Council subpoenaed to testify

Barbara Diamond

Mayor Wayne Baglin is likely to be indicted by the Orange County

Grand Jury for violating a state code prohibiting an elected official

from having a financial interest in city business, his attorney says.

“I knew it was going to be presented to the grand jury and I

expect an indictment to be handed down,” said Newport Beach attorney

Michael Molfetta, who is representing Baglin. “I would fall off my

chair if the Orange County Grand Jury didn’t indict anyone other than

a police officer.

“I think this [investigation] is politically motivated. I think

it’s petty and a colossal waste of taxpayers money,” Molfetta said.

For more than a year, the Orange County district attorney’s office

has been investigating Baglin’s role as broker in the sale of

property to the city, for which he accepted a commission. State

Government Code 1090 prohibits elected officials from having a

financial interest in city business deals. It differs from the

conflict of interest rules, which the Fair Political Practices

Commission oversees.

Baglin has denied any conflict of interest in the January 2001

sale of property to the city. He said in the past that he didn’t vote

on the matter or discuss it with other council members. But Baglin, a

licensed real estate broker and former president of the Laguna Board

of Realtors, brokered the sale and collected a commission.

“I am sure Wayne never did anything he believed was wrong,”

Planning Commissioner Anne Johnson said.

City Manager Kenneth Frank and City Atty. Philip Kohn and the City

Council, excluding Baglin, all showed up Wednesday for the grand jury

hearing. They all declined to comment before the hearing whether they

even received subpoenas. No reason was given for the omission of a

subpoena to Baglin.

Subpoenas do not inform the recipients of the matter on which they

will be required to testify as witnesses. Nor are they specifically

informed of the matter at hand during questioning by the county

prosecutor before the Grand Jury, said one former witness.

Kohn and Councilwoman Toni Iseman were not taken into the unmarked

room in the county offices where the Grand Jury is convened.

“I was scheduled to testify at 2:30 p.m., but I was told they

didn’t want to hear me -- they already had enough testimony,” Iseman

said. “I was the only council member who was subpoenaed who did not

testify.”

Kohn also was told his testimony was not needed at this time.

Frank declined to make any comment.

Baglin declined to comment Thursday on the hearing.

“My attorney has advised me not to discuss this matter,” Baglin

said. “I was very open about this when it first came up. My counsel

feels I was too wide open.”

Baglin was elected to the council in November 2000 for a third

four-year term, none of them consecutive.

The council voted in closed session the next Jan. 23 to purchase

the property on Third Street through eminent domain. The decision

came after the council reportedly was informed that an offer had been

made on two parcels owned by Edgar and Dorothy Hatfield, said to be

Baglin’s longtime friends, as well as clients.

Shortly after the vote, which was announced at a City Council

meeting, the city paid the asking price of $1.8 million for the

parcels. The eminent domain procedure was never completed.

Had the property been sold to any one else, or through eminent

domain, Baglin would have been entitled to accept the commission from

the sellers of the property without any controversy.

Estimates of his commission he did receive range from $36,000 to

$54,000.

League of Women Voters member Jean Raun and Common Cause member

Dale O’Neal requested an investigation when the Baglin’s commission

became public knowledge.

“I made the first call,” Raun said Thursday. “But then I realized

that the league takes no position about elected officials caught with

their fingers in the cookie jar -- which needs to be addressed on the

state level -- so I turned it over to Dale.

“I am sad about this, but I feel it is important that elected

officials obey the law.”

Violation of the 1090 statute is a felony, punishable by fine or

imprisonment, and bans the guilty party from ever again holding

public office in California.

Baglin was first elected to the council in 1978, but had to resign

when he took a job overseas. He ran again and won in 1994. Baglin

lost his bid for reelection in 1998, but regained a seat on the

council in 2000.

He is the owner of Baglin Real Estate on Thalia Street.

* BARBARA DIAMOND is a reporter for the Laguna Beach Coastline

Pilot. She may be reached at 494-4321.