City Council - September 23, 2024

Staff outlines procurement fixes as council seeks more disclosure

Palo Alto staff laid out a schedule for addressing four procurement-audit recommendations after council members asked for implementation dates and clearer contract reporting. Staff said an OpenGov intake and checklist process is planned for all departments in December 2024, a purchasing-manual update is planned for November, needs-assessment documentation is being added immediately and review of duplicate-vendor controls is continuing.

The audit tested 50 contracts and concluded that the city largely followed competitive-bidding requirements while identifying six documentation-related deficiencies. Its recommendations focused on award documentation, the purchasing manual, formal needs assessments and market analysis, and duplicate vendor records. The audit identified 28 duplicate vendors in the master list.

In follow-up work on 11 sampled contracts, the auditor said two lacked paperwork supporting an exemption from competitive bidding. Staff responded that exemptions defined directly in the Municipal Code do not require the separate approval form used for exemptions that depend on staff judgment.

Council members also focused on solicitations that drew only one bid and asked future staff reports to show bid ranges, single-bid situations, disqualifications and prior vendor performance. Staff said vendors commonly cited limited capacity or a lack of relevant products or expertise for not bidding, and said it would consider more specific bid disclosures. Council also requested a comparison of Palo Alto’s single-bid rate with other cities.

Council postpones shift to per-square-foot housing impact fees

The council removed an ordinance changing residential park, community center and library impact fees from the consent calendar and deferred it to a date uncertain. The proposal would replace per-unit charges with fees calculated by square footage.

Public commenters questioned whether the proposed structure would preserve or worsen differences between fees on single-family and multifamily housing. They also asked how the formula would treat rebuilds, additions and accessory dwelling units, and argued that fee design can affect housing costs.

Staff will work with the mayor and vice mayor to identify a future date for the proposal. No final vote on the ordinance occurred.

Council approves resiliency contracts amid demands for performance data

After removing the impact-fee item, the council approved the remaining consent calendar, including four professional-services contracts for on-call work supporting the city’s Reliability and Resiliency Strategic Plan. The contracts with Buro Happold, EcoMotion, Energeia and Energy and Environmental Economics, Inc. may run for up to five years. One council member said their combined value was about $1.2 million.

Council members objected that the staff materials did not provide comparable bid ranges or sufficiently clear scopes, and they asked for future contract reports to include past vendor performance, including whether work was completed as promised and on time. A staff official said performance expectations can be written into contracts but that the city would need to examine potential liability before including vendor assessments in staff reports.

Primary sources

Watch the meeting on YouTube · Read the official meeting agenda