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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.
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.
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....
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.
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!
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.
"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."
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
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....
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.
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
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!
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!
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
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?
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.
"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....
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.
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!!
How you derrrnng!...
I hope to heck you don't permanently retire from civic activities -- you make city council meetings ROCK!
Take care & ciao!
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.
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.