Contract dispute forces city policy revisions

Despite Grocott's concerns that the council simply didn't follow its own code, it unanimously adopted recommended changes aimed at squelching months of lingering controversy and avoiding future appearances of impropriety.

The city first considered the changes in June after the civil grand jury slapped its hand over its relationship with Public Works Director Parviz Mokhtari.

Mokhtari served for two decades as the director before retiring with full benefits. The very next day, he began work as a consultant in the same position with the exact same duties. Officials did not solicit any other bids before giving Mokhtari Engineering $500,000 in contracts, including the Industrial Road improvements.

While city officials lauded the move as a cost-savings tactic, critics painted it as shady.

Although the jury carries no legal power, its scathing March 31 report sparked an investigation by District Attorney Jim Fox and a city subcommittee on its recommendations.

Despite the city's decision to change how it does business, it still holds that it did nothing wrong by awarding Mokhtari the contracts. Grocott wanted to dissect again the city's actions but City Attorney Bob Lanzone pointed out future procedures are more important.

"We're not here to rehash the grand jury report," Lanzone said. "It's how we can better handle our process in the future."

Based on how other cities and counties operate, the City Council agreed that any consultant must be a completely independent party. City staff is now barred from preparing and submitting proposals. Grocott balked at someone like Mokhtari bidding at all because of a possible unfair advantage.

"What I think is in the best interest of the people of San Carlos is that people who act as department heads concentrate on their jobs," Grocott said.

Councilwomen Inge Tiegel Doherty countered that consultants are not full-time employees intimately involved in the requirements of any particular contract.

Currently, any request for a proposal more than $20,000 must be awarded by the City Council; the threshold was moved up to $50,000 to give the city manager more leeway in purchasing services or equipment.

The council also agreed that all conflict of interest forms filed with the city will be informally reviewed an extra time by the city attorney and city clerk before being forwarded to the Fair Political Practices Committee.

City Manager Mike Garvey suggested not just independently reviewing the city's relationship with Mokhtari but also contracts with the finance director, the city attorney and the planning department to see if cost-savings goals are being met.

In other business, the council agreed to keep the community better informed through public e-newsletters from each member. The newsletters are expected to give members a forum where they can expand on agenda items and offer thoughts on pet projects, said Assistant City Manager Brian Moura.

King said the ongoing debate over artificial turf - an issue that generated more than 3,000 requests to City Hall for information - is a perfect example of how the newsletters can continue discussions past scheduled meetings.

Similar to newsletters already distributed by the city, the new messages will only be sent to residents who sign up for the service. The council will formally adopt the plan at the next meeting after Moura returns with a mock up and a general use policy.

Michelle Durand can be reached by e-mail: michelle@smdailyjournal.com or by phone: (650) 344-5200 ext. 104. What do you think of this story? Send a letter to the editor: letters@smdailyjournal.com.