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Cloud Call Center Community Featured Article

TMCNet: Roberts exceeded spending limit: OK'd contract that never went to City Council for approval

[March 29, 2009]

Roberts exceeded spending limit: OK'd contract that never went to City Council for approval

(Daily Press (Victorville, CA) Via Acquire Media NewsEdge) Mar. 29--VICTORVILLE --Former City Manager Jon Roberts apparently overstepped his spending authority by at least $99,905, approving a pricey contract for legal services that never went to the City Council for approval.


Roberts signed a contract with Washington, D.C.-based firm Hogan & Hartson on July 24 for work on the city's EB-5 program, giving green cards to foreign investors. His is the only signature on the contract, signing three times in his role as city manager and as executive director of Southern California Logistics Airport and the city's Redevelopment Agency.

At the time Roberts was authorized by the council to independently sign contracts for up to $125,000 under the city's municipal code.

However, he didn't place a limit on the Hogan & Hartson contract and the city has paid the firm $138,768 to date, according to spokeswoman Yvonne Hester. Two more invoices totaling $86,137 have yet to be paid and officials suspect more invoices are still coming.

Reached in Steamboat Springs, Colo. on Friday, Roberts said he didn't recall that the city had its own contract with Hogan & Hartson -- though he said he'd have to check in with City Attorney Andre de Bortnowsky.

" M y re co l l e c t i o n ," Roberts said, "is Hogan & Hartson's work for the city was through Inland Energy." During an overlapping time period, the city also paid the firm $10.5 million -- as much as $282,000 last October alone -- as a subcontractor through Inland Energy for work on the Victorville 2 power plant, acco rd i n g t o In l a n d invoices.

Roberts called back Friday night and said he did recall the city's contract with Hogan & Hartson, but said it was the finance department's responsibility to make sure the spending didn't surpass his $125,000 limit.

Howeve r t h e o u t -- standing invoices for the contract are in the city manager's office as usual, waiting for Interim M a n age r Ji m C ox 's approval to be paid.

C o u n c i l m a n Te r r y Caldwell -- mayor at the t i m e t h e c o n t ra c t was signed -- said he was aware that the city contracted for services with Hogan & Hartson. However he said he's never seen the contract and couldn't remember whether it had come before the council for approval or was signed by Roberts alone.

Caldwell also said he was not aware of the fact that the costs for the contract were so high, though he believes those costs are justified for the expertise the firm provides.

"When you contract with somebody for ... professional services, you never really know for sure what the costs will be," Caldwell said. "It will vary on a month-tomonth basis." When asked if the cost overruns and implications that Roberts went beyond the powers of his office concern Caldwell he said, "Probably not." He explained that he thought Roberts was authorized to sign for up to $250,000 and that it will be worth it if the city is able to start an EB-5 investor program.

Cox said the Hogan & Hartson contract would definitely be reviewed and may or may not be renegotiated, along with most city contracts.

To see more of the Daily Press, or to subscribe to the newspaper, go to http://www.vvdailypress.com.

Copyright (c) 2009, Daily Press, Victorville, Calif.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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