[00:00:01]
MAY BE RUNNING A LEAFLET FILM MINUTES.SO I GUESS WE CAN GO AHEAD AND CALL THE MEETING TO ORDER.
[Special Finance & Audit Committee on February 24, 2021.]
UH, SO NOW IT'S SIX OH ONE.UM, LET'S CALL THE MEETING TO ORDER, UH, WOULD LET'S SEE, DONNA, WOULD SHE LIKE TO LEAD US WITH THE PLEDGE OF ALLEGIANCE? YES, ABSOLUTELY.
MAKE ALLEGIANCE TO THE FLAG OF THE UNITED STATES AND TO THE REPUBLIC.
UH, NEXT MAYOR HAVE A STORY FOR YOUR HELP IN TAKING ROLL FOR US.
DAVID LYNN PRESENTS MARSA SOLARIO.
YOU MAY BE ON MUTE IN CASE YOU WERE SPEAKING.
DONNA CHIA PRESENT WAS REO DIAZ PRESENT.
JIM GREVETT PRESENT COLEEN ROSATI.
WE CAN COME BACK TO THE REO AND COLLEEN AT A LATER TIME.
UM, LET'S MOVE ON TO THE PUBLIC COMMENTS IF WE HAPPEN TO HAVE ANY, NO, I DIDN'T RECEIVE ANY EMAILS.
SO LET'S MOVE RIGHT ON TO THE AGENDA.
NUMBER ONE HERE, WHICH I BELIEVE IS THE JANUARY 27TH FINANCE AND AUDIT COMMITTEE MEETING MINUTES.
DID ANYONE HAS ANY QUESTIONS OR CONCERNS WITH THE MINUTE? NOPE.
WELL, IF NOT, THEN I WOULD GO AHEAD AND MAKE A MOTION TO APPROVE THE MINUTES.
UH, LET'S MOVE ON TO THE SECOND AGENDA ITEM, WHICH I BELIEVE, SORRY TO INTERRUPT.
CAN I GET A ROLL CALL FOR THAT? I'M NOT SURE WHO SAID IT.
I SAID I, UH, JIM, I MARSHA I, AND WE ALSO HAVE OREO AND DONNA, DONNA, I I'M GOOD FOR EYES.
ARE YOU HERE? CAN YOU PLEASE UNMUTE YOURSELF AND LET US KNOW IF YOU'RE OKAY WITH APPROVAL? I WILL STAND WITH, SORRY.
A VERY THAT WE HAVE ENOUGH TO MOVE
[00:05:01]
FORWARD OR DO WE HAVE TO WAIT UNTIL DARIAN? WE CAN MOVE FORWARD.UH, THE SECOND AGENDA ITEM, I BELIEVE IS THE, UH, THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AND ALL THE OTHER RELEVANT REPORTS FOR THE YEAR END FOR THE YEAR ENDED JUNE 30TH.
UM, SO QUESTION FOR MR. CARMONEY OR MISS SPUR.
UM, IS THERE ANY PARTICULAR PRESENTATION OR UPDATE YOU WANTED TO GIVE BEFORE WE HAVE THE QUESTION IS FOR YOU.
CHAIRMAN AND COMMITTEE MEMBERS.
WE HAVE, UM, WITH US TONIGHT, UM, OUR DIRECTOR, ROBIN BIRD, AND ALSO SCOTTON MANNO FROM THE, UM, UM, AUDITING FIRM.
I THINK WE'LL ASK ROBIN TO GIVE A BRIEF OVERVIEW AND THEN BE AVAILABLE FOR QUESTIONS.
THANK YOU, MR. COMPANY, THIS APPRECIATE IT.
THANK YOU, CITY MANAGER AND CARMONEY, UM, MEMBERS OF THE COMMITTEE.
UM, YOU HAVE BEFORE YOU DENIED THE COMPREHENSIVE ANNUAL FINANCIAL REPORT WHERE THE YEAR ENDED JUNE 30, 2020, THERE ARE SIX ATTACHMENTS TO THE STAFF REPORT, UM, INCLUDING THE, THE CAPPER.
UM, WE DID GET AN INDEPENDENT CERTIFIED AUDIT FROM OUR AUDITING FIRMS OR ROGERS ANDERSON, MELODY AND SCOTT.
AND IT WAS AN UNQUALIFIED OPINION.
THERE'S THREE SECTIONS TO THE CAPPER, UM, WHICH INCLUDE THE INTRODUCTORY, WHICH INCLUDES THE AUDIT OPINION AND THE MD AND A, AND THE BASIC FINANCIAL STATEMENTS AND, UM, THE FINANCIAL AND THE STATISTICAL, UM, THE STATISTICAL SECTION PROVIDES USEFUL DATA USED FOR ANALYZING THE HISTORY FOR COMPARATIVE PURPOSES.
UM, JUST TO GO OVER A COUPLE OF THE HIGHLIGHTS, OUR NET POSITION AT JUNE 30 20 HAD A DEFICIT BALANCE OF $18.9 MILLION.
THAT WAS A DECREASE OF 16.4 MILLION IN THE MAIN REASON FOR THAT IS OUR OTHER POST-EMPLOYMENT BENEFITS IN OUR NET PENSION LIABILITY THAT HAS INCREASED.
UM, OUR GOVERNMENTAL FUNDS HAD ENDING FUND BALANCES, TOTALLING 84.4 MILLION, WHICH WAS AN INCREASE OF 6.9 MILLION.
AND THEN YOU HAVE A VARIETY OF OTHER, UM, LETTERS IN AUDIT COMMUNICATIONS, UM, THAT I'M NOT GONNA, UM, SPEAK TO, UM, IN DETAIL.
UM, I KNOW THAT EVERYBODY'S, UM, DONE THEIR DUE DILIGENCE AND READ THOSE LETTERS.
AND I APPRECIATE THE TIME THAT YOU'VE SPENT GOING OVER THE CAFFER.
UM, THE DOCUMENT IS ABOUT TWO LITTLE OVER 230 PAGES, AND I KNOW IT TAKES A SIGNIFICANT AMOUNT OF TIME TO REVIEW THAT AND, UM, GRASP, UM, WHAT ALL THESE SCHEDULES ARE.
UM, THAT PRETTY MUCH CONCLUDES MY REPORT AND I'D BE HAPPY TO ANSWER ANY QUESTIONS.
I ALSO HAVE SCOTT MANNO AND GARDEN, UH, DURAN HERE, UM, ON THE PHONE CALL IN CASE YOU HAVE ANY QUESTIONS FOR THE AUDITORS.
THANK YOU, MS. BURROW AND WELCOME TO THE MEETING MR. METAL.
UM, DOES ANYONE HAVE ANY QUESTIONS REGARDING THE CARE FOR HER AND THE ONE? THIS IS MARSHA.
I'M ASSUMING EVERYONE HAS A KEFIR IN FRONT OF THEM OR, OR ONLINE.
UM, I HAVE FIRST, I'LL START WITH THE EASY ONE ON PAGE 14.
SORRY, MY DOG ON THE TOP OF PAGE 14, IT SAYS GENERAL FUND BUDGET.
DOES EVERYONE SEE THAT FIRST PARAGRAPH IN THE FIRST SENTENCE? IT TALKS, IT SAYS THERE WERE NUMEROUS BUDGET AMENDMENTS THROUGHOUT THE FISCAL YEAR, MOSTLY DUE TO CLEAN UP ITEMS, BUT THE NET EFFECT TO THE GENERAL FUND BUDGET WAS APPROXIMATELY 5.05 MILLION.
I JUST WANTED TO KNOW WHAT IS CLEANUP ITEMS. SO A LOT OF THOSE, UM, BUDGET AMENDMENTS, MARSHA,
[00:10:02]
UM, WERE DUE TO SOME ERRORS IN THE ORIGINAL BUDGET THAT WEREN'T, UM, PREVIOUSLY DISCOVERED UNTIL AFTER IT'S PUBLISHING.ALL OF THOSE ITEMS DID GO TO THE CITY COUNCIL AND WERE APPROVED BY THE CITY COUNCIL.
WE DON'T EVER INCREASE OUR APPROPRIATION WITHOUT, UM, GOING TO THE CITY COUNCIL.
ON PAGE EIGHT, WE HAVE THE CHANGES IN THAT POSITION.
SO IN 2020 FOR GOVERNMENTAL ACTIVITIES, IT LOOKS LIKE WE'RE ENDING IN A NEGATIVE OF ABOUT 18.6 MILLION.
AND, UM, IN COMPARING WITH 2019, I NOTICED A VERY BIG JUMP IN THE PUBLIC SAFETY NUMBER.
IT SHOWS ABOUT 72.6 MILLION IN EXPENSES.
AND WHEN I LOOKED AT THE ADOPTED BUDGET FOR 2020, IF I'M COMPARING APPLES TO APPLES, I'M ASSUMING POLICE AND FIRE TOGETHER WAS ABOUT 51 MILLION.
SO IS THAT AN ACCURATE NUMBER? WE SPENT ABOUT 20 MILLION OVER THE BUDGET.
I DON'T HAVE ALL THE DETAIL HERE IN FRONT OF ME.
UM, BUT I WOULD, I WOULD DISAGREE WITH THAT 50 MILLION.
UM, AND SOME OF THAT, UM, IS AGAIN, DUE TO THE PENSIONS.
AND WHO'S GOING TO BE MY PART TWO QUESTION, CAUSE YOU KNOW, A LOT OF THAT NET PENSION LIABILITY DOESN'T GET, I MEAN, IN THE GOVERNMENTAL FUNDS, IT DOESN'T GET BUDGETED FOR MAYBE GUARDIAN CAN JUMP IN AND EXPLAIN IT BETTER THAN I, YEAH, THAT MAKES SENSE.
SO W WHEN YOU'RE LOOKING AT, UM, BUDGET VERSUS ACTUAL, YOU CAN JUST COMPARE IT AT THE FUND FINANCIAL STATEMENTS.
SO JUST LOOKING AT, UM, THE FUND STATEMENTS, WHICH ARE PAGE I IT'S LIKE 17.
ONCE YOU GET TO THE GOVERNMENT WIDE, NOW YOU'VE GONE FULL OF COOL.
AND, UM, YOU CAN'T NECESSARILY COMPARE THE EXPENSES THERE TO THE BUDGETS BECAUSE THEY'RE, THEY'RE IN TWO DIFFERENT BASIS.
ACTUALLY THE GOVERNMENTAL FUNDS ARE ON PAGE 20 AND 21.
AND, UH, THE GOVERNMENT WIDE AROUND PAGE 17.
I THINK THE LAST QUESTION SINCE WHAT YOU'RE LOOKING FOR WOULD BE ON PAGE 23 AND 24.
SO IF YOU ACTUALLY LOOK AT THE, UM, STATE PUBLIC SAFETY EXPENDITURES THERE, THAT WOULD BE ON THE MODIFIED ACCRUAL BASIS, AND THAT WOULD BE WHAT'S COMPARABLE TO YOUR BUDGET.
AND, UM, LASTLY, WE DISCUSSED THIS VIA EMAIL, BUT I KIND OF WANTED TO TOUCH BASE ON IT.
ONE MORE TIME REGARDING NOTE 22 ON PAGE 103, UM, SOME OF THE COMMITTEE MEMBERS, INCLUDING MYSELF HAD, UM, ISSUE WITH THE USE OF THE TERM GOING CONCERN AS A TITLE, AS PART OF THE TITLE FOR THIS NOTE AND THE NOTE.
WELL, FIRST OF ALL, IT KIND OF IMPLIES THAT COVID-19 AND GOING CONCERN ARE INTERRELATED, WHICH THEY ARE SORT OF RELATED, BUT ONE DIDN'T REALLY CAUSE THE OTHER.
AND SECOND, WHEN YOU READ THE NOTE ITSELF, IT DOESN'T REALLY GO INTO GOING CONCERN.
SO I'M NOT SURE WHY WE KEPT IT IN THE TITLE.
AND THIRD, IT'S MY UNDERSTANDING IF THE AUDITOR DID AN ISSUE, ANY TYPE OF GOING CONCERN, UM, OPINION, UH, WHY ARE WE USING IT IN THE NO, SCOTT, DO YOU WANT TO, UM, OH, IT'S WE DIDN'T ISSUE A GOING CONCERN OPINION.
UM, BUT WE FELT IT WAS THE SITUATION AT THE CITY IS AT A HIGH ENOUGH LEVEL THAT WE THOUGHT THAT THIS SHOULD BE ADDRESSED.
UM, YOU KNOW, COULD THE TITLE OF IT A LITTLE BETTER? YEAH.
UH, COULD THE LANGUAGE HAVE BEEN A LITTLE BETTER? YEAH.
BUT IT ALL GOES BACK TO, YOU KNOW, YOU GUYS ARE LIKE THE NUMBERS IN THE TOP 10 HIGH-RISK CITIES IN CALIFORNIA.
SO NOT MENTIONING ANYTHING ABOUT THE DIFFICULTIES YOU'RE HAVING, UM, YOU KNOW, AND AGAIN, THEY'RE NOT ALL BROUGHT ON BY COVID-19,
[00:15:02]
BUT TO NOT TO MENTION THAT, IN MY OPINION, WOULDN'T, WOULDN'T BE RIGHT.AND, UM, MR. MANUEL, SORRY TO INTERRUPT, BUT I JUST SAW THAT, UH, COLIMA JOINED AT A MOMENT AGO, COLIN, WHICH YOU PLEASE CONFIRM YOUR PRESENCE HERE.
AND THIS D'ADDARIO HERE BY ANY CHANCE.
UM, DARREN JUST TEXTED ME THAT HE JUST GOT ON SO HE CAN HEAR US, BUT I DON'T KNOW WHY WE CAN'T HEAR HIM BECAUSE HE'S MUTED.
UH, ANYWAY, IF I COULD DO A FOLLOW-UP TO WHAT MARSHA DISSED AND ENDED HER QUESTION WITH AND WHAT MR. MANNO TALKED ABOUT, UH, I I'M TRYING TO UNDERSTAND PRECISELY WHAT YOU WERE SAYING WITH GOING CONCERN.
UH, IN MY PREVIOUS EXPERIENCE, WHEN I WAS INVOLVED WITH INSTITUTIONS THAT HAD GOING CONCERNS ISSUES, UM, THERE WAS A LOT OF DISCUSSION ABOUT THE EXPECTATION OF I'M RUNNING OUT OF MONEY AND THE HORIZON.
AND, UH, WHEN I INTERACTED WITH THE AUDITORS IN THOSE OCCASIONS, THEY TALKED ABOUT, UH, THERE WAS A SUBSTANTIAL BELIEF THAT THE INSTITUTION WOULD RUN OUT OF GENERAL FUND MONEY IN, UH, A YEAR TO 15 MONTHS OR LESS.
UH, AND THAT'S WHY, BECAUSE THERE WAS A QUESTION ON WHETHER GOING CONCERN WAS APPROPRIATE.
AND THE ACTUAL PROJECTION IN THIS PARTICULAR CASE WAS, UH, TWO YEARS, TWO TO THREE YEARS.
SO THEY DECIDED NOT TO ISSUE A GOING CONCERN LETTER BECAUSE OF OUR TIME HORIZON.
AND INSTEAD THEY, UH, UH, YOU KNOW, HAD OTHER, UH, MATERIAL WEAKNESSES AND THINGS THAT TALKED ABOUT IT.
UH, BUT THERE WAS A LOT OF DISCUSSION ABOUT IT, UH, IN THE PROCESS.
AND I'M TRYING TO RESPOND TO THAT, UH, THAT WOULD I CONSIDER, UH, YOU KNOW, SOMEWHAT SPECIFIC IN TERMS OF WHAT THE CRITERIA WERE, UH, FOR A GOING CONCERN.
AND THEN, AND I'M TRYING TO RELATE IT TO WHAT YOU JUST SAID ABOUT, UH, THE STATE HAS DECLARED THAT WE ARE AT SERIOUS FINANCIAL RISK.
UH, AND, UH, UH, AND I, I BELIEVE THAT'S WHAT, WHY YOU INCLUDED THE WORD AND, UH, THE NOTE 20, UH, 22, AT LEAST, I THINK THAT'S WHAT I'M INTERPRETING WHAT YOU SAID.
IT WASN'T DUE TO ANY EXPECTATION THAT WITHIN A YEAR THAT YOU EXPECTED THE CITY TO, UH, RUN OUT OF GENERAL FUND MONEY.
I, I HOPE I'M CHARACTERIZING WHAT YOU SAID CORRECTLY, BUT I I'M TRYING TO CONFIRM THAT IT WASN'T THE TRADITIONAL KIND OF TREATMENT FOR, FOR THAT LANGUAGE.
UM, IF IT WAS A TRUE GOING CONCERN, UM, IT WOULD HAVE BEEN IN THE AUDIT OPINION, WE WOULD HAVE SAID THAT WE BELIEVE THERE SUBSTANTIAL, SUBSTANTIAL DOUBT ABOUT THE ENTITIES ABILITY TO CONTINUE AS A GOING CONCERN.
I'M PARAPHRASING THAT, BUT IT MAY ACTUALLY BE THE EXACT LANGUAGE THAT WOULD SHOW UP IN THE OPINION LETTER.
SO WE DID NOT FEEL THAT IT HAD GOTTEN THAT FAR.
I MEAN, MAKE BASED ON YOUR CASH POSITION BASED ON YOUR EXPENDITURES AND WHAT YOU THEORETICALLY COULD CUT.
I MEAN, WE DIDN'T DIVE DEEP INTO GOING IN BECAUSE WE DIDN'T FEEL THAT IT WAS, WE FELT WE NEEDED TO SAY SOMETHING ABOUT IT, BUT WE DIDN'T FEEL IT NEEDED TO BE A TRUE GOING CONCERN OPINION.
UM, YOU KNOW, AND LIKE I SAY, WE PUT IT IN THERE BECAUSE THIS, YOU GUYS ARE IN TROUBLE.
I MEAN, THERE'S NO GETTING AROUND IT.
I MEAN, YOUR PENSION LIABILITY IS GINORMOUS.
UM, YOU YOU'VE EXCEEDED, UH, EXPENDITURES HAVE EXCEEDED REVENUES AND YOU'VE GOT YOU'RE GOOD.
SO TO SAY THAT YOU'RE NOT IN A FINANCIAL MACQUARIE IN A, NOT IN A IT TO SAY THAT YOU GUYS ARE, UM, I'M TRYING TO PHRASE THIS,
[00:20:01]
UM, NOT IN A PRECARIOUS POSITION THAT, YOU KNOW, AGAIN IS TO ME, I THOUGHT WE HAD TO SAY SOMETHING AND I THOUGHT THIS WAS A WAY OF SAYING IT WITHOUT TRYING TO SAY THAT YOU'RE GOING TO GO BANKRUPT IN FIVE MONTHS.AND AGAIN, COULD THE LANGUAGE HAVE BEEN A LITTLE DIFFERENT POSSIBLY, BUT OKAY.
YOU, YOU RESPONDED TO WHAT I ASKED.
CAN I REMIND EVERYONE TO PLEASE ANNOUNCE WHO'S SPEAKING? SO WE KNOW, OH, I'M SORRY.
ANY OTHER QUESTIONS FROM ANYONE HERE? WELL, IF NOBODY ELSE HAS ANY QUESTIONS, UM, I HAVE ONE, UH, THERE IS, UH, A SERIES OF MATERIAL WEAKNESSES LISTED AND THE, UM, LETTER A THAT'S TITLED A REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.
UH, AND WHAT DISTURBED ME ABOUT THAT LISTING WAS THAT SOME OF THEM WERE LISTED AS REPEAT MATERIAL WEAKNESSES.
AND, UH, IF I READ MANAGEMENT'S RESPONSE CORRECTLY, IT STATED THAT, UH, UH, THE REASON WHY THERE WAS A FAILURE TO COMPLY IN THOSE SITUATIONS WAS DUE TO LACK OF STAFFING.
UH, AND WHAT DISTURBS ME IS THAT, UH, AND THAT IN ESSENCE, AT LEAST, UH, SOME OF IT APPEARS TO BE A CONTINUATION OF WHAT WAS IN LAST YEAR'S AUDIT REPORT, UH, IN TERMS OF MATERIAL WEAKNESSES.
AND IN TERMS OF THE REASON FOR THE MATERIAL WEAKNESSES, AND I'M CONCERNED THAT, UH, SOMEHOW OR OTHER THE CITY HAS ALLOWED A LACK OF STAFFING TO CONTINUE FOR OVER A YEAR AND CAUSING ESSENTIALLY THE SAME MATERIAL WEAKNESSES TWO YEARS IN A ROW.
UH, AND IT SEEMS TO ME THAT SOMETHING WOULD HAVE BEEN DONE IN THAT TIMEFRAME TO REMEDY THE PROBLEM.
UH, AND I, UH, AT LEAST THAT'S WHAT APPEARS ON THE SURFACE.
SO I, UM, I, I DON'T KNOW IF I, I DON'T KNOW.
I GUESS I WOULD LIKE AN EXPLANATION ON HOW THE CITY WAS, SEEMED TO BE INCAPABLE OF FINDING STAFF TO RESPOND TO THESE MATERIAL WEAKNESSES AND OVER A YEAR THAT'S, THAT'S THE REAL, THE REAL ISSUE THERE.
THIS IS MARSHA SPEAKING JUST BEFORE THEY RESPOND.
WE DID BRING THIS UP TOO DURING THE BUDGET TIME.
UM, I, I KNOW I, FOR ONE AND SOME OTHER COMMITTEE MEMBERS BROUGHT THIS SPECIFIC ISSUE OF THAT FOR THE AUDIT COMMITTEE, THIS SHOULD BE LIKE OUR TOP PRIORITY IS MAKING SURE THAT THE STAFFING ISSUE GETS HANDLED.
ANYTHING THAT BECOMES PART OF THE AUDIT REPORT WE NEED TO ADDRESS.
AND I FELT THAT EVEN AT THAT TIME, THAT IT WASN'T BEING TAKEN AS SERIOUS AS IT SHOULD HAVE BEEN.
SO I AGREE WITH MR. GRIMMETT AN EXPLANATION WOULD BE, UM, GREATLY APPRECIATE IT.
I'D BE HAPPY TO, UM, RESPOND TO THAT.
THIS IS ROBIN, UM, YOU KNOW, THIS HAS BEEN AN EXTRAORDINARY YEAR AND, UH, WE'VE HAD SEVERAL MEMBERS OUT DUE TO COVID, WHICH WHEN WE'RE FULLY STAFFED WITH 10 PEOPLE, I'M STILL DOWN 10 PEOPLE FROM WHAT THE MAXIMUM WAS SEVERAL YEARS AGO.
UM, AND THEN WE COVID HIT, WE HAD EMPLOYEES THAT HAVE CHILDREN THAT WERE NOT COMING TO WORK BECAUSE THEY HAD HAD TO STAY HOME AND TAKE CARE OF THEIR CHILDREN BECAUSE THEY'RE HOMESCHOOLING.
SO THE CITY COUNCIL WAS GRACIOUS ENOUGH TO LET ME BACK FILL THOSE POSITIONS, BUT THE WHEAT.
SO WE HIRED TWO ACCOUNTANTS IN PLACE OF THOSE.
SO THAT JUST REPLACED THE PEOPLE THAT WERE OUT.
UM, WELL, ONE WAS ON MATERNITY LEAVE, UH, ONE WITHOUT TAKING CARE OF HER CHILDREN, WHICH LEFT ME WITH NO ACCOUNTANTS.
UM, THOSE WERE THE ONLY TWO ACCOUNTANTS I HAD.
I HIRED TWO NEW ACCOUNTANTS, BUT YOU DON'T JUST WALK IN THE DOOR AND KNOW HOW THE CITY
[00:25:01]
OPERATES, THERE'S TRAINING.WE'RE TRYING TO HIRE AN ASSISTANT FINANCE DIRECTOR RIGHT NOW, WE'LL BE DOING, UM, INTERVIEWS NEXT WEEK AND HOPEFULLY GET A GOOD CANDIDATE.
SO THAT WILL HELP WITH THE STAFFING, WHICH IS GOING TO TAKE A BIG LOAD OFF OF MY PLATE, BECAUSE SINCE THE ACCOUNTING MANAGER LEFT, I'VE BEEN DOING BOTH OF THOSE JOBS.
AND, UM, OTHER THAN THAT, I MEAN, I DON'T KNOW WHAT ELSE I COULD HAVE DONE IN THIS CASE.
WE HAVE, UM, BEEN FLYING JOBS, BACKFILLING JOBS, UH, FOR PEOPLE THAT ARE OUT DUE TO COVID.
UM, ABOUT 30% OF MY STAFF HAS BEEN OUT AT VARIOUS TIMES BECAUSE THEY HAVE HAD COVID.
SO, UM, IT'S NOT AN EXCUSE, BUT IT'S AN EXPLANATION.
UM, ANYWAY, UH, I GUESS MY COMMENT IS THAT WHEN THE SAME THING HAPPENS TWO YEARS IN A ROW, WE NEED TO SEEK A REMEDY THAT WORKS.
UH, AND I MEAN, THERE'S, UH, I CAN THINK OF THREE OPTIONS.
I PERHAPS THERE'S MORE ONE WOULD BE TO HIRE BASICALLY CONTRACTORS TO DO THE WORK.
IF YOU, UH, IF YOU'RE INSECURE ABOUT HIRING PERMANENT STAFF, THE OTHER IS JUST TO HIRE PERMANENT STAFF.
UH, SINCE THIS SEEMS TO BE A CHRONICLE CHRONIC ISSUE, IT'S NOT SOMETHING THAT'S TEMPORARY AND BECAUSE IT'S BEEN LASTING FOR OVER A YEAR, UH, THE, UH, OTHER ONE IS, UH, UH, UH, SEEK, UH, UH, COUNCIL, UH, AUTHORIZATION TO AN ESSENCE, UH, UH, UH, INCREASED THE STAFFING OF THE DEPARTMENT, UH, SO THAT YOU CAN COVER FOR THE CHRONIC VACANCIES.
UH, YOU, YOU ALLUDED TO A 30% VACANCY, RIGHT? THAT'S, THAT'S ENORMOUS.
AND, UH, OR NOT, THEY CAN SAY ACTUALLY IT WAS ABSENT ABSENTEEISM.
AND, UH, OBVIOUSLY NOBODY CAN COPE WITH THAT PERCENTAGE AND THERE NEEDS TO BE A SOLUTION IS WHAT I'M TRYING TO SAY.
UH, I MEAN, THERE'S VARIOUS OPTIONS, UH, BECAUSE, UH, YOU KNOW, THIS TO COME UP ANOTHER YEAR, IF WE GET THE SAME THING NEXT YEAR AND NEXT YEAR IS THE AUDIT REPORT.
I JUST THINK IT'S A SIMPLE, IT'S A FAILURE BECAUSE SOMETHING HAS TO BE DONE.
UM, THANK YOU FOR YOUR COMMENT, MR. CRIBBAGE, UH, AS A MANAGER, I CAN TOTALLY UNDERSTOOD, UM, THE, THE DIFFICULTIES, UM, TO, TO, TO, TO WORK REMOTELY.
I MEAN, UM, TO, TO MANAGE A TEAM OF PEOPLE WHO WORK REMOTELY, UH, AS WELL S YOU KNOW, UH, BOARDING PEOPLE VIRTUALLY AS WELL.
UM, ROBIN, CAN YOU SHARE WITH US, HOW DOES YOUR, YOUR POOL OF APPLICANTS LOOK LIKE RIGHT NOW IN TERMS OF, YOU KNOW, UH, LOOKING FOR AN ASSISTANT FINANCE DIRECTOR CURRENTLY? SO, LIKE I SAID, THANK YOU, DAVID.
UM, I, LIKE I SAID, WE'RE DOING INTERVIEWS ON TUESDAY.
UM, I BELIEVE WE HAVE EITHER SIX OR EIGHT CANDIDATES, UM, THAT WE'LL BE INTERVIEWING, AND HOPEFULLY WE GET SOMEBODY OUT OF THAT POOL.
UM, WE HAD, I BELIEVE IT WAS 57 APPLICATIONS.
UM, THERE WAS AN ENORMOUS AMOUNT THAT WERE NOT QUALIFIED FOR THE JOB, DID NOT HAVE THE CREDENTIALS THAT ARE NEEDED FOR THAT POSITION.
UM, BUT I THINK THERE'S SIX OR EIGHT THAT WE HAVE, UM, ARE WE'LL GET SOMEBODY AND THAT'S OUR FIRST STEP.
AND ONE OF THE OTHER PROBLEMS WE HAVE IN, UM, FORTUNATELY WITH THE, THE ASSISTANT FINANCE DIRECTOR, WE'VE, WE'VE GOTTEN THAT PAY UPGRADED SO THAT WE CAN ATTRACT QUALIFIED, UM, APPLICANTS.
AND, BUT A LOT OF OUR OTHER JOBS, I MEAN, WE'RE LOOKING AT DOING A CLASS COMP STUDY, UM, IN THE VERY NEAR, NEAR FUTURE, BECAUSE AS WITH ALL OF OUR DEPARTMENTS, MOST OF OUR SALARIES ARE VERY, VERY LOW, SO WE'RE NOT GETTING, WE'RE NOT ATTRACTING THE TALENT WE NEED.
UM, I AM LOOKING AT SOME VARIOUS OPTIONS, UM, TO INCREASE THE STAFFING HERE AND, UM, THAT WILL BE PRESENTED IN THAT, IN THE BUDGET.
BUT OF COURSE MONEY'S ALWAYS A PROBLEM.
[00:30:01]
ABSOLUTELY.SO LET'S SAY IF ALL GOES WELL AND SMOOTH, WHAT WOULD BE THE EARLIEST DAY WHERE WE KIND OF SPEC IT FULLY STUFF THAT TEAM, LIKE IN YOUR OPINION? WELL, UM, WE WOULDN'T GET POSITIONS APPROVED UNTIL THE BUDGET IS ADOPTED.
WE BEGIN RIGHT THEN AND, UH, RECRUIT FOR POSITIONS.
WE ARE ALSO LOOKING FOR INTERNS AT THIS POINT, UM, IN, IN TRAIN, YOU KNOW, TO FILL THOSE GAPS, BUT QUITE HONESTLY, THAT THE POOL THAT WE'VE BEEN ATTRACTING, HASN'T BEEN OUTSTANDING IN SOME OF THOSE OTHER AREAS.
WE WERE VERY LUCKY WHEN I BACK-FILLED FOR THE TWO INDIVIDUALS THAT, UM, ONE WAS OUT ON MATERNITY AND ONE WAS, UM, HOMESCHOOLING AND BY LAW, WE HAD TO ALLOW THEM TO DO THAT.
UM, WE WERE VERY LUCKY IN GETTING ONE OUT OF TWO THAT I PLAN ON KEEPING.
UM, SHE'S VERY BRIGHT, VERY ENERGETIC.
UM, SO, YOU KNOW, THAT WAS A GOOD CATCH, UH, BUT, UM, WE'LL SEE HOW IT GOES.
I, I WOULD THINK THAT WITH EVERYBODY THAT'S OUT OF WORK, THAT WE WOULD BE ATTRACTING SOME TALENT AND, AND HOPEFULLY THAT, THAT WILL BE THE CASE.
I APPRECIATE THE INSIGHTS AND I TOTALLY UNDERSTAND THAT, UH, YOU HAVE BEEN WORKING A LOT MORE THAN YOU TYPICALLY DID IN THE PAST, YOU KNOW, JUST TO MAKE SURE THAT YOU CATCH UP WITH THE WORLD.
I WANTED TO EXPRESS MY GRATITUDE ON BEHALF OF THE COMMITTEE TO YOU, UH, AS FOR MR. RIVERS, I HOPE THAT WOULD SATISFY YOUR CONCERN.
I BELIEVE ROBIN IS DOING HER BEST TO RECRUIT THE BEST TALENT TO HER BEST OF HER ABILITY.
CAN I ASK A REALLY QUICK FOLLOWUP COMMENT, JUST REALLY QUICK, ROBIN, THIS IS MARSHA.
UM, ARE WE RECRUITING OR TRYING TO RECRUIT ENTRANCE AT ALL FROM THE LOCAL UNIVERSITIES? I KNOW THAT'S KIND OF HOW I STARTED BACK WHEN I WAS IN SCHOOL THAT LED ME TO GOVERNMENT SLASH CITY.
UM, WE HAVE, UM, HR GOES TO THE DIFFERENT UNIVERSITIES.
I'M NOT SURE WHICH ONES, UM, PERHAPS CITY MANAGER KNOWS MORE ABOUT THAT THAN I DO, BUT WE HAVE HAD INTERNS IN THE PAST.
UM, AND, AND THEY'VE BEEN, YOU KNOW, A LOT OF HELP TO US.
SO THAT'S A CONTINUAL, UH, RECRUITMENT THAT THE CITY DOES FOR ALL DEPARTMENTS.
WE INTERNS THAT WE'RE RECRUITING FOR.
UH, JUST, JUST, UH, THIS IS TIM AGAIN, JUST A SUGGESTION, UH, IN THAT AREA.
THE CITY EXPECTS THE INTERNS TO BE UNPAID.
UH, I, I WOULD REALLY ADVOCATE A DIFFERENT MODEL FOR THIS.
UH, THERE I, THERE WAS A TIME IN MY CAREER WHEN I FACED THE SAME KIND OF ISSUES THAT YOU FACED ROBIN.
AND BASICALLY IT WAS BECAUSE THE PAY SCALES, UH, AUTHORIZED BY THE, UH, BY WHERE I WAS WORKING WERE INADEQUATE.
AND I ENDED UP, UH, HIRING GRADUATE STUDENTS, BUT I PAID THEM GOOD MONEY AND WE GOT SOME REALLY GOOD PEOPLE THAT WAY.
UH, AND, UH, AND I, I'M JUST, UH, JUST A SUGGESTION TO CHANGE THE MODEL, UH, BECAUSE OF YOUR EXTRAORDINARY SITUATION.
UH, SOME UNPAID INTERNS, UM, IN THE CITY, BUT THE FINANCE DEPARTMENT, THE INTERNS THAT WE'VE HAD, WE PAID THEM.
I WOULDN'T SAY IT'S GOOD MONEY, BUT WE DO PAY THEM.
WELL, I'M JUST SAYING THAT'S ANOTHER AVENUE TO PURSUE.
SO, FOR ALL THE MEETING ATTENDEES HERE, I WOULD ENCOURAGE YOU TO SEND ANY TALENTS THAT YOU MAY BE AWARE OF TO ROBIN, IF YOU HAPPEN TO COME ACROSS ANY, YOU KNOW, WHETHER IT'S AN INTERNSHIP OR A FULL-TIME JOB ADVOCATE.
UH, DO WE HAVE ANY OTHER QUESTIONS FROM ANYONE HERE? OKAY.
UM, IT LOOKS LIKE WE DON'T HAVE TOO MUCH QUESTIONS OR CONCERNS REGARDING THE CAVIAR.
WHAT ABOUT, UH, SUPPORTING ATTACHMENTS? THIS IS MARSHA SPEAKING.
UM, ARE WE EXPECTING TO SEE THIS SINGLE AUDIT AT THE NEXT MEETING? THE SINGLE AUDIT HASN'T BEEN COMPLETED YET? AS SOON AS, UM, THE AUDITOR'S FINISHED WITH THAT, WE WILL BE BRINGING THAT FORWARD ON A FUTURE
[00:35:01]
MEETING.I KNOW THAT WE HAD SCHEDULED, UM, MARCH 24TH AND I WAS HOPING TO GET IT TO YOU THEN.
SO WE DON'T ANTICIPATE TO NEED THE, UM, I THINK FEDERAL GOVERNMENT GAVE US THREE MONTH EXTENSION THIS TIME, AUTOMATIC EXTENSION OF IT.
NO, I BELIEVE IT'LL BE DONE BY MARCH 31ST.
OR YOUR NEXT MEETING, UH, IF WE'RE SHIFTING TO NEXT MEETING'S AGENDA, UH, IS THAT WHERE WE ARE, WHERE WE ARE NOT, I HAVE REQUEST, UM, JUST DO WE NEED TO, UM, RECEIVE THEM FILE ON THIS ONE? YEAH.
AUDIT REPORT FIRST, BEFORE WE GO ON TO THINGS, AND THEN I THINK WE CAN, UM, SEND OUR AUDITORS ON THEIR WAY.
I'M SURE THEY HAVE BETTER THINGS TO DO.
IF THERE IS ANY MORE DISCUSSION REGARDING THE ATTACHMENTS, THEN YES, I WOULD NEED A MOTION.
UH, WE'LL GO AHEAD AND MAKE A MOTION TO FILE THE KEFIR AS WELL AS ALL THE ATTACHMENTS HERE.
LET ME TAKE A ROLL CALL ON THEM.
MR. COMPANY, HEAR ME AS THEY, AS WE THINK AND EXCUSE THEM, I WOULD JUST LIKE TO TAKE A MOMENT TO OFFER MY APPRECIATION FOR THE COURTESY AND PROFESSIONALISM OF THE ENTIRE TEAM FROM RAMS. I THINK THEY'VE SERVED THE CITY QUITE WELL.
UM, AS IN PRIOR YEARS, AND I DIDN'T WANT TO JUST LET THEM TURN OFF TONIGHT OR SIGNAL OUT WITHOUT US HAVING EXPRESSED OUR GRATITUDE FOR THEIR TEAM.
AND I D I WANT TO SAY THANK YOU TO ROBIN.
I KNOW SHE HAD A ROUGH GO THIS YEAR WITH THE COVID AND EVERYTHING GOING ON.
THANK YOU, DAVID, FOR BEING SUPPORTIVE AS WELL.
UM, AND JUST THANKS EVERYBODY.
SO I REAL QUICK, UM, I WAS GOING TO SAY THE SINGLE AUDIT I THINK, IS SCHEDULED TO BE DONE BEFORE MARCH 31ST.
I'M NOT A HUNDRED PERCENT, BUT WE CAN, UH, GET A DEFINITIVE ANSWER ON THAT.
AND THEN AS, AS, UH, MR. UH, PRIVILEGE NOW IS, UM, I AM OPEN TO PHONE CALLS.
IF ANYBODY HAS A QUESTION, UM, ROBIN AND DAVID BOTH HAVE MY CONTACT NUMBER AND CALL ME, CALL ME, YOU KNOW, IF WE CAN HAVE, IF WE CAN HAMMER OUT ANY QUESTIONS PRIOR TO A MEETING LIKE THIS, YOU KNOW, HEY, MORE TH THE EASIER IT IS.
AND, UM, YEAH, I THINK THAT, UM, ROBIN AND HER TEAM, THEY'VE BEEN DOING A GREAT JOB.
WE HAVE THE FINDINGS, BUT WE UNDERSTAND WHY A LOT OF THEM ARE STILL THERE.
SO WE SEE THE DIFFICULTIES IN OUR PROFESSION RIGHT NOW.
THERE'S NOT ENOUGH QUALIFIED PEOPLE OUT THERE.
SO THE TRUTH IS THAT WE'RE ALL IN VERY HIGH DEMAND.
AT ANY TIME, WE CAN ALL SWITCH JOBS AND GET A SALARY INCREASE, BECAUSE THERE'S JUST NOT ENOUGH PEOPLE THAT ARE QUALIFIED RIGHT NOW.
SO IT'S VERY DIFFICULT TO ABLE TO ATTRACT PEOPLE AND TO BE ABLE TO KEEP THEM SOME POSITIONS.
PEOPLE SEE THEM AS A STEPPING STONE.
SO THEY'RE THERE FOR A SHORT PERIOD OF TIME, AND THEN THEY MOVE ON TO SOMETHING ELSE.
SO FROM OUR PERSPECTIVE, WE SEE IT AND WE SEE THE TURNOVER AND, YOU KNOW, IT IS A FINDING, BUT WE DO UNDERSTAND WHY IT'S HAPPENING.
AND WE SEE THAT THEY'RE TRYING REALLY HARD TO, YOU KNOW, IMPROVE THE CITY.
IT'S WE'RE ON OUR FIFTH YEAR OF THIS AUDIT.
SO I CAN CLEARLY SEE AND SAY THAT FROM WHERE WE STARTED, THE CITY HAS COME A VERY, VERY, VERY LONG WAY.
SO THERE'S STILL ISSUES, BUT CHANGE AND IMPROVEMENT.
IT'S NOT SOMETHING THAT CAN HAPPEN OVERNIGHT.
SO DESPITE THE FACT THAT SOME OF THESE FINDINGS ARE STILL HERE, I MEAN, WE STILL HAVE A JOB TO DO.
SO WE HAVE TO REPORT THESE THINGS, BUT WE HAVE SEEN A HUGE IMPROVEMENT IN THE YEARS THAT WE'VE BEEN AUDITING THE CITY AND WE JUST WANT THE COMMITTEE TO BE AWARE OF, AND THIS IS JIM.
IF, IF I COULD MAKE ONE COMMENT, I DO WANT TO THANK THE AUDITORS FOR RESPONDING TO MY PHONE CALLS.
UH, THE TWO OF THEM I MADE, UH, I, UM, I AM IN SOMEWHAT IGNORANT OF THE DIFFERENCES BETWEEN THE, UH, STATE ACCOUNTING MANUAL THAT WAS APPLICABLE TO THE EDUCATIONAL ENVIRONMENT AND THE ACCOUNTING PROCEDURES USED IN CITY GOVERNMENT.
AND THEY WERE HELPFUL IN EXPLAINING TO ME THE DIFFERENCES.
[00:40:01]
I APPRECIATE THAT.WELL, I HOPE YOU ALL HAVE A NICE EVENING.
UH, LOOKS LIKE, DO WE HAVE ANY OTHER ADDITIONAL AGENDA ITEM HERE? I DON'T BELIEVE SO, BUT CORRECT ME IF I'M WRONG.
NO NEXT WOULD BE THE NEW BUSINESS.
UH, I KNOW AT THE LAST MEETING WE HAD SCHEDULE MARCH 24TH TO BE ON NEXT MEETING.
UH, IS THIS STILL GOING TO STEM OR SHALL WE POSTPONE THAT TO A LATER DATE? I THINK WE SHOULD KEEP THAT DATE.
UM, WE CAN ALWAYS CANCEL IF NEED BE, BUT I, I, I'M PRETTY SURE THAT THE SINGLE AUDIT IS GOING TO BE DONE.
I WANT TO GET THAT OFF, CROSS THAT OFF MY TO-DO LIST ALSO.
UM, AND THE CITY COUNCIL AS QUICKLY AS POSSIBLE, THIS AUDIT HAS BEEN DELAYED FOR QUITE SOME TIME DUE TO THE STATE AUDIT.
AND, UM, OUR CITY AUDITOR'S DIDN'T WANT TO ISSUE THEIR OPINION UNTIL, UM, THEY READ THAT REPORT.
AND THEN WITH THE FACT OF THE VACANCIES, IT JUST EXACERBATED EVERYTHING.
SO I'M LOOKING FORWARD TO CROSSING 20 THE LIST AND MOVING ON TO 2021 AND 2122 FOR THE BUDGET.
UM, I DID WANT TO LET THE COMMITTEE KNOW THAT WE HAVE ISSUED AN RFP FOR AUDITING SERVICES AS THIS WAS THE LAST YEAR ON THE CONTRACT.
UM, AND, UM, THOSE WILL BE DUE MARCH 4TH, UM, IS THE DEADLINE FOR THAT.
AND I WILL KEEP EVERYONE APPRISED OF, UM, THE RESULTS OF THAT.
UM, AND I, AND I KNOW, UM, THAT THE COMMITTEE HAD A COUPLE OF PEOPLE INVOLVED, UM, I THINK IN THE PREVIOUS, UM, SELECTION.
SO, UM, I WAS KIND OF WONDERING, UM, WHAT, WHAT THE COMMITTEE'S PREFERENCES, THE INTERVIEWS FOR THE AUDIT FIRMS ARE TYPICALLY DONE DURING THE DAY.
AND I KNOW SOME PEOPLE WORK, UM, BUT I WILL TRY TO GIVE YOU AS MUCH NOTICE AS POSSIBLE.
I WOULD LIKE TO PARTICIPATE IN INTERVIEW IF POSSIBLE.
AND, UH, JIM GURVICH WOULD LIKE TO PARTICIPATE ALSO.
UH, I'LL BE INTERESTED TO PARTICIPATE AS WELL.
UH, THANK YOU, ROBIN, UM, FOR THE UPDATE REGARDING YOUR RFP FOR THE ACCOUNTING FIRM.
UM, I, I UNDERSTAND THAT, UH, I, I APPRECIATE THE WILLINGNESS, YOUR, YOUR, UH, THE FACT THAT YOU WANTED TO SHARE THE SINGLE AUDIT RESULT WITH OUR, WITH US AS SOON AS POSSIBLE.
BUT I KNOW THAT, UM, THE COMMITTEE ALSO HAS A CONCERN THAT SOMETIMES THE DOCUMENTS MAY GET TO US A LITTLE BIT TOO LATE.
DO YOU THINK IF WE ARE HOLDING THE MARCH 24TH DATE, AS IT STANDS RIGHT NOW, DO WE THINK WE'LL BE AT LEAST HAVING A COUPLE OF DAYS TO REVIEW THE, UH, THE REPORT BASED ON THE INFORMATION THAT I HAVE FROM RAMS? UM, THEY WERE PERFORMING THAT AUDIT THIS WEEK AND, UM, I WAS GONNA REACH OUT TO THEM EARLIER TODAY.
UM, THE PEOPLE THAT WERE ON THE PHONE CALL TONIGHT, AREN'T THE PERSON THAT DOES THE SINGLE AUDIT, AND I WAS GOING TO REACH OUT TO EVELYN AND FIND OUT AND MAKE SURE THAT WE'RE STILL ON SCHEDULE FOR THAT.
UM, I'D LIKE TO KEEP THE DATE.
THE SINGLE AUDIT IS NOT AS EXTENSIVE OF A REPORT AS, UM, THE CAFFER IS.
SO I DON'T THINK IT WOULD TAKE AS MUCH TIME, UM, TO REVIEW IN OF COURSE, UM, IF THE COMMITTEE DECIDES THAT THEY WANT TO CANCEL AND RESCHEDULE, THAT'S YOUR PREROGATIVE.
I KNOW THE 24TH LANDS ON A WEDNESDAY.
SO, UM, PERSONALLY, IF WE, IF WE CAN HAVE AT LEAST A WEEKEND TO GO OVER THE DOCUMENT, I THINK THERE'LL BE A HUGELY HELPFUL.
UM, BUT LIKE YOU SAID, IF WE NEED TO POST, WE CAN ALWAYS DO THAT TO YOU.
IS IT POSSIBLE TO GET A HARD COPY OF THESE DOCUMENTS PRIOR TO THE MEETING? INSTEAD OF, FOR ME, I, FOR ME, I LIKE TO PERSONALLY REVIEW THEM, HIGHLIGHT ANNOTATE, ET CETERA, A LITTLE HARD TO DO ON MY COMPUTER, AND I CAN TAKE IT WITH ME SOMETIMES.
I DON'T ALWAYS HAVE MY COMPUTER AND I CAN READ IT AT OTHER LOCATIONS.
[00:45:01]
SO QUESTION, CAN WE GET HARD COPIES OF THINGS? UM, I PRINTED ALL THIS STUFF, WHICH WAS OVER 300 PAGES ON MY LITTLE PRINTER.SO I WOULD APPRECIATE COPIES, HARD COPIES, EITHER LEAVE THEM AT CITY HALL OR HAVE THEM DELIVERED PRIOR TO THE MEETING.
LIKE DAVID JUST SAID THAT WEEKEND PRIOR WOULD BE BEST.
ANYWAY, MY, MY RE I JUST JAM MY REQUEST FOR THE NEXT MEETING, UH, WAS TO, UH, REVIEW THE, UM, UH, SECOND QUARTER REPORT, UH, MONTHLY ACCOUNTING REPORTS.
UH, I THINK THAT'S PART OF OUR JOB AND I WOULD HOPE THAT THAT COULD BE ON THE AGENDA.
UH, IF WE HAVE NO FURTHER QUESTIONS OR COMMENTS, UH, I WOULD LIKE TO MOVE TO A, TO RUN THE MEETING AT SIX 46, SIX 47 YEAR.
I'LL SECOND THAT ALL RIGHT, EVERYBODY HAVE A GOOD NIGHT.