Out-of-Scope Assertions Made by Respondent to Call for Written Public Input During Two Follow-Up Interviews Item Category Respondent's Assertions Tasks Non-Action
Item
Action
Item Proposed Action Estimated Fees
1 Forensic
Accounting
The City Council was not approving
energy efficiency contracts prior to
2017. The signatures were actually
being provided by SCPPA.
Interview individuals
signing the approvals. X
Refer to Eide Bailly to
complete forensic review.
10,000$
2 Criminal Allegation The former City Attorney was
allowing fraud to occur by not
speaking out against the spending
limits. This process was shut down
in 2016/2017, which is a de facto
admittance.
Outside the scope of
forensic accounting
services.
X
No action required.
Allegations of crimes have
been referred to the District
Attorney's Office
N/A
3 Previously
Investigated/
Reviewed
City Finance was not doing a proper
review of the payments before they
were going out. This was verified by
the current CFO, who also
postulated that RPU Finance was
rubber stamping approvals of
invoices. It's not clear that RPU
Finance was even reviewing the
resolutions that were listed on the
invoice and payment documents.
Interview current CFO and
others within RPU Finance
and City Finance (current
and former) to understand
process, internal controls,
and review appropriate
documentation, as
necessary.
X
No action required.
Previously investigated in two
RPU and one Finance
Department Audits:
Internal Audit completed June
2018 - reviewed financial
transactions for FY 2014,
2015, and 2016. Audit
resulted in no findings.
External RPU Financial and
Performance Review
completed on May 20, 2016
by Baker Tilly. Audit resulted
in no findings.
External Financial and
Performance Review
completed on June 27, 2016
by Matrix Consulting Group.
Audit resulted in no findings.
N/A
Out-of-Scope Assertions Made by Respondent to Call for Written Public Input During Two Follow-Up Interviews Item Category Respondent's Assertions Tasks Non-Action
Item
Action
Item
Proposed Action Estimated Fees
4 Previously
Investigated/
Reviewed
The SCPPA JPA allows for power and
transmission projects only. The fact
it doesn't specifically disallow other
services does not mean it allows
those services to be procured. A
former City Attorney will confirm
what I am saying is true. The current
City Manager agrees that energy
efficiency, internship, and lobbying
programs are not allowed.
Outside the scope of
forensic accounting
services.
X
No action required.
Previously investigated.
A legal written opinion related
to the SCPPA Joint Powers
Agreement was completed by
Norton Rose Fulbright on April
17, 2019 and included in the
January 11, 2022 City Council
SCPPA Report.
N/A
5 Outside Counsel
Recommended
Outside counsel, or legal opinions
prior to 2015, when I brought up this
issue, should have been obtained.
After that time any staff reports and
legal opinions would be worthless
since it was after my accusation and
these subsequent opinions would be
covering up for past actions.
Outside the scope of
forensic accounting
services.
X
Timeline of allegations maybe
subject to statute of
limitations. If further
investigation is requested,
estimated costs of outside
counsel services are outlined.
Further clarification needed
from Respondent.
20,000$
6 Forensic
Accounting
Most of these other types of services
are being inappropriately billed
through the Palo Verde Contract.
Request from City of
Riverside detailed invoices
and conduct interviews
with Riverside, SCPPA, and
vendors for a sample of
lobbying, internship, and
other services billed
through the Palo Verde
contract.
X
Refer to Eide Bailly to
complete forensic review.
15,000$
Out-of-Scope Assertions Made by Respondent to Call for Written Public Input During Two Follow-Up Interviews Item Category Respondent's Assertions Tasks Non-Action
Item
Action
Item
Proposed Action Estimated Fees
7 Insufficient
Information
Just because something is in the
City's budget doesn't mean it's okay
if it's still not allowed under the
SCPPA JPA. For instance, in that case,
the former General Manager could
have done anything as long as it was
in the budget. Also, the budgets
may have carve-outs for SCPPA-
specific projects.
Outside the scope of
forensic accounting
services.
X
Insufficient information to
identify next steps. Without
complete information a
recommendation cannot be
made.
N/A
8 Insufficient
Information
Staff reports were manipulated by
the former General Manager and
former City Attorney. Just because
the staff reports were received and
filed, does not mean that what they
were doing was okay or that the City
or Council agreed with what was in
them. In addition, there should be a
RPU Board Memo stating that it
approved it before it went to City
Council. There is no sign of proof
from the RPU Board.
Outside the scope of
forensic accounting
services.
X
Insufficient information to
identify next steps. Without
complete information a
recommendation cannot be
made.
N/A
9 Insufficient
Information
The notion that energy efficiency is a
generation resource is "garbage".
Energy efficiency is not a generation
resource, it's not a power plant, it's
not a transmission line.
Outside the scope of
forensic accounting
services.
X
Insufficient information to
identify next steps. Without
complete information a
recommendation cannot be
made.
N/A
10 Previously
Investigated
The author of a 2019 report
questions why human resource
investigations are being run through
SCPPA.
Outside the scope of
forensic accounting
services.
X
report present to City Council
on June 21, 2022 addresses
this assertion.
N/A
Out-of-Scope Assertions Made by Respondent to Call for Written Public Input During Two Follow-Up Interviews Item Category Respondent's Assertions Tasks Non-Action
Item
Action
Item
Proposed Action Estimated Fees
11 Forensic
Accounting
Internships were provided to the
children of two individuals
associated with Riverside and SCPPA
without the internships being posted
to the public and interviews
conducted. These interns hardly
ever showed up to work.
Conduct a review of the
internship program.
Interview current and
former individuals at
SCPPA and City of
Riverside. Obtain
internship program
documents to identify
interns, relationships to
employees, process used
in selection process, and
work done as interns.
X
Refer to Eide Bailly to
complete forensic review.
30,000$
12 Criminal Allegation The prior audit was forged by a
particular individual.
Outside the scope of
forensic accounting
services.
X
No action required.
Allegations of crimes have
been referred to the District
Attorney's Office
N/A
13 Criminal Allegation The LADWP investigation has
revealed that former General
Manager was using family members'
contact information as runners. Not
sure if this was happening at RPU.
Outside the scope of
forensic accounting
services.
X
No action required.
Allegations of crimes have
been referred to the District
Attorney's Office
N/A
14 Insufficient
Information
I was told MBMC was called in to
write policy on procurement systems
related to resource adequacy, which
is not true.
Interview the individuals
who performed the work
and review the contract
information through
SCPPA
X
Previously addressed on Page
15 of final Eide Bailly report.
N/A
15 SCPPA Request Any SCPPA rate that is more than
$0.19 per kilowatt is overpriced.
Recommend asking SCPPA
to conduct a rate study. X
RPU General Manager may
make a formal request to
SCPPA to conduct a rates
study.
N/A
Out-of-Scope Assertions Made by Respondent to Call for Written Public Input During Two Follow-Up Interviews Item Category Respondent's Assertions Tasks Non-Action
Item
Action
Item
Proposed Action Estimated Fees
16 Forensic
Accounting
Lime Energy was charging $2,000 to
change light bulbs at businesses.
Conduct interviews and
obtain documentation on
Lime Services and
appropriateness of
charges.
X
Refer to Eide Bailly to
complete forensic review.
15,000$
17 Forensic
Accounting
Was SCPPA performing a bidding
process every year of just at the
beginning of the contract or not at
all?
Review SCPPA Board
minutes, bidding
documentation and
conduct interviews to
verify bid process.
X
Refer to Eide Bailly to
complete forensic review.
15,000$
18 Forensic
Accounting
You may want to consider adding to
the scope. It would be good for the
City to see overhead at SCPPA and
how it's grown since 1980. My guess
is we will see rapid expansion of
SCPPA overhead and binning due to
increased scope since the time of the
charter. It would show why SCPPA
would go along with it, since it's like
building kingdoms, in that the more
people the CEO can say is in the
organization and he is overseeing,
the more compensation he gets.
Conduct analysis of SCPPA
overhead expense over
time.
X
Refer to Eide Bailly to
complete forensic review.
20,000$