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ADOPTION OF A RESOLUTION WAIVING ANY PRIVILEGES APPLICABLE TO THE OPTIC/BUDGET INVESTIGATION REPORT
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RECOMMENDATION
Consider adopting a resolution to waive any privileges applicable to the Audit Committee-directed investigation regarding the budget authorization for the Office of Performance Data Analytics and the restructuring and utilization of authorized funding for the Office of Public Transparency Information Communications, subject to applicable redactions to protect personnel and personal privacy rights.
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Summary
On August 4, 2025, the Audit Committee directed the City Attorney’s Office to retain outside counsel to investigate the budget authorization for the Office of Performance Data Analytics and the restructuring and utilization of authorized funding for the Office of Public Transparency Information Communications. On July 7, 2026, the City Council directed staff to agendize an item for the City Council to consider waiving any privileges applicable to the full investigation report. In accordance with Council direction, this item has been placed on the agenda for the City Council to consider adopting a resolution to waive any privileges applicable to the report and the contents thereof, subject to applicable redactions to protect personnel and personal privacy rights.
DISCUSSION
Background
On August 4, 2025, the Audit Committee passed Motion 2025-08-04-040 directing the investigation of the FY 2025-2026 budget submission relating to the budget authorization for the Office of Performance Data Analytics to and the restructuring and utilization of authorized funding to the Office of Public Transparency Information Communications and Motion 2025-08-04-040-01 directing the City Attorney’s Office to retain outside counsel and authorizing use of necessary financial experts in conducting that investigation.
Following the completion of the investigation, on April 20, 2026, the investigators presented the investigation findings to the Committee as reflected in the Executive Summary of the Confidential Investigation Report (Attachment A). The Committee unanimously approved Motion 2026-04-20-0302 to forward the report to the City Council for a presentation to the full body and for a potential waiver of any privileges applicable to the full confidential report.
On July 7, 2026, the City Council determined that it did not want a presentation from the outside investigators but directed staff to agendize an item for the City Council to consider waiving any privileges applicable to the full investigation report, subject to applicable redactions to protect personnel and personal privacy rights.
Present Situation
In accordance with City Council direction, this item has been placed on the agenda for the Council to consider adopting a resolution to waive any privileges applicable to the full investigation report regarding and the contents thereof, subject to applicable redactions to protect personnel and personal privacy rights.
Attorney-Client Privilege
Attorney-Client Privilege is codified under state law at Evidence Code section 954. This privilege ensures that clients receive accurate and competent legal advice by encouraging full disclosure to their attorney without fear that information will be revealed to others. For public entities, the holder of the privilege is the organization acting through its highest authorized officer, employee, or body in any given situation. As the holder of the privilege, the Council has the authority to waive the privilege.
Closed Session
The League of California Cities provides a comprehensive guide which pares down the key components of the Brown Act. At its essence, the Brown Act takes a strong stance in favor of open meetings but carves out important exceptions expressly authorized under the Brown Act. Closed Sessions are allowed only for specified statutory topics. Generally, closed session conversations amongst the Council ensure full and frank discussion on often sensitive topics. The Brown Act allows waiver by the City Council under Government Code section 54963(a).
FINANCIAL SUMMARY
The total cost for the Audit Committee-authorized investigation was $75,437.22.
The City Council has also directed staff to agendize an item for the City Council to consider waiving any privileges applicable the invoices for Council-authorized investigations. Accordingly, that item and the details of the invoices for the Audit Committee-authorized investigation will be brought to a future meeting as appropriate.
Attachment A - Executive Summary of the Confidential Investigation Report