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Consultants to collect $6 million, want $10 million more

The San Diego City Council meets for the first time this year on Tuesday, Jan. 17.
The thorny issue on the agenda is whether to authorize millions more to pay consultants who are investigating the city. KPBS reporter Alison St. John has more.

It's not an easy way to start the year's city council business - picking up on a decision that was so controversial it was postponed twice last year. The City's consultants, Kroll Inc., are engaged in a massive investigation that involves retrieving millions of e-mails and documents. They are exploring the 2002 decisions that resulted in the City's billion-dollar pension deficit that was hidden from investors.

Kroll and their attorneys have already charged the city more than $6 million for the investigation and have indicated they need about another $10 million to finish the job.

Some say the conclusions are key to reaching a settlement with the Securities and Exchange commission. But the work has slowed since the council balked at authorizing extending the contract. Kroll says it cannot work indefinitely without being paid, so the city will once again be forced to consider the astronomical bill. Alison St. John KPBS

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