Who owns the Local News and when did they own it?

HUNTINGTON BEACH -- One of the ongoing mysteries in the conflict of

interest allegations surrounding Mayor Dave Garofalo centers around a

seemingly simple question: Who owns the Local News?

The Local News is a twice-monthly newspaper that Garofalo founded in

1992, and it is listed as the publisher of the city’s annual visitors

guide and the Chamber of Commerce Business Directory.

The ownership of the Local News is significant because many

advertisers have had business before the City Council. And Garofalo, who

voted in favor of those advertisers at least 87 times, would have a

conflict of interest if he owned the Local News and still voted on his

advertisers.

The following is a timeline on the Local News ownership gleaned from

public documents, the publications themselves, interviews and

biographical statements:

1995: The city’s Conference & Visitor’s Bureau visitors guide staff

box states the magazine is published by David P. Garofalo & Associates

Inc. David P. Garofalo is also listed as publisher. Garofalo was sworn in

as a councilman in December 1994.

1996: The visitors guide staff box remains the same as it was in 1995.

1997: The visitors guide staff box remains the same, except for the

publisher, which is now listed as David P. Garofalo Inc.

December 1997: Garofalo says he sold the Local News to Ed Laird’s

Coatings Resource Corp. for $200,000. Garofalo says he then went to work

for Laird as a $100,000-a-year consultant. Garofalo said he retained

ownership of David P. Garofalo & Associates, a consulting company.

January 1998: The visitors guide staff box states the magazine is

published by Main Street West, which gives the same address and telephone

number as David P. Garofalo & Associates. County records show Main Street

West as another name for David P. Garofalo & Associates.

1998-1999: The Chamber of Commerce Business Directory staff box lists

David P. Garofalo & Associates as publisher and Dave Garofalo’s son under

“sales.” It also states: “A Coatings Resource Company.” An ad for David

P. Garofalo & Associates below the staff box states his company publishes

the Local News and the visitors guides and is “affiliated with Coatings

Resource Company, Ed Laird -- President.”

May 1998: When local start-up Pacific Liberty Bank was soliciting

potential investors, Garofalo -- a bank director -- was listed as owner

and publisher of the Local News in a biography published in official bank

materials. In Laird’s biography, there’s no mention of a financial

interest in the Local News.

October 1998: The state Fair Political Practices Commission clears

Garofalo of any conflict of interest charges, pointing out that Garofalo

had stated he was now a $100,000 consultant for Coatings Resource and

involved in non-sales issues involving Local News publications. An

Independent investigation later showed Garofalo continued to sell ads.

The state commission also warned Garofalo that he couldn’t vote on any

advertisers for one year after the sale of his business.

1999-2000: The Chamber of Commerce Business Directory staff box still

lists David P. Garofalo & Associates as publisher, and Garofalo’s son

under “sales.” Another line reads: “An AQC [Air Quality Consultants]

Company.” Laird has said his son, Jeff, owns Air Quality Consultants. The

Local News, with no explanation, is listed near the bottom of the staff

box. Another ad for David P. Garofalo & Associates appears below the

staff box and still states Garofalo’s company publishes the Local News

and the visitors guide. The only change is at the bottom of the ad, where

a line reads: “An AQC Company, Ed Laird -- President.”

January 1999: Ed Laird is appointed by Garofalo to the Huntington

Beach Planning Commission. Laird makes no mention of ownership in the

Local News in his conflict of interest statement.

January 1999: The visitors guide staff box states the magazine is

published by Main Street West, a Coatings Resource company. County public

records still indicated Main Street West is a David P. Garofalo &

Associates company. Main Street West’s address remained the same as David

P. Garofalo & Associates, though the telephone numbers changed. Listed

under “Advertising Representation” is Garofalo’s son.

December 1999: The first public document is filed with the county

showing Air Quality Consultants, run by Laird’s son, as the owner of the

Local News. The document showed Air Quality Consultants had owned the

Local News since January 1999.

January 2000: After being solicited for an ad by Garofalo, developer

Commercial Investment Management Group is asked to write a $2,995 check

for advertising in the visitors guide to David P. Garofalo & Associates.

Garofalo said the check was immediately put into the Local News account.

January 2000: The visitors guide staff box states the magazine is

again published by Main Street West, but this time it says it’s an Air

Quality Consultants company. Garofalo’s son is again listed under

“Advertising Representation.”

March 2000: On the front page of the Local News, David P. Garofalo is

listed as publisher, and the Local News as an AQC company. But it also

says: “--Another David P. Garofalo & Associates, Inc. Publication.” Also,

on the cover, Garofalo’s column is named “Publisher’s Notebook.” Inside,

the staff box lists Jeff Laird as president of the Local News, an AQC

company. David P. Garofalo is listed as publisher. Also in the staff box,

it reads: “David P. Garofalo & Associates, Inc.... publishes the Local

News.” Under sales account manager is Garofalo’s son.

April 2000: Garofalo tells the Independent that David P. Garofalo &

Associates has always held the contract to publish the city’s visitors

guide. The city attorney -- claiming this is new information -- launches

an investigation to see if Garofalo benefited from city business. Hutton

also vows to forward information to the state Fair Political Practices

Commission pertaining to some advertisers making payments to David P.

Garofalo & Associates and not the Local News.

April 2000: Garofalo files a document with the county showing David P.

Garofalo & Associates owns the Local News and has since 1993. Garofalo

later said he made a paperwork error.

May 2000: After a series of articles by the Independent about

Garofalo’s potential conflicts of interest, the front banner on the Local

News tabloid that had listed David P. Garofalo as publisher in March now

reads: “David P. Garofalo, Inc., Founder.” Also gone is the line that

read: “--Another David P. Garofalo & Associates, Inc. Publication.” In

addition, Garofalo’s “Publisher’s Notebook” had been changed to

“Founder’s Notebook.” In the staff box, Garofalo’s name disappeared as

publisher. Garofalo’s son is still listed under sales.

June 2000: Garofalo says he’ll divest himself from all publishing

interests until the conclusion of the investigation by the city attorney

and state officials. Garofalo won’t reveal who will run his publications

in the meantime.

July 2000: Ed Laird said he initially owned the Local News but

transferred it to his son’s company, Air Quality Consultants. Records

from the secretary of state’s office show that Air Quality Consultants,

Inc., dissolved as a corporation in 1998.