The unique convention on the Beverly Hilton in April 2023 promised speeches from high enterprise leaders, together with Earvin “Magic” Johnson, in addition to poolside cocktails, canapes and a Mediterranean dinner.
Among the many attendees have been a number of Los Angeles Division of Water and Energy officers — together with then-DWP board President Cynthia McClain-Hill, who opted for a $980 meals, drink and items bundle for the three days of the Worldwide Utilities and Power Convention.
Beneath metropolis ethics guidelines, McClain-Hill was not allowed to simply accept substantial items from the convention host, Accenture, as a result of the worldwide consulting firm holds tens of millions of {dollars} in contracts with the DWP.
She additionally couldn’t invoice the DWP for the $980 bundle as a result of the quantity far exceeded the $60 every day restrict that authorities employees might cost for meals whereas out working.
Finally, some DWP and Accenture staffers discovered a means for the DWP to select up the tab, by mislabeling the invoices for McClain-Hill and one other DWP official, in keeping with present and former DWP employees.
The allegations involving the invoices have been first made by a former DWP contractor in a California State Bar criticism in opposition to McClain-Hill and in a lawsuit in opposition to the DWP by staff accusing McClain-Hill of retaliation and harassment.
McClain-Hill denied any wrongdoing. She has additionally denied wrongdoing in reference to the lawsuit.
“My attendance on the multi-day convention hosted by Accenture for its international shoppers within the utility sector was associated totally to my tasks at DWP and served no private goal or goal,” she mentioned in an e-mail.
She added that she “requested departmental approval by way of regular employees channels” to cowl the prices of the Beverly Hills convention.
In her 5½ years on the DWP board, McClain-Hill joined her colleagues in voting in favor of at the least three separate contracts for Accenture, DWP information present.
Accenture consultant Joseph Dickie declined to remark. A DWP spokesperson additionally declined to remark, citing the continuing litigation.
Lawyer Brad Gage, who’s representing former DWP staff within the lawsuit, referred to as the division’s dealing with of the invoices “morally improper.”
The DWP has been racked by scandals over the previous few years, with two former high officers serving jail sentences for his or her roles in bribery schemes. A former board commissioner is dealing with state bar disciplinary fees in reference to an alleged quid professional quo deal.
McClain-Hill, an lawyer and former police commissioner, resigned from the DWP board in January after The Instances reported on an incident involving non-public conversations she had with a DWP contractor.
Emails reviewed by The Instances present how managers at Accenture, which has billed the DWP greater than $5 million in recent times for cybersecurity and know-how contracts, carefully labored with the DWP to relabel the invoices for the $980 meals, beverage and reward packages.
Accenture initially submitted invoices labeled “Meals and Beverage” payment for McClain-Hill and Winifred Yancy, a DWP director who attended the convention at McClain-Hill’s request.
On the request of a DWP staffer, Accenture later submitted new invoices for each officers, titled “Convention Registration” payment, when in actual fact the convention was free to attend.
Labeling the invoices as “registration” could have helped be sure that the DWP would reimburse Accenture, as a result of the town covers staff’ prices to attend informational conferences.
The “Convention Registration” invoices have been submitted just for McClain-Hill and Yancy and never for another DWP officers who attended the convention, in keeping with information reviewed by the Instances.
One convention attendee, who didn’t join the $980 bundle and requested anonymity as a result of he wasn’t approved to speak to the media, advised The Instances that there was loads of free meals, snacks and water on the occasion.
In April, throughout a deposition within the lawsuit in opposition to the DWP, attorneys requested McClain-Hill in regards to the Accenture invoices. She declined to reply, saying that the town’s Ethics Fee could have launched an investigation.
A consultant for the Ethics Fee declined to remark, citing a coverage to not verify or deny any investigations.
In response to the interior DWP emails reviewed by The Instances, Michelle Smith, Accenture’s enterprise improvement director, invited McClain-Hill to the convention on March 16, 2023.
In a follow-up e-mail to DWP employees just a few days later, Smith mentioned there was no “convention payment.”
And, she mentioned, contemplating “the significance of compliance concerning authorities consumer attendees,” there was an choice to say no the meals, beverage and “small giveaway” bundle valued at $980.
Beneath metropolis ethics guidelines, a metropolis commissioner who votes on contracts can settle for a most of $100 in items yearly from a contractor resembling Accenture.
McClain-Hill sought recommendation from DWP Common Counsel Julie Riley about going to the convention, the emails present.
“Can I do that or does it implicate reward guidelines,” McClain-Hill emailed Riley on March 16, 2023.
Riley replied that the convention was thought-about informational, so the free registration was not a present. Nonetheless, hospitality did fall within the reward class, Riley wrote.
McClain-Hill might settle for as much as $100 value of meals and drinks from Accenture, Riley suggested, or she might settle for extra hospitality and reimburse the corporate along with her personal cash.
McClain-Hill later despatched an e-mail to DWP employees indicating that she wished to pay for the hospitality bundle. She additionally advised the employees to ask Yancy, who oversaw power and electrification enterprise on the utility.
Days earlier than the convention, Accenture’s Smith despatched a $980 bill to the DWP, labeled “Meals and Drinks” for McClain-Hill.
However McClain-Hill declined to pay, the emails present.
“We have now a finances for this … the Division might be paying for this not me personally,” McClain-Hill wrote to an aide.
A handful of DWP staffers exchanged a flurry of emails about how one can cope with the state of affairs. At one level, they thought-about utilizing a DWP bank card.
“Might you please present some steering on how I can get these invoices paid?” a staffer wrote to her supervisor.
On March 31, 2023, LaTanya Bogin of the DWP emailed Accenture’s Smith and requested to talk by cellphone.
Minutes later, Bogin emailed Smith once more.
“Thanks for calling me. Are you able to ship over an bill to state the next: Convention Registration Charge for Cynthia McClain-Hill/Winifred Yancy @$980 every?” wrote Bogin, then an govt assistant and president of the DWP’s retirement board plan.
Amanda Nicolls, Accenture’s managing director, despatched the invoices just a few hours later.
Bogin didn’t reply to requests from The Instances for remark. Yancy, who has retired from the DWP, declined to remark.
McClain-Hill stepped down in January after The Instances reported on criticism leveled in opposition to her and then-DWP board President Mel Levine over a secretly recorded cellphone name the pair had in 2019 with two cybersecurity executives to stroll them by way of plans to award their firm a brand new contract with the DWP.
The town’s ethics regulation bars commissioners from privately reviewing contracts with distributors. McClain-Hill and a consultant for Levine mentioned the decision was correct.
Paul Paradis, a former DWP contractor turned cooperating witness, is believed to have recorded the cellphone name. Paradis additionally filed the State Bar criticism in opposition to McClain-Hill over the Accenture invoices and different allegations.
Though McClain-Hill backed some Accenture contracts, she didn’t at all times act within the firm’s favor. 5 months earlier than the convention, McClain-Hill led her board colleagues in delaying an $11-million contract to the corporate amid questions on whether or not the settlement had been correctly vetted by DWP attorneys.
Jamie York of Unrig LA, which advocates for transparency in authorities, reviewed the interior emails in regards to the convention at The Instances’ request. She mentioned that public officers have an obligation to spend cash correctly.
“You’ve gotten a public official who’s much less centered on their fiduciary responsibility to the town and extra on their private consolation,” York mentioned of McClain-Hill.
