CC 2017-02-14_12c Agreement_Investigation
MEMORANDUM
TO: CITY COUNCIL
FROM: ROBERT MCFALL, INTERIM CITY MANAGER
HEATHER K. WHITHAM, CITY ATTORNEY
SUBJECT: CONSIDERATION OF: 1) APPROVAL OF AN INVESTIGATION INTO
ALLEGATIONS AGAINST THE MAYOR OF MISCONDUCT; 2)
RETENTION OF LIEBERT CASSIDY WHITMORE TO CONDUCT AN
INDEPENDENT INVESTIGATION AND DEVELOP FINDINGS OF FACT
AND RECOMMENDATIONS, 3) APPROPRIATION OF $15,000 FROM THE
UNAPPROPRIATED FUND BALANCE FOR THE INVESTIGATION, AND 4)
AUTHORIZATION FOR THE INTERIM CITY MANAGER TO ENTER INTO
AN AGREEMENT FOR THE INVESTIGATIVE SERVICES IN A FORM
APPROVED BY THE CITY ATTORNEY
DATE: FEBRUARY 14, 2017
RECOMMENDATION:
It is recommended the City Council consider: 1) approval of an investigation into allegations
made by members of the public against the Mayor of misconduct; 2) retention of Liebert
Cassidy Whitmore to conduct an independent investigation and develop findings of fact and
recommendations; 3) appropriation of $15,000 from the unappropriated fund balance as
payment for the investigation, and 4) authorization for the Interim City Manager to enter into
an agreement for the investigative services in a form approved by the City Attorney.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The cost of an investigation by an independent investigator, including the services to be
provided by Liebert Cassidy Whitmore (“LCW”), is estimated to be between $10,000 and
$15,000.
BACKGROUND:
At the January 24, 2017 City Council meeting, members of the public raised concerns
regarding actions by the Mayor as both presiding officer of the Arroyo Grande City Council
and related to his service as the City’s representative on the South San Luis Obispo County
Sanitation District (“Sanitation District”) Board of Directors. The comments made refer to
allegations of potential Brown Act violations for allegedly disclosing confidential information
from a closed session to a person not entitled to receive the information, separate
allegations of disclosing to third parties the contents of confidential documents, improper
unilateral actions and potential interference with the administration of the City and the
Sanitation District.
Item 12.c. - Page 1
CONSIDERATION OF RETENTION OF AN OUTSIDE FIRM TO CONDUCT AN INDEPENDENT
INVESTIGATION INTO ALLEGATIONS OF MISCONDUCT AGAINST THE MAYOR
FEBRUARY 14, 2017
PAGE 2
The Interim City Manager has performed an initial review of the allegations. The City has
also reached out to the law firm of LCW, which specializes in public agency personnel
matters and independent investigations of this type. In discussing the results of the initial
review with attorneys from LCW, it is their opinion that sufficient information exists to
warrant an independent investigation.
ANALYSIS OF ISSUES:
While the City could perform an investigation of the allegations internally, staff doesn’t
believe such an approach would be in the best interests of the City. LCW further indicated
that in instances such as this that involve allegations against a public figure, it is considered
a best practice to utilize an independent outside investigator, properly trained and
experienced in such investigations. It is critical that the investigation be performed by
someone who is viewed by all as credible, objective and impartial. LCW is highly regarded
in matters such as this, and the City has had previous successful experiences with the firm
on other matters. The investigator would conduct an investigation, including interviewing
witnesses and reviewing documents, and then prepare a written report with findings of fact.
LCW would then review the findings of fact and prepare legal conclusions and
recommendations. A non-attorney investigator generally charges $125 an hour. Using a
non-attorney investigator, LCW has provided a rough estimate for the entire investigation of
$10,000 to $15,000 and it would be accomplished over a period of approximately four to six
weeks.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Direct the Interim City Manager to retain the services of LCW to arrange for and
oversee an independent investigation; or
2. Provide other direction to staff;
ADVANTAGES:
Conducting an investigation will shed light on the allegations that have been raised by the
public. Retaining the services of LCW to arrange and oversee the independent investigation
will help ensure that a fair and impartial investigation is performed.
DISADVANTAGES:
Retaining the services of LCW to arrange and oversee the independent investigation will
have an associated cost.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 12.c. - Page 2