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CLARIFICATION REGARDING 406 INVESTIGATION INTO DEI FUNDING
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RECOMMENDATION
It is recommended that the City Council clarify whether it will oversee the investigation directly or delegate to one of the following: (1) a council committee; (2) an independent auditor or investigator; or (3) external legal counsel or other experts.
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Summary
Council Policy Manual Chapter 3.14, Charter Section 406 Investigations Procedure, allows the City Council to authorize and conduct investigations into operations, practices, or conduct of City departments and offices (Attachment A). The City Council may oversee authorized 406 investigations directly or delegate oversight to: (1) a council committee; (2) an independent auditor or investigator; or (3) external legal counsel or other experts.
On July 15, 2025, the Vice Mayor asked that the City Council authorize an investigation under Charter Section 406 regarding Diversity Equity and Inclusion (DEI) funding within the City and received majority support of the Council for that investigation. However, the “Oversight Body” for the investigation was not identified.
DISCUSSION
Background
Council Policy Manual Chapter 3.14, Charter Section 406 Investigations Procedure, governs the process for investigations allowed under Charter Section 406. Under subsection 3.14.020(D)(i)(a), the City Council may oversee investigations directly or delegate oversight to: (1) a council committee; (2) an independent auditor or investigator; or (3) external legal counsel or other experts.
Present Situation
On July 15, 2025, the Vice Mayor asked that the City Council authorize an investigation under Charter Section 406 regarding Diversity Equity and Inclusion (DEI) funding and received majority support of the Council for that investigation. However, the “Oversight Body” was not identified.
Staff recommends that the City Council clarify by majority vote whether it will oversee the investigation directly or delegate to one of the following: (1) a council committee; (2) an independent auditor or investigator; or (3) external legal counsel or other experts. Following Council direction, staff will work with the appropriate Oversight Body to begin the investigation.
Financial Summary
There is no financial impact from the direction regarding the Oversight Body for the 406 investigation. There may be future financial impacts connected the subsequent investigation, of which the dollar amount is currently unknown.
Attachment A - Council Policy Manual Chapter 3.14