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B. WORK SESSION: Discussion of Independent External Auditor Mr. Taylor noted that Ms. Bettman proposed having a discussion on bringing in an independent external auditor at a work session in the last month. He asked Mary Walston, Council, Public, and Government Affairs Manager for the Central Services Department, to speak on the issue as she had staffed the Citizen Charter Review Committee (CCRC), from which the proposal had originated. Ms. Walston stated that this issue was considered by the CCRC in 2001, and had been among several recommendations made to the council in 2002. She related that the specific recommendation regarding the creation of an external auditor position had not been forwarded by the City Council to the November 2002 ballot. She added that the materials provided to the council were the same as those previously considered in July 2002. Further, she noted that subsequent to the preparation of materials for the meeting today, a motion had been circulated by Council Bettman with the intention to place this question on the November 2004 ballot. The proposed motion was at councilors' places. Ms. Bettman expressed her intention of placing the motion on the table. She suggested she would be willing to reconsider the motion when Mr. Poling was present to vote on it, should it prevail and should he so wish. She opined it would be unwise to assume that the recent misdeeds of police officers were not indicative of a chronic systemic problem within the organization. She remarked that the City was unable to look at its services and operations objectively and it would help to provide an independent mechanism of oversight. She felt this would help reestablish trust and accountability in the minds of the public. Ms. Bettman disagreed with the contentions of those who maintained that hiring an independent external auditor would change the form of government from the council/manager form to one in which the council had more power. She declared such an auditor had no policy-making authority, no implementation authority, and would only provide factual analysis which would inform decision-making. She opined that this would be a way to measure government service with the goal of better quality and more accountable government. Ms. Taylor supported placement of the issue on the ballot in order for the public to have an opportunity to vote on it. She felt that the previous city manager's opposition to it had contributed to the council's decision not to put it on the ballot. Mr. Pap~ thanked Ms. Walston for the information. He commented that it could be a good service for the organization to have an auditor, but such an auditor should report to the City Manager. He averred that the council only needed one employee at the table. Mr. Kelly remarked that there were cities that had the council/manager form of government and an independent external auditor who reported to the council and such a model did not have an ill effect. He felt an auditor who reported to the City Manager would be perceived by the public as an agent of the manager. He opined that having the auditor report to the elected officials would increase public confidence in local government. He supported placing the item in the hands of the voters. Mr. Meisner was less concerned that the establishment of an auditor would impact the structure of City government. He felt it made sense for the City of Portland to have an independent external auditor as it did not have a manager and its elected commissioners ran City bureaus. He countered the suggestion that the MINUTES--Eugene City Council July 28, 2004 Page 6 Work Session