(2)AR 011610 Operational Performance Audits

Browse Search

ITEM NO. STAFF REPORT DATE: JANUARY 16, 2010 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ROD FOSTER, CITY MANAGER SUBJECT: OPERATIONAL PERFORMANCE AUDITS RECOMMENDED ACTION It is recommended that the City Council ratify the City Manager's selection of auditors as detailed in the findings herein and authorize the City Manager to execute professional services agreements with Harvey Rose Associates of San Francisco, CA in the amount of $69,900 for an Operational Performance Audit of the Colton Fire Department and in the amount of $117,670 for an Operational Performance Audit of the Colton Electric Utility. GOAL STATEMENT The proposed action will support the City's goal to provide improve the City's service level and provide independent review and audit of all City operations. BACKGROUND Due to fiscal challenges, the City of Colton has been forced to cut millions of dollars across all City operations — the most severe being in the City's General Fund. Operational Performance Audits provide independent review of City operations, as well as suggestions and alternatives for service delivery. Previously, the City Council, the local media and the community -at -large have made comment of the City Manager's requirement to ensure effective City operations. As the result of those conversations, the suggestion of Operational Performance Audits is being presented to ensure outside independent audit of the City's services and programs. Upon Council direction and approval to proceed, the consultant will perform two independent audits each fiscal year until all City operations have been audited under the Operational Performance model. The schedule of audits is proposed as follows: FY 2009-10 Fire and Electric Departments FY 2010-11 Development Services (Community Development, Economic Development and Redevelopment) and Public Works (Engineering, Operations, Water and Sewer)