Following release of an investigatory report accusing outgoing Riverside City Manager Mike Futrell of contributing to creating a hostile work environment in a city agency, Futrell said the report is not related to his resignation and that he strongly disagreed with many of its conclusions regarding him.
The city-commissioned report that was sent to the city of Riverside in January is 901 pages and was contracted to Nevins Professional Investigations in October 2024, accusing Jennifer Lilley, former director of the Community & Economic Development Department (CEDD), of creating a hostile work environment, as well as accusing Futrell of contributing to that environment.
“I understand the importance of reviewing workplace concerns carefully, fairly, and professionally,” Futrell said in a statement sent to The Press-Enterprise on Thursday, June 25 by his wife, Susan Freeman. “After reviewing the report, I respectfully but strongly disagree with many of its assertions, characterizations, and conclusions regarding me. My concerns include factual inaccuracies, material omissions, reliance on disputed accounts, and conclusions that, in my view, do not reflect the complete, accurate record.”
The investigative findings, available through the city’s public records portal, are largely critical of Lilley. The report says it was alleged by current and former employees from June 2023 and August 2024 that Lilley created a hostile work environment for her staff. It accused Futrell of ignoring complaints made against Lilley.
The allegations against Futrell, besides contributing to a hostile work environment, included retaliation, unprofessional and rude treatment of employees, interference with an administrative investigation, preferential treatment of Lilley, bias against imposing discipline on Lilley, negligent job performance, violation of the Whistleblower Protection Act, dishonesty and insubordination.
Futrell said he wanted to “make it clear” that the investigatory report was not involved in his decision to step down as city manager.
“I voluntarily concluded my employment by mutual agreement with the City Council as part of a mutually agreed upon leadership transition,” Futrell added. “The city has confirmed and made clear that my separation was voluntary, not a termination for cause, discipline, or adverse employment action.”
A city spokesman also confirmed on Wednesday, June 24, that the investigatory report was not tied to Futrell leaving the city.
“I served Riverside honorably, passionately, and with integrity for three and one-half years, and I remain grateful for that opportunity,” Futrell said. “I am proud of the accomplishments and positive momentum achieved during that time and the talented city staff team I was honored to lead. I remain confident in Riverside’s future, something which this disputed report cannot diminish.”
He said the report does not factor in his reliance on city staff to guide him through the process — adding the city has 2,600 employees, 17 departments and a $1.41 billion budget.
“I must rely on the experts in each department to manage their slice of city operations and to advise me concerning their areas of expertise,” he said.
“Because the report involves confidential personnel matters, I cannot now publicly discuss individual employees, witnesses, protected closed-session communications, or the motives of any person involved, a restriction confirmed by the numerous redactions in the report,” he added. “Nor can I discuss information that the law or my professional obligations require me to keep confidential.”
He said his decision to exercise that restraint should not be interpreted as agreement with the findings in the investigatory report.
Futrell resigned on Tuesday, June 16, after a City Council agenda item listed possible discipline of him for undisclosed reasons — a week after Freeman announced on social media that she had filed a claim against the city.
Futrell will be paid severance as part of a deal in which he’ll be on paid leave until the effective date of his resignation, July 5.
As part of Futrell’s agreement with the city, there are no pending claims or actions between him and the city.
Nevins Professional Investigations also investigated and submitted a report that recently became public on two code enforcement officers, accusing them of targeting immigrant vendors for years.
That report also alleged Lilley received multiple complaints and ignored them.
“These findings are deeply concerning and make clear that action is necessary,” Riverside Mayor Patricia Lock Dawson said in a statement on Wednesday, June 24. “That is why the City Council and I called for an independent review of the entire Community & Economic Development Department, and why the City is already implementing corrective actions to strengthen accountability, leadership, workplace culture, and oversight.”