Depoe Bay council confronts years-long audit delay and readies staff for depositions in litigation

During staff reports on Nov. 12 the council received a detailed update on the city's long-running litigation and its parallel, delayed audit work. Staff reported that discovery production is largely complete and that depositions have been scheduled into December and then February–March for elected officials and staff who were identified in the complaint.

Council members asked the city attorney (through staff) to provide a confidential memo describing possible options, including whether settlement is feasible and what an off-ramp might look like, before the city incurs further litigation expense. Council discussed the costs and noted their desire to be prepared for depositions; staff said attorneys planned to contact council members to prepare them individually.

Separately, councilors raised alarm about the status of the city’s financial audits. One councilor observed, "We're gonna be entering our fifth year without an audit now," and members requested a memo on audit status and next steps. Staff said a concentrated effort has been underway to assemble historical records for discovery and that audit vendors and counsel are coordinating next steps.

The council asked staff to schedule meetings with counsel to review potential settlement options and to provide a written update on the audit timeline and consequences for grant eligibility and bonding. No settlement decision was made at the Nov. 12 meeting.