City of Napa*

(Compliance with Maximus Report) The City of Napa CDD lacks sufficient, specific written policies and procedures. In addition to written departmental goals and objectives, written comprehensive job descriptions for each position are needed. City Response to Finding 1: The City agrees that clear and concise written polices and operating procedures are the foundation for efficient business practices. Policies and procedures are part of continuous improvement mechanisms and the City concurs that updates and in some instances further development of such policies and procedures are needed. The efforts of City staff in conjunction with the Development Advisory Committee (DAC) over the last year have been fruitful. Two key work products are close to completion: new Streets and Roads Standards and updates to the Design Guidelines and its procedures. Numerous CDD policy documents and some procedures are available on the City's website.

(Quality of Service) The City of Napa has recognized and is working with the DAC. City response to Finding 2: The City agrees with this finding.

(Staff Project Billing via Trakit) The Trakit software program has potential to be useful for managing and processing project applications for CDD. It can also serve to document the staff hours actually applied to the various projects and relate them to the Department's billings. Ongoing review and correction on the part of CDD management is crucial for the successful implementation of this costly software. Response to Finding 3: The City agrees with this finding.

(Consultant Billing) Charges by consultants are often not itemized, and thus there is no verifiable relationship between the work performed and the amount billed. Response to Finding 4: The City agrees with this finding. Some consultant invoices recently reviewed by staff over the past several months reflect itemized accounting that identify the project being worked on, the task performed, and time spent by date, however, some have not included all of this information.

(Accounting of Prior CDD Revenue/Expense) The audit recommended by the 2005-06 Grand Jury has not been performed City Response to Finding 5: The City respectfully disagrees with this Finding. A detailed independent audit from 2000 to present of project-related revenues and expenditures is cost prohibitive and would draw on limited staff resources. However an audit for fiscal year 2006-2007 is underway. In the course of an annual independent audit, randomly selected revenue and expenditure testing occurs to ensure that revenues and expenditures are materially correct, including posting to the proper accounts. Additionally, as part of the current annual audit, City management has requested that the independent auditor specifically test fee calculations generated from the Trakit software system during fiscal year 2006-07 and confirm revenues are posting to the appropriate funds (i.e., project consultant, staff and overhead cost recoveries post to the General Fund, Street Impact Fees post to the Development Impact Fund for future street projects, Water Connection Fees post to the Water Enterprise Fund for future expansion, etc.)