The Sacramento City Council hired a Philadelphia-based firm earlier this week to audit the city’s Utilities Department. Public Financial Management, Inc., will receive up to $116,902 for its audit of the department, the council decided on Tuesday. In a Feb. 22 staff report, City Auditor Jorge Oseguera wrote that he and his staff judged the seven firms that applied for the job on “proposed scope of work, timeliness of work product, each firm’s expertise and qualifications, project cost and references.” The city’s audit team also interviewed three of the firms. The outcome of the process was Oseguera’s recommendation that the City Council hire Public Financial Management for the audit. L

Three months after Mayor Kevin Johnson and City Councilman Kevin McCarty publicly called for an audit of the Sacramento Utilities Department, the department will be audited extensively. The city’s internal auditor and an outside firm will conduct audits, the City Council decided Tuesday night. The council’s decision comes a year after the Sacramento County Grand Jury claimed in a report that the department may have broken state law Proposition 218. The law says that utilities fees from ratepayers must correspond to the costs of delivering the utilities services. Partly in response to the Prop. 218 issue, a citizens’ group placed a measure on the November ballot to roll back city utilitie

The past year was a big one for resignations, promotions and elections of Sacramento city officials. Twelve personnel changes took place at City Hall involving elected and appointed leaders and city staffers in 2010. A major change was in the city manager position, which was replete with drama and press conferences. When former City Manager Ray Kerridge resigned in March, the city was wrestling with a host of issues. The Sacramento County Grand Jury had released a report in January saying the city may have broken state law Proposition 218. Utilities fees from ratepayers must correspond to the costs of delivering the utilities services, the law states.  At the same time, the city was dea

Sacramento residents won't see monthly utility rates drop next summer after voters overwhelmingly rejected Measure B at the polls Tuesday. The initiative to roll back the city's rates for water, garbage and sewer services was failing by more than two to one late Tuesday night. With 287 out of 355 precincts counted, 41,328 – or 68 percent – of voters chose to stick with higher fees as of 10:55 p.m. More than 19,000 voters, or nearly 32 percent, had voted for the Utilities Rate Hike Roll Back Act of 2010 sponsored by the Sacramento County Taxpayers League, according to Sacramento County's elections department. The measure's opponents believe a rate decrease would have been a "risky approa

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 sai

The city is changing the way it manages illegally dumped garbage after the city attorney’s office found that the city’s old program might have broken state law. The City Council agreed on Tuesday to make the city’s code division responsible for the city’s illegal dumping program, meaning the Utilities Department will no longer handle it. City Attorney Eileen Teichert’s office found that the city’s funding system for the program may have violated Proposition 218. That state law says that utilities fees from ratepayers must correspond to the costs of delivering the utilities services. “The city attorney’s office has determined that under Prop. 218, garbage rate revenues may not be used to

After resigning from the city of Sacramento in March, controversial former City Manager Ray Kerridge did not travel far for his next major assignment: He’s now the city manager of Roseville. The Roseville City Council chose Kerridge for the position Thursday in a 4-1 vote. Kerridge was the choice out of 63 candidates for the job. Roseville Mayor Gina Garbolino said in an interview Thursday that Kerridge is the “right person for Roseville at this time.” Various Sacramento officials offered differing reasons in February for why Kerridge decided to leave the city. Sacramento city spokeswoman Amy Williams said Kerridge resigned from his post because he had dedicated more than 35 years to pu

The heat is still on: Public controversy continues to surround claims that the city’s uses of utilities funds broke state law. In the latest development, the city plans to send written responses to claims made by the Sacramento County Grand Jury. In a Jan. 6 report, the Grand Jury argued that the city’s use of utilities dollars may overstep Proposition 218, a state law that guides the usage of city funds. The grand jury report claims that money collected from residents’ utility bills may have been used to fund other municipal programs. Prop. 218 states that cities can use funds from utilities bills in one way: to cover the costs of delivering utilities services, according to the report.

Mayor Kevin Johnson and City Councilman Robbie Waters praised City Manager Ray Kerridge, who announced yesterday that he was resigning on March 12, at a joint press conference Thursday. Without naming anyone in particular, Johnson and Waters both blamed other council members for the negative atmosphere at City Hall. The other council members did not attend the press conference. However, Joann Cummins, district director for Councilwoman Sandy Sheedy, attended the event. “I think the divisiveness has certainly played a role (in Kerridge’s decision),” Johnson said. He said he was concerned that the work environment could cause “great talent” to leave. Johnson also faulted himself for his

A local group that watches public funds hopes to take its complaints over utilities rates to the polls.  The Sacramento County Taxpayers League's new ballot proposal seeks to stop a 9.2 percent city utilities rate increase scheduled to start in July.  The proposal follows a Jan. 6 grand jury report saying that the city’s use of utilities funds may conflict with Proposition 218, a state law that dictates how city funds should be used.  The grand jury report claims that money collected from residents' utility bills may have been used to fund other municipal programs. Prop. 218 states that cities can use funds from utilities bills in one way: to cover the costs of delivering utilities servi

News Analysis City Manager Ray Kerridge oversees a city government that is struggling with major controversies in its Community Development and Utilities departments. Council members are reacting to claims in a Jan. 6 grand jury report that the city may be breaking Proposition 218, a state law that mandates how city funds are used. City officials are also confronting findings from an investigation into the department’s approval last year of 35 permits in a Natomas flood zone. The offices of the city attorney and city manager note in a recent report that the department broke federal rules by approving the permits. The report lists new issues, including possible violations of city planni

The City Council held a contentious discussion Tuesday night about a recent Sacramento County grand jury report that claims the city may have broken state law. The Jan. 6 grand jury report states that the city is not adhering to Proposition 218, a state law regulating city funds. Councilwoman Lauren Hammond made tough remarks to Marty Hanneman, director of the Utilities Department. “I have no confidence in your cost allocations,” Hammond said. She expressed the view that utilities monies over the years have not been managed properly. “We need to come clean and start over,” she said. Utilites Department spokeswoman Jessica Hess notes that the department will address 10 possible Prop. 2

Sandy Sheedy is ready for controversy. The Sacramento city councilwoman plans to focus on a set of contentious issues this year. Her top citywide goals for 2010 are to address the budget and respond to concerns involving the development department and utilities funds. The Sacramento Press is publishing a series on the 2010 goals of city council members. Links to stories on the goals of other council members are included at the bottom of this story. Sheedy represents District 2, which covers neighborhoods north of the American River such as Del Paso Heights, Strawberry Manor and North Sacramento. Unlike many of her council colleagues, she is not running for re-election or higher office.