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CITY OF SAN BERN. lDINO - REQUEST F .1 COUNCIL ACTION
Fr......,:
COUNCIL PERSONNEL COMMITTEE
Subject:
Referral by Personnel Committee to
full Council of implementation
plan for City Attorney audit
Dept:
Date: March 24. 1994
Synopsis of Previous Council action:
Recommended motion:
That the document submitted by be selected
~s the implementation plan for the City Attorney's audit.
Signature
Contact person:
Yes
Ward:
FUNDING REQUIREMENTS:
Amount:
Phone:
Supporting data attached:
Source: (Acct. No.)
(Acct. DescriPtion)
Finance:
:OLi
Notes:
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75-0262
Agenda Item No._ .;Y"..2.5
C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
CITY ADMINISTRATOR'S OFFICE
DATE: March 23, 1994
TO: Councilman Ralph Hernand:z, Chairman, Personnel Committee
FROM: Fred Wilson, Assistant City Administrator
SUBJECT: City Attorney Audit Implementation Schedule
COPIES: Shauna Clark, City ; '~inistrator
------------------------------------------------------------------
Attached is the City Attorney Audit Implementation Schedule through
March 1994 for the Council Personnel Committee meeting scheduled
Ma ch 24, 1994.
Administrator
FAW/md
June 1994
City Attorney Audit
Imp........nt.tion Schedule
Section 1. Use of Outside Counsel, Vendor Selection
Responsible
Implementation Measures Person Status
1.1 Adopt a formal competitive vendor selection
process to retain the services of outside counsel Jim Penman Submit proposed vendor selection process to Council
and establish procedures to document that for review/approval.
competing firms are objectively evaluated
according to established criteria. Nothing in this
recommendation should be construed to prevent
the City of San Bernardino from at all times
selecting the mOst qualified law firm, even if the
firm is more costly than other firms. However,
such selection should be based on a competitive
vendor selection process.
1.2 Meet with the Finance Director to clarify
roles and responsibilities related to payment Jim Penman Accounting Procedures Manual will outline the roles
processing and financial record keeping for B. Pachon and responsibilities.
outside counsel legal services. Work with the City Attorney to meet with Finance Director to discuss
Finance Director to develop proposed proposed code amendments.
amendments to the Municipal Code which would
clearly define the financial relationships and
responsibilities of each of these City officials.
1.3 Adopt policies and procedures which will
ensure that formal, written agreements are Jim Penman Submit proposed policy to Council for
established with all current and future conlTact review/approval.
law firms, and that such agreements are approved
by the Council in public session.
#:2.5
>>j1l1ei trttd. ..NM~
. Section 2. Financial Controls for Outside Counsel Services and Litigation Expenses
Implementation Responsible
Measures Person Status
2.1 Retain working papers which support Provide copies to Director of Finance as part of annual
budget estimates for outside counsel Jim Penman budget process.
requirements.
2.2 Monitor the status of appropriations during
the fiscal year and provide advance notice and Jim Penman Provide regular reports to Council and Finance Director.
justification to the Mayor and City Council in
the event appropriations may be exceeded.
2.3 Implement accounting procedures to be Jim Penman Implement as part of Accounting Procedures Manual
consistent with invoice payment procedures to B. Pachon
be established by the Department of Finance.
as recommended below.
2.4 Immediately develop a comprehensive B. Pachon 4/1/94 Finance to solicit proposals to develop manual
accounting policy manual. for City.
5/12/94 Contract awarded to RAMS to develop manual.
2.5 Establish improved financial controls over B. Pachon Implement as part of Accounting Procedures Manual
the payment of vendor invoices, as discussed in Jim Penman
the body of this section.
2.6 More clearly define the duties and Jim Penman Implement as part of Accounting Procedures Manual
responsibilities of the Finance Department and B. Pachon
of other City Departments in the invoice
approval payment process.
Section 3. Stafimg and Personnel Management
Responsihle
bnplementation Measures Person Status
3.1 Develop improved systems of accountability
over its professional and support staff including Jim Penman Provide summary of time spent by each employee in
utilization of time sheets which ensure that terms of activity type and service recipient to Finance
attorneys, paralegals and investigators document Director as part of cost recovery annual update
how their time is spent by activity type and process.
service recipient.
3.2 Develop management reports which tabulate
and summarize the time spent and workload Jim Penman Provide summary reports to Council.
accomplishments of professional and support
staff. 6/9/94 Contingent upon purchase of computer
system.
3.3 Conduct periodic and formal performance
evaluations for all staff. Jim Penman
Section 4. Infonnation Systems and Office Automation
Responsible
Implementation Measures Person Status
4.1 Develop an information system master plan Jim Penman 2/15/94 J. Penman met with MIS Director to discuss
which contains the elements described in this Fred Wilson feasibility of using City System. (No interest
section. Janis Ingels expressed in this option)
6/9/94 City Attorney budgeted funds in FY 94/95
for purcbase of computer system.
4.2 Assign an experienced legal secretary to
implement the recommended information systems Jim Penman Contingent upon approval and purchase of computer
master plan once it bas been approved. system.
4.3 Appropriate the funds that are necessary to Mayor &
implement master plan. Council Contingent upon approval and purchase of computer
system.
Master plan complete per City Attorney
4.4 Authorize the City Attorney to fill one Mayor & 1/10/94 Referred to Personnel Committee
vacant legal secretary position on a temporary Council
basis for a period of twelve months.
Section S. Office of the City Attorney Cost Recovery
Responsible
Implementation Measures Person Status
5.1 Adopt a cost recovery policy which allows Jim Penman
the Office of the City Attorney to recover the Fred Wilson Meet with Finance Director and develop
cost of its operations from non-General Fund B. Pachon recommendations on cost recovery policy. Submit
sources where possible. regular reports to Council on progress of policy.
5.2 Instruct the Finance Department to assist the B. Pachon
City Attorney in executing this cost recovery Fred Wilson See 5.1
policy and to report upon the actions that will be
required to realize the potential additional
revenues identified in this Section.
Section 6. Cost Effectiveness of Outside Counsel
Responsible Status
hnphmentation Measures Person
6.1 Approve the following changes in the Mayor &
authorized staffing level of the Office of the City Council Recruitment authorized by Personnel Committee.
Attorney:
- Delete funding for one paralegal; and, Personnel Final hiring to be approved by Personnel Committee
- Add funding for one Deputy City Attorney Committee and Mayor and Council
6.2 Authorize the City Attorney to recruit for the Mayor & 1110/94 Referred to Personnel Committee
new position immediately. Council 1113/94 Recruitment authorized by Committee
6.3 Reduce appropriations for outside counsel Mayor &
and increase budgeted revenues from the EDA to Council Should be concurrent Council action with approval of
fund the new Deputy City Attorney position, new Attorney position.
based upon the expected utilization of the new
Deputy City Attorney position.
6.4 Require that the City Attorney periodically
report to the Mayor and City Council on how the Provide quarterly progress reports to Council.
newly created Deputy City Attorney position is
being utilized.
Other Comments & Observations
Implementation Measures Responsible
FINANCE DEPARTMENT Person Status
Verify accuracy of invoices and ensure adequate Implement as part of Acting Procedures Manual.
supporting documentation accompanies invoices B. Pachon
hnplementation Measures Responsible
RISK MANAGEMENT Person Status
Systematically update database of outstanding Jim Penman 1112/94 MIS revised current Risk Management
general liability claims and liability reserve Vic Lorch reports.
B. Pachon
March 1994
City Attorney Audit
Implementation Schedule
~
Section 1. Use of Outside Counsel, Vendor Selection
Respo'l'ihle
Implementation Measures Person Status
l.l Adopt a formal competitive vendor sd""uon
process to retain the services of outside counsel Jim Penman Submit proposed vendor selection process to Council
and eSlablish procedures to document Ihal for review/approval.
competing firms are objectively evalualed
according to established crileria. Nothing in this
recommendalion should be construed 10 prevent
lhe Cily of San Bernardino from at allumes
sel""ting the most qualified law lirm. even If the
firm is more costly than other firms. However.
such selection should be based on a compelilive
vendor selection process.
1.2 Meet wilh the Finance Oir""tor to clarify
roles and responsibilities related 10 payment Jim Penman Finance Director will develop wrillen guidelines
processing and financial record keeping for B. Pachon outlining payment processing procedures. Finance
0utside counsel legal services. Work With the Director to meel wilh Cily Allorney to discuss
Finance Oir""tor to develop proposed proposed code amendments.
amendments to the MUniCipal Code which would
clearly de tine the linancial rdallonships and
responsihilities of each of these City officials.
1.3 Adopt poliCieS and procedures which will
ensure that tormal. wnllen agreements are Jim Penman Submil proposed policy to Council for
establish~ with all current and future contract review/approval.
law firms. and lhat such agreements are approved
hy Ihe Council in public session.
Section 2. Financial Controls l~. Outside Counsel Services and Litij;;dtion Expenses
Implementation Rosponsl ble
Measures Person Status
2.1 Retain working papers which support Provide copies to Director of Finance as pan of annual
budget estimates for outside counsel Jim P~nman budget process.
requirements.
2.2 Monitor the status of appropriations dunng
the fiscal year and provide advance notIce and Jim P~nman Provide regular reports to Council and Finance Director.
justification to the Mayor and City Council In
the evenl approprialions may be exceeded.
2.3 Implement accounting procedures to ~ Jim Penman Implement as part of Accounting Procedures Manual
consistent with invoice payment procedures to B. Pachon
be established by the Department of Finance.
as recommended below.
2.4 Immediately develop a comprehensIve B. Pachon 4/1/94 Finance to solicil proposals 10 develop manual
accounting policy manual. for City.
2.5 Establish improved financial controls over B. Pachon Implement as part of Accounting Procedures Manual
the payment of vendor invoices. as discussed in Jim Penman
the body of this section.
2.6 More clearly define the duties and Jim Penman Implement as part of Accounling Procedures Manual
responsibilities of the Finance Department and B. Pachon
of other City Departmenls in the inVOice
approval paymenl process.
Section 3. Stafling and Personnel Management
Respon.<ihle
Implementalion Measures Person Status
3.1 Develop improved systems of accountability
over 115 profeSSIonal and support staff including Jim Penman Provide summary of time spent by each employee In
utilization of time sh~ts which ensure that terms of activity type and service recipient to Finance
attorneys. paralegals and investigators document Director as part of cosl recovery annual update
how their lime is spenl by activity type and process.
~rvicc: recipient.
3.2 Develop managemc:nt reports which tabulate
and summarize the time spenl and workload Jim Penman Provide summary reports to Council.
accomplishments of profeSSIOnal and support
slaff.
3.3 'Conduct penodic and formal performance
evalualions for all staff. Jim Penman
Section 4. Infonnation Systems and Office Automation
Responsihle
Implementation Measures Person Status
4.1 Develop an information system mash:r plan JIm Penma"i- 2.15.94 J. Penman met With MIS Director to discuss
which contains the elements descrIbed in th,s Fred Wilson feasibility of usmg City System. (No interest
section. Janis Ingds expressed in this option)
4.2 Assign an experienced legal secretary to
implement the recornrnended informatIOn systems 1 i m Penman Contingent upon approval and purchase of computer
master plan once it has been approved. system.
4.3 Appropriate the funds that are necessary 10 Mayor &
implement master plan. Council Contingent upon approval and purchase of computer
system.
4.4 Authorize the City Attorney to till one Mayor & 1/10/94 Referred to Personnel Committee
vacant legal secretary position on a temporary Council Contingent upon approval and purchase of computer
baSIS for a period of twelve months. system.
;ction 5. Office of the City Attorney Cost Recovery
Respon..ihle
Implementation M....sures Person Status
5.1 Adopt a cost recovery policy whIch allows Jim Penman
lhe Office of the City Attorney to recover the Fred Wilson Meet With Finance Director and develop
cost of its opc:rations from non.{}eneral Fund B. Pachon recommendations on cost recovery policy. Submit
sources where possihle. regular reports to Council on progress of policy.
S.2 Instrucl the Finance Department to assist the B. Pachon
City Attorney in execuung this cost recovery Fred Wilson See 5.1
policy and to report upon the aclions that will be
required to realize the potential additional
revenues identified j. "'is Section.
Section 6. Cost Effectiveness of Outside Counsel
Responsible Status
Im plemenlation Measures Person
6.1 Approve the following changes 10 the Mayor & J-
aUlboriz.ed staffing level of Ihe Office or lhe City Council Recruilmenl authoriz.ed by Personnel Commiuee.
Attorney:
- Delete funding for one paralegal; and. P~rsonnel Final hiring 10 be approved by Personnel Commiuee
- Add funding for one Deputy City Attorney Committee and Mayor and Council
6.2 Authorize the Cily Attorney 10 recrull ror the Mayor & 1/10/94 Referred to Personnel Comnuttee
new position immediately. Council 1/13/94 Recruitment authoriz.ed by Committee
6.3 Reduce appropriations for outside counsel Mayor &
and increase budgeted revenues from lhe EDA 10 Council Should be concurrent Council action wilh approval of
fund the new Deputy City Attorney poSluon. n~w Attorney position.
based upon the expected utilization of Ihe new
Deputy Cily Attorney position.
6.4 Require that the City Attorney penodically
report to tbe Mayor and City Council on how the Provide quarterly progress reports 10 CouncIl.
newly created Deputy City Attorney posllion .s
being utiliz.ed.
Other Comments & Observations
Implementation Measures Responsible
FL"oIANCE DEPARTMENT Person Status
Veri fy accuracy of invoices and c:nsure adequate Finance Director to provide written guidelines to City
supporting documentation accompanies invoices B. Pachon Attorney outlining standards for adequate
documentation.
Implementation Measures I Responsible
RISK MANAGEMENT Person Status
Syslematically update dalabase of outstanding Jim Penman 1/12/94 MIS reVIsed current Risk Managemenl
general liability claims and liabilily reserve Vic Lorch reports.
B. Pachon
C I T Y 0 F SAN B ERN A R DIN 0
INTEROFFICE MEMORANDUM
TO:
Mayor Tom Minor
FROM:
James F. Penman, City Attorney
DATE:
January 21, 1994
RE:
Management Audit of the San Bernardino
City Attorney's Office
We have carefully reviewed the recommendations contained in the
Management Audit of the City Attorney's Office performed by the
Harvey M. Rose Accountancy Corporation, and have the fOllowing
recommendations for implementation:
"1.1 [The City Attorney should] Adopt a formal
competitive vendor selection process to retain the
services of outside counsel and establish procedures
to document that competing firms are objectively
evaluated according to established criteria.
Nothing in this recommendation should be construed
to prevent the City of San Bernardino from at all
times selecting the most qualified law firm, even if
the firm is more costly than other firms. However,
such selection should be based on a competitive
vendor selection process."
Implementation - As noted in the report the evaluation process was
already implemented prior to the study. An objective selection and
recommendation process has now been implemented for recommending
outside law firms to the Mayor and Council.
"1.2 [The City Attorney should] Meet with the Finance
Director to clarify roles and responsibilities
related to payment processing and financial record
keeping for outside counsel legal services. Work
with the finance Director to develop proposed
amendments to the Municipal Code which would clearly
define the financial relationships and
responsibilities of each of these City officials."
Implementation Already implemented as to roles and
responsibilities. Several meetings have been held and more are
anticipated. As to code amendments, Finance Department needs to
identify those code sections they believe need amending for our
joint review.
CAS .js (Audit4.Melll)
To: Mayor Tom Minor
Re: Managemen~ Audi~ of ~he San Bernardino
Ci~y A~~orney's Office
Page 2
"1.3 [The Ci~y Attorney should] Adopt policies and
procedures which will -,"sure that fonsal, written
agreements are establ1.shed with all current and
future contract law firms, and that such agreements
are approved by the Council in public session."
Implementation - Specific policies for such agreements will be in
place by January 28, 1994.
"2.1 [The City Attorney should] Retain working papers
which support budget estimates for outside counsel
requirements."
Implementation - Already implemented.
"2.2 [The City Attorney should] Monitor the status of
appropriations during the fiscal year and provide
advance notice and justification to the Mayor and
Ci ty Council in the event appropriations may be
exceeded."
Implementation - Already implemented.
"2.3 [The City Attorney should] Implement accounting
procedures to be consistent wi th invoice payment
procedures to be established by the Department of
Finance, as recommended below."
Implementation - This is primarily a matter for the Department of
Finance. We will review the invoice payment procedures when
established.
"2.4 [The Director of Finance should] Immediately develop
a comprehensive accounting policy manual."
Implementation - To be accomplished by the Director of Finance.
"2.5 [The Director of Finance should] Establish improved
financial controls over the payment of vendor
invoices, as discussed in the body of this section."
Implementation - To be accomplished by the Director of Finance.
DAB/js [Audit4.Mem]
To: Mayor Tom Minor
Re: Hanagemen~ Audi~ of the San Bernardino
City Attorney's Office
Page 3
"2.6 [The Director of Finance should] Hore clearly define
the duties and respousibilities of the Finance
Department and of other City Departments in the
invoice approval and payment process."
Implementation - To be accomplished by the Director of Finance.
"3.1 [The City Attorney should] Develop improved system.
of accountability over its professional and support
s~aff, including the utilization of time sheet.
which ensure that a~~orney., paralegals and
investigators document how their time is spent by
ac~ivity type and service recipient."
Implementation - Already implemented.
"3.2 [The City Attorney should] Develop management
reports which tabulate and summarize the time spent
and workload accomplishments of professional and
support staff."
Implementation - Development of such reports pending computer
upgrade as outlined in the audit. (See Section 4 of the Audit, page
28 )
"3.3 [The City Attorney should] Conduct periodic and
formal performance evaluations for all staff."
Implementation - The appropriateness and legal implications for how
such evaluations apply to "at will" employees is currently under
study.
"4.1 [The City Attorney should] Develop an information
system master plan which contains the elements
described in this section."
Implementation Research on this matter is in progress and
preliminary reports are due to the City Attorney by February 4,
1994.
"4.2
[The City Attorney should] Assign an
legal secretary to implement the
information systems master plan once
experienced
recommended
it has been
DAB/j. {Audit4.M~1
To: Mayor Tom Minor
Re: Manageaent: Audit: of t:he San Bernardino
Cit:y At:t:orney's Office
Page 4
approved."
Implementation - This matter is pending the computer upgrade and
the hiring of the legal secretary as outlined in the audit.
"4.3 [The Mayor and Council should] Appropriate the funds
t:hat: are necessary to implement t:his informat:ion
systems master plan."
Implementation - The Mayor and Council.
"4.4 [The Mayor and Council should] Authorize t:he City
Att:orney to fill one vacant legal secretary position
on a temporary basis for a period of twelve months."
Implementation - The Mayor and Council.
"5.1 [The Mayor and Council should] Adopt: a cost: recovery
policy which allows the Office of the City Attorney
t:o recover t:he cost: of its operations from non-
General Fund sources where possible"
Implementation - The Mayor and Council.
"5.2 [The Mayor and Council should] Instruct the Finance
Department: t:o assist: the City Attorney in executing
this cost: recovery policy and to report: upon the
actions that: will be required t:o realize t:he
potent:ial additional revenues ident:ified in t:his
Sect:ion."
Implementation - The Mayor and Council, and the Finance Department.
"6.1 [The Mayor and Council should] Approve the following
changes in t:he authorized staffing level of the
Office of t:he City Attorney:
Delete funding for one paralegal: and
Add funding for one Deput:y City Attorney."
. Implementation The Mayor and Council (Note al though the
recommendation does not state what level of Deputy City Attorney is
anticipated, the body of the report speCifies a Deputy City
Attorney IV: See Section 6 of the Audit, page 41)
CAB/j. (Audit..M~1
To: Mayor Tom Minor
Re: Management Audit of the San Bernardino
City Attorney's Office
Page 5
"6.2 [The Mayor and
Attorney to
illllDediately."
Council should] Authorize the City.
recruit for the new position
Implementation - The Mayor and Council.
"6.3 [The Mayor and Council should] Reduce
appropriations for outside counsel and increase
budgeted revenues from the EDA to fund the n_
Deputy City Attorney position, based upon the
expected utilization of the new Deputy City Attorney
position."
Implementation - The Mayor and Council. The City Attorney has
determined that litigation will be the most effective use for this
position. Therefore, a reduction in appropriations for outside
counsel will be the funding resources rather than increased revenue
from EDA.
"6.4 [The Mayor and Council should] Require that the City
Attorney periodically report to the Mayor and City
~ouncil on how the newly created Deputy City
Attorney position is being utilized."
Implementation - The Mayor and Council (Note - implementation of
this recommendation_must await filling of the Deputy City Attorney
position)
OTHER COMMENTS AND OBSERVATIONS
1. The Finance Department should verify "that invoices
submitted by vendors represent valid claims against the
City and that such invoices are consistent with existing
contractual agreements." (Page 3 of the Audit)
Implementation - The Finance Department.
2. The Finance Department should ensure "that adequate
supporting documentation accompanies invoices prior to
the payment of such invoices." (Page 4 of the Audit)
Implementation - The Finance Department.
3. The Risk Management Department should "systematically
update its database of outstanding general liability
OAB/js (Audit4.Meal
To:
Re:
Mayor Tom Minor
Managemen~ Audi~ of ~he San Bernardino
Ci~y A~~orney's Office
6
Page
claims agains~ ~he Ci~y [and general liabili~ reserve)
~o reflec~ significan~ even~1! ~ha~ ~ranspire. W (Page 4 of
the Audit)
Implementation - Risk Management.
4. "[T)he Ci~y A~~orney should ac~ively seek to improve
i ~s working rela~ionship wi ~h o~her Ci ~y Depar~men~s."
(Page 6 of ~he Audi~)
Implemen~a~ion - The office of the Ci~y Attorney has already begun
attempting to be more "user friendly, W with the officers and
employees of the City.
5. The Finance Depar~men~ should e.~abli.h an au~horized
signa~ure file. (Page 18 of ~he Audi~)
Implementation - The Finance Department.
6. "The Ci~y A~~orney should consider modifying ~he
agreemen~ wi ~h ~he Economic Developmen~ Agency ~o provide
for direc~ billing for all services ins~ead of using ~he
exis~ing re~ainer policy." (Page 36 of ~he Audi~)
Implementation - The Mayor and Council.
/'
/.,
. ~~~""
PENMAN
D~'~. (Audit4.Mem)