SPECIAL FEATURE: Review of Approved Meeting Minutes Audit, Finance and Enterprise Committee Meeting 25 June 2020

The last of six meetings for the month of August

CITIZEN PARTICIPATION
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To decrease COVID-19 exposure, the City Council Chambers is closed, but public participation and viewing will be available electronically. 

See the City Council Meetings page for full details about meeting participation

Mesa operates under a charter form of government with citizens electing a mayor and six councilmembers to set policy for the City.
Mesa's councilmembers serve terms of four-years, with three members being elected every two years. The mayor is elected at-large every four years. The mayor and council are elected on a non-partisan basis. The vice mayor is selected by the City Council.
The Mesa City Council believes that its people, not leaders, are what makes a City great and actively works to encourage citizen participation in the decision-making process. Whether it is through neighborhood meetings, advisory boards and committees, telephone calls and letters, or email, the Mesa City Council sets policies based on the input and needs of its citizens.

Mayor John Giles
Vice Mayor Mark Freeman District 1	Councilmember Jeremy Whittaker District 2	Councilmember Francisco Heredia District 3
Councilmember Jen Duff District 4	Councilmember David Luna District 5	Councilmember Kevin Thompson District 6

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Public Information provided by the City of Mesa starts at this site
Mesa LegiStar Calendar
STUDY SESSION VIRTUAL PLATFORM Mon 08.31.2020 @ 5:15 PM
Council Study Session Notice: To decrease COVID-19 exposure, the City Council Chambers is closed, but public viewing and input on the items are available electronically.   Members of the City Council will appear electronically for this meeting, via a video conferencing platform, and the live meeting will be accessible via broadcast and telephonically. 
Because of the current public health emergency, the City Council Chambers is closed for Council study sessions.
However, the live meeting may be watched on local cable Mesa channel 11, online at Mesa11.com/live, www.youtube.com/user/cityofmesa11/live, or https://www.facebook.com/CityofMesa, 
or
listened to by calling 888-788-0099 or 877-853-5247 (toll free) using meeting ID 5301232921 and following the prompts.   
For any difficulties accessing this meeting, please call 480-644-2099
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Roll Call
1 Review and discuss items on the agenda for the August 31, 2020 regular Council meeting. 2 Acknowledge receipt of minutes of various boards and committees.
20-0881
Audit, Finance and Enterprise Committee meeting held on June 25, 2020. 2-a
3 Current events summary including meetings and conferences attended.
4 Scheduling of meetings.
Item 2-a Meeting Detail:

File #:

20-0881

Type:

Minutes

Status:

Agenda Ready

In control:

City Council Study Session

On agenda:

8/31/2020

Title:

Audit, Finance and Enterprise Committee meeting held on June 25, 2020.

Attachments:

1. June 25, 2020 CFN

AUDIT, FINANCE & ENTERPRISE COMMITTEE 
June 25, 2020  
The Audit, Finance & Enterprise Committee of the City of Mesa met via a virtual format streamed into the lower level meeting room of the Council Chambers, 57 East 1st Street, on June 25, 2020, at 9:23 a.m. 

COMMITTEE PRESENT  
Jennifer Duff, Chairperson*
Mark Freeman*
David Luna*   
STAFF PRESENT   
Michael Kennington
Dee Ann Mickelsen
Jim Smith 
(*Committeemembers participated in the meeting through the use of video conference equipment.) 
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BLOGGER NOTE: exhibits and attachments are Power Point slides in pages 7-38
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Chairperson Duff conducted a roll call. 
1-a. Hear a presentation and discuss the following audits: 

1. Transient Lodging Tax 
Mr. Lisitano said the audit consisted of interviewing City of Mesa and Visit Mesa personnel
> to review contracts and statutes to identify the requirements and performance expectations,
> to  review the revenue distribution to confirm compliance,
> to perform tests of TLT expenditures
> and analyzed the performance measures used for reliability and effectiveness. 
(See Page 5 of Attachment 1)

2. Citywide Cash Funds (Continuous) 
(See Pages 10 through 12 of Attachment 1)

3. Annual Credit Card Security Review
See Pages 14 through 17 of Attachment 1)

4. Procurement Card Program (Follow-Up Review)
(See Page 21 of Attachment 1) 
In response to a question from Committeemember Freeman regarding how often there is a credit card discrepancy where an employee must reimburse the City, Mr. Lisitano stated there were a few incidents where that came up in the audit, but it was not common. 
He expressed the importance of staying on top of reimbursements because that is how fraud occurs.   
Chairperson Duff commented on an instance when she has accidently charged a service using the wrong card.   
Mr. Lisitano confirmed that similar situations came up in the audit where an employee forgot to ensure the correct card was being charged and reiterated the need for approvers and reviewers to carefully reconcile those items. 



5. . Development Services Fees and Charges
Follow-Up Review
(See Page 23 of Attachment 1)
In response to a question posed by Committee member Freeman regarding whether the City lost money from the fee discrepancy,
Mr. Lisitano stated the item pertained to sewer or water; and if he is recalling correctly, the difference was under $3,000.

1-b. Hear a presentation, discuss, and provide a recommendation on the proposed Audit Plan for FY 2020/21.  
Mr. Lisitano displayed a PowerPoint presentation and gave an overview of the proposed Fiscal Year (FY) 2021 Audit Plan.
(See Attachment 2)   

Mr. Lisitano stated currently the four audits in process are
1 Fire and Medical for transport services and billing,
2 Engineering for Construction Manager at Risk (CMAR) projects,
3 Engineering for Capital Improvement Projects (CIP), and
4.Police for the Photo Safety Program. 
He added the audits are expected to be finished shortly and will be presented at the next Council meeting.

(See Page 3 of Attachment 2) 

Mr. Lisitano explained the new audits for the upcoming year will be looking at the procurement process for Business Services/Purchasing
(See Page 4 of Attachment 2)
> . . . Lisitano highlighted the audit for the Police Department to ensure effective controls are in place to manage City building suite access to prevent unauthorized access to City facilities. 
> He explained the audit pertaining to Falcon Field leases will be to determine whether effective controls are in place to ensure revenues are accurately calculated, recorded, and collected to prevent or detect errs, fraud, waste or abuse. 
> He pointed out the largest revenue sources for Falcon Field are the hangar rentals and land leases. 
> He reported the Fleet audit is to make sure effective controls are in place over parts management, ensuring compliance with policies and other applicable requirements. 
(See Page 5 of Attachment 2)   

Mr. Lisitano stated follow-up reviews will be conducted for:
> the jail services contract for the Police Department,

> the Convention Center revenues for PRCF,

> the claims administration contract for Human Resources/Employee Benefits,
 
> the Transient Lodging Tax. 
(See Page 6 of Attachment 2)    
 
Mr. Lisitano indicated other Audit activities include the Citywide cash handling audits and PCI DSS review that occur every year, although some things will change due to the fact that many collection sites are closed;
fraud and ethics hotline investigations;

consulting; and unscheduled audits requested by the City Manager or City Council. 
(See Page 7 of Attachment 2)  

In response to a question from Committee member Luna regarding whether there are enough staff to handle the workload, Mr. Lisitano indicated he is always willing to accept more staff.  He mentioned there have been no layoffs in the Audit Department; however, there is one open position that has not been filled. 
He commented that he scaled back on the number of audits in the proposed audit plan to ensure staff will be able to catch up.     



Committee member Freeman requested a presentation on future bond payments that the City could possibly pay off early.    
Deputy City Manager and Chief Financial Officer Michael Kennington agreed to present a future agenda item that targets the possibility of refunding outstanding bonds.
In response to a question posed by Chairperson Duff, Mr. Kennington clarified refunding would include bonds that have a higher rate than what is available in the market today. 
He mentioned currently there are several 2010 issuances that are callable. 
He verified a future presentation can be presented to the committee.  

Chairperson Duff thanked staff for the presentation. 
In [sic It) was moved by Committee member Luna, seconded by Committee member Freeman that the proposed Audit Plan for 2020/2021 be forwarded to the full Council for discussion and consideration.

Committee member Freeman asked for an update on how the decrease in sales tax revenue has impacted the City over the last year.   
Mr. Kennington stated he would supply an update.   _________________________________________________________________________











 

OZones + QOFs

Let's start off by stating that these two subjects are complicated. It's not a short easy read. Readers will need to set aside a considerable amount of time to get acquainted with both.
Readers of this blog know there havw multiple posts published here and are encouraged to use the convenient Search Box to search for both official information and points-of-view 

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Opportunity Zones Frequently Asked Questions | Internal ...

www.irs.gov › credits-deductions › opportunity-zones-f...

www.irs.gov › credits-deductions › opportunity-zones-f... 
Cached

Opportunity Zones are economically-distressed communities that may qualify ... Designated Qualified Opportunity Zones ... Qualified Opportunity Funds (QOF) ...

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2 days The Rose Law Group Reporter published a reprint from Realtor Magazine 08.26.2020

Federal agencies asked to consider move into opportunity zones;

Dan Gauthier, RLG transactional attorney handling many opportunity zone investments, comments

Posted by Staff  /  August 28, 2020  /  No Comments

"President Donald Trump signed an executive order this week (24 August 2020) for federal agencies to prioritize moving their offices to opportunity zones, low-income areas flagged for revitalization. The executive order could prompt some federal agencies, such as the Department of Labor and Department of Housing and Urban Development, to relocate their offices to designated census tracts under the federal opportunity zones program, The Real Deal reports.
All federal agencies will be asked to stop prioritizing city centers and central business districts when considering new offices and instead explore relocating to a designated opportunity zone.
COMMENTS:
"Should federal agencies carry out President Trump’s order to prioritize relocation into qualified opportunity zones, there may be ancillary development opportunities (housing, for example), spurring more long-term investment in opportunity zones.”
– Daniel Gauthier, Rose Law Group Transactional Attorney

MESA OPPORTUNITY ZONES
Mesa Opportunity Zone Investment Prospectus
2 are outside of the Central Business District
Official information Go here > https://www.selectmesa.com/business-environment/incentives-programs/opportunity-zones/mesa-opportunity-zone-investment-prospectus
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Opportunity Zones Frequently Asked Questions

https://www.irs.gov/credits-deductions/opportunity-zones-frequently-asked-questions

irs.gov |

The following questions and answers (Q&As) were prepared in response to inquiries that have been proposed to the IRS.  They are intended to provide a basic understanding and awareness of Opportunity Zones.
These Q&As do not constitute legal authority and may not be relied upon as such.  They do not amend, modify or add to the Income Tax Regulations or any other legal authority.   

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LISC: Our take on the census and the racial wealth gap

An Accurate Census Count is Imperative for America. 

Here’s Why.

Matt Josephs, LISC SVP and head of the organization’s policy team, makes the urgent case for why a fair and accurate census count is so important for the health and wellbeing of our communities. 

Anything short of that undermines equity and thwarts our democratic process. Every one of us, he writes, has a role to play in making sure the census is successful.

 

 

Read More

Respond to the 2020 census online.
How to respond by phone or mail.

 

 

 

Dismantling Structural Racism in Community Development Finance

In an opinion piece for ImpactAlpha, LISC COO Annie Donovan draws on the expertise she honed as head of the CDFI Fund to illustrate the layered ways that BIPOC community development entities are locked out of federal tax credit allocations and other resources. More [+]

Breaking Down the Barriers to Health Equity: Q&A with La Tasha Barnwell

LISC Emerging Leaders Council member La Tasha Barnwell describes her work in public health and the imperative of a holistic strategy for closing the racial wealth gap. More [+]

Federal Reserve Bank of San Francisco > Strengthening Financial Health in Times of Crisis

An update from Community Development at the SF Fed​

Here we are in August 2020. The coronavirus remains a threat to our physical and economic health, racial injustice continues to roil our nation, and across the country, storms and other climate impacts pose additional threats to our collective safety and well-being. In communities across California, we’re grappling with a jarring start to fire season, which brings both destructive flames and oppressive, far-reaching smoke and ash. (As I write this, my car is packed with my family’s irreplaceable items, some food and water, and for the first time, a bag filled with masks, sanitizer, and a host of cleaning supplies.) As we remain vigilant in our efforts to curb a variety of crises, we must also continue to center our most vulnerable populations when building solutions. Our Community Development team at the SF Fed is committed to just that. Here's what we've been up to: Strengthening Financial Health in Times of Crisis COVID-19 makes it clearer than ever that inclusion in the financial system is critical for households and businesses to access timely relief funds. Distributing funds at scale, however, presents numerous challenges, including issues related to technology and communication. To explore what it takes to have an inclusive financial system, Laura Choi sat down with Leigh Phillips, CEO of SaverLife, for aconversation on leveraging fintech, data, and strategic partnerships to strengthen financial health in times of crisis. Nonprofits Face Real Estate Pressures in the LA Region Nonprofit organizations provide critical services for low-income communities, communities of color, and the LGBTQ community, particularly in times of crisis. Our new report, based on a survey and interviews conducted by Elizabeth Mattiuzziand Eileen Hodge, finds that many nonprofits in the Los Angeles region faced displacement pressures going into the pandemic due to the high cost of renting or purchasing operating space. Pathways to Racial Economic Justice Opportunity Alliance Nevada is hosting the “Pathways to Racial Economic Justice Series” to discuss the racial wealth divide in Nevada from a national and state perspective. Joselyn Cousins and Bina Shrimali contributed perspectives to two foundational sessions: Joselyn spoke about the racial wealth gap, and Bina discussed health disparities by race and place. Check out the full series here.  And with the recent reminders that climate risk remains a very real threat, revisit our issue of Community Development Innovation Review edited by Ian Galloway to explorestrategies to address climate change risk in lower-income communities. Finally, it's always a good time to reread the Racial Equity Primer by Bina Shrimali. With every read (and I've read it a lot), I become more equipped to engage in productive conversations about race, and I find new ways to apply the learnings. I hope you will too. Thank you for reading and for your shared commitment to our communities. Stay safe, Laurel Gourd Communications Specialist for Community Development Federal Reserve Bank of San Francisco   MORE FOR YOU   ICYMI: Virtual Events with Mary Daly SF Fed President Mary C. Daly was a panelist on the Oakland Rotary Club's Under the Magnifying Glass: Inequity and COVID-19. You can watch the recording here. And last week, we launched The New Future of Work, a discussion series exploring what’s next for the workplace once the pandemic is behind us. The first session explores the tensions between employers and employees facing dynamic work environments and offers insights into the needs and desires of our future workforce.      Two Tales of Changes in Retail Banking A new issue of Consumer & Community Context from the Federal Reserve Board examines the implications of faster payments for cash-flow-constrained consumers and explores the emergence of online-only subsidiaries of traditional brick-and-mortar banks.     Main Street Lending Program The Federal Reserve Main Street Lending Program keeps credit flowing to small and mid-sized businesses and nonprofit organizations that were in sound financial condition before the coronavirus pandemic but now need financing to maintain operations. Looking for more information? Ready to apply for a loan? Interested in registering as a lender? Visit the Main Street Lending Program website for answers to your questions, program updates, and resources for borrowers and lenders.     SF Fed COVID-19 Resource Hub Our resource hub makes it easy to find information about Fed actions and guidance in response to COVID-19 and related resources from the San Francisco Fed.

NEWS FROM MESA ARTIST CHRISTINE CASSANO: Virtual Studio Visit + Tour

This is about as close-and-personal it is possible to get in these passing six disruptive months and ongoing Pandemic Days. 

Thanks to the artist - a friend now at arms-length - for sending along a special pleasure.
Tim

"Hello and I hope this email finds you safe and healthy during these strangest and challenging days. 

It's been a full year  since I've sent out an update and so much has happened including the short film below. 

It feels strange sending out emails about art when there are so many critical issues impacting the world right now, but I was recently reminded by several people sharing the arts (visual, poetry, music, dance & theatre) is what's critically needed to lift spirits these days. 

My hope is the contents here uplift your day a bit. It does mine when I read, see or hear what other creatives are up to. I do miss seeing so many of you and very much look forward to when we can connect with one another in person again. 

If you'd like, reply to let me know what you've been up to or put me on your mailing list; I'd love to hear from you. 

Til' next...Warm regards,
Christine Cassano 

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__________________________________________________________________________________ VIDEO EMS Legacy Films is a continuing series of short films produced by EMS on artists and exhibitions. Learn more about EMS Art Scene. Sampson's (cat) debut & why this video feels full circle for me... back in 2012 my work was exploring synergies between biological and technological systems. Copper motherboards with their conductive, multi-layered coding, systems and functions became a fixture of the work as I examined the inner-world of body systems following several major surgeries. As my health restored, the fascination expanded and the work transitioned. My exploration of these circuit patterns broadened to survey their shared systems beyond biologies in to geometries, ecology, aviation charts, NASA satellite views of earth's civilization and space exploration. Two years ago I became obsessed with documenting aerial views of human patterns and grids from my window seats during flights and those will finally be part of an exhibit that has been rescheduled for this January. From the inner-world of our tiny cells to outer-world of our expansive universe, circuitry has been the binding agent - the conduit - enabling my artwork to evolve and visualize my interpretations of shared connections between humanness, technology and cosmology. I like to think it's traversing these connections that makes sharing our journey on this rock an interesting and beautiful ride to be on. Upcoming Exhibit. January's exhibit at Tempe Center for the Arts Gallery is a group exhibition titled "Explore" and looks at space exploration and the cross over metaphors it represents such as human curiosity, pushing known and unknown boundaries. Upcoming Public Art.  It's an honor to have been the artist selected for this project in downtown Phoenix. I'm currently working on a large suspended ceiling art installation for one of the lobbys of Wexford's Biomedical Campus to be installed this fall.  Updates to follow soon. Phoenix Biomedical Campus Innovation Center is a 226,000 square-foot research and office building. Last fall I installed my site specific copper wall installation at an AC Hotel in San Francisco. Details and images on website. This project opportunity was courtesy of Jude Smith.  During the last year, I've been busy in the studio. The website has been updated with new works and images. As always, thanks for keeping in touch and feel free to share this email, drop me a line and / or connect with me via social media links below.

Fox News: "They've Done An Excellent Job In Arizona"

Media Manipulation sent right from The Governor's Office 

Fox News: "They've Done An Excellent Job In Arizona"

View the full video online

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From Fox & Friends: ICYMI: HUD Secretary Ben Carson Discusses the Unifying Power of Opportunity Zones on Fox and Friends First

In Case You Missed It 

HUD Secretary Ben Carson Discusses the Unifying Power of Opportunity Zones on Fox and Friends First

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U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson told  Fox and Friends First Hosts Jillian Mele and Tom Piro that Opportunity Zones- like many of President Trump’s accomplishments- are a unifying force, one that contrasts the current state of unrest in many democrat-run cities. 

[CLICK HERE TO WATCH THE INTERVIEW]

Highlights: 

The American Dream: 

“You have to put forth the effort to achieve whatever it is that your dream is. And all of us need to make sure we put in place those ladders of opportunity that allow that to happen. And that’s what’s going on now with the Opportunity Zones.”

Opportunity Zone Successes:  

“[opportunity zones] are already providing job opportunities. Just designating a place an opportunity zone increases the property value by 1.1% . For the half of people who live in opportunity zones who own homes, that worth has gone up by $11 billion already. This is the type of thing the President is trying to do- a rising tide lifts and floats all boats. That’s what we’re talking about.”

Violence in Cities: 

“People need to recognize that when these people come into their communities from the outside and destroy things, those are not your friends. They are not people who are actually helping you. They are actually destroying your opportunities.”

Restoring Law and Order: 

“We need to have law and order. It’s important for people to feel safe in their neighborhoods, safe in their businesses, who is going to start a business in a place that is going to be burned down by rioters with nobody doing anything about it? This is antithetical to the whole concept of individual freedoms, entrepreneurship, and innovation in this country, and if we don’t stop it it is going to continue to magnify.”    

American Prosperity: 

“This is an opportunity for us all to thrive and survive, not listening to the purveyors of hatred and division, which will destroy this country if we listen to them.”