Ojai City Council votes to hire Kroll for forensic financial examination

The Ojai City Council voted unanimously in a special session to award a contract to Kroll to conduct a special forensic financial examination after the city disclosed allegations involving former assistant city manager Carl Alameda.

City staff presented four proposals and recommended Kroll. Mr. Arby, a city staff member who introduced the item, said the firms interviewed were all qualified but recommended Kroll based on its proposed approach and team. Ms. Billings, the city’s interim finance director, told the council she was “particularly impressed with the director who graduated valedictorian from Quantico” and said Kroll demonstrated an understanding of the city’s small size and where its weaknesses could be.

The forensic examination differs from the city’s annual audit, staff said. Ms. Billings explained the regular audit provides “a level of reasonableness” about whether the financial statements are fairly presented but does not look for deliberate alterations to records. “The forensic investigation will be more focused on the types of things that someone could alter,” she said, listing examples such as altered vendor payees, invoicing that is diverted to a private account, or altered pay amounts.

Staff told the council the firms estimated about 120 to 160 days to deliver a final report if the work begins on June 1; firms also proposed an initial Phase 1 review with an estimated cost of $25,000 to $30,000 and additional phases to be scoped and priced only if Phase 1 identifies further work. Ms. Billings said the city’s regular audit was current through February 2024 and that bank reconciliations were up to date, but emphasized a forensic review can still reveal issues that routine audits do not detect. She also said the city carries insurance that would cover loss up to a certain, unspecified limit if wrongdoing were found.

Public commenters urged a thorough review and broader coordination. Larry Steingold, an Ojai resident, urged investigators to review emails and to trace any suspicious payments dating back to Alameda’s hiring. A Zoom commenter using the name Starchild asked whether the city would be able to recover funds if theft is found and whether the review would look for co-conspirators. Jeffrey Starkweather, a former federal public defender, urged the council to examine hiring and oversight practices that allowed an allegedly implicated employee to be hired; he called for a “forensic personnel or management audit” to understand how the hiring proceeded while prior investigations were apparently underway. Renee Roth, a resident, said she had exchanged emails with Alameda about reserve fund balances and wanted the forensic review to check whether excess reserves were transferred according to the city’s reserve policy.

Council discussion touched on outreach to other agencies. City staff said they would approach the Los Angeles County District Attorney’s Office and the City of La Cañada (as referenced in the meeting) for information about parallel investigations and would ask Chief Jenkins to contact Los Angeles County Sheriff’s Department contacts because La Cañada relies on the sheriff for policing. Staff also said forensic investigators typically interview current and former employees and would follow investigator recommendations on who to contact.

Council member Roy moved to follow staff’s recommendation and award the contract to Kroll; the motion was seconded. The council approved the contract by roll call: Mayor Gilman—yes; Mayor Pro Tem Lang—yes; Council member Meng—yes; Council member Whitman—yes. The council recorded the action as approved. Staff said Kroll (or the selected firm) would update the council as the work progresses and that deeper phases would require additional authorization if warranted.

Votes at a glance Award contract to Kroll for a special forensic financial examination (Phase 1 estimated $25,000–$30,000; Phase 2/3 TBD; estimated 120–160 days to final report if work begins June 1) Motion: Award contract to Kroll (mover: Council member Roy; second: not specified) Vote: Approved (Mayor Gilman—yes; Mayor Pro Tem Lang—yes; Council member Meng—yes; Council member Whitman—yes)

Next steps noted by staff included initiating Phase 1, coordinating with the Los Angeles County District Attorney’s Office and the City of La Cañada for any parallel findings, and reporting interim updates to the council as the forensic review proceeds.