HomeMy WebLinkAbout2025-05-28 Policy & Services Committee Agenda PacketPOLICY AND SERVICES COMMITTEE
Special Meeting
Wednesday, May 28, 2025
Community Meeting Room & Hybrid
6:00 PM
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ACTION ITEMS
1. Recommend City Council Approve the Office of the City Auditor Annual Risk Assessment
and FY 2026 Audit Plan and Corresponding Task Orders
2. Workplan for Developing and Implementing Best Practices in Consultant Management
3. Receive the Nonprofit Partnership Workplan Phase I Applications in Advance of their
June 10, 2025, Evaluation and Recommended Awards
FUTURE MEETINGS AND AGENDASMembers of the public may not speak to the item(s)
ADJOURNMENT
2 May 28, 2025
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3 May 28, 2025
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Auditor
Meeting Date: May 28, 2025
Report #:2502-4196
TITLE
Recommend City Council Approve the Office of the City Auditor Annual Risk Assessment and FY
2026 Audit Plan and Corresponding Task Orders
RECOMMENDATION
The Office of the City Auditor recommends that the Policy and Services Committee recommend
the City Council approve the following reports:
1. Fiscal Year 2025 Annual Risk Assessment Report
2. Fiscal Year 2026 Annual Audit Plan Report
EXECUTIVE SUMMARY
Baker Tilly, serving as the City Auditor, surveyed City Council, Executive Leadership Team and
staff members about citywide and departmental risks. We received responses from 11
departments across the organization. Baker Tilly analyzed the results of these responses and
other data and information gathered from industry associations and publications.
Identified risks were scored and then ranked based on likelihood and impact. The FY2026 Audit
Plan was prepared based on the results of the FY2025 risk assessment and other relevant
factors such as other planned assessments and studies.
BACKGROUND
The Palo Alto Municipal Code (Section 2.08.1301) requires the City auditor prepare and submit
an annual audit plan to the City Council for review and approval. In its capacity serving as the
City Auditor function, and in accordance with Baker Tilly’s agreement with the City, Baker Tilly
performed a citywide risk assessment (Task 1 of the agreement2). The purpose of the
1 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-60361
2 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2020-2/id-11624.pdf?t=64761.15
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assessment was to identify and prioritize risks to develop the annual audit plan (Task 2). During
the risk assessment, Baker Tilly assessed a wide range of risk areas, including strategic, financial,
technological, human capitol, operational, reputational, economic, and including compliance
risk categories.
ANALYSIS
Baker Tilly will provide a presentation to the Committee to discuss the results of the risk
assessment and recommend the Committee recommend approval of the attached risk
assessment report by City Council. Baker Tilly will also present the proposed audit plan and ask
that the Committee recommend approval of the attached FY2026 audit plan report and
associated task orders by City Council.
For Baker Tilly to execute the approved audit plan, the Task Orders will need to be signed by
the Policy & Services Committee Chair upon approval of the audit plan by City
Council. Furthermore, one of the OCA’s responsibilities is to follow up on management’s
corrective actions. The follow-up activities require periodic inquiries with management on
outstanding corrective actions and verifying implementation of the corrective actions as well as
testing of the effectiveness of the implemented controls.
FISCAL/RESOURCE IMPACT
The timeline for the risk assessment and audit plan is for FY2026 with audits commencing in
July and August 2025 and anticipated completion in Spring 2026. The proposed audits in the
audit plan are within the contract amount for FY2026.
STAKEHOLDER ENGAGEMENT
The Office of the City Auditor conducted a survey of City Council, Executive Leadership Team,
and key management members receiving responses from 11 departments across the City.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the audit activities do
not involve any commitment to any specific project which may result in a potentially significant
physical impact on the environment. CEQA Guidelines section 15378(b)(4). Council action on
this item is not a project as defined by CEQA because the audit activities do not involve any
commitment to any specific project which may result in a potentially significant physical impact
on the environment. CEQA Guidelines section 15378(b)(4).
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ATTACHMENTS
Attachment A: FY 2025 Risk Assessment Report
Attachment B: FY 2026 Annual Audit Plan
APPROVED BY:
Kate Murdock, City Auditor
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May 15, 2025
City of Palo Alto
Office of the City Auditor
FY2025 Annual Risk Assessment
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Attachment A - FY 2025
Risk Assessment Report
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Contents
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global
network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are
not licensed CPA firms.
INTRODUCTION...............................................................................................................1
RISK ASSESSMENT APPROACH...................................................................................2
RISK ASSESSMENT RESULTS......................................................................................3
APPENDICES...................................................................................................................9
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Risk Assessment Report
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Introduction
Overview
According to City Ordinance of the City of Palo Alto (the City), the mission of the Office of the City Auditor (OCA)
is to promote honest, efficient, effective, economical, and fully accountable and transparent city government. To
fulfill this mission, the OCA conducts performance audits and performs financial/operational analyses of
city departments, programs, services, or activities as approved by the City Council. (Section 2.08.130). In its
capacity serving as the City Auditor function, and in accordance with Baker Tilly’s agreement with the City (Task
#1 of the agreement), Baker Tilly Advisory Group, LP (Baker Tilly) conducted the fiscal year (FY) 2025 citywide
risk assessment in order to develop the FY2026 annual audit plan (Task #2).
The California Government Code Section 1236 requires all cities that conduct audit activities to conduct their
work under the general and specified standards prescribed by the Institute of Internal Auditors (IIA) or the
Government Auditing Standards (GAO) issued by the Comptroller General of the United States, as appropriate.
According to the IIA Standard 2010, the head of internal audit function “must establish a risk-based plan to
determine the priorities of the internal audit activity, consistent with the organization’s goals” and consider the
input of senior management and a governing board.
The purpose of the risk assessment is to develop an internal audit plan that assigns internal audit resources to
the activities that add the most value to the City. The risk assessment process involves identifying, measuring,
and prioritizing risks associated with the audit universe (list of specific departments, functions, processes,
programs, etc. that can be subject to an audit). Risk is defined as “the possibility of an event or condition
occurring that will have an impact on the ability of an organization to achieve its objectives.”1
Due to management changes in the OCA at the end of FY2024, the FY2024 Risk Assessment was delayed and
presented to City Council for approval in December 2024. As the FY2025 risk assessment is being conducted
just 6 months later, the OCA conducted an assessment process to preserve City resources. The OCA surveyed
City Council, Executive Leadership Team and other key management staff across the organization. OCA
received responses from 11 departments. This report summarizes our risk assessment methodology, analysis,
and results. The FY2026 annual audit plan is based on the results of this risk assessment.
Through the risk assessment, we observed certain strengths of the City. Key strengths include:
Commitment to public service by a dedicated and highly professional management team
High value placed on efficient and effective government
Focus on strategic planning and implementation
Demonstrated investment in innovation and commitment to sustainability
Dedication to continuous improvement
Risk Assessment Process Considerations
The starting point of internal auditing is to conduct a risk assessment that is the basis for determining internal
audit activities. However, it is not a one-size-fits-all process. The scope and complexity of the risk assessment
are affected by various factors such as the maturity level of the internal audit function’s products and services,
the organization’s enterprise risk management efforts, coordination with other monitoring and risk management
functions, and the stakeholders’ expectations. As every organization is subject to a changing environment, the
results of the annual risk assessment represent the information considered at the time of the assessment.
In addition to the annual macro-level risk assessment, the internal audit function is required to perform an
engagement-level risk assessment when starting each audit listed in the approved audit plan. The IIA Standard
2200 states, “Internal auditors must develop and document a plan for each engagement, including the
engagement’s objectives, scope, timing, and resource allocations. The plan must consider the organization’s
strategies, objectives, and risks relevant to the engagement.”
1 Rick A. Wright Jr., CIA, “The Internal Auditor’s Guide to Risk Assessment” The Institute of Internal Auditors Research Foundation (IIARF),
2018
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Risk Assessment Approach
Baker Tilly’s risk assessment approach this year focused on gathering information from the following inputs:
•Surveying City Council, Executive Leadership Team members and other key management staff
•Analyzing key documents such as City Council Priorities, budget documents, the annual comprehensive
financial report, and other relevant documents
•Updating the risk assessment matrix with the gathered information
•Scoring the auditable units (listed in Appendix A) in the risk assessment matrix based on the likelihood
and impact of potential adverse events
•Identifying potential internal audit topics for the auditable units with high-risk scores
•Summarizing the approach and results for presentation
At the start of our contract with the City, Baker Tilly conducted an initial comprehensive risk assessment in
FY2021 by interviewing all Council Members and Executive Leadership Team (ELT) members to create a risk
assessment matrix. Each year, this matrix is updated to redevelop a comprehensive picture of the risk
landscape which is continuously changing. For FY2025, Baker Tilly conducted a survey of City Council, ELT and
other management staff, as well as meeting with available City Council members to identify strategic and
operational challenges and risks.
While the risk assessment primarily measures inherent risk (the risk without mitigating controls/factors) for each
risk factor, it also considers specific risks based on the above information and the City’s processes, controls,
and other factors surfaced through internal audit activities. Using the information gathered, OCA identified risks
and determined the likelihood and impact of those risks.
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Risk Assessment Results
Department Descriptions and Key Risk Areas
When identifying risk areas throughout the City, Baker Tilly considered each department and associated risks.
Based on the concerns described by interviewees, departments’ functions, and their inherent risks, Baker Tilly
identified the auditable risk areas for each department. Below is an overview of the City’s departments and their
key risk areas.
Administrative Services
The Administrative Services Department provides financial and
analytical support to the City. Departmental functions include
finance and accounting, purchasing, administration, budget, real
estate, and others.
Key Risk Areas
Purchasing Card Program
Procurement Process
Property Management
Contract & Consultant Oversight
City Attorney’s Office
The City Attorney’s Office provides legal services to the City,
including providing legal advice and training to City leaders,
negotiating on behalf of the City, drafting contracts and other
legal documents, investigating claims, and defending the City in
litigation
Key Risk Areas
Identification of Legal Risks
Contracts & Legal Documents
Public Records Act
City Clerk’s Office
The City Clerk serves as a liaison between the public and City
Council. Office functions include Public Records Act requests,
public hearings, local elections, board and commission
recruitments, record management, and others.
Key Risk Areas
Election Administration
Record Retention & Management
Council Meeting Management
City Manager’s Office
The City Manager’s Office provides leadership to the City
departments and is responsible for facilitating City Council
legislative actions, managing special interdepartmental projects,
and more. The Communications Office is housed under the City
Manager’s Office and is the primary correspondent between the
City and the public.
Key Risk Areas
Citywide Risk Management
Government Efficiency
Economic Development
Strategic Planning
Consultant Management
Office of Transportation
The Office of Transportation works to enhance quality of life and
improve the safety of the users of all modes of transportation.
The Office is responsible for sustainable transportation systems,
managing parking, and oversees the City’s traffic and
transportation capital improvement projects.
Key Risk Areas
Traffic Safety Improvements
Federal Railroad Administration (FRA)
Quiet Zone
Transit-Related Growth
Community Services Department
The Community Services Departments offers a variety of
services administered through the following three divisions and
the Office of Human Services: Arts and Sciences; Open Spaces,
Parks, and Golf; and Recreation.
Key Risk Areas
Human Services Resource Allocation
Process (HSRAP)
Junior Museum and Zoo (JMZ)
Operation
Equipment & Materials Management
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Fire
The Fire Department oversees emergency response such as
ambulance transports and fire response/rescue, emergency
protection services such as fire prevention, and hazardous
materials planning. The department highlights safeguarding the
community and compassionate care.
Key Risk Areas
Emergency Preparedness (Foothills
Fire Master Plan)
Staffing
Fleet Electrification
Human Resources
The Human Resources (HR) Department is responsible for
recruiting, developing, and retaining a well-qualified and
professional workforce. The Department ensures compliance with
relevant labor laws, adheres to record keeping practices, and
serves as a strategic partner for executive decision making.
Key Risk Areas
Recruitment
Succession Planning
HR Strategy & Risk Management
Workplace Safety
Information Technology
The Information Technology Department's provides innovative
technology solutions that support City departments. The
department oversees IT project management, operations,
enterprise systems, and security services.
Key Risk Areas
- PCI/DSS Compliance
- AMI Implementation
- ERP Upgrade
- Adoption & Integration of New Tech
Library
The Library Department operates five libraries throughout the
City, each offering unique resources. The Library provides
educational programming, multi-cultural events, and large and
diverse book, information and technology resources.
Key Risk Areas
Operations
Events and Programming
Volunteer Engagement
Office of Emergency Services
The Office of Emergency Services is designed to prevent,
prepare for, and recover from various hazards. The Office is
responsible for overseeing various risk management programs.
Key Risk Areas
Emergency Preparedness (Foothills
Fire Mitigation Program; Evacuation
Plans, COOPs, Interlocal Agreements)
Training Compliance
Planning and Development Services
The Planning Department supports the City in land use
development, planning, transportation, housing and
environmental policies, and plans and programs that “maintain
and enhance the City as a safe, vital, and attractive community”.
Key Risk Areas
Building Permit & Inspection Processes
Building Permit & Inspection Fees
Zoning Ordinance
Code Enforcement
Long Range Planning
Below Market Rate Housing
Police
The Police Department oversees technical services such as
dispatch and record management, field services such as patrol
and emergency response, and animal control. The Police
Department also places a high value on community relations.
Key Risk Areas
Crime Reduction
Psychiatric Emergency Response Team
(PERT) Program
Safety and Wellness
Training
Staffing
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Overall Risk Scoring Distribution
Baker Tilly structured the audit universe based on the department/division/program from the budget document
and management’s feedback, which resulted in 96 auditable units (Appendix A). We scored them based on the
information gathered for each risk factor related to the likelihood, impact, or fraud. Appendix B lists the risk
factors, definitions, and scoring method. The maximum score for an auditable unit is 30. The following chart
shows the distribution of overall risk scoring.
Baker Tilly rated the auditable units as follows:
•High Risk – Scores 14 and above
•Moderate Risk – Scores more than 9 and less than 14
•Low Risk – Scores below 9
Listed in the following pages are the auditable units with a score over 12 (out of 30) based on our scoring. The
list includes 26 functions rated as high risk (with a score between 14 and 30) and 49 functions rated as
Public Works
The Public Works Department is broken into four divisions:
Engineering, Airport, Public Services, and Environmental
Services. The Divisions are responsible for a variety of tasks
including design and implementation of capital projects,
maintenance of City-owned and leased structures, and
management of the solid waste programs.
Key Risk Areas
Wastewater Treatment Capital Program
The Americans with Disabilities Act
(ADA) Compliance
Flood Protection Capital Project
Fleet Operations
Airport Operations
Utilities
The Utilities Department owns and operates electric, gas, water,
wastewater and fiber optic services to the City. The City
purchases all their power from external sources. The mission of
the Department is to “provide safe, reliable, environmentally
sustainable and cost effective services.”
Key Risk Areas
Power Purchase Agreements
Utility Billing
Fiber Optics Billing & Rates
Rate Setting and Adjustment
Utility Asset Management
Reserves
21
49
26
2 - 8 (LOW)9 - 13 (MODERATE)14 - 30 (HIGH)
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moderate risk (with a score between 9 and 14). In determining the audit activities to be performed in FY2026,
we further evaluated specific risks and functional areas and considered risk-based priorities as well as other
factors such as requirements by law or regulation, timing of activities, special projects, and requests from City
Council and management. The proposed audit plan will be included in a separate FY2026 Annual Audit Plan
Report.
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Assessment Report
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Assessment Report
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Appendix A: Resumes
Appendices
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Appendix A: Audit Universe
City Attorney’s Office
Administration
Consultation and Advisory
Litigation and Dispute Resolution
Official and Administration Duties
City Clerk’s Office
Administration
Administrative Citations
Council Support Services
Election/Conflict of Interest
Legislative Records Management
City Manager’s Office
Administration and City Management
Economic Development
Public Communication
Administrative Services Department
Accounting
Administration
Office of Management and Budget
Printing and Mailing
Purchasing
Real Estate
Treasury/Revenue Collection/Warehouse
Community Services Department
Administration and Human Services
Animal Shelter
Aquatics
Arts and Sciences
Open Space, Parks and Golf
Recreation and Cubberley
Fire Department
Administration
Emergency Response
Environmental Safety Management
Records and Information Management
Training and Personnel
Human Resources Department
Administration, Employee Org Development and HR Systems
Benefits and Compensation
Employee and Labor Relations
Recruitment
Risk Management, Safety, Workers’ Compensation
Information Technology Department
Enterprise Systems
Office of the CIO
Operations
Project Services
Library Department
Administration
Collection and Technical Services
Public Services
Office of Emergency Services
Emergency Services
Office of Transportation
Administration
Parking Districts
Programs
Special Revenue Funds
Planning and Development Services Department
Administration
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Building
Development Services
Planning and Transportation
Special Districts
Police Department
Administration
Animal Control
Field Services
Investigations and Crime Prevention Services
Law Enforcement Services
Parking Services
Police Personnel Selection
Technical Services
Traffic Services
Department of Public Works
Administration
Airport
Engineering Services
Refuse
Storm Drainage
Streets
Structures and Grounds
Sustainability
Trees
Vehicle Replacement and Maintenance
Wastewater Treatment
Utilities Department
Electric Administration
Electric Customer Service
Electric Demand Side Management
Electric Engineering (Operating)
Electric Operations and Maintenance
Electric Resource Management
Fiber Optics Administration
Fiber Optics Customer Service
Fiber Optic Operations and Maintenance
Gas Administration
Gas Customer Service
Gas Demand Side Management
Gas Engineering (Operating)
Gas Operations and Maintenance
Gas Resource Management
Wastewater Collection Administration
Wastewater Collection Customer Service
Wastewater Collection Engineering (Operating)
Wastewater Collection Operations and Maintenance
Water Administration
Water Customer Service
Water Engineering (Operating)
Water Operations and Maintenance
Water Resource Management
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Appendix B: Risk Factor Definition
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May 15, 2025
City of Palo Alto
Office of the City Auditor
FY2026 Annual Audit Plan
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Annual Audit Plan
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Contents
Baker Tilly Advisory Group, LP and Baker Tilly US, LLP, trading as Baker Tilly, operate under an alternative practice structure and are members of the global
network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. Baker Tilly US, LLP is a licensed CPA firm that
provides assurance services to its clients. Baker Tilly Advisory Group, LP and its subsidiary entities provide tax and consulting services to their clients and are
not licensed CPA firms.
INTRODUCTION...............................................................................................................1
RISK ASSESSMENT RESULTS......................................................................................3
PROPOSED AUDIT PROJECTS FOR FY2024................................................................4
APPENDICES...................................................................................................................6
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Annual Audit Plan
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Introduction
Introduction
The purpose of the audit activities performed by Baker Tilly Advisory Group, LP (Baker Tilly) as the outsourced
Office of the City Auditor (OCA) for the City of Palo Alto (the City) is “to ensure that city management is using its
financial, physical, and informational resources effectively, efficiently, economically, ethically, and equitably, and
in compliance with laws, regulations, contract and grant requirements, and city policies and procedures”,
according to the Palo Alto Municipal Code (Section 2.08.130). It requires the City Auditor to prepare an annual
audit plan for the City Council’s approval.
Conformance with Local Ordinances and Standards
Section 2.08.130 of the Palo Alto Municipal Code defines that the mission of the OCA is to promote honest,
efficient, effective, economical, and fully accountable and transparent city government. Audits are conducted
and non-audit services provided in accordance with Government Auditing Standards, as established by the
Comptroller General of the United States, Governmental Accountability Office.
The following duties of the City Auditor exist regarding the plan and scope of internal audits.
Palo Alto City Charter
Article IV Sec. 12 requires the City Auditor to perform the following:
–Conduct audits in accordance with a schedule approved by the City Council and may conduct
unscheduled audits from time to time.
–Conducts internal audits of all the fiscal transactions of the City.
Title 2 Administrative Code
Section 2.08.130 requires the City Auditor to perform the following:
–Prepare an annual audit plan for City Council approval.
–Identify the preliminary objectives of each audit to be performed, reflecting the purpose of the
engagement and a preliminary description of the areas that may be addressed.
–Conduct performance audits and perform non-audit services of any City department, program, service,
or activity as approved by the City Council.
California Government Code
Section 1236 requires all cities that conduct audit activities to conduct their work under the general and
specified standards prescribed by the Institute of Internal Auditors (IIA) or the Government Auditing
Standards (GAO) issued by the Comptroller General of the United States, as appropriate.
Audit Activity Type
The OCA will conduct performance audits and perform financial/operational analyses of any City department,
program, service, or activity as approved by the City Council in accordance with the Baker Tilly agreement.
Performance Audits
According to the Government Auditing Standards (GAO-18-568G, Section 1.21 and 1.22, page 10-12),
performance audits provide objective analysis, findings, and conclusions to assist management and those
charged with governance and oversight with, among other things, improving program performance and
operations, reducing costs, facilitating decision making by parties responsible for overseeing or initiating
corrective action, and contributing to public accountability. Performance audits may include the following four
(4) audit objectives:
–Program effectiveness and results
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INTRODUCTION
–Internal control design and effectiveness
–Compliance with laws, regulations, and policies
–Prospective analysis
Audit Planning Considerations
While maintaining its independence and objectivity in accordance with standards, the City Auditor considers a
variety of matters when developing the Annual Audit Plan, including but not limited to:
–Risk Assessment – the OCA performed a risk assessment and summarized the results in a separate
report (Task #1). Generally speaking, audit activities target high(er) risk areas. The results are shown
on the following page.
–Ability to Add Value – audit seeks to add value through independent and objective analysis.
–City Council – the City Auditor reports to the City Council and seeks input on audit priorities.
–Coverage and Prior Audits – the City Auditor considers prior audits conducted by the OCA, the financial
audit, and other audit and consulting reports recently issued.
–“Ripeness” and On-Going Initiatives – certain risk areas may be addressed through operational
activities, which could mean they are not ripe for audit to add value.
–Scheduling – the City Auditor takes into consideration the timing of an audit and other on-going
initiatives that directly relate. Putting an undue burden on City staff may exacerbate the risk at hand or
other interrelated risks.
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Risk Assessment Results
The OCA performed a citywide risk assessment to plan for FY2026 audit activities and documented the
methodology and the detailed results in a separate Risk Assessment Report. In summary, we identified the
following areas rated as High or Moderate risks. In determining the audit activities to be performed in FY2026,
we further reviewed these risks and functional areas and considered the matters listed in the previous page.
Proposed Projects for FY2026
Summary
The proposed audits, special advisory projects and follow-up project for FY2026 are listed on the next page. The
projects were selected from the auditable units that were rated as High or Moderate in the results of our risk
assessment and selected based on some factors such as risk rating, the pervasiveness of the processes or
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PROPOSED PROJECTS FOR FY2026
controls, the audit coverage, the timing of projects, and the value-adding activities that help the City enhance the
ability to manage risks, strengthen accountability, and improve efficiency and effectiveness.
The preliminary audit objectives are described for each audit listed. These objectives and scope will be further
defined based on the result of the engagement level risk assessment performed at the beginning of each audit.
Amendments to this audit plan may be proposed during FY2026 in response to changes in the City’s
environment such as organizational structure, operations, risks, systems, and controls.
For each audit, a task order is submitted to the City Council for approval before an audit commences. We
prepared seven task orders which are included in the Appendix. The OCA is seeking approval from the City
Council to begin all seven projects over the course of the first quarter of FY2026. In addition, the OCA is leaving
a larger “ad hoc” budget this year to account for projects that may be requested later in the year.
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Proposed Audit Plan for FY2026
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Plan
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Appendix A: Resumes
Appendices
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.35 Below Market Housing Rate 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. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY25-4.29
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: July 1, 2025 COMPLETION: May 31, 2026
4. TOTAL TASK ORDER PRICE: $97,575
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 1
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Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•Services and Deliverables To Be Provided
•Schedule of Performance
•Maximum Compensation Amount and Rate Schedule (As Applicable)
•Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting an internal audit of the Below Market Rate Housing 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) if the Below Market Rate Housing Program
maximizes the creation and retention of affordable housing stock in comparison to similar programs, and
(2) determining whether services are provided to low- and moderate-income households in a timely manner
that meets the needs of the community. Finally, the audit will evaluate the administration of the Below
Market Rate Housing 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 Program
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•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 samples of applications and projects to determine if in compliance with rules and
regulations
•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: July 1, 2025
Anticipated End Date: May 31, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $97,575.
The not-to-exceed budget is based on an estimate of 475 total project hours, of which a minimum of 70 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.36 Fleet Resources & Sustainability / Climate Action Plan
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of
the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into
this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional,
technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY25-4.30
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: July 1, 2025 COMPLETION: May 31, 2026
4. TOTAL TASK ORDER PRICE: $90,255
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 1
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Annual Audit Plan
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Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•Services and Deliverables To Be Provided
•Schedule of Performance
•Maximum Compensation Amount and Rate Schedule (As Applicable)
•Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting 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 is effectively and efficiently
managing fleet resources; and (2) if the City is on track to achieve City Fleet Sustainability and Climate
Action Plan goals established for 2030. 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 Fleet & S/CAP Programs
•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
•Gather data on fleet vehicles, including maintenance, disposal, driver training and safety programs
•Analyze fleet utilization to identify underused or overused vehicles
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•Analyze maintenance and repair records
•Assess progress in achieving S/CAP goals
•Other steps as identified during planning
•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: July 1, 2025
Anticipated End Date: May 31, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $90,255.
The not-to-exceed budget is based on an estimate of 440 total project hours, of which a minimum of 60 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete some fieldwork steps for this audit on-site if the City and Baker Tilly mutually determine it
will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses
for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.37 Traffic Safety Improvements
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: July 1, 2025 COMPLETION: April 30, 2026
4. TOTAL TASK ORDER PRICE: $97,575
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 1
Attachment B - FY 2026
Annual Audit Plan
Item 1: Staff Report Pg. 32 Packet Pg. 36 of 59
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Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•Services and Deliverables To Be Provided
•Schedule of Performance
•Maximum Compensation Amount and Rate Schedule (As Applicable)
•Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly’s approach to conducting 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 if the City is effectively and efficiently
designing and implementing improvements to ensure traffic safety for residents. 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 Office of Transportation and Public Works Departments as
they relate to the design and implementation of traffic safety improvements
•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
•Gather data on traffic safety programs and initiatives including calming measures, engineering
design and implementation, data collection, performance measurement and public education
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•Analyze project plans and justification and evaluate design criteria
•Analyze cost estimates and budgeting
•Assess stakeholder input and engagement
•Assess installation/implementation of traffic safety features
•Assess performance data
•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: July 1, 2025
Anticipated End Date: April 30, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $97,575.
The not-to-exceed budget is based on an estimate of 475 total project hours, of which a minimum of 70 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete some fieldwork steps for this audit on-site if the City and Baker Tilly mutually determine it
will be beneficial to perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses
for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
Item 1
Attachment B - FY 2026
Annual Audit Plan
Item 1: Staff Report Pg. 34 Packet Pg. 38 of 59
16
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.38 City of Palo Alto Utilities Reserves
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of
the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into
this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional,
technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY25-4.32
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: July 1, 2025 COMPLETION: December 31, 2025
4. TOTAL TASK ORDER PRICE: $70,815
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
Item 1
Attachment B - FY 2026
Annual Audit Plan
Item 1: Staff Report Pg. 35 Packet Pg. 39 of 59
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 assessment of the City of Palo Alto Utilities Reserves (3) primary steps:
•Step 1: Assessment Planning
•Step 2: Fieldwork 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 audit
objective and to solidify mutual understanding of the assessment scope, objectives, 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
•Prepare an assessment program
o Refine assessment objectives and scope
o Identify the procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the assessment and kick-off meeting with key stakeholders
o Discuss assessment 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 assessment program to gather information, interview
individuals, and analyze the data and information to obtain sufficient evidence to address the assessment
objectives. The preliminary objective is to assess the City of Palo Alto Utilities supply, operating, and
capital expenditure reserve policies and provide related benchmarking and best practices information:
•Interviewing the appropriate individuals to gain an understanding of current procedures including
how the Utility projects peak demand, calculates reserve margins, models demand growth, etc.
•Analyze policies and procedures related to reserves
•Assess compliance with regulatory reserve margin requirements and other relevant standards
•Compare processes and controls against best practices
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Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing observations and recommendations based on the supporting evidence gathered
•Validating observations with appropriate individuals
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft assessment report and conduct a closing meeting with key stakeholders
o Discuss the observations and recommendations
o Discuss management responses
•Obtain written management responses if appropriate 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:
•Assessment Report
•Policy & Services Committee Assessment Report Presentation
Schedule of Performance
Anticipated Start Date: July 1, 2025
Anticipated End Date: December 31, 2025
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $70,815.
The not-to-exceed budget is based on an estimate of 345 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
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.39 Consultant Management Practices
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of
the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into
this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional,
technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY25-4.33
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: August 1, 2025 COMPLETION: March 31, 2026
4. TOTAL TASK ORDER PRICE: $57,165
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
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 City Consultant Management Practices includes three (3)
primary steps:
•Step 1: Audit Planning
•Step 2: Fieldwork 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 assessment scope, objectives, 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
•Prepare an assessment program
o Refine assessment objectives and scope
o Identify the procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the assessment and kick-off meeting with key stakeholders
o Discuss assessment 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 assessment
objectives. The preliminary objective is to assess and provide best practice frameworks for when to engage
consulting services and how to best project manage consulting engagements to optimize results and
deliverables. Steps include:
•Interviewing the appropriate individuals to gain an understanding of the organizational structures,
processes, and controls related to soliciting consulting services and understand outcomes
•Assess challenges the City has experienced with consulting services
•Review best practices and provide recommendation frameworks related to determining when to
engage consulting services vs. keeping services “in house” and project management practices to
optimize consulting project deliverables and results.
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Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing observations and recommendations based on the supporting evidence gathered
•Validating observations with appropriate individuals
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft assessment report and conduct a closing meeting with key stakeholders
o Discuss the observations and recommendations
o Discuss management responses
•Obtain written management responses if appropriate 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:
•Assessment Report
•Policy & Services Committee Assessment Report Presentation
Schedule of Performance
Anticipated Start Date: August 1, 2025
Anticipated End Date: March 31, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $29,440.
The not-to-exceed budget is based on an estimate of 345 total project hours, of which a minimum of 20 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remotely including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.40 Contract Solicitation & Authority Levels
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of
the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into
this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional,
technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY25-4.33
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: August 1, 2025 COMPLETION: February 28, 2026
4. TOTAL TASK ORDER PRICE: $54,165
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
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 City Consultant Management Practices includes three (3)
primary steps:
•Step 1: Audit Planning
•Step 2: Fieldwork 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 assessment scope, objectives, 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
•Prepare an assessment program
o Refine assessment objectives and scope
o Identify the procedures to be performed and the evidence to be obtained and examined
•Announce the initiation of the assessment and kick-off meeting with key stakeholders
o Discuss assessment 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 assessment
objectives. The preliminary objective is to assess and benchmark the City’s current solicitation and
authority thresholds. Steps include:
•Interviewing the appropriate individuals to gain an understanding of current thresholds and
authority levels
•Conduct a benchmarking study to determine thresholds in similar sized cities
•Assess best practices in establishing thresholds
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Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize assessment working papers, prepare and
review a draft report with stakeholders, and submit a final report for management response. Tasks include:
•Developing observations and recommendations based on the supporting evidence gathered
•Validating observations with appropriate individuals
•Complete supervisory review of working papers and a draft audit report
•Distribute a draft assessment report and conduct a closing meeting with key stakeholders
o Discuss the observations and recommendations
o Discuss management responses
•Obtain written management responses if appropriate 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:
•Assessment Report
•Policy & Services Committee Assessment Report Presentation
Schedule of Performance
Anticipated Start Date: August 1, 2025
Anticipated End Date: March 31, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $54,165.
The not-to-exceed budget is based on an estimate of 285 total project hours, of which a minimum of 30 are
estimated to be completed by the City Auditor.
Reimbursable Expenses
We plan to complete all work remote including all interviews and documentation review. However, during the
planning and fieldwork phases of this audit, the City and Baker Tilly may mutually determine it will be beneficial to
perform a portion of the work on-site. Given this possibility, Baker Tilly could incur expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $6,500.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $2,000 (1 round trip flight x 2 auditors)
•Ground transportation – $800 (car rental or Uber/taxi)
•Hotel accommodation – $3,000 (2 rooms x 4 nights)
•Food & Incidentals – $2,100
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PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY25-4.41 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. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK ORDER NO.: FY25-4.34
2. CONSULTANT NAME: Baker Tilly Advisory Group, LP
3. PERIOD OF PERFORMANCE: START: July 1, 2025 COMPLETION: June 30, 2026
4. TOTAL TASK ORDER PRICE: $59,390
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________ COST CENTER________________ COST
ELEMENT______________ WBS/CIP__________ PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Chair of the City Council’s Policy and Services Committee
7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
▪SERVICES AND DELIVERABLES TO BE PROVIDED
▪SCHEDULE OF PERFORMANCE
▪MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
▪REIMBURSABLE EXPENSES, if any (with “not to exceed” amount)
8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A
I hereby authorize the performance of the work
described in this Task Order.
APPROVED:
CITY OF PALO ALTO
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of
this Task Order and warrant that I have authority
to sign on behalf of Consultant.
APPROVED:
COMPANY NAME: Baker Tilly Advisory Group,
LP
BY:____________________________________
Name __________________________________
Title___________________________________
Date ___________________________________
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Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•Services and Deliverables To Be Provided
•Schedule of Performance
•Maximum Compensation Amount and Rate Schedule (As Applicable)
•Reimbursable Expenses, if any (With “Not To Exceed” Amount)
Services & Deliverables
Baker Tilly 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: July 1, 2025
Anticipated End Date: June 30, 2026
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $18,255.
The not-to-exceed budget is based on an estimate of 90 total project hours, of which a minimum of 10 are estimated
to be completed by the City Auditor.
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: May 28, 2025
Report #:2505-4619
TITLE
Workplan for Developing and Implementing Best Practices in Consultant Management
RECOMMENDATION
Staff requests Policy & Services Committee review and provide feedback on the workplan to
develop and implement best practices for the City’s consultant management.
BACKGROUND
The City of Palo Alto regularly engages professional consultants for a wide variety of functions.
These include, for example:
•Planning, architectural, engineering, and construction management for capital
improvement projects;
•Specialized and supplemental staffing for land use planning, processing entitlement
applications, building permitting and inspection, as well as other operations;
•Specialized recreation, arts, and enrichment programming for community classes,
summer camps, and other public services;
•Development of studies and plans on a broad range of topics in areas such as economic
development, transportation, and facilities planning.
Attachment A provides, by type, a sampling of consulting services approved by the City Council
in 2024.
The majority of City Council priority objectives rely on consultant services for their timely
completion. The use of consultants is critical to the City’s ability to produce the volume and range
of services expected by the community. At the same time, it is equally important that
circumstances under which consultants are engaged be clearly identified and that the quality of
work products provide the value expected from the engagements.
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The ongoing work effort described here seeks to enhance the clarity and effectiveness of these
engagements. It focuses on elevating the visibility of outsourcing decisions, staff expectations,
and strengthening consultant management protocols.
ANALYSIS
In order to strengthen the City’s approach to consultant engagement and management, this
workplan outlines a structured review of current practices and a path to process improvements.
It should be noted that much of this work is a leading practice. While within local government
management there is a wealth of established practices related to procurement and contract
management practices, topics such as ensuring value in products and building organizational
capacity are seldomly addressed in the comprehensive manner described here.
The overarching goal is to clarify expectations and promote effective, flexible practices that
ensure effective products, meeting organizational needs, and supporting professional growth
among the City’s professional staff. The initial focus will center on professional services related
to studies, plans, and similar scopes of work, with particular attention to the roles and
responsibilities of City project managers and supporting staff. To inform this effort, a working
group composed of representatives from departments that regularly engage consultants will
provide critical feedback and expertise, helping to shape the resulting recommendations.
Core Principles
At the heart of this work is a recognition that contracting is a partnership. Consultants bring
valuable technical and professional expertise, while City staff offer deep familiarity with local
context, including community expectations, data resources, and internal procedures. City staff
are also responsible for ensuring that community and other stakeholders are engaged effectively
in the local context. The effectiveness of consultant engagements depends on balancing these
perspectives through skillful coordination and teamwork.
Project Timeline and Activities
The following key steps and milestones will guide the implementation of this workplan:
1. Review of Current Practices: In December 2024, the City’s Management Fellow conducted
initial interviews with staff across departments. A follow-up questionnaire with refined
and expanded questions will be distributed in April to gather additional insights.
2. Budget Review: As part of the FY 2026 budget development process, the City Manager
and Budget Office led a department-by-department review of contractual services line
items to assess their necessity and identify opportunities where in-house staffing may be
more cost-effective or strategically beneficial.
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3. Practice Improvements: Into the summer, feedback from departments and management
will help identify priority areas for improvement in consultant engagement. This builds on
currently ongoing efforts led by the Administrative Services Department (ASD) and the
City Attorney’s Office with training sessions on contract management.
4. Clarifying Local Knowledge Roles: City staff play a vital role in ensuring that consultants
understand Palo Alto’s specific context. Through the Summer, expectations around
sharing prior work, guiding community engagement processes, and providing historical
knowledge will be articulated more clearly.
5. Identifying Skill and Role Gaps: Into the Fall, this review will also examine where project
managers may require additional training or role clarification to effectively manage
consultant relationships and deliverables, as well as review the workload capacity
required to fulfill these roles.
6. Training and Tools: Through the Fall and into 2026, potential outcomes include the
development of workflow templates, dashboards for progress tracking, and structured
training for project managers in collaboration with Human Resources and relevant
departments.
Consultant Engagement: Input from consultants will be solicited throughout the process to
gather insights into what makes engagements successful from their perspective.
The following paragraphs provide an overview of the typical consultant engagement process and
discuss in more detail the specific areas that have been identified for evaluation.
Annual Budget Cycle Review
As part of the annual budget development process, each department’s proposed consultant
funding levels is reviewed to assess whether those funds might be more effectively allocated to
hiring in-house staff. In some cases, the City outsources as a first step before adding permanent
staff due to concerns around long-term financial commitments and the need to sustain consistent
workloads. However, this practice is subject to strategic review. When consultants perform tasks
that are similar in some respects to those of City employees, the annual budget review provides
an appropriate point at which to consider whether in-house capacity could better serve the City
over time. This informs staffing changes proposed in the City Manager’s Proposed Budget
released every April.
The Decision to Outsource
Currently, the decision to outsource to meet specific project needs is based on the expertise
required and, in some cases, internal capacity. Scopes of service are developed in consultation
with the Administrative Services Department’s Purchasing Division and the City Attorney’s Office.
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Going forward, outsourcing decisions can more explicitly incorporate strategic considerations
such as:
•Does the work demand specialized skills not available internally?
•How could artificial intelligence and other technologies assist in delivering cost-effective
outcomes?
•Would taking on the project in-house compromise other essential priorities?
•Is outsourcing aligned with the City's long-term goals, such as building internal expertise?
•How will effective collaboration between consultants and staff ensure incorporation of
local context and knowledge?
Determining a Scope of Services
Currently, departments typically develop scopes of services through internal processes. Major
projects may also involve City Council review of scopes of services prior to issuance of Requests
for Proposals (RFPs). Practices will be reviewed to determine when further efforts in the
development of scopes of services would be beneficial.
Selecting the Service Provider
In selecting consultants, departments consider not only cost but also expertise, alignment with
project needs, and prior performance. The selection process emphasizes open and fair
opportunities to submit proposals, with a goal of cultivating long-term, collaborative
relationships. Practices will be reviewed to determine whether any enhancements to the
procurement process would be beneficial.
Contract Management
Payments to consultants should align with project milestones or be distributed evenly over the
term of the contract. This ensures accountability and promotes timely progress. Clear contract
terms will be essential to this process.
Performance Management
Effective performance management requires establishing clear standards for deliverables,
timelines, and budget compliance. Regular reviews and prompt resolution of issues are critical,
as is defining an escalation process to address unresolved concerns. The review will focus on
ensuring clear expectations at the contract outset and promoting consistency through regular
check-ins and stronger scope definitions. This will also include staff responsibilities for oversight
and quality assurance during the engagement, while recognizing that consultant engagements
involve a level of independence to be exercised by the consultant and such that staff cannot
direct certain elements of the work. The review will also address methods for identifying and
managing risks that can lead to delays and budget exceedances.
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Closeout and Evaluation
Post-project review can assess whether project objectives were met and identify lessons learned
that can be built on for the future, as well as evaluate consultant performance to provide back
to the provider as well as inform future engagements. The review will address expectations for
such review and implementing practices.
Portions of this report were developed with the assistance of an artificial intelligence tool to
support research and drafting, with no personal or confidential information involved. Content
and conclusions are by the authors.
FISCAL/RESOURCE IMPACT
The activities described in this report are being conducted within existing city resources.
STAKEHOLDER ENGAGEMENT
Staff is seeking feedback through Policy & Services Committee discussion to ensure City Council
perspectives are reflected in the work underway, as well as a forum for broader community input.
As reflected in the workplan, engagement of City staff and the consultant community is an
integral part of ensuring this work is grounded in current practice and results in implementable
conclusions.
ENVIRONMENTAL REVIEW
The work is not a project as defined in the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A: City Council Approved Consultant Contracts 2024
APPROVED BY:
Ed Shikada, City Manager
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Service Provider Description
Contract or
Amendment Value
Safebuilt, Integrated Design 360, CSG Consultants,
4LEAF, True North Compliance Services, TRB and
Associates, West Coast Code Consultants
Development Services On Call Services ‐ Staffing and Subject
Matter Experts: Inspection, Plan Review, Green Building 4,000,000$
Carollo Engineers Regional Water Quality Control Plant Long Range Facilities Plan 2,742,774$
Watry Design Downtown Parking Garage Design 2,403,592$
WaterTalent, LLC Temporary Licensed Water Operator Staffing Services ( 3 years) 1,896,000$
AgreeYa Solutions, Elegant Enterprise‐Wide Solutions,
Forsys, Object Technology Solutions, Techlink Systems,
Zion Cloud Solutions, Inspyr Solutions
IT Consulting 1,540,000$
Wallace Roberts & Todd Downtown Housing Plan 1,508,254$
Carollo Engineers Construction management and inspection for RWQCP 12kV
Electrical Power Distribution Loop (Amend 5)1,314,192$
MuniServices, LLC Tax and Fee Consulting (5 years) 1,161,550$
Park Engineering Electric Construction Inspection (5 years) 925,000$
Cumming Management Group (formerly Nova Partners) Construction Management for PSB & Other Infrastructure Plan 827,418$
Nova Partners, Inc. Construction Management for PSB & Other Infrastructure Plan 766,919$
Lexington, Metropolitan Planning Group, Arnold
Mammarella Architecture and Consulting, Page
Sotherland Page AE, Placeworks, Urban Planning
Partners, Michael Baker International
Planning On Call Services ‐ Staffing and Subject Matter Experts:
Long Range Planning Projects, Application Processing,
Environmental Review
750,000$
Concordia Development of a Revised Master Plan for the Cubberley Site 631,966$
GDS Associates, Inc. Electric and Gas Cost of Service Analysis (5 years) 505,723$
Lexington, Metropolitan Planning Group, Arnold
Mammarella Architecture and Consulting, Page
Sotherland Page AE, Placeworks, Urban Planning
Partners, Michael Baker International
Planning On Call Services ‐ Staffing and Subject Matter Experts:
Long Range Planning Projects, Application Processing,
Environmental Review
500,000$
Kittelson and Associates South Palo Alto Bike/Pedestrian Connectivity Project (2 years) 499,490$
Woodard & Curran Sewer Master Plan Study (2 years) 498,866$
3Di Systems Rental Registry Program 443,256$
BKF Engineers Charleston/Alma Railroad Crossing Plans (5 years) 397,705$
Urban Field Studio Car‐free Streets Study 384,990$
Good City Company Downtown Housing Plan Project Manager 375,522$
Kittelson & Associates Bike and Pedestrian Plan Update 333,945$
A3 Immersive Projection Mapping Production Services for the 2025 Code:ART
Interactive Media Public Art Festival 275,692$
4Leaf, Inc. WGW Construction Inspection (5 years) 264,247$
Michael Baker International, Inc. CDBG Program Administration (2 years) 211,310$
Rincon Consultants California Environmental Quality Act (CEQA) Review of a Revised
Master Plan for the Cubberley Site 202,322$
Townsend Public Affairs, Inc. Legislative Advocacy & Grant Consulting 186,000$
Urban Planning Partners, Inc. Car‐free Ramona Street Design 165,573$
Kimley‐Horn Quiet Zone Study (Churchill, Meadow, Charleston) 162,359$
Rankin Stock Heaberlin Oneal Legal Services 150,000$
Integrated Design 360 Reach Code Development 132,200$
Anne Rosenthal Fine Art Conservation Services 118,624$
HdL Coren & Cone Property Tax Consulting (5 years) 111,800$
BKF Engineers Foothills Nature Preserve Design 109,583$
OIR Group Policing Auditing Services 105,000$
Salas O'Brien RWQCP 12kV Electrical Power Distribution Loop Design (Amend 4) 99,200$
DNV GL USA, Inc Gas Modeling 85,000$
Schaaf & Wheeler Design for 3 stormwater ballot measure projects 77,360$
Sandis Civil Engineers Construction Admin. for Churchill Enhanced Bikeway 59,975$
Matrix Consulting Group Department Fee Study 56,500$
Raftelis Financial Consulting, Inc. Water and Wastewater Collection Cost of Service Analysis (5 years) 48,905$
CSW/Stuber‐Stoeh Engineering University Ave. Streetscape Conceptual Design 25,000$
Hexagon Transportation Consultants Development Review Support 10,000$
Schaaf & Wheeler PSB Stormwater Construction Observation & Certification 9,600$
27,073,412$
ATTACHMENT A
CONSULTING SERVICES APPROVED BY CITY COUNCIL IN 2024
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Attachment A - City
Council Approved
Consultant Contracts
2024
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Policy & Services Committee
Staff Report
Report Type: ACTION ITEMS
Lead Department: City Clerk
Meeting Date: May 28, 2025
Report #:2505-4686
TITLE
Receive the Nonprofit Partnership Workplan Phase I Applications in Advance of their June 10,
2025, Evaluation and Recommended Awards
This will be a late packet report published on May 22, 2025.
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Policy & Services Committee
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: May 28, 2025
Report #:2505-4683
TITLE
Receive the Nonprofit Partnership Workplan Phase I Applications in Advance of the
June 2025 Evaluation and Recommended Awards
RECOMMENDATION
Staff recommends that the Policy and Services Committee receive the Nonprofit Partnership
Workplan Phase I applications and public comment in advance of their June 2025 meeting to
discuss and recommend nonprofit awards to City Council.
BACKGROUND
On March 24, 2025, the City Council approved the Nonprofit Partnership Workplan Phase I
process, a phased approach to enhancing nonprofit partnerships, beginning with process
improvements for nonprofit requests for funding through the FY 2026 City Budget that fall
outside currently established funding processes.
During the May 12, 2025 Study Session on the FY 2026 Budget, the City Council reached
consensus to follow the Finance Committee’s recommendation to allocate $396,000 to support
Phase I of the Nonprofit Partnership Workplan. The Council also recommended that, in
reviewing the applications, the Policy & Services Committee give consideration to previously
funded nonprofits: UNAFF, YCI, Environmental Volunteers, Magical Bridge, and 3rd Thursday.
The application period for the Nonprofit Partnership Workplan Phase I was April 2-May 9, 2025.
This report provides a summary table of applications received in advance of the Policy &
Services discussion in June 2025 and recommendation to Council for award on June 16th.
ANALYSIS
The purpose of this meeting is for the Policy & Services Committee to hear public comment and
discuss how the Committee wishes to review applications and make funding recommendations
to the City Council over the course of two meetings: May 28, 2025 and June 10, 2025. The
workplan schedule assumes the Committee will finalize its nonprofit funding recommendations
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in time to forward for City Council consideration on June 16, 2025. A second staff report for the
June 2025 Committee meeting will be issued, providing scores for applications based on the
recommended rubric, to facilitate the Committee’s discussion. Staff will want to discuss with
the Committee options for structuring the evaluation, such as whether to categorize proposals
by area of service, viability of partial funding, consideration of other City funding (e.g. HRSAP),
and expectations of multiyear commitments. These issues were discussed with the Finance
Committee at the May 20 budget meeting.
The Nonprofit Partnership Workplan Phase I application process closed on May 9, 2025. A total
of 20 applications were received from registered 501 c(3) nonprofit organizations by the
3:00PM deadline totaling $796,589 in funding requests. Two applications were received after
the 3:00PM deadline denoted by a ‘*’ in the table below, though were received within 15
minutes of the deadline with a combined funding request of $22,500. Applications received
can be found in the following link and summary in the table below:
#Organization Name
(organized in alphabetical order)
Received City
Funding in the
Last 2 years
Request
Amount
1 Ada's Café Y $25,000
2 Children's Health Council Y $50,000
3 Dance Action Inc N $5,000
4 DreamCatchers Y $28,643
5 Environmental Volunteers Y $10,780
6 JobTrain N $60,000
7 Karat School Project Y $25,000
8 LifeMoves Y $66,366
9 Loaves & Fishes Family Kitchen Y $15,000
10 Magical Bridge Foundation Y $150,000
11 Midpen Media Center Y $50,000
12 Momentum for Health Y $15,000
13 Museum of American Heritage Y $10,000
14 Musical Memories Foundation, Inc N $5,000
15 Neighbors Abroad *Y $17,500
16 Palo Alto Chamber Foundation Y $46,800
17 Palo Alto Special Education PTA *N $5,000
18 Partners & Advocates for Remarkable Children &
Adults (PARCA)
Y $5,000
19 Peninsula Healthcare Connections Inc Y $35,000
20 United Nations Association Film Festival (UNAFF)Y $45,000
21 Vista Center for the Blind and Visually Impaired Y $99,000
22 Youth Community Services Y $50,000
Total Funding Requests $819,089
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FISCAL/RESOURCE IMPACT
No resources are required to support this discussion and public comment item; however, the
fiscal impact amount is subject to City Council approval to fund the Nonprofit Partnership
Workplan Phase I in the FY 2026 budget. As noted previously, the Finance Committee currently
has recommended allocation of $396,000 for this process, including funding allocations
provided to some of these applicants previously.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement with nonprofit partners is ongoing through dedicated listening
sessions to gather feedback on the nonprofit framework principles and informational sessions
on the proposed Nonprofit Workplan. A dedicated webpage is being maintained to provide up-
to-date information on the Nonprofit Partnership Workplan.
ENVIRONMENTAL REVIEW
City Council action on this item is not a project as defined by the California Environmental
Quality Act (CEQA). CEQA guidelines section 15378(b)(2).
APPROVED BY:
Ed Shikada, City Manager
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