HomeMy WebLinkAbout12-09-08 :r<
Chair
Scott Bronson
1245 W. Highway 96
Committee Members
Maurice Gieske �REN HILLS Arden Hills, MN 55112
Al Hil ers 651.792.7800
g www.ci.arden-hills.mn.us
Jeff Johnson Arden Hills
James Ostlund
Council Liaison Financial Planning and
Stan Harpstead
Analysis Committee
December 9, 2008
City Vision
A strong community that values our unique environment, our fiscal soundness,
and our tradition as a desirable city in which to live, work, and play.
Agenda
Regular Committee Meeting Convenes 6:00 PM
Call to Order
1. APPROVAL OF THE AGENDA
2. MINUTES
A. October 14, 2008 Regular Meeting
3. UNFINISHED AND NEW BUSINESS
A. Identity Theft Prevention Program (Red Flags Rule)
B. 2009 Budget and 2009-2013 Capital Improvement Plan (CIP)
.4. REPORTS
A. Report from the City Council
B. Financial Planning and Analysis Committee Comments and Requests
5. ADJOURNMENT
A quorum of the City Council may be present at this meeting.
MINUTES
EN HILLS
• FINANCIAL PLANNING & ANALYSIS COMMITTEE
Tuesday, October 14, 2008
6:00 P.M.
Council Chambers, Arden Hills City Hall
CALL MEETING TO ORDER AND ROLL CALL
The meeting was called to order by Scott Bronson at 6:02 pm.
MEMBERS PRESENT: Scott Bronson; Stan Harpstead, Council Liaison; Jeff Johnson;
Maurice Gieske; Jim Ostlund
MEMBERS NOT PRESENT: Al Hilgers
OTHERS PRESENT: Sue Iverson, Finance Director; oe Rueb, Accounting Analyst;
Pang Silseth, Accounting Clerk; Arlene Mitchell, Co., unication Committee Member
Call to Order
1. APPROVAL OF THE AGENDA
Motioned: Maurice Gieske
Seconded: Jim Ostlund
• 2. APPROVAL OF August 12, 2008 J
Motioned: Jim Ostlund
Seconded: Maurice Giesk
,t, .
3. UNFINISHED AND N :SS
A. Identity Theft Po entio 'rogram (Red Flags Rule)
Finance Director sol 'eviewed background on the Identity Theft ,
Prevention Program ell as new compliance requirements and other cities c-' (5
policies. Gieske asked if the FPAC members can be held liable if someone's
identity is stolen. FPAC members will not be liable as the City's employees �`_��
and committee members are covered by the League of MN Cities:''P"a i`g'
Silseth reviewed the cities procedures. The Committee suggested changes to
be made and will re-review_
B. Review Investment Portfolio and Investment Policy
Next time the investment policy is changed, look to remove section 11, titled
"Exemption", on page 6. The committee requested a presentation from a 4M
represenative on the security of the 4M Fund. The committee also strongly
encourages further diversification. Finance Director should also explore
further investments with local banks.
City of Arden Hills
1245 West Highway 96•Arden Hills Minnesota 55112
Phone 651.792.7800•Fax 651.6345137
w ww.ci.arden-hills.mn.us
MINUTES
-AITEN HILLS
1111
4. REPORTS
A. Report from the City Council
Mayor Harpstead updated the committee on previous Council actions and
activities.
NEXT MEETING—Wednesday, November 12, 2008 (due to Veteran's Day)
5. ADJOURNMENT
Motioned: Jeff Johnson
Seconded: Jim Ostlund
Scott Bronson,Chair Susan K_Iverson,Finance Director
so
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•
City of Arden Hills
1245 West Highway 96•Arden Hills Minnesota 55112
Phone 651.792.7800•Fax 651.634.5137
www.ei.anien-hills.mn.us
•
AIQEN HILLS
MEMORANDUM
DATE: December 5, 2008
TO: Financial Planning and Analysis Committee
FROM: Sue Iverson, Finance Director;
Joe Rueb, Accounting Analyst
SUBJECT: Identity Theft Prevention Program (Red Flags Rule)
MBACKGOUND:
The Identity Theft Prevention Program (Red Flags Rule) was discussed at the October 14, 2008
meeting. The Committee suggested changes to be made to this policy and requested to re-view
for finalization.
RECOMMENDED ACTION:
Approve the Identity Theft Prevention Program(Red Flags Rule).
•
•
7ARZEN_jiILLS
City of Arden Hills
Identity Theft Prevention Program
•
Effective beginning Nove 66
•
• Summary
Federal regulations require the City of Arden Hills("City")to establish an Identity Theft Prevention
Program ("Program"), designed to detect, prevent, and mitigate identity theft. The Program must
include the identification of Red Flags that are relevant to the City's customer accounts, the
detection of Red Flags,and the mitigat.• • : . • •onse to detected Red Flags.The following
Program is to be administered by t ich is designated as the Finance Manager
of the City. The FACT Act Officer s a see at the appropriate personnel receive training to
properly implement the Program. Finally, the F CT Act Officer shall periodically reassess the
City's risks of identity theft and the ability oft-tProgr. to address that identity theft and,ifnecessary,
modify the Program. A^
I. Definitions
A"Red Flag"means a pattern, practice, or specific activity that indicates the possible existence of
identity theft.
A"covered account"means a continuing relationship established by a person for personal, family,
household or business purposes that involves or is designed to permit multiple payments or
transactions.
"Identity Theft"means a fraud committed or attempted using the identifying information of another
person without authority.
"Service provider"means a third party that provides a service directly to,or behalf of the City.
II. Identification of Red Flags
In order to identify relevant Red Flags, the City considers the types of accounts that it offers and
maintains, the methods it provides to open its accounts, the methods it provides to access its
accounts, and its previous experiences with Identity Theft. The City identifies the following red
flags, in each of the listed categories:
A. Suspicious Documents
Red Flags
1. If presented, identification document or card that appears to be forged, altered or
inauthentic;
2. If presented, identification document or card on which a person's photograph or
physical description is not consistent with the person presenting the document;
and
3. If presented, other document with information that is not consistent with existing
• customer information ( '
•
• B. Suspicious Personal Identifying Information
Red Flags
I. Identifying information presented that is inconsistent with other information the
customer provides (example: inconsistent birth dates);
2. Identifying information presented that is the same as information shown on other
applications that were found to be fraudulent;
3. Identifying information presented that is consistent with fraudulent activity(such
as an invalid phone number or fictitious billing address);
4. An address or phone number presented that is the same as that of another person;
and
5. A person's identifying information is not consistent with the information that is
on file for the customer.
C. Suspicious Account Activity or Unusual Use of Account
Red Flags
1. Change of address for an account followed by a request to change the account
holder's name;
2. Payments stop on an otherwise consistently up-to-date account;
3. Account used in a way that is not consistent with prior use(example: very high
ill activity);
4. Mail sent to the account holder is repeatedly returned as undeliverable;
5. Notice to the City that a customer is not receiving mail sent by the City;
6. Notice to the City that an account has unauthorized activity;
7. Breach in the City's computer system security; and
8. Unauthorized access to or use of customer account information.
D. Alerts from Others
Red Flag
1. Notice to the City from a customer, identity theft victim, law enforcement or other
person that it has opened or is maintaining a fraudulent account for a person
engaged in Identity Theft.
III. Detecting Red Flags
A. New Accounts
In order to detect any of the Red Flags identified above associated with the opening of a
new account, City personnel will take the following steps to obtain and verify the identity
• of the person opening the account:
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Djct
4111/
1. Require certain identifying information such as name, residential or business
address, principal place of business for an entity, or other identification; and
2. Review documentation showing the existence of a business entity.
B. Existing Accounts
In order to detect any of the Red Flags identified above for an existing account, City
personnel will take the following steps to monitor transactions with an account:
ct
1. Verify the identification of customers if they request information(in person, via
telephone, via facsimile, via email);
2. Verify the validity of requests to change billing addresses; and
3. Verify changes in banking information given for billing and payment purposes.
IV. Preventing and Mitigating Identity Theft
In the event City personnel detect any identified Red Flags, such personnel shall take one or
more of the following steps, depending on the degree of risk posed by the Red Flag:
Prevent and Mitigate
1. Continue to monitor an account for evidence of Identity Theft;
2. Contact the customer;
3. Not open a new account;
4. Close an existing account;
5. Reopen an account with a new number;
6. Notify the Program Administrator for determination of the appropriate step(s) to
take;
7. Notify law enforcement; or
8. Determine that no response is warranted under the particular circumstances.
c
Protect customer identifying information
In order to further prevent the likelihood of identity theft occurring wit
accounts, the City will take the following steps with respect to its intern. operating
procedures to protect customer identifying information:
1. Ensure that its website is secure or provide clear notice that the website is not
secure;
2. Ensure complete and secure destruction of paper documents and computer files
containing customer information;
4
• 3. Ensure that office computers are password protected and that computer screens
lock after a set period of time;
4. Ensure computer virus protection is up to date; and
5. Require and keep only the kinds of customer information that are necessary for
City purposes.
V. Program Updates
This Program will be perio ' a ICY ie � ated t reflect changes i 's s to customers
and the soundness of the ility t'r m I • heft. W never changing i g methods,
changing customer data collection, or violation trends ' dicate a possible eed for revision, the
Program Administrator will consider the City's exp ences with Identity Theft situation, changes
in Identity Theft methods, changes in Identity ft detection and prevention methods, changes
in types of accounts the City maintains and anges in the City's business arrangements with
other entities. After considering these factors, the Program Administrator will determine
whether changes to the Program, including the listing of Red Flags, are warranted. If warranted,
the Program Administrator will update the Program or present the Committee with his or her
recommended changes and the Committee will make a determination of whether to accept,
modify or reject those changes to the Program.
VI. Program Administration
S
A. Oversight
Responsibility for developing, implementing and updating this Program lies with an
Identity Theft Committee for the City. The Committee is headed by a Program
Administrator Two or more
other individuals appointed by the head of the City or the Program Administrator
comprise the remainder of the committee membership. The Program Administrator will
be responsible for the Program administration, for ensuring appropriate training of City
staff on the Program, for reviewing any staff reports regarding the detection of Red Flags
and the steps for preventing and mitigating Identity Theft, determining which steps of
prevention and mitigation should be taken in particular circumstances and considering
periodic changes to the Program.
B. Staff Training and Reports
Utility staff responsible for implementing the Program shall be trained either by or under
the direction of the Program Administrator in the detection of Red Flags, and the
responsive steps to be taken when a Red Flag is detected.
When an instance of identity theft is detected, the staff member(s)involved shall prepare
a narrative of what occurred and the steps taken in the process of resolving the problem.
i
5
• C. Service Provider Arrangements
In the event the City engages a service provider to perform an activity in connection with
one or more accounts, the City will take the following steps to ensure the service provider
performs its activity in accordance with reasonable policies and procedures designed to
detect, prevent, and mitigate the risk of Identity Theft.
1. Require, by contract, that service providers have such policies and procedures in
place; and
2. Require, by contract, that service providers review the City's Program and report
any Red Flags to the Program Administrator.
•
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•
-A►. EN HILLS
MEMORANDUM
DATE: December 5, 2008
TO: Financial Planning and Analysis Committee
FROM: Sue Iverson, Finance Director;
Joe Rueb, Accounting Analyst
SUBJECT: 2009 Budget and 2009-2013 Capital Improvement Plan (CIP)
DISCUSSION:
For informational purposes only, the 2009 Budget and the 2009-2013 Capital Improvement Plan
• (CIP) will be provided for review. Copies of the budget and CIP will be provided at the meeting
due to changes from the Monday night City Council meeting.
ACTION:
No action required.
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