FRAUD POLICY
COUNCIL POLICY
Adopted: March 22, 2023
The City of Nevada City (City) is committed to protecting its revenue, property, information and other assets from any attempt, either by members of the public, contractors, vendors, agents or its own employees, to gain by deceit, financial or other benefits at the expense of City taxpayers. City officials and employees must, at all times, comply with all applicable laws and regulations. The City will not condone the activities of officials or employees who achieve results through violation of the law or unethical business dealings. The City does not permit any activity that fails to stand the closest possible public scrutiny. This policy sets out specific guidelines and responsibilities regarding appropriate actions that must be followed for the investigation of fraud and other similar irregularities.
A. Definitions
Occupational fraud is defined by the Association of Certified Fraud Examiners as the use of one’s occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization’s resources or assets. There are three major categories of occupational fraud.
1. Asset Misappropriations – Theft or misuse of an organization’s assets. a) Cash.
1) Fraudulent Disbursements – Perpetrator causes organization to disburse funds through some trick or device (e.g.,
submitting false invoices/time cards/sheets, expense
reimbursement schemes, check tampering, etc.)
2) Skimming – Cash is stolen from an organization before it is recorded on the organization’s books and records.
3) Cash Larceny – Cash is stolen from an organization after it has been recorded on the organization’s books and records. b) Inventory and all other assets.
1) Misuse – Misuse of an organization’s inventory or assets for personal use (e.g., City vehicles, computers, supplies, etc.) 2) Larceny – Inventory or other assets are stolen from an organization.
Fraud Policy Page 2 of 6 Council Policy
March 22, 2023
2. Corruption – Wrongfully use influence in a business transaction in order to procure some benefit for themselves or another person, contrary to duty to employer or the rights of another.
a) Conflicts of Interest – An undisclosed economic or personal interest in a transaction that adversely affects the employer.
b) Bribery – The offering, giving, receiving, or soliciting of anything of value to influence an official act or a business decision. c) Illegal Gratuities – A party who benefits from an official act or a business decision gives a gift to a person who made the decision.
An illegal gratuity does not require proof of intent to influence. d) Economic Extortion – An employee demands that a
vendor/contractor/etc. pay to influence an official act or a business decision.
3. Fraudulent Statements – Falsification of an organization’s financial statements.
Other similar irregularities is defined as any activity involving questionable behavior or business dealings by members of the public, contractors, vendors, agents or City employees, that put City revenue, property, information and other assets at risk of waste or abuse.
B. Applicability
This policy applies to all Elected Officials and employees of the City of Nevada City as well as any business or individual doing business with the City.
C. General Policy and Responsibility
1. It is the City’s intent to fully investigate any suspected acts of fraud or other similar irregularity. An objective and impartial investigation will be conducted regardless of the position, title, length of service or relationship with the City of any party who might be or becomes involved in or becomes/is the subject of such investigation.
2. Each Elected Official, Department Director, Commissioner, and Manager is responsible for instituting and maintaining a system of internal control to Fraud Policy Page 3 of 6 Council Policy
March 22, 2023
provide reasonable assurance for the prevention and detection of fraud, misappropriations and other irregularities. Management should be familiar with the types of improprieties that might occur within their area of responsibility and be alert for any indications of such conduct.
3. The Chief Financial Officer has the primary responsibility for the investigation of all activity defined in this policy.
4. The Chief Financial Officer will notify the City Manager of a reported allegation of fraudulent or irregular conduct upon the commencement of the investigation to the extent practical. Throughout the investigation the City Manager will be informed of pertinent investigative findings.
5. In all circumstances where there are reasonable grounds to indicate that a fraud may have occurred, the Chief Financial Officer, subject to the advice of the City Attorney, will contact the office of the City Police Department.
6. Upon conclusion of the investigation, the results will be reported to the members of the City Council, the City Attorney, and others as determined necessary.
7. The City Attorney will pursue every reasonable effort, including court ordered restitution, to obtain recovery of the City’s losses from the offender, or other appropriate source.
D. Procedures
1. All Employees
a) Any employee who has knowledge of an occurrence of irregular conduct, or has reason to suspect that a fraud has occurred, shall immediately notify his/her supervisor. If the employee has reason to believe that their supervisor may be involved or does not feel comfortable reporting the occurrence to their supervisor, the employee shall immediately notify the Chief Financial Officer. b) Employees have a duty to cooperate during an investigation. c) Employees who knowingly make false allegations will be subject to discipline in accordance with the City Personnel Policy.
Fraud Policy Page 4 of 6 Council Policy
March 22, 2023
2. City Management/Elected Officials
a) Upon notification from an employee of suspected fraud, or if management has reason to suspect that a fraud has occurred, they shall immediately notify the Chief Financial Officer.
3. Chief Financial Officer
a) Upon notification or discovery of a suspected fraud, the Chief Financial Officer will promptly investigate the suspected fraud. In all circumstances, where there are reasonable grounds to indicate that a fraud may have occurred, the Chief Financial Officer will inform the City Attorney. Subject to the advice of the City Attorney, the Chief Financial Officer will contact the City Police Department.
4. Contacts/Protocols
a) After an initial review and a determination that the suspected fraud warrants additional investigation, the Chief Financial Officer will notify the City Manager. The Chief Financial Officer will coordinate the investigation with the City Attorney and appropriate law enforcement officials.
5. Security of Evidence
a) Once a suspected fraud is reported, the Chief Financial Officer, in consultation with the City Attorney, shall take immediate action to prevent the theft, alteration, or destruction of relevant records.
Such actions include, but are not necessarily limited to, removing the records and placing them in a secure location, limiting access to the location where the records currently exist, and preventing the individual suspected of committing the fraud from having access to the records. The records must be adequately secured until the Chief Financial Officer obtains the records to begin the audit investigation.
6. Personnel Actions
a) If a suspicion of fraud is substantiated by the investigation, disciplinary action, in accordance with the City Personnel Policy, Fraud Policy Page 5 of 6 Council Policy
March 22, 2023
shall be taken by the City Manager, in consultation with the Human Resources Department, the Chief Financial Officer and the City Attorney.
7. No employer or person acting on behalf of an employer shall:
a) Dismiss or threaten to dismiss an employee;
b) Discipline or suspend, or threaten to discipline or suspend, an employee;
c) Impose any penalty upon an employee; or
d) Intimidate or coerce an employee
because the employee has acted in accordance with the requirements of this policy. The violation of this section will result in discipline up to and including dismissal in accordance with the applicable federal, state and local administrative laws.
8. Media Issues
a) Any City employee or elected official contacted by the media with respect to an audit investigation shall refer the media to the City Manager. The alleged fraud or audit investigation shall not be discussed with the media by any person other than through the City Manager, in consultation with the Chief Financial Officer. b) If the Chief Financial Officer is contacted by the media regarding an alleged fraud or audit investigation, they will consult the City Manager, before responding to a media request.
c) Neither the Chief Financial Officer nor the City Manager will discuss the details of any ongoing fraud investigation with the media that may compromise the integrity of the investigation.
9. Documentation
a) At the conclusion of the investigation, the results will be reported to the members of the City Council, the City Attorney, and others as Fraud Policy Page 6 of 6 Council Policy
March 22, 2023
determined necessary. If the report concludes that the allegations are founded, the report will be forwarded to the City Police Department.
10.Completion of the Investigation
a) Upon completion of the investigation, including all legal and personnel actions, any records, documents and other evidentiary material will be returned by the Chief Financial Officer to the appropriate department.
11.Reporting to External Auditors
a) The Chief Financial Officer will report to the external auditors of the City all information relating to investigations.
12.Training
a) New employees are trained at the time of hiring about the City’s Code of Conduct and Fraud Policy. This training explicitly covers expectations of all employees regarding:
1) Their duty to communicate certain matters;
2) A list of the types of matters, including actual or suspected fraud, to be communicated along with specific examples; and 3) Information on how to communicate those matters.
CITY OF NEVADA CITY
CITY COUNCIL STAFF REPORT
MEETING OF: March 22, 2023 Agenda Item No. 13
Subject: Consideration of Adoption of Resolution 2023-
10: A Resolution of the City Council of the City of Nevada City, California Approving a Permit for In-Lieu Parking Payments for the BrewBilt Outdoor Dining / Beer Garden
Area Located at 300 Spring Street, Nevada City
From: Amy Wolfson, City Planner
Date: March 14, 2023
Reviewed & Approved:
City Manager: STG
City Attorney:
Recommended Action: Adopt Resolution 2023-10, for the payment of in-lieu parking fees for the expanded business at 300 Spring Street.
ISSUE STATEMENT AND DISCUSSION:
On February 16, 2023, the planning commission, after holding a duly noticed public hearing, approved a Conditional Use Permit for BrewBilt Brewing, LLC, for the conversion of existing parking and walkway space for an outdoor dining / beer garden associated with the BrewBilt tap house business preparing to operate at the building at 300 Spring Street. Among the approved entitlements was a Variance from the 14 off-street parking spaces required to serve the expanded business space, subject to conditions of approval. Planning Condition 7 requires that “prior to building permit issuance or any site plan improvement, the property owner shall adhere to any inlieu parking payment program required pursuant to Section 17.112.050(A), as determined by Permit Resolution of the City Council of Nevada City. The conditional use permit, site plan, and variance entitlements shall be invalid until compliance with the issued City Council permit.” The Municipal Code provides for developers to request payment of in-lieu parking fees instead of providing off-street parking spaces for uses in the City’s historical district (Chapter 17.112).
However, the “city has the option of determining whether or not there should be: (1) in-lieu parking payments; (2) compliance with minimum city off-street parking requirements; or (3) a combination of both.” (Section 17.112.080). In making a determination regarding whether to permit the payment of in-lieu parking fees the city must consider:
• the shape and size of the property to be improved;
• the proposed use of the property;
• the availability of parking in nearby areas; and
• the number of spaces required for the use under the city’s parking ordinance.
Staff has determined that off-street parking requirements are not feasible in relation to the project as proposed which would require an in-lieu payment of $63,000 for the fourteen (14) parking spots.
Staff supports a combination of in-lieu parking payments and additional alternative parking mitigation strategies should the property owner choose to exercise a contract to meet the strategies.
Staff has worked closely with the property owner to support a reduced parking demand calculation based on amenity exchanges that provide a public benefit including:
• The property owner will provide location, foundation and electrical connection for three (3) on-premises gas-style streetlamps matching the adjacent streetlamp installation in the right-ofway on Spring and Pine Streets. • The property owner will provide two parking spots equivalents for racks to accommodate eight (8) bicycle parking spots providing publicly accessible bicycle parking on site. • The property owner will provide one parking spots equivalent for racks to accommodate four (4) bicycle parking spots providing publicly accessible bicycle parking off site. • The property owner will be credited for street parking spaces along the driveway curb-cut that will no longer serve as a driveway entrance.
• The property owner will provide two architectural design for a one dumpster and two dumpster solid waste enclosure to the City for use in future public or private enclosures to address the intersection of parking and solid waste collection issues.
Based on the public benefit amenities the property owner is willing to provide the net parking demand is equal to five (5) spaces. Per Resolution 2005-35 the current in-lieu parking fee per space is $4,500 making the total due to the city $22,500. Staff is recommending that a payment contract be prepared allowing the property owner to pay the in-lieu fee in monthly instalments over a period of one year beginning six months after the issuance of the certificate of occupancy for the project.
Adoption of the resolution authorizes the City Manager to execute a contract with the property owner to enact the approvals.
FINANCIAL AND/OR POLICY IMPLICATIONS:
The in-lieu parking fee of $22,500 will be paid to the city and placed in the City’s restricted general fund reserves dedicated to parking.
STRATEGIC PLAN ALIGNMENT:
This action is consistent with the strategic initiative of Business: Business, Industry, and Cannabis Support. Specifically, the action addresses business initiative goal #6, “Support tourism as a funding mechanism for our businesses”
ENVIRONMENTAL CONSIDERATIONS:
None.
ATTACHMENTS:
Received Public Comment
Resolution No.2005-35, Adopted Parking In-Lieu Rate
Resolution No 2023-10, BrewBilt Parking In-lieu payment of five spaces
January 30, 2023
Amy Wolfson
317 Broad Street
Nevada City, CA 95959
RE: Support for the Brewbilt proposal at 300 Spring Street Dear Amy,
The Chamber would like to express its support for the BrewBilt taproom project at 300 Spring Street which we believe will provide numerous benefits to both the City and the business community in Nevada City. In summary the Chamber feels that the BrewBilt team has set forth a compelling list of addional amenies that would improve the street aesthecs, as well as overall safety and accessibility.
This project would provide aesthec improvements to the Spring Street Corridor with the proposed perimeter wall by Dan Reinhart Masonry. Mr. Reinhart’s masonry work is iconic and characterisc of Nevada City. It is worth nong that this wall would create an aesthec bridge between the Downtown Historic District and Seven Hills, creang a unified feel throughout Nevada City. We understand that the BrewBilt team would spend significantly more money on this Reinhart wall as opposed to the originally planned concrete wall.
The BrewBilt team also proposes to add three streetlights within the property boundaries to improve public safety at the intersecon of S. Pine and Spring Streets. These lamps (supplied by the City) would be installed and powered at BrewBilt’s expense. We frequently hear from merchants and Chamber members that downtown is too dark at night to safely navigate the sidewalks.
The BrewBilt team also proposes to install three motorcycle parking spaces located in the driveway entrance to the project site, thus donang this space to the City. Considering how popular motorcycling is in Nevada City, Downtown has a shortage of motorcycle parking. We frequently see that motorcyclists will take a full car parking space because that is their only opon. By providing these three spaces, the project has the potenal to free up parking for vehicles.
For these reasons, the Chamber vigorously supports this project and the significant benefits it would bring to Nevada City, the business community and visitors.
Sincerely,
Stuart Baker
Execuve Director
Cc: Sean Grayson
132 Main Street – Nevada City, CA 95959 – www.nevadacitychamber.com
1 RESOLUTION NO. 2023-10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEVADA CITY,
CALIFORNIA
APPROVING A PERMIT FOR IN-LIEU PARKING PAYMENTS
FOR THE BREWBILT OUTDOOR DINING/ BEER GARDEN AREA
LOCATED AT 300 SPRING STREET, NEVADA CITY
WHEREAS, the project, known as the BrewBilt Outdoor Dining/ Beer Garden, was approved by the Nevada City Planning Commission at a public hearing on February 16, 2023; WHEREAS, the project involves the removal of asphalt and pavement around the exiting building and improving the space for outdoor dining and a game area for a total added area of 4,261 square feet of outdoor space;
WHEREAS, Nevada City Municipal Code Chapter 17.112 provides standards for in-lieu parking payments, finding that the downtown area of Nevada City constitutes an area in which hardship exists because of the shape, size and location of the properties within the downtown, that the minimum parking requirements can be met by providing for the payment of money instead of the furnishing of parking spaces that would otherwise be required, and the latest fee adopted for the payment of in-lieu parking is $4,500 per space; WHEREAS, the added parking demand for the expanded business space, pursuant to Zoning Ordinance Section 17.80, is equal to14 parking spaces:
WHEREAS, the property owner has agreed to enter into a contract with the City to provide amenities of public benefit in order to reduce the parking in-lieu fee to that of five parking spaces;
WHEREAS, Chapter 17.112 further states that the purpose of the in-lieu parking payments is to fund adequate parking facilities by requiring the payment of in-lieu parking fees; NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Nevada City hereby approves the in-lieu parking payment permit for the BrewBilt Outdoor Dining / Beer Garden at 300 Spring Street for 14 parking spaces, which may be reduced to five spaces upon entering into a City contract for amenities of public benefit in exchange for the parking space credits, for a total of $63,000 for all 14 spaces or $22,500 with execution of the contract.
BE IT FURTHER RESOLVED, that the City Manager is authorized to execute a contract with the property owner to reflect the approved parking payments in monthly instalments over a period of one year beginning six months after the issuance of the certificate of occupancy for the project with the contract in a form as approved by the City Attorney.
PASSED, APPROVED AND ADOPTED this 22nd day of March 2023. 2 ______________________________
Doug Fleming, Mayor
ATTEST:
_________________________________
Gabrielle Christakes, Deputy City Clerk
APPROVED AS TO FORM:
_________________________________
Dean J. Pucci, City Attorney
CITY OF NEVADA CITY
CITY COUNCIL STAFF REPORT
MEETING OF: March 22, 2023 Agenda Item No. 14
Subject: Consideration of the Appointment of a
Council/Community Committee to Review and Make
Recommended Revisions to the City’s Mission and Vision
Statements.
From: Sean Grayson, City Manager
Date: March 13, 2023
Reviewed & Approved:
City Manager:
City Attorney:
Recommended Action: Appoint the selected Council committee for review of the City’s mission and vision statements.
ISSUE STATEMENT AND DISCUSSION:
At the November 9, 2022, Regular City Council meeting, the City Council adopted the City of Nevada City Strategic Plan 2022-2027. Based upon input from the community, the City Council determined that the City’s existing mission and vision statements were sufficient for the adoption of the plan but made two objectives within the plan to update the statements:
By the adoption of the fiscal year 2023/2024 City budget, appoint a City Council / Community Committee to review and recommend revision to the City’s MISSION to enhance its understanding with the community aligned with this strategic plan
By the adoption of the fiscal year 2023/2024 City budget, appoint a City Council / Community Committee to review and recommend revision to the City’s VISION to enhance its understanding with the community aligned with this strategic plan
The City is scheduled to conduct its budget workshop on May 3, 2023, and to adopt its fiscal year 2023/2024 budget on June 14, 2023. In order to address the two objectives within the desired timeline a public meeting should be conducted to review and recommend revision of the City’s mission and vision statements. Staff recommends that the Vibrancy Committee be tasked by the City Council to conduct said public meeting by April 28, 2023.
FINANCIAL AND/OR POLICY IMPLICATIONS:
None.
STRATEGIC PLAN ALIGNMENT:
This action addresses objective #1, “By the adoption of the fiscal year 2023/2024 City budget, appoint a City Council / Community Committee to review and recommend revision to the City’s MISSION to enhance its understanding with the community aligned with this strategic plan,” and objective #2, “By the adoption of the fiscal year 2023/2024 City budget, appoint a City Council / Community Committee to review and recommend revision to the City’s VISION to enhance its understanding with the community aligned with this strategic plan,” of the strategic plan.
ENVIRONMENTAL CONSIDERATIONS:
None.
LEGAL REVIEW:
City Attorney Pucci has reviewed this item and finds that the recommended action complies with the law.
ATTACHMENTS:
None.