CITY OF LAKE ELSINORE'S RESPONSE TO GRAND JURY FINDINGS AND RECOMMENDATIONS

ELSINORE MAGAZINE2 November 21, 2005

Grand Jury Findings #3

3. As of January 1, 2005, Lake Elsinore City Council did not have formal adopted and updated policies and procedures that pertain to the following:

- HWBP (Program terminated January 2005)

- Credit Cards use

- Cell phone use

- Travel Reimbursement

- City Vehicle Benefits

- Car Allowance

- Petty Cash Reimbursement

- Per Diem Rembursement

- Meal Reimbursement

The City's financial division accepted and approved significant discrepancies in the above programs.

City's Response: The City acknowledge this finding and points out that these deficiencies were also identified in the "Benefits Audit" initiated by the City Council. (See Employee Benefits and Reimbursments Audit for year ended June 30, 2004- Exhibit "E" .) ( EM2 readers must go to the office of the City Clerk at City Hall to review Employee Benefits and Reimbursement Audits. And Exhibit "E".)

The City has taken significant steps to update the City Council Policies and the City's Personnel Rules, both of which are under review. A Study Session to review updated policies has been set for September 29, 2005. A list of revised policies will be provided to the Grand Jury under separate cover. See also, Response to Recommendation No. 3. EM2: Response to Recommendation No. 3 will be printed at a later date under "Recommendations".

EM2's Response to the City's RESPONSE: The CITY, did hold a Study Session September 29, 2005, but the City Attorney was late in bringing to the Study Session the revised Policies and City's Personnel Rules. Therefore the citizens missed their opportunity to review the Policies and Personnel Rules before the Study Session convened on the 29th. At the close of the Study Session it was announced by Mayor Magee that other Study Sessions would be held but no other SS have been scheduled to EM2's knowledge. EM2 does not know if the Grand Jury ever received a City's revised copy.

It is both questionable and inconcievable that Councilpersons Genie Kelley, who has served the better of 9 years on the Council, Bob Schiffner, who has serverd the better of 7 years on the council, taking so lightly the spending of Public Funds/Taxdollars for NON PUBLIC BENEFIT. When the point about Resolution 88-1, in concept only, allowed for 6 executive manangement staff members, in the amount of $100 per month but some took lump sums as high as $1000 per reimbursments. SUBMITTING 4 to 5 CASH REIMBURSMENTS in one request which was brought to Kelley's attention. The COUNCIL woman verbally replied in a phone call to a citizen on July of 2004. In which she stated,"We Just decided to give it to them anyway"!!!

Although the two went along with the rest of the Council in voting to pay for The EMPLOYEES BENEFITS and REIMBURSEMENT AUDIT, their comments have always been favorable to the staff. The taking of Public Funds not AUTHORIZED by RESOLUTION 88-1. And no one has ever attempted to recover any of the misused public funds. It just died. And they are all happy ever after except the present City Treasurer, who is still attempting to recover at least some of the wrongfully spent money. He gets no help from the council. Even the Riverside County District Attorney and or DA, have not made any significant effort to recover any of the misused public funds.

EM2 also knows that the POLICIES and PROCEDURES that were already in place had been set down by law and are sufficient.City management nor the City Council have adhered to CITY POLICY. They all just wanted to take the money !!!! Apparently because they felt comfortable in getting away with stealing which amounts to a felony.