HomeMy WebLinkAboutStaff Report 14760
City of Palo Alto (ID # 14760)
Office of the CAO
City Council CAO Report
Meeting Date: 9/19/2022 Report Type: Consent Calendar
Title: Adoption of a Resolution to Appoint Adriane D. McCoy of Baker Tilly US,
LLP as Interim City Auditor Through January 31, 2023
From: Lesley Milton, City Clerk
Recommendation
The City Council is recommended to adopt a resolution appointing Adriane D. McCoy, Certified
Internal Auditor (CIA) of Baker Tilly US, LLP, as Palo Alto’s Interim City Auditor through January
31, 2023 (Attachment A).
Background
The Palo Alto Charter provides that the City Council appoint an Auditor who serves at the
Council’s will. The Charter describes the Auditor’s key duties. (See Charter, Art. IV, sections 1
and 12.)
In February 2020, the Council directed the Council Appointed Officers (CAO) Committee to
conduct a solicitation for outsourced internal auditing services. After an extensive procurement
process, the CAO Committee recommended finalists for Council consideration. On September
28, 2020, the Council appointed Kyle O’Rourke, MPA, CAI, CGAP, CRMA, Senior Consulting
Manager with Baker Tilly US, LLP, as Palo Alto’s City Auditor. The Council executed a contract
with Baker Tilly for the services of Mr. O’Rourke and other supporting personnel, effective
October 1, 2020 through June 30, 2022, for a not-to-exceed amount of $1,300,000. On May 9,
2022, the CAO Committee recommended and the Council approved an amendment to the
contract to extend the term to June 30, 2025, revise the project scope, and increase the
contract amount by $2,126,250 to a not-to-exceed amount of $3,426,250 over five years.
Baker Tilly is a comprehensive professional services firm with a group dedicated to state and
local governmental clients. Baker Tilly’s experience extends across more than 40 states with
specific public sector clients in California such as the cities of Carlsbad, Riverside, Burbank,
Modesto and Richmond and several utility clients including Sacramento Municipal Utility
District, Imperial Irrigation District, Northern California Power Agency, San Diego Gas & Electric,
Glendale Utilities, Pasadena Water and Electric, Anaheim Public Utilities, and the California
Public Utilities Commission. This is notable as Palo Alto owns and operates its own utilities.
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Discussion
On August 17, 2022, the City received the attached letter from Baker Tilly Managing Partner
Vicki Hellenbrand informing the City that Mr. O’Rourke resigned from Baker Tilly on August 15,
2022, and will no longer serve as Palo Alto’s City Auditor.
On August 22, 2022 the City Council took action to “request up to three individuals to interview
from Baker Tilly to act as an interim Auditor, and the Council Appointed Officers Committee to
meet to address the next steps for filling the Auditor position for the medium to long term.”
The City’s contract with Baker Tilly (Exhibit A, Scope of Services under “Designation of City
Auditor”) addresses the potential for a vacancy in the City Auditor appointment:
On August 30, the Council interviewed three candidates and requested staff bring forward the
appropriate actions to appoint Adriane D. McCoy of Baker Tilly US, LLP as the Interim City
Auditor through January 31, 2023.
Adriane D. McCoy is a public sector
services professional with more than
25 years of experience as a trusted
business partner to staff and
management, consulting on ways to
strengthen and improve operations to
reduce risk and improve process
efficiencies.
She is a Certified Internal Auditor (CIA),
a Certified Government Auditing
Professional (CGAP), and holds a
Master of Science with a concentration
in cyber security, network and
infrastructure and Bachelor of Science
in operations management,
accounting. She holds several other
industry certifications and related
training.
Page 3
Resource Impact
There is no resource impact associated with this interim appointment. The BakerTilly contract
is executed and budgeted in the FY 2023 Adopted Budget.
Stakeholder Engagement
This work has been based on extensive prior discussion and direction from the City Council
during multiple public meetings beginning in 2020. Staff in coordination with Baker Tilly and
the City Council completed the interviews to bring forward this action. Further discussion and
engagement is expected with the Council Appointed Officers Committee, as directed by
Council, to meet to address the next steps for filling the Auditor position for the medium to
long term.
Environmental Review
This action is exempt from CEQA and requires no further environmental review.
ATTACHMENTS:
• Attachment A: Resolution Appointing Adriane D. McCoy as Palo Alto Interim City Auditor
(DOC)
NOT YET APPROVED
Resolution No. ____
A Resolution of the City Council for the City of Palo Alto
Appointing Adriane D. McCoy, Director with Baker Tilly US, LLP,
as the Palo Alto Interim City Auditor.
R E C I T A L S
A. The Palo Alto City Charter specifies the duties and functions of the City Auditor for the
City of Palo Alto;
B. The Charter further specifies that the City Council shall appoint the City Auditor;
C. The Council received notification that its current City Auditor, Kyle O’Rourke, is no
longer with the City’s service provider, Baker Tilly US, LLP and will no longer serve as
Palo Alto’s City Auditor;
D. The Council requested up to three candidates from Baker Tilly US, LLP and conducted
interviews with candidates to serve as City Auditor;
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The Council hereby appoints Adriane D. McCoy, Director for Baker Tilly US,
LLP, as interim City Auditor for the City of Palo Alto;
SECTION 2. Adriane D. McCoy shall serve as interim City Auditor at the will of the
Council as provided by the Charter, and shall further serve according to all of the terms and
provisions of the Charter, the Municipal Code and the agreement for outsourced internal
auditing services between the City of Palo Alto and Baker Tilly US, LLP; and
SECTION 3. Nothing in this action confers employment or other employee rights,
responsibilities and obligations to Adriane D. McCoy or Baker Tilly US, LLP.; and
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NOT YET APPROVED
SECTION 4. This resolution shall be effective immediately. The appointment of Adriane D.
McCoy as interim City Auditor shall begin immediately and end on January 31, 2023 or on the
expiration of the agreement for outsourced internal auditing services between the City of Palo
Alto and Baker Tilly US, LLP, including any amendment, extension or termination approved by
the Council, whichever is sooner.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
__________________________ _____________________________
City Clerk Mayor
APPROVED AS TO FORM:
__________________________
City Attorney