200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-5094
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: FEBRUARY 28, 2023
FROM: CITY MANAGER’S OFFICE
SUBJECT: INDEPENDENT INVESTIGATION
ATTACHMENT (Y/N): YES ITEM # 24
GOVERNMENT CODE § 84308 APPLIES: YES
ACTION:
That the City Council, discuss and, by Motion, (i) amend or narrow the scope of work of JL Group, LLC; (ii) adjust or affirm the not-to-exceed contract amount with JL Group, LLC (currently at $750,000); (iii) possibly waive JL Group, LLC’s obligation to keep matters confidential to allow communications with the Orange County District Attorney’s Office; and/or (iv) provide any other direction as to the current investigation of former Mayor Harry Sidhu and the City Council regarding campaign contributions and potential Brown Act violations in the context of the facts alleged in the federal investigation.
DISCUSSION:
On August 9, 2022 the City Council selected the JL Group, LLC (JL Group) following a request for proposals to conduct the investigation along with scope of work (see attached).
At the same meeting, Council selected a neutral administrator to oversee the investigation, retired Judge Clay Smith.
On October 25, 2022, an update was provided to the Council by Judge Smith. Since that time, there have been four updates provided to the City Council. Upon review of the December 2022 invoice from the JL Group, staff notified Judge Smith that the not to exceed amount is approaching. Following that notification, Judge Smith requested the City Council discuss the project budget and Judge Smith recommended an increase from $750,000 to $1,500,000. Judge Smith also informed staff that he has authorized the JL Group to continue its work until the budget is resolved by the City Council.
On February 7, 2023, an agenda item was presented to the City Council regarding authorizing a possible increase of the not to exceed contract amount. The City Council continued the item to February 28 and directed the JL Group to return with a refined and narrow scope of work and updated cost information to reflect the refined scope of work.
Following the February 7, 2023 City Council meeting, staff received the following attachments:
i. Anaheim Transmittal of Refined Scope and Proposal Letter ii. JL Group Revised Anaheim Scope of Work
Independent Investigation
February 28, 2023
iii. JL Group Letter to City Manager regarding confidentiality IMPACT ON BUDGET:
The agreement with JL Group has a not to exceed amount of $750,000. To date, the City has received $750,250 in invoices. The City has paid Judge Smith $59,625 to date. It is anticipated his fees will not exceed the $100,000 budget.
Respectfully submitted,
Jim Vanderpool
City Manager
Attachments:
1. Independent Investigation RFP with scope of work
2. JL Group, LLC Agreement
3. Interim Reports No. 1-4
4. JL Group Proposed Scope of Work 10.14.22
5. Anaheim Transmittal of Refined Scope and Proposal Letter 2.16.23
6. JL Group Revised Anaheim Scope of Work 2.16.23
7. JL Group Letter to City Manager dated 2.16.23