HomeMy WebLinkAboutStaff Report 1613City of Palo Alto eID # 1613)
City Council Staff Report
Report Type: Consent Calendar Meeting Date: 5/2/2011
Summary Title: Extended 960 Hour Limit for Interim City Auditor
Title: Adoption of Resolution Requesting Approval from the CalPERS Board
of Administration for Extension of Employment Pursuant to Government
Code Section 21221(h) for Acting City Auditor Michael Edmunds
From: City Manager
Lead Department: Human Resources
Recommendation
Staff recommends that Council approve the attached resolution to request the
CalPERS Board of Administration approve an extension of the 960-hour
employment limit for the Acting City Auditor, Michael Edmonds, in accordance
with Government Code 21221(h). The extension is for an additional 960 hours up
to October 25, 2011.
Background
On October 25, 2010, Council appointed Michael Edmonds to serve as Acting City
Auditor during City Auditor Lynda Brouchoud's leave-of-absence pla=ed from
October 18, 2010 to April 18, 2011. In March 2011, Ms. Brouchoud notified
Mayor Espinosa that she would not be returning to the City upon the completion
of her leave-of-absence. The Council has initiated steps to hire an executive
recruiter to fill this critical vacancy, and Mr. Edmonds has agreed to continue
working in his capacity as Acting City Auditor so that there is no disruption to the
City Auditor's ongoing work.
May 02,2011
eID # 1613)
Page 1 of 4
State Law limits PERS retirees from working more than 960 hours per fiscal year
with a PERS' agency and the Acting City Auditor has nearly exhausted this limit
for Fiscal Year 2011. Government Code Section 21221(h), however, provides an
exception to the 960-hour limit, allowing agencies to request an extension for
retiree employment for a limited duration where specialized skills are needed. In
order to allow the Acting City Auditor to continue working until a permanent
replacement can be hired, the Council needs to adopt the attached resolution
requesting approval from CalPERS for an extension to allow the Acting City
Auditor to continue in his capacity up to October 25, 2011.
The Council CAO Committee is in the process of interviewing Executive Search
firms to begin the recruitment process for a new auditor.
Discussion
Under the direction of the Council and in accordance with the Charter Authority
and Municipal Code, the City Auditor's Office conducts and coordinates a variety
of performance, financial, and revenue audits and special studies that provide the
Council, City management, and the citizens of Palo Alto with evaluations on the
economy, efficiency, and effectiveness of City services.
The City Auditor's position is unique and requires specialized skill in internal
auditing, experience, preferably from a public sector organization, and training.
The City Auditor is tasked with managing audits related to internal accounting
and management activities to assure compliance, and identifying and improving
controls, procedures and system efficiencies in City operating departments. The
number of public agencies which have such an internal performance auditor are
limited, making the position and skills required for the job unique. Mr. Edmonds
has over 30 years of auditing experience and is uniquely qualified to fill this role
because he has 25 years of experience in managing audits for public agencies.
May 02,2011
(10 # 1613)
Page 2 of 4
I
. 1
After receiving notice that the City Auditor would not be returning to her position
at the end of her leave-of-absence, Council initiated steps to hire an executive
recruiter to fill this vacancy. The recruitment is currently in process and is
expected to be completed in six months or less .
Mr. Edmonds has agreed to continue in his capacity as Acting City Auditor until a
new City Auditor is in place. Since Mr. Edmonds has worked full-time since he
was hired to serve as Acting City Auditor on October 25, 2010, he has nearly .
exhausted the 960-hour limit. If the resolution is not approved, the City Auditor's
Office would be without an experienced audit manager until a new City Auditor is
in place. Approving the resolution will assure that the City Auditor's Office will
continue under the Acting City Auditor's leadership until a new City Auditor is in
place.
Resource Impact
Staff estimates a $70,000 cost for extending Mr. Edmonds term in order to
continue as Acting City Auditor, but this cost will be more than offset by salary
and benefit savings resulting from not having a permanent City Auditor in place.
Policy Implications
The City complies with the 960-hour limit for hourly employment for retirees and
has rarely used the exemption provision in Government Code Section 21221(h).
However, having Mr. Edmonds continue until a new auditor is hired is necessary
to provide continuity and ensure that the work plan of the City Auditor's office
stays on schedule while the Council works to fill the vacancy.
Environmental Assessment
Extension of employment is not a project requiring review under the California
Environmental Quality Act (CEQA).
May 02, 2011
(ID # 1613)
Page 3 of 4
Attachments:
• Resolution Requesting Extension of Employment from the CalPERS Board of
Administration Pursuant to Government Code 21221(h) for Michael Edmonds (DOC)
Prepared By:
Department Head:
City Manager Approval:
May 02, 2011
(ID # 1613)
Elizabeth Egli, Administrative Assistant
Sandra Blanch,
James Keene, City Manager
Page 4 of 4
* NOT YET APPROVED *
Resolution No.
Resolution of the Council of the City of Palo Alto Requesting
Extension of Employment from the CalPERS Board of
Administration Pursuant to Government Code 21221(h)
for Michael Edmunds
WHEREAS, Michael Edmunds ("Edmunds") retired from the City of Oakland in the
position of Assistant City Auditor, effective April, 2009; and
WHEREAS, the City of Palo Alto ("City") appointed Edmunds to the position of
Acting Auditor assigned to perform City Auditor duties under Government Code section
21221(h), a position deemed to be of limited duration and requiring specialized skills, effective
October 25, 2010; and
WHEREAS, Edmunds is expected to reach his maximum of 960 hours this fiscal
year on or about May 4, 20 II; and
WHEREAS, the City Auditor's Office has three full-time Senior Performance
Auditor positions and one full-time administrative assistant in its organizational structure,
reporting to the City Auditor. The City Auditor position is required to perform and manage
audits related to internal accounting and management activities to assure, and identify and
improve controls, procedures and system efficiencies in the City's operating departments. The
number of public agencies which have such an internal performance auditor is limited, making
skills and expertise required to perform the duties of the position unique. Edmunds has 25 years
serving in an Assistant Auditor position with another public agency and is therefore qualified to
perform these duties while the City recruits for a new, permanent City Auditor.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as
follows:
SECTION 1. The Council of the City of Palo Alto hereby requests that the
CaiPERS Board of Administration be requested to approve an extension in accordance with
Government Code section 21221(h) for the temporary employment of Michael Edmunds for 960
additional hours through October 25, 2011. An appointment made under this subsection may not
exceed a total of 12 months.
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110427 sh 8261576
* NOT YET APPROVED *
SECTION 2. The Council finds that this is not a project under the California
Environmental Quality Act and, therefore, no environmental impact assessment is necessary.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Sr. Deputy City Attorney City Manager
Director of Human Resources
Director of Administrative Services
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