Upland council can’t agree on investigator to examine [San Bernardino] grand jury findings

Panel said financial reports were mishandled by city staff

With a grand jury report alleging mishandling of financial reports hanging like a dark cloud, the Upland City Council Monday night, Nov. 23, failed to agree on hiring an investigator to probe the underlying basis for the findings, leaving next steps in doubt.

While Counilman Bill Velto, who is poised to become the city’s next mayor, pushed to hire Redlands-based The Titan Group, he could not get enough votes as the four-person council split 2-2, with he and Councilwoman Janice Elliott voting in favor, and Mayor Debbie Stone and Councilman Rudy Zuniga voting against.

In a Nov. 2 report, the San Bernardino County Civil Grand Jury concluded the city acted improperly by covering over handwritten notations from then-City Treasurer Larry Kinley about unfunded pension liabilities on five treasury reports from January 2019 to June 2019, and not telling the City Council. Once those actions were discovered, the report said the city took no disciplinary actions.

Also, the report said the city administration denied Kinley’s request for a deputy treasurer’s position, something that is permitted by state government code, and that members of the city’s Finance Committee were “confused” about the role of the city treasurer.

On Nov. 9, the council agreed to launch an investigation into the matter. The vote Monday, however, cast that decision into doubt.

 “If we conduct an investigation, we might be able to get some answers,” Velto said. If the city does not do its own investigation, he said, it “looks like once again, we will move forward without finding out what really happened.”

Whether to authorize a third-party investigation and who will conduct it will come before the council again on Dec. 14. At that time, Velto is expected to take over as mayor, Shannan Maust is expected to take the District 1 seat and Carlos Garcia is expected to step into the empty District 3 seat. Stone would be off the council, if current results from the Nov. 3 election hold.

The issue remains up in the air with new members of the City Council coming in. Also, City Manager Rosemary Hoerning will present additional possible vendors from outside San Bernardino County, since Zuniga and Stone said they did not want to hire The Titan Group because they have done work with the Upland Police Department and could not be impartial.

“You need to get someone that is out of the area. You need someone that is independent,” Stone said.

Joie Grimmett, general counsel and senior investigator with the firm, said she and her team could investigate the city’s financial dealings and the 17 grand jury findings without taking sides.

The investigation would cost the city at least $50,000, Hoerning said.

“We are neutral. We have no dog in the fight,” Grimmett told the City Council. But when it was revealed her firm worked on background investigations with Upland police, Zuniga and Stone reacted negatively.

“I’d rather have someone (investigate) who doesn’t know anybody in the city at all, that is not attached to the city in any way,” Zuniga said.

Stone said Velto should allow Hoerning and interim City Attorney Steven Flower to prepare a report and explain what happened before the city spends $50,000 on an investigation. Hoerning said she did nothing wrong.

Lois Sicking Dieter, who ran for mayor was third in the vote tally, said she doesn’t support hiring an investigator.

Former Upland City Treasurer Larry Kinley, during the oath of office ceremony at the Upland City Council meeting, Monday, Dec. 12, 2016. Kinley resigned in August 2020, setting off a grand jury investigation into the role of treasurer and city transparency. (Eric Reed/For The Bulletin/SCNG)

“What authorization do you have to use taxpayer money to conduct another independent analysis? The grand jury has already provided findings and recommendations. It is what it is,” she said Monday night.

In a letter sent to this newspaper dated Nov. 20, Kinley, who resigned over the issue in August, wrote the City Council and city manager “are in denial about the Grand Jury investigation.” He objected to the idea of the city conducting its own investigation, calling it “absurd.”

“I and the residents of Upland can only hope that our District Attorney follows up on the potential criminal activity associated with these actions and files charges against those involved,” Kinley concluded.

Inland Valley Daily Bulletin
By STEVE SCAUZILLO | sscauzillo@scng.com | San Gabriel Valley Tribune
November 24, 2020