EDITORIAL

At last someone noticed.

The Independent’s reporting on Huntington Beach Mayor Dave Garofalo’s

potential conflicts of interest started in 1998 and heated up again this

spring. The many questions raised week after week have finally attracted

the interest of the Orange County district attorney’s office, which has

launched an investigation in cooperation with the Fair Political

Practices Commission. The Orange County Grand Jury has decided to weigh

in. And the city attorney’s office had its own Garofalo inquiry going.

That’s four investigations, if you’re counting. And they have plenty

of material to dig into. Here’s where they can start:

* Who owns the Local News publishing franchise? This seems like a

basic question, but getting an answer has been like chasing the wind.

Garofalo said he sold his publishing business -- which includes the

twice-monthly Local News, the city’s visitors guide and the Chamber of

Commerce Business Directory -- in late 1997. The date is crucial because

a year after selling the businesses, Garofalo would be free to vote on

advertisers who come before the City Council. (By the way, prior to when

he said he sold the Local News, Garofalo routinely voted in favor of

advertisers.)

But it’s unclear who owns the Local News and what its relationship is

to Garofalo’s consulting firm, David P. Garofalo & Associates. In the

publications, the staff boxes and even the newspaper front page provide

conflicting information. County records filled out by Garofalo provide

conflicting information. In interviews with the Independent, Garofalo

himself has provided conflicting information.

Confused? So are people who work closely with Garofalo -- Diane Baker

from the Conference & Visitor’s Bureau and Joyce Riddell from the

chamber. They have admitted they weren’t sure who owns what.

There’s more. In advertisements for David P. Garofalo & Associates,

the company is listed as the publisher of the Local News, visitors guide

and chamber directory. Even some advertisers in the visitors guide were

told to write their checks to David P. Garofalo & Associates and not the

Local News.

* If Garofalo sold the publishing business in late 1997, why did he vote 35 times in favor of advertisers in the visitors guide in the year

after the sale? State law prohibits Garofalo from voting on advertisers

for a year after the sale of his business. A letter from the FPPC in

October 1998 to Garofalo underscored that point, though Garofalo voted at

least three times on advertisers after receiving that letter.

* What was Garofalo’s role as a $100,000-a-year consultant to the

Local News? Garofalo told the Fair Political Practices Commission that he

became a consultant for the Local News after its sale and that he advised

the new owner on “non-sales issues” such as “mechanical and technical

aspects of publishing.” But some advertisers in the visitors guide said

they were solicited directly by Garofalo and were told to make out their

checks to David P. Garofalo & Associates. One advertiser said he paid for

his ad, in part, by giving cash and gift certificates directly to

Garofalo.

* Why did Garofalo personally sell an ad to a developer that had a

$46-million project before the council and then vote four months later in

favor of the project? An executive with the development company,

Commercial Investment Management Group, also said the company was told to

write the check out to David P. Garofalo & Associates.

* What’s the business relationship between Garofalo and the

city-funded Conference & Visitor’s Bureau Visitor’s Guide? There are

again some conflicting statements about who actually publishes the annual

visitors guide, but Garofalo has told the Independent that David P.

Garofalo & Associates has had the no-bid contract since 1993. Garofalo

receives no upfront money, assumes all the risk and keeps all profits.

Garofalo’s son works as advertising manager. State law prohibits council

members from doing business with the city they represent.

* How did Garofalo get the most coveted and expensive house in the

first phase of the St. Augustine development? Garofalo has given vague

and seemingly conflicting information on how he got the top spot, but at

least four residents said the mayor never entered the public lottery for

the ocean-view home. The developer isn’t talking.

Garofalo voted 56 times in favor of the Holly Seacliff development,

which includes St. Augustine, both before and after the home sale. At the

time of the home purchase, he also served on a council subcommittee that

was trying to decide how many millions of dollars the city should rebate

to the developer.

* How did Garofalo sell his St. Augustine home after one day for an

additional $60,000? Garofalo said he used a friend’s cash to buy the home

and then sold it to that friend the next day. The increase in price,

Garofalo said, was due to upgrades. Garofalo said he made only $1 on the

transaction. A vice president with the developer said all upgrades are

included in the homeowner’s initial purchase price.

We’ve said it before: The truth is out there. But until now,

conflicting statements, contradictory evidence, fuzzy explanations,

tangled business dealings and disturbing revelations are all that have

been put in front of us.

We urge the four investigating agencies to move as swiftly as

possible, so Huntington Beach city government -- which now has a mayor

under a cloud of suspicion and who cannot vote on anything meaningful

because of potential conflicts -- can regain its reputation.

As to what Garofalo’s reputation will be after this is over, we

wouldn’t venture a guess.

That’s for the district attorney to decide.

And the grand jury.

And the Fair Political Practices Commission.