43:35A major point of concern was the handling of the contract with Helix Health and Housing Services, which came under scrutiny for its lack of transparency and consistency in billing practices. The contract, initially set at $465,000 and later increased to approximately $999,650, aimed to provide essential services such as temporary housing and mental health support for individuals experiencing homelessness. The urgency of finalizing the contract led to it being processed through a single-source method, bypassing competitive bidding due to pressing needs at the time.

50:29During the meeting, it was revealed that nearly $933,000 had been paid out by mid-March 2025, with several issues arising from the contracting process. Notably, two invoices totaling $177,462.92 were identified as erroneous due to overlapping service periods, creating confusion and necessitating revised submissions from the vendor. The review highlighted the lack of thoroughness in the city’s invoice review process, resulting in discrepancies and the need for additional documentation to clarify expenses.

01:30:20The Helix contract also faced challenges related to subcontractor services, with approximately $80,000 allocated without formal city approval for the subcontractors’ involvement. This oversight highlighted procedural gaps and the absence of clear guidelines on allowable and unallowable expenses. Advanced payments, totaling $238,000, were made without explicit identification of covered expenses, complicating account reconciliation efforts.

01:06:45In response to these issues, recommendations were made for the city to conduct conflict of interest reviews for single-source contracts and establish clearer guidelines around advanced payments. The need for enhanced documentation standards was emphasized to facilitate easier reconciliation of invoices with supporting documentation. The contracting process itself was scrutinized, with calls for clearer definitions of expenses within contracts and improved tracking and oversight mechanisms.

01:25:56The meeting also explored the broader implications of the city’s contracting practices. Concerns were raised about informal practices impacting professional staff, emphasizing the need for formal controls to support decision-making. The Legislative Auditor’s Office recommended refraining from approving contracts directly from the legislative floor, with assurances from the Mayor to adhere to proposed processes.

01:42:50The City Auditor, Robert Timmerman, presented observations on enterprise risk management, noting the absence of a cohesive framework essential for managing and monitoring risks. He recommended adopting the “Green Book” standards for internal control to enhance oversight and suggested the development of an ordinance for an enterprise risk management framework. Proactive measures, such as site visits to verify contract compliance, were urged to prevent potential pitfalls similar to those seen in past scandals.

37:58In addition to contract management, the meeting addressed budget prioritization and community advocacy, particularly concerning climate control measures. A council member highlighted the financial constraints in addressing high-risk areas like climate control, noting the urgency in preventing power outages and natural disasters. The discussion acknowledged the need for advocacy and prioritization in budget allocations to effectively tackle these challenges.

The performance of the City Auditor’s office was also discussed, with appreciation expressed for the work undertaken amid new government structures. The approval of amendments to the 2025 Risk-Based Integrated Audit Plan proceeded without further questions. Ongoing audit projects were detailed, including investigations into fraud and the evaluation of processes related to third-party software applications.