Loading...
03/15/1994 (2) '.' ,.. " .,: :.....~.,.., ......':,\ ';. j'i'~'.,_.",,~~,-''',:,,'''..'..'J.'..!'./';J':'':'. '.~" .,.:,. :'.,.;..... L. .".':" "~~I. ~.. I: ~ .~" ,~', ~ "., ."~"l "1""}' I', , CHARTER I REVIEW COMMITTEE MINUTES Date ~25 " ' , ~~~\4.H~t~~...;.'o"\~~""""""""" ' , .:........~-.J.rri......"-""......lqil...""...-"~iJ........,,#fL.....'.',~. ~"'.......H...-....~..."............._'...... >,. . OF< ~.......~'. .....L. "'+~.k;lt ....:...H... 4Li!:'I,.~,:'\r. ~~~"1:t~!...~;:".....~ ,.:.,~' ..,. ".,..-."...' .,..,. .:,':. ,:',',' ...'..'.".:'.., ',.."...,:' .'.'.......,.. ' '. .~'. ..':. ",. :,"'," ,',,'::' "":.. ,', .\' . . . ,-\' " '. :.." ," tic' r. ,:=.J,. (L \"" \, ,.' , " ~ CHARTER REVIEW COMMITTEE MEETING March 15, 1994 The Charter Review Committee met at City Hall on Tuesday, March 15, 1994 at 7:00 p.m. with the following members present: Gerald Figurski, Chairman Jerry Lancaster, Vice.Chairman Joe Evich Kenneth Hamilton Curlee Rivers Tony Salmon Karen Seel Les Smout Absent: Anne Garris AI Lijewski Also present: () Mary K. Diana, Assistant City Clerk The Chairman called the meeting of the Charter Review Committee (CRC) to order. Approval of Minutes of Februarv 23. 1994 and March 2. 1994 In the March 2, 1994 minutes, Member Salmon requested on page 2, paragraph 10, change the word "decisive" to "divisive;" Chairman Figurski requested on page 3, paragraph 6, insert the word "member" between the words "multiple" and '.district;" Member See I requested on page 5, paragraph, correct the spelling of "Rainey;" and on page 5, paragraph 11, change nCity's" boards to "non-profit" boards. Member Evich moved to approve the minutes of March 2, 1994 as amended. The motion, was duly seconded and carried unanimously. In the February 23, 1994 minutes, Member Smout requested on page 7, paragraph 7, sentence 2, read as follows: "He expressed concern of a new level of administration being created;1l and Chairman Figurski requested on page 8, paragraph 11, add the word "only" before the word "paralegals. II Member Smout moved to approve the February 23, 1994 minutes as amended. The motion was duly seconded and carried unanimously. o .~ II," mlnch0316.94 1 March 16. 1994 " The minutes will be amended to reflect the requested changes. f~ Chairman Figurski welcomed Mayor Garvey and all the citizens in attendance. He reported the CRe has met four times prior to tonight noting the CRC has made no recommendations regarding the charter up to this time. The Chairman noted all the meetings of the CRC are open to the public. Public Hearing Bob Wright stated he was on a subcommittee that put together a list of recommendations for the CRC to consider. Chairman Figurski noted these recommendations have been received by the CRC. Mr. Wright said he did not personally support a strong mayor form of government and suggested a five member commission who would elect--a chairman on an annual basis. '~ He reviewed the subcommittee's recommendations indicating the majority consensus of the subcommittee was to leave the duties of the City Attorney as are currently described in Article IV, Sec. 4.03 of the charter. The subcommittee recommended the 20 percent limitation on indebtedness be reduced to 15 percent; that the following be added to Article II, 2.01 (4): "The Commission shall not purchase any real property nor construct any new buildings at a cost of $2 million or more without first obtaining two appraisals submitting construction for bids and then submitting purchase or construction costs to referendum."; and in Article II, 2.01 (4) pa~agraph 2, sentence 2, deleting the words "less than" to read "Surplus Real Property may be transferred to another governmental entity for the appraised value after advertized public hearing and a finding by the Commission of a valid public purpose for the transfer. Other recommendations included specifying Commission compensation and expenses in the charter; requiring all senior staff, Deputy City Manager, Assistant City Manager, Director of Public Works, Director of Administrative Services, Director of Parks & Recreation, Gas System Manager, Police Chief, Deputy Police Chief, Fire Chief, Deputy Fire Chief, City Attorney and Assistant City Attorneys, to establish residency in the City within one year after appointment; changing the $1 million referendum requirement to $2 million with the exception of public health, safety, state and federal mandates, or refinancing of current bonds; and imposing term limitations on the commission of three consecutive three year terms with a minimum of three years of being off the Commission before running again for office. Chairman Figurski asked if the subcommittee recommended a specific salary increase for the Commission. Mr. Wright said he had recommended a 75 percent increase as there had been no increase in commission salaries in the last 15 years. The rationale was 5 percent per year for 15 years. Majority consensus of the subcommittee was not to exceed 100 percent. o mlnch0315,94 2 March 16, 1994 " " I') Chairman Figurski asked what the advantage would be to have the mayor elected by the commission versus being elected by the citizens at large. Mr. Wright responded he did not know if there would be any advantage. Member Lancaster expressed concern that requiring all senior staff to be residents of the City would limit the availability of qualified candidates and would pose an undue hardship on employees and may possibly discourage them from accepting promotions. Mr. Wright said the subcommittee's feeling was that senior staff should be citizens of Clearwater and pay City taxes. Member Evich questioned whether the recommendation was for this issue to be retroactive. Mr. Wright believed this should be left up to the Charter Review Committee. Marilyn Giaquinto opposed a strong mayor form of government. She favored going to special districts to give minority representation on the commission. She felt the city should be divided into four districts and cited examples. Ms. Gioquinto favored having the mayor elected at large by the citizens. She requested consideration be given to addressing ethics in the charter. She believed when studies are done regarding the City, these be approved by a majority of the commission and paid for by the City. She requested the CRC meetings be more widely advertised. In response to questions, Ms. Gioquinto said she favored a city manager form of government and keeping the commission at five members. '~ Discussion ensued in regard to single member districts. Ms. Gioquinto felt Greenwood did not have a true representation in the City. Chairman Figurski believed more than four districts would be required to guarantee minority representation. Member Smout indicated with the number of registered minority voters a minimum of nine single member districts would be required to mathematically provide a simple majority to elect a minority. Ms. Giaquinto believed minorities are frustrated because they feel they do not stand a chance of being elected. She felt going to districts would show that the City wants to bring in minority representation and would increase minority voter turnout. Member Rivers agreed this would give the minorities a better chance. Ms. Gioquinto repeated she did not believe the Commission should be increased and believed the districts could be designed to give an advantage to minorities. Member Evich noted there are other minorities than blacks in the community that could raise the same issue about representation. In response to Member Evich's question, Ms. Giaquinto said the representative for each district should be elected only from that district and the Mayor elected at large. Member Evich questioned whether the person representing a certain district would have a parochial view or maintain a broader view of representation. Ms. Giaquinto felt a broad view could still be ::J mlnch0315.94 3 March 16, 1994 " The meeting recessed from 7:40 p.m. to 7:45 p.m. (~ maintained as all the representatives of the districts would want the City to go forward. Lois Cormier noted she has lived in Clearwater for 40 years and said she likes the charter the way it is. She said the City has an excellent ethics ordinance. She opposed a strong mayor form of government and favored having a well paid professional city manager. She said there was no need for and opposed going to districts. . She supported a salary increase for the commission. She questioned whether the City is properly advertising their meetings. Member Hamilton said he is not looking at the charter as a broken document but as something that may need attention. Internal Audit Presentation '~') ,- Jeff Harper, Director of Administrative Services, noted Interim City Manager Betty Deptula was unable to attend tonight's meeting. He said Ms. Deptula asked him to express her commitment to an internal audit operation whether or not there is a general office accounting function reporting directly to the commission. He indicated, most city managers, as chief executive or administrative officers, feel it is extremely important they have the tool that an internal audit office reporting directly to them provides to ensure proper internal control. He said Ms. Deptula has no opinion as to whether or not there should be a general accounting office. He referred to information previously submitted to the CRC which included a description of the general nature of the internal audit department, a chronology of their past 24 months of projects, etc. Margie Simmons noted she was the internal audit director for approximately 8 years. She said during the last two years the internal audit department was not always fully staffed due to turnover.' She reported on the duties that the internal audit department is and has been responsible for which include cash handling, providing support to the external auditor, payroll and revenue audits, inventory control, insurance monitoring on city's self-insured fund, etc. She noted the internal audit department provided staff support to the external auditors which resulted in a lower cost for the audit. Member Salmon asked when support was provided for the external auditor. Ms. Simmons responded approximately 5-6 years ago; however, it was determined this was not efficient use of the personnel for the clerical duties performed. v minch0315.94 4 March 15, 1994 '. JtJ 'J , ,~~~ ~ " " "\: I~<....' <, In response to Member Evich's questions, Ms. Simmons responded the department currently consists of a director and an internal auditor. Previously, two internal auditors supported the external auditor for approximately a 3-month period. Discussion ensued in regard to blocks of time when the internal auditor position has been vacant. Member Lancaster questioned whether there has been difficulty in filling this position. Ms. Simmons said promotions within and outside the City and discussion of a GAD have contributed to the position being vacant. Member Lancaster said it appears as though this position has had low priority. Ms. Simmons said this is not the case. Member Salmon questioned whether there would be any conflicts between the GAD and the internal auditor. Ms. Simmons saw no conflict. Discussion ensued in regard to internal audit providing support to the external auditor and Ms. Simmons indicated staff still assists in providing information. Member Evich asked if the City is paying more than before. Ms. Simmons said the difference in the amount is not significant. She said when the auditors were switched as is required every five years, a new contract was negotiated. Discussion ensued in regard to the 1993 audit report taking approximately nine months to be completed. A question was raised whether this was considered to be a standard or an extra lengthy time frame to complete an audit. Ms. Simmons believed most governments go- to the March 31 deadline of getting reports issued. Member Evich questioned if internal audit could work with the external auditor to increase the time frame. Ms. Simmons responded it is not the audit process but the efficiency in providing information. Member Hamilton asked what functions the GAD would perform as a separate entity that are not being performed now. Ms. Simmons believed the GAD would be involved in special projects for the Commission. She felt it would be difficult for the GAD to figure out what needed to be done. In response to a question, Ms. Simmons indicated the GAD would have a budget similar to the internal audit department which is approximately $122,000. She noted this amount does not include clerical support. Member Smout asked if establishing a GAD would affect the internal audit department's mission statement or scope. Ms. Simmons believed it would not change as direction to internal audit comes from the City Manager. Chairman Figurski questioned if the primary activity of internal auditing has been financial as opposed to review of operational programs. 'Ms. Simmons indicated the audit has been driven by financial means; however, it has shown whether operations are efficient. mlnch0316.94 5 March 15, 1994 Wayne Burks, Coopers & Lybrand, noted this is their third year auditing the In response to the Chairman's question, Ms. Simmons said if she had found a i~ situation that needed attention, and it related to the person she reported to, she would ! be prepared to go to the Commission. The Chairman asked if there would be any value to increasing the budget for internal aUditing rather than creating a separate position. Ms. Simmons believed a staff of three was adequate to get the job done at the time. She said she was not involved in the decision to reduce the staff to two. Discussion ensued in regard to the creation of a GAD and in response to a question, Ms. Simmons believed there would still be a need for an internal audit department even if a GAD is created. City. Member Lancaster asked if the materials submitted by the City for the audit are organized sufficiently to minimize the time spent. Mr. Burks said the City's audit was a slow process last year and believed there were some opportunities for improvement in efficiency and timeliness. He said they would be coming forward with recommendations. Member Lancaster asked if staff has been expeditious in following recommendations. Mr. Burks said staff has attempted to address them. ,:) Member Evich asked if this year's recommendations are the same as previously. Mr. Burks said he did not recall. In response to a question, Mr. Burks said their firm audits approximately 1 ,000 city, county and state governments throughout the United States. He said they have not done a survey to show which cities have an audit function that reports directly to the City Manager. He believed a dual audit function is rare. Member Salmon asked if Mr. Burks is involved with any other Florida cities. Mr. Burks said their firm handles the cities of Safety Harbor, Tampa, and New Port Richey. He said previously they did the City of Gainsville and Miami Beach is handled by their Miami office. Member Salmon noted Gainsville has a CPA audit and also an internal auditing function. In response to a question, Mr. Burks clarified that internal auditing is not responsible for the preparation of financial information for the external auditor. That function belongs to the Finance Department who keeps the records of the City. The external auditor audits those records. Member Seel questioned if internal auditing should be responsible for implementing the recommendations made by external audit. Mr. Burks responded this could be a management or an internal auditing responsibility. u mfnch0316.94 6 March 15. 1994 " :: . ~. ,':~ ':,..:, "L: .'....~. '.' ". r i, : .' ",." ,.'", '\'.: ' i. ,l." . '.'.-!. ,~:..~,:: ....,:. :-:;", ...:..,,~~.'..:.,_ ..: :,,~...l:.: ~',: :: < .' .': : '.:.. " ~.' ,j':" 'j, :'.' ': '" I r , ...'. ' '. ~., ~ ',' l ,'~ '. ::. , I . " .. '; ';, , :< .< .' ':." .... "',',' '. ' . ' . ',. " + t~ Member Salmon asked if there is any advantage to limiting how long the City works with one auditing firm. Mr. Burks said there is no evidence to support any benefits or enhancement in service by changing auditing firms on a regular basis. In response to a question, he responded he is not familiar with any cities having an internal auditing department and a GAD. In response to a question, Mr. Burks said an operational efficiency audit would be a separate undertaking by the external auditor. Member Hamilton asked if the internal financial condition of the City is at an acceptable standard. Mr. Burks responded their job is to express an opinion on the financial statement. He said nothing has come to their attention to indicate material weaknesses in internal control or irregularities, illegal acts, etc. Chairman Figurski asked if the City Manager did not want to report an irregularity to the Commission, would the internal auditing department raise that issue. It was indicated they would. '~) Chairman Figurski asked if there is a cleansing in the audit before it goes to the Commission. Mr. Burks said their firm has never met directly with the City Manager regarding the audit. Member Evich asked if this is common among municipalities. Mr. Burks responded it varies. He said the scope of the audit is set by standards, Florida Statutes and sometimes local laws. Dan Katsiyiannis, Internal Auditor, noted under the AICPA professional ethics, he has the obligation to report improprieties. He believed the concept of the GAD came about because the Commission did not receive regular reports from internal audit. He proposed that audits be reviewed with the Commission on a quarterly basis. In response to a question, Mr. Katsiyiannis said his outlook will not be financial. Interim City Manager Deptula's main concentration would be with respect to operations in improving efficiency and effectiveness while minimizing cost. He noted revenue audits are being conducted. He said he will be reviewing the year end close out process. He also proposed an audit calendar and hoped to submit one within the next 30 days. Member Salmon asked if it would be unusual for the Commission to request the City Manager to have internal audit study a specific operation from a procedures and effiCiency standpoint. Mr. Katsiyiannis said he would welcome it. Member Rivers believed the efficiency of the Internal Audit Department has been hampered by the Jack of personnel or instabWty from people leaving their positions. He questioned whether the internal audit department with the appropriate number of staff could accomplish what a GAG could. Mr. Katsiyiannis said most o mrnch0315.94 7 March 16, 1994 , .............,...,....-~, <. ~ ,~,.. ......,~,., ,~.~~.--~. - . '.',: ,~ :' '.' .,':" ,.". :..,.:.', .. ,: ,'.."i'...:., ,,:,:".: '. .. ,.',."', .... .":' ,',' \ ','. ,,' , .'''. .'~': .' .. '. >:,:, ,": :"'.. ..,_... \.,.. '\' " ,'" -" ~" I'. ..-..,' , " ". ' . . 'I ' , " ' ; '.' '.., l .' a.:.', I . ____ ., ~-' 1:"," \ '. \, '... . . ',".:.o . '" \. '. : " : ~ ',~," , ':' I: ":', ;', .... ,:~. ': ': :'; .:, :,:, ..~;::._..: ~... ~~~;..',... 4~':. ~ ~:,,, ....: ..... .. .,'... .0..., " '. .:'.:' < .". ,.'"., " : .: '., ' ~. ' .' f""., ,'II" 'I ',I ," ." , '. . t ' ;', '. '. + .:.' ,:: . ',' : ..' , l.. ,~' ,I:~. " '. J " ' l ,. .~ ...... definitely. He said, as a new employee, he Is not familiar with all City operations and procedures. He said he will revisit old problem areas in addition to new areas to improve the process. In response to a question, Mr. Katsiyiannis indicated if a new project comes up requiring attention, the audit calendar would be reprioritized. He said he needs more time and Information to determine the appropriate number of staff to adequately perform the jab in the internal audit department. Member Evich believed the direction proposed for internal auditing is very positive and indicated proper staffing would help with the inefficiencies. Member Lancaster said there is a perception that internal auditing has not been very important over the past few years. Mr. Katsiyiannis said internal auditing has spent alot of time supporting the Finance Department due to inefficient systems and being understaffed. Mr. Harper said Ms. Deptula asked him to stress to the committee how important she believes the internal auditing function is. j:'~' Mr. Smout questioned why the staffing level in the internal audit department has been reduced to two. Mr. Harper said there is a cap on positions and a senior accountant position in the Finance Department was created by reducing staff to two in internal audit. The discussion of a GAD was also considered. Chairman Figurski thanked staff and the external auditor for their presentations. Discussion ensued In regard to attempting to obtain a speaker on sIngle member districts and the City Attorney for the April 6 meeting. Member Hamilton moved to maintain the current council/manager form of government In the City of Clearwater. There was no second. Member Salmon requested the City of St. Petersburg be contacted for information regarding single member districts. Staff to contact. Member Figurski felt it wourd be appropriate to wait until the next meeting when a full committee is in attendance to vote on form of government. Member Evlch pointed out he will not be in attendance at the next meeting. Member Evich noted staff's white paper referred to a "Citizens Bill of Rights" which Is Incorporated into the City of MIami Beach's charter. ." mlnch0316.94 8 Mafoh 16, 1994 i.:; ~ -I,:.~::: (:: ::(,;'i;~~,~~;.';'~~k;,:ff:: ( , . , , ,.:. . , . ' ,. - .' . ,'. . " ' "\" " -' . ,.'. .. ..' ,',., . , " ".-.' .. \. " ' , r ~ " ~ .. . , : ". " . - , , (I ',' L' U. "::I .' , , . '" ,', ' . . .uAl ~ " . I '" " I' > " , .' 0.' . I.. ':'_'.~'."i"'..:,....'t'L"1t.4,\,U'\~i\,,:~,)>'~:.:.:~<;.'''~,:::T'',ll>>'~,:<~.':j, 11'.' ;:..I..;.c. ':" "c ., a Member Evich moved to include an addition similar to the "Citizens Bill of Rights" in the City of Clearwater charter. There was no second. Member Seel believe'd it would be better to wait for a full board before voting on this issue. The meeting adjourned at 8:50 p.m. o , , , " o m[nch0316.94 . :9 March 16, 1994