Civic Duty or Conflict?

By CHRISTINE HANLEY

Aug. 15, 2001 12 AM PT

TIMES STAFF WRITER

A luxury resort’s request for beach access has been abruptly pulled off tonight’s Dana Point Planning Commission agenda after a disclosure that three commissioners had attended the hotel’s gala grand opening over the weekend, creating possible conflicts of interest.

The city attorney’s office has asked the state Fair Political Practices Commission for a determination.

Daniel T. Miller, the city manager, said three planning commissioners and other city officials had attended the event at the St. Regis Monarch Beach Resort & Spa, but he did not name the commissioners.

James V. Lacy, vice chairman of the commission and the only commissioner to return phone calls, said he was tempted to attend but decided against it. He said he did not know which city officials did attend.

Under state law, public officials may accept no more than $320 in gifts from one source during a calendar year. The city attorney’s office, consulted in advance, estimated that the St. Regis was spending more than $500 per guest and recommended that officials either decline invitations or be prepared to pay the difference to the hotel.

The St. Regis is seeking permission to cut a path to the beach through its own golf course, but nearby homeowner groups oppose beach access for hotel guests.

Sarah Pashalides, a city planner overseeing the St. Regis issue, said the item was pulled from the agenda because “it’s best not to cloud the determination. It’s a lot cleaner to have the potential conflict of interest resolved and then proceed.”

The $240-million St. Regis is on 172 acres and is considered one of the most luxurious hotels in Southern California. Its 400 large rooms are outfitted with Web TV, wireless keyboards, high-speed Internet access and DVD players. A night’s stay can cost from $375 to $5,000.

More than 1,500 guests attended the grand opening Saturday night. They were treated to fine wines, caviar and poached Maine lobster. Singer Chris Isaak performed, and stars Albert Brooks, Dylan McDermott and Angela Bassett mingled on the lawn overlooking the ocean.

The week before the event, planning commissioners and other officials consulted the city attorney’s office, asking whether it was proper to attend the function when the hotel had business before the panel. The office queried the Fair Political Practices Commission, but the agency has yet to respond.

Officials said invitations to the grand opening party were sent to members of the City Council and Planning Commission and to department heads.

“I personally went down to City Hall and returned my invitation, even though it would have been a wonderful event to go to and participate in,” said Lacy, the commission vice chairman.

“All of us involved in the government are regulated by state ethics rules, and there’s very good reason for that. It’s to reduce the possibility that a regulator’s judgment is somehow influenced.”

City Councilman Wayne Rayfield said he attended the event with his wife because he believed it was important for local leaders to be present for such an occasion.

He said he was prepared to pay the difference between the gift limit and the cost of two tickets. He added that he and his wife stayed for only 90 minutes and should not have to pay the full face value for each ticket.

“We had some hors d’oeuvres and some wine, and we left before whatever the rest of the festivities were,” he said. “We’ll pay whatever we need to pay, because I thought it was important for the city to be represented at the opening of a world-class hotel in our city.”

In a letter to the FPPC distributed to city officials, Deputy City Atty. Bryan C. LeRoy wrote that he considered the grand opening to be official city business but still subject to the state’s gift limits.

“The city of Dana Point, along with its beaches and hotels, is a principal vacation destination for tens of thousands of visitors each year,” LeRoy wrote. “Its success is important to the city and the city’s revenues from transient occupancy tax.”

An FPPC spokesman said it could take several weeks to rule on the matter. Until then, the city has tabled action on the hotel’s request.

Times staff writer Louise Roug contributed to this report.