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HomeMy WebLinkAbout26- Personnel ITY OF SAN BERNAR[ NO - REQUEST FOR OUNCIL ACTION ., COUNCIL PERSONNEL COMMITTEE Subject: Referral by Personnel Committee to full Council of implementation plan for City Attorney audit March 24 , 1994 psis of Previous Council action: mmended motion: That the document submitted by be selected s the implementation plan for the City Attorney' s audit . Signature act person: S Phone: orting data attached: Yes Ward: DING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. Description) � �, �/' Finance: Notes: ,641 411& �2 Agenda Item No._ o26 March 1994 City Attorney Audit Implementation Schedule Section 1. Use of Outside Counsel, Vendor Selection Responsible Implementation Measures Person Status 1.t 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, uch 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 Finance Director will develop written guidelines processing and financial record keeping for B. Pachon outlining payment processing procedures. Finance outside counsel legal services. Work with the Director to meet with City Attorney 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 contract review/approval. law firms, and that such agreements are approved by the Council in public session. Section 2. Financial Controls .,,r 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. 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 pan 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 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. 3.3 Conduct periodic and formal performance evaluations for all staff. Jim Penman 0 Section 4. Information Systems and Office Automation Responsible Implementation Measures Person Status 4.1 Develop an information system master plan Jim Penmavi- 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) 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. 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. ,tion 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 Attomev 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 r is Section. 0 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 "s 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 Mavor & 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 Attomey 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 Verifv accuracy of invoices and ensure adequate Finance Director to provide written guidelines to City supporting documentation accompanies invoices B. Pachon Attorney outlining standards for adequate documentation. Implementation Measures Responsible RISK RIANAGENfENT Person Status Systematically update database of outstanding Jim Penman 1/12/94 MIS revised current Risk Management _general liability claims and liability reserve Vic Lorch reports. B. Pachon C I T Y OF S A N B E R N A R D I N O 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. DAB is (Audit4.Meml 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 insure that formal, 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 City 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.Kel 0 To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney' s Office Page 3 "2 . 6 [The Director of Finance should] More clearly define the duties and respoi.sibilities 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 systems of accountability over its professional and support staff, including the utilization of time sheets which ensure that attorneys, paralegals and investigators document how their time is spent by activity 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 experienced legal secretary to implement the recommended information systems master plan once it has been DAB/j• [AUdit4.Mea] 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 - although 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/j. [AuditC Mem] To: Mayor Tom Minor Re: Management Audit of the San Bernardino City Attorney 's Office Page 5 "6.2 [The Mayor and Council should] Authorize the City Attorney to recruit for the new position immediately. " 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/is [AuditCMem[ 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 eventB that transpire." ( 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 . i ' AN F ES . PENMAN DAB ;z (Audi C4.Mem] 0 o C I T Y OF S A N B E R N A R D I N O INTEROFFICE MEMORANDUM TO: The Mayor and Common Council FROM: Dennis A. Barlow, Sr. Asst. City Attorney DATE: April 1, 1994 RE: implementation Plan for Audit of City Attorney' s Office The question arises whether the Council can adopt an implementation plan for the recent audit of the City Attorney' s office which requires the City Attorney to report to, and follow the direction of, an officer of the City other than the Mayor. The Charter of the City, which is in effect the constitution of the City, outlines the powers of the Mayor in pertinent part as follows: "The Mayor shall cause the strict enforcement of all laws and ordinances within his jurisdiction, shall vigilantly observe the official conduct of all public officers, and take notice of the fidelity and exactitude, or the want thereof, with which they execute their duties and obligations, especially in the collection, administration and disbursement of public funds and property. . . .The Mayor shall have general supervision over all departments and public institutions of the City; [and] shall cause them to be honestly, economically and lawfully conducted. . . " ( Charter 550) The Charter grants the Council the legislative responsibilities ( Charter §30) and then lists specifically what these powers entail ( Charter §40 ) . Nowhere does the Charter give the Council the power of supervision or the power to withdraw from other City officers powers vested in them by the Charter. On the contrary the law is clear that such powers cannot be withdrawn and given to another. The long established rule can be stated as follows: "Whatever duties are imposed on officers by law must be personally discharged by them and the City cannot relieve its officers from discharging their regular duties by contracting by ordinance or otherwise with other persons to perform part or all of them. " ( 2 McQuillin, Municipal Corporations, 3d Ed. Rev. , 510.35, pg. 1113; See also House V. Los Angeles County ( 1894 ) 104 Cal 73, 78 ) To: Mayor and CCon Council O Re: Implementation Plan for Audit of City Attorney ' s Office Page 2 i In this instance the . .ayor has exercised his functions of general supervision as outlined in the Charter by approving the implementation schedule prepared by the City Attorney ( see attached ) . The Council cannot take that function away from the Mayor and give it to another. The Council may not place itself or another officer in the place and stead of the Mayor without an amendment to the Charter. DBNNIS A. ARLOW� CITY OF SAN BERNARDINC,� INTER-OFFICE MEMORANDUM OFFICE OF THE MAYOR TO: James F . ?enman, City Attorney FROM: Tom Minor , Mayor SUBJECT: Implementation of Audit of City Attorney ' s Office DATE: January Z . _994 COPIES : All Council Members; Rachel Clark, City Clerk; David Kennedy, City Treasurer; Shauna Clark, City Administrator : Barbara Pachon, Finance Director I have reviewed the attached memorandum from you dated January 20, 1994, outlining t.le implementation of the audit of the City Attorney' s Office, and approve the implementation schedule and process as indicated. I note that this schedule is similar to the one proposed by the City Administrator. I have compared 'both schedules and the one proposed by you is not inconsistent with that schedule proposed by the City Administrator. Tam Minor, Mayor m 0mm M t7 0 (D0) PA- m p 0 O a 0 O w rr c 1 ❑ M H 11 p H N F+ m M ,a O rt w pi pi p r ro 0 r l< n to n a A a G p W (l �t •eJ W N• r O 0 a �• J a a p D r F p � Qn to r r r t] rn M m w r N r > w C H• J (A � W a 7 p W m m n pa m W N H fA �3 W r N r w m rt }WY o `o - H r rn N W rn J H N r O Vi dt J [•• VI W N VI W N [) o r 3 m M •ry O O �O A O N pJ rt p k p t0 O w z O O O O N ] CL O O O O O O m Cl m O O O O W 4 M C Ll N <n t/i N N M m A 0 m o o m 'A m a - - p w w A w 0 tq •Z M O W A N N V b 1 0 O �O w O W O m tV h m m O 01 GD A • • 7. ct O N O J W N H W W m W 'ymy A w Ln N N 01 m 7. w w 01 O u Q O Ln N ul r b m rn o ea O W N `0 O W co O O\ 0 7. O �0 y1 N o r m 0 o N o o H p O O O U1 N O `L o O A +n +n tIl N b t^ p I a r r r to M Ul q I r ko 0 SO G1 z I N r 0� O N n t• K I v w to m a b I r a w A m t9 O 0 I r I N O N O b m [g O r O O Hm Go I H N to N 1/l N m H M O I P I0 W N W 0 � I ` p J J m O I A A O\ at V m O I V 10 • m V 0 o 00 w O H I w m