Malibu Council Votes To Move Forward On Investigations

MALIBU, CA — The Malibu City Council voted Monday night to move forward with two controversial investigations: one into whether Councilmember Bruce Silverstein harassed City Manager Reva Feldman, and another into claims of corruption made by former Councilmember Jefferson Wagner in a sworn affidavit.

The Council voted 3-1, with Silverstein recusing himself, to allow the city’s human resources staff to search for an outside investigator to look into claims made by City Manager Reva Feldman that she was under “constant attack” from Silverstein, and is looking to resign as a result.

A January letter sent by Feldman’s attorney alleged that Silverstein has publicly criticized Feldman’s character and job performance while also making unreasonable demands of her time. Silverstein, who has also filed a formal human resources complaint against Feldman, has disputed these allegations, saying that his actions did not constitute the definition of “harassment,” and his demands have been reasonable. Silverstein has said that it is Feldman’s attempts to work around his requests - which have included thousands of pages worth of documents and copies of phone logs, time records, and attorney-client communications - that have resulted in an undue share of work.

The debate grew testy as Councilmember Steve Uhring, the lone vote against the measure, asked what would happen if the investigation determined there was harassment.

“Well, I guess then we know we’re at risk and we’re going to need to have to deal with how we’re being at risk,” Mayor Mikke Pierson - who put the item on the agenda along with Councilmember Karen Farrer - responded. “I don’t know, maybe the voters will want to recall that person…”

“Ah, so now we’re coming up with a program that says, ‘Let’s figure out how we’re going to recall…” said Uhring, who continued to press Pierson on the ultimate goal and feasibility of such an investigation.

Pierson said that a recall would be “horrible” and he hoped it would not come to that, but felt that the city has a responsibility to investigate Feldman’s claims.

Councilmember Karen Farrer agreed with Pierson, and worried about the city’s ability to attract a replacement city manager if no investigation takes place. “I don’t see us in a strong position interviewing with something like this hanging over our heads,” she said. As Uhring attempted to speak over her, Farrer asked that all councilmembers not speaking be muted. Uhring was indeed muted until the 3-1 vote, with Pierson, Farrer, and Paul Grisanti voting to direct human resources staff to find an outside investigator.

The second contentious debate revolved around selecting a law firm to investigate the claims in an affidavit released by Jefferson Wagner. The Council voted unanimously to appoint Silverstein and Farrer, along with acting City Attorney John Cotti, to recommend one or more law firms to look into Wagner’s claims that he was offered bribes and the city failed to investigate his bribes, that the FBI raid on his home may have been politically motivated, and that he had heard rumors of city staff being bribed for favors and access.

Five law firms recommended by councilmembers have submitted proposals to investigate these claims. On average, these firms charge an often reduced fee of about $400 an hour per attorney, with two charging hefty retainer fees of either $250,000 or $50,000. Mark Baute, a litigator who spoke publicly, suggested instituting a flat fee cap of $25,000 to $40,000.

Silverstein has argued that Cotti should recuse himself, because he works for Best, Best & Krieger, a law firm that is named in the affidavit. Wagner claimed that he spoke to former City Attorney Christi Hogin, who worked for that firm, about being offered a bribe, and she said she would look into it, but did not. Hogin has said that she does not recall speaking to Wagner, and said that any reports of bribery would have been reported to the district attorney's office or sheriff's department.

Councilmembers Farrer and Grisanti said that Silverstein should recuse himself because he is “completely conflicted,” as Farrer said. Silverstein admitted that he helped Wagner draft the affidavit into “legally appropriate form,” but argued that he is unbiassed to weigh in on law firms. Silverstein asked Cotti to weigh in, who said that while Silverstein may be biased on the subject matter of the investigation based on past comments, it is a legislative issue and up to Silverstein’s discretion to determine whether he has a bias or not. Cotti also said he would need to further research Silverstein’s past statements to determine if there is bias.

Uhring made a motion to appoint Grisanti and Silverstein to a subcommittee to interview law firms, and come back with a spending cap. Grisanti said that he thought he did not know enough about the matter, that he thought Silverstein is conflicted, and that Cotti should be the one interviewing firms. The initial motion failed 3-2, with Silverstein and Uhring in favor, and Grisanti, Farrer, and Pierson against. Pierson echoed Farrer and Grisanti’s concerns that Silverstein’s involvement would constitute a conflict of interest.

Silverstein made a motion to involve Uhring and Grisanti, promising that he would not communicate with Uhring. No one seconded the motion, and Uhring said he felt he did not have the necessary expertise. “We owe the residents the best we can give them. We’re gonna take their money, let’s make sure we give them the value for their money,” he said. “Say what you want about Bruce, but Bruce has more legal experience than all of us put together.”

Uhring then made an amended motion to include Silverstein and Cotti, which Silverstein seconded. “I guess since we both are accused of having conflicts, we conflict each other out,” Silverstein said.

Pierson said he felt another councilmember should be a part of the investigation. Silverstein suggested Pierson himself, who then paused.

Farrer jumped in and volunteered, and the motion passed unanimously. The committee will recommend law firms, and the Council will vote on the final selection.

Related articles:

Malibu City Manager May Resign, Citing Councilmember 'Attacks' | Malibu, CA Patch

Malibu Councilmember Alleges City Hall Corruption | Malibu, CA Patch