October 2026 www.paloalto.gov
Best Practices in
Managing Consultant
Services
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PURPOSE
Discussion of ongoing work to ensure high quality and valuable services developed through the engagement of professional consultants:
• Review status of ongoing work
• Reflect on path forward
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OVERVIEW
• Since early 2025, staff has reviewed and developed best practices to clarify expectations for consultant management and reinforce practices that ensure effective products and meet organizational needs. • Identify strengths and challenges in current processes, recognizing effective practices already in place.
• Improve consistency, oversight, and collaboration with consultants. • Position the City to lead on innovative, accountable consultant management.
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Initial Assessment: Interviews and surveys completed across city departments Budget Development Integration: Consultant expenditures now systematically reviewed during FY 2026 budget cycle and going forward
Practice Improvements: Best-practices being reviewed and tools being developed; City Auditor’s Office also reviewed best practices Working Group: Cross-departmental staff engaged in identifying and developing best practices resources
Best Practices Guide: Primary resource for staff for all aspects of professional services consultant management
PROGRESS TO DATE
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• Precursors to Outsourcing
• The Outsourcing Process
• Determining a Scope of Services
• Scoping Community Engagement
• Selecting the Service Provider
• Managing Contingencies
• Contract Management
• Establishing Points of Contact,
Communication Expectations, and
Handling Professional Differences
• Performance Management and
Quality Control
• Risk Management
• Closeout and Evaluation
CONSULTANT ENGAGEMENT OVERVIEW
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KEY STAKEHOLDERS IN PROJECT LIFECYCLE
Phase Key Stakeholders
Annual Budget, Council Priority-Setting City Council, City Manager’s Office, Lead Department management Financial Tracking Lead Departments, Administrative Services Outsourcing Process Lead Departments, Administrative Services, Human Resources, City Council (if applicable)
Performance Management, Quality Control, and
Timeliness
Lead Department management, City Manager’s Office
Managing High-Visibility and Controversial
Projects
Lead Department management, City Manager’s Office
Stakeholder Engagement Community members, Lead Department management, City Manager’s Office, City Boards and Commissions, City Council
Closeout and Evaluation Lead Department management, City Attorney’s Office, Administrative Services
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BEST PRACTICES IN ACTION
Synthetic Turf Study
High-visibility project management and stakeholder engagement Pedestrian/Cycling Connectivity
Structured oversight and cross-functional coordination
Railroad Quiet Zone
Clear roles, performance expectations, and issue resolution Transportation Staffing
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• Discussion and review of ongoing work from City Council and public through this study session to ensure perspectives have been reflected in the work • Develop and implement a modular, audience-appropriate training program that builds on current project management training
• Highlight options at annual budget, priority setting, and project-specific decision points
• Solicit feedback from consultants on practice guide
• Ongoing reinforcement and refinement of practices
NEXT STEPS
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• Contracting is a partnership
• Service providers bring subject matter experience, technical expertise, professional licenses, and proprietary tools
• Staff bring local knowledge, including, an understanding of community expectations, sources of available information, City resources, Council priorities, and established practices. While consultants may perform specific tasks, the City retains ownership, accountability, and informed oversight of the work and its outcomes • Balancing these perspectives requires engagement, skill, regular training, and teamwork
KEY PRINCIPLES