Will Anaheim council pursue audit that could cost more than $2.5 million?

Two months ago, a scandal-struck Anaheim City Council appeared eager to earn back the community’s trust by commissioning an independent audit of campaign contributions and any connections they might have with council actions.

The proposed investigation has a potential price tag of at least $2.5 million, and council members are set to consider Tuesday how much they’re willing to spend.

The council requested the audit following Harry Sidhu’s resignation as mayor in late May. He stepped down after an FBI affidavit filed in court alleged he intended to provide confidential information to Angels Baseball officials to help them in negotiations to buy Angel Stadium.

The affidavit also alleged that in return, Sidhu hoped to solicit $1 million to support his re-election this fall, but it noted there was no evidence Angels officials were aware of the purported quid pro quo.

Sidhu has not been charged with a crime. His attorney has said that a thorough review would reveal Sidhu did not leak city information and his campaign contributions were properly reported and complied with the law.

Amid criticism from angry residents, council members voted in June to seek bids from law firms that could audit council members’ campaign donations and investigate whether any “pay-to-play” favoring those donors took place.

But even after limiting the probe to the campaigns of the former mayor and six sitting council members — early suggestions included looking at several past council members — the council will have to hash out exactly what it wants from whichever firm it might hire.

Based on the four proposals received, City Manager Jim Vanderpool estimated in a report to the council that the probe could cost $1.5 million to $2.5 million; that does not include hiring a neutral party as a liaison to the law firm to avoid any appearance of a conflict of interest, since the actions of some city executive staff may also be subject to the investigation.

One firm that submitted a bid outlined a process that could take up to six months, and another noted in its response: “It is impossible to detail with any precision our approach to the work, as the precise nature of the scope of work is uncertain.”

Two council members said Friday they want to clarify exactly what the audit would include because they’re seeking to balance uncovering any potential malfeasance with responsible use of public dollars.

“I’m fully supportive of an investigation taking place,” Councilman Avelino Valencia said. “I want to make sure that our residents get answers, but I think we need to be mindful of the scope of it and the cost as well.”

Most of the council has taken some flak from the public after news broke of a separate federal investigation — in this case, of former Anaheim Chamber of Commerce CEO Todd Ament, a close Sidhu advisor who pleaded guilty July 1 to several counts of fraud — that included documents alleging a self-described “cabal” of business and political leaders held sway over city policies and actions.

Councilman Steve Faessel said Friday that he wants to discuss what council members expect the investigation to look for and how they’ll pinpoint any actual wrongdoing, as opposed to speculation and innuendo.

“This is important, and we need to take action in order to restore the community’s trust in its City Council; that being said, I’m wondering how broad this is, how deep the investigation goes,” Faessel said.

Councilman Jose Moreno, a critic of what he says is a too-cozy relationship between some city leaders and Anaheim’s biggest business interests, said in a text message Friday that he was out of town and had yet to read the agenda item or look at the bids.

“These costs (for the audit) are a direct result of the corruptive influence of a pay-to-play political culture in our city. A culture that protects the interests of campaign donors and special interests at any cost,” Moreno said.

“I’m hopeful residents and voters in Anaheim keep this in mind as they get inundated with corporate PAC (political action committee) and special interest mailers backing their chosen candidates this November.”

Mayor Pro Tem Trevor O’Neil and councilmembers Jose Diaz and Gloria Ma’ae could not be reached for comment Friday.

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