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Politics & Government

A Tale of Two Audits

Scrutiny of San Juan's redevelopment agency put on ice, but utility audit moves forward.

A financial examination of the city’s was put on hold Tuesday because the state budget might eliminate the San Juan Capistrano agency.

But an audit of the city's Utility Department will move forward.

The city convened a panel it dubbed the Auditing Finance Ad-Hoc Committee .

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The 2011-12 state budget, which Gov. Brown signed last week, calls for the unless they transfer some of their tax revenues to school districts and other local government agencies in what some call a “pay-to-play” provision.

Mayor Sam Allevato predicted the League of Cities would sue to overturn the redevelopment agency measures, which were tied to passage of the state budget. But until the issues are settled in court, there is little to do.

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“We need to analyze these [new laws] AB 26 and 27, and how it affects us directly,” said Laura Freese, who chairs the Community Redevelopment Agency.

Meanwhile, an hourlong discussion ensued over seeking bids from auditing and consulting firms to scrutinize the city’s Utility Department. In the end, the request passed 4-1, with Councilman Larry Kramer voting against.

The request includes very specific questions the ad-hoc committee wants answered. But Freese and Kramer said the scope was too broad and deep and would lead to contract proposals far above the $45,000 the city has budgeted for it.

"This thing has grown," Kramer said. "This thing is going topsy-turvy. I look at how broad this is, I'm looking at a couple of hundred thousand dollars. You've thrown so much in here."

City attorney Omar Sandoval said the city would offer a “pre-proposal hearing” July 29 to answer any questions those firms considering making a bid might have.

Allevato said if the bids all come back too high, the committee could then start trimming questions.

In other City Council news:

  • The City Council voted 4-1 (with Reeve dissenting) to pay the San Juan Capistrano $25,000 to provide visitor-information services. Chamber CEO Mark Bodenhamer said some of the best moments of his staff’s day are spent helping tourists plan their trips. A new website, www.discoversjc.com, will go live in a few months to expand those services. Reeve said he did not believe the payment was appropriate given that the chamber can sometimes cross a “gray line” that becomes political advocacy.
  • There were many unofficial calls for the continuation of the annual Fourth of July fireworks show. Freese said the quality of this year’s display was “way above normal.” Councilman John Taylor said the city needs to get to work right away to figure out how to continue the tradition. Donations might work, he said. The council as one of several budget casualties. “That was some of the best fireworks I’ve ever seen. So we’ll see,” Kramer said.
  • Several residents in the Los Corrales community thanked the City Council for increasing traffic enforcement patrols in their neighborhood. Speeding is a major problem along Camino La Ronda, said resident Diane Dokos. “The officers’ strong presence has brought safety awareness to some of our neighbors, not all of them,” she said. Dokos’ grandson Levi Molnar added: “Please keep sending police officers so I can be safe when I play outside.”
  • Kramer’s invocation included a partial reading of the Constitution, given the meeting’s close proximity to the Fourth of July.
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