2024/2025 City of Hollister- Professional Services Contracts Response*

R1

(R1) The oversight of contracts must be uniform and compliant with the COH municipal code. The COH should continue to formalize and unify the Professional Services Contract Administration process. They should provide an annual (at minimum) training session specifically devoted to the responsibilities associated with contract administration. The training must include a flow chart identifying the current processes and responsibilities associated with contract administration. On an annual/yearly basis, the City Attorney should provide an update of any rules or legal changes associated with the administration of public contracts and professional service agreements. This update must be included in the training session. City Response to F1 and R1 The City agrees with this finding and confirms the recommendation has been implemented. Public Works Police Department Fire Department Community Development Administrative Services City Attorney City Manager (831) 638-4330 (831) 636-4370 (831) 636-4360 (831) 636-4325 (559) 431-5600 (831) 636-4300 (831) 636-4301 Hollister.ca.gov CITY OF HOLLISTER 375 FIFTH STREET • HOLLISTER, CA 95023-3876 The City recognizes that prior decisions, made during a period of administrative transition and staff turnover, resulted in procedural inconsistencies. We recognize that some contract amendments may not have received the full level of review and City Council oversight they warranted under our established protocols In response to these concerns, the City has undertaken comprehensive corrective measures. Most notably, prior to the 2024-25 Fiscal Year, the City completed a comprehensive and transparent Request for Proposals (RFP) process for both Building and Planning Services. This process was conducted via the widely recognized and trusted government bidding platform, Bidnet Direct in full accordance with the City's procurement policies. To facilitate and encourage interested entities, the City's RFP included an updated scope and additional defining criteria, clearer delineation of responsibilities, notable changes in billing and cost calculations, and improved evaluation criteria to ensure alignment with legal and procedural standards. In total, the City received eight proposals to its Building Services RFP and ten proposals for its Planning Services RFP.

R2

(R2) Provide a written quarterly status of each professional service contract with an annual expenditure above $150,000. The report, at minimum, must include the approved contract amount, the current balance expended to date, and the remaining balance. In addition, the report must document all amendments or expenditures with the provider that were not part of the original contract. City Response to F2 and R2 The City acknowledges these findings; however, it should be noted that the Hollister Municipal Code does not require Administrative staff to provide structured contract status updates to the City Council. The City has proactively implemented measures to improve contract oversight and transparency consistent with the Civil Grand Jury's recommendations.. Administrative staff have received updated guidance and training on professional services contract administration, including annual training provided by the City Attorney's Office to ensure current knowledge of relevant legal requirements and best practices. Additionally, a formal quarterly budget review process that provide ongoing updates to the City Council regarding annual budget status. This process creates regular opportunities for staff to present contract-related information and recommendations to Council as appropriate. Public Works Police Department Community Development Fire Department City Manager Administrative Services City Attorney (831) 638-4330 (831) 636-4370 (831) 636-4325 (831) 636-4360 (831) 636-4300 (559) 431-5600 (831) 636-4301 Hollister.ca.gov CITY OF HOLLISTER 375 FIFTH STREET • HOLLISTER, CA 95023-3876