Council agrees bureau should end contract with Garofalo

Theresa Moreau

HUNTINGTON BEACH -- With its embattled mayor absent, the City Council

voted unanimously Monday to support the city attorney’s recommendation

that the Conference & Visitors Bureau terminate its contract with David

P. Garofalo & Associates.

The council’s action followed an Aug. 1 memo released by City Atty.

Gail Hutton, in which she strongly advised the visitors bureau, which

receives all of its funding from the city, to “immediately terminate� its

contract with the mayor’s publishing business or risk losing its entire

annual grant from the city.

The decision followed an hour of intense discussion that included the

allegation that the mayor has profited from the contract through the

receipt of advertising revenue. Garofalo did ont attend the meeting,

saying he was helping his newly married daughter move.

“I think it’s abundantly clear on an ethical basis that it’s unethical

for a city official to profit from a city contract. I think that anyone

who has reached the age of reason would agree,� Councilman Dave Sullivan

said. “If something unethical is transpiring, I think it is [imperative]

that the body, in this case the City Council, do something and take a

stand.�

Sullivan, backed by his fellow council members, issued a stern warning

to the visitors bureau that it terminate its contract with David P.

Garofalo & Associates at its next meeting, Sept. 5.

Garofalo is the sole owner of David P. Garofalo & Associates, which

has held the contract to publish the visitors guide since 1993. The mayor

is being investigated by the Orange County district attorney’s office and

the state’s Fair Political Practices Commission for potential conflict of

interest.

Councilman Tom Harman said that since the visitors bureau is funded

entirely by the city, the bureau should be an official department of the

city.

“The visitors and conference bureau should be brought back under the

auspices of the city,� Harman said.

The bureau should also be audited, Harman said, noting that would

include looking at the bank statements of the joint checking account

between David P. Garofalo & Associates and the visitors bureau.

Businessman Ed Laird, who owns Coatings Resource Corp. and whose son,

Jeff, now reportedly holds the contract to publish the visitors guide,

did not watch Monday night’s meeting but described its subsequent

recommendation as “political nonsense.�

“I think cooler heads will prevail, and I think it’s politically

motivated by Dave Sullivan and Tom Harman,� he said.

Laird, who earlier threatened to sue the city if the contract was

terminated, said the 2001 edition of the visitors guide is about 90%

done. He said it would be difficult for anyone to terminate a contract on

a near-completed project.

Diane Baker, executive director of the Conference & Visitors Bureau,

also did not watch Monday night’s meeting, but said Tuesday that no

decision will be made until Sept. 5, when the bureau’s board of directors

will convene.

“I don’t make any decisions. I’m the paid member. The board makes the

decisions,� Baker said.

Baker said the bureau is in the middle of two warring factions: the

city and the publisher.

If the bureau does not cancel the contract, it could be in jeopardy of

losing its funding, which received $270,000 for its 2000-01 budget.

However, if the bureau does terminate the contract, the bureau could face

a lawsuit for breach of contract.

At one point, Councilman Ralph Bauer suggested the city reserve the

right to file a declaratory relief lawsuit, which would be filed by the

city against the visitors bureau to request a court torule on the facts.

The matter in question would be whether the bureau’s contract with

David P. Garofalo & Associates is a violation of state law that prohibits

city officials from profiting from a city contract.

The council decided against filing such legal action.

“I personally do not like this idea of this declaratory relief. I’ve

been on the council for almost eight years now and, many times in

lawsuits we’ve had, one side or the other has asked for a declaratory

relief and the judge has done nothing,� Sullivan said.

Sullivan, who in tandem with Bauer put the item on the agenda for

discussion, was happy with the council’s decision.

“In my view,� he said, “the vote shows that the City Council

unanimously disapproved of the ethics of Mr. Garofalo profiting from a

city contract.�