To: The Rules Committee From: Gerald A. Silva

City Auditor

Subject: ADDITION TO CITY AUDITOR’S Date: February 2, 2004

WORKPLAN

In December 2003, the City Manager, the Budget Office, and the Fire Department requested the City Auditor’s Office to assist in evaluating whether some of the $2.4 million 2003-04 cost of the Fire Department’s Hazardous Incident Team (HIT) could be recovered through fees charged to permitted facilities. This work was a follow up to an audit report recommendation the City Auditor made in 1993. The initial objectives of our initial follow-up work were to determine:

• How many hazardous incidents the HIT responded to in 2002-03 and the amount of HIT time spent on these incidents

• How many of the hazardous incidents to which the HIT responded and how much HIT time was spent on incidents associated with permitted facilities in 2002-03

• The amount of HIT training, administration, and other time that is associated with permitted facilities

• The amount of the $2.4 million 2003-04 HIT cost that could be reasonably charged to permitted facilities

• If other HIT costs could be reimbursed from those parties that cause hazardous incidents

• If other jurisdictions in Santa Clara County, the State of California, and other parts of the nation recover the costs of their hazardous incident responses.

In completing the requested work, the City Auditor’s Office identified several additional issues that required more staff time. Most notably, the City Auditor Office assessed the HIT’s workload and the four person team that is staffed 24 hours a day, seven days a week to respond to hazardous material incidents.

To complete the above objectives and the resultant additional issues, the City Auditor assigned four staff to ensure that that the information would be available for discussion during this year’s budget process. We have now completed our work.

Because of the significant role the City Auditor’s Office has assumed with this assignment and the amount staff devoted to it, I am requesting that the Rules Committee add our HIT review to the City Auditor’s 2003-04 Audit Workplan.

I will present this memorandum to the Rules Committee on February 11, 2004. If any Committee members require additional information in the interim, please let me know.

Gerald A. Silva

City Auditor