HomeMy WebLinkAboutStaff Report 9325
City of Palo Alto (ID # 9325)
Policy and Services Committee Staff Report
Report Type: Action Items Meeting Date: 6/21/2018
Summary Title: Parking Funds Audit Status Update and Fund Consolidation
Title: Staff Recommendation That the Policy and Services Committee
Recommend the City Council Accept the Status Update on the Audit of
Parking Funds and Approve Consolidation of Residential Parking Funds
From: City Manager
Lead Department: Planning and Community Environment
Recommended Motion
Staff recommends that the Policy and Services Committee recommend that the City
Council:
a.) accept the attached Status of Audit Recommendations regarding the Audit of
Parking Funds, and;
b.) approve the consolidation of residential parking programs into a single non-
revenue neutral fund.
Background
In December 2015, the City Auditor’s Office issued an audit of parking funds (Staff
report 6404). The purpose of the audit was to determine if the City’s parking in‐lieu and
parking permit fees are collected, accounted for, and used in accordance with
applicable laws, regulations, policies, and governing documents.
Staff members from Planning and Community Environment, Administrative Services,
Public Works, the City Attorney’s Office, Police, and Community Services have jointly
worked to address the recommendations. To ensure the continuity of improvements, a
workgroup was formed consisting of staff from these departments. This group meets at
least quarterly to create high level procedures that establish roles and responsibilities
for budgeting and parking fund management.
Staff reported on audit status to the Policy and Services Committee in November, 2017.
At that time, of the eight recommendations identified in the audit, five had been
completed, two required ongoing work (recommendations 2.1 and 2.2), and one
(recommendation 1.5) was expected to be complete when the new downtown parking
garage is constructed.
City of Palo Alto Page 1
Discussion
With the workgroup’s successful completion of the Fiscal Year 2019 proposed parking
budgets, recommendations 2.1 and 2.2 are now considered complete. The workgroup
will continue to pursue the remaining recommendation (recommendation 1.5): creating
necessary procedures to ensure appropriations, funding sources, and capital expenses
are accurately and completely tracked during the life of each new parking garage CIP
project. The role of the workgroup and the status of these audit recommendations are
covered in more detail in Attachment A.
The staff recommendation also includes a change to the manner in which staff
administers the RPP fund. The parking audit recommended and staff implemented
separate accounts for each RPP. This change however, has resulted in additional
administrative challenges that have complicated implementation of this audit objective.
Alternatively, staff requests approval to combine these RPP accounts and to do so in a
manner that allows Council to track data for each individual district. The City Auditor
has reviewed and supports this recommended change. This fund will not be revenue
neutral so that the city can adjust parking permit rates based on city policy to
discourage employees from parking in residential neighborhoods.
Attachments:
Audit status update parking funds June 2018
City of Palo Alto Page 2