Sacramento Mayor Kevin Johnson on Tuesday disputed a legal memo suggesting the city likely is barred from receiving federal grants because of problems alleged at an urban Peace Corps-style program he founded.
In a news conference, the mayor said the opinion the city commissioned from Frederic M. Levy, a contracting and compliance expert, was flawed.
"I don't think he will be correct on that," Johnson said. "All indications are that the city of Sacramento won't be impacted."
The analysis sought by City Attorney Eileen Teichert found the city likely is barred from getting federal money – including tens of millions of dollars the city expects from the stimulus package – because Johnson is on a list of people suspended from receiving federal funds.
Federal officials placed St. HOPE Academy and Johnson, the organization's founder and former president, on the list last year after a preliminary investigation into allegations that the program misused some of the $807,000 in federal grant money the organization received between 2004 and 2007.
Also suspended is Hood Corps, operated by St. HOPE Academy, and Dana Gonzalez, Hood Corps' former director and now a mayoral volunteer.
Johnson acknowledged Tuesday that there are "administrative things" St. HOPE could have done better but noted that the original allegations against the group have been pared to four or five.
He said he expects a quick and favorable resolution to the federal funding matter.
Johnson said his attorney, Matt Jacobs, had talked to the city attorney and the office of U.S. Rep. Doris Matsui, who is working on ensuring the city gets a fair share of the stimulus money.
Jacobs, a former federal prosecutor, said Tuesday that it's "highly unlikely" any federal agency would say a large city would be banned from federal stimulus funds because of an entanglement of a "small nonprofit."
"No federal agency that we are aware of has said that this is an issue," Jacobs said.
Johnson said the city already has received $30 million in federal funds since he became mayor.
Call The Bee's Loretta Kalb, (916) 321-1073.
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