Great Park audit proceeds
Irvine City Council approves use of subpoenas in the financial probe.
Civic leaders in Irvine have authorized the use of subpoenas to help auditors dig deeper into an investigation of the financial management of the Orange County Great Park.
The City Council voted 3 to 2 this week to move forward with a forensic audit after a preliminary report raised questions about spending, contracts and oversight of the planned 1,300-acre park, which has been in the works for more than a decade.
Council members Larry Agran and Beth Krom, who helped steward the project from its beginnings, denounced the decision.
“What I fear we are witnessing here tonight is the apex of a campaign of lies, distortions and misrepresentations with respect to the Orange County Great Park,” Krom said.
Mayor Pro Tem Jeff Lalloway said Irvine residents want to know how money earmarked for the Great Park was spent.
About $215 million has gone toward the ambitious plan to transform the former Marine Corps Air Station El Toro into a park, but only 230 acres have been developed. Last year, the council majority abandoned part of the park’s grand design and instead approved a developer’s proposal to build a golf course, sports complex and other amenities on 688 acres in exchange for the right to build 4,600 additional homes along its edges.
The first audit, approved by the council last year and presented this month, faulted Great Park leadership for allowing contractors to use excessive change orders, not fully vetting major vendors, and paying a firm $6.3 million under contracts for the park’s design.
The report by accounting firm Hagen, Streiff, Newton & Oshiro also found that about 38% of all contracts for amounts more than $100,000 were awarded without competitive bids.
Auditors told the council that the investigation was hamstrung because several key players, including primary contractors, refused to talk with them.
This week, Gafcon Inc., one of those firms, issued a statement saying it will cooperate, though it faulted the audit for “inaccuracies” and “assumptions.”