges and to submit quarterly reports to the commission regarding power surges, as provided. The bill would require a utility to compensate a ratepayer for damages to electrical systems, appliances, or devices caused by a power surge if the power surge resulted from utility equipment failure or negligence, to process claims for compensation within 30 days of receipt, and to offer financial incentives or rebates for the installation of whole-house surge protection systems by ratepayers. This bill contains other related provisions and other existing laws. (Based on 02/20/2025 text) Position: Watch Environmental Quality AB 762 (Irwin, D) Disposable, battery-embedded vapor inhalation device: prohibition. Status: 02/19/2025 - From printer. May be heard in committee March 21. Summary: Would prohibit, beginning January 1, 2026, a person from selling, distributing, or offering for sale a new or refurbished disposable, battery-embedded vapor inhalation device in this state. The bill would define a “disposable, battery-embedded vapor inhalation device” to mean a vaporization device that is not designed or intended to be reused, as specified. (Based on 02/18/2025 text) Position: Watch AB 961 (Ávila Farías, D) Hazardous materials: California Land Reuse and Revitalization Act of 2004. Status: 03/26/2025 - From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (March 25). Re-referred to Com. on APPR. Summary: The California Land Reuse and Revitalization Act of 2004 provides, among other things, that an innocent landowner, bona fide purchaser, or contiguous property owner, as defined, qualifies for immunity from liability from certain state statutory and common laws for pollution conditions caused by a release or threatened release of a hazardous material if specified conditions are met, including entering into an agreement for a specified site assessment and response plan. The act prohibits the Department of Toxic Substances Control, the State Water Resources Control Board, and a California regional water Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 12  Packet Pg. 58 of 113  quality control board from requiring one of those persons to take a response action under certain state laws, except as specified. Existing law repeals the act on January 1, 2027. Current law provides that a person who qualifies for immunity under the act before January 1, 2027, shall continue to have that immunity on and after January 1, 2027. This bill would extend the repeal date of the act to January 1, 2037, and would provide that a person who qualifies for immunity under the act before January 1, 2037, shall continue to have that immunity on and after January 1, 2037, if the person continues to be in compliance with the requirements of the former act. (Based on 02/20/2025 text) Position: Watch SB 682 (Allen, D) Environmental health: product safety: perfluoroalkyl and polyfluoroalkyl substances. Status: 03/11/2025 - Set for hearing April 2. Summary: Current law requires the Department of Toxic Substances Control, on or before January 1, 2029, to adopt regulations to enforce specified covered perfluoroalkyl and polyfluoroalkyl substances (PFAS) restrictions, which include prohibitions on the distribution, sale, or offering for sale of certain products that contain specified levels of PFAS. Current law requires the department, on and after July 1, 2030, to enforce and ensure compliance with those provisions and regulations, as provided. Current law requires manufacturers of these products, on or before July 1, 2029, to register with the department, to pay a registration fee to the department, and to provide a statement of compliance certifying compliance with the applicable prohibitions on the use of PFAS to the department, as specified. Current law authorizes the department to test products and to rely on third-party testing to determine compliance with prohibitions on the use of PFAS, as specified. Current law requires the department to issue a notice of violation for a product in violation of the prohibitions on the use of PFAS, as provided. Current law authorizes the department to assess an administrative penalty for a violation of these prohibitions and authorizes the department to seek an injunction to restrain a person or entity from violating these prohibitions, as specified. This bill would, beginning January 1, 2027, prohibit a person from distributing, selling, or offering for sale a covered product that contain intentionally added PFAS, as defined, except for previously used products and as otherwise preempted by federal law. The bill would define “covered product” to include cleaning products, cookware, dental floss, juvenile products, food packaging, and ski wax, as specified. (Based on 02/21/2025 text) Position: Watch Governance and Transparency SB 239 (Arreguín, D) Open meetings: teleconferencing: subsidiary body. Status: 03/24/2025 - Set for hearing April 2. Summary: The Ralph M. Brown Act requires, with specified exceptions, that all meetings of a legislative body, as defined, of a local agency be open and public and that all persons be permitted to attend and participate. The act generally requires for teleconferencing that the legislative body of a local agency that elects to use teleconferencing post agendas at all teleconference locations, identify each teleconference location in the notice and agenda of the meeting or proceeding, and have each teleconference location be accessible to the public. Current law also requires that, during the teleconference, at least a quorum of the members of the legislative body participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction, except as specified. Current law, until January 1, 2026, authorizes specified neighborhood city councils to use alternate teleconferencing provisions related to notice, agenda, and public participation, as prescribed, if, among other requirements, the city council has adopted an authorizing resolution and 2/3 of the neighborhood city council votes to use alternate teleconference provisions, as specified. This bill would authorize a subsidiary body, as defined, to use alternative teleconferencing provisions and would impose requirements for notice, agenda, and public participation, as prescribed. The bill would require the subsidiary body to post the agenda at the primary physical meeting location. The bill would require the members of the subsidiary body to visibly appear on Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 13  Packet Pg. 59 of 113  camera during the open portion of a meeting that is publicly accessible via the internet or other online platform, as specified. (Based on 01/30/2025 text) Position: Watch SB 707 (Durazo, D) Open meetings: meeting and teleconference requirements. Status: 03/24/2025 - Set for hearing April 2. Summary: Would, until January 1, 2030, require a city council or a county board of supervisors to comply with additional meeting requirements, including that all open and public meetings include an opportunity for members of the public to attend via a two-way telephonic option or a two-way audiovisual platform, as defined, that a system is in place for requesting and receiving interpretation services for public meetings, as specified, and that good faith efforts are made to encourage residents to participate in public meetings, as specified. By imposing additional meeting requirements on city councils and county boards of supervisors, this bill would impose a state-mandated local program. (Based on 02/21/2025 text) Position: Watch Homelessness AB 820 (Pellerin, D) Homelessness: transport. Status: 03/10/2025 - Referred to Coms. on H. & C.D. and JUD. Summary: Current law establishes various programs to assist homeless individuals, including the Homeless Emergency Aid Program, the Homeless Housing, Assistance, and Prevention Program, and the Regionally Coordinated Homelessness Housing, Assistance, and Prevention Program. This bill would prohibit an employee of a local government or law enforcement agency, when acting in their official capacity, from transporting and dropping off, or arranging for or funding the transport and drop off, of a homeless individual within a jurisdiction unless the employee first coordinates shelter or long-term housing for the homeless individual, as defined and specified. This bill would make a local government or law enforcement agency liable for a civil penalty of $10,000 for each violation of these provisions. (Based on 02/19/2025 text) Position: Watch SB 16 (Blakespear, D) Homeless Housing, Assistance, and Prevention program: housing element: Integrated Plan for Behavioral Health Services and Outcomes. Status: 03/25/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on RLS. Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Current law requires the housing element to include, among other things, an assessment of housing needs and an inventory of resources and constraints that are relevant to meeting these needs. For a local government that does not receive funding to address the population of individuals who are unhoused pursuant to certain state programs, this bill would require the assessment to include, among other things, specified data regarding the population of individuals who are unhoused and a description of key actions that will be taken to reduce individuals who are unhoused based on the data. (Based on 03/25/2025 text) Position: Watch Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 14  Packet Pg. 60 of 113  SB 569 (Blakespear, D) Department of Transportation: homeless encampments. Status: 03/05/2025 - Referred to Com. on TRANS. Summary: The bill would require the Department of Transportation to develop a joint action plan for each district of the department in which homeless encampments are located on department property in collaboration with local governments located in the district. The bill would require the department, upon appropriation by the Legislature, to allocate funds to support collaborative efforts with local governments to address homeless encampments on department property. The bill would require the department to establish an advisory committee in each district for the purpose of providing advice on the implementation of these provisions. The bill would require the department to submit an annual report to the Legislature summarizing specified information and recommendations regarding homeless encampments on department property. (Based on 02/20/2025 text) Position: Watch SB 692 (Arreguín, D) Vehicles: homelessness. Status: 03/25/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on RLS. Summary: Current law makes it unlawful for a peace officer or an unauthorized person to remove an unattended vehicle from a highway, except as provided. Under current law, the removal of a vehicle is a seizure, subject to the limits set forth in jurisprudence for the Fourth Amendment of the United States Constitution. Current law authorizes a city, county, or city and county to adopt an ordinance establishing procedures for the abatement and removal, as public nuisances, of abandoned, wrecked, dismantled, or inoperative vehicles or parts of vehicles from private or public property. Current law requires that any ordinance for the removal of abandoned vehicles contain certain provisions, including a provision exempting vehicles under certain circumstances, and a provision providing no less than a 10-day notice of intention to abate and remove the vehicle or part thereof as a public nuisance, unless the property owner and the owner of the vehicle sign releases. Current law also exempts from the 10-day notice prior to removal provision, a vehicle meeting specified requirements, including being valued at less than $200 and being determined to be a public nuisance, if the property owner has signed a release. This bill would additionally authorize a city, county, or city and county to adopt an ordinance for the abatement and removal of vehicles formerly used as shelter by persons experiencing homelessness. The bill would require an ordinance establishing procedures for the removal of abandoned vehicles to contain a provision making the ordinance applicable to public agencies operating certain vehicle buyback programs, as specified. (Based on 03/25/2025 text) Position: Watch Housing and Land Use AB 557 (McKinnor, D) California Factory-Built Housing Law. Status: 03/25/2025 - Re-referred to Com. on H. & C.D. Summary: The California Factory-Built Housing Law requires all factory-built housing after a specified date that is sold or offered for sale to first users within the state to bear insignia of approval issued by the department, deems that housing to comply with the requirements of all ordinances or regulations enacted by any city, city and county, county, or district that may be applicable to the construction of housing, as specified, and prohibits a city, city and county, county, and district from requiring submittal of plans for any factory-built housing manufactured, or to be manufactured pursuant to these provisions, as specified. The law requires the Department of Housing and Community Development to enforce its provisions, except for in-plant inspections of the manufacture and installation of factory-built housing by local Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 15  Packet Pg. 61 of 113  enforcement or inspection agencies, as specified. Current law requires the department to provide by regulation for the qualification and disqualification of design approval agencies to perform approval of factory-built housing plans and specification and of quality assurance agencies to perform inspections of factory-built housing. Current law makes approval by these agencies the equivalent of department approval. The law requires the department to adopt rules and regulations to interpret and make specific these provisions, as specified. The law provides that any person who violates any of these provisions and other specified law is guilty of a misdemeanor, as specified. This bill would expand the application of the California Factory-Built Housing Law to include the inspection and approval of factory-built developments, defined to mean any development project that uses factory-built housing for at least 50% of the residential square footage of the project. The bill would remove the inspection and enforcement duties on local governments and would require the department to provide by regulation for the qualification and disqualification of installation inspection agencies, as defined and specified. (Based on 03/24/2025 text) Position: Watch AB 592 (Gabriel, D) Business: retail food. Status: 03/04/2025 - Re-referred to Com. on G.O. Summary: The Alcoholic Beverage Control Act requires the Department of Alcoholic Beverage Control to make and prescribe rules to carry out the purposes and intent of existing state constitutional provisions on the regulation of alcoholic beverages, and to enable the department to exercise the powers and perform the duties conferred upon it by the state constitution and the act, not inconsistent with any statute of this state. The act makes it unlawful for any person other than a licensee of the department to sell, manufacture, or import alcoholic beverages in this state, with exceptions. The department, pursuant to its powers and in furtherance of emergency declarations and orders of the Governor under the California Emergency Services Act regarding the spread of the COVID-19 virus, established prescribed temporary relief measures to suspend certain legal restrictions relating to, among other things, the expansion of a licensed footprint, sales of alcoholic beverages to-go, and delivery privileges. Current law authorizes the department, for a period of 365 days following the end of the state of emergency proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic, to permit licensees to exercise license privileges in an expanded license area authorized pursuant to a COVID-19 Temporary Catering Authorization approved in accordance with the Fourth Notice of Regulatory Relief issued by the department, as specified. Existing law makes these provisions effective only until July 1, 2026, and repeals them as of that date. This bill, instead, would make those provisions operative indefinitely and make conforming changes. (Based on 03/03/2025 text) AB 609 (Wicks, D) California Environmental Quality Act: exemption: housing development projects. Status: 03/25/2025 - Re-referred to Com. on NAT. RES. Summary: The California Environmental Quality Act (CEQA) requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA exempts from its requirements various projects, including, but not limited to, housing projects that meet certain requirements. This bill would exempt from the requirements of CEQA a housing development project, as defined, that meets certain conditions. The bill would require a local government, as a condition of approval for the development, to require the development proponent to complete a phase I environmental assessment, as provided. Because a lead agency would be required to determine whether a housing development project qualifies for this exemption, the bill would impose a state-mandated local program. (Based on 03/24/2025 text) Position: Watch AB 610 (Alvarez, D) Housing element: governmental constraints: disclosure statement. Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 16  Packet Pg. 62 of 113  Status: 03/18/2025 - In committee: Hearing postponed by committee. Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Current law requires the housing element to include an analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including, among others, locally adopted ordinances that directly impact the cost and supply of residential development. Current law also requires the analysis to demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need. This bill would require the housing element to include, in addition to the above-described analysis, a governmental constraints disclosure statement, as specified. The bill would also prohibit any new or amended governmental constraint, or a more stringent revision of a governmental constraint, from being adopted during the planning, unless, among other things, it was both (1) included in the governmental constraints disclosure statement, and (2) the local government has completed all of the housing element program commitments to eliminate or mitigate governmental constraints contained in the prior and current planning periods, or the adoption of the measure is required by state or federal law and the local government has taken specified actions. By imposing new requirements upon local governments submitting a housing element, the bill would impose a state- mandated local program. (Based on 02/13/2025 text) Position: Watch AB 628 (McKinnor, D) Hiring of real property: dwellings: untenantability. Status: 03/26/2025 - From committee: Amend, and do pass as amended. (Ayes 9. Noes 1.) (March 25). Summary: Current law requires that any building with a dwelling unit maintain certain characteristics in order to be tenantable, including the maintenance of adequate heating and hot water systems that conform to the standard of quality set by applicable law. This bill would add a stove and refrigerator that were purchased within the last 10 years and maintained in good working order to the list of characteristics required for the dwelling unit to be tenantable for leases entered into, amended, or extended on or after January 1, 2026. (Based on 02/13/2025 text) AB 660 (Wilson, D) Planning and Zoning Law: postentitlement phase permits. Status: 03/25/2025 - Re-referred to Com. on L. GOV. Summary: The Planning and Zoning Law requires a local agency, as defined, to compile one or more lists that specify in detail the information required from any applicant for a postentitlement phase permit, as defined. Current law also establishes time limits for completing reviews regarding whether an application for a postentitlement phase permit is complete and compliant, and whether to approve or deny an application. If a local agency finds that a complete application is noncompliant, current law requires the local agency to provide the applicant with a list of items that are noncompliant and a description of how the application can be remedied by the applicant within specified time limits. Current law requires the time limits to be tolled, if the local agency requires review of the application by an outside entity, until the outside entity completes the review and returns the application to the local agency, as specified. This bill would prohibit the local agency from requiring or requesting more than 2 plan check and specification reviews in connection with an application for a building permit, as part of its review. If the local agency fails to make a determination about whether housing development project applications are compliant within specified timeframes contract after the application is deemed complete, the bill would authorize the applicant to contract with or employ a licensed professional engineer or architect to check the plans and specifications for compliance with the permit standards at the applicant’s own expense. (Based on 03/24/2025 text) Position: Watch Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 17  Packet Pg. 63 of 113  AB 712 (Wicks, D) Housing reform laws: enforcement actions: fines and penalties. Status: 03/11/2025 - Re-referred to Com. on H. & C.D. Summary: Current law within the Planning and Zoning Law describes various reforms and incentives enacted by the Legislature to facilitate and expedite the construction of affordable housing. Current law within the Planning and Zoning Law, in certain civil actions or proceedings against a public entity that has issued specified approvals for a housing development, authorizes a court to award all reasonably incurred costs of suit to a prevailing public entity or nonprofit housing corporation that is a real party in interest and the permit applicant of the low- or moderate-income housing if the court makes specified findings. This bill, where the applicant for a housing development is a prevailing party in an action brought by the applicant to enforce a housing reform law against a public agency, would entitle an applicant for a housing development project to reasonable attorney’s fees and costs and would require a court to impose fines on a local agency, as specified. The bill would prohibit a public agency from requiring the applicant to indemnify, defend, or hold harmless the public agency in any action alleging the public agency violated the applicant’s rights or deprived the applicant of the benefits or protection provide by a housing reform law. (Based on 03/10/2025 text) Position: Watch AB 782 (Quirk-Silva, D) Subdivision Map Act: security. Status: 03/25/2025 - Re-referred to Com. on L. GOV. Summary: The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. The act requires prescribed security from a developer if the act or a local ordinance authorizes or requires the furnishing of security in connection with the performance of any act or agreement. This bill would prohibit a local agency from requiring the furnishing of security in connection with the performance of any act or agreement related to an improvement that will be privately owned and maintained, and from conditioning the subdivision or any approval necessary for the development or construction of the project as a whole on the furnishing of that security related to an improvement that will be privately owned and maintained. (Based on 03/24/2025 text) Position: Watch AB 818 (Ávila Farías, D) Permit Streamlining Act: local emergencies. Status: 03/10/2025 - Referred to Coms. on L. GOV. and H. & C.D. Summary: The Permit Streamlining Act requires a public agency to determine whether an application for a development project is complete within specified time periods, as specified. The act requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. The California Emergency Services Act among other things, authorizes a local emergency to be proclaimed by the governing body of a city, county, or city and county, as specified, and grants political subdivisions various powers and authorities in periods of local emergency. This bill would prohibit, during the period of a local emergency, a local agency from denying an application for a permit necessary to rebuild or repair a residential property affected by a natural disaster unless the permit would result in the property being deemed a substandard building. The bill would require the local agency to approve or disapprove that application within 45 days of receipt of the application, and would require other expedited approvals. (Based on 02/19/2025 text) Position: Watch Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 18  Packet Pg. 64 of 113  AB 893 (Fong, D) Housing development projects: objective standards: campus development zone. Status: 03/10/2025 - Referred to Coms. on H. & C.D. and L. GOV. Summary: The Affordable Housing and High Road Jobs Act of 2022, until January 1, 2033, authorizes a development proponent to submit an application for an affordable housing development or a mixed- income housing development that meets specified objective standards and affordability and site criteria, including being located within a zone where office, retail, or parking are a principally permitted use. The act makes a development that meets those objective standards and affordability and site criteria a use by right and subject to one of 2 streamlined, ministerial review processes depending on, among other things, the affordability requirements applicable to the project. The act requires the Department of Housing and Community Development to undertake at least 2 studies, one completed on or before January 1, 2027, and one completed on or before January 1, 2031, on the outcomes of the act. This bill would expand the eligibility for the above-described streamlined, ministerial approval to include developments located in a campus development zone, as defined, as long as the development meets certain affordability requirements and objective standards, as provided. (Based on 02/19/2025 text) Position: Watch AB 1007 (Rubio, Blanca, D) Land use: development project review. Status: 03/25/2025 - Re-referred to Com. on L. GOV. Summary: The Permit Streamlining Act requires a public agency that is the lead agency for a development project to approve or disapprove a development project within specified time periods. The act requires a public agency, other than the California Coastal Commission, that is a responsible agency for specified development projects to approve or disapprove the project within 90 days of the date on which the lead agency has approved the project or within 90 days of the date on which the completed application has been received and accepted as complete by the lead agency, whichever is longer. This bill would reduce the time period that a responsible agency is required to approve or disapprove a project, as described above, from 90 days to 45 days. By increasing the duties of local officials, this bill would impose a state-mandated local program. (Based on 03/24/2025 text) Position: Watch AB 1050 (Schultz, D) Unlawfully restrictive covenants: housing developments: reciprocal easement agreements. Status: 03/26/2025 - From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (March 25). Summary: Current law provides that specified recorded covenants, conditions, restrictions, or private limits on the use of land contained in specified instruments affecting the transfer or sale of any interest in real property are not enforceable against the owner of an affordable housing development, as defined, if an approved restrictive covenant affordable housing modification document has been recorded in the public record, as provided. As part of this process, current law requires the owner to submit to the county recorder a copy of the original restrictive covenant and any documents the owner believes necessary to establish that the property qualifies as an affordable housing development and requires the county counsel to determine, among other things, if the property qualifies as an affordable housing development and if a modification document may be recorded. Current law provides that these provisions do not authorize any development that is not otherwise consistent with local general plans, zoning ordinances, and any applicable specific plan. This bill would extend those provisions to any housing development that is owned or controlled by an entity or individual that has submitted a development project application to redevelop an existing commercial property that includes residential uses permitted by state housing laws or local land use and zoning regulations and would make various conforming changes. (Based on 03/13/2025 text) Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 19  Packet Pg. 65 of 113  Position: Watch AB 1206 (Harabedian, D) Single-family and multifamily housing units: preapproved plans. Status: 03/26/2025 - From committee: Amend, and do pass as amended and re-refer to Com. on L. GOV. (Ayes 11. Noes 0.) (March 26). Summary: The Planning and Zoning Law provides for the adoption and administration of zoning laws, ordinances, rules and regulations by counties and cities and the implementation of those general plans as may be in effect in those counties or cities. In that regard, current law requires each local agency, by January 1, 2025, to develop a program for the preapproval of accessory dwelling unit plans. This bill would require each local agency, by January 1, 2026, to develop a program for the preapproval of single- family and multifamily residential housing plans, whereby the local agency accepts single-family and multifamily plan submissions for preapproval and approves or denies the preapproval applications, as specified. The bill would authorize a local agency to charge a fee to an applicant for the preapproval of a single-family or multifamily residential housing plan, as specified. The bill would require the local agency to post preapproved single-family or multifamily residential housing plans and the contact information of the applicant on the local agency’s internet website. The bill would require a local agency to either approve or deny an application for a single-family or multifamily residential housing unit within 30 days that utilizes either a single-family or multifamily residential housing unit plan preapproved within the current triennial California Building Standards Code rulemaking cycle or a plan that is identical to a plan used in an application for a single-family or multifamily residential housing unit approved by the local agency within the current triennial California Building Standards Code rulemaking cycle. (Based on 02/21/2025 text) Position: Watch AB 1276 (Carrillo, D) Housing developments: ordinances, policies, and standards. Status: 03/25/2025 - Re-referred to Com. on H. & C.D. Summary: The Housing Accountability Act, which is part of the Planning and Zoning Law, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project, as defined for purposes of the act, for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes specified written findings based on a preponderance of the evidence in the record. That act states that it shall not be construed to prohibit a local agency from requiring a housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction’s share of the regional housing need, except as provided. The act further provides that for its purposes, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project or emergency shelter is consistent, compliant, or in conformity. The act requires a housing development project to be subject only to the ordinances, policies, and standards adopted and in effect when a preliminary application, as specified, was submitted, except as otherwise provided. The act defines “ordinances, policies, and standards” to include general plan, community plan, specific plan, zoning, design review standards and criteria, subdivision standards and criteria, and any other rules, regulations, requirements, and policies of a local agency, as defined, including those relating to development impact fees, capacity or connection fees or charges, permit or processing fees, and other exactions. This bill would include in the definition of “ordinances, policies, and standards” materials requirements, postentitlement permit standards, and any rules, regulations, determinations, and other requirements adopted or implemented by other public agencies, as defined. (Based on 03/24/2025 text) Position: Watch AB 1294 (Haney, D) Planning and zoning: housing development: standardized application form. Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 20  Packet Pg. 66 of 113  Status: 03/18/2025 - Re-referred to Com. on H. & C.D. Summary: The Permit Streamlining Act, among other things, requires each public agency to provide a development project applicant with a list that specifies the information that will be required from any applicant for a development project. The act requires a public agency that has received an application for a development project to determine in writing whether the application is complete within 30 calendar days and to immediately transmit the determination to the applicant of the development project. This bill would require that an application for a housing entitlement, as defined, be deemed complete upon payment of the permit processing fees and upon providing specified information, including, among other things, the information required in the above-described list provided by the public agency. The bill would require the Department of Housing and Community Development to adopt a standardized application form that applicants for a housing entitlement may use for the purpose of satisfying these requirements and would require a city, county, or city and county to accept an application submitted on the standardized application form. The bill would prohibit the city, county, or city and county from requiring submission of any other forms, beside the standardized application form, except as specified. This bill would prohibit a city, county, or city and county from requiring certain information or approvals, including, among others, any requirement for preapplication submissions, approvals, reviews, meetings, consultations, public outreach notices, or any other preapplication requirements, as a condition of determining that an application for a housing entitlement is complete. The bill would prohibit a city, county, or city and county from imposing a penalty or an additional fee, processing requirement, or submittal requirement as a consequence of an applicant using the standardized application form. (Based on 03/17/2025 text) Position: Watch AB 1308 (Hoover, R) Residential building permits: fees: inspections. Status: 03/25/2025 - Re-referred to Com. on L. GOV. Summary: Current law authorizes a county’s or city’s governing body to prescribe fees for permits, certificates, or other forms or documents required or authorized under the State Housing Law. Current law entitles a permittee to reimbursement of the permit fees if the county or city fails to conduct an inspection of the permitted work for which the permit fees have been charged within 60 days of receiving notice of completion of the permitted work. This bill would require a county’s or city’s building department to prepare a residential building permit fee schedule and post the schedule on the county’s or city’s internet website, if the county or city prescribes residential building permit fees. The bill would instead entitle a permittee to reimbursement of the permit fees if the county or city fails to conduct an inspection of the permitted work within 30 days of receiving the notice. (Based on 03/24/2025 text) Position: Watch SB 79 (Wiener, D) Planning and zoning: housing development: transit-oriented development. Status: 03/12/2025 - Re-referred to Coms. on HOUSING and L. GOV. Summary: Current law prescribes requirements for the disposal of surplus land by a local agency. Existing law defines “surplus land” for these purposes to mean land owned in fee simple by any local agency for which the local agency’s governing body takes formal action declaring that the land is surplus and is not necessary for the agency’s use. Current law defines “agency’s use” for these purposes to include land that is being used for agency work or operations, as provided. Current law exempts from this definition of “agency’s use” certain commercial or industrial uses, except that in the case of a local agency that is a district, except a local agency whose primary purpose or mission is to supply the public with a transportation system, “agency’s use” may include commercial or industrial uses or activities, as specified. This bill would additionally include land leased to support public transit operations in the definition of “agency’s use,” as described above. (Based on 03/05/2025 text) Position: Watch Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 21  Packet Pg. 67 of 113  SB 328 (Grayson, D) Hazardous waste generator permits: housing development projects. Status: 03/26/2025 - Re-referred to Coms. on E.Q. and REV. & TAX. Summary: The hazardous waste control laws require the Department of Toxic Substances Control to regulate the handling and management of hazardous waste and hazardous materials. Current law, as part of the hazardous waste control laws, requires a facility handling hazardous waste to obtain a hazardous waste facilities permit from the Department of Toxic Substances Control. This bill would establish time limits for completing reviews to determine whether an application for a postentitlement phase permit, as defined, is complete and compliant, and whether to approve or deny an application, as specified. (Based on 03/17/2025 text) Position: Watch SB 436 (Wahab, D) Unlawful detainer: right to redeem tenancy. Status: 02/26/2025 - Referred to Com. on JUD. Summary: Current law prescribes summary procedures for actions to obtain possession of real property. Current law authorizes a landlord to serve a notice of termination of tenancy on a tenant who is in default in the payment of rent. The notice must permit the tenant at least 3 days, excluding weekends and judicial holidays, to pay the amount that is in default and due. If the tenant does not pay the amount stated in the 3-day notice to pay rent or quit after its expiration, the landlord may file a complaint for unlawful detainer against the tenant to obtain possession of the premises. In such a summary proceeding, the court has discretion to relieve a tenant against forfeiture of their lease or rental agreement and restore the tenant to their former estate or tenancy. To seek such discretionary relief, the tenant must, among other things, make a showing of hardship and pay the full amount of rent due. This bill would require a court presiding over an unlawful detainer action to restore a residential tenant to their former estate or tenancy if the tenant: (1) pays the full amount of rent in arrears, as specified, or (2) submits documentation of approval for rental assistance funds in an amount that would cover the full amount of rent in arrears. The bill would not require a tenant to make a showing of hardship to obtain this relief. The bill would allow a residential tenant seeking this relief to tender payment or submit required documentation to the landlord, the landlord’s designated agent, or the court. If the tenant tenders such payment or submits required documentation before entry of judgment, the bill would require the plaintiff to request dismissal of the action against the tenant with prejudice. If the plaintiff fails to do so, the bill would require the court to dismiss the action upon receiving evidence that the tenant tendered such payment or submitted the required documentation. If the tenant tenders payment or submits required documentation after entry of judgment, but before restoration of the premises to the landlord, the bill would require the court to relieve the tenant against forfeiture of the lease according to specified procedures, set aside the judgment against all defendants in the action, and restore the tenant to their former estate or tenancy. (Based on 02/18/2025 text) Position: Watch SB 457 (Becker, D) Housing element compliance: Housing Accountability Act: housing disapprovals. Status: 03/24/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on HOUSING. Summary: The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Existing law, commonly referred to as the housing element law, prescribes requirements for a city’s or county’s preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 22  Packet Pg. 68 of 113  with the housing element law, as specified. Existing law within the Planning and Zoning Law, the Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate-income households or an emergency shelter unless the local agency makes written findings, based on a preponderance of the evidence, that one of 6 specified conditions exist. Among these conditions, the act allows a local agency to disapprove a housing development project that is inconsistent with the jurisdiction’s zoning ordinances and general plan land use designation as it existed on the date the application was deemed complete, if the jurisdiction has adopted a revised housing element that is in substantial compliance with the housing element law, as specified. The act defines “deemed complete” for purposes of its provisions, until January 1, 2030, to mean that the applicant has submitted a preliminary application, as specified, or if the applicant has not submitted a preliminary application, the submission of a completed application, as specified. This bill, for the purpose of allowing a local agency to disapprove a housing development project that is inconsistent with the jurisdiction’s zoning ordinances and general plan land use designation, as described above, would revise the definition of “deemed complete” to mean that the applicant submitted a complete application, as specified. The bill would provide that this definition would apply to an application that as of January 1, 2026 has not (1) received approval from a local agency or (2) incurred substantial liability in good faith reliance upon the local agency approval. Existing law provides that a housing element or amendment is considered substantially compliant with the housing element law when the local agency adopts a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the department’s compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the court’s decision has not been overturned or superseded by a subsequent court decision or by statute, as applicable. This bill would, instead, provide that a housing element or amendment is considered substantially compliant with the housing element law on the date when the governing body of a local agency adopts the housing element or amendment, provided that after the date the housing element or amendment is adopted and without further action by the governing body, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the housing element law, and the department’s compliance findings are not superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the court’s decision is not overturned or superseded by a subsequent court decision or by statute. (Based on 03/24/2025 text) Position: Consider Sponsor SB 489 (Arreguín, D) Permit Streamlining Act: housing development projects. Status: 03/25/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on RLS. Summary: The Permit Streamlining Act requires a public agency to compile a list of the information required from an applicant for a development project, as provided, and, until January 1, 2030, specifies that a development project for purposes of this requirement includes a housing development project, as defined. The act defines various terms for its purposes, including, among others, a “development project,” which is generally defined as any project undertaken for the purpose of development. This bill, until January 1, 2030, would require a public agency, for each approval issued in connection with a housing development project, to publish online the above-described list, including the criteria that the public agency will apply in order to determine the completeness of the development application and the name of the approval, as provided. The bill would revise the definition of “housing development project” for these purposes. (Based on 03/25/2025 text) Position: Watch SB 607 (Wiener, D) California Environmental Quality Act: categorical exemptions: infill projects. Status: 03/24/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on E.Q. Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 23  Packet Pg. 69 of 113  Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. Existing law defines “negative declaration” and “mitigated negative declaration” for these purposes.This bill would revise the definition of negative declaration to mean a written statement briefly describing the substantial evidence in the record that the proposed project will not have a significant effect on the environment, as specified. The bill would also revise the definition of mitigated negative declaration to mean that revisions would avoid or mitigate the effects on the environment, as determined by the public agency based upon substantial evidence in the record, as specified, and that there is substantial evidence that the project as revised will not have a significant effect on the environment, as provided. (Based on 03/24/2025 text) Position: Watch SB 677 (Wiener, D) Housing development: streamlined approvals. Status: 03/05/2025 - Referred to Coms. on HOUSING and L. GOV. Summary: (1)Existing law, the Planning and Zoning Law, requires a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements. This bill would require ministerial approval for proposed housing developments containing no more than 2 residential units on any lot hosting a single-family home or zoned for 4 or fewer residential units, notwithstanding any covenant, condition, or restriction imposed by a common interest development association. This bill contains other related provisions and other existing laws. (Based on 02/21/2025 text) Position: Watch SB 786 (Arreguín, D) Planning and zoning: general plan: judicial challenges. Status: 03/25/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on RLS. Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long- term general plan for the physical development of the county or city, and of certain land outside its boundaries, and requires the general plan to contain specified mandatory elements. Current law specifies that these provisions generally do not apply to a charter city, but requires a charter city to adopt a general plan that contains the mandatory elements, among other things. Current law prescribes a process to challenge the validity of a general plan. Among other things, existing law requires a petitioner to request a hearing or trial, as specified. Current law requires a court to set a date for the hearing or trial to be heard no later than 120 days after the filing of the request, as specified. Current law authorizes a court to continue for a reasonable time the date of the hearing or trial upon written motion and finding of good cause. Current law requires a court to grant the petitioner temporary relief if the court grants a continuance to a respondent, as specified. This bill would apply to the above-described process to challenge the validity of a general plan to a charter city and state that this is declaratory of existing law. The bill would limit the period for which a court may continue a trial or hearing, as described above, to no more than 60 days and would additionally authorize a court to grant a continuance on the court’s own motion. (Based on 03/25/2025 text) Position: Watch Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 24  Packet Pg. 70 of 113  Revenue and Taxation SB 346 (Durazo, D) Local agencies: transient occupancy taxes: short-term rental facilitator. Status: 03/20/2025 - Read second time and amended. Re-referred to Com. on JUD. Summary: Current law authorizes a local authority, by ordinance or resolution, to regulate the occupancy of a room or rooms, or other living space, in a hotel, inn, tourist home or house, motel, or other lodging for a period of less than 30 days. This bill would authorize a local agency, defined to mean a city, county, or city and county, to enact an ordinance to require a short-term rental facilitator, as defined, to report, in the form and manner prescribed by the local agency, the assessor parcel number of each short- term rental, as defined, during the reporting period, as well as any additional information necessary to identify the property as may be required by the local agency. The bill would authorize the local agency to impose an administrative fine or penalty for failure to file the report, and would authorize the local agency to initiate an audit of a short-term rental facilitator, as described. The bill would require a short-term rental facilitator, in a jurisdiction that has adopted an ordinance, to include in the listing of a short-term rental any applicable local license number associated with the short-term rental and any transient occupancy tax certification issued by a local agency. (Based on 03/20/2025 text) Position: Watch SB 549 (Allen, D) Second Neighborhood Infill Finance and Transit Improvements Act. Status: 03/24/2025 - Set for hearing May 7. Summary: Current law authorizes the infrastructure financing plan to provide for the division of taxes levied on taxable property in the area included within the district, as specified, and authorizes the public financing authority to issue bonds by adopting a resolution containing specified provisions, including a determination of the amount of tax revenue available or estimated to be available for the payment of the principal of, and interest on, the bonds. This bill would revise NIFTI-2 to instead authorize, for resolutions adopted under that act’s provisions on or after January 1, 2026, a city, county, or city and county to adopt a resolution, at any time before or after the adoption of the infrastructure financing plan for an enhanced infrastructure financing district, to allocate property tax revenues, and to remove the authorization for adoption of a resolution that allocates revenues derived from local sales and use taxes imposed pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or transactions and use taxes. The bill would also repeal the condition that the boundaries of the enhanced infrastructure financing district are coterminous with the city or county that established the district. (Based on 02/20/2025 text) Position: Watch Transportation, Infrastructure, and Public Works AB 1340 (Wicks, D) Metropolitan Transportation Commission: duties. Status: 03/13/2025 - Referred to Com. on TRANS. Summary: The Metropolitan Transportation Commission Act establishes the Metropolitan Transportation Commission to provide comprehensive regional transportation planning for the San Francisco Bay area, as provided. Existing law requires the commission to establish a regional transit coordinating council to better coordinate routes, schedules, fares, and transfers among the San Francisco Bay area transit operators and to explore potential advantages of joint ventures in certain areas. The act authorizes the commission, in consultation with the regional transit coordinating council, to identify functions performed by individual public transit systems that could be consolidated to improve the efficiency of regional transit service, and recommend that those functions be consolidated and performed through inter-operator agreements or as services contracted to a single entity. This bill would require the commission to consult Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 25  Packet Pg. 71 of 113  with the general manager from each transit operator, instead of the regional transit coordinating council, when identifying functions that could be consolidated and recommending their consolidation, as described above. To the extent that this bill would impose additional duties on transit operators, it would impose a state-mandated local program. This bill contains other related provisions and other existing laws. (Based on 02/21/2025 text) Position: Watch SB 63 (Wiener, D) San Francisco Bay area: local revenue measure: transportation funding. Status: 03/25/2025 - From committee with author's amendments. Read second time and amended. Re- referred to Com. on RLS. Summary: Would establish the Transportation Revenue Measure District with jurisdiction extending throughout the boundaries of the Counties of Alameda and Contra Costa and the City and County of San Francisco and would require the district to be governed by the same board that governs the Metropolitan Transportation Commission, thereby imposing a state-mandated local program. The bill would authorize a retail transactions and use tax applicable to the entire district to be imposed by the board of the district or by a qualified voter initiative for a duration of 10 to 15 years, inclusive, and generally in an amount of 0.5%, subject to voter approval at the November 3, 2026, statewide general election. After allocations are made for various administrative expenses, the bill would require an unspecified portion of the proceeds of the tax to be allocated by the commission to initiatives included in a specified commission plan and to the Alameda-Contra Costa Transit District, the Peninsula Rail Transit District, commonly known as Caltrain, the San Francisco Bay Area Rapid Transit District, and the San Francisco Municipal Transportation Agency for operating expenses, and would require the remaining proceeds to be subvened directly to the counties comprising the district for public transportation expenses, as prescribed. (Based on 03/25/2025 text) Position: Watch SB 71 (Wiener, D) California Environmental Quality Act: exemptions: transit projects. Status: 03/25/2025 - Read second time and amended. Re-referred to Com. on TRANS. Summary: The California Environmental Quality Act (CEQA) until January 1, 2030, exempts from its requirements active transportation plans, pedestrian plans, or bicycle transportation plans for the restriping of streets and highways, bicycle parking and storage, signal timing to improve street and highway intersection operations, and the related signage for bicycles, pedestrians, and vehicles. This bill would extend the operation of the above-mentioned exemption indefinitely. The bill would also exempt a transit comprehensive operational analysis, as defined, a transit route readjustment, or other transit agency route addition, elimination, or modification, from the requirements of CEQA. Because a lead agency would be required to determine whether a plan qualifies for this exemption, the bill would impose a state-mandated local program. (Based on 03/25/2025 text) Position: Watch SB 445 (Wiener, D) Sustainable Transportation Project Permits and Cooperative Agreements. Status: 02/26/2025 - Referred to Coms. on TRANS. and L. GOV. Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 26  Packet Pg. 72 of 113  evidence that the project, as revised, would have a significant effect on the environment. CEQA, until January 1, 2030, exempts from its requirements certain transportation-related projects if specified requirements are met. CEQA includes within these exempt transportation-related projects a public project for the institution or increase of bus rapid transit, bus, or light rail service, which will be exclusively used by low-emission or zero-emission vehicles, on existing public rights-of-way or existing highway rights-of- way. This bill would require a lead agency to provide a written notice with specified information to a third- party entity, defined by the bill to mean a local agency, electrical corporation, or private telecommunications provider, regarding its need to use, relocate, alter, change, or otherwise improve facilities, publicly owned and managed utilities, public spaces, or other publicly or privately owned facilities under the third-party entity’s jurisdiction or ownership for the implementation of a sustainable transportation project. This bill would define “sustainable transportation project” to mean a project where the lead agency is a state agency, operator, or local agency that proposes the construction or modification of facilities meeting at least one of several specified criteria, including that it is exempt from CEQA pursuant to the above-described provisions. (Based on 02/18/2025 text) Position: Watch Total Measures: 48 Total Tracking Forms: 48 Item 3 Attachment B - City of Palo Alto Priority Bill Matrix        Item 3: Staff Report Pg. 27  Packet Pg. 73 of 113  Policy & Services Committee Staff Report From: City Clerk Report Type: ACTION ITEMS Lead Department: City Clerk Meeting Date: April 8, 2025 Report #:2503-4347 TITLE Establish a City Council Interview Selection Process for Boards, Commissions, and Committees RECOMMENDATION Staff recommends the Policy & Services Committee review and recommend City Council approval of a standardized selection process for determining which candidates will be invited for interviews during Boards, Commissions, and Committees (BCC) recruitments. BACKGROUND On March 10, 2025, City Council directed staff to present to Policy and Services Committee options for an updated interview selection process for the BCC recruitments. The previously established method, adopted on February 26, 2024, allowed each Councilmember a limited number of votes (equal to the number of vacancies plus 50%, rounded up), with a minimum of two votes required for a candidate to qualify for an interview. However, variations in the number of applicants and adjustments to the recruitment schedule have led to City Council using different methods in recent recruitments. For example: •In the Parks and Recreation Special Recruitment, six applicants applied for one vacancy, and City Council chose to interview all six.1 •In the Planning and Transportation Special Recruitment, nineteen applicants applied for three vacancies. The previous policy was applied initially, but City Council opted to interview all candidates who received at least one vote rather than adhering to the original two-vote threshold.2 1 City Council, October 21, 2024; Agenda Item #1 Summary Minutes, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=43198 2 City Council, January 25, 2025; Agenda Item #1 Summary Minutes, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=43228 Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 1  Packet Pg. 74 of 113  Given these inconsistencies, Councilmembers have expressed the desire for a clearer and more structured selection process that allows City Council to review qualified candidates, provides a reasonable amount of time to conduct the interviews, and lets applicants know what to expect. Staff is seeking the Committee’s input and direction on methods to approaching vacancies that receive both a small and large number of applicants. ANALYSIS Option 1: Adjusted Voting-Based Selection •Each Councilmember is allocated a limited number of votes (equal to the number of vacancies plus 50%, rounded up). •Candidates must receive at least two votes to qualify for an interview. •This approach ensures a manageable interview process while allowing each Councilmember input and maintaining transparency. Option 2: Automatic Interviews for Small Applicant Pools •If the total number of applicants is twice the number of vacancies or fewer, all qualified candidates will be invited for interviews. •A special meeting may be scheduled to accommodate additional interviews if necessary. •This method ensures inclusivity in cases with a limited pool of candidates. Option 3: Lowered Voting Threshold for Large Applicant Pools •If the number of applicants exceeds twice the number of vacancies, each Councilmember selects up to two preferred candidates. •Candidates must receive at least one vote to qualify for an interview. •This allows for a focused selection process while ensuring fair representation of Councilmembers’ preferences. Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 2  Packet Pg. 75 of 113  Option 4: Proportional Voting Approaches •Councilmembers are allocated a specific number of votes equal to half the total number of applicants. The applicants who receive at least one (1) vote will continue to the Interview phase. •This ensures a balanced selection process that scales with the size of the applicant pool, allowing for fair consideration of all candidates while limiting excessive interviews. Additional Considerations to Consider for Enhancing the Selection Process •Scoring System Implementation: Councilmembers could evaluate applicants using a standardized scoring rubric, assessing factors such as experience, community involvement, and alignment with BCC goals. The highest-scoring candidates would proceed to the interview stage. •Preliminary Screening Panel: A subcommittee or staff panel could review applications to recommend a shortlist of qualified candidates, which would then be reviewed and finalized by the full City Council. •Weighted Voting System: Instead of a fixed number of votes, Councilmembers could assign weight to their votes (e.g., ranking their top three candidates). •Hybrid Approach: A combination of methods, such as automatic interviews for smaller pools and a voting-based system for larger pools, could provide flexibility while maintaining consistency. The Committee can also consider an additional provision to be included with the recommendation that states that in the case that the adopted method yields an anomalous result, it will be at the discretion of a particular individual or group (e.g., the Mayor, the Policy and Services Committee, or the City Council) to provide an alternative approach in that particular scenario. The recommendations and actions taken in this report will not impact the City of a fiscal basis; however, they may impact available staff resources to implement the recommended actions. City Council action on this item is not a project as defined by CEQA because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). : Mahealani Ah Yun, City Clerk Item 4 Item 4 Staff Report        Item 4: Staff Report Pg. 3  Packet Pg. 76 of 113  Policy & Services Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Auditor Meeting Date: April 8, 2025 Report #:2410-3635 TITLE Receive Update on City of Palo Alto Emergency Preparedness for Wildfires and Recommend City Council Approval of the Emergency Preparedness: Wildfire Audit Report by the City Auditor – Late Packet Report RECOMMENDATION Staff recommend that the Policy & Services Committee: Receive an update regarding wildfire preparedness for City operations and receive and recommend City Council approve the BakerTilly Emergency Preparedness: Wildfire Audit Report. EXECUTIVE SUMMARY Palo Alto, like many communities in California, faces increasing wildfire risks due to climate change, prolonged drought, and human activity in the wildland-urban interface (WUI), and this report is one item in a series of a series of public engagement and public meetings to raise awareness of local wildfire risks and the importance of wildfire preparedness. This report provides a summary of recent wildfire preparedness activities underway and new items such as the newly released wildfire maps released by the California Fire Marshal and transmits an audit on wildfire preparedness completed by BakerTilly, the City’s Auditor. The findings of an independent audit conducted by BakerTilly reviewed the current wildfire protection plans implemented by the City and evaluated their effectiveness in mitigating wildfire risks and ensuring adequate emergency response. The audit identified areas for improvement in evacuation planning and enhancing community engagement. This report recommends that the Committee recommend the City Council approve the audit and recommendations within. BACKGROUND In response to increasing wildfire risks, the City has developed various wildfire protection plans and strategies and takes a regional approach to planning efforts. Coordination and alignment with County and State agencies is key to ensuring responsible agencies can work together in an emergency. Mutual aid agreements with neighboring jurisdictions to enhance firefighting Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 1  Packet Pg. 77 of 113  capabilities during large-scale incidents are critical to incident response as no single agency has the resources to respond to a wildfire incident independently. •Emergency Operations Plan Basic Plan (EOP) o Emergency Operations Center Manual (EOC) •Wildland Urban Interface (WUI) Fire Response •Local Hazard Mitigation Plan (LHMP) •Foothills Fire Management Plan (FFMP) •CPAU Wildfire Mitigation Plan •Santa Clara County Community Wildfire Protection Plan (CWPP) ANALYSIS Wildfire Preparedness Activities Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 2  Packet Pg. 78 of 113  Foothills Fire Management Plan & Community Wildfire Protection Plan, respectively. Below outlines recent wildfire preparedness activities recently completed or under way organized by •preparation and planning, •multijurisdictional initiatives, and •mitigation and prevention efforts. Local Hazard Mitigation Plan (LHMP) & Santa Clara County Multi-Jurisdictional Hazard Mitigation Plan (MJHMP): Office of Emergency Services (OES) with the County updated emergency plans, including the Palo Alto LHMP. The Santa Clara County MJHMP, Volume I and the associated Jurisdictional Annexes, Volume II, was approved by the State and by FEMA and City Council adopted Volume I and The Palo Alto Annex to Volume II on October 7, 2024 in alignment with the Council 2024 priority objective. Emergency Operations Plan (EOP): The City’s Emergency Operations Plan (EOP) is currently undergoing a review and update process including community engagement and feedback. This process ensures the City has the planning, policies, and concept of operations to guide responsibilities for emergency preparedness, prevention, response, recovery, and mitigation for the City of Palo Alto. Local Responsibility Area Hazard Severity Zone Maps: To better prepare for wildfires, the California Department of Forestry and Fire Protection (CAL FIRE) is required to classify the severity of fire hazard in areas throughout California. In response, the State is releasing Fire Hazard Severity Zone (FHSZ) maps in phases and released Palo Alto’s maps at the end of February. Portions of Palo Alto, generally west of Junipero Serra Blvd/Foothill Expressway have been identified as moderate, and areas in the Palo Alto Hills as high or very high Fire Hazard Severity Zones. The maps are like flood zone maps, noting factors such as fire history, existing and potential fuel (natural vegetation), terrain and weather patterns. 1, and the maps will tentatively be brought forward to the City Council for approval on June 2, 2025. 1 State Fire Hazard Maps Released for Public Comment: https://www.cityofpaloalto.org/News-Articles/City- Manager/Palo-Alto-Begins-Wildfire-Preparedness-Public-Discussions Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 3  Packet Pg. 79 of 113  Management Plan efforts, Local Hazard Mitigation planning, Comprehensive Plan programs and policies, and community education to reduce personal exposure and risk. The Electric Utility Engineering will be evaluating grid hardening measures in the expanded zones including the alternative to move the overhead electric lines undergrounding to mitigate wildfire risk. Utilities Wildfire Mitigation Plan 2025 Update: Annually, staff work to review and update the Palo Alto Utilities Wildfire Mitigation Plan and present it to the Utilities Advisory Commission for approval, currently expected by the end of FY 2025. This plan, in compliance with Public Utilities Code section 8387, describes how the utility is to maintain and operate electrical lines and equipment to mitigate wildfire risk posed by electric lines and equipment. The City strives to ensure that its infrastructure is safe and resilient by taking proactive actions to maintain its equipment, refine the existing Public Safety Power Shutoff (PSPS) protocols as needed, and underground the electric lines in the only high fire threat area. As part of the Wildfire Mitigation Plan 2025 Update, Palo Alto Utilities will be expanding the Public Safety Power Shutoff Communications to customers that fall within the expanded State Fire Marshall’s Fire Hazard Severity Zones. Regional Training: In June 2024, the Palo Alto Fire Department teamed up with Mountain View Fire, San Jose Fire, Santa Clara County Fire, and Alameda Fire agencies for an annual Wildland Safety Drill at Foothills Nature Preserve. This drill was all about sharpening skills in operational efficiency, communication, safety procedures, and resource familiarization, especially in the event where mutual aid is needed. This type of practice is vital to ensure that our teams are ready to seamlessly support each other. Efforts are already underway for a Santa Clara county- wide wildland training in May 2025. Santa Clara County FireSafe Council: Staff is pursuing a service agreement to perform the schedule of required treatments each year in conjunction with some educational support. The Fire Department and OES are in the process of evaluating certain remote fire detection equipment in cooperation with the FireSafe Council and local partner agencies as well. Tabletop Exercise: Staff are working to support efforts by the Santa Clara District - Division of Drinking Water of the State Water Resources Control Board (SWRCB) to perform a tabletop exercise of the water utility prior to the 2025 wildfire season. Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 4  Packet Pg. 80 of 113  Prevention Efforts: Fuel Reduction Activities: The City is contracting with the Santa Clara County FireSafe Council to perform fuel reduction along Page Mill Road and Arastradero Road in 2024 and pursuing a multi-year contract for broader fuel reduction work over a 3-5 year time horizon. Additionally, the Public Works department completed fuel reduction work prescribed in the FFMP for Los Trancos Road in May 2024 and the Community Services Department is performing the annual treatments2 in Arastradero and Foothills Nature Preserves. Staff expects to request additional capital funding in FY 2026 to continue to address eucalyptus tree fuel reduction. Installed Sensor Technology: Twelve N5 Sensors3 were installed in the Foothills to detect the earliest stages of wildland fire, as well as track fire movement, smoke and monitor hazardous air quality. PAFD and OES are collaborating with the Santa Clara County FireSafe Council, Woodside Fire Protection District, Stanford University and the Department of Homeland Security to install a total of 50 sensors in the wildland urban interface areas in Palo Alto, Stanford and Woodside Fire District. Utility Systems (electricity & water) Hardening & Backup: Hardening of the electric system in the WUI may include but is not limited to replacing overhead lines with underground cables and upgrading equipment to improve reliability. Both the significant investment in modernizing the electricity grid and undergrounding the electricity transmission line in the foothills are significant infrastructure adaptations to harden the system to wildfire risks. An easement for continuing to underground the transmission line in the foothills is expected to return to Council in June 2025 after approval by Mid-Peninsula Open Space Agency. Two new portable diesel backup generators were purchased in January 2025 for the Park and Dahl Foothill Booster Water Pump Stations ensuring there are now portable generators at all five Foothill Booster Water Pump Stations. Summary and Response to the Emergency Preparedness – Wildfire Audit 2 Treatments refers to reduction in fuel, or vegetation and other combustible materials, and the management of the fuel through strategies such as mowing, clearing, or even animal grazing to reduce the fuel available. 3 Wildfire Sensors: https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire-READY-SET- GO/Wildfire-Sensors Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 5  Packet Pg. 81 of 113  independent assessment of the City's wildfire preparedness, BakerTilly conducted an audit in alignment with its 2024 Risk Assessment and subsequent Council approved workplan. NEXT STEPS Month Activity March •California Fire Marshal updated wildfire risk maps for public comment (released on City webpage 3/26) April •Finance Committee review Fire Department Staffing Options on April 14, continuing discussion from November 2024 exploring changes to enhance fire and ambulance service delivery. •Policy & Services review of Emergency Preparedness - Wildfire Audit on April 8. •State Fire Hazard Map public comment period is now open through April 26. Council will consider adoption of an ordinance incorporating map designations tentatively on June 2. May •Utilities Advisory Commission will review the 2025 Utilities Wildfire Mitigation Plan at their meeting in May or June. 4 Finance Committee, April 1, 2025, Agenda Item #3, https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=7399&meetingTemplateType=2&comp iledMeetingDocumentId=13598 Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 6  Packet Pg. 82 of 113  •Finance Committee will review the preliminary Fiscal Year 2026 operating and capital budget recommendations on May 6 and 7, including fire staffing budget proposals, and capital funding to advance additional wildfire fuel reduction in the City’s Open Space Preserves. June / summer •City Council will consider approval of an easement in the Palo Alto foothills to support continued undergrounding of the electric transmission line (upon approval by Mid- Peninsula Open Space District). •The City’s Foothills Fire Management Plan updates and the Santa Clara County Community Wildfire Protection Plan, a combined effort, will be finalized. •City Council will hold annual hearing on properties assessed for Weed Abatement work. Beyond •City Council adoption of the updated Emergency Operations Plan FISCAL/RESOURCE IMPACT Implementing activities such as hardening systems and undergrounding the electricity transmission line in the foothills are within existing capital improvement plans and funding. Acquisition of new equipment and technology is reviewed and evaluated as it arises in the context of the various plans, most currently as part of the Foothills Fire Management Plan/Community Wildfire Protection Plan (FFMP/CWPP) a multi-year plan. The City will also explore potential funding sources, such as grants from federal and state agencies, to offset the costs of implementing wildfire preparedness plans. The timeline and resource needs for implementation of management’s corrective action plans are identified by management within the attached responses. STAKEHOLDER ENGAGEMENT The Office of the City Auditor worked with and would like to thank several departments for their assistance in conducting this audit including: City Manager’s Office, Public Works, Fire Department, Office of Emergency Services, and Palo Alto Utilities. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because reviewing and approving audit findings is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). ATTACHMENTS Attachment A: Emergency Preparedness - Wildfire Audit Report APPROVED BY: Kate Murdock, City Auditor & Kiely Nose, Assistant City Manager Item 1 Item 1 Late Packet Report        Item 1: Staff Report Pg. 7  Packet Pg. 83 of 113  March 31, 2025 City of Palo Alto Office of City Auditor Emergency Preparedness - Wildfire Audit Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 8  Packet Pg. 84 of 113  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 .................................................................................................. 1 INTRODUCTION ............................................................................................................... 4 DETAILED ANALYSIS ..................................................................................................... 7 AUDIT RESULTS.............................................................................................................. 9 APPENDIX A MANAGEMENT RESPONSE MATRIX ......………………………………..25 Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 9  Packet Pg. 85 of 113  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 an Emergency Preparedness – Wildfire Audit based on the approved Task Order 4.25. The objective of this audit was 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. Report Highlights (Page 13) programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. • The City of Palo Alto Utilities Department (CPAU) has made significant investments to reduce wildfire risk o Undergrounding distribution lines – the City is in the process of undergrounding its main distribution line in the Foothills high-risk area to reduce the potential for wildfire caused by damaged or downed lines. o Installing weather stations – to collect localized weather data to share with first responders. o Public Power Shutoff Procedure – provides guidance for when to de- energize lines when needed to reduce wildfire risk and communicating information to the public. o Formalizing Utility Infrastructure Maintenance Program – CPAU is in the process of formalizing its utility infrastructure maintenance program which will help guide and prioritize the utilities maintenance efforts o Use of FLIR cameras – to detect electrical hotspots and areas that may require maintenance • The City has several programs to address vegetation management and improved tracking efforts may increase compliance o Line Clearance Program – this program is managed by the Urban Forestry division of the Public Works Department in collaboration with CPAU and ensures vegetation is cleared from electrical equipment and utility lines. OCA noted areas to improve documentation of work scheduled and performed and overall program guidance o Property inspections in the Wildland Urban Interface (WUI) help ensure properties in high-fire danger areas are cleared of vegetation that could potentially fuel a wildfire. OCA noted areas for improved tracking and follow-up for properties that are in violation of the City’s code. • While the City has partnered with CAL FIRE and is included in Santa Clara County’s Community Wildfire Protection Plan, community involvement could Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 10  Packet Pg. 86 of 113  EXECUTIVE SUMMARY wildfire resilience and promotes collaboration between residents, fire departments and other stakeholders. • Community education and outreach could be enhanced by policies and procedures to guide efforts and track and measure their effectiveness. Key Recommendations We recommend the City consider the following improvements to enhance its wildfire prevention efforts: 1. Continue efforts to underground Wildland Urban Interface (WUI) distribution infrastructure and prioritize, as appropriate, maintenance and possible replacement of the oldest utility poles should they remain in place. 2. Line Clearance policy documents should be established and or reviewed, updated and finalized (e.g. Draft Tree and Landscape Technical Manual 3. Continue efforts to better track and monitor property violations in the WUI to enhance enforcement. 4. Prioritize efforts to establish a Firewise Community including stakeholder engagement throughout the process 5. Formalize the contract with CAL FIRE to ensure service provision continues into the future. 6. Ensure wildfire education and outreach plans document coordination efforts between the Office of Emergency Services (OES), Fire and CPAU to ensure information is consistently and regularly provided to residents. (Page 15) Overall, the City has a strong emergency response plan but should consider if improvements can be made to evacuation planning, after action report recommendation implementation, and communication efforts. • The City has a comprehensive set of emergency response and wildfire plans, but should consider if evacuation plans could be enhanced and some plans may require updating and review. o Overall, OCA found that the City’s plans align with the majority of Federal Emergency Management Agency (FEMA) guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process to ensure that plans are regularly reviewed and updated. In addition, while the Foothills Fire Management Plan (FFMP) addresses evacuation routes and ensuring these routes remain clear for emergency personnel as well as residents for evacuation, we recommend the City consider additional planning activities based on the U.S. Department of Homeland Security’s, Planning Considerations: Evacuation and Shelter-in-Place; Guidance . Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 11  Packet Pg. 87 of 113  EXECUTIVE SUMMARY • implemented a new sign-in process to improve tracking. • While the City conducts training and after-action reports (AAR) after critical incidents, efforts to track and implement resulting recommendations could be improved. • The City is enhancing its wildfire detection capabilities through the use of gas monitoring sensors deployed in the Foothills area. • The City employs several methods for communicating critical information to its residents during an emergency and should continue to explore methods to increase participation in the County’s emergency alerting system. o Based on the alert system sign-up data provided and Santa Clara County, 17% of Palo Alto residents were registered in the system in 2025. • While the City has strong relationships with their mutual aid agreement partners 1, the City does not maintain these agreements in a central repository for easy tracking and monitoring. Key Recommendations We recommend the City consider the following improvements to enhance its Wildfire response efforts: 1. The City’s emergency plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring communities. 2. City management should more formally track and monitor findings and recommendations identified during training exercises and in AARs of emergency incidents to ensure needed improvements are made and issues are timely resolved. 3. Continue to explore ways to increase resident registration in the County’s emergency alerting system. Opportunities may include partnering with schools, homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. 4. Determine an appropriate solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. 1 Mutual aid partners include Los Altos Hills, Santa Clara County, Woodside, Mountain View, and the California Department of Forestry and Fire protection. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 12  Packet Pg. 88 of 113  Introduction The objective of this audit was 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. Background change, historical land management practices, human activities, and ecological shifts, all of which impact cities like Palo Alto that are situated near high-risk wildland-urban interface (WUI) zones. Climate change has intensified the state’s wildfire risk by driving higher temperatures, wind speeds, and drier conditions, which extend the fire season and increase the probability of fires. Historical land management practices, including the suppression of indigenous fire management techniques and aggressive fire suppression policies in the 20th century, have led to an accumulation of vegetative fuels. Additionally, logging practices have left denser forests prone to more intense fires. Human activities— ranging from infrastructure failures to recreational fires—are the primary sources of ignition, particularly as urban areas expand into WUI zones, increasing both the human and economic impact of fires. In response to wildfire risks, the City of Palo Alto’s Office of Emergency Services (OES), Fire Department, and City of Palo Alto Utilities (CPAU) are all actively engaged in wildfire preparedness, prevention, and response efforts, coordinating resources and community education initiatives to address these risks. The City works closely with CAL FIRE, regional partners, and neighboring cities to implement and refine emergency response plans, ensure effective evacuation routes, and conduct community outreach on wildfire preparedness. Recognizing the need for a multifaceted approach to wildfire mitigation, the City supports initiatives that promote sustainable land management practices, encourages defensible space in WUI zones, and advocates for policies to reduce human- caused ignitions. By fostering partnerships and promoting proactive wildfire safety measures, Palo Alto is dedicated to enhancing the city’s resilience against the growing threat of wildfires in California. The following table provides an overview of the City’s various planning documents related to wildfire preparedness and response, as well as their purpose and when they were last updated. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 13  Packet Pg. 89 of 113  INTRODUCTION Table 1: City Emergency Preparedness Plans Title Purpose Date Emergency Operations Plan Basic Plan (EOP) The EOP embraces the FEMA "whole community" approach. According to the EOP, the City has undergone multiple hazard analysis processes per the FEMA Comprehensive Preparedness Guide 201. The EOP also states the City actively manages training activities and allocates funding in relation to fluctuating needs, personnel turnover, and course availability. January 2016* Emergency Operations Center Manual (EOC) The EOC wildland fire response is primarily addressed through the EOC activation, the plan's emphasis extends beyond immediate response to a broader, proactive strategy. According to the EOC the City prioritizes comprehensive hazard analysis and ongoing training aligned with state and national standards such as ICS, SEMS, and NIMS. July 2021 Wildland Urban Interface (WUI) Fire Response An annex to Palo Alto’s EOP, focusing on WUI fire response. It aligns with state and national emergency management systems (SEMS and NIMS). The primary goals are to guide initial response planning, support the development of incident plans, and ensure coordinated interagency actions. August 2023 Local Hazard Mitigation Plan (LHMP) The LHMP is part of the larger Santa Clara Operational Area Hazard Mitigation Plan and has a Palo Alto Annex. The LHMP details potential hazards for Palo Alto and provides recommended action on the hazards. October 2024 Foothills Fire Management Plan (FFMP) The FFMP focuses on mitigating wildfire risks in the Foothills area through targeted vegetation management and strategic planning. The document highlights accomplishments since the initial 2009 plan, including improved evacuation routes, prescribed burns, and reduced fire hazards near critical infrastructure. The update emphasizes ongoing efforts like annual maintenance of treated areas, collaboration with regional agencies, and leveraging funding opportunities. The plan includes post-treatment fire behavior analysis, showcasing how vegetation management efforts have improved emergency access and reduced the likelihood of wildfire spread. January 2017 CPAU Wildfire Mitigation Plan caused by electric lines and infrastructure. Key strategies include undergrounding power lines in high-risk areas, such as the Foothills region, updating Public Safety Power Shutoff (PSPS) protocols, enhanced vegetation management, and the use of advanced technologies like non-expulsion fuses and remote deenergization switches. The plan emphasizes collaboration with other departments, such as Fire and Urban Forestry, to ensure comprehensive wildfire prevention efforts. Regular inspections, vegetation clearance exceeding regulatory standards, and continuous monitoring are highlighted as critical components. The plan includes performance metrics to track the effectiveness of mitigation efforts, ensuring proactive adjustments where needed. June 2024 Santa Clara County Community Wildfire Protection Plan (CWPP) The Santa Clara County CWPP aims to reduce wildfire risk by establishing cooperative relationships with federal, state and local stakeholders before an event occurs and developing pre-attack plans to enhance firefighter readiness and safety. The CWPP includes annexes which offer information and project recommendations specific to geographical planning areas. The City of Palo Alto is included as an annex. Communities are currently updating their annex plans. August 2016 Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 14  Packet Pg. 90 of 113  INTRODUCTION 2 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. As a result of transitions in the Audit Office and peer review delays due to the COVID pandemic, an external peer review is targeted for 2025. It should be noted that 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. Scope The OCA evaluated the City’s plans and efforts related to wildfire prevention and preparedness by assessing related activities and internal controls from FY2023 through FY2024 in the OES, Fire Department, and CPAU. Methodology • Interviewed the appropriate individuals to understand the roles and responsibilities, processes, and controls related to Emergency Preparedness (Wildfire) activities. • Analyzed current policies and procedures (P&P) as well as FEMA and CAL FIRE standards and best practices. • Evaluated relevant documents such as City of Palo Alto EOC Manual, CPAU Wildfire Mitigation Plan, FFMP, and various other plans • Gathered information and reports to assess if current City plans are sufficient in preventing and responding to wildfire risks. • Inquired with OES departments for clarification and understanding of emergency plans. • Completed audit report of findings, conclusions, and recommendations based on the supporting evidence gathered Compliance Statement accordance with generally accepted government auditing standards, except for the requirement of an external peer review 2. 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 demonstrated by the Emergency Preparedness team. We also observed their willingness to provide and receive feedback regarding the emergency preparedness process, which includes their receptiveness to process improvements. The OCA greatly appreciates the support of the Fire Department, Office of Emergency Services, City Manager’s Office, and City of Palo Alto Utilities Department in conducting this audit. Thank you! Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 15  Packet Pg. 91 of 113  DETAILED ANALYSIS Detailed Analysis Emergency Preparedness & Response In its publication, Developing and Maintaining Emergency Operations Plans, FEMA highlights five key areas for communities to address related to Emergency Preparedness. These include: • Prevention – reducing risk from human-caused incidents • Protection – reducing or eliminating the threat to people and critical infrastructure • Response – actions taken in the immediate aftermath of an incident • Recovery – short-term and long-term efforts for rebuilding and revitalizing the affected community • Mitigation – structural and non-structural approaches to eliminating or limiting the hazards presence This audit report focuses on the first three areas as they relate to the audit objectives, but recognizes the City has efforts related to recovery and mitigation of wildfire risks too. Shared Community Preparedness themes Additional best practice information comes from the National Incident Management System (NIMS) and CAL FIRE. NIMS offers guidance on resource management, mutual aid, and communication during emergency events. CAL FIRE provides guidance and best practices for wildfire events specific to Fire Hazard Severity Zones (FHSZ), further described below. Guidance from FEMA, NIMS, and CAL FIRE all emphasize the importance of the following principles in preparing communities for emergencies including wildfires. Common themes include: • Community Engagement: Public education and participation are key to ensuring communities are informed and involved. • Response Coordination: Implementing reliable policies for consistent response across agencies and stakeholders is key to NIMS ICS framework and mutual aid strategies with FEMA’s planning and CAL FIRE’s interagency collaboration. • Training and Communication: Regular drills and clear communication protocols are critical to ensure preparedness and efficiency during emergencies. FEMA offers additional guidance related to wildfire emergency preparedness. FEMA's best practices, as highlighted in their publication Developing and Maintaining Emergency Operations Plans. These best practices include: • Risk Assessment and Planning: Conducting thorough risk assessments to identify potential wildfire hazards and developing comprehensive emergency plans that address these risks. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 16  Packet Pg. 92 of 113  D • : Ensuring that timely and accurate information is provided to the public about wildfire risks, evacuation orders, and safety measures. NIMS offers important recommendations for departments handling wildfire emergencies. These best practices include: • Communication and Information Management: Implementing reliable communication systems and protocols to ensure timely and accurate information sharing during wildfire emergencies. • Incident Command System (ICS): Utilizing the ICS to coordinate response efforts and manage resources effectively during wildfires. CAL FIRE offers comprehensive guidance related to wildfire emergency preparedness. CAL FIRE's best practices provide essential recommendations for departments handling wildfire emergencies. These best practices include: • Fire Hazard Severity Zones (FHSZ): Identifying and mapping areas with varying degrees of fire hazard severity to prioritize resources and mitigation efforts. • Evacuation Planning: Developing and regularly updating evacuation plans to ensure that residents can safely and efficiently evacuate in the event of wildfire. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 17  Packet Pg. 93 of 113  Audit Results City Efforts to Prevent and Protect from Wildfire the City has made significant investments in and has strong programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. neighboring jurisdictions to prevent and protect the City and its residents from the risk of wildfire. These risk areas include utility infrastructure maintenance, vegetation management, and community outreach and education. CPAU has made significant investments to reduce wildfire risk CPAU provides electricity to the entire Palo Alto service area including the Foothills/Wildland Urban Interface (WUI) Area and prepares and submits a Wildfire Mitigation Plan to the California Wildfire Safety Advisory Board each year. CPAU has invested in several projects to reduce wildfire risk including undergrounding distribution lines and installing weather stations. The Utility has also developed a Public Safety Power Shutoff (PSPS) procedure. Undergrounding Distribution Lines CPAU began the Foothills project to underground distribution lines in the Foothills high-risk area in 2021. This project, which will be completed in summer 2025, includes the undergrounding of approximately 49,200 feet of distribution lines. The project includes undergrounding the main 12470- voltage distribution line as well as fiber optic cable. Utility distribution lines pose a significant wildfire risk and undergrounding these lines largely eliminates this threat as lines cannot be damaged by trees or high winds which can spark fires by falling on vegetation below. Based on information provided by CPAU, much of the overhead infrastructure within the Wildland Urban Interface (WUI), designated as the High Fire Threat Tier 2 zone, encompassing all city areas west of Highway 280, known as the "Foothills Area" will be undergrounded. As part of City’s wildfire mitigation strategy, CPAU has prioritized the undergrounding of its overhead infrastructure in the WUI/Foothills Tier 2 area. The Foothill Fire Mitigation Project includes the following key activities: • Substructure construction, including the installation of boxes and pad-mounted equipment • Cable pulling and line energization • Decommissioning of overhead poles and equipment According to CPAU, the Foothill Fire Mitigation Project is estimated to underground 182 of the total of 203 poles and overhead lines in the high-risk area. The estimated 21 remaining poles require additional coordination with pole attachers, and customers prior to either undergrounding or implementation of additional fire hardening measures. As of March 2025, CPAU management reported it has completely de-energized and undergrounded electric lines for 69 of the 182 poles, significantly reducing the wildfire risk associated with overhead power lines in the area. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 18  Packet Pg. 94 of 113  3 Red Flag Warning removed as part of the initial Foothill Fire Mitigation Project. Table 2: Age of Remaining Poles in WUI *Analysis conducted by the OCA in March 2025 The OCA saw a range of estimates on how long utility poles can last, anywhere from 35 to 75+ years depending on conditions and maintenance, which suggests CPAU should prioritize maintenance and possible replacement of the oldest poles should they remain in place. Additionally, CPAU is implementing a multi-year Grid Modernization initiative that will enhance grid resiliency and reliability of the electric distribution system by replacing poles, transformers, aerial wires, some cabinets and underground substructure. The initiative also includes upgrades to two of their substations, with a target completion by 2032. Weather Station Installation CPAU installed weather stations in the Foothills area and at the Utility Control Center to collect localized weather data which is shared with first- responder departments to determine if any actions are needed due to conditions. The Utility also monitors regional conditions and receives red flag warnings which signal when fire conditions are heightened 3. Public Safety Power Shutoff Procedure CPAU has a Public Safety Power Shutoff procedure which provides Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 19  Packet Pg. 95 of 113  4 California Public Resources Code Section 4293 Residents in the Foothills area are notified via email when de-energization is anticipated and are typically provided with dates and shutoff times. Forward Looking Infrared (FLIR) Cameras In addition to visual inspections, CPAU utilizes FLIR Cameras which are used to detect hotspots where electrical equipment could be overheating and treat areas before they become a problem. This use of technology helps enable the City to proactively address maintenance issues. The City has several programs to address vegetation management and improved tracking of efforts may increase compliance Wildfires and their spread are dependent on several conditions, such as fuel load or the accumulation of vegetation, as well as weather conditions which determine their severity. The City has several programs and resources dedicated to managing vegetation including resident assistance programs. These programs include: • Line Clearance Program • Right Tree Right Place • Property Inspections in the Wildland Urban Interface • Santa Clara Fire Safe Council CAL FIRE Line Clearance Program The City’s Line Clearance Program ensures vegetation is cleared from electrical equipment and utility lines, patrol to ensure access roads to facilities remain clear, and right-of-way clearing. The Program, typically completed via a contract with the Fire Safe Council (FSC), is managed by the operations division of the Public Works Department in the absence of a contract with FSC and in collaboration with CPAU. The City’s aim is to maintain a 10-foot clearance from trees in the Foothills area which is in accordance with California law 4 and the California Public Utilities Commission. According to the City’s Tree Management Plan and interviews with staff, the entirety of the Foothills area is inspected and cleared each year in the Spring with a follow-up inspection conducted in the fall. Staff stated that they have not experienced any resource constraints and major tree trimming occurs every 3 to 4 years. Compliance is maintained in intervening years through the biannual inspections and subsequent tree trimming. Tree trimming activities are tracked using a software program called TreeKeeper. Staff reported they do not currently track inspections but are working on how to capture them as a work record in TreeKeeper. The table below shows how many trees were trimmed in the Foothills area from 2021 to 2024. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 20  Packet Pg. 96 of 113  Table 3: Number of Trees Trimmed in the Foothills Area from 2021 to 2024* *Data analysis conducted by OCA in October 2024 Urban Forestry staff provided the OCA with two guiding documents: Urban Forest Master Plan and Draft Tree and Landscape Technical Manual. While the Urban Forest Master Plan provides overall guidance and includes information on the Line Clearance Program, the Draft Tree and Landscape Technical Manual provides information on what equipment and what environmental conditions to consider for conducting tree trimming to reduce the risk of ignition due to maintenance activities. Staff said that the Manual is intended as a supporting document to the City’s tree ordinance and its Fire- Safe Landscapes section provides residents with tree and landscaping guidance in support of creating a defensible space around one’s home against wildfire risk. The OCA noted that this draft manual did not appear to be complete. For example, there were imbedded notes for staff to determine seasonal criteria for tree trimming. Overall, while these documents provide good information, they require updating, completion, and dissemination. Right Tree Right Place Program The Right Tree Right Place Program provides resources for residents with trees that conflict with power lines. The program includes removing trees at no cost, reimbursement for stump removal and reimbursement for replacing trees with appropriate tree alternatives. Property Inspections in the Wildland Urban Interface The City’s Fire Marshal oversees fire safety inspections of businesses and properties. These inspections ensure businesses and residents comply with California Fire Code and keep properties clear of fuel that could increase the risk of wildfire. When a property is found in violation of the Fire Code, they are issued a “Notice of Violation” and typically given a month to make Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 21  Packet Pg. 97 of 113  reinspection fees incurred by the City. The City also adopts a Weed Nuisance Abatement resolution annually and works in coordination with the County of Santa Clara to address properties with weeds that are deemed a nuisance and/or fire hazard. Based on reports analyzed by the OCA, in 2023 there were 133 homes in Palo Alto’s Wildland Urban Interface (WUI). Inspections were conducted for 104 of these homes and 86 of these passed the first inspection. However, it appears that only 3 homes were reinspected and 26 homes had outstanding violations at year-end. Management stated that this report needs to be cleaned up and there may be less than 133 properties in the Palo Alto WUI. In 2024, through the third quarter of the year, the City had performed 138 inspections in the WUI. The City recently began using a new system to track fire inspections and management reported they are working with the City’s Information Technology Department to develop more robust reporting capabilities so the Fire Marshal can more easily track metrics on how many violations have been issued, how many have been corrected, how many referred to the fire prevention bureau, etc. With improved data tracking and reporting capabilities, the City will be able to better and timelier follow-up with businesses and residents who are not in compliance with the Fire Code and ensure wildfire risk is reduced. Santa Clara Fire Safe Council The City has a short-term contract with Santa Clara Fire Safe Council to help with roadside clearance work, public education, and pursuing grant opportunities. Staff stated that the City has introduced the Firewise program in the past through the Fire Safe Council, but the program has not had much traction and Palo Alto does not currently have a Firewise Community, a program that must stem from the impacted residents. The Firewise USA® program offers a structured approach for communities to enhance their wildfire resilience and promotes collaboration between residents, fire departments and other stakeholders. Establishing a Firewise program is also recommended for Palo Alto in the Santa Clara County Community Wildfire Protection Plan. A core principle in Community Wildfire Protection Plans is to include as many agency representatives and resident leaders in the planning process as possible. The first goal in FEMA’s Creating a Community Wildfire Protection Plan is to “Create fire-adapted communities” which includes pursuing Firewise site recognition, providing information to the community about fire safety, and reducing risks for home ignition. As stated in the CWPP, the City should strongly consider working with the local Foothills community to attain and maintain Firewise USA recognition. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 22  Packet Pg. 98 of 113  CAL FIRE has provided assistance to the City over the past couple of years in clearing out vegetation in the Foothills area and including some areas with Eucalyptus trees. The City does not currently have a formal contract with CAL FIRE for these services, however, this is something they should consider ensuring for service provision in the future. Community Education and Outreach could be improved. While the City has implemented various programs and trainings to promote the community's wildfire awareness and prevention efforts, there is room for improvement. Currently, there is no comprehensive policy or set of requirements established for the City's overall community outreach and education efforts to ensure sufficient information and education are provided to the residents for wildfire prevention and emergency preparedness. As a result, the City's overall community outreach and education efforts are not tracked to ensure goals are met. Limited efforts to measure education and outreach effectiveness According to management, community outreach and education responsibilities are shared between Fire Prevention and OES and the citywide communications team. Staff said efforts were tracked in the past, but they lost the position responsible for this activity and there are currently no P&P in place to guide the provision or tracking of education and outreach efforts. Staff indicated that recent efforts have not been well attended by residents, making it difficult to assess how engaged and prepared the community is to prevent and respond to wildfires. CPAU also performs community education and outreach activities and includes wildfire information as part of its regular communications with customers. CPAU employs several methods for communicating with customers including utility bill inserts, email newsletter, direct mail, social media, and the CPAU website. While staff provided several examples of wildfire education efforts, they indicated there is no policy or plan outlining expectations or responsibilities for outreach and education efforts, how often they should be performed and/or how to determine what information gets shared. In accordance with State law, the Utility Wildfire Management Plan is presented annually in a public meeting to the Utilities Advisory Commission. Developing a guiding document with appropriate goals and targets could help ensure the utility consistently communicates with residents and could aid in tracking the effectiveness of these efforts over time. Some residents report a lack of wildfire preparedness education and a desire for more information related to City prevention efforts The City of Palo Alto’s Community Survey results from 2023 support the observations above that the City could improve outreach efforts to community members. When asked about the quality of Palo Alto’s fire prevention and education services, 37% of respondents in 2023 answered “don’t know”, 18% answered “fair” or “poor”, and 45% answered “good” or Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 23  Packet Pg. 99 of 113  nor is the sample size specific to the WUI region. In 2022, CPAU’s study of Key Account Customers found that 40% indicated being “very concerned” with future wildfires and a 2023 Residential Electric Customer Satisfaction Study reported that the second most desired topic of information (44%) is “what CPAU is doing to prepare for emergencies like wildfires and earthquakes.” The City’s Fire Department conducts annual property inspections in the WUI to detect dangerous conditions that could contribute to or exacerbate wildfire risk. As noted above, our analysis of the fire inspection log from 2023 shows that 26 out of an approximate 133 homes in the WUI had outstanding violations and in 2024 more than 74 homes had violations. Annually doorhangers are provided to residents in this area. Additional measures such as education, outreach, and fines may help to reduce violations by informing residents of the dangers of excess vegetation and any maintenance or prevention related resources available to them. The Fire Department does maintain an online wildfire preparedness resource for community members: https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire- READY-SET-GO. Recommendation Wildfire prevention efforts: 1. Continue efforts to underground WUI distribution infrastructure and prioritize, as appropriate, maintenance and possible replacement of the oldest poles should they remain in place. 2. Line Clearance policy documents should be established and or reviewed, updated and finalized (e.g. Draft Tree and Landscape Technical Manual) 3. Continue efforts to better track and monitor property violations in the WUI to enhance enforcement. 4. Prioritize efforts to establish a Firewise Community including stakeholder engagement throughout the process 5. Formalize the contract with CAL FIRE to ensure service provision continues into the future. 6. Ensure wildfire education and outreach plans document coordination efforts between OES, Fire and CPAU to ensure information is consistently and regularly provided to residents. Management Response Please see appendix for responses. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 24  Packet Pg. 100 of 113  City Wildfire Response Plans Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, after action report recommendation implementation, and communication efforts. mitigating wildfire risks by coordinating closely across its own departments— such as the OES, Fire Department, CPAU, and Public Works—and with neighboring jurisdictions. These risk areas include Planning, Training, Detection, Communication, and Resources. The City has a comprehensive set of emergency response and wildfire plans, but the City should consider if evacuation plans could be enhanced and some plans may require updating and review The City has several plans that all work in conjunction with each other to ensure the City is prepared to response to various disasters and hazardous conditions. In addition to internal plans, the City is part of Santa Clara County’s Community Wildfire Protection Plan. We discuss several of the plans guiding the City’s response approach, below. The City has 6 plans related to wildfire. • Overarching Emergency Operation Plans (EOP) which contains the annexes Emergency Operations Center Manual (EOC), • Local Hazard Mitigation Plan (LHMP), • Foothills Fire Management Plan (FFMP), • Wildland Urban Interface Fire Response (WUI), and • CPAU Wildfire Mitigation, which is a wildfire plan for the City Utilities Department. • The EOP adopted by city council on January 11, 2016, states that it follows FEMA's "whole community" approach. The EOP in general follows the format laid out by FEMA. The revision history and certification of biennial review on the EOP are blank both on the EOP provided to auditor and on the City website, indicating that the plan has not been updated or reviewed in 8 years. The distribution section of the EOP does not adhere to FEMA's recommended format, which specifies that this section should be presented as a list. Management has identified that the EOP is currently undergoing review and update in 2025. In the EOC, wildland fire response is primarily addressed through the EOC activation, the plan's emphasis extends beyond immediate response to a broader, proactive strategy. According to the EOC, the City prioritizes comprehensive hazard analysis and ongoing training aligned with state and national standards such as ICS, SEMS, and NIMS. The LHMP is part of the larger Santa Clara Operational Area Hazard Mitigation Plan and has a Palo Alto Annex. The LHMP details potential hazards for Palo Alto and provides recommended actions to prepare for these hazards. This plan was recently adopted by the City Council in Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 25  Packet Pg. 101 of 113  The FFMP for Palo Alto focuses on mitigating wildfire risks in the Foothills area through targeted vegetation management and strategic planning. The document highlights accomplishments since the initial 2009 plan, including improved evacuation routes, prescribed burns, and reduced fire hazards near critical infrastructure. The update emphasizes ongoing efforts like annual maintenance of treated areas, collaboration with regional agencies, and leveraging funding opportunities. The plan includes post-treatment fire behavior analysis, showcasing how vegetation management efforts have improved emergency access and reduced the likelihood of wildfire spread. There is a monthly meeting with OES, CSD Open Space Division, Fire Marshal’s Office, Public Works Operations, and Utilities Engineering to address and discuss current issues within the FFMP. The City is currently in the process of updating this plan. The WUI focuses on WUI fire response and provides a concept of operations in the development of an effective and coordinated response to a significant wildland urban interface (WUI) Fire. This provides direction for city departments, community groups, and allied stakeholders ensuring interagency coordination in accordance with the City’s EOP, the California Emergency Services Act, the Standardized Emergency Management System (SEMS), and the National Incident Management System (NIMS). The CPAU Wildfire Mitigation plan focuses on minimizing the risk of wildfires caused by electric lines and infrastructure. Key strategies include undergrounding power lines in high-risk areas, such as the Foothills region, enhanced vegetation management, and the use of advanced technologies like non-expulsion fuses and remote deenergization switches. The plan emphasizes collaboration with other city departments, such as the Fire Department and Urban Forestry, to ensure comprehensive wildfire prevention efforts. Regular inspections, vegetation clearance exceeding regulatory standards, and continuous monitoring are highlighted as critical components. The plan also includes a performance metrics framework to track the effectiveness of these mitigation efforts, ensuring proactive adjustments where needed. Areas for Improvement Overall, OCA found that the City’s plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process to ensure that plans are regularly reviewed and updated. In addition, while the FFMP addresses evacuation routes and ensuring these routes remain clear for emergency personnel as well as residents for evacuation, we recommend the City consider the following enhancements based on Homeland Security’s, Planning Considerations: Evacuation and Shelter-in-Place; Guidance for State, Local, Tribal, and Territorial Partners, July 2019. This guidance highlights the following responsibilities for local jurisdictions: • Setting clear expectations for whole community partners through education, training and information sessions, Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 26  Packet Pg. 102 of 113  • the community, • Identify evacuation shelters within the community and in other communities working with those neighboring communities to establish notification and operational procedures, • Create pre-approved accessible messaging for rapid distribution regarding incident and shelter in place or evacuation instructions, • Have a continuity plan to help maintain response operations if interrupted, and • Provide real-time mapping and navigation routing systems through Geographic Information System (GIS). Homeland Security’s guide also highlights key lessons from past wildfire emergencies that occurred in Los Angeles County, CA and Larimer County, Colorado: • Need for increased coordination for quicker incorporation of GIS data into analysis • Identification of the safest evacuation routes combined with the use of multiple forms of communication to keep residents informed regarding timing and location of evacuated areas. • Use of a tiered evacuation approach o First, direct residents out of an immediate impact zone to an evacuation point, out of danger, where additional information is provided, o Second, if the danger is prolonged, direct residents from the evacuation point to an evacuation center where water, food and power resources are available to charge mobile devices, and o Third, if overnight or multi-day evacuation is necessary, direct residents to shelters in nearby communities. Training The City monitors training requirements and compliance and recently implemented a new sign-in process to improve tracking Fire, OES, and Police all serve critical functions in emergency response with different training requirements depending on their roles and responsibilities. In terms of wildfire response training, the Fire Department provides wildfire training through modules provided by Vector Solutions as part of an annual fire safety refresher course, RT-130 which is required per the National Wildfire Coordinating Group (NWCG) for designated positions for all personnel assigned with Fireline duties. The training is completed before the start of the Wildland season which typically runs from May to November but can vary from year to year. A new QR check-in system may have resulted in Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 27  Packet Pg. 103 of 113  as of the writing of this report. There was a total of 77 employees signed up and as of August 29th, 2024, 71 had completed the required training. Out of the 6 who had not completed the training, five were due to workers’ comp or medical issues. Management was unable to provide an explanation of why the remaining employee’s training was not completed but noted that the individual received follow-up training to ensure understanding of training requirements and protocols. Management stated that a new check-in system is now in place and will help the City more easily track training compliance in the future. The OES training primarily covers critical incident response, with minimal emphasis on wildfires. Finally, the Police Department does not have specific wildfire training. Instead, they focus on support roles during such incidents, including using police speakers for warnings, directing traffic, and ensuring clear roads. After Action Reports (AAR) According to The National Wildfire Coordinating Group (NWCG) AARs are essential for wildland firefighters to learn from mistakes and capitalize on successes. The objective of the AAR is to immediately identify these successes and failures. Once they have been recognized, further exploration allows the team to perfect its skills and be better prepared for future endeavors. NWCG is a partnership of federal, state, tribal, and local wildfire management agencies that work together to establish standardized practices for wildland fire operations in the United States, its primary goal is to enhance efficiency, safety, and effectiveness in wildland fire management and response. The NWCG develops training programs, operational guides, and policy frameworks to ensure consistent and coordinated wildfire management across jurisdictions. It also serves as a central resource for promoting best practices, improving interagency collaboration, and supporting the professional development of fire personnel. While the City conducts training and AARs after critical incidents, efforts to track and implement resulting recommendations could be improved All the departments come together to engage in tabletop exercises for training purposes. Departments also work together after critical emergency incidents to conduct AARs to report their successes and improvement opportunities. While some AAR recommendations have been implemented others have not and staff said they do not formally track and monitor the implementation of recommendations. Areas of improvement noted in training exercises and in AARs cover various areas such as communication, recovery and proper use of PPE. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 28  Packet Pg. 104 of 113  Training Exercises 2024 XSC Readiness Drill A drill hosted by the County of Santa Clara to provide pre-incident training on bulldozer, hand crew, and helicopter operations during a wildfire. This event was attended by county-wide OES departments. Areas of improvement included: • Creating clarity around the communications center and coordinating the process and flow of mutual aid initial attack orders. Vulcan Forge Tabletop Exercise The City of Palo Alto Vulcan Forge Tabletop Exercise was intended to discuss and validate existing procedures. The drill provided an opportunity for City staff to exercise their role and gain a greater understanding of the processes and procedures that will occur during wildfire response. Areas of improvement included: • The WUI ConOps is lacking specific procedures to reach those with limited English proficiency or for people with disabilities, and others with access and functional needs (DAFN) • Participants didn’t appear to know how best to alert residents who were experiencing power outages • The WUI ConOps does not have a procedure for approving PIO to disseminate to the public • Define terms such as “mass care” vs. “sheltering” to create clear understanding of evaluation points, centers, shelters, and the like • Establish evacuation center and sheltering operation criteria, P&P and train appropriate staff • Current plans lack sufficient detail on recovery and relief efforts • OES needs to create P&P for re-entry and re-population After Action Reports PAFD AAR Dish Fire A fire of unknown origin started near the Stanford Hiking Dish Trail and the PAFD responded to put out the fire. The fire was in an area of the dish hiking trail that’s nearest the intersection of lower Reservoir Road and the Stanford Hiking Dish Trail with the closest gate access being the Gerona Gate. Areas of improvement included: • There was a delay in dispatching mutual aid and additional hands-on training was requested • Proper PPE must always be worn when responding OCA’s analysis of training exercise notes and AARs found areas of improvement are often identified with suggestions for process Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 29  Packet Pg. 105 of 113  5 https://www.cityofpaloalto.org/Departments/Emergency-Services/Emergency-Preparedness 6 https://www.cityofpaloalto.org/Departments/Fire/Prepare-For-Wildfire-READY-SET-GO monitor these findings and recommendations to better determine if they should be implemented, what resources may be needed, and to establish an appropriate timeline for implementation. The City is enhancing its wildfire detection capabilities through the use of gas monitoring sensors deployed in the Foothills area Detection is crucial in wildfire emergencies because it enables early response, reducing the spread and potential damage of fires by allowing for quicker containment efforts. Early detection systems, such as remote sensors and aerial surveillance, are vital for protecting communities and natural resources, as they help agencies mitigate risks before fires escalate to dangerous levels. The City recently set up N5 Sensors which are an advanced gas monitoring system designed to provide early alerts in the event of a wildfire. In a collaborative program, the City is partnering with Stanford and Woodside, with Stanford purchasing 25 N5 sensors and receiving an additional 25 at no cost. Of these, Palo Alto will receive 12 sensors, while Woodside will receive 13. Each city will cover its own data expenses, estimated at $22,000 per city for the first two years. Palo Alto received a grant from the Department of Homeland Security to assist with the expenses. The Fire Safe Council will handle the sensor installation and program management. Although N5 Sensors will not provide complete coverage across all areas, they are strategically positioned to enhance early warning capabilities in high-risk zones. Additionally, the City has explored the use of drones for monitoring, but concerns over privacy, public perception, and restrictive municipal codes have made their approval challenging. Communication The City employs several methods for communicating critical information to its residents during an emergency and should continue to explore methods to increase participation in the County’s emergency alerting system The City has established multiple communication channels such as the City’s website, news releases, social media, and radio announcements to remind residents of wildfire season and keep them informed of the City’s events and emergency notifications. City web pages dedicated to general emergency preparedness 5 and wildfire prevention include CAL FIRE’s Ready-Set-Go 6 video, Palo Alto Wildfire Planning Map, evacuation information, a link to sign up for Santa Clara County’s alerting system, and other resources. Palo Alto utilizes Everbridge, the mass notification system used throughout Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 30  Packet Pg. 106 of 113  Under California’s emergency management structure, each county operates as an "Operational Area," giving it independent authority and responsibility for issuing alerts and warnings within its jurisdiction. Santa Clara County has been using Everbridge for several years, with trained personnel across jurisdictions, including staff from Palo Alto’s OES and Police dispatch. Everbridge is Palo Alto’s primary tool for sending mass alerts in wildfire situations. There are two main response scenarios: First, if a fire breaks out within Palo Alto’s jurisdiction, OES will issue an immediate alert after assessing the fire's location and direction. Second, if a fire starts outside the area but moves toward Palo Alto, they monitor and notify residents as needed. Residents can "opt in" to receive these alerts by registering at alertscc.org. Additionally, Everbridge includes an "all records" list, which contains duplicates, and includes data from their reverse 911, purchased cell phone records, white and yellow pages, and data from the prior system, Blackboard. However, this “all records” list contains duplicates making it difficult to determine the total number of residents signed up for the service. For example, an individual might have their information listed in all records noted above and each record lists them as a separate contact. Based on the alert system sign-up data provided by Santa Clara County, the percentage of Palo Alto residents signed up for alerts increased from 15% in 2023 and 2024 to 17% in 2025. Participation among other Santa Clara County cities in 2025 ranges from 7% to 29%. Some cities may have more or less of their population occupying WUI areas which may account for some of the differences in emergency alert adoption. The OCA recommends the City continue to explore ways to increase resident participation in this program since it is the City’s primary communication tool for reaching residents in an emergency. Resources The City has seven fire stations. Six fire stations are staffed full-time and the seventh station provides seasonal coverage in the foothills region during high-fire danger months. This seventh station is staffed through an interlocal agreement with Losa Altos Hills and Santa Clara County which specifies a rotational schedule to ensure coverage. Mutual aid agreements are essential in wildfire management, enabling communities to combine resources, expertise, and personnel across jurisdictions for a more effective and rapid response to large-scale fires. Wildfires spread quickly and can overwhelm local resources, making support from neighboring cities, counties, and state agencies critical for containment and suppression. These agreements establish protocols for communication, resource sharing, and logistical coordination, which helps reduce response times and enhances overall operational efficiency. FEMA and CAL FIRE emphasize that such partnerships strengthen resilience by ensuring that participating agencies are prepared to respond cohesively to the complex challenges of wildfire emergencies. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 31  Packet Pg. 107 of 113  Recommendation partners, the City does not maintain these agreements in a central repository for easy tracking and monitoring Palo Alto has 5 mutual aid agreements for wildfire response, though some require updates for ongoing effectiveness. The Station 8 agreement remains active, providing 24/7 monitoring during wildfire season, while the Mutual Threat Zone operating plan with CAL FIRE establishes guidelines for resource usage and remains in force until a 30-day termination notice is issued. Additionally, the agreement among Palo Alto, Santa Clara County, and Los Altos Hills ensures the availability of nearby resources for emergencies, continuing unless ended by a 30-day notice. The agreement with Woodside, which expired sometime in 2019 had no specified end date, according to the Deputy Fire Chief negotiations for a new contract are currently underway. The mutual aid agreement with Mountain View is also expired, though still honored by both cities. The OCA noted that these agreements are not kept in a central repository which may make it difficult to track and monitor the status of the agreements. We recommend the City consider the following improvements to enhance its Wildfire response efforts: 1. The City’s emergency plans align with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring communities. 2. City management should more formally track and monitor findings and recommendations identified during training exercises and in AARs of emergency incidents to ensure needed improvements are made and issues are timely resolved. 3. Continue to explore ways to increase resident registration in the County’s emergency alerting system. Opportunities may include partnering with schools, homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. 4. Determine an appropriate solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 32  Packet Pg. 108 of 113  7 CPAU contracts with a third-party vendor to conduct compliance inspections to ensure utility poles and equipment are well maintained. Visual inspections are conducted annually and a detailed inspection every five years. Every ten years, the vendor performs an “intrusive inspection” which can include drilling into the poles to determine their condition. Lines and poles are rated using a 3-point scale from P1 (most serious and needing immediate attention) to P3 (less urgent). Staff stated that poles rated with a P1 are remediated immediately, however, the OCA could not assess the timeliness of response based on the reports provided. Management Response Additional Observation electric Grid Modernization Project, it does not have a formal maintenance schedule that proactively anticipates and schedules maintenance as the infrastructure ages. Instead, maintenance issues are addressed on an as needed basis. Management stated that the Utility is currently behind schedule in addressing line and pole maintenance due to resource constraints but is on schedule to complete all Overhead and Underground facility inspections for 2024. The OCA has performed a general assessment of CPAU’s line and pole maintenance program noting some areas for the City to consider. The OCA analyzed pole data from the Utility’s pole inspection report 7 and noted that approximately half of the City’s poles are over 40 years old, with some poles dating back to the 1940’s. 545 of CPAU’s poles are 60 years old or older and may present age-related maintenance issues. It should be noted that many of these poles may be scheduled for replacement as part of the Grid Modernization project. In addition to the Utility’s pole inspection report, the OCA asked for example inspection reports for individual pieces of equipment and poles. These reports are entered into the CPAU Electric Equipment & Maintenance Database. The audit team noted that for the example reports received, the previous inspection dates on the forms appeared to be more than 10 years ago. The OCA recommends the City consider implementing a formal infrastructure maintenance program as part of its Grid Modernization efforts to ensure ongoing timely inspection and maintenance in the future. Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 33  Packet Pg. 109 of 113  Appendix A: Management Response Matrix 1. Continue efforts to underground WUI distribution infrastructure and prioritize as appropriate maintenance and possible replacement of the oldest poles should they remain in place. efforts should continue to underground and harden distribution infrastructure within the high fire danger area. The City’s Utilities Wildfire Mitigation Plan, updated and approved annually, prioritizes the undergrounding of the City’s overhead infrastructure in the high fire danger area on Arastradero Road. The first phase of the Foothill Fire Mitigation Project will move powerlines underground and remove approximately 182 of the total of 203 power poles and overhead powerlines in the high-risk area. The estimated 21 remaining poles and associated equipment require additional engineering and coordination prior to additional fire hardening measures. The Foothill Fire Mitigation Project includes substructure construction, including the installation of boxes and pad-mounted equipment; Cable pulling and line energization; Decommissioning of overhead poles and equipment. documents should be established and or reviewed, updated, and finalized (e.g. Draft Tree and Landscape Technical Manual) Manual (TLTM), and the recent the public comment period on the proposed revisions closed March 2025. Comments are under review and a draft of the TLTM is scheduled for review with the Parks and Recreation Commission, with a final version expected this year. Staff agree and plan to establish a line clearing policy for trees and landscape track and monitor property violations in the WUI to enhance enforcement and at the time of this report has now fully implemented this tool. This software, specifically designed for fire inspections, will improve inspection management, including tracking and monitoring of properties a Firewise Community including stakeholder engagement throughout the process contract with the Fire Safe Council including cost estimates for roadside clearance and public education resources, i.e. Firewise Community. PAFD is seeking partnership with Woodside Fire Protection District and Los Altos Hills Fire District to enhance our presence and efforts towards public education and will support residents in the pursuit of participation Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 34  Packet Pg. 110 of 113  Finding 1: While the City has made significant investments in and has strong programs aimed to prevent and mitigate wildfire risks; we noted some areas for improvement including enhancing community outreach and engagement. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) will work with local Foothills community to attain and maintain Firewise CAL FIRE to ensure service provision continues into the future. Agree understand that operationally this may not be feasible since it would add administration obligations for an outside agency. The summer of 2025 will be the third year that CAL FIRE assists the City of Palo Alto with hazardous fuel removal. CAL FIRE provides similar services for multiple agencies in the county (San Jose, Morgan Hill) without a contract. Staff will seek this formalization to ensure stability and continuity, though it may be infeasible if CAL FIRE does not agree to a formal contract. CAL and outreach plans document coordination efforts between Office of Emergency Services (OES), Fire and CPAU to ensure information is consistently and regularly provided to residents. Agree Utilities, CMO departments. Staff will look to update the City’s existing plans and hazard-specific annex documents ensuring communication of information is consistent and timely, reflecting the practices in place. The existing EOP identifies communication protocols and responsibilities in the event of a disaster but could add details to formalize wildfire preparedness and outreach. The leadership team reviews all scheduled community events and engagement points on a monthly basis, including educational events for seasonal events such as floods and wildfires. A unified wildfire preparedness effort among departments to build community awareness, offering tools and tips, and sharing online resources already includes the following: annual door hangers, utility bill inserts, general emergency services communications such as continued promotion of AlertSCC, the City’s emergency alert system, annual test of Alert SCC, and annual community presentations on wildfire preparedness all available on the ‘Ready, Set, Go!” web resource referenced in the report. Annually, OES and PAFD host public education Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 35  Packet Pg. 111 of 113  Finding 2: Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, training, after action report recommendation implementation, and communication efforts. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) with the majority of FEMA guidance; however, they would be strengthened by incorporating a more comprehensive revision history and an enhanced review process. The City should also review its evacuation plans and consider if plans could be enhanced by reviewing best practices in other cities such as establishing evacuation locations and sheltering agreements with neighboring the City’s published emergency plans are timely completed with revision histories clearly documented, beginning with the current update of the EOP underway. The City has evacuation maps available on the OES website and all public education materials and sessions advise residents of the location and content of the resources. PAFD and OES continue to utilize Genasys (formally Zonehaven) software that notifies residents in a particular zone of evacuation warnings and orders related to natural and human caused disasters: what is happening, where to evacuate, etc. which also includes pre-approved messaging in the platform. more formally track and monitor findings and recommendations identified during training exercises and in emergency incident AAR recommendations to ensure needed improvements are made and issues are timely resolved incidents, though the outcomes of these are tracked differently depending on the nature of the incident or training. For tabletop exercises, OES regularly conducts citywide AARs for training exercises and incidents. OES reviews and follows-up on necessary improvements identified in the AARs, however, to instill further rigor, OES will implement a post-AAR process review every six months until resolution of identified action items for final closure. PAFD routinely conducts AARs following major incidents, which are then reviewed by executive command staff. Depending on any identified areas for improvement, such as further training or policy updates, the Deputy Chief over operations is responsible for ensuring completion of applicable follow-up steps including additional feedback to departments increase resident registration in the County’s emergency alerting system (AlertSCC). OES, Fire engagement, notification, and education activities and to increase AlertSCC sign ups. This is prominent on many pages of the City’s website, a recurring item in digital newsletters and printed outreach and Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 36  Packet Pg. 112 of 113  Finding 2: Overall, the City has a strong emergency response plan but should consider if improvements could be made to evacuation planning, training, after action report recommendation implementation, and communication efforts. Key Recommendation Concurrence Responsible Department(s) Action Plan Target Date (calendar year) homeowner associations, and local businesses to disseminate wildfire education materials and encourage participation in City programs and the County’s emergency alert system. message provided at community events through tabling. An annual AlertSCC test is scheduled citywide to encourage more registrations. Staff agree that continuing to support participation in this program is important, and will continue to promote AlertSCC registrations in various City engagement efforts. Note that the City continues to be ahead when compared to the Countywide 10% opt-in level. Last year, as a result of communications efforts, over 7,000 City contacts opted into receive emergency alerts. Furthermore, staff agree and will continue to partner with schools, Palo Alto Neighborhoods, and local businesses to share solution for staff to more easily access, track and monitor the status of all mutual aid agreements, including active dates, renewal deadlines, and responsible contacts for updates. For example, a centralized tracking system for mutual aid agreements would provide clarity on the status of each agreement, preventing lapses in mutual aid coverage and ensuring that expired agreements are addressed promptly. Agree the CA Master Mutual Aid Agreement. This includes a list of mutual aid response disciplines, coordinating agencies, and specific elements included, e.g. fire & rescue, search and rescue, emergency management, etc. Although current mutual aid agreements for fire services are retained by the Fire Department in current operations, staff agree that a central repository of auto-aid agreements will be kept with emergency protocol documentation as an appendix/reference document, for broader and more ready accessibility in an emergency. A tracking system is not needed as all auto aid agreements within Santa Clara County agencies are current and have no expiration dates. Locally, the Santa Clara County XSC Mutual Aid Plan is reviewed and updated annually. San Mateo County fire chiefs are looking at the details of the mutual aid agreements in the County to review operational impacts countywide. The auto aid agreements with Woodside Fire Protection District and Menlo Park Fire, both of which are in San Mateo County, do have end dates Item 1 Attachment A - Emergency Preparedness - Wildfire Audit Report        Item 1: Staff Report Pg. 37  Packet Pg. 113 of 113