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HomeMy WebLinkAbout13 ADOPT RESOLUTION REQUESTING GOVERNOR TO CANCEL THE PROPOSED SALE OF THE ORANGE COUNTY FAIRGROUNDS 01-19-10MEETING DATE: JANUARY 19, 2010 TO: WILLIAM A. HUSTON, CITY MANAGER FROM: COMMUNITY DEVELOPMENT DEPARTMENT Agenda Item Reviewed: City Manager Finance Director 13 L~~ N/A SUBJECT: ADOPTION OF A RESOLUTION REQUESTING THAT THE GOVERNOR CANCEL THE PROPOSED SALE OF THE ORANGE COUNTY FAIRGROUNDS SUMMARY: That the City Council adopt Resolution No. 10-13 requesting that the Governor cancel the proposed sale of the Orange County Fairgrounds. BACKGROUND: The first Orange County Fair occurred in 1890; the Orange County Fair and Event Center (OCFEC), operated by the 32"d Agricultural District, has been part of the Costa Mesa community since 1949. OCFEC's mission is to provide educational, entertainment, and recreational opportunities for the general public and preserve the heritage of California agriculture. This is achieved by showcasing the talents, interests, and accomplishments of the citizens of California, especially Orange County residents. As a result of the State of California's budget deficit of over $26 billion, Governor Schwarzenegger proposed measures to allow the state to take better advantage of its real estate assets to balance the state budget and improve government efficiency. The Governor has determined that using state assets, along with reducing the state workforce and making government more efficient through various measures, will help achieve savings within state government and reduce the multi-billion dollar budget deficit. The Governor is proposing the sale of seven (7) state-owned properties to reduce the budget deficit by over $1 billion. The OCFEC is among those earmarked properties listed in the Governor's proposal, with the others being Cal Expo, Del Mar Fairgrounds, Ventura County Fairgrounds, Los Angeles Coliseum, San Quentin State Prison, and the Cow Palace. The OCFEC is a major entertainment, recreational, cultural, and educational asset to Orange County with over 100 events held there annually supporting cultural and non- profit organizations. The OCFEC and the weekend Orange County Marketplace provide employment to thousands of individuals, nurture small business development, and promote the transaction of business which, in turn, greatly assists the local and state economy and generates income tax proceeds of over $180 million to the state. City Council Report Orange County Fairgrounds Page 2 Therefore, on June 2, 2009, the Costa Mesa City Council adopted Resolution No. 09-41 opposing the sale, closure, and/or relocation of the OCFEC by the State of California. On July 28, 2009, the Orange County Board of Supervisors adopted Resolution No. 09- 110, in support of the Governor's proposal to sell the Orange County Fairgrounds, only if the sale provided that the Fairgrounds would be sold to a local government agency or local not-for-profit corporation to perpetuate its use as a fairgrounds, event center, and equestrian facility. On October 7, 2009, the California Department of General Services released Request for Proposals (RFP) for the sale of the OCFEC. The RFP does not require the buyer to be a local government agency or local not-for-profit, nor does it require the buyer to perpetuate the utilization of the property as a fairgrounds, event center, and/or equestrian facility. The OCFEC is the only asset of its kind the state is actually proposing to sell and relinquish control over. Bids for the land were due January 8, 2010, and a live auction is to occur on January 14, 2010. The OCFEC is wholly contained within the corporate limits of the City of Costa Mesa, the City of Costa Mesa's General Plan designates the property as "Fairgrounds," and as such has zoned the property "recreational/institutional." The Costa Mesa City Council has authorized preparation of a Specific Plan for the Fairgrounds property and subsequently directed staff to prepare a ballot initiative for the June 2010 ballot for voter approval of a land use restriction to "Fairgrounds." The Orange County Board of Supervisors believes that it is in the best interests of the public that the Governor immediately cancel the sale of the Fairgrounds property. In that regard, the Board of Supervisors adopted Resolution No. 09-180 on November 24, 2009, requesting that the Governor immediately cancel the proposed sale of the Orange County Fairgrounds and is calling upon all other cities in Orange County to join with the County of Orange and the City of Costa Mesa in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately. To date, twenty-four (24) Orange County cities and other agencies have taken action to oppose the sale of the Fairgrounds. In addition to the actions of the City of Costa Mesa, the County of Orange, and the other Orange County cities and agencies, Assembly Bill 1590 has been introduced in the current special session of the State Legislature. Sponsored by Assemblyman Jose Solorio and co-sponsored by Assemblyman Van Tran, the Bill would repeal authorization to sell the Fairgrounds under AB X4 22. A copy of the measure and correspondence to the Governor is attached hereto. To date, there has been no indication from the state that the process for sale has been halted. The state Department of General Service officials has indicated that they have no authority to stop the sale and that they are required to carry out the Legislature's direction. Although, it has not been confirmed by the state, it is believed that only the Governor has the authority to stop the sale. Neither AB X4 nor the RFP mandate that the property be sold. The state maintains the right to reject all bids at various points in the process. City Council Report Orange County Fairgrounds Page 3 With the issuance of the RFP and the inaction to date by the state to stop the sale, the City of Costa Mesa and the County of Orange have entered into a Memorandum of Understanding to submit a bid for acquisition. FISCAL IMPACT: There is no immediate direct financial impact to the City regarding this item. While the governor has stated that the purpose of the sale of these state-owned properties is intended to reduce the budget deficit by over $1 million, proceeds from a possible sale are not included in this year's budget. RECOMMENDATION: Pleasure of the Council. ~~~ Elizabeth A. Binsack Community Development Director Attachments: Resolution No. 10-13 Correspondence from Assemblyman Solorio and AB 1590 RESOLUTION NO. 10-13 RESOLUTION NO. 10-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, REQUESTING THAT GOVERNOR SCHWARZENEGGER IMMEDIATELY CANCEL THE SALE OF THE ORANGE COUNTY FAIRGROUNDS WHEREAS, the first Orange County Fair occurred in 1890 and has since thrived as a "Celebration of Orange County's Communities, Interests and Heritage" as is stated in the Orange County Fair and Event Center mission statement; and WHEREAS, as a result of the State of California's budget deficit of over $26 billion, the largest in the state's history, Governor Arnold Schwarzenegger proposed the sale of surplus or underutilized assets for the purpose of helping to close the budget deficit; and WHEREAS, on July 28, 2009, the Orange County Board of Supervisors adopted Resolution No. 09-110, in support of Governor Schwarzenegger's proposal to sell the Orange County Fairgrounds, only if the sale provided that the Fairgrounds would be sold to a local government agency or local not-for-profit corporation to perpetuate its use as a fairgrounds, event center, and equestrian facility; and WHEREAS, on October 7, 2009, the California Department of General Services released a Request for Proposals for the sale of the Orange County Fairgrounds; and WHEREAS, the Request for Proposals does not require the buyer to be a local government agency or local not-for-profit, nor does it require the buyer to perpetuate the utilization of the property as a fairgrounds, event center, and equestrian facility; and WHEREAS, on November 24, 2009, the Orange County Board of Supervisors adopted Resolution No. 09-180, requesting that the Governor immediately cancel the proposed sale of the Orange County Fairgrounds, and called upon all other cities in Orange County to join with the County of Orange and the City of Costa Mesa in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately; and WHEREAS, the Orange County Fairgrounds is the only asset of its kind the State is actually proposing to sell and relinquish control over; and WHEREAS, the Orange County Fairgrounds is wholly contained within the corporate limits of the City of Costa Mesa; the City of Costa Mesa's General Plan designates the property as "Fairgrounds"; the City of Costa Mesa has zoned the property "recreational/institutional"; and WHEREAS, the Costa Mesa City Council has authorized preparation of a Specific Plan for the Fairgrounds property and subsequently directed staff to prepare a ballot initiative for the June 2010 ballot for voter approval of a land use restriction to "Fairgrounds"; and Resolution No. 10-13 Page 2 WHEREAS, the City of Tustin believes that it is in the best interests of the public that the Governor immediately cancel the sale of Fairgrounds property; and NOW THEREFORE, the City of Tustin joins 24 other Orange County cities and agencies in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately. PASSED AND ADOPTED at a regular meeting of the Tustin City Council held on the 19th day of January, 2010. JERRY AMANTE MAYOR PAMELA STOKER CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Pamela Stoker, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Resolution No. 10-13 was duly passed and adopted at a regular meeting of the Tustin City Council, held on the 19th day of January, 2010, by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: PAMELA STOKER CITY CLERK CORRESPONDENCE FROM ASSEMBLYMAN SOLORIO AND ASSEMBLY BILL 1590 12/02/2009 15:14 FAH 9163192169 ASM JOSE SOLORIO STATE CAPITOL P,0.80X 942849 SACRAMENTO, CA 94249~DD6B (976)318.2D68 FAH (yi 8) 3~9-269 lNSTRICT DfFIOE 2a DD E. KATELUq AVENUE, STe. 840 ANAHEIM, CA 92608 (714)838-8489 FAX (714) B3B-8886 etnall; assemblym®mb9rsoloria® assem yca-gov website: www.assem6lyGa.goV/salorio December 2, 2009 ~t~t~~tlti~~?,~~~~.tt~1xl"E ~. e ~ "r, y,.h'o~.., -, -:.. . ;uh ... ~, atiC The Flonorablc Arnold Schwarzenegger Governor, State of California State Capitol Building Sacramento, CA 95814 Dear Governor Schwarzenegger: I¢J VV IIVLV COMMnTEf;$ APp ROPRIATIONS EDUCATION INSURANCE (CHAIR) TRANSPORTATION SELECT COMMRTEE REGIONALAPPROACHESTO ADDRE$$ING THE STATE'S WATER CRISIS (CHAIR) I was one of the seventy-six Legislators in the Assembly who voted for Assembly Bill X4 22 in July as part of an effort to balance the 2009-2010 budget. Since then, numerous questions and disturbing facts have emerged that raise serious concerns about the proposed sale of the Orange County Fairgrounds. Given the seriousness of the issues raised concerning the legitimacy of the process and activities surrounding the proposed sale, Assemblymerrtber Van Tran aztd I held a public heating on November 19 in Costa Mesa. The purpose was to gain a better understanding of the pending sale process and to gather public input. I learned that the process for carrying out this sale has been tainted by misinformation, misrepresentation, conflicts of interests, questionable legal and ethical activities, and that a potential constitutional bonier regarding the sale of the property exists. As the Administration reviews this current sale process and contemplates future state property sales, it is important that it consider the issues that have surfaced to date- Below are major issues of contention that must be considered before further action is taken on the sale of the Orange Couzlty Fairgrounds: Constitutionality of As embly Bill X4 22 Assembly Bill X4 22 authorized the sale of the Qrange County Fairgrounds and further declared that the sale of the Fairgrounds does not constitute a sale or disposition of state surplus property within the meaning of Section 4 of Article TTl of the California Constitution. A recent consult with Legislative Counsel indicates that a statute may not amend the California Constitution. Thus, the validity of this statutory declaration, which effectively allows use of the proceeds from the sale of the Fairgrounds for any state purpose, maybe invalid. Assuming that the Fairgrounds was purchased with General Fund monies or with bonds secured by the General Fund, proceeds from the sale of the property must only be REpresenting Anahelm,~.Godr~de_n Grove, and Sdnta Ana 12/02/2009 15:14 FAX 9163192169 ASM JOSE SOLORIO used to pay principal and interest on outstanding Economic Recovery fonds. Llsc of the proceeds of sale for any other purpose, including meeting current annual budget obligations, violates the California Constitution. Assessment of Property Value • Even if the sale of the fairgrounds withstands a constitutional challenge, there is still an outstanding question as to whether the sale of the property will generate the X96 to $180 million that was estimated. What we do know is that the original $96 to $180 million dollar estimated value appears to be based on unsubstantiated development opportunities for the site. However, given the continuing weakness in the real estate market, the City of Costa Mesa's opposition to the sale of the propertty and its new efforts to further restrict the zoning of the property, potential bids for the property most likely will be nowhere near the estimated purchase price. The state's Department of General Services (DGS) has not conducted an appraisal of the property and staff admitted during our public hearing that they have no idea what to expect as a reasonable bid. As noted in the attached letter, DGS believes that Costa Mesa's pending zoning restrictions will greatly diminished the property's anticipated value, Recent publicized nneetings and actions by the City of Costa Mesa and County of Orange to consider resolutions asking that the state stop the sale of the OC Fairgrounds are also serving as a deterrent to receiving responsible bids for the property. Copies of the resolutions passed by those two local governments are attached. Future of Fairatound State.Em~loyees ~ The impact of the sale on OC Fairground state employees was never raised during the debate on the legislation, now leaving many unanswered questions about their future. Approximately 100 statc employees work at the OC Fairgrounds. Given the conditions set in the Request for Proposals, the Orange County Fair would operate during the summer of 2010, but aver that there may be no more work for the employees. Had the Legislature been made aware that this was the intent of the Administration, I doubt the legislation would have been approved in its current form. Conflict of Interest and Ethical Concerns • There have been allegations that the Orange County k'air Board (a public board appointed by the Governor), which oversees the state-owned Orange County Fairgrounds, has violated Government Code Section 1090 and the Bagley-Keene Open Meeting Act by forming a private foundation to bid on the property. Six of the current Orange County Fair Board zrtembers make up the majority vote of the new, private Orange County fair foundation board. Charges of improprieties by the current Orange County Fair Board are leaving some potential buyers on the sidelines. The perception in Orange County is that "insider" information will give the Orange County Fair Boardmembets' "foundation" an unfair competitive edge in the bidding process. Further connplicating this dynamic is that the state's and Orange County Fair Board's interest is to receive the highest possible bid amount, ~ 002/020 12/02/2009 15:15 FAX 9163192169 ASM JOSE SOLORIO while it is in the interest of the private foundation to buy the fairgrounds for the least possible amount. Thus, the involvement by the Orange County Fair 13oard, and its executive staff and hired consultants, in collaborating with DGS to develop the terms of the Request for Proposals and the bidding process has been inappropriate. • In a November 13, 20091etter of response to Orange County Counsel Nicholas Chrisos's request for an examination of the questionable actions of the Orange County Fair Boardmembers, Gary Schons, State Senior Assistant Attorney General said, "It would be inappropriate for this office to launch a criminal investigation into the matters raised in your letter given that this office represents the board." Mr. Schons then went onto say the investigation request is within the jurisdiction of Orange County District Attorney Tony Rackauckas. District Attorney Rackauckas is now investigating the matter. In the event that there are any criminal implications, as Governor, surely you would want to wait to learn the results of the investigation before continuing with the sale. For the reasons I have stated above, I am convinced that the State of California has not positioned itself to maximize the price of this particular sale, nor is it setting best practices for future transactions. In fact, I believe the circumstances have been set to encourage low bids and discourage private sector bids (with the exception of the private non-profit fair foundation that your political appointees have created). I strongly request that you stop the current process to sell the Orange County Fairgrounds. Under the current circumstances, it is not in the best interest of California or Orange County to sell this valuable property. Consistent with this request, I have also introduced legislation today which would repeal the section of Assembly Bill X4 22 related to the sale of the Orange County Fairgrounds, and plan to conduct additional hearings in Orange County and Sacramento on the process if the sale is not stopped. Should you want to discuss this with me in greater detail, I welcome the opportunity to talk with you. I will follow up with your office to further discuss this matter and I thank you for your consideration. Sincerely, JOSE SOLORIO -State Assemblyman Enclosures: DGS Letter to City of Costa Mesa City of Costa Mesa Resolution Requesting Sale be Stopped ' County of Orange Resolution Requesting Sale be Stopped Letter to and from the Attorney General's Office I~j 003/020 12/02/2009 15:15 FAX 9163192169 ASM JOSE SOLORIO cc: The Honorable Karen Bass, Speaker, California Assembly The Honorable Darrell Steinberg, President Pro Tem, California Senate The Honorable Jerry Brown, California State Attorney General The Honorable Denise Ducheny, Chair, Senate Budget Committee The 1`Tonorable Christine Kehoe, Chair, Senate Appropriations Committee The Honorable Noreen Evans, Chair, Assembly Budget Committee Th.e Honorable Kevin. De Leon, Chair, Assembly Appropriations Committee Orange County Board of Supervisors Costa Mesa City Mayor and Councilnnembers The Honorable Tony Rackauckas, Orange County District Attomey Orange County Fair Board Members Fair Practices Political Practices Comtxlission Members Mr. Ron Diedrich, Acting Director, California Department of General Services ~ 0041020 12/02/2009 15:15 FAX 9163192169 ASM JOSE SOLORIO 1005/020 1o/23/ZOO9 15:25 FRR 3765079 66S_E><ECl1TIVE q.J001/001 State Of California Arnold Schwarzenepg0r, Governor State and Consumer services Agency DEPARTMENT' CJF GENERAL $ERVIGES Exoc,r+live Office 1{~.~~// 707 Thirai Street • Wept saastrnentn. CA 95ao5 • (916137~509D • Fez (9tie) 375-sore • s. c October 23, 2009 The Honorable Allan Mansoor, Mayor City of Costa Mesa 777 Fair Drive Costa Mesa, CA 82626 Dear Mayor Mansoor and Costa Mesa City Council Members: I understand the Costa Mesa City Council recently heard its staff recommendation on the 'Consideration of the preparation of a Specific Plan" for the Orange County Fairgrounds. I also understand the Glty Gounci[ dirQCted Staff to prepare a Specific Plan for the Fairgrounds that designates the property solely for "fairground' use. Adopting this Specific Plan will severely restrict the future land uses available to potential buyers, and I'm writing to share some of my concerns about the City's action. As you know, the legislature has added sections 3884.1 and 3694,2 to the Food'and Agriculture Code, which authorize the Department of General Services (DGS) to self the Fairgrounds. DGS is riow actively seeking proposals to obtain the highest return on the property, as the Legislature directed us to do. We are concerned that the Fairgrounds' commercial value will be negatively affected by preparing and adopting the Speck Plan. While we are, of course, sensitive to local matters, w® also need to be sensitive to the economic consequences That could result from this action. We also need t0 carry out the Legislature's direction to 'obtain the highest, most certain return' from the sale of the Fairgrounds_ Under these circumstances we request that the City thoroughly consider the State and focal economic ram cations that could result from preparing and adopting the Specific Plan, and refrain from taking any further action that could reduce or otherwise negatively impact the Fairgrounds' value. taut if the City moves forward with the Specific Plan and the Fairgrounds' value is diminished, the State will consider whatever options may be available to preserve the Fairgrounds' value. We believe this shouldn't be needed, and that the State and Gity can work cooperatively fa achieve the Legislature's goal in a way that furthers the City'a interests as well. Please feel free to contact me if you would like to discuss this matter further. I can be reached af916.375.405f or via email at leresa,t3iererC~dgs.ca,nov. Sincerely, ~.yc.a..~o.r J Teresa 8ierer, Acting Deputy Director Real Estate Services Division cc: Allan Raeder eLi(LG+NG GR8~6 Q:J~iNG GRFFN • 'Nr:QKING GRFE>a 12/02/2005 15:16 FAH 9163192169 ASM JOSE SOLORIO .~ RESOI_urloN Na, 09-41 f ~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, OPPOSING THE SALE, CLOSURE AND/OR RELOCATION OF THE ORANGE COUNTY FAIR AND EVENT CENTER BY THE STATE OF CALIFORNIA. I~ 006/020 THE CITY COUNCIL OF THE CITY OF GOSTA MESA HE•ZEgY RESOLVES AS FOLLOWS: WHEREAS, the Govemor of the State of California proposes measures to allow the state to take better advantage of its real estate assets in order to balance the state budget and improve govemment efFlclency; and , WHEREAS, the Govemor has determined that utilizing state assets, along with reducing the state workforce and making govemment more efficient through various measures will help achieve savings within state govemment and reduce the multi-billion dollar budget deficit; and WHERI=AS, the Govemor is proposing the sale pf seven, state-owned properties to reduce the budget deficit by oust $1 billion; and WHEREAS, the Orange County Fair and Event Center (OCFEC) is among the seven state-owned properties listed in the Governor's proposal, with the others being Cal Expo, Del Mar Fairgrounds, Ventura County Fairgrounds, Los Angeles Coliseum, San Quentin State Prison and the Gow Palace; and WHEREAS, the Gity of Costa Mesa opposes sale for redevelopment, closure and/or relocation of the OCFEC by the Governor for many reasons; and WHEREAS, the OCFEC is a major entertainment, recreational, cultural and educational asset to Orange County with over 100 events held there annually supporting cultural and non-profit organizations; and 12/02/2009 15:16 FAH 9163192169 ASM JOSE SOLORIO WhIEREAS, the proposed sale of the OCFEC is extremely short-sighted in that the OCFEC and the weekend Orange County Marketplace provide employment to thousands of individuals of all ages, nurture small business development, and promote the transaction of business which, in turn, greatly assists the local and state economy and generates incomes tax proceeds of over $t 80 million to the state; and WHEREAS, resounding opposition by an outpouring of public response to the California Performance Review in 2004 sent a clear message to the State Legislature and the Governor and the Glty of Costa Mesa believes the current proposal w(II be met with similar public reaction. NOW, THEREFORE, 6E iT RESOLVED, that based on the preceding, the City Council hereby opposes the Governor's proposal to sell the Orange County Fair and Event Canter and also opposes any proposals by the State to relocate or close the facility in order to reduce the state's budget deilcit, BE IT FLIRTHER RESOLVED that the City Council ehcourages its residents and members of the business community to contact the Governor and members of the State Legislature and demand they remove the Orange County Fair and Event Center fn)m the proposed list of state properties to be sold. BE IT FURTHER RESOLVEa that the City Council hereby authorizes the Mayor, Mayor Pro Tem, any member of the City Council and City staff fio represent the City's position on this matter. ~ 00~~020 BE 17' FINALLY RESOLVED that copies of this resolution be submitted to the Governor and State Legislative repres®ntatives. # PASSED AND ADOPTED this 2"d day of June, 2009. Allan R. Mansoor, Mayor 12/02/2009 15:16 FAX 9163192169 ASM JOSE SOLORIO f~008/020 [1 AT-fEST: Juli olcik, City Clerk ApPF2OVED AS TO FORM: (~`~ Kimberly Hall arlow, City Attorney 12/02/2009 15:17 FAX 9163192169 ASM JOSE SOLORIO ~ 0091020 STATE OF CALIFORNIA ) COUN`fY OF ORANGE ) ss CITY OF COSTA MESA ) I, JULIE FOLCIK, Clty Clerk of the Cry of Costa Mesa, DO HEREBY CERTIFY that the above and foregoing is the original of Resolution No, 091 and was duly passed and adopted by the City Council of the Clty of Costa Mesa at a regular meeting held on the 2"d day of June, 2009, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: MANSOOR, LEECE, BEVER, FOl_EY, MONAHAN NOES: COUNGIL MEMBERS: NONE ABSENT: COUNCIL MEMBERS: NONE IN W1TNE55 WIiEREOF, I have hereby set my hand and affixed the seal of the City of Gosta Mesa this 3"~ day of June, 2D09. .Q_~.e' fi~~Ct~ _ JUI_I OLCIK, CITY CLERK (SEAL) 72/02/2009 15:17 FAH 9]63792169 ASM JOSE SOLDRIO November 24, 2009 Honorable Jose Solorio California State Assembly State Capitol, Room 2196 Sacramento, CA 95814 COUNTY OF ORAI+IGR BOARD O~ SUPERVISORS ROBERT E. THOMAS HALL OP ADMINISTRATION 333 W. SANTA ANA BLVD. 10 CIVIC CENTER PLAZA SANTA ANA, CALIFORNIA 9~70~ Dear Assembly Member Solorio: ~ 010/020 rJn Tuesday, November 24, the Orange County Board of Supervisor passed a resolution requesting that Governor Schwarzenegger immediately cancel the sale of the Orange County Fairgrounds. On July 2t3 of this year, the Qoard a passed resolution in support of the proposal to sell the Orange County Fairgrounds, only if the sale provided that the Fairgrounds would be sold to a local government agency or local not-for-profit corporation to perpetuate its use as a fairgrounds, event center, and equestrian facility. However, when the State's Request for Proposals for the sale of the Fairgrounds was released, the Request for Proposals did not require the buyer to be a local government agency or local not-for-profit, nor did it require the buyer to perpetuate the utilization of the property as a fairgrounds, event center, and equestrian facility. The resolution also respectfully calls upon all other cities in Orange County to join with the City of Costa Mesa and County of Orange in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately. For your review, a copy of the Board's resolution is enclosed. Sincerely, ~~~ John M. W. Moorlach Supervisor, Second District cC: Governor Arnold 5chwarzenegger Fred Aguiar, Rffice of the Governor Scott Reid. Office of the Governor Members, Board of supervisors Members, State Legislative Delegation City Mayors, Orange County Cities Thomas G. Mauk, County Executive Officer ~~ Bill Campbell Supervisor, Third District 12/02/2009 15:17 FAH 9163192169 ASM JOSE SOLORIO ~ 011/020 RESOLUTION OF THE $OARD OF SUPERVISORS OF ORANGE COUNTY, CAt,iFOKNIA November I ], 2009 S, the first Orange County Fair occurred in 1 B90 and has since thrived as a "Celebration of Orange County's Corntnunities, Interests and Heritage" as is stated in the Orattgc Gounty Fair and Event Center mission statement; and WHEREAS, as a rrsult of the State of California's budget deficit of over $25 billion. the largest in the state's history, Governor Arnold SchwatrEtteg&er propo'std the sale of surplus ar undetutiliud assess for the pwpase of helping to close the budget deficit; and ~VHERFAS, on July 2$, 2009 the Orange County Board of Supervisors passed Resolution # 09-110, in support of Governor Schwarzenegger's proposal to se11 the Orange County Fairgrounds, only ifthe sale provided that the Fairgrounds would be sold to a local government agency nr local aot•for`proiit corporation to perpetuate its ust as a fairgrounds, eve»t center, and equestrian facility, and FVHEIZEA$, on October 7, 2409, the California Department of General Services released a Request for Proposals for the sale of the t7range County Fairgrounds; and 'WHEREAS, the Request for Proposals does not require the buyer to be a ]Deal government agency or local not-for-profit, nor does it require the buyer Ls perpetuate the utilization of the property as a fairgrounds, event center, anal equestrian facility; and VVE~REAS, the Orange County Fairgroturds is the only asset of its kind the State is actually proposing to sell and relinquish control over; and ~, the Ocan$e County Fairgrounds art wholly contaiYted within the corporate limits of the City of Costa Mesa; the Ciry of Costa Mesa's General Play designates the property as "Fairgrounds"; the t3ry of Costa Mesa has zoned the property "recrt±ationaUutst%tutiorwl' ;and WHEREAS, tltc Costs Mcsa Ciry Council has authorized preparation of a Specific Plan for the Fairgrounds property and subsequently directed staffto prepare a ballot initiative for the June 2010 ballot for voter approval of a land use restriction to "Fairgrounds"; and 'GVHEREAS, the Orange County Board of Supervisors believes that it is the best iaten~is of the public that the Governor immediately cancel the sale of Fairgrounds property; Now, TFORE, I3E I'[' RESOLVED TEAT TSE Q12ANGIL GOUNTX BOARD OF SUPERVISOR3 does hereby requtst that Governor Schwarzenegger immediately cancel the sale of the Orange County Fairgrounds; and F[JRT1~R BE IT RESOLVED, THAT THE BRANGE GOUNTY BOARD OF SUPERVISORS, does hereby respectfully call upon all other cities in Orange County to join with the County of Orange and the City of Costa Mesa in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately. Resolution No. U9-ISO Item No. S49A Pa~+e 1 of 1 Request to Cancel the Propsed Sale of the Orange C4unry Fairgrounds 12/02/2009 15:18 FAX 5163192169 ASM JOSE SOLORIO The foregoing was passed and adopted by the following vote of the Prange County Board of Supcrvisots, on November 24, 2004, to wit: AYES: Supervisors: JOHN' M. W. MOORLACH, BILL CAMI'13ELL, JANET NGUYEN PATAICIA BATES NOES: Supervisor(s): EXCUSED: Supervisor(s): CHRIS NORrjY ADSTAINED: Supervisor(s): ,. ~ _ G~.f/~Gl.GG CHA N STATE OF CALIFORNIA COUNTY OF ORANOE I, DAIi.L,FNE J. BLOOM, Clerk of the Board of Orange County, California, hereby certify that a copy of thig document has been delivered to the Chairman tyf the $oard and that the above and foregoing Resolutiola was duly and regularly adopted by the Orange County Board of Supervisors . TN WYTNESS WEIEREOF, I have hereto set my hand and seal. pA J. B 04Ni Clcr& of thr: Hoard Counry of Orenge, State of Califomin Resolution No: 09-180 Agenda Datc: l ICl4/20D9 Item No: S49A r~o12~020 1 certify that the fartgoing is a hvo asd cglTq« copy of the Resoladon adapted by d[e Board of Supwiunrs ,Orange County, State of Callfamla OAKLEN6 J, BLOOM, Clerlt of the Board oPSupervisots ey: lhputy 12f02/2009 15:18 FAX 9163192169 ASM JOSE SOLORIO 0 013/020 ~•x c Er O~ 'g~ i y ,. ~ ' Q. ~~JFOIZ~ NICHDLAS 5. CHR150S COUNTY COUNgEL THE COUNTY CQUNSEI, COUNTY OF ORANG}r 333 W. $ANTq ANA 9LYD„ SUITE 407 SANTA ANA, CA 92701 MAILMG AO~RE55: P.O.60X 1379 SANTA ANA, CA 92702.1379 (71fJ 97E33DD EA% (714) 9747339 October 30, 2009 Ducct Dial No.: (714) 834-3303 IACK W GOLDbN Ch1Ef agSISTaNT 1CFFREY M. RICHARD Gary Schons, Esq, SENIORAggISTANT Office of the Attorney General aaxaARauRxlNSrocxeR post Office Box 85266 ASSISTANT rMRSE TNDFLASP California 92186-5266 San Diego . wANDA S. FLOIENCE , NOPE fi. SNYD61. gF~lg CMPISTFNSFN REQIIGH AORIlfRfESAURO HECMUN Dear Nlr. Sehons: RA YEN IL PRA7NER GEDEFRFT E. VRfAR o ~°,:,~ " This letter is to request that you examine the July 29 2009 action of the Orange caewe ~iiafik , County Fair Board outlined in the attached minutes. It appears that this action may violate fANYLLEB.IRI[F ANN E PLfiCNER Government Code section 1090 and the Bagley-Keene Qpen Meeting Act. . NARf.AAEI E Pa37MAN DANA 1,g71Ti /AANANNE YAN WER Government Code section 1090 IAM6S C. HAAMIN ryLltr. LAU F 00"Y "° I have been informed that the contracts referenced in Agenda Item 7 of the minutes 1 MQLFR r1lOMAS were (1) with the law fig 4f Noss man, Grlthner, Knox and Eliot thereinafter a slueNC.N9ue9 [ARUiYN1 EROST {R PP Nossaman ]and (2) with former State SenatorDiCk Ackerman. I am informed that t e ~°TxiT ew ~"~` contracts were d4Si~ed to Iobby the Governor's office in formulating the terms and UURA O,KNA)/ ROGERP PREYNAN conditions of the RFP to be issued by the State pursuant to Ag 4X 22, which authorizes wcoLeA se«s N Nac DAEr Rr the sale of the Aran a Count Fair ands, g y ~ lrc . A lEANNt(dU IANESC HAAYEY p~ I am further informed that the Nossamam fixrrx assisted a number of members of the ,g WE„py ~ TERI L. MAKSDUOUN LEONLP Gf Fair Board in forn~in~y a foundation ((the "QC Fair and $vent Center Foundation" a non- b l )~ A ANCatG CA5T930 DARARY a number of mem exs o d member e antici ated t e i l d 4t h B fi IURENLCIQSSTEP6EN p oar s w r o nc u e y, w ose t ent pro ~ T 2009~ight days the current Fair Hoard. The Foundation was incorporated on July 21 RYANN F. s ;auviiw , before the cgnsulting contract was approved by the Fair Board. I am further informed that A AURELIO TORRE I RR o ~ O the law firm Jones Day prepared the articles of incorporation and o er documents for the U SER a ocaFIEroRRCZ IACWELUVECUZAUN nqn- refit. p ANDREA COIJER PuNAM-. )pAHALAO o K~EYF, o Eu~,;,"a" Y question whether the Fair Board's decision to use Fair Board funds fox a lobbying LDN A. TOAA181 or similar contract in connection with the formation of the contract or influencing a RFP wA3sDDDSlurei REBECCA SULPEDS~EY process represents personal influence by Board mert3bers who are prospective foundation NICOLE w, wALSH U A and who thus would have a direct persona] interest in the outcome oft e members ~,,,r, Ru7suN R ELYlA9En~A.ffJEAU LAURENLEtURR , rocess. p w eRIEL r. 90µ71E IIILIA C. wQQ nu ~L~N" ~ e An official's interest need not be direct. People v. Darby, 114 Cal. App. 2d 412, P s ~= - 250 P2d 743 (1952). This interest is indirect, in that the contract would facilitate the ' acquisition, as apposed to this being a contract of acquisition. 12/02/2009 15:18 FAX 9163192169 ASM JOSE SOLORIO f~014/020 - Gary Schons, Esq. ~'+• pctober 30, 2009 Page 2 Here, it appears that the Fair Boazd utilized public funds to engage a firm to influence the design of the RFF so it would best suit the anticipated Foundation bid. Since several members of the Fair Board were also going to be on the Foundation Board, and the Foundation was incorporated as a private, non-profit entity (and not a government entity), this expenditure of public funds for a contract with the Nossaman firm was a contract that would aid the personal interests of those members. Indeed, if the Foundation were to succeed in its bid, it would both own the fairgrounds and operate the Fair and other events at the fairgrounds. If past practice holds, members of the Foundation Board would enjoy some (even if minimal) perquisites, such as free tickets to the Fair, parking passes, etc. Those are financial interests, Thus, the contract is one in which the members have an indirect financial interest, which might violate Government Code Section 1090. if this contract is illegal, it is void-it is null and ofno effect, not merely voidable. Public funds cannot be used to pay this contract. Bagley-Keene Open Meeting Act In addition, it appears that the Fair Board may have violated the Bagley-Keene Open Meeting Act. The 7uly 29, 2009 agenda for Ttem 7 states as follows: "7. GOVERNANCE PROCESS: A. Governors Initiative to Sell grange County Fair & Event Center Action Item" I do not believe this description gave fair notice to the public pursuant to Government Code section I 1125(b). The minutes also fail to properly describe the actions taken by the Fair Board, in that there was no notice given that the pair Board was considering authorizing the consulting agreements discussed above. I request that you examine these issues. Additionally, please advise me whether it is acceptable formembers of the Orange County Board of Supervisors and/or County employees to meet with members of the Fair non-profit for the purpose ofpossibly joining it in preparing abid for the fairgrounds. There is concern that meeting with those members might itself be a violation of Government Code section 1090. Thank you very much for your consideration of this request. 'Very truly yours, •~,.. Nicholas S. Chrisos County Counsel NSC:nr:eb $nc] osuzes 12/U2/2009 15:19 FAX 9163192169 ASM JOSE SOLORIO - ac Pu,R ~ evr~rr cEN7ER, sY° W.i ~ ~ WNVrE$OF'ME90ARD OFOWCL'~ORS UEErn+G .arts ma. P^aEaoFr ACTION: Director pykema motioned and Director Hayakawa seconded to approve the Consent Calendar. CARR11=d GOVERNANCE PROCBSS: A. Govemvrs Initiative to Sell qC Fair & Event Center Action item Director Ills presented the item. The state budget process was difficult and the legislature in AB-22X included the safe of dGFEC as underutilized or surplus property. Ellis stated that as a result of this legislation, the OCFEC Board of Directors cannot enter into any long term contracts that encumber the property. However, this does not include the Sheriffs contract that is only for the next calendar year and was already negotiated and approved in June but ratified by the board at this meeting as part of the Consent Calendar. In the next 30 days, there will be a series of cammunlcatlons ,: between the Department of General Services and OGFEC staffthat will outline the RFP process that will describe the terms and conditions of the sale. There will bean approximate 60-9b day bidding process. Ellis expressed a desire to maintain the property as a fairgrounds. Ellis suspects that this will be a 6 month process but there is no guarantee that the property wiU be sold. Chair Vandermost stated that the Board has had to react very quickly and iha Board's desire is to see local control of the property to eliminate file dark cloud of state budget issues. It is the desire of the Board to remove the fair from state control to eliminate such issues as the recent furlough. Vice Chair podge stated that she completely agrees with Ellis' desire that the property continues to operate as a fairgrounds. Director Young stated that the Board respects the empleyees and thinks that the employees are the main ingredients to the success of the Fair. r~ol5/ozo 12/02/2DD9 15:19 FAK 9163192169 ASM JOSE SOLOftIO ']G FAlR a Ev9+rrE+rFR 3~' EW j' 1 wIJU7ES'QF r-k'BOARL`OF dF~CTJRS /~EE!A~i JiM_YY9 7~.?4sE10F7 Dodge stated that while the Board was appointed as stewards, they era proud and supportive of staff and could not run the Fair in such as manner as the current staff. Director Hayakawa stated that in the time he has been on the Board he has gotten to know many of the employees and wants to keep the organlaatlon intact as much as passible. Mike Davis, Fair vendor since 1981, asked Whether part of of the property can be sold off to pay aff the debt incurred in the purchase instead of passing on the costs to vendors. F2obert Fremont, Fair vendor since 1999, feels that it may be a prudent decision to slow down the process. Charlie Boghoslan (Chicken Charlie), who has worked at the Fair since 1984, is worried about the sale of the property. How is selling the property going to have any impact the state budget? And turning the property over to anon-profit is a risky proposition- He stressed them importance of the Fair to the community by providing jobs and other opportunities. ~ Bob Jackson, Fair vendor for 39 years, said that the proplem is that no one knows what the right dFCision is. The Fa1r vendors contribute t4 the community at large and until they know what is at risk he doesn't want to proceed with the safe- Steve Crutchfield, stated that he feels like he is preaching to the choir. Fairs are more than the sum Of their parts, tangible and intangible. tie stated that we sometimes lose track of the fact that the Fair is a community service. Crutchfield asked whether the Board is considering buying the Fair? Jeff Thornberry, Fair vendor since '[982, is impressed by the buy-in from stakeholders that allows the OC Fair to be great. The >, community owns that Fair since they are responsible For its success. He suggested that we go to Sacramento and let them know that too much is at stake and the cost is too high. Director Ellis responded That Assemblyman Van Tran has stated that if the Sate results in the property not being a fairground, he will introduce legislation voiding the sale. ~IIIS doesn't believe the Governor wants to do anything that will upset the community and all the fine work that has gone into making this the best Fair in California. ~ 016/020 12/02/2009 15:19 FAX 9163192169 ASM JOSE SOLORIO f~017/020 oc rxa~ ~ e~c~Nr~ sY° au t' FgVIrT@S OF n2YCAR0 OF W~ECfrY+s u~Bfeq JN.~ ss xna iaGF S oL 7 Ellis also stated that the Board cannot emphasize enough the relationship with the City of Costa Mesa and haw they are supportive of OCFEC's mission. Chair Vandermost stated that putting the Fair under local control will eliminate being subject to the whim's of the state budget process. Robert Hutchins, Fair vendor for 25 years, is concerned aboutwhat will become of the staff, concerned about debt services, why do we want to throw self sufficiency out the window, does the Board want to buy the property? Director Ellis stated that the State of California makes the decision of who the buyer is and the Board has no say in who purchases the property. • Dave Lindsey, vendor far 30 years, asked whether file Board wants to form anon-profit to run the Fair? What if high bidder comes in and doesn't want to keep it status quo? Is the City of Costa Mesa really committed to keeping it zoned as a fairgrounds? ~,_ Mayor Mansoor stated that the City is dedicated to keeping the properly zoned as institutional and recreational. Mika Coffey, major concern is where the public stands on this issue. Is there a survey question about the sale of the property? This is the public's heritage and they have the most to lose? Has OGFEC asked the public? Steve Beazley stated that the daily Pilot has done two online polls regarding the sale of property. Mesa Del Mar in June asked staff what they could do to help. Director Dykema stated that in 2003 during public hearings, everyone came out in support of the Fairgrounds. Vandermost stated that the point is to keep local control of the Fair. Coffey asked whether anyone had approached the state about donating the property to the local community, Memory Rose, representing year round events, isn't sure they can make a living if the property is sold, concerned about their May event and whether than can start p{ann. ?g their May event, and how soon will they know and how will it affect year round events- 12/02/2009 15:19 FAX 9163192169 ASM JOSE SOLORIO f~018/020 ~• ( OC FMt 6 NEMY CENTER 3Y° DM NINUiES DF Rf dWr+G PFOlRE=CTQRS MEETING AAV7i ]001. PAG1E B OF ~ Director Ellis mentioned that the state provision prevents OCFEC from entering into any long term agreements and suggested that staff and counsel work with Sacramento to figure out how to conduct long term planning and business. Steve Beazley, President & CEO, stated that lose of year round business will harm the viability for the organization. Sandra Genls, former Mayor Costa Mesa, voiced concern about the Pose of open meeting laws, contrasted our situation with Del Mar who fought to preserve their status, and su99ested a partnership between the fairgrounds and the City of Costa Mesa. pon Tucker, stated that the equestrian center needs to stay part of the fairgrounds. David Stiller, resident of Costa Mesa, stated that the Board needs to keep the process as transparent has possible. He stressed that the Board does not act hastily. Explain the options. Do the voters ~ have the right to refuse the sala7 He suggested that the Board sit `~' on the dais and invite the Costa Mesa TV to broadcast the meeting if they hold it at City Mall again. ACTION; Vice Chair Dodge motioned and Director Dykema seconded to authorize staff to retain necessary consultants to assist in carrying out the Governor's and Legislature's intent, and aiso that the Board direct Director Ellis and Vice Chair Dodge as members of the Governance Subcommittee to coordinate these efforts with the CEO, CARRIED 7. CEO'S OPERATIONAL UPdATE Beazley stated that QC Fair is starting their third Wednesday and look forward to a strong ending to the Fair. Good shows, good exhibit and a really strong ending to the Fair. B. EXECUTIVE SESSION (CLOSED TO PU6LlC) None. 9. BOARD OF DIR<rCTORS MATTERS OF INFORMATION None. 10. NEXT BOARD MEETING: AUGUST 27, 2009 ic~vc~cvv.~ t7. CV rkri y76':i ty~16'y AShI JOSE SOLORID ~~ i EDMUND C. EROWIV J72. .4lrorney Gexera! Seale of California bEPARTMENT OF JUSTICE f~ 919/020 ,-. . m i. ! ! 0 WEST A S7'ILEET, SUITE I S 00 SAN DIEGO, CA 9210! P,O. B03C 85266 SAN DIEGO, CA 92186-5266 Public: (619) 645-2001 Telephone: (619) 645-2275 Facsimile: (619) 645-2271 E-Mail: Gary.Schons(Ca~jdoj.ca_gov Nicholas 5. Chrisos County Counsel County of Qrange P.O. Box 1379 10 Civic Center Plate Santa Ana, CA 92702 November 13, 2009 1tE: Orange Cou tv Fair Board---Government Code section 1090 and $aelev-Keene Openi Meeting Act Cmvernme t Code secti n 11120 a ea. Dear Mr. Chrisos; I am writing in response to your letter to me dated October 30, asking that we "examine the July 29, 2009, action of the Orange County Fair Board outlined in the attached minutes [as] [i]t appears that this action may violate Government Code section 1090 and the Bagley-Keene Open Meeting Act." I read your letter as requesting an investigation of possible criminal violations of these two laws. (See, Crov. Code, § 1097; Gov. Code, § 1 l I30.7.) For the reasons stated in this letter, I am declining yom request to examine or investigate this matter. First, the Attorney General serves as counsel for the Orange County Fair Board, also known as the Board of Directors of the 32nd District Agricultural Association. It would be inappropriate for this office to launch a criminal investigation into the matters raised in your letter given that this office represents the board. Second, the District Attorney, and not the Attorney General, has primary responsibility for the investigation and prosecution of crimes occurring in the county. (Gov. Code, § 2b500.) Accordingly, you may bring this matter to the attention of the District Attorney. I have referred a copy of your letter to our Natural Resources Section, which represents the board, and I understand that the attorneys in that section, who provide counsel to the board, are aware of the issues raised in your letter. 12/02/2009 15:20 FAH 9163192169 ASM JOSE SOLORIO Nicholas 5, Clu-isos November 13, 2009 page 2 Thank you for bringing this matter to our attention. Sincerely, '~ RY .SCHONS enior Assistant Attorney General For EDMUND G. BROWN 7R. Attorney General ~ 020/020 G'WS: clh AMENDED IN ASSEMBLY JANUARY 6, 2010 CALIFORNIA LEGISLATURE-2009-10 REGULAR SESSION ASSEMBLY BILL No. 1590 Introduced by Assembly Members Solorio and Tran (Principal coauthor: Senator Correa) (Coauthors: Assembly Members De La Torre, Harkey, and Silva) December 2, 2009 An act to repeal Sections 3884.1 and 3884.2 of the Food and Agricultural Code, relating to the Orange County Fair, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1590, as amended, Solorio. Orange County Fair: sale of state property. Existing law divides the state into agricultural districts within the boundaries of which agricultural associations maybe formed. Existing law creates District 32a from real property commonly known as the Orange County Fair and authorizes the Department of General Services to sell all or any portion of the real property that composes District 32a. This bill would repeal the provision creating District 32a out of the Orange County Fair property and would repeal the provision authorizing its sale by the department. This bill would also repeal the creation of the District 32a Disposition Fund in the State Treasury. This bill would declare that it is to take effect immediately as an urgency statute. Vote: ~/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 9s AB 1590 - 2 - The people of the State of California do enact as follows: 1 SECTION 1. Section 3884.1 of the Food and Agricultural Code 2 is repealed. 3 SEC. 2. Section 3884.2 of the Food and Agricultural Code is 4 repealed. 5 SEC. 3. This act is an urgency statute necessary for the 6 immediate preservation of the public peace, health, or safety within 7 the meaning of Article IV of the Constitution and shall go into 8 immediate effect. The facts constituting the necessity are as 9 follows: 10 Sections 1 and 2 of Chapter 20 of the Fourth Extraordinary 11 Session of the Statutes of 2009 created, and authorized the sale of, 12 District 32a, which consists of real property in Orange County 13 commonly known as the Orange County Fair. In order to avoid 14 the sale of the Orange County Fair, it is necessary that this act take 15 effect immediately. O 98 12/02/2009 15:14 FAX 9163192169 ASM JOSE SOLORIO STATE CAPfTOL ~ P.O, BOX 942648 ~~~ `~~ ,[I SACRAnaENTC~ CA 94249-0069 (918) 319.2069 ~~gr ,7t'~'q tt ~Tr/ T1~ r ~ ~ FAX (918) 319.289 ' yµ l4L~.iL E ~f.Yi,rrl ~~~a~.i , i , • OISTflICTOFFIGE :.~YY~~ -^; ' ' 2a00 E. KATELI,A AVENUE, $TE. 640 . } ANAHEIM, CA 92806 .~ .~ „_ , . . ~ ~ 1 FAX Q74) 0.9&6986 e-rtwll; AS9Gfn~k~BMDelsoloria® t. ~. .; ' r}}'' :';Z,^' ' !, +n .. <•~~"''" ~,t -' + ^'` ~" %.. ~ ^ i •-•'~' welrsite: www.essem6lyrml,gov/solaia , ~ A~5EMf~`M ~ •NI - ~415TRI(`T December 2, 2009 The Honorable Arnold Schwarzenegger Governor, State of California State Capitol Building Sacramento, CA 95814 Dear Governor Schwatzenegger: IpJ UV UVZV COMMffTERS APPROPRIATIONS eoucnnoN INSURANCE (CHAIR} TRANSPORTATION 8ELECi COMMITTER REGIONAL APPROACHES TO ADOg6SSING THE STATE'S - WATER CRISIS (CHAIR) I was one of the seventy-six Legislators in the Assembly who voted for Assembly Bill X4 22 in July as part of an effort to balance the 2009-2010 budget. Since then, numerous questions and disturbing facts have emerged that raise serious concerns about the proposed sale of the Orange County Fairgrounds. Criven the seriousness of the issues raised concerning the legitimacy of the process and activities surrounding the proposed sale, Assemblymernber Van Tran and I held a public heazligg on November 19 in Costa Mesa. The purpose was to gain a better understanding of the pendung sale process and to gather public input. I learned that the process for carrying out this sale has been tainted by misinformation, misrepresentation, conflicts of interests, questionable legal and ethical activities, and that a potential constitutional barrier regarding the salt of the property exists. As the Administration reviews this current sale process and contemplates future state property sales, it is important that it consider the issues that have surfaced to date. Below are major issues of contention that must be considered before further action is taken on the sale of the Orange County Fairgrounds: ConstitutionalitxofAssembly Bil] X4 22 Assembly Bill X4 22 authorized the sale of the Orange County Fairgrounds and further declared that the sale of the >;airgrounds does tzot constitute a sale or disposition of state surplus property within the meaning of Section 9 of Article iii of the California Constitution. A recent consult with Legislative Counsel indicates that a statute may not amend the California Constitution. Thus, the validity of this statutory declaration, which effectively allows use of the proceeds from the sale of the Fairgrounds far any state purpose, maybe invalid. Assuming that the Fairgrounds wag purchased with General Fund monies or with bonds secured by the General Ftitttd, proceeds from the sale of the property must only be Represen5np Anaheim, Ganien Grove, and Santa Ana •iu 12/02/2009 15:14 FAX 9163192169 ASM JOSE SOLORIO used to pay principal and interest on outstanding Economic Recovery Bonds. U'sc of the proceeds of sale for any other purpose, including meeting current annual budget obligations, violates the California Constitution. Assessment of Property Value Even if the sale of the fairgrounds withstands a constitutional challenge, there is still an outstanding question as to whether the sale of the property will generate the X96 to ~ 180 millioA that was estimated. What we do know is that the original $96 to $180 million dollar estimated value appears to be based on unsubstantiated development opportunities for the site. However, given the continuing weakness in the real estate market, the City of Costa Mesa's opposition to the sale of the property and its new efforts to further restrict the zonittg of the property, potential bids for the property most likely will be nowhere near the estimated purchase price. The state's Department of General Services (f7GS) has not conducted an appraisal of the property and staff admitted during our public hearing that they have no idea what to expect as a reasonable bid. As noted is the attached letter, DGS believes that Costa Mesa's pending zoning restrictions will greatly diminished the property's anticipated value. Recent publicized meetings and actions by the City of Costa Mesa and County of Orange to consider resolutions asking that the state stop the sale of the OC Fairgrounds are also serving as a deterrent to receiving responsible bids for the property. Copies of the resolutions passed by those two local governments are attached. Future of Fair~ound State Employees The impact of the sale on OC Fairground state employees was never raised during the debate on the legislation, now leaving many unanswered questions about their future. Approximately 100 state employees work at the OC Fairgrounds. Given the conditions set in the Request for Proposals, the Orange County Fair would operate during the summer of 2010, but aster that there may be no more work for the employees. Had the Legislatuze been made aware that this was the intent of the Administration, Idoubt the legislation would have been approved in its current form. Conflict of Interest and Ethical Concerns There have been allegations that the Orange County Fair Board (a public board appointed by the Governor), which oversees the state-owned Orange County Fairgrounds, has violated Government Code Seetion 1090 and the Bagley-Keene C+pen Meeting Act by forming a private foundation to bid on the property. Six of the current Orange County Fair Board zuembers make up the majority vote of the new, private Orange County fair foundation board. Charges of improprieties by the current Orange County Fair Board are leaving some potential buyers on the sidelines. The perception in Orange County is that "insider" information will give the Orange County FairBoardmembeis' "foundation" an unfair competitive edge in the bidding process. Further cotztplicating this dynamic is that the state's and Orange County Fair Board's interest is to receive the highest possible bid amount, ~ 002/020 12/02/2009 15:15 FAIL 9163192169 ASM JOSE SOLORIO while it is in the interest of the private foundation to buy the fairgrounds for the least possible amount. Thus, the involvement by the Orange County Fair Board, and its executive staff and hired consultants, in collaborating with DGS to develop the terms of the Request for Proposals and the bidding process has been inappropriate. In a November 13; 20091etter of response to Orange Couztty Counsel Nicholas Chrisos's request for an examination of the questionable actions of the Orange County Fair Boardmembers, Gary Schons, State Senior Assistant Attorney General said, "It would be inappropriate for this office to launch a criminal investigation into the marters raised in your letter given that this office represents the board." Mr. Schons then went onto say the investigation request is within the jurisdiction of Orange County District Attorney Tony Rackauckas. District Attorney Rackauckas is now investigating the matter. In the event that there are any criminal implications, as Governor, surely you would want to wait to learn the results of the investigation before continuing with the sale. For the reasons I have stated above, I am convinced that the State of California has not positioned itself to m~iximi~e the price of this particular sale, nor is it setting best practices for future transactions. In fact, I believe the circumstances have been set to encourage low bids and discourage private sector bids (with the exception of the private non-pmfit fair foundation that your political appointees have created). I strongly request that you stop the current process io sell the Orange County Fairgrounds. Under the current circumstances, it is not in the best interest of California or Orange County to sell this valuable property. Consistent with this request, I have also introduced legislation today which would repeal the section of Assembly Bill X4 22 related to the sale of the Orange County Fairgrounds, and plan to conduct additiozlal hearings in Orange County and Sacramento on the process if the sale is not stopped_ Should you want to discuss this with me in greater detail, I welcome the opportunity to talk with you. I will follow up with your office to further discuss this matter and I thank you for your consideration. Sincerely, JOSE SOLORIO 'State Assemblyman Enclosures: DGS Letter to City of Costa Mesa I~ 003/020 better to and from the Attorney General's OffZCe 12/02/2009 15:15 FAX 9163192169 ASM JOSE SOLORIO cc: The Honorable I{aren Bass, Speaker, Califonua Assembly The Honorable Darrell Steinberg, President Pro Tem, California Senate The Honorable Jerry Brown, California State Attorney General ' The Honorable Denise Ducheny, Chair, Senate Budget Committee The 1`Tonorable Christine YCehoe, Chair; Senate Appropriations Committee The Honorable Noreen Bvans, Chair, Assembly Budget Committee TtAe Honorable ZCevin Ae Lepn, Chair, Assembly Appropriations Committee Orange County Board of Supervisors Costa Mesa City Mayor and Ccuncilmembers The Honorable Tony Rackauckas, Orange County District Attorney Orange County Fair Board Members Fair Practices Political Practices Cotztzraission Members Mr. Ron Diedrich, Acting Director, California Department of General Services f~j 004/020 12/02/2009 15:15 FAH 9163192169 ASM JOSE SOLORIO ~ 003/020 10/23/2009 15:25 FRR 3785o1B t]6S ~HECUTIVfi 0 001/001 Stale of Catlfornia Arnold schwarzenegger, Governor State and Consumer Services Agency DEPARTMEN'C O~ OENE~AL SERVICES Exor:ukive Cffit:e Ill~~.rr.•••rr/~~ "`~~~rrr~~~ 707 Third SlrePt • West 5iuimsnto. CA s5fiGS • (916) 37&spov • FeX (91t~ 37s-501a • ~ww. ~ o a. ca e e v October 23, 2u09 • The Honorable PJlan Mansoor, Mayor City of Costa Mesa 777 Fair Drive Costa Meld, CA 826213 Dear Mayor Mansoor and Costa Mesa City Council Members: I understand the Costa Mesa Gty Council recently heard its staff recommendation on the •COnsfderatlon of the preparation of a Specific Plan" for the drange County Fairgrounds. 1 also understand the t;lty Council d'rnacted Staff to prepare a Specific Plan for the Fairgrouhds that designates the property solely for "fairground" use. Adopting this Specific Plan will severely restrict the future land uses available to potential buyers, and I'm writing to share some of my concerns apoutthe City's action. As yeu know, the legislature has added sections 3884.1 and 3884,2 to the F'ood'and Agriculture Code, which authorize the Depadment of General Services (DG5) to sell the Fairgrounds. DGS is now acdvely seeking proposals to otrtain tha highest return on the property, as the Le>3islature directed us to do. We are concerned that the Fairgrounds' commercial value will be negatively affected by preparing and adopting the Spec Plan. While we are, of course, sensitive to local matters, wa also need to be sensitive to the economic consequences That could result from this action. We also need to p-ry out tho legislature's direction to 'obtain the highest, most certain return' from the sate of the Fairgrounde_ Under these circumstances we request that the City thoroughly consider the Sate and local ecanomtc ramifications that could result from prepar)ng and adopting•the Specific Plan, and refrain from takitlg any furfttet action that could reduce or othervJst negatively impact the Fairgrounds' value. eut if the City moves forward with the Specific Plan and the Fairgrounds' value is diminished, the State will consider whatever options may be available to preserve the Fairgrounds' value. We t~e(ieve this shouldn't be needed, and that the State and City can work cooperatively to achieve the Legislature's goal in a way that furthers the City's interests as well. Please feel free to contact me if you would like to dwcuss this matter further. I can be reached at 9t 6.375.4051 or via email at Zeresa, t3ierer(c~dgs.ca,nov. Sincerely, Teresa Bierer, Accting Deputy Director Real Estate Services Division cc: Allan Roeder @~ ~lL~I~rG GRtrrch BJ~{AiG GRkFW ~ 'fYt7RK1IdCy GREEN 12/02/2009 15:17 FAH 9163192169 ASM JOSE SOLORIO November 24, 2009 Honorable Jose Solorio California State Assembly State Capitol, Room 2196 Sacramento, CA 95814 CGTINTY OF ORAISGB BOARD Off' SUPERVISORS R08ERT E. THOMAS HALL OF ADMINISTRATION 333 W. SANTA ANA BLVD. 10 CIVIC CENTER FLAZA SANTA ANA. CALIFORNIA 92701 Dear Assembly Member Solorio: ~ 010/020 On Tuesday, November 24, the Orange County Board of supervisor passed a resolution requesting that Governor Schwerzenegger immediately cancel the sale of the Orange County Fairgrounds. On July 28 of this year, the Board a passed resolution in suppor# of the proposal to sell the Orange County Fairgrounds, only if the sale provided that the Fairgrounds would be sold to a local government agency or local not-for-profit corporation to perpetuate its use as a fairgrounds, event center, and equestrian facility. However, when the State's Request for Proposals for the sale of the Fairgrounds was released, the Request for Proposals did not require the buyer to be a local government agency or local not-for-profit, nor did it require the buyer to perpetuate the utilization of the property as a fairgrounds, event center, and equestrian facility. The resolution also respectfully Bails upon a[I other cities in Orange County to join with the City of Costa Mesa and County of Orange in formally requesting of the Governor that the proposed sale of the Orange County Fairgrounds be cancelled immediately. For your review, a Copy of the Board's resolution is enclosed. Sincerely, ~~~ John M. W. Mooriach Supervisor, Second District cc: Governor Arnold Schwarzenegger Fred Agular, Office of the Governor Scott Reid, Office of the Governor Members, Board of Supervisors Members, State Legislative Delegation City Mayors, Orange County Cities Thomas G. Mauk, County Executive Officer ~.~ ~ Bill Campbell Supervisor, Third District 12102!2009 15:18 FAX 9163192169 ASM JOSE SOLORIO I~j013/020 vC~ '' ~•~ i .~ n ~<JFp~~ NICNOLAS 5. C}I&1505 [OVN3Y LUIN4EL THE COUNTY COUNS1rY, COUNTY OF ORANG)? 333 W. SANTA ANA BLVb., S111TE 40T SANTA ANA, CA 91701 MAILING AbbItESS: C.O. aOX ] 379 SANTA ANA, CA 9~70Z•1379 (7LAJ 8313300 rA7G (7N1 A]1~7739 October 30, 2009 Ducct Dial No {714)834-3303 JACK W GOLDQJ diIEFASAIATANi IEFFAEYM.RllIJApD Gary Schons, Esq. SENIORASSLSTANT Office of the Attorney General aAAeAAAUAxlxsrocKra post Office Box 55266 ASSIAANi nw,y,sF.NOFg San Diego, Ca)ifomia 92186-5266 xaxonxacFacs 1CIPEfYNY061. SHIAQCIAIORJISEN ~N a Schons: D M .o~1~QFAUIt01PA,7LWN e r i. FAPENL IAAiIaF GE~FFFE7 A.NWf CLLgIOM~l.NOLAB F,OFFp GANfa This letter is to request that you examine the July 29 2009 action of the Orange ~ N nQLU L /LI.AEB , County Fair Board outlined in the attached minutes. It appears that this action may violate "i°i1FL'a" ANNEfl fiC161 Government Code section 1090 and the Ba a -Keene gl y Open Meeting Act. . ,L{FGALLIF E~SIYAFI DANA jSTIFS 11AAE1N/i YAN IllFl Government Code section x090 "Awr.NAUUN NuFA u e n. "° I have been informed that the contracts referenced in Agenda Item 7 of the minutes I,N~,,,A,m,n were (1} with the law firm of Nossaman, Guthner, Knox and Eliot {hereinaf3er Gam„;,' ~ ; "Nossaman"] and (2) with former State Senator Dick Ackerman. I am informed that the nTM°~~ "" contracts were designed to lobby the Governor's office in formulating the terms and FOCEAIFFFINAN which authorizes conditions of the RFP to be issued by tho State pursuant to A~ 4X 22 M °b~LC"" rtAAr , the sale of the Orange County Fairgrounds, . FtANNrtAU uNrsc aAFVAr ~ n N r I am further informed that the Nossaman fixm assisted a number of members of the L1 wwFS E O ; ~' "'"i°"" Fair Board in forming a foundation (the "OC Fav and Hvent Center Faundatibn'~, a non- , cA uwv~i~rtAAw~ AAr profit entity, whose Board members were anticipated to include a number of members of m," x µN ;~ 2009-eight days the current Fair Hoard. The Foundation was incorporated on July 21 , ~ ` a°1 , before the consulting contract was approved by the Fair Board. I am further inforned that , ,~ ~ ~,LO ~, the law firm Jones Day prepared the articles of incorporation and other documents for the , : °"Ba'~`"a ucOuaNACUaNAN non- rofit p ANAAlAC0f1FA FtAiAN1.1AANALAO a ~y , o„"~;`"" I question whether the Fair Board's decision to use Fair Board funds for a lobbying ~~ f010 LAF or similar contract in connection with the formation of the contract or influencing the RFP' ,,,~ ,es u,'~„` ;"~,°~'"" process represents personal influence by 13oard mett3bers who are prospective foundation ~;~ ; Wnm , A and who thus would have a direct personal interest in the outcome of the RFP members , . A2tAFTlIA.PaFAU uuFENCEAAeA , It3cess. p W BFaL 1. AdAM NW GW00 u°AALFLUAut An official's interest need not be direct. People v. Darby, 114 Cal. App. 2d 412, - 250 P2d 743 (1952). This interest is indirect, in that the contract would facilitate the acquisition, as apposed to this being a contract of acquisition. 12/02/2009 15:18 FAX 9163192169 ASM JOSE SOLORIO f~ 014(020 Gary Schons, Esq. ~:; October 30, 2009 Page 2 Here, it appears that the Fair Board utilized public funds to engage a firm to influence the design of the ItFP so it would best suit the anticipated Foundation bid. 5inee severe! members of the Fair Boatd were also going to be on the Foundation Board, and the Foundation was incorporated as a private, non-profit entity (and not a government entity), this expenditure of public funds for a contract with the Nossaman firm was a contract that would aid the personal interests of those members. Indeed, if the Foundation were to succeed in its bid, it would both own the fairgrounds and operate the Fair and other events at the fairgrounds. If past practice holds, members of the Foundation Board would enjoy some (even if minimal} perquisites, such as free tickets to the Fair, parking passes, etc. Those are financial interests. Thus, the contract is one in which the members have an indirect financial interest, which might violate Government Code Section 1090_ If this contract is illegal, it is voice-it is null and of no eff~t, not z:nerely voidable. Public funds cannot be used to pay this contract. )Bagley-Keene Open Meeting Act In addition, it appears that the Fair Board may have violated the Bagley-Keene Open Meeting Act. The 7uly 29, 2009 agenda for Item 7 states as follows: "7. GOVERNANCE PROCESS: A. Governors Initiative to Sell Orange County Fair b't Bvent Center Action Item" I do not believe this description gave fair notice to the public pursuant to Government Code section 11125(b). The minutes also fail to properly describe the actions taken by the Fair Board, in that there was ao notice given that the Fair Board was considering authorizing the consulting agreements discussed above. I request that you examine these issues. Additionally, please advise me whether it is acceptable for members of the Orange County Boazd of Supervisors and/or County employees to meet with members of the Fair non-prrofit for the purpose of possibly joining it in preparing a bid for the fairgrounds. There is concern that meeting with those members might itself be a violation of Government Code section 1090. Thank you very much for your consideration of this request. 'Very truly yours, Nicholas S. Chrisos County Counsel NSC:nr:eb Enclosure9 rz/U2/2009 15:19 FAX 9163192169 ASM JOSE SOLORIO ~ 015/020 - ocaut~~rc~x~rest'cu~ }' ~a~Nt9oFn+6aanrraq~a~'c~a~s.~EEn+G ,n,~.rn 70e1.v,KiEapc~ ACTION: Director pykema motioned and Director Hayakawa seconded to 8pprovE the Consent Calendar, CARRIEd 7. GOVERNANCE PROCESS: A. Govemons lnltiatlve to Sell OC Fair & Event Center Action Item Director Ellis presented the item. The state budget process was difficult and the (eglslature In AB-22X included the sale of OGFEC as underutilized or surplus property. Ellis stated that as a result of this legislation, the OCFEC Board of pirectors cannot enter into any long term contracts that encumber the properly, However, this does not include the Sheriff's contract that is only for tfte next calendar year and was already negotiated and approved in June but ratified by the board at this meeting as part of the Consent Calendar. In file next 30 days, there wilt be a series of communlcatlons between the Department of General Services and OCFEG staff that well outline the RFP process that will describe the terms and conditions of file sale- There will bean approximate 60-90 day bidding process. Ellis expressed a desire to maintain the property as a fairgrounds. 1=1fis suspects that this will be a 6 month process but there is no guarantee that the property will be sold. Chair Vandermost stated that the Board has had to react very qutckly and the Board's desire is to see local control of the property to eliminate the dark cloud of state budget issues- It is the desire of the Beard to remove the fair from state control to eliminate such issues as the recent furlough. Vice Chair Dodge stated that she completely agrees with Ellis' desire that the property continues to operate as a fairgrounds. Director Young statetl that the Board respects the employees and thinks that the employees are the main ingredients to the success of the Fair, 12/02/2009 15:19 FAX 9163192169 ASM JOSE SOLORIO x f,WtY Ev~i„rfEKrat ~~ ~. wuurES~ r.~ aovtc of owecr~s ~rn~c ~, ~;x.rrwe,~rc•.eFr Dodge stated thatwhile the Board was appointed as stewards, tt,ey are proud and supportive of staff and could not run the Fair in such as manner as the current staff. Director Hayakawa stated that in the Ume he has been on the Board he has gotten to know many of the empioyees and wants to keep the organization intact as much as possible. Mike Davis, Falr vendor since 1981, asked whether part of of the properly can ba sold off to pay off the debt incurred In the purchase instead of passing on the costs to vendors. Robert Fremont, Fair vendor since 1999, feels that it may be a prudent decision to slow down the process. Charlie Boghaslan r<Chicken Charlie}, who has worked at the Fair since 1984. is worried about the sale of the property. How is selling the properly going to have any impact the state budget? And fuming the properryover to anon-profit is a risky proposition. He stressed them importance of the Fair to the community by providing jobs and other opportunities. r4 0ob Jackson, Fair vendor for 39 years, said that the problem is that .no one knows what the right dFCision is. The Falr vendors • contribute tome community at large and until they know what is at risk he doesn't want to proceed with the sale- Steve Crutchfield, stated that he heels like he is preaching to the choir. Faire are more than the sum 4f their pmts, tangible and intangible. He stated that we sometimes lose track of the fact that the Fair is a wmmunity service. Crutchfield asked whether the Board is considering buying ttte Fair? Jeff Thomberry, Fair vendor since 1982, is impressed by the buy-in from stakeholders that allows the OC Fair to 4e great The +~ community owns that Fair since they are responsible for its success. He suggested that we go to Sacramento and let them know that too much is at stake and the cost is too high- Director Ellis responded thatASSemblyman Van Iran has stated that if the sale results in the property not being a fairground, hewilt introduce legislation voiding the sale. Ellis doesn't believe the Governor wants to do anything that will upset the community and elf the fine work That has gone into making this the best Fair in California. ~ 016/020 67 12/02/2009 15:19 FAX 9163192169 ASM JOSE SDLORID ,' aoruese~erraewr~ r!°ou iwwn~.soF s~orvao of y~c+ores ono JUC"~ 277¢lgr.ES of 7 Ellis also stated that the Board cannot emphasize enough the relationship with the City of Costa Mesa and how they are supportlve of OCFFC's mission. Ghalr Vandemlost stated that putting the Fair under focal conbnl will eliminate being subject t0 the whim's of the state budget process. RobeR Hutchins, Fairveridor for 25 years, is cvncemed aboutwhat will become of the staff, concerned about debt services, why do vre want to throw self suffiaency out the window, does the Board want to buy the property? Director Ellis stated that the State of California makes the de~Jsion of who the buyer is and the Board has no say in who purchases the property. Dave t.indsey, vendor for 30 years, asked whether the Board wants to form anon-profit to run tha Fair'? What if high bidder comes in and doesn't want to keep it status quo? Is the City of Costa Mesa really committed to keeping it zoned as a fairgrounds? Mayor Mansoor stated that the Gity is dedicated to keeping the properly zoned as inst'~tutional and recreational. Mike Gaffey, major concern is where the public stands on this issue. Is there a survey question about the sale of the properly? This is the public's heritage and they have the most to lose? Has 4GFEC asked the pubtic7 Steve Beazley stated that the Daily Pilot has done two online polls regarding the sale of property. Mesa Del Mar in June asked staff what they could do to help. Director Dykema stated that in 2003 during public hearings, everyone came out in support of the Fairgrvunds_ Vandermost stated that the point is to keep local control of the Fair. Coffey asked whether anyone had approached the state about donating the property to the local comtriun"sty, Mernary tZose, representing year round events, isn't sure they can make a living if the property is sold, a~~cerned about their May event and whether than can start p{ann. ?g their May event, and . how soon will they know and how will it affect year round events. r~olzio2o 12/02/2009 15:19 FAX 9163192169 ASM JOSE SDLDRIO f~j018/020 ~ . t OCFM i:Y6Yf ~M64 ~ P41 illlRJ7E4OF rre doar+o oFLY~TO17il~rAVG ifAYL 700%PAGEOOFI Director FJlis mentioned that the state provision prevents OCFEC from entering into any long term agreements and suggested that staff and counsel work with Sacramento to figure out how to conduct long term planning and business. Steve 8eazley, President & CEO, stated that lose of year round business will harm the viability far the organization. Sandra Genis, former Mayor Costa Mesa, voiced concern about the lose of open meeting laws, contrasted our situation with Del Mar who fought to preserve their status, and suggested a partnership between the fairgrounds and the City of Costa Mesa. Don Tucker, stated that the equestrian center needs to stay part of the fairgrounds. David 5tlller, resident of Costa Mesa, stated that the board needs to keep the process as transparent. has possible. He stressed that the Board does not act hastily. Explain the optlons. Do the voters have the rfght to refuse the sale? Ne suggested that the Board sit '• on the dais and invite the Costa Mesa TV to broadcast the meeting if they hold it at City Hall again. ACTION; Vice Chair Dodge motioned antl Director Dykema seconded to authorize staff to retain necessary consultants to assist in cerryirlg out the Governor's and Legislature's intent, and also that the Board direct Director Ellis and Vice Chair Dodge as members of the Governance Subcommittee to coordinate these efforts with the CEO, CARRIED T. CEO'S OPERATIQNAL UPDATE Beazley stated that QC Fair is starting their third Wednesday and Zook forward to a strong ending to the Fair. Good shows, good exhibit and a really strong ending to the Fair. 8. EXECUTIVE SESSION (CLOSED TO PUBLIC) None. 9. BOARD OF DIR~CTOItS MATTERS OF INFORMATION None. 7D. NEXT BOARD MEETING: AUGUST 2y, 2009 iuuucuua tn.cv rnn ylti;ily'Llli9 ASM JOSE SOLORIO f~019/020 ~~ ~'-.. Y EDMUND G. BROWN JIL Slate of California ' ' Attorney Ge~+era! bEPARTMENT OF JUSTICE 1 !0 WEST A STlti~ST, SUITE 1300 SAN DIEGO, CA 927 01 P.O. BOX 85266 SAN DIEGO. CJ+9zi86-5266 Public: (619) 645 2001 Telephone: {619 645-2275 Facsimile: (619 645 2271 E•Mail: Gary.Sch doj.ca.gov November 13, 2004 Nicholas 5. Chrisos County Counsel County of Orange P.O. Box 1379 10 Civic Center Plaza Santa Ana, CA 92702 R&: Orange County Fair Hoard---Government Code. section 1090 and Bagley-Keene Opep Wing Meeting Act. Government Code section 11120 et sea Dear Mr. Chrisos: I am writing in response to your letter to me dated October 30, asking that we "examine the 7uly 29, 2009, action of the Orange County Fair Board outlined in the attached minutes [as] [i]t appears that this action may violate Government Code section 1090 and the Bagley-Keene Open Meeting Act " I read your loner as requesting an investigation of possible criminal violations of these two laws. (See, Gov. Code, § 1 D97; Gov. Code, § 11130.7.) For the reasons stated in this letter, I am declining your request to examine or investigate this matter. First, the Attorney General Berns as counsel for the Orange County Fair Board, also known as the Board of Directors of the 32nd District Agricultural Association. Tt would be inappropriate for this office to launch a criminal investigation into the matters raised in your letter given that this office represents the board. Second, the District Attorney, and not the Attorney General, has primary responsibility for the investigation and prosecution of crimes occurring in the county. (Gov. Code, § 2b500.) Accordingly, you may bring this matter to the atterrtion of the District Attorney. I have referred a copy of your letter to our Natural Resources Section, which represents the board, and I understand that the attorneys in that section, who provide counsel to the board, are aware of the issues raised in your letter. 12/02/2009 15:20 FAX 9163192169 ASM JOSE SOLDRIO Nicholas S. C}uisos November 13, 2009 pagc 2 Tl~snk you for bringing this matter to our attention. Sincerely, Y .SCHONS enior Assistant Attorney General For EDMUND G. BROWN ]'R Attorney General ~ 020/020 G'WS: clh