Criminal Investigation of former Hercules officials

In 2003, the City of Hercules entered into a contract with Nelson Oliva’s firm, NEO Consulting Inc. ("NEO"), doing business as “Affordable Housing Solutions Group”, to manage the City’s affordable housing program. In 2007, with the resignation of City Manager Michael Sakamoto, the City Council hired NEO’s Director, Nelson Oliva, to serve as City Manager, on the condition that he must sever any interest in NEO.

Nelson Oliva represented that he severed all connections with NEO, by placing family members in charge of the corporation. However, Mr. Oliva maintained continuous control over NEO and, according to the state Fair Political Practices Commission (“FPPC”), made, participated in making, or attempted to influence governmental decisions in which he knew, or had reason to know, he had a disqualifying financial interest. During his tenure as City Manager, he awarded 16 additional city contracts, totaling $2,889,000, to NEO. The FPPC concluded that Mr. Oliva received unlawful benefits totaling $234,775.96. Mr. Oliva agreed to pay the FPPC a penalty of $70,000. The City of Hercules filed a civil lawsuit against Oliva and his company, NEO Consulting Inc., seeking to recover $3.2 million. Oliva and NEO agreed to settle the lawsuit with the City in December 2013.

Now that the City and the FPPC have taken what actions they could, we are imploring you, the Contra Costa County District Attorney and California Attorney General, to continue to seek justice in this matter. We are aware that in addressing corruption by local officials in the City of Bell, California, the Attorney General and the Los Angeles District Attorney agreed to coordinate criminal investigations. In that case there was swift action and the devotion of considerable resources to investigate and prosecute the public officials found to have violated the public trust. Convictions were obtained, and justice has been served. We understand that federal agencies have been looking at the situation in Hercules, but after four long years we believe it is time for our state Attorney General and District Attorney to act.

Tremendous damage has been done to the City of Hercules by corrupt former officials. We remain hopeful that without further delay you will direct your respective agencies to undertake thorough investigations of any and all criminal wrongdoing. Corruption of this magnitude cannot go unaddressed. The City of Hercules promises to provide full and complete cooperation with your agency’s investigation.

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The drafting of a letter to the District Attorney and Attorney General, as well as posting of the letter on line for citizen's to sign, was authorized by the City Council of the City of Hercules at the regular City Council meeting of February 11, 2014.

At that meeting, following a public discussion of the agendized matter, City Attorney Patrick Tang was directed by a 5-0 vote of the Council to draft the letter for the Council's signature, and to provide the letter to the City Clerk for posting on the City's website, in a manner that would allow citizens to petition the Attorney General and District Attorney on line to take appropriate action in regards to this matter.