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Critics of Sacramento Mayor Kevin Johnson are raising concerns over a consulting firm’s ability to conduct an objective audit of the Community Development Department. But City Auditor Jorge Oseguera said Tuesday that Sacramento firm Sjoberg Evashenk Consulting Inc. does not have a conflict of interest.

Oseguera will ask the City Council on Thursday to hire Sjoberg to conduct the audit. Some of Johnson’s critics pointed out in comments on The Sacramento Press that Sjoberg has worked with the law group Bell, McAndrews and Hiltachk. That group's managing partner, Thomas Hiltachk, wrote the strong mayor initiative.

Johnson would have obtained more authority from the initiative, which was struck down by Sacramento County Superior Court in January.

In their comments, Johnson critics Marion Millin and Rhonda Erwin urged residents to ask their representatives on the City Council to reject Sjoberg for the auditing job.

“I sent my letter to my council member and I also sent it to additional council members,” wrote community activist Erwin. “I've asked each to read — in full — your comments and how a vote for this firm for the CDD Audit is more than concerning.”

Oseguera said he read the comments and then spoke with Kurt Sjoberg and Marianne Evashenk about the concerns that were raised.

“I thought it would be prudent to follow up and make sure everything was in order,” he said in an interview Tuesday.

Sjoberg and Evashenk said their work for Hiltachk’s law firm was completed several years ago -- before Hiltachk worked with Johnson on the strong mayor initiative -- and was not related to it, according to Oseguera.

Johnson spokesman Joaquin McPeek said the hiring of the third-party auditing firm will be conducted openly. "Fortunately for the city, this will be a very transparent, open and accountable process."

Sjoberg declined comment on the concerns that were raised, saying that questions should be directed to Oseguera.

He did say, however, that the last time his firm worked for Bell, McAndrews and Hiltachk was in 2004.

Kathleen Haley is a staff reporter for The Sacramento Press.

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April 20, 2010 | 9:15 PM
This is about a lot more than Kevin Johnson.
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edited on  April 21, 2010 | 11:15 AM
Why use an outside consultant? Thought we just hired a City Auditor?
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edited on  April 21, 2010 | 12:51 PM
YoYo that's a real good question. I know I'd like to know the answer. Heck, if we just hired a city auditor and if they can't be trusted to perform the task then it seems we are throwing good money after bad.--and that too is concerning.

I'm really glad people aren't distracted by the "critics" lol and equally glad people aren't afraid of being wounded ( perhaps unfairly labeled an unfair critic of Johnson's) and will come near a battlefield-- lol--- to raise even more questions and concerns. Thank you for sharing your comment.
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April 21, 2010 | 2:16 PM
You're absolutely right! We had competent staff ON staff ALREADY to examine the operations apparatus of city government, but KJ *insisted* on a 'separate pair of eyes' no doubt to ramrod changes that would advantage his backers...

Now it appears that we're slated to add another million or two to an already bulging deficit in order to accommodate this expense that SHOULD, if bias is not a part of the calculus, result in a similar disposition...

MY concern is that it appears that there is already a taint to both the selection of the outside firm AND in the new 'independent auditor' who GLARINGLY dismissed the potential conflict between the outside firm and KJ's SMI drafter, Tom Hiltchak -- and frankly, I don't buy claims that the firms disassociated in 2004... I'd suggest this merits PROVING that there is no continuing relationship, especially since the Bell, McAndrews firm is at THE TOP of the audit firm's list of clients......

This whole thing smells like another big mess by KJ... But will the council have the guts to counter yet another potential exposure and slight of hand by this mayor....
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April 20, 2010 | 11:58 PM
Question: Are you using critic meaning: someone who expresses a reasoned judgment of something or critic as someone who frequently finds fault or makes harsh and unfair judgments ?

I know lots of folks who finds faults in Johnson since he's done lots of faulty things. Neither myself or Marion passes unfair judgments. We are fair. And if any comment is made considered harsh well you can't drain blood from a turnip and perhaps we simply tell it like it is;

But more importantly I agree with Marion and this is about more than Johnson.
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April 21, 2010 | 9:06 AM
SacPress did pick up on requests in the original article's comments that the matter be on the front page. I was suggesting that one of the people commenting write something; others requested SacPress do it. So here we have it, with some additional questions/comments that need to be addressed.

The lead in and selective representation of you and I is inaccurate and misleading. Any attempt to reduce this to being about Johnson is shortsighted. The questions of conflicts of interest regarding the selection of the audit firm are connected to the bigger picture.

This is about the culture of politics and development in Sacramento. If, as 5thGenSac suggests, the departmental name change means that previous years' activities may not be included in the audit, this is another dog and pony show.


http://www.sacramentopress.com/headline/24948/City_Council_may_hire_firm_for_CDD_audit_Thursday


Marion Millin:
This info needs to be on the front page


Rhonda Erwin:
I agree this info does need to be on the front page!!!


Rhonda Erwin:
Again thanks to each of you for the VALUABLE info. I sent my letter to my council member and I also sent it to additional council members. I've asked each to read-- in full-- your comments and how a vote for this firm for the CDD Audit is more than concerning..... Thanks so much for the heads up and your determination to provide transparency to city government. Kudo's to each of you.


Marion Millin:
eComment to City Council has been moved off the main page. Here is all contact info and links to eComment.

To leave eComment for City Council, Go to:
http://www.cityofsacramento.org/
> Under "Sacramento City Council," click "Council Agendas and Meetings"
> Under "UPCOMING MEETINGS," note Agenda and click "eComment."

Link directly to public eComment form:
http://sacramento.granicus.com/core/events/public/ecommentsform.aspx?guid=15432aae-32fc-102c-b291-2f582cd39e9e

Council Contact info
http://www.cityofsacramento.org/council/index.html

.................................................
http://www.sacramentopress.com/headline/24948/City_Council_may_hire_firm_for_CDD_audit_Thursday

bbbbmer:
Is it not possible to find a firm to conduct these services that is not tainted by this potential to corrupt audit outcomes??? SURELY there are many competent people to perform these services without having to find only a selection that has this obvious marker.....

FifthGenerationSacramento
2) CDD Community Development Dept. only came into fiscal being this last year beginning with July 1st, 2009 & had significant changes to it from the previous DSD . Prior to that we had the DSD Development Services dept....which is the dept that most of all the brouhaha has been about...not CDD. So, when writing the RFP for this audit, is the scope to include DSD and CDD inclusively or only CDD exclusively. CDD may not be the Pandora's box that DSD appears to be.

.........

3) What are we getting for ~ $66K....another reorganization recommendation for this new department or an actual forensic audit of the past 3-5 years? The price seems pretty low for a forensic audit!
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edited on  April 21, 2010 | 9:46 AM
Marion, I absolutely agree, the lead in and selective representation of you and I is inaccurate and not what the story should have been about. It shouldn't be the meat or potatoes of the story. The information provided by others was valuable and should have been the focus. I noticed recently from other news outlets... comments written anonymously are generally not printed. You can't verify the person who wrote it. I respect that having seen the comments/propaganda of kerryjustin 1 on the Bee and other sites. I respect and value bbbbmer and the comments of many others who unravel deceit and trickery with knowledge and truth. that I sometimes only simply agree with after reading what they know/ share. But I can understand and appreciate the media not having a double standard. If they print the anonymous comments opposing a subject or heck opposing Johnson they'd have to print the anonymous comments supporting a subject or heck praising Johnson and that's a darkness I wouldn't want to see. ..I understand why it was you and I mentioned in the article because it was you and I who gave our real names and could be verified and you and I who they could tie to the story to bring it out and put on the front page.. I absolutely agree the lead in is inaccurate and misleading......and the comments/ concerns raised by others was and is of far greater value than you saying it should be on the front page and me simply agreeing. I think if bbbbmer, fifthgensacramentan.... and others who provided the info gave their names you and I wouldn't have been mentioned--which is what I wish had occured since the label "critic" can downplay any wrongdoings....And the meat/ potatoes and gravy is the valuable info shared by those who commented, unfortunately in this case anonymously.
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April 21, 2010 | 2:18 PM
Marion,

I would agree with you, but I believe the two issues are equally valid -- both process AND association with Johnson. I would dispute your claim that seems to dismiss the latter.
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April 21, 2010 | 2:56 PM
What "claim that seems to dismiss the latter"? Not sure what claim that would be.

"The lead in and selective representation of you and I is inaccurate and misleading. Any attempt to reduce this to being about Johnson is shortsighted." It might be clearer if I said "to being ONLY about Johnson"?

What seemed dismissive to me was the term "Johnson critics" used to identify two of us, while claiming that the questions and concerns -- from the other discussion -- have been answered.

"The questions of conflicts of interest regarding the selection of the audit firm are connected to the bigger picture."
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edited on  April 21, 2010 | 1:03 AM
Questions, Questions and more Questions?



http://www.cityofsacramento.org/generalservices/procurement/bid-results/2010.cfm

1) Under Community Development Audit- opened 2/18/2010-Bid Response-Not yet available...yet numerous other bids for a variety of projects and services, rec'd much later have the evaluations already listed....What's up with that?

Community Development Department (CDD) Program Audit

(P100310001)

(Bids Received)
Contact Mark Prestwich
Opened 2/18/2010

Rid Responses-Not Yet Available-yet we supposedly have a winning bid???


2) CDD Community Development Dept. only came into fiscal being this last year beginning with July 1st, 2009 & had significant changes to it from the previous DSD . Prior to that we had the DSD Development Services dept....which is the dept that most of all the brouhaha has been about...not CDD. So, when writing the RFP for this audit, is the scope to include DSD and CDD inclusively or only CDD exclusively. CDD may not be the Pandora's box that DSD appears to be.

Our former auditor, Marty Kolkin, wanted to audit DSD for several years prior to his abrupt departure to Santa Monica....So are the practices of the prior DSD part of this audit...and if so will former staff be part of the review?

3) What are we getting for ~ $66K....another reorganization recommendation for this new department or an actual forensic audit of the past 3-5 years? The price seems pretty low for a forensic audit!

4) So where is the actual RFP and who wrote it? I don't see it with the staff report, nor do I see the bid evaluation sheets.. maybe I'll need to go back and watch the audit committee testimony, to get a clearer picture of whats being proposed

February staff report for Audit Committe
http://sacramento.granicus.com/MetaViewer.php?view_id=23&clip_id=2195&meta_id=191110


March Audit Comm. staff report
http://sacramento.granicus.com/MetaViewer.php?view_id=23&clip_id=2225&meta_id=193142



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April 21, 2010 | 6:53 AM
I wonder if this process was deliberately opaqued in order to keep the public off the scent of one smelly deal...

Based on the candidate firm's prior relationship with Hiltchak and the current listing of the firm among their clients, AND the obtuse RFP process, something's wrong with this picture...

And I don't trust Steve Cohn, and the members of the audit cmte as far as I could throw them... Something is up with this, and I hope one of the more honorable council members will attempt to find out just what it is before this engagement is ramrodded through....
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April 21, 2010 | 8:43 AM
"I wonder if this process was deliberately opaqued in order to keep the public off the scent of one smelly deal..."

This is a twist:

from FifthGenSacramentan:
2) CDD Community Development Dept. only came into fiscal being this last year beginning with July 1st, 2009 & had significant changes to it from the previous DSD . Prior to that we had the DSD Development Services dept....which is the dept that most of all the brouhaha has been about...not CDD. So, when writing the RFP for this audit, is the scope to include DSD and CDD inclusively or only CDD exclusively. CDD may not be the Pandora's box that DSD appears to be.
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April 21, 2010 | 8:56 AM
fifthgensacramentan and bbbbmer: Thank you for information you provided. fifthgensacramentan your follow up questions also deserve answers. You are a light. Bbbbmer as always you shed light on what's done in the dark. You can turn on a light in the darkness. Light can take away darkness. But darkness can never take away the light. Thank you for giving us a light, more questions and more answers. I don't have the answers heck I didn't even have the questions but I take pride in finding my way to the light. THANK YOU and KUDO'S
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April 21, 2010 | 9:12 AM
Hi Fifthgen,

City auditor Jorge Oseguera sent me the request for proposals (RFP) for the Community Development Department audit when I was covering a separate story earlier this month. I just uploaded the RFP onto Scribd. You can read the RFP here:
http://www.scribd.com/doc/30292011/CDDAuditRFP-1

Cheers,

Kathleen
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April 21, 2010 | 2:27 AM
I'm sorry, but whether the firm's relationship ended in 2004 is immaterial -- the potential for continuation at any time remains, and the relationship is implicit by their prominent listing on their firm's website -- there is an obvious intent to represent that the firms are connected.

Is it not possible to find a firm to conduct these services that is not tainted by this potential to corrupt audit outcomes??? SURELY there are many competent people to perform these services without having to find only a selection that has this obvious marker.....

Why is it that every attempt to find unbiased services seems thrwarted by those who seek outcomes that could be predetermined by those who seek to undermine this process????

THIS IS JUST PLAIN WRONG!
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April 21, 2010 | 9:03 AM
AGREED! You have a right to not give your name and I respect you without ever knowing who you are. But girlfriend if you ever give your name people better watch out because I think you'd be quoted in every paper. Because you stand firm, take no mess, and are knowledgable on so much happening in Sac.ramento. Heck, all I can say is carry on!!!!
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edited on  April 21, 2010 | 2:42 PM
LOL -- I already AM quoted in small town venues... and on radio shows, apparently, though I just don't 'do' the AM dial.... and among certain politicos, apparently....

What's odd is I'm only a part-time Sacramentan -- I spend most of my time in the city (SF)... But I was born/raised in Sac, vote in Sac, and I still have a home there which I *ABSOLUTELY LOVE*, and I'm sorry to see this cabal of not very nice people take over the city's governance given the kinder gentler path of predecessors like Phil Isenberg, Bob Matsui, Anne Rudin, Debby Ortiz, and Heather Fargo...

I'm just as ardent about SF politics, but I *THOROUGHLY* admire Gavin Newsom, two friends on his commissions, and a friend on the Board of Sups...

I should think more people should be every bit as concerned about these issues and SPEAK UP about them...

But this insidiousness in Sac is beyond the pale.... and I'm going to do everything I can address the confluence and deluge of issues that keep arising at their hands....

I believe this is just part of being a good citizen -- even as unpleasant as addressing these things, and as ascerbic as my addresses can be, can be....

Take care Rhonda -- you're ACES!
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April 21, 2010 | 8:18 AM
Shocked that this story was written. I expect more from Sacramento Press.
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edited on  April 21, 2010 | 9:13 AM
Why would you be shocked? I think the public should see more of these types of stories. (Granted the first time I read it, I thought careful what you ask for - LOL - since Marion said it should be on the front page and I agreed. And it was put on the front page and both our comments included. in an article basically saying there's no fault... Not to mention we're reference as critics. But heck Sacramento Press called a spade a spade- I am a critic of Johnson's because my first impulse was to write 'And we expect more of Johnson" ) This type of article should be written for several reasons 1) The concerns listed. 2) bring awareness the public is watching, commenting to concerns, mobilizing in efforts when concerned and perhaps awaken a spirit in others 3) Let officials know concerns are heard, received...by the media 4) Since their is little transparency and lots of trickery going on since Johnson took office 5) allows us to even step back and take a look at ourselves...and how others could possibly see us 6). If Sacramento Press is truly about citizen journalism and giving the community input it should write this type of story including the citicens of this city. Heck the list goes on on why this type of story should be written.

I am sometimes shocked by lots of things but I am not shocked by your comment- and I have grown not to expect much more from you---LOL
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April 21, 2010 | 9:14 AM
See Rhonda, that's the problem with making it sound like this is about Johnson... his BROTHER is going to be SHOCKED that THIS STORY was WRITTEN. SHOCKED, I tell you!! lol

We expect more from Sacramento Press. We appreciate the opportunities that it provides, for airing stories that are not EVER told by local media.

We expect more from local government -- will this audit be impartial, complete and serve the community or will it be politicized, compromised and serve the people who have been gaming the system for too long?
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April 21, 2010 | 10:22 AM
Oh, don't get me wrong, I do agree with you it could have and should have been written with an inventory of the concerns.... since it allows Johnson's brother and others to do damage control...

We expect more and are deserving of more- after all it's been a long time coming. Don't give the people a voice and then snatch it back from them by adding insult (critic) to injury (concerns such as bbbbmer states, "potential to corrupt audit outcomes." The people have every right to feel wounded by past and current elected officials judgment.... and undeserving for our motives to be questioned when elected officials have proven to be deserving of our concerns with their consistent behavior of hiring and seeking bias audits and outcomes and inability to often seek unbias audits/ outcomes.
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April 21, 2010 | 2:28 PM
Yep bro, you SHOULD be shocked... I'm surprised you weren't equally SHOCKED at revelations about your brother's alleged 'night life'...
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April 21, 2010 | 1:32 PM
Thanks Kathleen for looking into this further. I am not shocked this story was written mostly because the last time an outside firm was to be considered for the audit, it was none other than Alvarez and Marsal- an east coast firm handpicked by Kevin. The firm also dangled the word, "free" around. What was in it for them, I wonder? Kevins's fiancee, Michelle Rhee and DC mayor Adrian Fenty, and many other strong mayor cities used this firm when it came to mayoral takeover of schools. I suspect that the firm was presented because the powers that be wanted a pre-determined outcome. It is imperative that the firm chosen does not have ANY relationship with the people in charge. Especially here, where our mayor re-uses those in his incestuous circle time and time again.
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edited on  April 21, 2010 | 2:06 PM
I love your comment Susie! Yes, heck it does appear our mayor does recycle...lol those in his circle. Again, I am sending all the comments to several council members and the links to the info provided. Hopefully they will see that a fool rush in where wise men fear to trade and at least take the time to look into the information you, marion, fifthgeneration, bbbbmer and YoYo posted.
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April 21, 2010 | 2:32 PM
Hi Susie!

"It is imperative...".... It certainly is! And despite claims that the audit firm has had no current affiliation with Bell law since 2004, I would hope the council will ask to see proof of this, especially since the reference to Bell is so prominently featured at the TOP of the audit firm's website...

I should think it imperative that NO such relationship exist, and that such past relationship SHOULD HAVE BEEN DISCLOSED by the council's audit commitee AND by the new 'independent auditor'.... No disclosure was made about this VERY OBVIOUS potential conflict.... THIS lack of disclosure in itself is cause for concern....
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April 22, 2010 | 11:49 AM
The only reason to use a private contractor to do audits is to alleviate the concerns of the public about possible conflicts of interest within the city government. If any possible conflict exists between the private auditing firm and city officials, even if it's only perceived, makes the whole thing a waste of money.

Thanks to Marion, Rhonda, Fifth gen, bbbbeamer, Fly, and Suzie for your constant vigilance in your never ending battle for truth, justice, and transparency in government. The entire city owes you a debt of gratitude.
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April 22, 2010 | 12:08 PM
You're sweet! Thank you!
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edited on  April 22, 2010 | 1:47 PM
SteviewGee: You brought up a very good point!! Thank you!!

Heck, if the private contractor doesn't alleviate concerns but adds to them WHY the heck don't they use the city auditor? Why throw good money that the city doesn't have into this firm when their could be possible conflict and many won't trust it's worth anyway....?? Why the heck did they hire a city auditor, provide a salary for a city auditor IF they will have to turn around and pay for OUTSIDE consultants and audits???? Heck I'm all for oversight committees, but at some point when will they get it right ? Heck they hire folks to watch folks on the inside and then have the need to hire folks to watch folks from the outside, it should be one or the other- the city isn't rolling in dough and not in a position to pay for an inside -city auditor and fork out dough for an outside audit/ consulting firm when they don't want to use the inside city auditor. Gheez they are paying a salary to the city auditor? What's with the double dippin?????. gheezzzz isn't the city broke? How many Park and Rec jobs could have been saved if we had a need for less audits.....Heck, with Johnson in office the city will have to continuously spend time and money double checking all the associates, affiliates, partners....double spending hiring folks on the outside to watch folks on the inside.

Thank you so much for the kind words. Again, I really appreciate your comment it made me think even deeper about this. Your comment is appreciated!!
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April 25, 2010 | 3:40 AM
Rhonda,

How you derrrnng!...

I hope to heck you don't permanently retire from civic activities -- you make city council meetings ROCK!

Take care & ciao!
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April 25, 2010 | 3:37 AM
Too bad this wasn't posted to the front page BEFORE the vote...
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edited on  April 25, 2010 | 3:39 PM
Too bad The Powers That Be want this to all go away, all the nasties slink back under the rock. It's amazing/disgusting the level of muck that can be considered Business As Usual --- EVEN WHEN IT'S EXPOSED AND "INVESTIGATED." We are still livin' in the Wild West and they want to call it "World Class."

from the Target discussion:
Recent years of illegal and quasi-legal development practices in the city of Sacramento and under the City of Sacramento resulted in: rapid departure of two key players, current investigations, restructuring and renaming of the Development Services Department, new interim City Manager, new director of renamed DDS, the upcoming audit of that department and exposure of corruption in Natomas building permitting, the FPP process and unpaid developers' fees. Oh yeah: and the similarly squirrelly Buzz Box deal with the "nefarious" Nestle corporation to bottle and sell American River water.
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April 25, 2010 | 4:45 PM
A reasonably prudent person might infer that there's a strategy of sorts going on:

First, to 'Republicanize' our city government, with DINO's (KJ) and out an out teabaggers (Ashby), to serve masters that just don't want to have to answer to the REAL people;

and Second, to siphon off city assets during this economic bump to corporate interests seeking a far more sinister dominance, like Nestle, ultimately to 'privatize' city infrastructure, including the basics, like water...

I find both of these prospects repugnant, and I hope that the more people put down their television remotes and engage in what is happening they will cast the lot of these people and their strategies into the dustbin of history...

These interests/strategies rely on a public that is asleep, either content with the status quo, or so caught up in surviving that any spare moment must be for much needed decompression -- both sets of which are fed by appeasing politicos dosing the public with bright shiny objects and/or figurative heroin like this arena build and its 'three card monty' sucker list 'deal', or mouthing words about 'greening' with no intention of acting upon it.
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