Ojai City Council Special Meeting

Special Forensic Financial Examination

• Staff recommended firm Kroll following interviews with four qualified candidates.
• The investigation focuses on potential financial alterations and staff interviews rather than annual reporting.
• Council inquiries addressed project timelines, estimated costs, and coordination with outside agencies.
• The Council voted to approve the recommendation and award the contract to Kroll.

• The City of Ojai Council convened a special session to address a Special Forensic Financial Examination.

Agenda and Opening

• The session began with a roll call confirming the presence of Mayor Gilman, Mayor Pro Tem Lang, Council Members Rule, Whitman, and Mang. Following the Pledge of Allegiance, Mayor Pro Tem Lang moved to approve the special session agenda. The motion was seconded and approved without objection.

Forensic Financial Examination

• Staff, including Mr. Harvey and Interim Finance Director Ms. Billings, presented information regarding the selection of a firm to conduct the examination. The examination is intended to follow findings of charges against former assistant city manager Carl Alameda. Staff interviewed four qualified firms. Ms. Billings recommended the firm Kroll, noting that while all four firms were reputable and qualified, Kroll demonstrated a better grasp of the agency's specific needs and size.
• Ms. Billings distinguished between the annual comprehensive financial report and the forensic investigation. She explained that the annual audit provides assurance that financial statements are fairly presented, whereas a forensic audit focuses on potential alterations, such as altered payees or unrecorded transactions, and includes staff interviews.

Council Inquiries

• Council members asked several questions regarding the process:
• Timeline: Staff estimated a final report would be available in 120 to 160 days, with updates provided along the way.
• Cost: Council Member Rule noted the estimated cost for Phase 1 was between $25,000 and $30,000, with Phase 2 and Phase 3 costs to be determined based on findings. Staff confirmed that additional charges would apply if a deeper investigation was required.
• Coordination: Staff stated they plan to contact the LA County District Attorney’s Office and the City of La Cañada-Flintridge regarding prior investigations, though those records are currently confidential.
• Insurance: Staff noted that insurance coverage exists up to a certain point for the city and employees.

Public Comment

• Five members of the public provided comments during the open forum:
• Mr. Larry Steingold suggested the investigation look back two years and review emails and insurance company contacts. He questioned whether previous issues, such as those involving former employee Pam Greer, were addressed.
• Mr. Jeffrey Starkweather, identifying as a federal public defender, raised concerns about the hiring process and the lack of prior background checks given Alameda's investigation status. He recommended reviewing personnel management processes to prevent future issues.
• Ms. Renee Roth stated she had professional interactions with Mr. Alameda but raised questions regarding reserve fund balances and their transfer to capital improvement projects.
• Mr. Starchild, participating via Zoom, questioned the cost-effectiveness of the audit relative to potential recovery of funds and requested the audit check for co-conspirators, including Transportation Director Anthony Palacios.
• Council Member Whitman (identified as SPEAKER_11 in transcript during public comment period, though likely Council Member Rule based on context of subsequent questions) inquired about the depth of the forensic review.

Motion and Vote

• Council Member Rule moved to follow the Finance Director's recommendation and award the contract to Kroll. The motion was seconded. A roll call vote was conducted with the following outcome:
• Mayor Pro Tem Lang: Aye
• Council Member Mang: Aye
• Council Member Whitman: Aye
• Mayor Gilman: Aye
• Council Member Rule: Aye
• The contract was awarded to Kroll.

Adjournment

• Mayor Gilman announced the conclusion of the special session. The Council scheduled a 30-minute break before resuming the regular session.