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  JANUARY 2005   
  911 audit
  Annual financial report
  Viewpoint: cameras
  Viewpoint: Safe Clear
  Money Matters

    Controller's
     TV show

    
    
Money Matters:

      2 and 8 a.m.
      2 and 8 p.m.
         Mondays,
     Municipal Channel
     January - Safe Clear

     
  
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  Controller's Office to audit  911 center

The City Controller's Office will audit the troubled 911 system in conjunction with an outside technical analysis to ensure that a comprehensive audit is performed.

The office will contract with one of its outside accounting firms to begin auditing the Houston Emergency Center in February. The audit will complement the City Council-approved MITRE technical analysis already underway.

"While MITRE analyzes technical issues, we'll audit other important areas, such as personnel, management, costs and processes," City Controller Annise Parker explained. "HEC has never lived up to its billing as a state-of-the-art emergency dispatch center."

City Council recently approved spending $162,185 to hire MITRE, a nonprofit systems engineering company affiliated with MIT, to solve computer problems that have hampered 911 operations.

In November, voters overwhelmingly approved Proposition 3, giving the city controller authority to conduct audits, including comprehensive performance audits, without seeking mayoral approval. The office is already conducting a performance review of the mayor's after school program and plans similar audits of the 311 system and the Fire Department's Life Safety Division.

Each year the Controller's Office budgets $320,000 for outside audits to supplement the work of its 11-member Audit Division.



    Financial report contains few red flags

Independent auditors raised two red flags in the latest Comprehensive Annual Financial Report (CAFR), although the flags don't rise to the level of material weaknesses.

The management letter highlights problems with housing loans and citywide fixed assets accounting in the FY04 report prepared by the City Controller's Office. CAFR

"This financial report shows that the city has made great strides in financial management," City Controller Annise Parker said. "The Controller's Office is already working with departments to take the next CAFR to an even higher level."

Housing loan problems

The city controller first reported problems with  the Housing and Community Development Department's loan accounting several months ago. Since then the administration has directed the accounting firm of Jefferson Wells International to perform a performance audit of department  operations. The Controller's Office Financial Reporting Division will provide Jefferson Wells with pertinent information obtained during CAFR preparation. HUD is also reviewing the home repair and down payment assistance programs.

Auditors also were concerned about coordination of fixed asset transactions. This stems from two issues. The first one involves the inability of one of the city's two fixed asset systems to track depreciation adequately. All fixed asset data is being transferred to the city's second fixed asset system as a temporary fix.  A new financial management system,  currently under evaluation, should solve this problem.

The second issue involves a lack of coordination in getting certain fixed assets into the city’s systems. While this issue impacts a number of departments, the most significant issues involve Public Works. The Controller’s Office Financial Reporting Division will work with both Public Works and Finance and Administration to improve this coordination.

According to the CAFR, the general fund ended FY04 about $6.3 million over budget due to an unanticipated one-time correction to the compensated absence report. The correction was necessary because previous CAFRs did not include all employees when calculating general fund liability for vacation, sick leave and comp time run at year's end.  

Net assets decrease

The city’s net assets decreased by $313 million in FY04. The net assets are the city’s total assets minus any liabilities. The two most identifiable reasons for the decrease were settlement of the Vela case on firefighter overtime ($72 million) and $121 million in pension liability. Pension liability is based on a look back at what the city should have been paying into the system based on actuarial assumptions. It is not a look forward at the city’s long-term pension liability.

"I would like to commend the hard work of Deputy City Controller Susan Bandy, the employees of the Controller's Financial Reporting Division, independent auditors from Deloitte & Touche and many other city employees in other departments," the city controller said.

This is the first CAFR produced during Controller Parker's tenure. 

 

RED LIGHTS, CAMERAS, ACTION!   

      What else can stop dangerous Houston drivers?
        
    Council

    meetings

 
  City Council
     Public Session
     Tuesday 2 p.m.
     Call:
     713-247-1840
     to get on the
     speakers' list.

    Business session
    Wednesday 9 a.m.

As I slow for a fading yellow light, the Mustang beside me races through the intersection as the light turns red. The Lexus behind me speeds up as it darts around me. By the time the light turns green, my blood pressure has dropped slightly and my survival instinct forces me to glance to the left and right.
___________________________
VIEWPOINT ___ City Controller Annise Parker

Houston drivers, good, bad and uninsured, pay the state’s highest auto insurance rates. We crash vehicles at 1½ times the national average and cause 5,000 serious red light accidents every year.

I don’t know of any city that can afford to pay police officers to watch the most dangerous intersections often enough to prevent many of the 1,000+ deaths and 150,000 injuries caused by red light violations in this country.
redlightcampaign

Despite this, drivers in about 107 other US cities are learning to stop at lights. Statistics show red light infractions have dropped about 40% at certain intersections. How could this happen? Costly sting operations? Public awareness campaigns?

Although widely used in Europe since the 1970s, video cameras didn’t catch a US red light runner until New York installed them in 1993. Vendors normally provide and maintain the systems in exchange for a percent of ticket revenues or a flat fee.

Video cameras at red lights have proven to be highly effective. Houston officials do not want you to get a ticket running a red light. Keep your $75. The city just wants people to stop running them. That’s why the city will post warning signs about cameras at covered intersections.

What alternative do critics suggest? I’m the last person to encourage Big Brother. But privacy issues in a public intersection? Cameras only photograph license plates in intersections with red lights. It would be a civil penalty ($75 vs. $215 for criminal) since Texas cities don’t have the right to use cameras at intersections to enforce criminal statutes.

Some legislators are concerned that cameras will end up mostly in minority communities. That would be wrong and, frankly, counterproductive as the most dangerous intersections are near freeways and major shopping, such as Westheimer and the West Loop. (See the December 2004 Houston-Galveston Area Council safety program presentation at www.h-gac.com/hgac/departments/transportation/Safety/Safety.htm).

This is not a new program. The kinks have been worked out in numerous other cities. Some video camera companies have established track records of issuing appropriate tickets. Unless the state legislature halts it, the program is expected to start this spring.
 

      Safe Clear ordinance needs a tuneup
 

How many times have you been startled by a sea of flashing red lights on the freeway? As you get closer, you see a dozen wreckers on the shoulder.
___________________________
VIEWPOINT ___ City Controller Annise Parker

Fortunately, the controversial Safe Clear program ends that nightmare. Only one wrecker company services each section of freeway. As it stands now, the designated wrecker company is supposed to arrive within six minutes if your car stops in a freeway lane or on the shoulder – actually an emergency lane – and tow the vehicle anywhere you choose. Why six minutes? For starters, it’s estimated that freeway drivers wait five minutes for every minute a car blocks a lane.

Safe Clear wreckers charge $75 (payable by credit card, cash or check) for five miles, with a $1.50 charge for each additional mile. Road services, such as AAA, have agreed to reimburse drivers.
tow truck
So far so good. But there’s been a huge public outcry, especially about the need to hurry up and tow vehicles with minor problems from shoulders and the disproportionate impact on the poor, who usually drive older vehicles.

Compromises

There are several possible compromises. It’s one thing to tow a mechanically disabled vehicle blocking a moving lane of traffic. That’s a public service and a bargain for someone without a road service. But what about forcing someone with a flat tire to pay $75 to be towed off a shoulder 100 yards to the service road so they can change their own tire or call someone?

One solution is to tow any motorist in this situation (or those with easily remedied problems like an empty gas tank) to the service road for free and give them a defined period of time to fix the flat or fill the tank. The city should go ahead and tow vehicles from shoulders that require more extensive SafeClearLogorepair and charge the $75.

The mayor has suggested several modifications, including free short-distance tows and free flat tire repair.  

Six minutes is actually the wrecker deadline and is not supposed to be used to change your own tire on the shoulder. As the program website (www.houstontranstar.org/safeclear/ points out, a motorist does not have the legal right to remain in an emergency lane. It’s not safe. Too many people are injured or killed trying to repair their cars on shoulders.

713-CALL-MAP

Many people probably don’t realize that TranStar’s free MAP vans and trucks (713-CALL-MAP [225-5627] ) patrol freeways to help motorists on the shoulder change a tire or fix minor engine problems, such as jump starts. The deputy sheriffs also provide fuel or water and transport motorists to safe locations.

If   you call MAP and a deputy arrives before the Safe Clear wrecker, the deputy has jurisdiction over the incident “and can if necessary instruct the wrecker to carry on,” according to TranStar. That’s too iffy. We need to better coordinate Safe Clear with MAP (www.hcso.hctx.net/patrol/map/) or merge the two programs.

And what about a driver already changing their own tire on the shoulder when the Safe Clear wrecker arrives? Some wreckers tow them. Some don’t. It’s another glitch that needs work. Payment options also need to be reviewed. Some cities add $1 to car license fees instead of requiring payment on the spot. Towing a car when the driver can’t pay the $75 to a city storage lot, which costs even more, makes no sense.

Perhaps the next ordinance will be fine tuned in council committee before the final council vote.



    Money Matters looks at Safe Clear

This month's Money Matters, hosted by City Controller Annise Parker, spotlights the controversial Safe Clear towing program.

Joe Brashears, director of the Mayor's Office of Mobility, and Jeanette Rash, president of Fast Tow and vice president of the Towing and Recovery Association of America, were interviewed two weeks before the ordinance went into effect.

Money Matters  can be seen at 2 a.m., 8 a.m., 2 p.m. and 8 p.m. Mondays on the Municipal Channel (Warner Cable 16).