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Wednesday, May 23, 2012
McCarty, Johnson urge utilities audit
by Kathleen Haley, published on October 13, 2010 at 5:51 PM
Storyline: Sacramento City Hall / Politics
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Sacramento City Councilman Kevin McCarty and Mayor Kevin Johnson both said Tuesday that the city’s Utilities Department should be audited. While the Utilities Department is not currently on City Auditor Jorge Oseguera’s audit schedule, it appears there is growing interest in the idea.
McCarty said at Tuesday night’s City Council meeting that he wanted to explore how the city could start an audit of the Utilities Department.
Oseguera said he is now working on audits of the city’s health benefits program and the city’s vehicle fleet management division.
“I think that (the Utilities Department) warrants getting on the list, (and) maybe even jumping in front of the other ones,” McCarty said.
Earlier on Tuesday, Johnson discussed the department at his weekly press conference.
“I’ve been calling for an audit of every department for at least 20 months,” Johnson said, responding to a reporter’s question if he will seek a Utilities Department audit.
He mentioned his concerns about the department while talking to reporters about Measure B, which would end a utilities rate increase and change the department’s management system for utilities rates.
“I don’t think we still, as a city, have gotten to the bottom of what’s wrong with the Utilities Department,” Johnson said.
Johnson has not yet taken a position on Measure B, while McCarty is leading a campaign to oppose it.
Supporters of Measure B say the city’s utilities rates are too costly, while opponents have said they fear the measure would harm city utility services and cause layoffs.
A heated issue involving the Utilities Department is a Jan. 6 Sacramento County Grand Jury report that claimed the department broke state law Proposition 218. Utilities fees paid by residents can only fund utilities services, according to the law. But the Grand Jury claimed that other programs at City Hall may have used the money.
Oseguera explained Wednesday that his audit schedule for the current fiscal year was signed off by the City Council and does not include a Utilities Department audit.
Oseguera noted that he will discuss options relating to a Utilities Department audit with the audit committee and the City Council.
However, Oseguera also pointed out that his office is currently understaffed. Two of his three staffers resigned in recent months. One of the former staffers, Gerald Silva, resigned in July after The Sacramento Press asked him questions about sexual harassment accusations in his previous job for the city of San Jose.
Oseguera said he has filled one of two open positions, and a new employee will join his office Nov. 8.
Photo by Brandon Darnell.
Kathleen Haley is a staff reporter for The Sacramento Press.
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What happened to the vehicle utilization audt that Oseguera claimed would save millions like he did in San Jose?
On 7/23/10, the City Auditor claimed to be working on four audits, the city’s health benefits, citywide policies, revenue collections and the vehicle fleet.
http://www.sacramentopress.com/headline/33465/City_auditor_digs_into_four_new_projects
Oseguera also claimed at that time that at least eight audits would be started. Guess he never claimed that he would finish any audits!
Keep contracting out the work. It is the only way important audits will get done!
Whom you do trust more to make the right decision on major rate hikes? Our rate-hike incontinent city council that is heavily influenced by city unions who profit from mega rate hikes OR city voters who have the proper balance of interests: they both benefit from the services while having to pay for them.
The council also has a huge conflict of interest in deciding major rate hikes. With the imbedded 11% uility tax on all city utility bills, the council always has an incentive to jack rates up as high as possible to juice the city's general fund, which is chronically short of money. Measure B forces the city to be upfront and honest with the people when it wants to raise general taxes, instead of passing "stealth tax" hikes via jacked up city utility rates.
This is not anti-tax San Diego or Orange County. Sacramento voters have a long and responsible track record of approving appropriate and warranted tax hikes while rejecting irresponsible tax proposals, such as the dumb arena tax proposal.
Vote "Yes" on Measure B.
And then 9 months after a grand jury finds that prop 218 was willfully violated, suddenly they get religiion and decide that the utility department might benefit from an audit?
Its the usual Amateur Hour at City Hall. Unfortunately at taxpayer's expense.
http://www.sacramentopress.com/headline/9788/Residents_to_see_9_percent_hike_in_utilities_rates
And then 9 months after a grand jury finds that prop 218 was willfully violated, suddenly they get religiion and decide that the utility department might benefit from an audit?
Its the usual Amateur Hour at City Hall. Unfortunately at taxpayer's expense.'
Hammer meet nail. I don't think I could have said it better myself. McCarty is a tool. Vote "Yes" on Measure B.
As for City Auditor Jorge Oseguera, perhaps he needs to prioritize his audit schedule. And the City Council needs to step up to the plate and request that an audit of the Utilities Department is a priority and has been a priority for over a year.
Utilities Rate Advisory Commission member, Ernest Lehr recently stated, “Sacramento’s utilities department is out of control, and those in charge cannot be trusted to exercise fiduciary responsibility.”
Food for thought, people!
From Councilmember Kevin McCarty.
My request at Council on Tuesday was for our new Audit Dept. led by Mr. Oseguera to launch a comprehensive audit of the entire Utilities Department. We have in fact conducted several narrow Utilities audits in the past 3 years, which have led to some significant changes/corrections in the Department. The link is here: http://www.cityofsacramento.org/auditor/audit_reports.html
However, I think it is fair to say that a wider approach is needed with more comprehensive audits.
When is your City Auditor going to complete an audit? Seven months and counting, no audits?
2nd Audit Request - Six months later, same proposal - DENIED
3rd Audit Request - Following Jan 2010 issuance of Grand Jury report on
$21 million of illegal diversions by utilities department - DENIED
Request for special counsel to investigate illegal diversions - DENIED
Request for disciplinary action or firing of city managers responsible for diversions - DENIED
Now, just as people are voting on rolling back utilities rates - Measure B- the chair of the "No on B" campaign - McCarty - is promising that the city will audit the utilities department. How stupid does he think we are?
VOTE NO ON MEASURE B.
Well said, Craig.