The Sacramento City Council’s Tuesday-night discussion made it clear that the investigations of the city’s development department are not over.

Seven council members spoke at length about the Oct. 6 audit, which found that the Community Development Department broke city and state laws. Council members also indicated that they want to claim the money that the department failed to charge developers – a sum of more than $2.3 million, according to the audit. 

Councilman Steve Cohn was absent from the meeting, and Councilman Robbie Waters recused himself from the discussion of the audit’s findings. Waters’ son, Dan, is a former employee of the department who was involved in an earlier investigation of the department. 

The subject of the audit was the department’s work from fiscal years 2007 through 2010. Sacramento firm Sjoberg Evashenk Consulting, Inc. conducted the audit.

“I’m most concerned with making sure this won’t happen again,” Mayor Kevin Johnson said.

The City Council’s auditor, Jorge Oseguera, told the council members that the city attorney’s office will explore whether some of the $2.3 million can be collected. He said he would follow up with the council on that issue.

Councilman Rob Fong said collecting the money is “my No. 1 priority.”

Councilwoman Lauren Hammond said city rules need to apply to all developers equally. The department should not have a culture that allows a “good ol’ boy network,” she also said.

Interim City Manager Gus Vina indicated that disciplinary measures for department employees may be on the table. “As I look at the audit in great detail, I will take whatever disciplinary actions are necessary,” he told the council.

The City Council and city staff also discussed investigations of the department that are still under way.

Sandra Talbott, an attorney with City Attorney Eileen Teichert’s office, said the investigation into allegations of quid pro quo in the department is ongoing. The quid pro quo investigation is distinct from the audit, Talbott said. “It has not been concluded at this point.”

In response to a question from Councilman Ray Tretheway about continuing investigations, Vina said that the California Fair Political Practices Commission has concerns about the department.

In addition, Fong said the City Council should lead its own investigation into the department. He said he considered the audit to be “an important piece” of a City Council investigation.

Fong also said he wanted to explore the role of top managers in the past problems at the department. He did not specify names of current or former city officials in his comment.

“I’d certainly like to know what recourse we have against them, if any,” he said.

Kathleen Haley is a staff reporter for The Sacramento Press. 

Photo by Brandon Darnell.

Kathleen Haley is a staff reporter for The Sacramento Press.