Fiscal Year 2013-2015 Special Budget Meeting

The City's written response to the finding identified in our audit is described m the Schedule of Recommendations and Responses, We did not audit the City's response and, accordingly, we express no opmion on it. In addition, we have already discussed our comment and recommendation with various City petaoonoW ajid we would be pleased to discuss it in ftirthsr detail at your convenience, to perfotm ai^ additional study of tiiis matter, or to assist you in unplementihg the recommendation. Additionally, we have included in this letter a report on Communications with tiie City Council as required by auditing standards generally accepted in tiid United States of America. This communicfitiion is intetided solely for the information and use of management. City Council, and otlters witiiin the organization, and is not intended to be and should not be used by ai^one other tlun these specified parties. Very truly yours,' MACIAS G M & O'GOIWELL LLP Certified Public Accountants Oakland, California November 25,2009