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Home My WebLink About36-Council Personnel Committee CITY OF SAN BER~_ .RDINO - REQUEST L JR COUNCIL ACTION From: COUNCIL PERSONNEL COMMITTEE Subject: Referral by Personnel Committee to full Council of implementation plan for City Attorney audit Dept: D~~ March 24, 1994 Synopsis of Previous Council action: Recommended motion: That the document submitted by be selected as the implementation plan for the City Attorney's audit. (L Signature Contact person: Yes Ward: FUNDING REQUIREMENTS: Amount: Phone: Supporting data attached: Source: (Acct. No.) (Acct. Description) Finance: Council Notes: VfL 6/r;JQy C{frrtd ID I .L'..1/Aj/lll~l.t /7'1;~Y / I (p/,)~/99' I #2.5- 75-0262 Agenda Item No.. r~ C I T Y 0 F SAN 8 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. city Administrator FAW/md June 1994 City Attorney Audit Implementation 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 tbe most qualified law firm, even if the firm is more costly tban other firms. However. sucb selection sbould 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 tbe City Attorney to meet witb Finance Director to discuss Finance Director to develop proposed proposed code amendments. amendments to the Municipal Code whicb would clearly define tbe financial relationsbips 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 contract review/approval. law finns, and that such agreements are approved by the Council in public session. 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. Staffing and Personnel Management Responsible Implementation Measures Person Status 3.1 Develop improved systems of accountability over its professioual 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 purchase 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 has 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 & 11 I 0/94 Referred to Personnel Committee vacant legal secretary position on a temporary Council basis for a period of twelve months. Section 5. 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 Implementation 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 & 1/10/94 Referred to Personnel Committee new position immediately. Council 1/13/94 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 Implementation Measures Responsible RISK MANAGEMENT Person Status Systematically update database of outstanding Jim Penman 1/12/94 MIS revised current Risk Management general liability claims and liability reserve Vie 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 cri teria. 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. DABjs [Audit4.Mem] ~t~ ~?~ S!P !/3ic To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney's Office Page 2 "1. 3 [The City Attorney should] Adopt policies and procedures which will "msure that fo~l, written agreements are established 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 with 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 ~he San Bernardino Ci~y A~~orney's Office Page 3 "2.6 [The Direc~or of Finance should] Hore clearly define ~he du~ies and respousibili ~ies of ~he Finance Depar~men~ and of o~her Ci ~y Deparuen~s in ~he invoice approval and paymen~ process." Implementation - To be accomplished by the Director of Finance. "3.1 [The City A~~orney should] Develop improved sys~ems of accoun~abili~y over i~s professional and suppor~ s~aff, including ~he u~iliza~ion of ~ime shee~s which ensure ~ha~ a~~orneys, paralegals and inves~igators documen~ how ~heir ~ime is spen~ by ac~ivi~y ~ype and service recipien~." 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] Conduc~ 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 ~he 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/js (Audit4.Mem) To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney'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 that are necessary to implement this information systems master plan." Implementation - The Mayor and Council. "4.4 [The Mayor and Council should] Authorize the City Attorney 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 to recover the 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 to assist the City Attorney in executing this cost recovery policy and to report upon the actions that will be required to realize the potential additional revenues identified in this Section." Implementation - The Mayor and Council, and the Finance Department. "6.1 [The Mayor and Council should] Approve the following changes in the authorized staffing level of the Office of the City Attorney: Delete funding for one paralegal; and Add funding for one Deputy 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) DAB/js [Audit4.Mem] To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney's Office Page 5 "6.2 [The Mayor and Attorney to ilDlDediately." 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 new 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 DAB/js [Audit4.Mem] To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney's Office Page 6 claims against the City [and general liability reserve] to reflect significant events-that transpire.R (Page 4 of the Audit) Implementation - Risk Management. 4. "[T]he City Attorney should actively seek to improve its working relationship with other City Departments." (Page 6 of the Audit) Implementation - The office of the City Attorney has already begun attempting to be more "user friendly,' with the officers and employees of the City. 5. The Finance Department should establish an authorized signature file. (Page 18 of the Audit) Implementation - The Finance Department. 6. "The City Attorney should consider modifying the agreement with the Economic Development Agency to provide for direct billing for all services instead of using the existing retainer policy." (Page 36 of the Audit) Implementation - The Mayor and Council. DAB''':5 [Audit4.Mem]