HomeMy WebLinkAboutStaff Report 2404-2918CITY OF PALO ALTO
CITY COUNCIL
Special Meeting
Monday, May 06, 2024
Council Chambers & Hybrid
5:30 PM
Agenda Item
13.Adoption of a Resolution to Appoint Katherine Murdock of Baker Tilly US, LLP as City
Auditor; CEQA status – Not a Project
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Human Resources
Meeting Date: May 6, 2024
Report #:2404-2918
TITLE
Adoption of a Resolution to Appoint Katherine Murdock of Baker Tilly US, LLP as City Auditor;
CEQA status – Not a Project
RECOMMENDATION
The Council Appointed Officers Committee recommends the City Council appoint Katherine
Murdock, Certified Internal Auditor (CIA), Certified Government Auditing Professional (CGAP) of
Baker Tilly US, LLP, as Palo Alto’s City Auditor
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).
The City entered a contract with Baker Tilly US, LLP, as Palo Alto‘s City Auditor, effective
October 1, 2020. In May of 2022, the Council Appointed Officers (CAO) Committee
recommended and the Council approved an amendment to that contract to extend the term to
June 30, 2025. Under that contract, the City has appointed several individuals from Baker Tilly
to perform the duties of the City Auditor. In February 2024, Baker Tilly informed the City that
the previous City Auditor vacated the appointed position.
ANALYSIS
On March 11, 2024, the City Council discussed the interview process for the selection of a City
Auditor. After discussion, the City Council directed staff and Baker Tilly to coordinate interviews
for the Council Appointed Officers (CAO) Committee to interview the qualified candidates and
narrow the selection of the candidates for Council to interview up to three candidates. After
completing the interview process, Katherine Murdock has been selected for the position of City
Auditor as provided in the Charter, on an ongoing basis.
Katherine Murdock is a public sector services manager with more than 20 years of experience
serving in auditor and risk analyst roles for municipal governments, including Austin Energy, the
City of Austin’s Office of the City Auditor and the City of Sunnyvale. Her experience includes
enterprise risk management, internal audits, and performance audits for local governments and
municipal utilities. Other specific experience includes fraud mitigation, contract compliance,
financial and business process audits, and gap analyses to provide recommendations for
improved operations.
The appointment of Katherine Murdock as City Auditor will begin immediately and end 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, or, consistent with at-will service, at the Council’s discretion at an earlier date
as determined by Council.
FISCAL/RESOURCE IMPACT
There is no resource impact associated with this appointment. The Baker Tilly contract
is executed and budgeted in the FY 2024 Adopted Budget.
STAKEHOLDER ENGAGEMENT
The interview process for this City Auditor selection was previously discussed in public
meetings, and City Council directed this appointment.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because appointing a City
Auditor is a continuing administrative activity. CEQA Guidelines section 15378(b)(2).
ATTACHMENTS
Attachment A: Resolution Appointing Katherine Murdock as Palo Alto City Auditor
APPROVED BY:
Sandra Blanch, Human Resources Director
NOT YET APPROVED Attachment A
Resolution No. ____
A Resolution of the City Council for the City of Palo Alto
Appointing Katherine Murdock, Certified Internal Auditor, Baker
Tilly US, LLP, as the Palo Alto 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. Since October 1, 2020, the City has procured City Auditor services through a
professional services agreement with Baker Tilly US, LLP;
D. In February 2024, Baker Tilly informed the City that the previous City
Auditor vacated the appointed position;
E. 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 Katherine Murdock, Certified Internal Auditor,
Baker Tilly US, LLP, as City Auditor for the City of Palo Alto;
SECTION 2. Katherine Murdock shall serve as 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 employment rights,
responsibilities and obligations to Katherine Murdock or Baker Tilly US, LLP; and,
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NOT YET APPROVED Attachment A
SECTION 4. This resolution shall be effective immediately. The appointment of
Katherine Murdock as City Auditor shall begin immediately and end 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, or,
consistent with at-will service, at the Council’s discretion at an earlier date as determined by
Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Deputy City Attorney City Manager