OAKDALE — The City Council decided Monday to hire a law firm to investigate whether a consulting business started by former City Manager Steve Hallam, the police chief, city attorney and the city’s human resources analyst poses ethical or legal problems for the city.
Interim City Manager Greg Wellman said he hopes to retain the law firm of Meyers Nave to conduct the investigation, which will cost no more than $15,000. Wellman said he expects the probe to take 45 to 60 days.
Council members did not vote but reached a unanimous consensus during closed session deliberations to look at Police Chief Marty West, City Attorney Tom Hallinan, human resources analyst Michelle McKinsey and whether their roles with VHHW Investigations constitute problems for Oakdale.
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Hallam, who was fired by the City Council in April, has said he has taken the lead role in establishing the Turlock-based consulting firm, whose specialties include workplace investigations, human resources consulting, background checks and legal services.
VHHW Investigations was registered with the secretary of state in June. The firm does not have any clients, and Hallam recently started marketing the business. West has said he has no plans to work for the firm until he retires early next year, although he received his private investigator’s license in June.
Councilwoman Kathy Morgan championed the integrity of Hallam and the three others during the public hearing before the council’s closed session. After the meeting, she said she agreed to a third-party investigation to lay to rest the perception of any improprieties.
During the public hearing, the president of the Oakdale Police Officers Association and the business agent for the union that represents Public Works employees urged the council to launch an investigation.
Both said employees, since learning about the business venture, are questioning whether their complaints regarding Hallam and West were properly handled by McKinsey.
“Their concern is that they were not given a fair shake,” said Mike Eggener, the union business agent and a retired Oakdale police sergeant.
But others spoke on behalf of Hallam and the three employees. They said politics was behind the controversy.
Pat Paul defeated incumbent Farrell Jackson for mayor in November, in a bruising contest in which West faced allegations of providing special treatment for Jackson. Morgan said it was well-known that Hallam’s, West’s and McKinsey’s jobs were on the chopping block after Paul’s victory.
Hallinan defended himself before the council.
He said he and his father have provided legal counsel to Oakdale City Councils for 45 years, and Hallinan said he felt blindsided by the push to investigate him.
He reiterated that he did not have any conflicts between his duties to the city and the consulting firm. For instance, he said, Oakdale uses a personnel attorney to handle employee grievances and complaints.
“This is a phony, phantom issue,” Hallinan said. “I want to move forward.”
