Minutes - Regular Meeting - 4/9/2003 r
41
Charter Review Commission
April 9, 2003
The Round Rock Charter Review Commission met on Wednesday, April 9,
2003 at . in the City Council Chamber, 221 E. MainStreet, Round Rock,
Texas.
2. Roll Call: Those members present were Chairman Robert Stluka, ice-
r Steve Laukhuf, Karen Adair-Murphy, Cary Bovey, Rufus Honeycutt, Scott
Placek and Jim Goodwino arrived duringitem .
3. rov of i utes: arc 2 ,
Motion: o issio er Honeycutt moved to approve the minutes of March ,
2003 as submitted. Commissioner Adair-Murphy seconded the motion.
Vote: yes: Commissioner Adair-Murphy
Commissioner Bovey
Commissioner o eyc tt
Commissioner L,au of
Commissioner Placek
Commissioner Stlu
Noes: None
Absent: Commissioner Goodwin
Action: he motion carried a i o sly.
4. Citizen o icatio s: None
Chairmantlu a dispensed withthe order oft e agenda with the unanimous
ONOP/11
consent of allthe Commissioners present and addressed the following item.
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6. Consider discussion and action re in ro o ed a end ents toe
Charter conte i i ce e ent reco en a tions. Cindy Demers, Assistant
tot e City Manager made the staff resena 'o . She referred to the memorandum
from David a , Chief Financial Officer regarding items that the Finance
Department oul like e Commission to considere e is tot e City
Charter. The first item pertains to Section 8.08, Depository. (Attached as Exhibit "A7)
Ms. Demers outlined the recommended changes explaining a is
amendment wo l rovi e flexibility in the daily administration on not only the
issuance of checks ut also wire and electronic fund transfers® The authorized
designated ici s would be approved e City Council through an ordinance. .
Currently, signatures are maintained in an electronic format makes it difficult when
changes occur like someone ovi u position or changes in the position of
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the Mayor or City Manager.
In response to Commissioner Honeycutt's question, Ms. Demers said that when
facsimiles signatures are used there is no individual review oft e instrument by the
Mayor, City Manager or authorized designee concerning the checks that oul e
issued. But there is protection in place through internal controls within the Finance
Department. individual cane ter a voucher into te system process a check
without of ers being involved. As anadditional control, particularly checks,
system called ositive Pay is utilized. Under this system a separate individual wi i
the Finance Department provides a file to the bank of all the checks a are being
issued ill not clear a check from e City's account unless it is on that
list. « '
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SECTION 8.08 DEPOSITORY
r;
All monies received y any person, department or agency of the City for or in
connection with affairs of the City shall be deposited promptly in the City depository or
depositories, which shall be designatedy the City Council in accordance with such
regulations and subject to such requirements as to security for deposits and interest thereon as
may be established by ordinance. All checks, vouchers, or warrants for the withdrawal of
money from the City depositories shall be signed by the Mayor and eemoter-signed by 4ho-Gky
er c tarsi yan autr v
Council ordinance. Provided, that the City Council, under such regulations and limitations as
it may pr-escribe, may by ordinance authorize the use of machine-unprinted facsimile signatures
of said Mayor, an& City Manager and authorized designee on such checks, vouchers and
warrants.
(Charter amendment approved by voters January 20, 1996)
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Motion: Commissioner Laukhuf movedaccept the recommendation o
amending ectio of the City Charter as provided by staffm Commissioner
`i
Honeycutt seconded the motion.
Vote: Ayes: Commissioner Adair-Murphy
Commissioner ovey
Commissioner Goodwin
Commissioner Honeycutt
Commissioner
Commissioner lace
Commissioner
oes® None
Action: e motion carried i o sly,
The second item from the Finance Department pertains to Section 301®,
Independent it. (Attached as Exhibit "B")
Ms. Demers outlined the recommended changes explained that under
auditing standards a portion of the independent a it cannot be published. The
audit is to be looked at as whole document, is is about 134 pages, and therefore
it is impossible o publish the entire audit in the newspaper.
In response to questions raised by Commissioner Laukhuf, Ms. Demers said
that staff has not been able to publish the audit in the newspaper for at least the
last 10 years. She added that copies of the audit are placed in the CitySecretary's
office and at the Library. Also, that she was not aware of any public notice being
published visi the public that the audit was available for review.
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Section 8.10 Independent Audit
At the close of each fiscal year,and at such other times as it may be deemed necessary,
the Council shall cause an independent audit to be made of all accounts of the City by a
certified public accountant. The certified public accountant so selected shall have no
personal interest,directly or indirectly,in the financial affairs of the City or any of its
officers. Upon completion of the audit,
ands a copy of the
audited annual fi it roort shall be placed on file in the City Secretary's office as
public record.
(Charter amendment approved y voters January 20, 1996)
Commissioner 1 c asked for a copy of the auditing standards that staff was
referencing. �
After discussion, it was the consensus of the Commission that Section 8.1®
should include language requiring that a public notice be published in the official
newspaper of the City stating thate audit is ready for inspection at locations
determined y staff. The Commission suggested that the noticeshould include
specific locations li e Library, City Secretary's office and on-line ere the audit
can be reviewed. s noted thatthe specific locations that were voiced were
merely suggestions and not intended to be included in the Charter. Section 8.10 will
e brought back to the Commission with the amendments as recommended by staff
and e Commission.
Commissioner Adair-Murphy inquired if it would be feasible to require that the j
audit services be acquired through the bidding process every three years as a
safeguard. Mr. Sheets noted thata matter of practice Certified Public
Accountants do not bid their services. The Charter could require the City Council
change auditors every 3 years but this may or may not be a good thing because
every time a new auditing firm is hiredthere is a learning that takes place, '
which could cost the City a lot more money. He added that this has been brought
afore the Council in the past and it was determined to be in the best interest oft e
City to continue using the auditing r that had been used in previous years. There
was no further discussion regarding Commissioner Adair-Murphy's inquiry.
Demers addressed the following questions that were raised at the previous
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meeting.
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• Aret ere any employees bonded for more than e .
• How many and for whatamount? r atel 296 employees are
bonded at $100,000 per occurrence. This is a dishonesty policy for those
employees o are handling cash or at a specific le t of responsibility
concerning Cit s.
• Is bonding a part of the budgetingprocess? Yes, all insurance i
are included in the annual budget.
• Is this a part of a policy reviewed annually? Yes, it is a parte
budgeting process and as the City's insurance olicies are updated
annually.
• Is the bonding done biannually or at the time the bonds are renewed?
At the time the bonds are renewed.
• Is the current ao of bonding tiedo any discretionary levels that
give these various officials s e authority o spend o ey? No
• Do the bonds protect the City from individuals absconding funds? Yes
• Does the City carry some sort of fidelityhonesty insurance? Yes,
Public Employees Dishonesty Policy100,000 per occurrence.
The Commission discussedwhether changes were needed to Section 3.15,
specifically, t er a bonding amount was needed or whether to leave it tot e
discretion oft e Council.
Motion: Commissioner Honeycutt moved that no changes be made to Section
3.15 oft e City Charter. Commissioner Adair-Murphy seconded e motion.
Vote: yes® Commissioner Adair-Murphy
Commissioner ovey
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Commissioner Goodwin
Commissioner Honeycutt
Commissioner Laukhuf
Commissioner Placek
Commissioner Stluka
Noes: None
Action: e motion carried unanimously.
Motion: Commissioner Placik amendede motion to include e t
to the last sentence in Section 4.0 1a) as follows: 'The City Manager shall be bonded
at Cityexpense f n amount to be determined by the Cityo n 'la" Commissione
Honeycutt acce to the amendment to his motion. CommissionerAdair-Murphy
seconded the amended motion. `j
Vote: Ayes: Commissioner Adair-Murphy
Commissioner Bovey
Commissioner Goodwin
Commissioner Honeycutt
Commissioner a f
Commissioner Placek
Commissioner Stluka
Noes: None
Action: e motion carried n i o sly,
5® Consider discussion and action re in ro ose en e is to e
Charter concerning e Ci ger Assistnia CityMananaer, and AcfiPz_QijY
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Marra er. Commissioner o eycutt provided s este language for Assistant
City Manager(s) Acting i a er. (Attached as Exhibit "C") Chairman
Stluka as well provided suggested language for Assistant City Manager(s) and Acting
City n er. (Attached Exhibit "D")
The Commission discussed whether the Council would or would not need to
approve the designation of the Acting CityManager and under what circumstances
the Council rove the appointment of the Acting CityManager.
After a lengthy discussion, es asked for clarification regarding e
amended language tot e recommendation prov e y Chairman Stluka. The
Commission concurred e Assistant Citye e day-to-day
operations othi o do withabsence and the Acting City Manager
addresses the City Manager's absence for less that 30 days and more than 30 days
when disabled or unable to perform his day to day duties.
In addition, Commissioner Laukhuf suggested a additional 1 e be
included in the event that City Managers not file a letter with the City Secretary
designating a qualified administrative officer to performthe duties of CityManager
in his absence. His suggested language is from e City of CarrolltonSection 3.04,
Absence of City Manager. (Attached at Exhibit " "). The Commission concurred wi
the suggested i ' .
The section that addresses the Assistant City ManageraActing City
Manager will be brought back tot e Commission for consideration after the City
Attorney has incorporated the appropriate language ass este .
ul
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l I ll
Section 4.01 CityManager
a�
(e)Assistant City
Manager(s)-
ere shall be such Assistant City Managers as authorized by the City Council
and appointed be City Manager,with the approval the City Council. Assistant City
Managers shall be authorizedo act for and on behalf of the City Manager. The City
Manager remove appoint Assistant CityManagers at will,with CityCouncil
approval.
Acting i aero
The City Manager,within sixty ( days after taking office, shall designate by
letter filed with the City Secretary, a qualified administrative officer or succession listing
of officers of the City,to perform the duties of the City Manager in his or hera sec or
disability. Ta designated person,when serving n place of the City Manager, shall be
known as e"Acting City Manager". When directed by the City Manager or through
determination y the City Council that the City Manager will be unable to perform his or
her duties for a period of time the designated officer shall assume the position of Acting
City a er.
i
submitted by Robert Stluka
q.q.03
Assistant City Managers
There shall be such Assistant City Managers as deemed necessary to assist the City
Manager carry out the day to day management responsibilities of the city. Assistant City
Managers shall be appointed by the City Manager.
Acting City Manager
The City Manager, within sixty ( 0) after taking office, shall designate by letter filed with
the City Secretary, a qualified administrative officer of the city o perform the duties o
City anger in his or her absence, of not more.than thirty ( s, and to then be
known as"Acting City Manager".
O'v
In the case of the City Manager being deemed disabled Reunable o perform the day
to day duties of the position, the City Council shall designate a qua Pied administrative
officer of the city to be"Acting CityManager".
VU -f-n OV..'
arnmdjyn�-
3��a
Sec. 3.04. Absence of city manager.
rr
To perform any duties during a temporary absence or disability,the city mana er ma desi nate by letter
filed with the city secretary a qualified administrative official of the city. In the event of failure of the city
manager to make such designation, the council may by"resolution appoint an official of the city to
perform the duties of the city manager until the manager shall return or the disability shall cease.
(Adopted by electorate, 9-19-61;Am.Ord. 1361 passed 4-7-87;Am.Ord.2364 passed8-11-98)
Sec. 3.05. Administrative departments.
There shall be administrative departments as may be established by ordinance upon the
recommendation of the city manager.
(Adopted by electorate, -19-61;Am.Ord. 1361 passed -7
Sec. 3.06. Citysecretary.
The city manager shall appoint an official of the city,who shall have the title of city secretary.The city
secretary shall give notice of the council meetings, shall keep minutes of its proceedings,shall
authenticate by signature and record all ordinances and resolutions, in full, in a book kept for such
purpose.The city secretary shall also perform such other duties as shall be required by this Charter or
by the city manager.
(Adopted by electorate, 9-19-61;Am.Ord. 1361 passed 4-7-87) �ti'"
Mr. Sheets asked for confirmation on whetheror not the appointments of the
Assistant i a a ers were with the approval of the City Council.
Commissioner Placek noted that his concern was not whether the Council
approved the appointments but rather the creation the position. He suggested
that language be taken frome City of Denton Sectioni er
(Attached x i it " " to address the appointment of the Assistant
Manager(s). Mr. Sheets concurred that this would be a simple way to address the
Assistant City Manager.
Chairmant said that he would like for Mr. Nuse attend the next
commission eei o discuss what hisintent r position is for an Assistant City
Manager because the current er does not have a provisionor an Assistant
City er. This will help the Commission determineo to provide
mechanism still staying consistent with the current Charter.
In response to Mr. Sheets' question, the Commission confirmed that the
consensus was that the Council does not need to approve the appointment e
Assistant City Manager.
Mr. Sheets statedatanother to that needs to be addressed is giving the
City Manager more authority to sign various documents and at some point some
type of concurrent au ori it e Mayor. Even allowinge City Manager to sign
contracts up to a certain nt. Mr. Sheets suggestedSection c) (Attached
as Exhibit "G") from the City of Bryan Charter could used to address this section.
He asked the Commission to review the paragraphsee if this was something
they thought o f e appropriate. r. Sheets explained why this woulde a good
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A • 11 F"
City of Denton
Code
Sec. 2-26. City manager.
The office of the city manager created by article V of the Charter for administraive and budget purposes
shall be designated as general government.The city manager shall select and appoint such deputy city
managers, assistant city managers, as.i ants, administrative assistants and employees as may be
provided from time to time in the budget of the city.lThe city manager may assign the city secretary and
other employees of the city to general government, and the assistant city managers and such other
employees of the city assigned to general government shall perform such duties and functions as may
be assigned from time to time by the city manager, the Charter,the ordinances of the city or as required
by state law.
(Code 1966,§2-16)
Charter references: City manager, 5.01 et seq.
,,,.. City of Bryan
Charter
Sec. 6. City manager.
(al Appointment and term. The city council shall appoint a manager whose term of office shall be
governed by the will and pleasure of the city council. In addition to the duties described in this charter,
the city council shall prescribe duties of the city manager by ordinances and resolutions that are not
inconsistent with this charter.The city council may enter into an employment contract with the city
manager that prescribes the conditions of employment as the city council determines appropriate.The
employment contract of the city manager may include a definite term that does not exceed five(5)years,
but which is renewable.
(b) Duties.The city manager shall:
(1) Be the chief administrative officer of the city;
(2) Receive such compensation as may be provided by the city council;
(3) Be subject to removal by the city council in accordance with the city manager's
employment agreement if any, or this charter and the city manager may demand written charges
and a public hearing before the city council, at any time between the issuance of the order of
removal and the date on which it takes effect;
(4) Be responsible to the city council for the proper administration of all the affairs of the ,
(5) Make recommendations to the city council on all matters concerning the administration of
the city, and in no case(save when the city council is considering the removal of the manager)
shall the city council act without first having asked the opinion in wTiting of the manager on that
point;
(6) Supervise city departments,make contracts for supplies and routine service, and disburse
funds under such regulations as the city council may prescribe;
(7) Make regular reports in writing to the city council, and make such special reports as the
city council may from time to timerequest;
(8) Attend all meetings of the city council and take part in discussion of matters pertaining to
the city, but have no vote;
(9) From time to time, make recommendations to the city council and keep it fully advised as
to all matters pertaining to the city;and
(10) Devote full time to the service of the city and never have any private interest, directly or
indirectly, in any contract with the city or to which the city is a party.
(c) Contracts and purchases.The city council may by ordinance set a maximum amount by which the
city manager shall be authorized to expend funds for budgeted'items and establish a minimum amount
by which the city manager shall be authorized to expend funds for budgeted items which must be let on
the basis of competitive bids; provided,that all expenditures or purchases in excess of the amount
established by state law must be let on the basis of competitive bids.The city council may by ordinance
establish a figure above which all contracts or purchases must be approved in advance by the city
�'� council.All contracts and purchases shall be handled in a manner to obtain the best value for the city.
iM.
addition a address e authority of signing contracts or expenditures
without vi to take every matter tote City Council. This could e listed as a
new provision titled Contracts and Purchases under Section 4.01. Mr. Sheets was
askedo bring c tote Commissions este a e and placement so it can
e determine if thiss something the Commission wishes to address.
Mr. Sheets continued that another its is is similar tote previous item,
woulde similar to lie Section 2-2.1from the City of Corpus Christi (Attached as
Exhibit "H- ). This wouldauthorize the City Manager toexecute cert 'n documents
o non-legislative matter. The Mayor would still sin all official legislative documents
that were addressed by the City Council. Allowing the City Manager to sign -lei tive documents would helpstreamline t o process in case the Mayor is not
available or out of town. Mr. Sheets was asked to drafts este language a
bringit back to the Commission so it can be determined if this is something the
Commission wishes to address.
Mr. Sheets addedat if any of the Commissioners had any ideas r
suggestion co cerni a as presented to them to let him knowso he can
incorporate those suggestions into the draft document.
7. Consider discussion bv staff and commissioners co ce i t e revie of
the i ter. Chairman Stluka askedthe Commissionto bring forward
specific item in the Charter that they wish to discuss. The item can be brought
back in a written format to be discussed and/or considered at another meeting.
Commissioner Honeycutt inquired e discussion that occurred a few
i
years ago concerning the creation of a Legal Department within the City. He noted
City f Corpus Christi
Code
Sec. 2-2. City manager succession.
In cases of absence, disability or death of the city manager,the deputy city manager is hereby
empowered and designated to act and serve as the city manager so long as such absence or disability
continues or until the appointment and qualification of the successor to the office, as the case may be;
provided, however,the city council may by ordinance empower and designate some person other than
the deputy city manager to temporarily act and serve as city manager. In the temporary absence of both
the city manager and the deputy city manager,the assistant city manager designated by the city
manager shall be empowered and designated to act and serve as the city manager during such
temporary absence.
All questions as to the occurrence and continuance of the city manager's absence or disability, as well as
the fact of his death, shall be determinable by the city council and its decision shall be final.
(Ord. No. 10361, §2, 7-21-71;Ord. No. 17748, § 1, 7-27-83)
Charter references: Authority to designate acting city manager during absence or disability of city
manager,art. III, § 1.
C
1111,
.
Sec. 2-2.1. Standard form document authority.
dThe city manager,the deputy city manager, assistant city managers, and their designates shall have the
authority to execute on behalf of the city standard form documents, including but not limited to warranty
deeds,special warranty deeds,quitclaim deeds,releases of lien,farm leases,rental agreements,
revocable easements,oil and gas leases, right-of-way agreements and joint use agreements for right-of-
way or easements,under the following conditions:
(a) That execution of the document is necessary to carry out a public works project; utilize,
maintain or improve any city facility, street, right-of-way, easement, park or other city property; or
implement any other citypolicy; provided that, such project, program or policy has been
approved by the city council.
(b) That all blanks are filled in on any document correctly and consistent with the objectives
approved by the city council.
(c) That the form of every document shall be approved by the city attorney as provided by the
city charter.
(Ord.No. 12075, § 1, -74; Ord.No. 17748, §2, 7-27-83)
& f)*-L
CL
�Y
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that since the Charter requires the Council to appoint the City Attorney, would that
12'1 IN
preclude the Council from setting up a Legal Department or is the City Attorney 1 Ji
separate from a Legal Department. Mr. Sheets responded that the language in the
Charter does not preclude the Council from establishing an in-house Legal
Department.
Commissioner Laukhuf said that he would like to revisit Section 8.10 and
how the auditing firms are hired to conduct the independent audit. His concern is
due to what has happened in the recent past with Anderson-Enron and their
accounting ractices® Questions that Commissioner Laukhuf voiced were what
of preclude a similar situation from happening to the City? What safe guards
can be implemented to see that it doesn't occur to the City? And are there rules that
I,
can be more clearly defined in this section without putting the audit out for bid? 0/1,
J
What can we do to clarify that the accounting practices are followed?
Mr. Sheets responded that the standards for public entities are much higher
than private entities. The standards for auditing public funds are so much higher
than private companies that it would almost be inconceivable for something tothat
nature to occur. Mr. Sheets said that he would relay these concerns to Mr. Kautz so
it can be discussed further.
Commissioner Honeycutt asked where the records are kept of changes to the
Charter that had been previously approved.
Chairman Stluka said that the last thing he would like to do is to go through
the existing Charter section by section to make sure that everything that needs to
41
be addressed has been done. 1
10
Mr. Sheets informed the Commission that Mr. Kautz wishes to discuss with
them proposed changes to Article 10 Section 10.08 and Article 11 Sectiorr 11.09.
Chairman Stluka asked staff to incorporate the suggestions that have been
voiced into a redlined copy of the Charter so it can be easily reviewed. Also, if any of
the Commissioners have something.they is to address to go ahead and submit it
in writing sothat Mr. Sheets can incorporate it into the document.
The April 23rd Charter Review Commission was cancelled to allow staff the
time to focus on the redlined document.
8. Commissioners Comments: None
9. Adjournment- There being no further business, the meeting adjourned at
6:53 p.m.
Respectfully submitted,
Christine Martinez, City Secretary