West Covina council asks staff for report on state controller audit after sustained public calls for review

The West Covina City Council on Tuesday directed city staff to prepare a report on the process and cost of a potential audit by the California State Controller’s Office, following a string of public comments urging a forensic review of city finances and redevelopment actions. The motion, moved by Councilmember Mike Spence and seconded by Councilmember James Toma, passed in a roll-call vote with all members voting aye.

Councilmember Mike Spence opened the item by asking staff to return with details on what an audit by the state controller would involve and how much it would cost. "I would like to go ahead and move this item," Spence said as he offered the motion to instruct staff to prepare the report. The vote followed more than an hour of public comment, much of it calling for outside review after years of litigation and large reserve draws.

The request comes after multiple residents and community members addressed the council earlier in the meeting seeking a state-level review. Royal Brown, who identified himself as a long-time resident, urged the council to request a state audit. Resident Elsie Messman similarly said West Covina needs an audit "to be fair and know what to look for and connect the dots," and cited prior local controversies and litigation costs. Phil Marino, who said he has a finance background, described specific contract and redevelopment concerns and urged the council to authorize an audit that would examine those transactions.

Attorney Christopher Pinto, speaking on behalf of former city employee Deborah Dominguez, told the council that a claim filed on Dominguez’s behalf had been denied in closed session and warned that litigation could follow. City staff earlier reported that the closed-session denial of Dominguez’s claim was recorded as a 4–0–1 vote, with Mayor Hereford not participating in that action.

Council discussion focused on scope and method. Councilmember Corey Warshaw cautioned that "the state doesn't do a full audit. You have to narrow it in scope, and tell them what you want audited," and recommended the council also consider forensic audits by private firms. Mayor Pro Tem Frederick Sykes and others said they supported the request for staff to return with options, costs and recommended scope. City staff indicated they would report back on process, likely scope options (including whether to pursue a state controller audit or a private forensic audit) and estimates of cost.

The meeting record shows the council instructed staff to prepare the requested report; the motion’s final roll call recorded all five members voting in favor.

Votes at a glance - Consent calendar (all items except consent calendar item 11): Approved (motion by Councilmember Corey Warshaw; second by Mayor Pro Tem Frederick Sykes). Roll call: Spence, Sykes, Toma, Warshaw, Hereford — ayes. Outcome: approved. - West Covina Citywide Sewer Service Charge: Council set a public hearing on the method of collection and directed staff to use language that acknowledged "potential fee increases" in the hearing notice; the motion to include the word "potential" passed on a 5–0 vote. Outcome: public hearing set with amended language. - Fiscal year 2014–15 Community Development Block Grant (CDBG) Action Plan: Council approved the action plan as presented. Staff reported "total available resources in the amount of $869,590." Roll-call vote: unanimous. Outcome: approved. - Successor agency consent calendar (items presented; SA 1 pulled): Consent calendar approved by the successor agency board (roll call recorded as ayes). Outcome: approved. - Council instruction to staff to prepare report on state controller audit: Motion (mover: Councilmember Mike Spence; second: Councilmember James Toma). Roll call: unanimous aye. Outcome: staff directed to return with report on process and cost.

Context and next steps The council’s vote does not order an audit; it directs staff to return with information on process options and estimated costs so the council can decide whether to request a state controller audit or pursue a private forensic review and to define the scope and timeframe. Several speakers urged a wide-ranging forensic approach to examine redevelopment transactions and litigation-related spending; some councilmembers emphasized the need to be specific about scope if the city requests a state audit.

Staff and council members also noted practical constraints: the state controller’s office uses criteria to select audits and may decline requests; private forensic audits can be commissioned but typically carry significant cost. City staff said they would outline those trade-offs and provide cost and scope estimates in a future report to the council.

The council’s action follows months and years of litigation, public concern about redevelopment decisions and reserve draws raised during this meeting and in prior public comment. The city attorney reported at the start of the meeting that several items were discussed in closed session, including pending litigation (City of West Covina v. Hosen Imports and two bankruptcy matters) and labor negotiations; there was no reportable action except for the denial of one claim (Debbie Dominguez) in closed session.