Item B - Ind. External Auditor - Laserfiche WebLink

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At the time the auditor proposal was discussed by the Citizen Charter Review Committee, the cost estimate was placed at between $150,000 to $200,000 in initial start-up costs and then approximately $85,000 to $100,000 for each ensuing year. Other Background Information The Citizen Charter Review Committee discussed the concept of a performance auditor over the course of several meetings during 2001. The final language proposed for the charter amendment is as shown below. City Performance Auditor. The city pe~ormance auditor shall be appointed by the City Council. The performance auditor shall conduct or cause to be conducted performance audits and may conduct studies intended to measure or improve the performance of city functions following generally accepted government auditing standards. The performance auditor may be removed from office with or without cause by the City Council. The performance auditor shall possess adequate professional proficiency as demonstrated by a relevant certification such as a Certified Public Accountant, Certified Internal Auditor, or Certified Management Accountant, which shall be retained throughout tenure in the position. All audit reports are public records. The City Council shall provide for the creation of an audit committee to oversee the performance auditor. The audit committee shall include the city manager and other members as defined by ordinance. Among its duties, the committee shall forward candidate recommendations for the auditor position to the City Council. The CCRC reviewed a number of documents related to performance auditing, including a meeting with the auditor from the City of Portland and the service profile and performance management work being done by the City of Eugene. This information was contained in the report from the CCRC. Timing If the City Council wishes to place this proposed amendment on the November 2004 ballot, it must take final action not later than August 9, 2004, in order to meet several filing requirements and to allow time for possible appeals. OPTIONS The council may act to place this on the November 2004 as currently written, or may modify it and make subsequent decisions about placing it on the ballot. STAFF RECOMMENDATION In 2001 and 2002 when the CCRC and the City Council discussed the proposals related to an internal performance auditor, both then-City Manager Jim Johnson and City Manager pro tem Jim Carlson expressed strong concern regarding the proposed position. The concern was that a council-appointed performance auditor is not appropriate for a council-manager form of government. In a memorandum to the City Council on this topic, Jim Johnson said the creation of a position hired by and reporting to the City Council would create a "situation ripe for conflict." This same concern continues today. It is recommended that the language proposed by the CCRC not be submitted to voters. It should be noted here that the City Council has the authority at this time to direct the City Manager to conduct audits and reviews on city programs without the need to revise the charter via an election. L:\CMO\2004 Council Agendas\M040728\S040728B.doc