City failed to follow own law

Eron Ben-Yehuda

HUNTINGTON BEACH -- By failing to follow its own ordinance, the city

misplaced $1.32 million, a report released last week shows.

The money should have been set aside in a special fund to help pay for

new roads, bridges and traffic signals, among other things.

It is difficult to tell how the missing money was used over the 10 years

since the law was passed because city staff didn’t realize funds had to

be specifically earmarked every year, said John Reekstin, the city’s

administrative services director.

“It is an oversight on our part that we will now correct,” he said.

The problem could have been spotted earlier had staff given an annual

update to the City Council, said Bob Beardsley, the city’s director of

public works.

“It was not handled properly,” he said. “There is no getting around

that.”

Mayor Dave Garofalo agrees that council should have been kept informed.

“I think that oversight is always mandatory in government,” he said.

But no transportation projects were delayed or canceled because the

ordinance wasn’t followed, Beardsley stressed.

For projects that affect surrounding traffic congestion, the city

requires a developer to pay a fee for street maintenance. The law also

demands that the city match whatever amount the developers contribute.

Of the $2.86 million the city should have squirreled away, only $1.54

million has been accounted for, a report dated April 4 states. Instead of

budgeting the money annually, the city set aside the money only after

specific transportation projects were approved, Reekstin said.

“Obviously, you don’t need the funds until you commit them [for specific

projects],” he said.

But officials are concerned about the timing of the discovery, as an

advisory committee is preparing recommendations for financing $1.3

billion in infrastructure needs, which almost certainly will include a

bond to be paid for by taxes. The recommendations are due in May.

“We’ve always been concerned about maintaining public trust in handling

[taxpayer] money,” Beardsley said.

The public loses confidence when officials don’t do what they’re supposed

to, said Gerald Chapman, who chairs the Planning Commission and is

vice-chair of the Infrastructure Advisory Committee. He protested the

city’s failure to comply with the ordinance, which sparked an

investigation last month.

The city will appropriate the money when the annual budget is prepared in

September, Reekstin said.

Chapman is encouraged.

“It shows the administration of the city feels very, very strongly that

it needs to reestablish credibility with the citizens of the city,” he

said.