CC 09-15-2026
#14
Law Enforcement Services
Agreement with the
County of Santa Clara
Presentation
Law Enforcement Services
Agreement with the County of
Santa Clara
September 15, 2026
Jonathan Orozco
Director of Finance
Michael Woo
Senior Assistant City Attorney
Why We’re Here
A Significant Increase in Proposed Costs
• Cost increases raised questions about the County’s methodology • Cupertino, Los Altos Hills, and the County have engaged in discussions to address these concerns
City’s Goal
A fair, transparent, and legally compliant contract.
Contract Status
• Current 3-month extension expires September 30
• City currently paying County’s newly proposed rates
• Short-term extension was requested
• Long-term negotiations continue
Independent Financial Review
Mutual agreement to an extension and independent
financial review by Vasquez & Company
Vasquez Financial Review
• Final report issued August 26
• County reviewed and commented on draft
• Final report publicly available
• County formal response pending
Key Findings
$11.9 M
Proposed
Overhead
$10.7 M
Classified by Auditors
as Non-Allocable
Overhead Specific to
the Contracting Cities
90%
Of Proposed
Overhead Costs
Identified as
Non-Allocable
Further Review Needed
To determine what portion may be attributable to services provided to the Contract Cities
Current agreement expires
• County states services will be significantly reduced
• Specific service levels remain unclear
Next Steps
• Discuss options and provide direction to the City
Manager
Questions?
CC 09-15-2026
#16
FY 2026-27 Fourth
Amendment to
agreement with Baker Tilly
Presentation
City of Cupertino
FY 26-27 Internal Audit Program
Audit Committee Meeting / July 2026
City of Cupertino FY 26- 27 Internal Audit Program2
• The City retained Baker Tilly to serve as the designated Internal Auditor and conduct projects focusing on:
• Risks
• Internal Controls
• Efficiency and effectiveness
• Best practices
• Compliance
• Work is being completed under appropriate industry standards (IIA, GAGAS, AICPA) Internal Audit Overview
Role of
Internal Audit
City of Cupertino FY 26- 27 Internal Audit Program3
City of Cupertino FY 26- 27 Internal Audit Program4
A. Program Inputs
• Enterprise
Assessments
• Employee and
Residents
• Performance
Metrics
B. Opportunities
• Risks
• Controls
• Compliance
• Performance
C. Tracking &
Reporting
• Findings &
Recommendations
• Fraud, Waste, and
Abuse Hotline
• Corrective Actions
• Implementation
• Validation
Holistic Internal Audit Program Components
City of Cupertino FY 26- 27 Internal Audit Program5
Internal Audit Program Components
Internal Audit Plan
Risks Internal
Controls Compliance Performance
Accounting and financial reporting, asset management, capital programs, compliance, economics and funding, fraud, governance, human resources, internal controls, maintenance and operations, management, operations and service delivery, organization and staffing, processes and procedures, procurement, public safety, risk management, and technology Functions Components Plan
City Internal Audit Annual
City of Cupertino FY 26- 27 Internal Audit Program6
Focus Accomplishments
Enterprise Risk Assessments 2021, 2024
Internal Controls Projects Completed
• Citywide Internal Control Review
3 FY 26
Performance/Efficiency Projects Completed 5
Policies Reviewed
• City Council Review
• Investment/Cash Flow Policy Review
147
FY 26
FY 26
Recommendations Delivered 79
Ethic Hotline Reports Received 39 reports
Recommendations Validations in FY26 7
Program Review
Departments Covered
Name of Presentation / XX.XX.XX7
Department Projects
Administrative Services Procurement (22)
Finance Policy and Procedures (22)
Budget Process Review (23)
Grants Management Internal Control Review (25)
Special Revenue Fund Process (25)
Investment/Cash Flow Policy Review (26)
Council- Wide Policy Review (26)
City Clerk
City Manager’s Office FWA Program (22)
Community Development
Communication
Innovation & Technology
Parks & Recreation
Public Works Capital Program (22)
Library Construction Audit (23)
⇒ Enterprise Projects: Risk Assessment (21, 24), Enterprise Leadership (23), Policies and Procedures (24), Recommendation Validation (25), Internal Control Review (26) Name of Presentation / XX.XX.XX8
Potential FY26-27 Internal Audit Projects
Project Title Project Description Estimated Fee
Code Enforcement – 311 Response
Time Review
Evaluate the City's code enforcement complaint response process, with a focus on response times, staffing availability, and service delivery. $45,000 Property Tax Review
Inventory property tax revenues and compare to relevant legislation and interlocal agreements to identify opportunities to improve understanding of tax revenue distributions, county service delivery, and intergovernmental funding.
$35,000
Investment/Cash Flow Review Compare existing investment and cash flow processes to the City's existing policy to assess alignment with the policies. $35,000
Permitting Efficiency Study
Evaluate the efficiency and effectiveness of the City's permitting process to identify opportunities to streamline workflows, reduce processing times, improve customer service, and enhance overall service delivery. $50,000
Grant Management Follow-up Follow up on outstanding recommendations and assess what progress the City has made to address recommendations.
$30,000
Recruitment and Retention Study
Assess the City’s recruitment and retention practices to identify opportunities to improve hiring efficiency, enhance the City’s ability to attract and retain qualified employees, and support long-term organizational stability. $45,000
Recommendation Validations Continue to track and validate recommendation implementation. $10,000 Program Management Support ongoing program management activities. $20,000 Resources
• Government Finance Officer’s Association (GFOA)
– GFOA Best Practices Guide on Audit Committees
• Institute of Internal Auditors
– IIA Publication “The Audit Committee: Internal Audit
Oversight”
• U.S. Government Accountability Office (GAO)
• American Institute of Certified Public Accountants
• Association of Certified Fraud Examiners
9 FY 26-27 Internal Audit Program - Tiers
Audit Committee’s Tiered Recommendation
Baseline
Recommendation Validations 10,000.00
Program Management 20,000.00
Subtotal 30,000.00
Tier 1
Code Enforcement - 311 Response Time Review 45,000.00
Permitting Efficiency S tudy 50,000.00
Recruitment and Retention Study 45,000.00
Subtotal 140,000.00
Tier 2
Property Tax Review 35,000.00
Investment/Cash Flow Review 35,000.00
Grant Management Follow-Up 30,000.00
Subtotal 100,000.00
Grand Total 270,000.00
Recommended Actions
1. Accept the FY 2026-27 Internal Audit Work Program
2. If accepted, authorize the City Manager to execute a Fourth Amendment with Baker Tilly to extend the agreement through June 30, 2027; and
3. Adopt Resolution No. 26-XXX approving Budget Modification No. 2627-449, increasing appropriations by an amount to be determined by Council at tonight's meeting
Questions?