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Home My WebLink About19D - UPDATE FEDT COUNCIL CMTREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: APRIL 5, 2016 TITLE: UPDATE ON FINANCE, ECONOMIC DEVELOPMENT AND TECHNOLOGY COUNCIL COMMITTEE RELATED ITEMS (STRATEGIC PLAN NO. 3; 4; 6) 1 L( / CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: _^•• _s 0 As Recommended El As Amended Csl Ordinance on 1� Reading 171 Ordinance on 2nd Reading d Implementing Resolutlon 0 Set Public Hearing For 10101 l 11121JL4Apkf+7 FILE NUMBER Receive and file an update on Finance, Economic Development, and Technology Council Committee related items. DISCUSSION Under the direction of the City Manager, City staff prepared updates on a number of agenda items scheduled for the March 21, 2016 Finance, Economic Development and Technology (FEDT) Council Committee special meeting. Given the cancelation of the FEDT special meeting, City staff has compiled the updates and provides the following summary. FINANCE: Fiscal Year 2014 -2015 Single Audit Review and Findings The City's FY 2014 -15 Single Audit (Audit) was issued an "Unmodified Opinion ", the highest level of audit assurance provided by the independent auditor, Macias Gini & O'Connell (MGO), and expenditure of Federal Grant funds totaling $52,812,269 for 25 programs. In addition, the Audit did not disclose any financial statement findings or material and /or significant deficiencies related to the City's internal control. However, the Audit noted four instances of non - compliance related to the administration of federal grant programs in the areas of Housing, Police, and Community Development. This included failure to maintain written policies related to obtaining grant information and monitoring of sub - recipients for grant funding. Corrective action has been taken by City staff to become in compliance with the noted findings. Request for Proposals — Audit Services The City issued a Request for Proposals (RFP), on February 10, 2016, to provide the City audit services including but not limited to issuance of the City's Comprehensive Annual Financial 1913-1 Update on Finance, Economic Development, and Technology Council Committee Related Items April 5, 2016 Page 2 Report and Agreed Upon Procedures related to the City's internal processes including the Investment Policy. A copy of the RFP was posted /advertised on the City's Planet Bids site viewed by approximately forty audit firms such as KPMG, its current independent auditor MGO, and other regional and national firms. The City was in receipt of six proposals including its current auditor MGO. The proposals were evaluated to determine if they met the requirements noted in the RFP. Upon evaluation three audit firms have been selected for interviews to further discuss their technical experience /qualifications and to confirm their capacity in providing the service. Staff is scheduled to recommend an audit firm at the May 3, 2016 City Council meeting. Budget Update In accordance with the Budget Calendar approved by the City Council on December 5, 2015, staff has completed its Sunshine Ordinance and Capital Improvement Program Outreach presentations. Additionally, the Finance Department has met with all City Departments to provide an analysis on current year spending (budget versus actual) and discuss parameters for the FY 2016 -17 proposed budget. Staff is scheduled to present the following items at the April 19, 2016 City Council meeting: 1. Preliminary FY 2015 -16 Budget Status 2. General Fund One -Year Forecast and Four -Year financial projections 3. Present the City Manager's Trial Budget 4. Preliminary Capital Improvement Program Credit Rating Overview On February 4, 2016, Standard & Poor's (S &P), a nationally recognized rating agency, issued the City a "AX general credit rating. To form a basis for their rating, S &P cited the City's strong financial and budgetary performance, specifically referencing the operating surplus achieved by its general and remaining governmental funds along with maintenance of an operating reserve totaling 32% of its operating expenditures. Additionally, S &P also indicated the City's strong management and institutional framework as a result of its development of its one -year forecast and four -year financial projection and robust financial policies. Procure America Update In late 2013, the City contracted with Procure America to identify and implement measures to generate energy cost savings. Specifically Procure America would review the City's gas and electricity billings to determine if the billings were appropriate under applicable utility company tariffs and regulations, to assess whether billing errors had occurred, and to identify billing rate schedules that may be more cost - effective for the City. Of the City's 1,223 Southern California Edison (SCE) service accounts, Procure America identified 32 service accounts that could benefit from a change in their respective service account billing rate schedule, consisting of various Parks and Recreational facilities, Traffic Signals and Water Wells. To date, Procure America has generated $51,913.14 in energy savings by recommending the City switch its current SCE billing rate schedules for various facilities. City 19D-2 Update on Finance, Economic Development, and Technology Council Committee Related Items April 5, 2016 Page 3 staff continues to work with Procure America to identify additional service accounts that would benefit from a change in billing rate schedules, and track additional energy savings. Water Utility Transfer Nexus Study The City entered into a consulting agreement with Raftelis Financial Consultant Inc. in February of 2015 to conduct a water transfer nexus study. Thus far, the consultant has completed two - thirds of the study due to the departure of key consultant staff and constraints in gathering the data. City staff anticipates the consultant will provide a complete report no later than June 2016. ECONOMIC DEVELOPMENT: Economic Development Strategic Plan RSG has provided City staff with data and strategies to prepare the Economic Development Strategic Plan. Staff anticipates presenting a draft plan for review no later than July 2016. Update on Placemaking Program City staff will present Phase 1 project recommendations at the April meeting of the Arts & Culture Commission. Project staff will continue to collect project ideas from the public until the entire program budget is committed. TECHNOLOGY: Wi -Fi As of March 17, 2016, the City's Information Technology Department has completed installation and configuration of approximately 250 wireless access points throughout City Hall and other remote City facilities. This includes all libraries, park and recreation centers, City Hall, council chambers, community centers and other public facilities. The only two city facilities left to configure for Wi -Fi service is the Centennial Trailer at Centennial Park and the West End police substation. In addition to the 250 access points, 24 public facilities were upgraded to high -speed fiber optic connections, which improved connections to City Hall and the Internet at speeds of more than five to 10 times faster than before. Wi -Fi access points enable mobile devices to connect to the City's network to provide staff, managers, approved contractors, and business partners wireless access to the network and its internal resources such as data files, folders and computers, printers, enterprise applications, internal websites, email and Internet service. Additionally, the "Santa Ana Guest" network offers and provides all Santa Ana citizens, guests and visitors free wireless Internet access at any of the Wi- Fi- enabled City locations. IT Strategic Plan The City is making progress on many of the recommendations from the City's Information Technology Strategic Plan and Roadmap. Following are highlights of our accomplishments: 19D-3 Update on Finance, Economic Development, and Technology Council Committee Related Items April 5, 2016 Page 4 • Management Recommendations: The plan recommended that an Information Technology (IT) Department be created and that this department have an experienced CTO /CIO reporting directly to the City Manager. The City created a new department and hired a new CTIO as of February 1, 2016. Analysis on consolidating other IT groups from various departments is ongoing. • Infrastructure: Significant progress has been made in providing Wi -Fi access. In addition, the Public Works Agency has been in discussions with several firms regarding creating a public /private partnership to provide citywide broadband access. The IT Department is currently analyzing options for upgrading the phone system and outdated networking equipment, as well as consolidating its data centers. • Hardware: Recently upgraded more than 300 PCs and is in the process of acquiring PC management tools to allow better support and management of the PC inventory. • Enterprise Software: The IT Department has been moving forward on several software upgrades recommended in the strategic plan, including an upgrade of the Lawson financial system and online performance approvals in the Human Resource system, as well as begun selection activities for a Budgeting application and a Public Records Request application. In addition, the Public Works Agency is hiring consultants to develop strategies for Asset Management and GIS applications. • E- Government: IT staff is evaluating tools to replace the technologies currently utilized for the City's Internet and intranet websites. IT is also working with the Finance Department to upgrade the City's utility billing system to allow additional online and mobile customer service and payment capabilities to our utility customers. • Emerging Technologies: The IT Department is evaluating and training staff on cloud - based computing and storage tools. The department is conducting pilots utilizing cloud technologies to evaluate the feasibility of migrating some on -site computing to the cloud. The department is also evaluating utilizing cloud - technology as part of its backup and disaster recovery process. Also, as recommended in the strategic plan, as part of the new tools being examined for the City's Internet website, the IT department is looking into making the site responsive to mobile devices. Finally, the City will soon launch an open data financial portal that will make the City's financial data available to the public. Gigabit Community of the Future The Public Works Agency is exploring the opportunity to form a fiber optic utility partnership with outside organizations in order to execute an initiative entitled Gigabit City /Fiber Optic Network. 1901-4 Update on Finance, Economic Development, and Technology Council Committee Related Items April 5, 2016 Page 6 STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's afforts to most Goal # 3 - Economic Development, Goal #4 -CIty Financial Stability, and Goal #6 - Community Facilities and Infrastructure, F11CA,L IME69 There Is no fiscal Impact associated with this Item. 1�4 P a,) Francisco Gutierrez Executive Director Finance and Management Services Agency Jack,puila Chichnology Innovations Officer Info Cation Technology Department Kelly Reender Fred Mous (pour Executive Dire o Executive Director Community Development Agency Public Works Agency 19D -5 19D-6