Schools may wield Segerstrom bequest

Lolita Harper

The City Council has begun shifting its controversial demand for

tight reigns on $2 million in educational funds garnered during Home

Ranch negotiations, edging closer to handing over the money to

schools and letting them decide how to spend it.

“Those who have been involved in this are closer than the council

is, or ever will be,” Councilman Chris Steel said at Monday’s council

meeting. “They are best qualified to determine how the money is used.

Steel’s colleagues seemed to agree. Each called for limited

involvement by the city in the disbursement of the funds while

agreeing to postpone the issue to review all the options further.

“I want to get this money to the foundations as fast as possible

and let them start making it work for them,” Councilman Gary Monahan

said.

Council members unanimously voted during the meeting to continue

the item until Jan. 20. It also directed the legal department to

resubmit its previous proposal -- which called for the city to hand

the money over and was torn apart by council members three months ago

-- and a plan calling for one guiding foundation with two distinctive

committees.

Those ideas will be weighed against an option that calls for one

foundation and extensive city involvement and requires the foundation

to operate under state open-meeting laws.

The Home Ranch development agreement, adopted last year, called

for the Segerstroms -- the dynasty family that owns the development

site -- to give $2 million in a lump sum to Costa Mesa high schools

and middle schools when the first building permits for the project

were issued. Costa Mesa High School was to receive $1 million, and

Estancia High and TeWinkle Middle schools were to split the other $1

million.

The $2 million was received by the city months ago, but the

council postponed the transfer so it could provide more input on how

the money would be used. The council created a committee to provide

suggestions about who should be in charge of the money and how it

should be spent.

Council members, educators and residents have since debated how

strong a role the city should play in the foundations.

Council members negotiated the development agreement, which makes

them the custodians of those funds and entitles them to place

conditions on the money, one side argues, while teachers and parents

say they can find the best and most efficient use of the millions.

Steel said he was always opposed to the $2 million from the

Segerstroms coming through the city, knowing it would lead to debate

and battle. Steel argued the dynasty family should have given the

money as a donation directly to the schools and not part of “some

sort of bribe” for the Home Ranch project.

“Let’s keep the council out of it and just give them the money,”

Steel said.

Mayor Karen Robinson found herself in a familiar and lonely

position on the Home Ranch project. Once again, she was the only

council member to dissent.

Robinson, who was the lone opposing vote for the Home Ranch

project a year ago, stood firm in her belief that the $2 million

should be governed by one community-minded foundation acting under

the Brown Act.

The money was payment for a project that will take its toll on the

city, she said, and the council has a duty to make sure it is spent

properly.

“Given the nature of the funds, I am still of the opinion that one

foundation is most appropriate,” Robinson said. “The [city] cannot

abdicate its responsibility for overseeing the money.”

* LOLITA HARPER covers Costa Mesa. She may be reached at (949)

574-4275 or by e-mail at lolita.harper@latimes.com.