City awaits audit of pro-El Toro spending

June Casagrande

After one councilman’s questioning of a city grant for the El Toro

airport fight ignited a bitter exchange of words, other officials are

saying it’s too early to suggest that the money may have been spent

inappropriately or even inefficiently.

The Airport Working Group has submitted to City Hall a list of

expenditures from the $3.6-million grant the city awarded in May 2001

to the working group and Citizens for Jobs and the Economy.

Councilman John Heffernan has called into question the fact that

nearly a third of the money paid for the professional services of

three principal players in the two recipient groups: David Ellis,

Bruce Nestande and Barbara Lichman.

An independent auditor will be selected by the city to verify the

expenditures. The auditor’s report could be complete in about four

weeks.

All three airport activists fired back that they have been

diligent and dedicated servants who provided Newport Beach residents

with more than their money’s worth. Some went so far as to question

Heffernan’s motives.

“He is just creating controversy within our community.

Controversy’s the last thing we need,” Lichman said of Heffernan. “I

challenge him to show that he has defended the people of Newport

Beach the way we have.”

Heffernan has said that the process has lacked adequate oversight

from the beginning, making public scrutiny of the expenditures all

the more important.

The largest chunk of the grant, $931,168.09, went to Greenstripe

Media, mainly to produce and broadcast announcements on cable TV in

Washington, D.C. Spots titled “Bunny and the Papers” and “Bunny and

the Weasel,” among others, were paid for with this money. Media

company MTA Inc. got $493,874.23, in part for producing the brochures

“Weasel Words,” “El Toro Airport Plan,” “JWA Expansion” and others.

And $112,214.63 paid to Kutak Rock LLP included fees for general

legal services, as well as for a toxic study of the El Toro site.

Working group consultant David Ellis’ firm received $458,061.60.

Most of that money was for consultants’ fees and for services and

expenses relating to print and broadcast media campaigns, research,

and staff travel to and advocacy in Washington, D.C.

Working group Executive Director Barbara Lichman’s firm of

Cheveliar, Allen and Lichman received $330,134.01, all for legal services, much of which pertained to anticipated litigation.

Bruce Nestande received $332,415.25 for work on mailers and

television spots, consulting, travel to and advocacy in Washington,

D.C., and other services.

“Before we have an audit done, it’s too early to draw

conclusions,” City Manager Homer Bludau said of the spending.

* JUNE CASAGRANDE covers Newport Beach and John Wayne Airport.

She may be reached at (949) 574-4232 or by e-mail at

june.casagrande@latimes.com.