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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 providc 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 announccmcnt on the City's web page. City Administrator Wolfe is requesting direction from the City Council regarding how the allcged 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 alleged incident and letting them know that thc City has insurance for these situations and is taking all of the necessary steps to minimize the risk to the City in thc future. He believes 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 release. Thc City should not make any promises that it may not he able to keep. . Councilmemher Grant notcd that the City has hired a media consultant and the City should discuss any future prcss relcases with the Ramsey County Attorney to ensure that they are not jeopardizing the eourt case. He does not believe that a letter should be sent to eaeh resident. Councilmember Rem said that it is important for the City to address this issue with the publie. Couneilmember Rem asked if there is some merit to the City hiring a new auditing firm. Finance Director Murtuza Siddiqui said that there is some merit to hiring a new auditor every five years. There is a learning eurve with cvcry organization regarding their historical practices and aceounting procedures and that's one of the reasons why most organizations do not ehange 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 Direetor Siddiqui also mentioned that in most organizations, and experieneed auditor adds stability, especially ifthere is staff turnover. Couneilmemher 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 notcd that the City has some time and should review this issue with our legal advisors. . Couneilmember Larson said that he is willing to listen to the City's Attorney.