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City launches fee investigation after employee error


On Dec. 5, Oregon City Community Development Director Tony Konkol reported an error of some city employees failing to collect hundreds of thousands of transportation development charges.

On that same day, City Manager David Frasher requested an investigation with an audit from Local Government Personnel Institute in Salem.

On the advice of an attorney, the city declined to release the LGPI report to this newspaper last week because it includes names and other information about individual employees. The City Commission has read and discussed the report in executive sessions, said Frasher, who began implementing the following administrative steps:

1. Oregon City’s Finance Department will perform random audits of fees charged by the city. This will be an ongoing procedure in addition to annual outside financial report audits.

2. OC’s Community Development Department has implemented a verification protocol that requires such fees to be manually verified and approved. Its procedures will require supervisory approval and documentation of changes to the electronic permitting system.

3. Departments will reconcile and report the status of deferred fees on a monthly basis.

4. Human Resources is conducting a pre-disciplinary investigation, which will be followed by “appropriate disciplinary action” for affected employees.