All appearances point to separation between Modesto, in-house auditor

Monica Houston on Wednesday afternoon remained employed as Modesto’s in-house auditor, however, there’s some indication that could change soon.

Less than eight months ago, Houston was hired to uncover inefficiencies in city operations. Since then, she has become the focus of a political fight among council members who have either scrutinized her motives or defended her qualifications and experience.

On Wednesday morning, The Modesto Bee sent a message to Houston’s city e-mail address and received an automatic reply: “Please be advised that I am no longer with the City of Modesto.”

The reply goes on to offer a city hall phone number if anyone needs assistance. The same automatic e-mail reply prompted a Facebook post Tuesday night that assumed Houston’s job as Modesto’s auditor had ended.

In response to that the Facebook post, Houston told The Bee on Tuesday night she was still an employee for the city of Modesto. She referred all further questions to her attorney, Jacq Wilson.

Wilson on Wednesday did not respond to The Bee’s request for a comment He has told The Bee that Houston’s role in Modesto is to restore the public’s trust, and she just wants to do her job.

On Wednesday afternoon, Modesto spokesman Thomas Reeves said Houston is still an employee of Modesto. He said he also has received information claiming otherwise, but said the official stance from the city is that Houston remains employed.

The Modesto City Council initially was scheduled to meet at 4:30 p.m. Wednesday for a closed session meeting for a conference with legal counsel for “anticipated litigation.” By noon Wednesday, the meeting was canceled because of scheduling conflicts among the council members, Reeves said.

The meeting presumably was scheduled to discuss a potential legal settlement over Houston’s employment, but city officials can’t discuss the subject of a pending closed-session meeting. After those meetings, city officials release any reportable action taken by the council.

Some have claimed that Houston, who is African-American, has been subject to harassment, retaliation and even racism. City officials vehemently denied any racial motivation in a series job performance evaluations for Houston. Some council members have claimed Houston has attempted to overstep her authority.

In a July 19 memo, Houston warned city officials about a roughly $100 million project to realign and upgrade a stretch of Highway 132. Houston wrote that using Meyers Nave on the project would be “subject to and not in compliance with state and federal competitive bid process requirements.”

Meyers Nave is the Sacramento law firm Modesto hired four years ago to provide legal services. City Attorney Adam Lindgren is a principal in Meyers Nave and serves as the city’s top legal adviser through a contract with the firm.

Houston based her memo on a review of e-mails about the Highway 132 project between Modesto, Meyers Nave and the California Department of Transportation. But an attorney in Caltrans’ Sacramento headquarters on Aug. 1 sent an e-mail to Meyers Nave, saying legal services were not subject to competitive bidding.

Councilwoman Kristi Ah You said Modesto could be losing its best chance at real transparency if the Houston leaves her job. She said Houston’s job is to mitigate risk; not maintaining the status quo.

“Let’s not just talk about transparency; let’s be transparent,” Ah You said.

When Houston was hired in April, she was the city’s first in-house auditor in eight years.

The first auditor, Frank DeMattos, was hired in 2008 and terminated after 18 months on the job. That was followed by a contract with Moss Adams LLP to perform the duties from 2011 until last year.

Modesto Mayor Ted Brandvold persuaded the council to return to an in-house auditor, and Houston was hired in April. At that time, the city had set aside more than $360,000 for an in-house auditor, an assistant for the auditor, and $100,000 for outside help. That would be about twice the cost of Moss Adams.

At the time of her proposed hiring, a report submitted to the city council indicated that Houston would have an annual salary of $148,000 and receive other benefits, including a $6,000 annual car allowance. The city also will pay her moving and related-expenses and as much as $1,500 a month for up to six months for Houston’s temporary-transitional housing costs.

Councilmember Jenny Kenoyer said if Houston decides to leave her job with Modesto, she would like for the city to return to contracting a firm to handle the duties of auditor.

“I have never been in favor of a city in-house auditor,” Kenoyer said Wednesday afternoon in a phone interview. “It costs too much.”