Report 2011-131 Recommendation 25 Responses

Report 2011-131: City of Vernon: Although Reform Is Ongoing, Past Poor Decision Making Threatens Its Financial Stability (Release Date: June 2012)

Recommendation #25 To: Vernon, City of

To comply with the reform act, with regard to consultants, the city should review its existing contracts and have the city administrator determine which consultants should file statements of economic interests. The city should retain documentation of the city administrator's determinations and also forward them to the city council for review.

1-Year Agency Response

In January and February 2013, the City Administrator and City Attorney met with all City Department Heads to review all active professional service contracts and the specific duties and scope of each principal or representative under the respective contracts. Based on those meetings, the City Administrator made a preliminary determination to establish a list of individuals that were believed to have the potential to be considered consultants required to file Statements of Economic Interests (Form 700s) under the City's Conflict of Interest Code. On February 28, 2013, the Interim City Clerk notified all such individuals via email of the preliminary determination, and each was invited to comment on and provide the basis for any perceived inaccuracies in the determination. On March 12, 2013, based upon the comments received and reviewed in consultation with the City Attorney, the City Administrator concluded his final determination of the consultants required to file Form 700s for calendar year 2012, including the respective disclosure categories for each. The final determination identified eleven consultants required to file Form 700s, including one filling a "designated position." The City Clerk notified all individuals via email of the City Administrator's final determination and instructed the consultants required to file Form 700s to do so with his office by April 2, 2013. On May 7, 2013, as part of a public City Council meeting agenda and as required by the City's Conflict of Interest Code, the City Administrator issued a written report of his final determination to the City Council, which indicated that all eleven consultants identified had filed their respective Form 700s.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The city indicates that the city administrator and city attorney met with department heads in early 2013 to identify individuals under contract that were believed to have the potential to be considered consultants required to file a statement of economic interests. The city staff provided a copy of the city's administrator's report to the city council on May 7, 2013 identifying the consultants that the city administrator determined were required to file statements of economic interests.

6-Month Agency Response

The city indicates that by March 2013, the city administrator and city attorney will develop a review and determination process with respect to consultants that should file statements of economic interests and provide documentation of the city administrator's determinations and notices to any affected consultants and the city clerk.

California State Auditor's Assessment of 6-Month Status: No Action Taken

60-Day Agency Response

The city did not address this recommendation in its August 2012 response. (See 2013-406, p. 195)

California State Auditor's Assessment of 60-Day Status: No Action Taken

All Recommendations in 2011-131

Agency responses received after June 2013 are posted verbatim.