Lampson Project potential conflict of interest back on Los Al agenda

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Citizens gather to learn more about Lampson Project at first public hearing. Courtesy file photo

The two newest council members in the City of Los Alamitos continue to ask hard questions, this time putting back on the agenda an issue designed to explore a potential conflict of interest between the city’s law firm and a former interim city manager who is now playing a role in what is expected to become the Lampson Ave. housing project.

Text messages obtained by local residents opposed to the current density of the so-called Lampson Project show that former city official Les Johnson routinely communicated with planning officials about the project after leaving the city’s employ.

A group of residents have organized themselves under the name “Protect Our Communities Now,” and, among things, they are asking city officials to at least reduce the density of the project.

At the Council’s previous meeting, Council member Emily Hibard repeatedly grilled city attorney Michael Daudt about that string of text messages and emails exchanged between a former official and the city’s current planning department staff.
Hibard repeatedly asked Daudt, the city attorney, about the propriety of those communications.

“Are you familiar with the content of these text messages and emails?” she asked Daudt.

“Yes, I am,” said Daudt.

“From what you have seen, do you see any conflicts of interest or potential conflicts of interest in what’s in here,” she asked.

“I do not,” said Daudt.

“The only thing I would offer,” said Daudt, “as an additional admonishment on this is that those PRA requests and text messages themselves relate specifically to the Lampson project, which is not an item before the City Council tonight or on the agenda for consideration.”

“So possibly there is something here,” asked Hibard.

“To the extent that the legislative rezoning applies citywide, and to the extent the (Lampson project site) property is located within the city, it applies,” said Daudt.

“And in your legal perspective, you don’t see any conflicts of interest between the content of this and rezoning,” Hibard asked a final time.

“I do not,” said Daudt.

While the city attorney emphatically suggested there was no conflict with Mr. Johnson conferring with city officials regarding a private sector project, Council member Trisha Murphy is now asking to explore the propriety of Daudt advising the city going forward on the Lampson issue because of any advice given to Johnson when he was a city official.

It is not clear whether the PRA request included any communication between Johnson and the city attorney or, even if so, whether those messages would be protected.

During the Council’s April meeting, however, Murphy has been aggressive in her attempts to find facts and data to make decisions. Murphy was appointed to fill the seat vacated by the sudden death of Ron Bates.

“As a new council member. I have a lot of questions related to the positions, duties and responsibilities and agreements between the city and third parties and joint ventures,” Murphy said during her monthly Council member reports.

“I’ve been fortunate to have a healthy, supportive, and collaborative relationship with city staff who have been integral in helping me facilitate and acclimate into my new role.

Anyone who knows me I’m the person who likes to learn something new every day that I may know a lot about a little ‘n’ a little bit about a lot,” Murphy began.

“To further improve my understanding and knowledge of past and present agreements and or contracts with the City of Los Alamitos, I requested several agreements to be provided to my attention for review,” she said.

“As such, I’d like to take a few moments to address one of those agreements, specifically the agreement for city attorney services between the city of Los Alamitos and Woodruff, Spradlin and Smart (WSS), according to the original fully executed agreement for city attorney services between the city of Los Alamitos and the law firm WSS that was entered into an agreement on August 28 2017,” continued Murphy with exacting detail.

“The city desired decided to appoint employ and retain WSS to provide city attorney services for the city and to provide legal services required to be formed by the Office of the city attorney as at the commencement date of October 1, 2017,” the council member said, noting Michael Daudt, is, according to the WSS website, the principal of the firm.

“Furthermore, according to the new fully executed agreement entered into as of September 18, 2017, and commenced on October 1, 2017, with no agreement term expiration, in addition to the city council, Mr. Daudt represents and advises city staff such as the city manager, city clerk and so forth,” she said.

“And 2019, Mr. Daudt, as a city attorney at the time, would have the authority and capacity to provide legal representation, advice and assistance and the preparation or review of contracts and other legal documents from Mr. Les Johnson, the Los Alamitos, development services director from September 2018 to August 2019,” she continued, “and the interim city manager from August 2019 to January 2020.”

As I was recently made aware, Mr. Johnson is now the Director of Planning Services at T and B Planning Inc., which is the urban planning firm hired by developers to assist in developing the proposed Lampson Project in Los Alamitos. Now I recognize that Mr. Daudt said he sees ‘no conflict of interest’ and a string of messages between Mr. Johnson and Mr. Tom Oliver, the Los Alamitos planning director regarding to the proposed Lampson Project.
Murphy was referring to the responses given to Council member Emily Hibard, in which she questioned Daudt about a string of text and email messages between Johnson and current planning department officials that indicates Johnson had been in close contact with his former colleagues regarding the Lampson project.

Other city officials say that, as of this date, there is no official “Lampson Project,” as no formal application has been filed, although city manager Chet Simmons did acknowledge city officials have been given the outlines of what is expected to be a housing project of mixed use with approximately 250 residences on a 12.4-acre tract located along Lampson Ave.

Murphy, however, said, “there should be some consideration for a conflict of interest that may have arisen from Mr. Daudt’s responsibility as an attorney to his former city of Los Alamitos, client, Mr. Johnson, and providing loyal and independent judgment to his current client, the city of Los Alamitos.”

“There should be deliberation and careful consideration as it appears there is a conflict of interest,” she said, adding that “somebody once told me it’s all about perception,” said Murphy.

The city attorney advises city officials on a variety of issues that come up from day-to-day. They are paid on an hourly basis. Records indicate Daudt’s firm, Woodruff, Spradlin & Smart billed the city $24,340 for legal services in January, the most recent month available on warrants.

Daudt, present at the meeting, said nothing during the Council members’ comments.
The Council, momentarily silent, had the silence broken by City Clerk Windy Quintanar saying that the only way the item could be placed on the next agenda, was for the motion to receive a second.

Hibard, who thoroughly grilled Daudt at the last regular meeting, asked about exactly what the motion entailed, then agreed to second Murphy’s motion.
“I’ll second that,” she said.

Therefore, the item will apparently now appear on the Council’s next regular meeting agenda in May to apparently explore a potential conflict of interest in the nexus of advice and the blurred lines created by the Lampson Project correspondence.

Murphy said after the meeting in an interview that she is “concerned” about the apparent conflict of interest in the city attorney representing the former interim city manager who is now, or about, to play a central role in developing a major housing project in the city.
“I’ve discussed this issue with other attorneys,” she said, “and there is a legitimate concern.”

At the very least, she said a deeper discussion will let citizens know there is no real or perceived conflict.

In addition, Murphy said she may even suggest the city hire “special counsel” to represent the city in the Lampson Project to avoid any real or perceived conflict of interest.