Tuesday, December 29, 2020

Upland City Council wants future city attorney to look into [San Bernardino County] Grand Jury report

In an about face, the Upland City Council last week decided not to hire a private investigator to dig into a grand jury report accusing the city of deceiving the public and hiding information on city pension debts.

However, the Nov. 2 report issued by the San Bernardino County Civil Grand Jury will remain a thorny issue for several months for the City Council and for City Manager Rosemary Hoerning.

The City Council on Jan. 11 will take up the report’s 16 recommendations for bettering the way the city deals with its finances and being more transparent. One suggestion is to place pension debt reports on the city’s website.

“I’m really nervous this will be brought up again and again if we don’t resolve them,” said Councilwoman Janice Elliott at the  Dec. 14 City Council meeting.

Despite strong pushes by new Mayor Bill Velto at two previous meetings to hire a private firm at a cost of $50,000 to investigate the city, he failed to gain the votes. On Dec. 14, new council members Shannan Maust and Carlos Garcia did not indicate support for the idea.

Instead, Maust suggested the investigation be done once a new city attorney is hired, a process underway. A new city attorney would be impartial and could conduct interviews of current and past city personnel and find out what led to the Grand Jury’s findings, she said.

“There might be a need for disciplinary actions,” she added, hinting that either a city staffer or council member could be called out for wrongdoing. Velto concluded that his earlier calls for a private investigative firm to investigate the city were moot. The entire City Council agreed on the new approach.

“I felt it was better that we complete the hiring of the city attorney and allow that party to conduct an investigation,” Velto said in a Dec. 22 interview. The new city attorney would review the Grand Jury’s 17 findings and 16 recommendations.

“If we are able, to obtain any basis for those findings from the Grand Jury. Then we will allow the city attorney to use that information to conduct an investigation,” Velto said.

Appointing newly elected City Treasurer Greg Bradley as chief investigator was supported by Lois Sicking Dieter, who ran for mayor and came in third, and Albert Pattison, long-time Upland resident.

But Velto said that would place too much of a burden on the new treasurer and was not his role. He said he has spoken with Bradley and has increased the role of city treasurer in city finance discussions and city meetings — issues at the heart of the Grand Jury report.

The Grand Jury found:

• Five times in early 2019, the city covered up a handwritten notation from then Upland City Treasurer Larry Kinley indicating the city had a bill of $112,039,675 in unfunded pension liabilities by removing it from the city’s monthly Treasury Report. Altered reports were filed with the City Clerk and presented to the City Council for approval, but the Council was not made aware of the changes by city staff. In July 2019, the Finance Committee became aware of the altered reports and stopped the practice, but no disciplinary action was taken.

• The witnesses interviewed agreed unanimously that the city’s pension debts “posed both a serious threat and a financial liability to the citizens of the City.” Also, the City Council was not educated on the implications of such a large pension debt.

• The city purposely deceived the public about pension liabilities because it didn’t want the public asking difficult questions. Back in 2016, the city reduced the role of the city treasurer and prevented him from participating in other meetings involving city finances.

Among the Grand Jury recommendations: Any changes to the City Treasury Report after signed, be documented in writing to the city manager, treasurer and mayor; the treasurer should present his report at City Council meetings monthly; all fiduciary duties be restored to the city treasurer; city should support the appointment of a deputy city treasurer; providing training to council members on unfunded pension liabilities; placing Finance Committee meeting minutes and a report on pension liabilities with a 10-year cost projection on the city’s website.

The report’s recommendations must be implemented by the end of March. But the city doesn’t have to do them all.

“It is not required that the city implement the recommendations but state it is going to implement (some) or isn’t going to (implement others) and what its reasons are,” said Interim City Attorney Steven Flower.

San Gabriel Valley Tribune
Inland Valley Daily Bulletin
By STEVE SCAUZILLO
December 28, 2020

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