08-16-2022 CC RPT 26 - Laserfiche WebLink

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City Council Memorandum City °JArts &Innovation TO: HONORABLE MAYOR AND CITY COUNCIL DATE: AUGUST 16, 2022 FROM: CITY MANAGER'S OFFICE CITY ATTORNEY'S OFFICE WARDS: ALL SUBJECT: UPDATE ON INVESTIGATION OF CITY OF RIVERSIDE PARTICIPATION IN THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY ISSUE: Consider expenditures and services to investigate Respondent's assertions related to the City of Riverside's participation in the Southern California Public Power Authority. RECOMMENDATIONS: That the City Council: 1. Receive and discuss expenditures and services proposed to investigate Respondent's assertions related to the City of Riverside's participation in the Southern California Public Power Authority; 2. Determine whether to retain forensic accounting services, reporting directly to City Council, to investigate Respondent's assertions within a date range as determined by City Council for an estimated cost of $105,000; 3. Determine whether to retain outside counsel, reporting directly to City Council, to investigate Respondent's assertions within a date range as determined by City Council for an estimated cost of $20,000; and 4. Provide direction to the City Attorney and City Manager on discussion items identified in this report. BACKGROUND: On March 13, 2019, a request was made by Councilmember Conder during the City's Finance Committee meeting for the City of Riverside to conduct a complete and independent outside audit of the Southern California Public Power Authority (SCPPA), including the formation of SCPPA and its original charter, past audits conducted by the Internal Audit Department, a thorough determination as to signature authority and approval for SCPPA contracts, and transactions between RPU and SCPPA as far back as can be reasonably accomplished.