Garofalo at a glance
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Every week, more facts are uncovered about Huntington Beach Mayor Dave
Garofalo’s alleged conflicts of interest. In all cases, Garofalo has
denied any wrongdoing and said he’s consistently followed the advice of
the city attorney regarding any potential voting violations. Here is a
rundown of what has been learned so far.
THE VISITORS GUIDE
* Garofalo’s company, David P. Garofalo & Associates, has had the
no-bid contract to publish the city-funded Huntington Beach Conference &
Visitor’s Bureau annual guide since 1993. The bureau pays nothing up
front to Garofalo, but his business keeps all the profits. The
arrangement could violate a state law that prohibits city officials from
benefiting from city business.
* Contrary to Garofalo’s previous assertion to state officials that
his role in the visitors guide involved only “non-sales issues” -- such
as “mechanical and technical aspects of publishing” -- he personally sold
ads in the 2000 visitors guide. At least one advertiser said he gave
Garofalo cash on the spot for a partial payment.
* Garofalo’s company received a $2,995 advertising check from
Commercial Investment Management Group for an ad in the visitors guide,
and he voted to push forward the Downtown developer’s $46-million project
four months later. A CIM executive said Garofalo personally solicited the
ad. Garofalo said the check was immediately deposited into the account of
a company he doesn’t own.
* Garofalo voted at least 87 times on issues involving his advertisers
in either the visitors guide or the Local News. All 87 times he voted in
their favor. City Atty. Gail Hutton has advised Garofalo that he should
abstain from voting when his advertisers come before the council, which
excludes the mayor from voting on many, if not all, major issues. At
Monday’s City Council meeting, he abstained from one vote. At the July 5
meeting, he abstained from 10 of 30 votes.
* Garofalo said at the June 19 City Council meeting that he would
divest himself from all of his publishing properties until he is cleared
by the Fair Political Practices Commission. He has yet to answer
questions on what that would entail and who would run his businesses.
THE BUSINESS DIRECTORY
* David P. Garofalo & Associates has had the contract to publish the
Huntington Beach Chamber of Commerce Business Directory since 1996, a
year after he started his first term as a Huntington Beach councilman.
The chamber receives a fee and copies of the directory, which includes a
community overview. In exchange, Garofalo’s business keeps all the
profits from advertising. Advertisers include Rainbow Disposal Co. Inc.,
which has an exclusive trash contract with the city; Time Warner
Communications, which has the city’s exclusive cable franchise; and New
Urban West, a developer that’s building 53 homes next to the Bolsa Chica
wetlands. There is debate as to whether Garofalo still holds the
contract.
* In 1998, Hutton advised David Biggs, the city’s economic development
director, against paying a $4,500 invoice for Chamber of Commerce
community overviews because the money might flow back to Garofalo. The
overviews were invoiced by Coatings Resource Co., a company that Garofalo
had a $100,000-a-year consulting contract with.
THE LOCAL NEWS
* Garofalo has said that he sold the Local News in 1997 to Ed Laird,
owner of Coatings Resource. Laird, a former Huntington Beach planning
commissioner, said he transferred the paper to son Jeff Laird’s company
-- Air Quality Consultants -- with Garofalo continuing on as publisher.
County records show that Air Quality Consultants started operating the
paper in January 1999. However, they also show that Garofalo filed as the
paper’s owner in April.
HOMES AND DEVELOPERS
* Garofalo secured a home in the city’s new St. Augustine tract after
voting many times to approve various stages of the project. Garofalo said
he bought the home, using cash from a friend, for $565,000 and sold it to
that same friend for $635,596 three days later. Garofalo said he made $1
on the deal after upgrades. Garofalo has declined to say if he competed
in a lottery as other home buyers did.
THE COMPLAINTS
* A month after Hutton said she would send information about
Garofalo’s alleged conflicts of interests to the Fair Political Practices
Commission, the packet still has not been sent. Her office also has not
finished its investigation of alleged violations of a state law that
prohibits public officials from profiting from government contracts.
Hutton said the delay is in part due to Garofalo hiring legal
representation. His lawyer, Steven Churchwell, formerly worked as the
Fair Political Practices Commission’s general counsel.
* Resident Debbie Cook, an environmental attorney, has sent a packet
and four letters to the commission, asking them to look into Garofalo’s
dealings with advertisers in his publishing properties. The latest
letter, sent July 13, points out the discrepancies in various statements
about who owns the Local News. It also asks the commission to look at
former Planning Commissioner Ed Laird.
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