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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: City Auditor
Meeting Date: November 13, 2023
Report #:2310-2180
TITLE
Approval of proposed changes to the Fraud, Waste, and Abuse Hotline Administration Policy
RECOMMENDATION
The Policy and Services Committee and the City Auditor recommend that the City Council approve the proposed changes to the Fraud, Waste, and Abuse Hotline Administration Policy.
BACKGROUND
Section 53087.6 of the California Government Code1 authorizes an appointed city auditor to “maintain a whistleblower hotline to receive calls from persons who have information regarding fraud, waste, or abuse by local government employees” after obtaining approval of the City Council prior to establishing the whistleblower hotline. In May 2013, the City Council adopted the “City Employee Fraud, Waste, and Abuse Hotline Administration Policy” (“Hotline Policy”) after an 18-month pilot program to establish an employee-only fraud, waste, and abuse hotline. The revised Hotline Policy was approved by the City Council on June 5, 2017.
During the Policy and Services Committee meeting on October 10, 20232, the council members approved the proposed changes to the Fraud, Waste, and Abuse Hotline Administration Policy after amending the wording of the proposed changes as described in the Analysis section below.
MOTION: Council Member Veenker moved, seconded by Council Member Lauing that the Fraud, Waste, and Abuse Hotline Administration Policy be amended as discussed.
MOTION PASSED: 3-0
1 Section 53087.6 of the California Government Code
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=53087.6&highlight=true&lawCod e=GOV&keyword=53087.6F
2 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12174
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ANALYSIS
The Hotline Policy changes the Office of the City Auditor has proposed and the P&S Committee amended include:
•Revising the alternative members of the Hotline Review Committee (consisting of City Manager, City Attorney, and City Auditor) from “Assistant City Manager and Principal Attorney” to the replacement Committee member who is “selected from a list of 2-3 outside parties, at least one of which is an attorney, with whom the City Council has contracted on call services” to ensure the alternative member’s objectivity when one of the Committee members is alleged to be involved in fraud, waste, or abuse. •Adding a restriction of a Hotline Review Committee member’s access to the City’s internal hotline complaint system if it involves a hotline committee member. oThe Office of the City Auditor will review the system access controls to ensure that they support the reporting process.
•Adding a link to report to the California Fair Political Practices Commission when employees are reporting incidents involving members of the City Council.
FISCAL/RESOURCE IMPACT
City Manager’s Office, City Attorney’s Office, and City Council will potentially incur consultant costs to comply with these revisions, however, it is anticipated these costs can be absorbed within existing resource levels.
STAKEHOLDER ENGAGEMENT
The Office of the City Auditor will work with City Manager and City Attorney to administer the Hotline in accordance with the Hotline Policy.
ENVIRONMENTAL REVIEW
Council action on this item is not a project as defined by CEQA because the Auditor task orders are administrative activities that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5).
ATTACHMENTS
Attachment A: Hotline Policy with proposed changes 2023-10-10 APPROVED BY:
Adriane D. McCoy, City Auditor