City Council Report 915 I Street, 1 st Floor Sacramento, CA
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1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: July 31, 2018 Discussion Item 05 Title: Ballot Measure: Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor Location: Citywide Recommendation: Pass a Resolution approving Charter amendment ballot measure language regarding the establishment of the city auditor as a charter officer, for placement on the November 6, 2018 municipal election ballot. Contact: Matthew D. Ruyak, Assistant City Attorney (916) , Office of the City Attorney Presenter: Matthew D. Ruyak, Assistant City Attorney (916) , Office of the City Attorney Attachments: 1-Description/Analysis 2-Resolution 3-Exhibit A (Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor) Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 8
2 File ID: Discussion Item 05 Description/Analysis Issue Detail: The Office of the City Auditor is established in the Sacramento City Code (Chapter 2.18). The Office of the Independent Budget Analyst also is established in the code (Chapter 2.33). At various council and committee meetings, direction has been provided to prepare for council s consideration the placement of a measure on the ballot to establish the city auditor as an officer under the Sacramento City Charter, with the city auditor absorbing the Independent Budget Analyst s functions. Policy Considerations: The recommendation in this report is consistent with the City Council s continuing efforts towards transparency, accountability, and efficiency. Economic Impacts: None. Environmental Considerations: None. Sustainability: Not applicable. Commission/Committee Action: None. Rationale for Recommendation: Amendment of the Sacramento City Charter requires approval of the voters. Thus, to create the city auditor as a charter officer, the city council must call to the ballot a measure posing such a question to the voters: shall the charter be amended to establish the city auditor as an officer under the charter? Financial Considerations: The estimated cost for the first citywide measure is $217,316 and for each additional measure $13,227. There are sufficient funds in the elections budget to cover the cost of adding this to the ballot. Ongoing financial costs for the city auditor s office would be a function of the scope of the auditor s duties as defined in the measure, as well as any supplementary ordinances or resolutions following adoption of the measure; and financial savings to the city would be a function of the city auditor s efficacy. Local Business Enterprise (LBE): Not applicable. City of Sacramento July 31, 2018 powered by Legistar Page 2 of 8
3 File ID: Discussion Item 05 Background: The office of the city auditor is a council creation by virtue of Ordinance , which added chapter 2.18 to the city code. With five votes, the council can at any time delete chapter 2.18 of the city code and eliminate the office of the city auditor. If the city auditor position is established in the charter, the office of the city auditor could no longer be eliminated by a vote of the council. The current city auditor also has been serving as the interim independent budget analyst, which is a position created under chapter 2.33 of the city code. This report presents a proposed ballot measure that would: establish the city auditor as a charter officer; set forth the basic framework of that office, which would include the core functions of the current city auditor and independent budget analyst; repeal the city code chapter regarding the independent budget analyst; and provide a delayed implementation date, to allow a transition from the present code city auditor to the newly created charter officer. The following is a more detailed explanation of the proposed measure s components: Section 1: This section of the measure sets forth findings supporting the rationale for creating the city auditor as a charter officer, including achievement of government efficiency and accountability. As explained in the Purpose and Effect subsection, the measure establishes the city auditor as an officer under the Sacramento City Charter and combines the offices and duties of the current city auditor and independent budget analyst into one office, to consolidate functions and provide the city auditor more robust resources. Section 2: This section amends Section 70 of the charter, by simply adding City Auditor to the list of city officers (other than the city manager) appointed by the city council. Section 3: This adds a new Section 77 to the city charter. The language of subsection (a) is intended to track the language used for other charter officers: First sentence: The city council shall appoint a city auditor and shall prescribe the qualifications, duties, and compensation of such officer. This language mirrors that for the city clerk ( The city council shall prescribe the qualifications additional duties and compensation of the city City of Sacramento July 31, 2018 powered by Legistar Page 3 of 8
4 File ID: Discussion Item 05 clerk. [Section 71]); city attorney ( The city council shall appoint a city attorney and shall prescribe the qualifications, duties and compensation of such officer. [Section 72]); and city treasurer ( The city council shall prescribe the qualifications, additional duties, and compensation of the city treasurer. [Section 73]). Second sentence: The city auditor shall independently assess and report on city operations and services; shall assist the council in the conduct of budgetary inquiries and in the making of budgetary decisions; and shall have such other powers and duties as may be prescribed by state law and by ordinance or resolution of the city council. This sets forth the current core duties as found in the city auditor s current description, as well as the independent budget analyst s function under Sacramento City Code section Last sentence: The city auditor shall appoint all other members of the city auditor s office. This is identical to the language for the city attorney (Section 72). Likewise, the city clerk and city treasurer appoint all other members of their respective offices. Subsection (b) of proposed Section 77 provides that the city auditor shall discharge the duties of the office as the council may prescribe by ordinance. Currently, the city auditor s function and duties are set forth in City Code chapter As the charter supersedes the code, chapter 2.18 will need to be revisited between the time of voter approval and when the auditor becomes a charter officer (see discussion about Section 5 below regarding effective date). The council will have the ability to further delineate the work and expectations of the city auditor s office. Section 4: This section repeals the city code chapter establishing the independent budget analyst. This is done to consolidate functions under one officer the city auditor whose functions and duties will include the core function of the current independent budget analyst position, i.e., assisting the council in the conduct of budgetary inquiries and in the making of budgetary decisions. Section 5: State law provides the effective date of voter-approved charter amendments is when the passed measure is filed and received by the Secretary of State. However, to avoid a conflict between the city code and the charter as well as City of Sacramento July 31, 2018 powered by Legistar Page 4 of 8
5 File ID: Discussion Item 05 avoiding any unintended consequences to the status of the incumbent city auditor and staff the effective date of the charter city auditor position commences on the first day of the next fiscal year. This provides time for transition. The city council will have time to appoint a person to the new charter office. And it will have time for the adoption necessary and appropriate amendments of City Code chapter 2.18, to update and refine the duties and functions of the city auditor. Section 6: This is a standard ballot measure provision to ensure implementation of the Act should some portions of it be stricken through legal challenge. In a separate staff report, the council will call measures to the ballot and set forth the text of the question presented to voters. Consistent with the California Elections Code requirements for ballot question language, the following is the proposed question for the charter amendment: Shall the measure amending the city charter to add the city auditor as an officer under the charter; combining duties of the current city auditor and independent budget analyst, as may be further prescribed by ordinance; and repealing that chapter of the city code related to the independent budget analyst, be adopted? City of Sacramento July 31, 2018 powered by Legistar Page 5 of 8
6 RESOLUTION NO. Adopted by the Sacramento City Council APPROVING BALLOT MEASURE TEXT TO BE SUBMITTED TO THE VOTERS IN A QUESTION RELATING TO SACRAMENTO CITY CHARTER AMENDMENT TO BE INCLUDED WITH THE CONSOLIDATED GENERAL MUNICIPAL ELECTION OF NOVEMBER 6, 2018 BACKGROUND A. The City of Sacramento values transparency, accountability, and informed decisionmaking. Its residents support the function of an independent internal auditor s office and would like to ensure its continued operation for the foreseeable future. B. The office of the city auditor is a council creation by virtue of Ordinance , which added chapter 2.18 to the city code. With five votes, the council can at any time delete chapter 2.18 of the city code and eliminate the office of the city auditor. If the city auditor position is established in the charter, the council could no longer eliminate the office of the city auditor by a vote of the council. C. Combining the duties of the city auditor s office and independent budget analyst s office results in greater government efficiency and accountability. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1: That the City Council approves for submittal to the voters at the November 6, 2018 General Municipal Election the measure attached hereto as Exhibit A, along with the following question: Measure - Charter Amendment and City Code Repeal Regarding the City Auditor Shall the measure amending the city charter to add the city auditor as an officer under the charter; combining duties of the current city auditor and independent budget analyst, as may be further prescribed by ordinance; and repealing that chapter of the city code related to the independent budget analyst, be adopted? Table of Contents: Exhibit A: Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor Page 6 of 8
7 Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor Section 1. Title, Findings, and Purpose. A. Title. This charter amendment and city code repeal is titled and may be cited as the Sacramento City Government Accountability and Efficiency Act (hereinafter, the Act ). B. Findings. 1. The City of Sacramento values transparency, accountability, and informed decision-making. Its residents support the function of an independent internal auditor s office and would like to ensure its continued operation for the foreseeable future. 2. Since its first audits in 2010, the city auditor s office has provided vital oversight, accountability, and information to the public, which has generated substantial cost savings and improved the delivery of vital city services. 3. Sacramento s citizens and municipal management want and need to know not only whether city funds are handled properly in compliance with laws and regulations, but also whether public programs are achieving their intended purposes efficiently, effectively, and equitably. 4. Independent auditing, research, and budget analysis can provide objective information on the operations and cost-benefit analysis of government programs; assist managers in carrying out their responsibilities; inform better decision-making by elected officials; and help ensure full accountability to the public. 5. The city auditor s whistleblower-hotline-generated investigations have detected, deterred, and resolved reported instances of fraud, waste, and abuse. 6. Recognized government auditing standards provide a framework for improved government decision-making, oversight, risk management, and accountability. 7. Combining the duties of the city auditor s office and independent budget analyst s office as they existed before the adoption of this Act results in greater government efficiency and accountability. C. Purpose and Effect. Under current law, the city auditor is an officer established by ordinance. The city council can, by ordinance, eliminate the office of the city auditor. To help preserve citygovernment accountability achieved through the work of the city auditor, this Act establishes the city auditor as an officer under the Sacramento City Charter. It also combines the offices and duties of the current city auditor and independent budget analyst into one office, to consolidate functions and provide the city auditor more robust resources. Once established under the charter, the city auditor s office could no longer be eliminated by the city council. Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor Page 7 of 8
8 This Act also supersedes provisions of the Sacramento City Code relating to the city auditor and independent budget analyst, while enshrining their core functions in the charter: independently assessing and reporting on city operations and services; and assisting the council in the conduct of budgetary inquiries and in the making of budgetary decisions. This Act provides a time to transition between the city auditor appointed under the Sacramento City Code and the installation of a city auditor as a charter officer. Section 2. Section 70 of the Sacramento City Charter is amended to read as follows: 70 Appointive officers. The following other city officers shall be appointed by the city council: (a) (b) (c) (d) (e) City Clerk; City Attorney; City Treasurer; City Auditor; and Such other officers and employees of its own body as it deems necessary. Section 3. Section 77 is added to the Sacramento City Charter to read as follows: 77 City Auditor. (a) The city council shall appoint a city auditor and shall prescribe the qualifications, duties, and compensation of such officer. The city auditor shall independently assess and report on city operations and services; shall assist the council in the conduct of budgetary inquiries and in the making of budgetary decisions; and shall have such other powers and duties as may be prescribed by state law and by ordinance or resolution of the city council. The city auditor shall appoint all other members of the city auditor s office. (b) The city auditor shall discharge the duties of the office as prescribed by ordinance enacted by the city council. Section 4: Section 5: Chapter 2.33 of the Sacramento City Code is hereby repealed. Effective Date. This Act shall take effect as provided in California Government Code sections and 34460, except that Sections 2 and 3 of this Act shall not be operational until July 1, Section 6: Severability. The provisions of this Act, including any portion, section, subsection, paragraph, subparagraph, sentence, clause, or word, are severable. If any provision of this Act or its application is held to be invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. Sacramento City Charter Amendment and City Code Repeal Regarding the City Auditor Page 8 of 8
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