COSTA MESA : No Fraud Found in City Contract Award

A police investigation into a poison-pen letter aimed at high-ranking city officials did not turn up the writer’s identity but did clear city officials of the anonymous charges of conspiracy and fraud, the Police Department has announced.

City Manager Allan L. Roeder asked the police on April 4 to look into allegations that he and other city officials worked improperly to award a $100,000 computer consulting contract to a Newport Beach firm.

The City Council was originally scheduled to consider a contract with AEF Systems Consulting on April 4 but postponed a discussion until May 2 because of the police investigation.

Investigator George Wilson announced Friday that he has investigated the process by which city staff members selected the consulting firm and found it to be proper. He said he interviewed city employees but could not determine the identity of the writer of the letter.

Roeder said he had been confident that the allegations were untrue but had wanted the police to provide an independent verification.

Communications Director Vincent M. Whelan said he had recommended that the city contract with AEF because other cities had recommended the company highly. The city need not have open bidding for professional consulting services, City Atty. Thomas Kathe said.

The consultant was to be hired to help the city decide what kind of computer system to buy. The system, which will manage all city information, could cost from $3 million to $7 million, Whelan said.