CCWS 12-19-2005 - Laserfiche WebLink

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City Council Work Session Meeting December 19,2005 7 . Fraud Case: City Response to Residents City Administrator Michelle Wolfe noted that there was a great deal of discussion regarding the desire of the City Council to provide information to the Arden Hills residents about the alleged theft of City funds which was made public last week. Suggestions include sending a letter to all of our residents, placing an article in the newsletter, or placing an announcement on the City's web page. City Administrator Wolfe is requesting direction from the City Council regarding how the alleged theft should be announced to the residents of Arden Hills. Councilmember Larson recommends that the City sends out a letter to the individual residents informing them of the a1!eged incident and letting them know that the City has insurance for these situations and is taking all of the necessary steps to minimize the risk to the City in the future. He believcs that most residents are not aware of the situation and it is the City Council's obligation to inform the residents. Mayor Beverly Alpikowski said that she is comfortable with a press rei case. The City should not make any promises that it may not be able to keep. . Councilmember Grant notcd that the City has hired a media consultant and the City should discuss any future press releases with the Ramsey County Attorney to ensure that they are not jeopardizing the court case. He does not belicve that a letter should be sent to each resident. Councilmember Rem said that it is important for the City to address this issue with the public. Councilmember Rem asked if there is some merit to the City hiring a new auditing firm. Finance Director Murtuza Siddiqui said that thcre is some merit to hiring a new auditor every five years. There is a learning curve with every organization regarding their historical practices and accounting procedures and that's one of the reasons why most organizations do not change auditors on a regular basis. Also, the City would want to complete a formal RFP process for auditing services which would have to take place a few months before the end of this year. Finance Director Siddiqui also mentioncd that in most organizations, and experienced auditor adds stability, especially ifthere is staff turnover. Councilmember Larson strongly urged the City Council to send out a letter to communicate with the residents regarding this issue. If the City Council is not willing to send out a letter, he will send out a letter on his own regarding the alleged theft of City funds. He wants to send out a letter or article that has his signature on it. Councilmember Rem noted that the City has some time and should review this issue with our . legal advisors. Councilmember Larson said that he is willing to listen to the City's Attorney.