REPORT TO COUNCIL
SUBJECT
Title
Authorize the Mayor to Execute an Agreement with Baker Tilly US LLP in an amount not to exceed $30,000 to Facilitate the Performance Evaluation Process for Council Appointees (City Manager and City Attorney)
Report
BACKGROUND
The City Manager and City Attorney (collectively, the “Council Appointees”) each have an Employment Agreement that establishes the terms and conditions of their employment with the City of Santa Clara. Each agreement requires the City Council to facilitate a performance appraisal process at least once every 12 months, or more frequently as deemed necessary by the City Council. The procedures for conducting Council Appointee performance evaluations are established in City Council Policy 058, Performance Evaluation Process for Council Appointees.
Consistent with City Council Policy 058, staff met with the City Council in closed session to discuss the appraisal process and scope of work for performance appraisal facilitator consultant services. The proposed scope of work would be performed over approximately two to three months and would include interviews and completion of a self-assessment by each Council Appointee, interviews with each Councilmember, and preparation of a report summarizing City Council feedback. The process concludes with a facilitated closed session between the City Council and each Council Appointee, during which the evaluation results are presented and discussed.
Retaining an independent facilitator would provide a structured, consistent, and confidential process to support the City Council’s performance evaluations of its Council Appointees in accordance with the applicable Employment Agreements and City Council Policy 058.
DISCUSSION
In June 2026, pursuant to Section 2.105.140(b) of the Santa Clara City Code, which authorizes the use of an informal competitive procurement process for general services with an estimated total taxable amount not to exceed $250,000, the City issued an informal Request for Proposals (RFP) for Council Appointee performance evaluation facilitation services.
The City distributed the informal RFP to three firms known to provide specialized executive and public-sector performance evaluation facilitation services. The RFP included a detailed scope of services, proposal submission requirements, evaluation criteria, and notice that the recommended award would be based on best value to the City.
The City received three responsive proposals by the deadline established in the RFP. Staff evaluated all proposals in accordance with the evaluation criteria identified in the RFP, which included experience and qualifications, technical capability, and cost. Cost represented 30% of the total evaluation score. Following the evaluation, one proposer withdrew from further consideration due to scheduling constraints. This withdrawal did not affect the evaluation committee’s ranking or recommended award. The two proposers that remained under consideration were Baker Tilly US, LLP (hereafter, “Baker Tilly”) and MRG, Inc.
Consistent with City Council Policy 058, which provides that the City Council will select the facilitator for Council Appointee performance evaluations, the evaluation committee presented its recommendation to the City Council in a closed session on September 15, 2026. Following its consideration of the evaluation results and recommendation, the City Council selected Baker Tilly as the consultant to facilitate the performance appraisal process for the City Manager and City Attorney.
The consultant’s scope of services will include, but is not limited to, the following:
• Conducting an introductory meeting with the City Council to review the evaluation process, roles, timeline, and expectations;
• Preparing a self-assessment outline for each Council Appointee;
• Conducting separate confidential interviews with the Mayor and individual City Councilmembers
• Preparing a report that summarizes the interview feedback while maintaining the anonymity of the individual Councilmembers;
• Facilitating a closed session meeting between the City Council and each Council Appointee to review and discuss the feedback;
• Assisting the City Council and each Council Appointee in establishing performance goals aligned with the City Council’s strategic objectives, including appropriate measures for assessing progress toward these goals; and
• Preparing a summary report documenting the goals and performance measures established during the evaluation process.
To proceed with the requested services within the timeline set forth in City Council Policy 058, staff recommends approval of an agreement with Baker Tilly, for a term beginning on our around October 1, 2026 and ending on December 31, 2027, with a maximum compensation amount not to exceed $30,000. Although the City Manager would ordinarily have delegated authority to execute agreements below $250,000, execution of an agreement for services that include the City Manager’s own performance evaluation may present a potential conflict of interest. Accordingly, staff recommends that the City Council authorize the Mayor to execute the agreement on behalf of the City, subject to review and approval as to form by the City Attorney. A draft agreement is attached, with the scope of work and fees to reflect the terms of City Request for Proposals and Baker Tilly’s response thereto. The agreement requires discussion with Baker Tilly and is provided for Council and the public’s information in draft form.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
The cost of facilitating the performance appraisal process for Council Appointees not to exceed $30,000. The cost of this agreement will be absorbed within the existing budgets for the City Manager’s Office and the City Attorney’s Office.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov, or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the Human Resources Director and Chief Assistant City Attorney to negotiate an agreement with Baker Tilly for performance evaluation facilitation services, in a form similar to the attached draft agreement;
2. Authorize the Mayor to execute an Agreement with Baker Tilly for Council Appointee performance evaluation facilitation services, in a form similar to the attached draft agreement, with a term beginning on our around October 1, 2026 and ending on December 31, 2027, with a maximum compensation amount not to exceed $30,000, subject to review and approval as to form by the City Attorney; and
3. Authorize the Mayor to take any actions necessary to implement and administer the agreement, including negotiating and executing future amendments to (a) add or delete services associated with the performance appraisals and (b) make de minimis changes, provided that such amendments do not increase the maximum compensation amount or extend the term beyond December 31, 2027, subject to review and approval as to form by the City Attorney.
Staff
Reviewed by: Ashley Lancaster, Acting Director of Human Resources
Approved by: Aracely Azevedo, Assistant City Manager
ATTACHMENTS
1. Draft Agreement Between the City and Baker Tilly