Wood not violating city policy

Noaki Schwartz

NEWPORT BEACH -- The city attorney has temporarily diffused a volatile

dispute by determining that there is no conflict of interest for a

Central Library trustee who is also spearheading fund-raising efforts for

the proposed Arts and Education Center.

Elizabeth Stahr, a major library donor, recently accused trustee Jim Wood

of violating city policy by heading two groups. Wood is the chairman of

both the library trustees and another committee promoting the arts

center, which is proposed to be built behind the library.

“I turned over the city policy [to the council], which clearly states

that doing both is not right,” Stahr said.

Stahr believes Wood’s fund-raising for the center directly competes with

the Newport Beach Library Foundation’s efforts. Wood insists that he has

not even started fund-raising for the arts center and won’t for another

six months.

The spat appears to be related to another, larger feud that’s been

brewing for more than a year between the foundation and library trustees.

“This whole situation has gotten blown out of proportion,” said

councilman Gary Adams, who finally spoke to City Attorney Bob Burnham,

hoping to get a definitive decision on the issue.

Adams added that even if there was a legal question, there is a provision

that would allow the council to make an exception by allowing Wood to

serve on both committees.

However, after looking into it, Burnham told Adams that there is no

conflict of interest in having Wood sit on both the library board and the

arts center committee.

The larger library dispute directly attacks the integrity of Stahr’s

brainchild -- the library foundation. Stahr began the first foundation

that raised millions in order to build the Central Library on Avocado

Avenue. That foundation was later dissolved and a new one was created to

raise money for books and facilities at the library.

The feud, which is primarily over financial control, started about a year

ago when the trustees began to question how the foundation was handling

the money it raises for the library.

The foundation has been attempting to raise a $2.5-million endowment fund

that would provide enough interest for the library to survive in case of

future periods of financial hardship. However, it requires the trustees

accept 42% less money than usual next year and relinquish some financial

control.

While the dispute was supposed to be resolved by now, it appears the

problems will not be ironed out until next year. Dave Carmichael,

foundation chairman, said members need more time to consider a

cooperating agreement, which would give greater financial control to the

trustees and threaten the foundation’s independence.

In the meantime, the Arts and Education Center proposal appears to have

been put on hold. Although proponents of the $12-million facility were

scheduled to present their project to the City Council for public review

this week, Mayor John Noyes recommended the group wait until the

controversy surrounding Wood dies down.